Document:

EXHIBIT 4.1

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                          DVI RECEIVABLES XVIII, L.L.C.
                                     ISSUER

                                       AND

                         U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National Association),
                                     TRUSTEE

                                _________________

                                    INDENTURE

                          Dated as of November 1, 2002

                                _________________

                  $448,540,000 IN AGGREGATE PRINCIPAL AMOUNT OF
                        ASSET-BACKED NOTES CONSISTING OF:
                        ---------------------------------

        $71,720,000 1.62000% ASSET BACKED NOTES, SERIES 2002-2, CLASS A-1

    $25,000,000 One-Month LIBOR plus 0.25% ASSET BACKED NOTES, SERIES 2002-2,
                                   CLASS A-2a

         $25,000,000 1.96% ASSET BACKED NOTES, SERIES 2002-2, CLASS A-2b

   $199,200,000 One-Month LIBOR plus 0.55% ASSET BACKED NOTES, SERIES 2002-2,
                                   CLASS A-3a

         $86,000,000 3.60% ASSET BACKED NOTES, SERIES 2002-2, CLASS A-3b

           $6,940,000 3.60% ASSET BACKED NOTES, SERIES 2002-2, CLASS B

          $13,870,000 4.34% ASSET BACKED NOTES, SERIES 2002-2, CLASS C

    $9,250,000 One-Month LIBOR plus 2.25% ASSET BACKED NOTES, SERIES 2002-2,
                                   CLASS D-1

    $11,560,000 One-Month LIBOR plus 6.00% ASSET BACKED NOTES, SERIES 2002-2,
                                    CLASS E

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                                TABLE OF CONTENTS
                                                                            Page

RECITALS OF THE ISSUER.........................................................1
GRANTING CLAUSE................................................................2

                                    ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 1.01     Definitions...................................................3
SECTION 1.02     Compliance Certificates.......................................3
SECTION 1.03     Form of Documents Delivered to Trustee........................3
SECTION 1.04     Acts of Noteholders, etc......................................4
SECTION 1.05     Notices.......................................................5
SECTION 1.06     Notice to Noteholders; Waiver.................................6
SECTION 1.07     Table of Contents, Headings, etc..............................7
SECTION 1.08     Successors and Assigns........................................7
SECTION 1.09     Severability Clause...........................................7
SECTION 1.10     Benefits of Indenture.........................................7
SECTION 1.11     GOVERNING LAW.................................................7
SECTION 1.12     Legal Holidays................................................7
SECTION 1.13     Execution in Counterparts.....................................7
SECTION 1.14     Inspection....................................................8
SECTION 1.15     Survival of Representations and Warranties....................8
SECTION 1.16     Incorporation by Reference to Trust Indenture Act.............8
SECTION 1.17     Communications by Noteholders with Other Noteholders..........8
SECTION 1.18     Statements Required in Officer's Certificate..................9
SECTION 1.19     When Treasury Securities are Disregarded......................9
SECTION 1.20     Rules by Trustee..............................................9
SECTION 1.21     No Adverse Interpretation of Other Agreements.................9
SECTION 1.22     No Recourse Against Others...................................10
SECTION 1.23     Independence of Covenants....................................10
SECTION 1.24     Consent to Jurisdiction......................................10
SECTION 1.25     No Bankruptcy Petition.......................................10
SECTION 1.26     Voting Rights of Class F Instruments.........................11
SECTION 1.27     Indebtedness Treatment.......................................11

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                                                                            Page

                                   ARTICLE II

                                    THE NOTES

SECTION 2.01     General Provisions...........................................12
SECTION 2.02     Global Notes.................................................14
SECTION 2.03     Execution, Authentication, Delivery and Dating...............17
SECTION 2.04     Registration, Transfer and Exchange..........................18
SECTION 2.05     Mutilated, Destroyed, Lost and Stolen Notes..................20
SECTION 2.06     Delivery of Class F Instruments..............................20
SECTION 2.07     Payment of Interest and Principal; Rights Preserved..........22
SECTION 2.08     Persons Deemed Owners........................................22
SECTION 2.09     Cancellation.................................................22
SECTION 2.10.    Noteholder Lists; Communications to Noteholders..............22
SECTION 2.11.    ERISA Deemed Representations.................................23

                                   ARTICLE III

                   ACCOUNTS; INVESTMENT OF MONEYS; COLLECTION
                       AND APPLICATION OF MONEYS; REPORTS

SECTION 3.01     Accounts; Investments by Trustee.............................24
SECTION 3.02     Reserved.....................................................27
SECTION 3.03     Collection of Moneys.........................................27
SECTION 3.04     Collection Account...........................................27
SECTION 3.05     Class A Distribution Sub-Account; Class B Distribution
                 Sub-Account; Class C Distribution Sub-Account; Class D
                 Distribution Sub-Account; Class E Distribution
                 Sub-Account; Class F Distribution Sub-Account................33
SECTION 3.06     Reserved.....................................................35
SECTION 3.07     Successor Servicer Reserve Account...........................35
SECTION 3.08     Reserve Account..............................................36
SECTION 3.09     Reports; Notices of Certain Payments.........................37
SECTION 3.10.    Trustee May Rely on Certain Information from Contributor
                 and Servicer.................................................37

                                   ARTICLE IV

                             CONTRACTS AND EQUIPMENT

SECTION 4.01     Representations and Warranties of the Issuer.................39
SECTION 4.02     Purchase upon Breach; Contribution and Servicing Agreement...39

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                                                                            Page

SECTION 4.03     Release of Contracts and Equipment Following Substitution
                 or Purchase..................................................40
SECTION 4.04     Release of Contracts and Equipment Upon Final Contract
                 Payment......................................................40
SECTION 4.05     Execution of Documents.......................................41
SECTION 4.06     Adjustments to Definition of Trust Property..................41

                                    ARTICLE V

                 SERVICER EVENTS OF DEFAULT; SUBSTITUTE SERVICER

SECTION 5.01     Servicer Events of Default...................................42
SECTION 5.02     Substitute Servicer..........................................42
SECTION 5.03     Notification to Noteholders, the Swap Providers and Rating
                 Agencies.....................................................42

                                   ARTICLE VI

                           EVENTS OF DEFAULT; REMEDIES

SECTION 6.01     Events of Default............................................43
SECTION 6.02     Acceleration of Maturity; Rescission and Annulment...........44
SECTION 6.03     Other Remedies...............................................45
SECTION 6.04     Trustee May File Proofs of Claim.............................46
SECTION 6.05     Trustee May Enforce Claims Without Possession of Notes.......47
SECTION 6.06     Application of Money Collected...............................47
SECTION 6.07     Limitation on Suits..........................................49
SECTION 6.08     Unconditional Right of Noteholders to Receive Payment........50
SECTION 6.09     Restoration of Rights and Remedies...........................50
SECTION 6.10.    Rights and Remedies Cumulative...............................50
SECTION 6.11     Delay or Omission Not Waiver.................................51
SECTION 6.12     Control by Noteholders.......................................51
SECTION 6.13     Waiver of Defaults and Events of Default.....................51
SECTION 6.14     Waiver of Stay or Extension Laws.............................52
SECTION 6.15     Sale of Trust Property.......................................52
SECTION 6.16     Undertaking for Costs........................................53

                                   ARTICLE VII

                                   THE TRUSTEE

SECTION 7.01     Certain Duties and Responsibilities..........................54
SECTION 7.02     Notice of Defaults or Events of Default......................55

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                                                                            Page

SECTION 7.03     Certain Rights of Trustee....................................55
SECTION 7.04     Trustee's Disclaimer.........................................56
SECTION 7.05     Money Held in Trust..........................................56
SECTION 7.06     Compensation, Reimbursement, etc.............................57
SECTION 7.07     Eligibility; Disqualification................................57
SECTION 7.08     Resignation and Removal; Appointment of Successor............58
SECTION 7.09     Acceptance of Appointment by Successor.......................59
SECTION 7.10.    Merger, Conversion, Consolidation or Succession to Business..59
SECTION 7.11     Co-trustees and Separate Trustees............................60
SECTION 7.12     Trustee to Hold Contracts....................................61
SECTION 7.13     Financing Statements.........................................61
SECTION 7.14     Trustee to Act; Appointment of Successor.....................61
SECTION 7.15     Reports by Trustee to Holders................................62
SECTION 7.16     Preferential Collection of Claims Against Issuer.............62
SECTION 7.17     Data Mapping.................................................63

                                  ARTICLE VIII

                                    COVENANTS

SECTION 8.01     Payment of Principal and Interest............................64
SECTION 8.02     Maintenance of Office or Agency; Chief Executive Office......64
SECTION 8.03     Money for Payments to Noteholders to Be Held in Trust........64
SECTION 8.04     Issuer Existence; etc........................................65
SECTION 8.05     Protection of Trust Property; Further Assurances.............66
SECTION 8.06     Compliance Certificates......................................67
SECTION 8.07     Performance of Obligations; Contribution and Servicing
                 Agreement....................................................67
SECTION 8.08     Negative Covenants...........................................68
SECTION 8.09     Information as to the Issuer.................................70
SECTION 8.10.    Payment of Taxes and Other Claims............................70
SECTION 8.11     Indemnification..............................................71
SECTION 8.12     Contract Files to Trustee....................................71
SECTION 8.13     Payment Advices..............................................71
SECTION 8.14     Swap Agreement...............................................71

                                   ARTICLE IX

                     AMENDMENTS AND SUPPLEMENTAL INDENTURES

SECTION 9.01     Amendments and Supplemental Indentures.......................73
SECTION 9.02     Execution of Amendments and Supplemental Indentures..........73
SECTION 9.03     Effect of Amendments and Supplemental Indentures.............74

                                        v

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                                                                            Page

SECTION 9.04     Reference in Notes to Amendments and Supplemental
                 Indentures...................................................74
SECTION 9.05     Compliance with Trust Indenture Act..........................74
SECTION 9.06     Revocation and Effect of Consents............................74

                                    ARTICLE X

                               REDEMPTION OF NOTES

SECTION 10.01    Optional Redemption; Election to Redeem......................75
SECTION 10.02    Notice to Trustee............................................75
SECTION 10.03    Notice of Redemption by the Issuer...........................75
SECTION 10.04    Deposit of the Redemption Price..............................76
SECTION 10.05    Notes Payable on Redemption Date.............................76

                                   ARTICLE XI

                           SATISFACTION AND DISCHARGE

SECTION 11.01    Satisfaction and Discharge of Indenture......................77
SECTION 11.02    Application of Trust Money...................................78
SECTION 11.03    Reinstatement................................................78

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SCHEDULES

Schedule 1     -    Contract Schedule

EXHIBITS

Exhibit A-1    -    Form of Class A-1 Note
Exhibit A-2    -    Form of Class A-2 Note
Exhibit A-3a   -    Form of Class A-3a Note
Exhibit A-3b   -    Form of Class A-3b Note
Exhibit B      -    Form of Class B Note
Exhibit C      -    Form of Class C Note
Exhibit D      -    Form of Class D Note
Exhibit E      -    Form of Class E Note
Exhibit F      -    Form of Class F Instrument
Exhibit G      -    Investment Letter
Exhibit H      -    Reserved
Exhibit I      -    Tax Certificate

APPENDICES

Appendix I     -    Defined Terms

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                                    INDENTURE

          This INDENTURE ("INDENTURE"), dated as of November 1, 2002, is between
DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company (herein
called the "ISSUER"), and U.S. BANK NATIONAL ASSOCIATION (as successor to U.S.
Bank Trust National Association), a national banking association, as trustee
(herein called the "TRUSTEE").

                             RECITALS OF THE ISSUER

          The Issuer has duly authorized the issuance of $406,920,000, in
aggregate principal amount of its Asset Backed Notes, Series 2002-2, Class A
$6,940,000, in aggregate principal amount of its Asset Backed Notes, Series
2002-2, Class B $13,870,000, in aggregate principal amount of its Asset Backed
Notes, Series 2002-2, Class C $9,250,000, in aggregate principal amount of its
Asset Backed Notes, Series 2002-2, Class D $11,560,000, in aggregate principal
amount of its Asset Backed Notes, Series 2002-2, Class E, of substantially the
tenor hereinafter set forth, and to provide therefor the Issuer has duly
authorized the execution and delivery of this Indenture.

          Subsequent to the execution and delivery of this Indenture, the Issuer
may, subject to the restrictions described herein, enter into a Supplement
directing the issuance of a sixth class of securities (the "CLASS F
INSTRUMENTS", and together with the Offered Notes, the "NOTES") which will be
subordinate to the Class A Notes, the Class B Notes, the Class C Notes, the
Class D Notes and the Class E Notes.

          All things necessary to make the Notes, when executed by the Issuer
and authenticated and delivered hereunder, the valid obligations of the Issuer,
and to make this Indenture a valid agreement of the Issuer, in accordance with
its terms, have been done.

          Concurrent with the execution and delivery of the Notes, the Issuer
will enter into the Swap Agreements with the Swap Providers in respect of the
Class A-2a Notes, the Class A-3a Notes, the Class D Notes and the Class E Notes.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the Notes
by the holders thereof, it is mutually covenanted and agreed, for the benefit of
all Noteholders and the Swap Providers, as follows:

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                                 GRANTING CLAUSE

          The Issuer hereby Grants to the Trustee, for the benefit and security
of the Noteholders, the Swap Providers and the Trustee as their interests appear
herein, all of the Issuer's right, title and interest in and to the Trust
Property. The Issuer also hereby assigns to the Trustee, for the benefit of the
Noteholders, the Swap Providers and the Trustee, its security interest in the
Equipment (which shall be a first priority perfected security interest in
Equipment other than with respect to Equipment for which the Original Equipment
Cost is less than $25,000) subject to the underlying equipment lease related to
the Contracts and all of the Issuer's rights in all income, payments and
proceeds related thereto. The Grants of the Trust Property effected by this
Indenture shall include all rights, powers, and options (but none of the
obligations) of the Issuer with respect thereto, including, without limitation,
the immediate and continuing right to claim for, collect, receive, and give
receipts for Contract Payments in respect of the Contracts and all other moneys
payable thereunder, to give and receive notices and other communications, to
recover on the Equipment pursuant thereto, to make waivers, amendments or other
agreements, to exercise all rights and options, to bring judicial proceedings in
the name of the Issuer or otherwise, to terminate a Contract pursuant to the
terms thereof, enforce all rights and remedies of the Issuer with respect to the
duties, covenants, obligations, indemnities, representations and warranties of
the Contributor and the Servicer under the Contribution and Servicing Agreement,
and generally to do and receive anything that the Issuer is or may be entitled
to do or receive thereunder or with respect thereto. Such Grants are made in
trust to secure (i) the payment of all amounts due on the Notes in accordance
with their terms, equally and ratably without prejudice, priority, or
distinction between any Note of the same class and any other Note of the same
class by reason of differences in time of issuance or otherwise, except as
otherwise may be provided in this Indenture or any Supplement, (ii) the payment
of all other sums payable under this Indenture and (iii) compliance with the
provisions of this Indenture (including, without limitation, payment to the Swap
Providers) and any Supplement with respect to the Notes.

          The Trustee acknowledges such Grants, accepts the trusts hereunder in
accordance with the provisions hereof, and agrees to perform the duties herein
required to the best of its ability and to the end that the interests of the
Noteholders and the Swap Providers may be adequately and effectively protected
as hereinafter provided.

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                                    ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

          SECTION 1.01 DEFINITIONS.

          For purposes of this Indenture, capitalized terms used herein but not
otherwise defined shall have the respective meaning assigned to such terms in
Appendix I hereto.

          SECTION 1.02 COMPLIANCE CERTIFICATES.

          Upon any application or request by the Issuer to the Trustee to take
any action under any provision of this Indenture or any Supplement, other than
any request that (i) the Trustee authenticate the Notes specified in such
request, (ii) the Trustee invest moneys in the Collection Account or the Reserve
Account pursuant to the written directions specified in such request, or (iii)
the Trustee pay moneys due and payable to the Issuer hereunder to the Issuer's
beneficial owner or other assignee specified in such request, the Trustee may
require the Issuer to furnish to the Trustee an Officer's Certificate stating
that all conditions precedent, if any, provided for in this Indenture or any
Supplement relating to the proposed action have been complied with, except that
in the case of any such requested action as to which other evidence of
satisfaction of the conditions precedent thereto is specifically required by any
provision of this Indenture or any Supplement, no additional certificate need be
furnished.

          SECTION 1.03 FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

          In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

          Any Officer's Certificate delivered to the Trustee may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such Officer's Certificate or opinion and any Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an Authorized Officer or Authorized Officers
of the Managing Member as to such factual matters unless such Authorized Officer
or counsel of the Managing Member knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous. Any Opinion of Counsel may be based on the written
opinion of other counsel, in which

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event such Opinion of Counsel shall be accompanied by a copy of such other
counsel's opinion.

          Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture or any Supplement, they may, but need not, be
consolidated and form one instrument.

          Wherever in this Indenture or any Supplement, in connection with any
application or certificate or report to the Trustee, it is provided that the
Issuer shall deliver any document as a condition of the granting of such
application, or as evidence of compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Trustee's right to rely upon the truth and accuracy of
any statement or opinion contained in any such document as provided in Section
7.01(a)(ii).

          SECTION 1.04 ACTS OF NOTEHOLDERS, ETC.

          (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture or any Supplement to be given
or taken by Noteholders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Noteholders in person
or by agents duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee, with a copy (or if expressly required
an original) to the Issuer and the Servicer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "ACT" of the Noteholders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture or any Supplement and
(subject to Section 7.01) conclusive in favor of the Trustee and the Issuer, if
made in the manner provided in this Section 1.04.

          (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.

          (c) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the holder of any Note shall bind every future holder of
the same Note and the holder of every Note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Issuer in
reliance

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thereon, whether or not notation of such action is made upon such Note.

          (d) By accepting the Notes issued pursuant to this Indenture and any
Supplement, each Noteholder irrevocably appoints the Trustee hereunder as the
special attorney-in-fact for such Noteholder vested with full power on behalf of
such Noteholder to effect and enforce the rights of such Noteholder pursuant
hereto and the provisions hereof for the benefit of such Noteholder.

          (e) Each holder of a Note, by acceptance of such Note, agrees to treat
such Note as indebtedness for federal, state and local income or franchise tax
purposes.

          SECTION 1.05 NOTICES.

          Any request, demand, authorization, direction, notice, consent,
waiver, Act of Noteholders, or other document provided or permitted by this
Indenture or any Supplement to be made upon, given or furnished to, or filed
with, the Trustee, the Issuer or the Servicer shall be sufficient for every
purpose hereunder if in writing and telexed, telecopied (with the original of
the telexed or telecopied material sent to the recipient by overnight courier on
the day of the telex or telecopy), mailed, first-class postage prepaid, or hand
delivered. Unless otherwise specifically provided herein, no such request,
demand, authorization, direction, notice, consent, waiver, Act of Noteholders or
other document shall be effective until received and any provision hereof
requiring the making, giving, furnishing, or filing of the same on any date
shall be interpreted as requiring the same to be sent or delivered in such
fashion that it will be received on such date. Any such request, demand,
authorization, direction, notice, consent, waiver, Act of Noteholders, or other
document shall be sent or delivered to the following addresses:

               (i) if to the Trustee, at the Corporate Trust Office, Attention:
     Structured Finance, 180 Fifth Street, St. Paul, Minnesota, 55101 (Number
     for telecopy: (651) 244-0089; Number for telephonic confirmation: (651)
     244-0727;

               (ii) if to the Issuer, Attention: Securitization Manager, at 2500
     York Road, Jamison, Pennsylvania 18929 (Number for telecopy: (215)
     488-5416; Number for telephonic confirmation: (215) 488-5028) or at any
     other address previously furnished in writing to the Trustee, the Servicer
     or the Contributor by the Issuer;

               (iii) if to the Contributor, Attention: Securitization Manager,
     at 2500 York Road, Jamison, Pennsylvania 18929 (Number for telecopy: (215)
     488-5416; Number for telephonic confirmation: (215) 488-5028) or at any
     other address previously furnished in writing to the Trustee, the Issuer
     and the Servicer by the Contributor;

               (iv) if to the Servicer, Attention: Servicing Manager, at 2500
     York Road, Jamison, Pennsylvania 18929 (Number for telecopy: (215)
     488-5416; Number for telephonic confirmation: (215) 488-5028) or at any
     other address previously furnished in writing to the Trustee, the Issuer
     and the Contributor by the Servicer;

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               (v) if to the Swap Provider, Attention: Capital Markets
     Documentation, at 100 N. Tryon Street, NC 1-007-13-01 Charlotte, North
     Carolina 28255;

               (vi) if to Moody's, at 99 Church Street, New York, New York
     10007, Attention: ABS Monitoring Department (Number for telecopy: (212)
     553-3856), or at any other address or telecopy number previously furnished
     in writing to the Trustee, the Issuer and the Servicer by Moody's; or

               (vii) if to Fitch, Inc., at 55 East Monroe Street, Chicago,
     Illinois 60603, Attention: ABS Group (Number for telecopy: (312) 368-2069),
     or at any other address or telecopy number previously furnished in writing
     to the Trustee, the Issuer and the Servicer by Fitch, Inc.

          SECTION 1.06 NOTICE TO NOTEHOLDERS; WAIVER.

          (a) Where this Indenture or any Supplement provides for notice to
Noteholders or the Swap Providers of any event, or the mailing of any report to
Noteholders or the Swap Providers, such notice or report shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first class postage prepaid, or sent by private courier or confirmed telecopy
(with a copy of the telecopied material sent to the recipient by overnight
courier on the day of the telecopy) to each Noteholder affected by, or the Swap
Providers if affected by, such event or to whom such report is required to be
mailed, at the respective Swap Provider's address as set forth in the related
Swap Agreement or such Noteholder's address as it appears in the Note Register,
not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice or the mailing of such report. In any
case where a notice or report to the Swap Providers or Noteholders is mailed,
neither the failure to mail such notice or report, nor any defect in any notice
or report so mailed, to any particular Noteholder or any Swap Provider shall
affect the sufficiency of such notice or report with respect to other
Noteholders or the Swap Providers. Where this Indenture or any Supplement
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by
Noteholders or the Swap Providers shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

          (b) In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to mail or send notice to
Noteholders or the Swap Providers, in accordance with Section 1.06(a), of any
event or any report to Noteholders or the Swap Providers when such notice or
report is required to be delivered pursuant to any provision of this Indenture
or any Supplement, then such notification or delivery as shall be made with the
approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder.

                                       6

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          SECTION 1.07 TABLE OF CONTENTS, HEADINGS, ETC.

          The Table of Contents and the Article and Section headings are for
convenience only and shall in no way modify or restrict any of the terms or
provisions hereof.

          SECTION 1.08 SUCCESSORS AND ASSIGNS.

          All covenants and agreements in this Indenture by the Issuer or the
Trustee shall bind its respective successors and permitted assigns, whether so
expressed or not.

          SECTION 1.09 SEVERABILITY CLAUSE.

          In case any provision in this Indenture, any Supplement or in the
Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

          SECTION 1.10 BENEFITS OF INDENTURE.

          Nothing in this Indenture, any Supplement or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, any separate trustee or co-trustee appointed under Section
7.11 and the holders of Notes, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

          SECTION 1.11 GOVERNING LAW.

          THIS INDENTURE, ANY SUPPLEMENT AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. THIS INDENTURE IS SUBJECT TO THE
TRUST INDENTURE ACT OF 1939, AS AMENDED FROM TIME TO TIME, AS IN EFFECT ON ANY
RELEVANT DATE (THE "TIA") AND SHALL BE GOVERNED THEREBY OR CONSTRUED IN
ACCORDANCE THEREWITH.

          SECTION 1.12 LEGAL HOLIDAYS.

          In any case where any Payment Date or the Stated Maturity Date or any
other date on which principal of or interest on any Note is proposed to be paid
shall not be a Business Day, then (notwithstanding any other provision of this
Indenture or of the Notes) such payment shall be made on the next succeeding
Business Day, and no interest shall accrue for the intervening period.

          SECTION 1.13 EXECUTION IN COUNTERPARTS.

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

                                       7

<PAGE>

          SECTION 1.14 INSPECTION.

          The Issuer agrees that, on reasonable prior notice, it will permit the
representatives of the Trustee or any Noteholder, during the Issuer's normal
business hours, to examine all of the books of account, records, reports and
other papers of the Issuer, to make copies thereof and extracts therefrom, to
cause such books to be audited by independent accountants selected by the Issuer
and reasonably acceptable to the Trustee or such Noteholder, as the case may be,
and to discuss its affairs, finances and accounts with its officers, employees
and independent accountants with an Authorized Officer of the Transferor (as
sole beneficiary of the Issuer) present (and by this provision the Issuer hereby
authorizes its accountants to discuss with such representatives such affairs,
finances and accounts), all at such reasonable times and as often as may be
reasonably requested for the purpose of reviewing or evaluating the financial
condition or affairs of the Issuer or the performance of and compliance with the
covenants and undertakings of the Issuer in this Indenture, the Contribution and
Servicing Agreement, the other Transaction Documents, or any of the other
documents referred to herein or therein. Any expense incident to the exercise by
the Trustee or any Noteholder during the continuance of any Default or Indenture
Event of Default of any right under this Section 1.14 shall be borne by the
Issuer, but any expense due to the exercise of a right by any such Person prior
to the occurrence of a Default or Indenture Event of Default shall be borne by
such Person.

          SECTION 1.15 SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

          The representations, warranties and certifications of the Issuer made
in this Indenture or in any certificate or other writing delivered by the Issuer
pursuant hereto shall survive the authentication and delivery of the Notes
hereunder, but unless explicitly provided to the contrary, they are made only as
of the Closing Date.

          SECTION 1.16 INCORPORATION BY REFERENCE TO TRUST INDENTURE ACT.

          The provisions of TIA Sections 310 through 317 inclusive that impose
duties on any Person (including the provisions automatically deemed included
herein unless expressly excluded by the provisions of this Indenture) are a part
of and govern this Indenture, whether or not physically contained herein.

          If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the TIA,
the required provision of the TIA shall control.

          SECTION 1.17 COMMUNICATIONS BY NOTEHOLDERS WITH OTHER NOTEHOLDERS.

          A Noteholder may communicate with other Noteholders pursuant to TIA
Section 312(b) with respect to their rights under this Indenture or the Notes.
The Issuer, the Trustee

                                       8

<PAGE>

and anyone else shall have the protection of Section 312(c) of the TIA.

          SECTION 1.18 STATEMENTS REQUIRED IN OFFICER'S CERTIFICATE.

          Each Officer's Certificate with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

               (i) a statement that the Person making such certification has
     read such covenant or condition;

               (ii) a brief statement as to the nature and scope of the
     examination or investigation upon which the statements contained in such
     certificate are based;

               (iii) a statement that, in the opinion of such Person, he or she
     has made such examination or investigation as is necessary to enable him to
     express an informed opinion as to whether or not such covenant or condition
     has been complied with; and

               (iv) a statement as to whether or not, in the opinion of such
     Person, such covenant or condition has been complied with.

          SECTION 1.19 WHEN TREASURY SECURITIES ARE DISREGARDED.

          In determining whether the Noteholders of the required principal
amount of Notes have concurred in any direction, waiver or consent hereunder,
Notes owned by the Issuer or any other obligor on the Notes or by any Affiliate
of the Issuer or such obligor related thereto shall be disregarded, except that
for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes which a Responsible
Officer of the Trustee actually knows are so owned shall be so disregarded.
Notes so owned which have been pledged in good faith shall not be disregarded if
the pledgee establishes to the reasonable satisfaction of the Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer or any other obligor upon the Notes or any Affiliate of the Issuer or
such obligor.

          SECTION 1.20 RULES BY TRUSTEE.

          The Trustee may make reasonable rules for action by or at a meeting of
Noteholders and the Swap Providers.

          SECTION 1.21 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

          This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Issuer or an Affiliate of the Issuer. Any such indenture,
loan or debt agreement may not be used to interpret this Indenture.

                                        9

<PAGE>

          SECTION 1.22 NO RECOURSE AGAINST OTHERS.

          All liability described in the Notes of any director, officer,
employee or member, as such, of the Issuer is waived and released.

          SECTION 1.23 INDEPENDENCE OF COVENANTS.

          All covenants and agreements in this Indenture shall be given
independent effect so that if any particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or otherwise be within the limitations of, another covenant shall
not avoid the occurrence of a Default or an Indenture Event of Default if such
action is taken or condition exists.

          SECTION 1.24 CONSENT TO JURISDICTION.

          Each of the Issuer and the Trustee irrevocably submits to the
jurisdiction of any New York State or Federal court sitting in the Borough of
Manhattan in the City of New York over any suit, action or proceeding arising
out of or relating to this Indenture or any Note. Each of the Issuer and the
Trustee irrevocably waives, to the fullest extent permitted by laws, any
objection which it may have to the laying of the venue of any such suit, action
or proceeding brought in such a court and any claim that any such suit, action
or proceeding brought in such a court has been brought in any inconvenient
forum. Each of the Issuer and the Trustee agrees that final judgment in any such
suit, action or proceeding brought in such a court shall be conclusive and
binding upon the Issuer or the Trustee, as the case may be, and may be enforced
in the courts of New York (or any other courts to the jurisdiction of which the
Issuer or the Trustee, as the case may be, is subject) by a suit upon such
judgment, provided that service of process is effected upon the Issuer as
permitted by law; PROVIDED, HOWEVER, that each of the Issuer and the Trustee
does not waive, and the foregoing provisions of this sentence shall not
constitute or be deemed to constitute a waiver of, (i) any right to appeal any
such judgment, to seek any stay or otherwise to seek reconsideration or review
of any such judgment or (ii) any stay of execution or levy pending an appeal
from, or a suit, action or proceeding for reconsideration or review of, any such
judgment.

          SECTION 1.25 NO BANKRUPTCY PETITION.

          Notwithstanding any provision contained herein, each of the
Noteholders, the Swap Providers and the Trustee covenants and agrees that prior
to the date which is one year and one day after the payment in full of all Notes
issued by the Issuer, it will not institute against, or join any other Person in
instituting against, the Issuer or its Managing Member any bankruptcy,
reorganization, receivership, arrangement, insolvency or liquidation
proceedings, or other similar proceedings under any federal or state bankruptcy
or similar law; PROVIDED, HOWEVER, that the Trustee, on behalf of the
Noteholders and the Swap Providers, shall not be prevented from participating in
any such proceeding once commenced (as used in this proviso, the term
"participating" includes, but is not limited to, filing claims, attending
meetings, sending/receiving

                                       10

<PAGE>

notices, voting, etc., PROVIDED HOWEVER that the foregoing shall not include
acting as a petitioning creditor). The Issuer represents, warrants, and
covenants that it and has obtained, and will in the future obtain, a no-petition
agreement from each and every Person that enters into any agreement of any kind
with the Issuer or its Managing Member. This Section 1.25 shall survive the
termination of this Indenture.

          SECTION 1.26 VOTING RIGHTS OF CLASS F INSTRUMENTS.

          Upon the irrevocable payment in full of all of the Class A Notes, the
Class B Notes the Class C Notes, the Class D Notes and the Class E Notes, all
voting and consent rights otherwise granted to the Class A Noteholders, the
Class B Noteholders, the Class C Noteholders, the Class D Noteholders and the
Class E Noteholders shall be exercised by the requisite percentage of holders of
the Class F Instruments, if any.

          SECTION 1.27 INDEBTEDNESS TREATMENT.

          This Indenture and the Notes have been structured with the intention
that the Notes will qualify under applicable tax law as indebtedness. Each
Noteholder agrees to treat the Notes for purposes of federal, state and local
income or franchise taxes (and any other tax imposed on or measured by income)
as indebtedness and to cause any Person acquiring an interest in a Note by,
through or under it to acknowledge the characterization of the Notes as
indebtedness and to agree to treat the Notes as indebtedness for such tax
purposes.

          SECTION 1.28 LIEN OF THE INDENTURE.

          For the avoidance of doubt, (i) any property subject to the Lien of
this Indenture shall also be subject to all of the provisions of this Indenture
and (ii) any property released from the Lien of this Indenture shall also be
released from all of the provisions of this Indenture.

          SECTION 1.29 THIRD PARTY BENEFICIARY.

          The Swap Providers are third party beneficiaries under this Agreement.

                                       11

<PAGE>

                                   ARTICLE II

                                    THE NOTES

          SECTION 2.01 GENERAL PROVISIONS.

          (a) The Notes issuable hereunder shall be issued as registered Notes
without coupons in no more than five classes (excluding any Class F Instrument)
as from time to time shall be authorized by the Issuer. The Notes of all classes
shall be known and entitled generally as the "DVI Receivables XVIII, L.L.C.
Asset-Backed Notes, Series 2002-2". The Notes of each class shall have further
particular designation as the Issuer may adopt for each class, and each Note
issued hereunder shall bear upon the face thereof the designation so adopted for
the class to which it belongs. The Trustee is hereby authorized and directed
upon the written order of the Issuer to authenticate and deliver Notes to be
issued hereunder in five classes, and, with respect to the Class A Notes only,
in five tranches, entitled "$71,720,000 in aggregate principal amount of its
1.62000% Asset-Backed Notes, Series 2002-2, Class A-1", "$25,000,000 in
aggregate principal amount of its One-Month LIBOR plus 0.25% Asset-Backed Notes,
Series 2002-2, Class A-2a", "$25,000,000 in aggregate principal amount of
its1.96% Asset-Backed Notes, Series 2002-2, Class A-2b", "$199,200,000 in
aggregate principal amount of its One-Month LIBOR plus 0.55% Asset-Backed Notes,
Series 2002-2 Class A-3a", "$86,000,000 in aggregate principal amount of its
3.60% Asset- Backed Notes, Series 2002-2 Class A-3b"; and, with respect to the
Class B Notes only, entitled "$6,940,000 in aggregate principal amount of its
One-Month LIBOR plus 3.60% Asset-Backed Notes, Series 2002-2, Class B"; and,
with respect to the Class C Notes only, entitled "$13,870,000 in aggregate
principal amount of its One-Month LIBOR plus 4.34% Asset-Backed Notes, Series
2002-2, Class C"; and with respect to the Class D Notes only, entitled
"$9,250,000 in aggregate principal amount of its One-Month LIBOR plus 2.25%
Asset-Backed Notes, Series 2002-2, Class D"; and "$11,560,000 in aggregate
principal amount of its One-Month LIBOR plus 6.00% Asset- Backed Notes, Series
2002-2, Class E", respectively. The Issuer may issue, in accordance with Section
2.06 hereof, the Class F Instruments which will be subordinate to the Class A
Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E
Notes by entering into a Supplement. The form of each class of Offered Notes and
of the Trustee's certificate of authentication shall be in substantially the
forms set forth in Exhibits A-1, A-2a, A-2b, A-3a, A-3b, B, C, D and E hereto,
with such appropriate insertions, omissions, substitutions, and other variations
as are required or permitted by this Indenture. The aggregate principal amount
of Notes which may be authenticated and delivered under this Indenture is
limited to $448,540,000 except for Notes authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Section 2.04, 2.05, or 9.04. The Notes shall be issuable only in
registered form and only in denominations of at least $5,000 and integral
multiples of $1,000 thereof; PROVIDED that the Class E Notes shall be issuable
only in denominations of at least $500,000 and integral multiples of $1,000
thereof; PROVIDED FURTHER that the foregoing shall not restrict or prevent the
transfer or issuance in accordance with Section 2.04 or 2.05 of any Note having
a remaining outstanding principal amount of less than the related minimum
denomination; PROVIDED, FURTHER, that a single Note of each Class may be issued
in a different amount as may be necessary so that the Notes of such

                                       12

<PAGE>

Class evidence the full initial principal balance thereof. The Class F
Instruments, if any, shall be issued in the minimum denominations indicated in
the related Supplement.

          (b) The aggregate amount of principal due and payable on each class of
Notes on each Payment Date shall be equal to the sum of (i) Monthly Principal
for such class and (ii) any other due and unpaid principal for such class.
Except (i) for optional redemption pursuant to Section 10.01, (ii) for
Prepayment Amounts or Partial Prepayment Amounts or (iii) as otherwise provided
in Section 6.02, no part of the principal of any Note shall be paid prior to the
Payment Date on which such principal is due in accordance with the preceding
provisions of this Section 2.01(b).

          (c) Interest and principal on the Notes shall be payable on each
Payment Date commencing with the Initial Payment Date to Noteholders of record
on the Record Date. Interest on the Notes is required to be paid to Noteholders
in an amount equal to the Monthly Interest plus Overdue Interest. Interest on
the Notes shall be computed on the basis of a 360-day year consisting of twelve
30-day months PROVIDED that for Class A-1 Notes, Class A-2a Notes, the Class
A-3a Notes, Class D Notes and Class E Notes interest shall be computed using the
actual number of days elapsed over a 360-day year.

          (d) All payments made with respect to any Note shall be made in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts and shall be applied first
to the interest then due and payable on such Notes and then to the principal
thereof.

          (e) All Notes of the same class issued under this Indenture or any
Supplement shall be in all respects equally and ratably entitled to the benefits
hereof and thereof without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the
terms and provisions of this Indenture or any Supplement. Payments of principal
and interest on Notes of the same class shall be made pro rata among all
outstanding Notes of such class, without preference or priority of any kind.

          (f) The Issuer, the Trustee and each Class A, Class B, Class C, Class
D and Class E Noteholder by acceptance of its Class A, Class B, Class C, Class D
or Class E Note, respectively, (and any Person that is a beneficial owner of any
interest in a Class A, Class B, Class C, Class D or Class E Note, respectively,
by virtue of such Person's acquisition of a beneficial interest therein) agrees
to treat such Note(s) for purposes of federal, state and local income or
franchise taxes (and any other tax imposed on or measured by income) as
indebtedness. Each Class A, Class B, Class C, Class D and Class E Noteholder
agrees that it will cause any Person acquiring an interest in a Class A, Class
B, Class C, Class D or Class E Note through it to acknowledge the Class A, Class
B, Class C, Class D or Class E Notes', respectively, characterization as
indebtedness and to agree to comply with this Indenture as to treatment of such
Notes as indebtedness for such tax purposes.

                                       13

<PAGE>

          SECTION 2.02 GLOBAL NOTES.

          (a) Initially, the Class A Notes, the Class B Notes, the Class C Notes
and the Class D Notes shall be issued in the form of one or more Public Global
Notes and the Class E Notes shall be issued in the form of one or more Rule 144A
Global Note(s) which (i) shall represent, and shall be denominated in an
aggregate amount equal to, the aggregate principal amount of all Class A Notes,
the Class B Notes, the Class C Notes, the Class D Notes and the Class E Notes to
be issued hereunder, (ii) shall be delivered as one or more Notes held by the
Book Entry Custodian, or, if appointed to hold such Notes as provided below, the
Depositary shall be registered in the name of the Depositary or its nominee,
(iii) shall be substantially in the form of the Note specified pursuant to
Section 2.01, with such changes therein as may be necessary to reflect that each
such Note is a global security, and (iv) shall each bear a legend substantially
to the effect included in the form of the face of the Notes as set forth in
Exhibits A-1, A-2a, A-2b, A-3a, A-3b, B, C, D and E hereto. Notwithstanding
anything in any Transaction Document to the contrary, no Class E Note shall be
purchased by a Person who is not a U.S. Person, as defined herein and no Class E
Note shall be purchased by a Person who is not a "qualified institutional buyer"
as defined in Rule 144A of the Securities Act.

          (b) Notwithstanding any other provisions of this Section 2.02 or of
Section 2.04, unless and until a Global Note is exchanged in whole for Notes in
definitive form, a Global Note may be transferred, in whole, but not in part,
and in the manner provided in this Section 2.02, only by the Depositary to a
nominee of such Depositary or by a nominee of such Depositary to such Depositary
or another nominee of such Depositary or by such Depositary or any such nominee
to a successor Depositary selected or approved by the Issuer or to a nominee of
such successor Depositary or in the manner specified in Section 2.02(c). The
Depositary shall order the Note Registrar to authenticate and deliver the
following Book-Entry Notes: with respect to the Class E Notes only, a Rule 144A
Global Note having an aggregate initial Outstanding principal balance equal to
the Initial Class Note Balance of such respective Class, and, with respect to
the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes
only, a Public Global Note, having an initial Outstanding principal balance
equal to zero. Note Owners shall hold their respective Ownership Interests in
and to such Notes through the book-entry facilities of the Depositary. Without
limiting the foregoing, Class A, Class B, Class C and Class D Note Owners shall
hold their respective Ownership Interests, if any, in Public Global Notes only
through Depositary Participants, Euroclear or Clearstream Banking, Luxembourg.

          (c) If (i) the Depositary for the Notes represented by one or more
Global Notes at any time notifies the Issuer that it is unwilling or unable to
continue as Depositary of the Notes or if at any time the Depositary shall no
longer be a clearing agency registered under the Exchange Act and any other
applicable statute or regulation, and a successor Depositary is not appointed or
approved by the Issuer within 90 days after the Issuer receives such notice or
becomes aware of such condition, as the case may be, (ii) the Trustee, at the
direction of Noteholders evidencing not less than 66 2/3% of the Voting Rights,
elects to terminate the book-entry system through the Depositary or (iii) after
an Indenture Event of Default or a Servicer Event of Default, Noteholders
representing

                                       14

<PAGE>

more than 50% of the Voting Rights advise the Depositary, or Book-Entry
Custodian, as the case may be, in writing that the continuation of a book-entry
system through the Depositary, or the Book- Entry Custodian, as the case may be,
is no longer in such Noteholder's best interest upon the request of such
Noteholder, but only with respect to the interests of such Noteholder, the
Issuer will promptly execute, and the Trustee, upon receipt of an Officer's
Certificate evidencing such determination by the Issuer, will promptly
authenticate and make available for delivery, Notes in definitive form without
coupons, in authorized denominations and in an aggregate principal amount equal
to the principal amount of the Global Note or Notes then outstanding in exchange
for such Global Note or Notes and this Section 2.02 shall no longer be
applicable to the Notes. Upon the exchange of the Global Notes for such Notes in
definitive form without coupons, in authorized denominations, such Global Notes
shall be canceled by the Trustee. Such Notes in definitive form issued in
exchange of the Global Notes pursuant to this Section 2.02(c) shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee may conclusively rely on any such
instructions furnished by the Depositary and shall not be liable for any delay
in delivery of such instructions. The Trustee shall make such Notes available
for delivery to the Persons in whose names such Notes are so registered.

          (d) As long as the Notes outstanding are represented by one or more
Global Notes:

               (i) the Note Registrar and the Trustee may deal with the
     Depositary for all purposes (including the payment of principal of and
     interest on the Notes) as the authorized representative of the Note Owners;

               (ii) the rights of Note Owners shall be exercised only through
     the Depositary and shall be limited to those established by law and
     agreements between such Note Owners and the Depositary and/or the
     Depositary Participants. Unless and until Definitive Notes are issued, the
     Depositary will make book-entry transfers among the Depositary Participants
     and receive and transmit payments of principal of and interest on the Notes
     to such Depositary Participants; and

               (iii) whenever this Indenture requires or permits actions to be
     taken based upon instructions or directions of Holders of Notes evidencing
     a specified percentage of the Voting Rights, the Depositary shall be deemed
     to represent such percentage only to the extent that it has received
     instructions to such effect from Note Owners and/or Depositary Participants
     owning or representing, respectively, such required percentage of the
     beneficial interest in the Notes (or Class of Notes) and has delivered such
     instruction to the Trustee.

          (e) If Notes are to be issued in global form other than as Global
Notes, the provisions governing such Notes shall be specified pursuant to an
Officer's Certificate with respect thereto and by an indenture supplemental
hereto.

                                       15

<PAGE>

          (f) Whenever a notice or other communication to the Noteholders is
required under this Indenture, unless and until Notes have been issued in
definitive form to Note Owners, the Trustee shall give all such notices and
communications to the Depositary.

          (g) The Trustee is hereby initially appointed as the Book-Entry
Custodian and hereby agrees to act as such in accordance with the agreement that
it has with the Depositary authorizing it to act as such. The Book-Entry
Custodian may, and, if it is no longer qualified to act as such, the Book-Entry
Custodian shall, appoint, by written instrument delivered to the Issuer and the
Depositary, any other transfer agent (including the Depositary or any successor
Depositary) to act as Book-Entry Custodian under such conditions as the
predecessor Book-Entry Custodian and the Depositary or any successor Depositary
may prescribe, PROVIDED that the predecessor Book-Entry Custodian shall not be
relieved of any of its duties or responsibilities by reason of any such
appointment of other than the Depositary. If the Trustee resigns or is removed
in accordance with the terms hereof, the successor Trustee or, if it so elects,
the Depositary shall immediately succeed to its predecessor's duties as Book-
Entry Custodian. The Issuer shall have the right to inspect, and to obtain
copies of, any Notes held as Book-Entry Notes by the Book-Entry Custodian.

          (h) The provisions of this Section 2.02(h) shall apply to all
transfers of Definitive Notes, if any, issued in respect of Ownership Interests
in the Rule 144A Global Notes.

          (1) No transfer of any Class of Note or interest therein shall be made
     unless that transfer is made pursuant to an effective registration
     statement under the Securities Act, and effective registration or
     qualification under applicable state securities laws, or is made in a
     transaction that does not require such registration or qualification. If a
     transfer of any Definitive Note is to be made without registration under
     the Securities Act (other than in connection with the initial issuance
     thereof or a transfer thereof by the Depositary or one of its Affiliates),
     then the Note Registrar shall refuse to register such transfer unless it
     receives (and upon receipt, may conclusively rely upon) either: (i) a
     certificate from such Noteholder substantially in the form attached as
     Exhibit G hereto or such other certification reasonably acceptable to the
     Trustee and a certificate from such Noteholder's prospective transferee
     substantially in the form attached as Exhibit G hereto or such other
     certification reasonably acceptable to the Trustee; or (ii) an Opinion of
     Counsel satisfactory to the Trustee to the effect that such transfer may be
     made without registration under the Securities Act (which Opinion of
     Counsel shall not be an expense of the Issuer or any Affiliate thereof that
     is a trust or of the Depositary, the Servicer, the Trustee or the Note
     Registrar in their respective capacities as such), together with the
     written certification(s) as to the facts surrounding such transfer from the
     Noteholder desiring to effect such transfer and/or such Noteholder's
     prospective transferee on which such Opinion of Counsel is based. If such a
     transfer of any interest in a Book-Entry Note is to be made without
     registration under the Securities Act, the transferor will be deemed to
     have made each of the representations and warranties set forth on Exhibit G
     hereto in respect of such interest as if it was evidenced by a Definitive
     Note and the transferee will be deemed to have made each of the
     representations and warranties set forth in either Exhibit G hereto in
     respect of such interest as if it was evidenced by a

                                       16

<PAGE>

     Definitive Note. None of the Depositary, the Trustee or the Note Registrar
     is obligated to register or qualify any Class of Notes under the Securities
     Act or any other securities law or to take any action not otherwise
     required under this Indenture to permit the transfer of any Note or
     interest therein without registration or qualification. Any Noteholder or
     Note Owner desiring to effect such a transfer shall, and does hereby agree
     to, indemnify the Depositary, the Trustee and the Note Registrar against
     any liability that may result if the transfer is not so exempt or is not
     made in accordance with such federal and state laws.

          SECTION 2.03 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

          (a) The Notes shall be executed manually or by facsimile signature on
behalf of the Issuer by an Authorized Officer of the Issuer.

          (b) Any Note bearing the signature of an individual who was at the
time of execution thereof a proper authorized signatory of the Issuer shall bind
the Issuer, notwithstanding that such individual did not hold such office at the
date of such Note.

          (c) No Note shall be entitled to any benefit under this Indenture or
any Supplement or be valid or obligatory for any purpose unless there appears on
such Note a certificate of authentication substantially in the form provided for
herein, executed by the Trustee by manual signature, and such certificate upon
any Note shall be conclusive evidence, and the only evidence, that such Note has
been duly authenticated and delivered hereunder. Each Note shall be dated the
date of its authentication.

          (d) The Notes may from time to time be executed by the Issuer and
delivered to the Trustee for authentication together with an Issuer Request to
the Trustee directing the authentication and delivery of such Notes and
thereupon the same shall be authenticated and delivered by the Trustee in
accordance with such Issuer Request.

          All Notes and the interest thereon shall be nonrecourse obligations of
the Issuer and shall be payable from and secured by the Trust Property. The
Notes shall never constitute obligations of the Trustee, the Contributor, the
Servicer, the Transferor, the Managing Member or of any shareholder or any
Affiliate of such parties (other than any Affiliate that guarantees any Notes)
or any officers, directors, employees or agents of any thereof, and no recourse
may be had under or upon any obligation, covenant or agreement of this
Indenture, any Supplement or of any Notes, or for any claim based thereon or
otherwise in respect thereof, against any incorporator or against any past,
present, or future owner, partner of an owner or any officer, employee or
director thereof or of any successor entity, or any other Person, either
directly or through the Issuer, whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or otherwise;
it being expressly agreed that this Indenture and the obligations issued
hereunder are solely obligations of the Issuer, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, any other
Person under or by reason of this Indenture, any Supplement or any Notes or
implied therefrom, or for any claim based thereon or in respect thereof,

                                       17
<PAGE>

all such liability and any and all such claims being hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of such Notes. Except as provided in any Supplement, no
Person other than the Issuer shall be liable for any obligation of the Issuer
under this Indenture or any Note or any losses incurred by any Noteholder.

          SECTION 2.04 REGISTRATION, TRANSFER AND EXCHANGE.

          (a) The Issuer shall cause to be kept at the Corporate Trust Office a
register (the "NOTE REGISTER") in which, subject to such reasonable regulations
as the Trustee may prescribe, the Issuer shall provide for the registration of
Notes and of transfers of Notes. The Trustee is hereby appointed "NOTE
REGISTRAR" for the purpose of registering Notes and transfers of Notes as herein
provided.

          (b) Upon surrender for registration of transfer of any Note at the
Corporate Trust Office, the Issuer shall execute and the Trustee upon request
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes of the same class, of any authorized
denominations and of a like aggregate original principal amount.

          (c) All Notes issued upon any registration of transfer or exchange of
Notes shall be the valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture and any Supplement, as
the Notes surrendered upon such registration of transfer or exchange.

          (d) Every Note presented or surrendered for registration of transfer
or for exchange shall (if so required by the Issuer or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Trustee duly executed, by the holder thereof
or his attorney duly authorized in writing.

          (e) No service charge shall be made for any registration of transfer
or exchange of Notes but the Issuer or the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, but this
provision shall not apply to any exchange pursuant to Section 9.04 not involving
any transfer.

          (f) If Notes are issued or exchanged in definitive form under Section
2.02, such Notes will not be registered by the Trustee unless each prospective
initial Noteholder acquiring a Note, each prospective transferee acquiring a
Note and each prospective owner (or transferee thereof) of a beneficial interest
in Notes acquiring such beneficial interest provides the Servicer, the Issuer,
the Trustee and any successor Servicer with a representation that the statements
in either subsections (1) or (2) of Section 2.11 is an accurate representation
as to all sources of funds to be used to pay the purchase price of the Notes.

          (g) No transfer of a Note shall be deemed effective unless the
registration and

                                       18
<PAGE>

prospectus delivery requirements of Section 5 of the Securities Act of 1933, as
amended, and any applicable state securities laws are complied with, or such
transfer is exempt from the registration and prospectus delivery requirements
under said Securities Act and laws. In the event that a transfer is to be made
without registration or qualification, such Noteholder's prospective transferee
shall deliver to the Trustee an investment letter substantially in the form of
Exhibit G hereto (the "INVESTMENT LETTER"). The Trustee is not under any
obligation to register the Notes under said Act or any other securities law or
to bear any expense with respect to such registration by any other Person or
monitor compliance of any transfer with the securities laws of the United States
regulations promulgated in connection thereto or ERISA unless the Notes are
issued or exchanged in definitive form under Section 2.02.

          (h) No Class E Noteholder shall transfer, sell, assign, pledge or
otherwise grant a security interest in ("TRANSFER"), a Class E Note, as
applicable, to any Person that is not a United States person within the meaning
of section 7701(a)(30) of the Code. In the event of any Transfer with respect to
a Class E Note, the Trustee shall require, in addition to any other applicable
requirements set forth in this Indenture, including without limitation, the
delivery of the Investment Letter, (A) the purchaser to execute a Tax
Certificate in substantially the form attached as Exhibit I hereto certifying to
the transferor and the Trustee as to the matters set forth therein and (B) the
transferee to certify, in form and substance reasonably acceptable to the
Trustee, that (1) the transferee is acquiring the Class E Note for its own
behalf and is not acting as agent or custodian for any other person or entity in
connection with such acquisition and (2) the transferee is a United States
person within the meaning of section 7701(a)(30) of the Code.

          In addition, no Class E Noteholder shall Transfer a Class E Note, as
applicable, to any Person that is a grantor trust, partnership or S corporation
(each a "PASS-THROUGH ENTITY") if substantially all of the value of the assets
of the Pass-Through Entity is attributable to the Pass- Through Entity's
ownership interest in securities of the Issuer other than the Class A, Class B,
Class C Notes and Class D Notes, nor may the Class E Notes be Transferred or
sold to any Person if, for the purposes of Section 7704 of the Code and the
Treasury regulations promulgated thereunder, after giving effect to such
Transfer the Issuer would be treated under the Code (by virtue of calculating
the aggregate number, Class E Noteholders and holders of the Class F Instrument
(if issued)) as being owned by more than 100 persons. In the event of any
Transfer with respect to a Class E Note, the Trustee shall require, in addition
to any other applicable requirements set forth in this Agreement, including
without limitation, the delivery of the Investment Letter, (A) the purchaser to
execute a Tax Certificate substantially in the form attached as Exhibit I hereto
in form and substance reasonably acceptable to the Trustee certifying to the
transferor and the Trustee as to the matters set forth therein and (B) the
transferee to certify, in form and substance reasonably acceptable to the
Trustee, that (1) the transferee is acquiring the Class E Note for its own
behalf and is not acting as agent or custodian for any other person or entity in
connection with such acquisition and (2) the transferee is (x) not a
Pass-through Entity or (y) is a Pass-through Entity but after giving effect to
such purchase of such Note by such person, substantially all of the value of the
assets of the Pass- Through Entity is not attributable to the Pass-Through
Entity's ownership interest in Class E Notes.

                                       19
<PAGE>

          SECTION 2.05 MUTILATED, DESTROYED, LOST AND STOLEN NOTES.

          (a) If any mutilated Note is surrendered to the Trustee, the Issuer
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a replacement Note of the same class, of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

          (b) If there shall be delivered to the Issuer and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Note and
(ii) such security or indemnity as may be required by them to save each of them
and any agent of either of them harmless, then, in the absence of actual notice
to the Issuer or the Trustee that such Note has been acquired by a bona fide
purchaser, the Issuer shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Note, a
replacement Note of the same class, of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

          (c) In case the final installment of principal on any such mutilated,
destroyed, lost or stolen Note has become or will at the next Payment Date
become due and payable, the Issuer in its discretion may, instead of issuing a
replacement Note, pay such Note.

          (d) Upon the issuance of any replacement Note under this Section, the
Issuer or the Trustee may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed as a result of the issuance
of such replacement Note.

          (e) Every replacement Note issued pursuant to this Section in lieu of
any destroyed, lost or stolen Note shall constitute an original additional
contractual obligation of the Issuer, whether or not the destroyed, lost or
stolen Note shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Indenture and any Supplement equally and
proportionately with any and all other Notes of the same class, duly issued
hereunder.

          (f) The provisions of this Section are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

          SECTION 2.06 DELIVERY OF CLASS F INSTRUMENTS.

          (a) The Issuer may issue the Class F Instruments upon delivery to the
Trustee of the following: (i) a Supplement in form reasonably satisfactory to
the Trustee executed by the Issuer, the Trustee and any other applicable party
and specifying the items provided in Section 2.06(c) and any other terms (the
"PRINCIPAL TERMS"), (ii) any related credit enhancement agreements as
contemplated by such Supplement, (iii) written confirmation from each Rating
Agency that the issuance of such Class F Instruments will not result in a
Ratings Effect with respect to any class of Notes; PROVIDED, HOWEVER, that no
such written confirmation shall be required if the Class F Instruments are
issued on the Closing Date, (iv) such other closing documents, certificates and
Opinions of Counsel as may be required by this Indenture or the applicable
Supplement and (v) an

                                       20
<PAGE>

Officer's Certificate from the Issuer stating that each of the conditions to the
issuance of the Class F Instruments set forth in this Section 2.06 have been
satisfied. In no event shall the Issuer issue a Class F Instrument to the order
of the Issuer or an Affiliate.

          (b) Any such Class F Instrument shall be substantially in the form of
Exhibit F hereto and shall bear, upon its face, the designation for such class
to which it belongs so selected by the Issuer and set forth in the related
Supplement. All Class F Instruments shall be identical in all respects except
for the denominations thereof and shall be equally and ratably entitled among
themselves to the benefits of this Indenture and any Supplement thereof without
preference, priority or distinction on account of the actual title or times of
authentication and delivery, all in accordance with the terms and provisions of
this Indenture and such Supplement. Notwithstanding anything contained in any
Supplement, such Class F Instruments, if any, shall be subordinate to the Class
A Notes, the Class B Notes, the Class C Notes, the Class D Notes and the Class E
Notes, and no Class F Instruments shall adversely affect the method of
allocating Available Funds to Class A Notes, the Class B Notes, the Class C
Notes, the Class D Notes or the Class E Notes for any period or alter or affect
the manner or timing of distributions to the Class A, Class B, Class C, Class D
or Class E Noteholders or the rights or priority of such holders in and to the
Trust Property.

          (c) Any Supplement relating to Class F Instruments shall define or
provide for, but shall not be limited to, the following Principal Terms: (i) the
name or designation of the Class F Instruments, (ii) the initial balance of the
Class F Instrument (or method for calculating such amount), (iii) the rate of
interest applicable to such Class F Instrument (or formula for the determination
thereof, which may provide that such rate is a floating rate), (iv) the Class F
Percentage, (v) the Stated Maturity Date, (vi) the Redemption Price, if any,
(vii) the Payment Dates and the date or dates from which interest shall accrue
and (viii) if the Class F Instruments are entitled to receive less than the
entire amount distributable to the Issuer or its designee pursuant to Section
3.04(b)(xiii), the amount that the Class F Instruments are entitled to receive;
PROVIDED that no such Supplement shall conflict with the terms of this Indenture
in any respect.

          (d) The Issuer will not issue, sell, assign, pledge or otherwise grant
a security interest in, the Class F Instruments without an Opinion of Counsel
acceptable in form and substance to the Trustee and addressed to the Trustee
delivered by outside counsel to the Issuer to the effect that for federal income
tax purposes (i) such issuance, sale, assignment, pledge or grant of a security
interest in the Class F Instruments will not affect the tax characterization of
any of the Class A Notes, Class B Notes, Class C Notes or Class D Notes as
indebtedness or Class E Notes as indebtedness or partnership interests, (ii)
such issuance, sale, assignment, pledge or grant of a security interest in the
Class F Instruments will not constitute a deemed reissuance of the Class A
Notes, the Class B Notes, the Class C Notes, the Class D Notes or the Class E
Notes under Treasury Regulations ss.1.1001-3 and (iii) such issuance, sale,
assignment, pledge or grant of a security interest in the Class F Instruments
will not prevent the income from the Trust Property from being properly included
in the consolidated federal income tax return of the DVI Group.

                                       21
<PAGE>

          SECTION 2.07 PAYMENT OF INTEREST AND PRINCIPAL; RIGHTS PRESERVED.

          (a) Any installment of interest or principal payable on any Note that
is paid or duly provided for by the Issuer on the applicable Payment Date shall
be paid to the Person in whose name such Note was registered at the close of
business on the Record Date for such Payment Date by wire transfer of
immediately available funds to the account and number specified in the Note
Register on such Record Date for such Person or, if no such account or number is
so specified, then by check mailed to such Person's address as it appears in the
Note Register on such Record Date.

          (b) All reductions in the principal amount of a Note effected by
payments of installments of principal made on any Payment Date shall be binding
upon all holders of such Note and of any Note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. All payments on the Notes shall be paid without
any requirement of presentment but each holder of any Note shall be deemed to
agree, by its acceptance of the same, to surrender such Note at the Corporate
Trust Office for the payment of the final installment of principal on such Note.

          SECTION 2.08 PERSONS DEEMED OWNERS.

          Prior to due presentment of a Note for registration or transfer, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Noteholder as the owner of such Note for the purpose of receiving payment of
principal of and interest on such Note and for all other purposes whatsoever,
whether or not such Note be overdue, and neither the Issuer, the Trustee nor any
agent of the Issuer or the Trustee shall be affected by notice to the contrary.

          SECTION 2.09 CANCELLATION.

          All Notes surrendered for registration of transfer or exchange or
final payment shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly cancelled by it. The Issuer may
at any time deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Notes held by the Trustee may be disposed of in the
normal course of its business or as directed by an Issuer Order.

          SECTION 2.10. NOTEHOLDER LISTS; COMMUNICATIONS TO NOTEHOLDERS.

          (a) The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Noteholders and the Swap Providers. If the Trustee is not the Note Registrar,
the Issuer or other obligor, if any, shall furnish to the Trustee at least three
Business Days prior to each Record Date and at such other times as the Trustee
may request in writing a list in such form and as of such date as the Trustee
may reasonably

                                       22
<PAGE>

require of the names and addresses of Noteholders and the Swap Providers.

          (b) If any Noteholder (herein referred to as an "APPLICANT") applies
in writing to the Trustee, and such application states that the applicant
desires to communicate with other Noteholders with respect to their rights under
this Indenture or under the Notes, then the Trustee shall, within three Business
Days after the receipt of such application, afford such applicant(s) access to
the information preserved at the time by the Trustee in accordance with Section
2.10(a).

          (c) Every Noteholder, by receiving and holding the same, agrees with
the Issuer and the Trustee that neither the Issuer nor the Trustee nor any agent
of either of them shall be held accountable by reason of the disclosure of any
such information as to the names and addresses of the Noteholders in accordance
with Section 2.10(b), regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 2.10(b).

          SECTION 2.11. ERISA DEEMED REPRESENTATIONS

          Each prospective initial Noteholder acquiring Notes, each prospective
transferee acquiring the Notes, and each prospective owner (or transferee
thereof) of a beneficial interest in Notes (each a "PROSPECTIVE OWNER") will be
deemed to have represented by such purchase to the Issuer, the Trustee, the
Servicer and any successor Servicer that either (1) it is not a plan within the
meaning of Section 3(3) of ERISA or Section 4975 of the Code ("PLAN") and is not
directly or indirectly acquiring the Notes on behalf of, as investment manager
of, as named fiduciary of, as trustee of, or with the assets of a Plan; or (2)
the acquisition and holding of the Notes will not give rise to a prohibited
transaction under Section 406(a) of ERISA or Section 4975 of the Code for which
a statutory or administrative exemption is unavailable.

                                       23
<PAGE>

                                   ARTICLE III

                   ACCOUNTS; INVESTMENT OF MONEYS; COLLECTION
                       AND APPLICATION OF MONEYS; REPORTS

          SECTION 3.01 ACCOUNTS; INVESTMENTS BY TRUSTEE.

          (a) The Servicer, pursuant to a Lock-Box Agreement, shall establish a
Lock-Box Account, which account shall be an Eligible Deposit Account, in the
name of the Trustee for the benefit of the Noteholders and the Swap Providers.
Each Lock-Box Account shall be a segregated account initially established and
maintained with First National Bank of Chicago, Firstar Bank N.A. or such other
Lock-Box Bank as the Servicer may select; PROVIDED, HOWEVER, that the Servicer
(i) shall give the Trustee and the Rating Agencies written notice of any change
in the location of a Lock- Box Account and (ii) shall give at least 10 days'
prior written notice of the new location to each Obligor.

               In addition, on or before the Closing Date, the Trustee shall
establish in the name of the Trustee for the benefit of the Noteholders, the
Swap Providers and the Issuer to the extent of their interests therein as
provided in this Indenture and in the Contribution and Servicing Agreement, the
following accounts, which accounts shall be trust accounts maintained at the
Corporate Trust Office:

               (i)  Collection Account;

               (ii) Distribution Account;

               (iii) Reserve Account; and

               (iv) Successor Servicer Reserve Account.

Each of such accounts shall be established and maintained as an Eligible Deposit
Account. In addition, the Trustee shall establish a sub-account to the
Distribution Account for each Class of Notes (such sub-accounts the "CLASS A
DISTRIBUTION SUB-ACCOUNT," the "CLASS B DISTRIBUTION SUB- ACCOUNT," the "CLASS C
DISTRIBUTION SUB-ACCOUNT" the "CLASS D DISTRIBUTION SUB-ACCOUNT," the "CLASS E
DISTRIBUTION SUB-ACCOUNT" and, if necessary, the "CLASS F DISTRIBUTION
SUB-ACCOUNT"). Subject to the further provisions of this Section 3.01(a), the
Trustee shall, upon receipt or upon transfer from another account, as the case
may be, deposit into such accounts all amounts received by it which are required
to be deposited therein in accordance with the written direction of the Servicer
and the provisions of this Indenture. All such amounts and all investments made
with such amounts, including all income and other gain from such investments,
shall be held by the Trustee in such accounts as part of the Trust Property as
herein provided, subject to withdrawal by the Trustee in accordance with, and
for the purposes specified in the written direction of the Servicer pursuant to
the provisions of, this Indenture.

                                       24
<PAGE>

          The Collection Account shall be comprised of more than one such
Eligible Deposit Account, but shall, for the purposes of the Transaction
Documents, be deemed to be one account. Funds shall be withdrawn equally from
each such Eligible Account that constitutes the Collection Account to make all
payments from the Collection Account in accordance with the terms and conditions
of this Indenture.

          (b) The Trustee shall hold in trust but shall not be required to
deposit in any account specified in Section 3.01(a) any payment received by it
until such time as the Trustee shall have identified to its reasonable
satisfaction the nature of such payment and, on the basis thereof, the proper
account or accounts into which such payment is to be deposited. In determining
into which of the accounts, if any, referred to above any amount received by the
Trustee is to be deposited, the Trustee may conclusively rely (in the absence of
bad faith on the part of the Trustee) on the written instructions of the
Servicer. Unless otherwise advised in writing by the Servicer, the Trustee shall
assume that any amount remitted to it is to be deposited into the Collection
Account pursuant to Section 3.03(b). The Trustee may establish from time to time
such deadline or deadlines as it shall determine are reasonable or necessary in
the administration of the Trust Property after which all amounts received or
collected by the Trustee on any day shall not be deemed to have been received or
collected until the next succeeding Business Day.

          (c) The Trustee shall have no right of set-off with respect to any
Lock-Box Account, the Collection Account, the Reserve Account, the Successor
Servicer Reserve Account, the Distribution Account, the Class A Distribution
Sub-Account, the Class B Distribution Sub- Account, the Class C Distribution
Sub-Account, the Class D Distribution Sub-Account, the Class E Distribution
Sub-Account, the Class F Distribution Sub-Account or any investment therein, or
any Trust Property, including collections or proceeds with respect thereto
regardless of when or how held by the Trustee and whether or not commingled.

          (d) So long as no Default or Indenture Event of Default shall have
occurred and be continuing, the amounts in the Collection Account and the
Reserve Account shall be invested and reinvested by the Trustee pursuant to a
Servicer Order in one or more Eligible Investments and the amounts in the
Successor Servicer Reserve Account shall be invested and reinvested by the
Trustee pursuant to a Servicer Order in one or more investments described in
paragraph (vii) of the definition of Eligible Investments. Subject to the
restrictions on the maturity of investments set forth in Section 3.01(f), each
such Servicer Order may authorize the Trustee to make the specific Eligible
Investments set forth therein, to make Eligible Investments from time to time
consistent with the general instructions set forth therein, or to make specific
Eligible Investments pursuant to instructions received in writing or by
telegraph or facsimile transmission from the employees or agents of the Servicer
identified therein, in each case in such amounts as such Servicer Order shall
specify. The Issuer, and any Class F Instrumentholder, agrees to report as
income for financial reporting and tax purposes (to the extent reportable) all
investment earnings on amounts in the Collection Account, the Reserve Account
and the Successor Servicer Reserve Account.

          (e) In the event that either (i) the Servicer shall have failed to
give investment

                                       25
<PAGE>

directions to the Trustee by 12:00 P.M. New York time on any Business Day on
which there may be uninvested cash or (ii) a Default or Indenture Event of
Default shall have occurred and be continuing, then the Trustee shall invest and
reinvest the funds then in the Collection Account, the Reserve Account or the
Successor Servicer Reserve Account, as the case may be, to the fullest extent
practicable in one or more Eligible Investments as specified in paragraph (vii)
of the definition of Eligible Investments. All investments made by the Trustee
shall mature no later than the maturity date therefor permitted by Section
3.01(f).

          (f) No investment of any amount held in the Collection Account, the
Reserve Account or the Successor Servicer Reserve Account shall mature later
than the second Business Day immediately preceding the Payment Date which is
scheduled to occur immediately following the date of investment; all such
investments shall be held to maturity. All income or other gains from the
investment of moneys deposited in the Collection Account, the Reserve Account or
the Successor Servicer Reserve Account shall be deposited by the Trustee in such
account immediately upon receipt. Any net loss of principal (determined on a
month by month basis) resulting from such investment of amounts in the
Collection Account or the Reserve Account shall be charged to the Issuer, and
the Issuer shall reimburse such account for such loss within three Business
Days.

          (g) Any investment of any funds in the Collection Account, the Reserve
Account or the Successor Servicer Reserve Account, and any sale of any
investment held in such accounts, shall be made under the following terms and
conditions:

               (i) each such investment shall be made in the name of the Trustee
     (in its capacity as such) for the benefit of the Noteholders and the Swap
     Providers or in the name of a nominee of the Trustee;

               (ii) the investment earnings of any investment shall be credited
     to the account for which such investment was made;

               (iii) any certificate or other instrument evidencing such
     investment shall be delivered directly to the Trustee or its agent and the
     Trustee shall have sole possession of such instrument, and all income on
     such investment; and

               (iv) the proceeds of any sale of an investment shall be remitted
     by the purchaser thereof directly to the Trustee for deposit in the account
     in which such investment was held.

          (h) The Trustee shall not in any way be held liable by reason of any
insufficiency in the Collection Account or the Reserve Account, resulting from
losses on investments made in accordance with the provisions of this Section
3.01 (but the institution serving as Trustee shall at all times remain liable
for its own debt obligations, if any, constituting part of such investments).
The Trustee shall not be liable for any investment losses or any liquidation
prior to its maturity or any investment made by it in accordance with this
Section 3.01 on the grounds that it could have made

                                       26
<PAGE>

a more favorable investment.

          SECTION 3.02 RESERVED.

          SECTION 3.03 COLLECTION OF MONEYS.

          (a) Except as otherwise expressly provided herein, the Trustee may
demand payment or delivery of, and shall receive and collect, directly and
without intervention or assistance of any fiscal agent or other intermediary,
all money and other property payable to or receivable by the Trustee pursuant to
this Indenture. The Trustee shall apply all such money received by it as
provided in this Indenture. Except as otherwise expressly provided in this
Indenture, if any default occurs in the making of any payment or performance
under any agreement or instrument that is part of the Trust Property, the
Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
proceedings. Notwithstanding the foregoing, the Trustee shall not be obligated
to act as Servicer prior to its being appointed Successor Servicer. Any such
action shall be without prejudice to any right to claim a Default or Event of
Default under this Indenture and any right to proceed thereafter as provided in
Article VI. If at any time the Issuer shall receive any payment on or in respect
of any Contract or Equipment (including any Residual Payment), it shall hold
such payment (except for the Residual Payment which the Issuer shall hold for
the benefit of the Transferor (or its assignee)) in trust for the benefit of the
Trustee, the Swap Providers and the Noteholders, shall segregate such payment
from the other property of the Issuer, and shall, within two Business Days of
receipt, deliver such payment in immediately available funds to the Trustee.

          (b) If at any time the Trustee shall receive any payment on or in
respect of any Contract or Equipment (including any Residual Payment), it shall,
within two Business Days of receipt, deposit such payment by it into the
Collection Account in accordance with the written direction of the Servicer.

          (c) If at any time the Trustee shall receive any Residual Payment in
respect of any Contract, it shall hold such Residual Payment in trust for the
benefit of the Transferor (or its assignee) and deposit such Residual Payment as
instructed in writing by the Servicer, including, without limitation, as the
Servicer may so instruct as contemplated in Section 3.04(a)(v) hereof or to such
other designee or account as the Servicer instructs.

          SECTION 3.04 COLLECTION ACCOUNT.

          (a) The Trustee shall deposit the following into the Collection
Account in accordance with the written instructions delivered to the Trustee by
the Servicer:

               (i) promptly upon receipt, each Contract Payment or Servicer
     Advance received by the Trustee, including all Contract Payments deposited
     with the Trustee by the Contributor on the Closing Date;

                                       27
<PAGE>

               (ii) promptly upon receipt, the proceeds of any purchase of
     Contracts and Equipment pursuant to Section 4.02 of this Indenture;

               (iii) promptly upon receipt, each Prepayment Amount or Partial
     Prepayment Amount received by the Trustee and any amounts remitted by the
     Contributor in connection with any substitution of Contracts;

               (iv) promptly upon receipt, any amount required to be deposited
     in the Collection Account pursuant to this Indenture;

               (v) promptly upon receipt, each Residual Payment received by the
     Trustee;

               (vi) promptly upon receipt, any proceeds received by the Trustee
     pursuant to any insurance policy covering Equipment or any other amounts
     received by the Trustee relating to a Contract or Equipment; and

               (vii) promptly upon receipt, any amounts the Trustee receives
     pursuant to Section 3.03 of this Indenture.

          (b) Unless the Notes have been declared due and payable pursuant to
Section 6.02 hereof and moneys collected by the Trustee are being applied in
accordance with Section 6.06 hereof, the Trustee shall by 3:00 P.M., New York
City time, on each Payment Date disburse all Available Funds deposited in the
Collection Account (including any investment income with respect to monies on
deposit in the Collection Account) in the amounts required, and in the following
order of priority in accordance with the Monthly Servicer Report:

               (i) (A) to the Servicer, the Servicing Fee due to the Servicer on
     such Payment Date and if the Servicer is no longer DVI, and the Servicer
     has, in its good faith and reasonable business judgment, deemed the
     Servicing Fee to be commercially unreasonable, then, to the Servicer, the
     amount agreed upon between the then Servicer and the Trustee, each in their
     good faith and commercially reasonable judgment, as necessary to make the
     Servicing Fee commercially reasonable and to cover the reasonable costs in
     transferring the servicing obligations and (B) if the Servicer is no longer
     DVI, to the Trustee, the Trustee Fee;

               (ii) to the Servicer, any unreimbursed Nonrecoverable Advances or
     Servicer Advances previously made with respect to Delinquent Contracts in
     accordance with Section 5.01 of the Contribution and Servicing Agreement;

               (iii) to the Swap Providers, PARI PASSU and PRO RATA, any Net
     Swap Payments (including interest on overdue Net Swap Payments) then due
     and payable;

               (iv) first, to the Class A Distribution Sub-Account, in the
     following order

                                       28
<PAGE>

     of priority, the sum of: (A) the Class A-1 Monthly Interest; and (B) the
     Class A-1 Overdue Interest, if any; second, to the Class A Distribution
     Sub-Account, PRO RATA and PARI PASSU in proportion to the outstanding Class
     A-2a Note Balance, Class A-2b Note Balance and the amount of any swap
     termination payments due and payable by the Issuer to the Swap Provider,
     (A) in the following order of priority, the sum of: (1) PRO RATA and PARI
     PASSU, the Class A-2a Monthly Interest and the Class A-2b Monthly Interest
     and (2) PRO RATA and PARI PASSU, the Class A-2a Overdue Interest and the
     Class A-2b Overdue Interest, if any; and (B) the amount of any swap
     termination payments under the Swap Agreement; PROVIDED that if no Class
     A-2a Monthly Interest, Class A-2b Monthly Interest, Class A-2a Overdue
     Interest or Class A-2b Overdue Interest is due and payable as of such
     payment date, such amounts will be applied to pay the portion, if any, of
     any swap termination payments due and payable, if any; third, to the Class
     A Distribution Sub-Account, PRO RATA and PARI PASSU in proportion to the
     outstanding Class A-3a Note Balance, Class A-3b Note Balance and the amount
     of any swap termination payments due and payable by the Issuer to the Swap
     Provider, (A) in the following order of priority, the sum of: (1) PRO RATA
     and PARI PASSU, the Class A-3a Monthly Interest and the Class A-3b Monthly
     Interest and (2) PRO RATA and PARI PASSU, the Class A-3a Overdue Interest
     and the Class A-3b Overdue Interest, if any; and (B) the amount of any swap
     termination payments under the Swap Agreement; PROVIDED that if no Class
     A-3a Monthly Interest, Class A-3b Monthly Interest, Class A-3a Overdue
     Interest or Class A-3b Overdue Interest is due and payable as of such
     payment date, such amounts will be applied to pay the portion, if any, of
     any swap termination payments due and payable;

               (v) to the Class B Distribution Sub-Account,in the following
     order of priority, the sum of: (1) the Class B Monthly Interest and (2) the
     Class B Overdue Interest, if any; and

               (vi) to the Class C Distribution Sub-Account, in the following
     order of priority, the sum of: (1) Class C Monthly Interest and (2) the
     Class C Overdue Interest, if any;

               (vii) to the Class D Distribution Sub-Account, PRO RATA and PARI
     PASSU in proportion to the outstanding Class D Note Balance and the amount
     of any swap termination payments due and payable by the Issuer to the Swap
     Provider:

                    (A) in the following order of priority, the sum of: (1) the
     Class D Monthly Interest and (2) Class D Overdue Interest, if any; and

                    (B) the amount of any swap termination payments under the
     Swap Agreement; PROVIDED that if no Class D Monthly Interest or Class D
     Overdue Interest is due and payable as of such payment date, such amounts
     will be applied to pay the portion, if any, of any swap termination
     payments due and payable;

               (viii) to the Class E Distribution Sub-Account, PRO RATA and PARI
     PASSU in

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<PAGE>

     proportion to the outstanding Class E Note Balance and the amount of any
     swap termination payments due and payable by the Issuer to the Swap
     Provider:

                    (A) in the following order of priority, the sum of: (1) the
     Class E Monthly Interest and (2) the Class E Overdue Interest, if any; and

                    (B) the amount of any swap termination payments under the
     Swap Agreement; PROVIDED that if no Class E Monthly Interest or Class E
     Overdue Interest is due and payable as of such payment date, such amounts
     will be applied to pay the portion, if any, of any swap termination
     payments due and payable;

               (ix) PROVIDED that no Amortization Event shall have occurred and
     be continuing, to the Class A Distribution Sub-Account, in the following
     order of priority, the sum of:

                    (A) the Class A-1 Overdue Principal, if any;

                    (B) the Class A-1 Monthly Principal;

                    (C) PRO RATA and PARI PASSU, the Class A-2a Overdue
                    Principal and the Class A-2b Overdue Principal, if any;

                    (D) PRO RATA and PARI PASSU, the Class A-2a Monthly
                    Principal and the Class A-2b Monthly Principal;

                    (E) PRO RATA and PARI PASSU, the Class A-3a Overdue
                    Principal and the Class A-3b Overdue Principal, if any; and

                    (F) PRO RATA and PARI PASSU, the Class A-3a Monthly
                    Principal and the Class A-3b Monthly Principal;

               (x) PROVIDED that no Amortization Event shall have occurred and
     be continuing, to the Class B Distribution Sub-Account, in the following
     order of priority, the sum of:

                    (A)  the Class B Overdue Principal, if any; and

                    (B)  the Class B Monthly Principal;

               (xi) PROVIDED that no Amortization Event shall have occurred and
     be continuing, to the Class C Distribution Sub-Account, in the following
     order of priority, the sum of:

                                       30
<PAGE>

                    (A)  the Class C Overdue Principal, if any; and

                    (B)  the Class C Monthly Principal;

               (xii) PROVIDED that no Amortization Event shall have occurred and
     be continuing, to the Class D Distribution Sub-Account, in the following
     order of priority, the sum of:

                    (A)  the Class D Overdue Principal, if any; and

                    (B)  the Class D Monthly Principal;

               (xiii) PROVIDED that no Amortization Event shall have occurred
     and be continuing, to the Class E Distribution Sub-Account, in the
     following order of priority, the sum of:

                    (A)  the Class E Overdue Principal, if any; and

                    (B)  the Class E Monthly Principal;

               (xiv) PROVIDED that no Amortization Event shall have occurred and
     be continuing, to the Reserve Account, the Reserve Account Deposit Amount;

               (xv) if an Amortization Event shall have occurred and is
     continuing and is not subject to a continuing waiver from Noteholders
     evidencing not less than 662/3% of the Voting Rights, in the following
     order of priority:

                    FIRST, to the Class A Distribution Sub-Account the amount
               necessary to reduce the Class A-1 Note Balance to zero; then, PRO
               RATA and PARI PASSU, to the Class A Distribution Sub-Account, the
               amount necessary to reduce the Class A-2a Note Balance to zero
               and the Class A-2b Note Balance to zero; then, PRO RATA and PARI
               PASSU, to the Class A Distribution Sub-Account, the amount
               necessary to reduce the Class A-3a Note Balance to zero and the
               Class A-3b Note Balance to zero;

                    SECOND, PRO RATA and PARI PASSU, to the Class B Distribution
               Sub- Account, the amount necessary to reduce the Class B Note
               Balance to zero; and

                    THIRD, PRO RATA and PARI PASSU, to the Class C Distribution
               Sub-Account, the amount necessary to reduce the Class C Note
               Balance to zero;

                    FOURTH, PRO RATA and PARI PASSU, to the Class D Distribution
               Sub- Account, the amount necessary to reduce the Class D Note
               Balance to zero; and

                                       31
<PAGE>

                    FIFTH, PRO RATA and PARI PASSU, to the Class E Distribution
               Sub-Account, the amount necessary to reduce the Class E Note
               Balance to zero;

               (xvi) any remaining Available Funds on deposit in the Collection
     Account shall be paid to DVI Receivables Corp. VIII, as sole member of the
     Issuer, or, if the Class F Instrument has been issued, to the Class F
     Distribution Sub-Account.

Noteholders evidencing not less than 662/3% of the Voting Rights shall have the
ability to waive or defer any Amortization Event by written notice delivered to
the Trustee. If at any time any amount or portion thereof previously distributed
pursuant to this Section 3.04(b) shall have been recovered, or shall be subject
to recovery, in any proceeding with respect to the Issuer or otherwise, then for
purposes of determining future distributions pursuant to this Section 3.04(b)
such amount or portion thereof shall be deemed not to have been previously so
distributed. The Trustee shall make the disbursements in accordance with the
Monthly Servicer Report on each Payment Date to the extent of Available Funds
for such Payment Date.

          (c) If on any Payment Date, the payments required to be made pursuant
to clause (i) of Section 3.04(b) include (x) any payments then due and payable
in connection with the selection of, or transition to, a Successor Servicer or
(y) any shortfall between the Available Funds on deposit in the Collection
Account (the "DEPOSITED AVAILABLE FUNDS") and the servicing fees then due and
payable to the Successor Servicer, then the trustee shall withdraw from the
Successor Servicer Reserve Account, to the extent that such funds are on deposit
in the Successor Servicer Reserve Account and, if required under Section
3.07(c), the Noteholders representing more than 50% of the Voting Rights have
consented, such amounts then due and payable. If on any Payment Date, the
Deposited Available Funds are less than the sum necessary to make the payments
required pursuant to Section 3.04(b), clauses (iii) through (xii) inclusive and
clause (xiv), each as applicable (the sum of such payments, the "PRIORITY
PAYMENTS"), then the Trustee shall withdraw from the Reserve Account, to the
extent that such funds are on deposit in the Reserve Account and after taking
into account payments to be made pursuant to clauses (i) and (ii) of Section
3.04(b) as well as any withdrawal from the Successor Servicer Reserve Account,
and either (A) if an automatic stay under Section 362(a) of the Bankruptcy Code
has not been applied to the Trust Property, deposit into the Distribution
Account for payment on such Payment Date funds equal to the amount of the
Priority Payments less any Deposited Available Funds for payment in accordance
with Section 3.04(b)(iii) through and including (xii) and (xiv) hereof, as
applicable or (B) if an automatic stay under Section 362(a) of the Bankruptcy
Code has been applied to the Trust Property, deposit into the Distribution
Account for payment on such Payment Date funds equal to the amount of payments
required pursuant to Section 3.04(b), clauses (iii) through (vii) less any
Deposited Available Funds for payment in accordance with Section 3.04(b)(iii)
through and including (vii) hereof, as applicable (the amount calculated
pursuant to clause (A) or (B), as applicable, the "AVAILABLE RESERVE ACCOUNT
FUNDS").

          (d) Unless the Notes have been declared due and payable pursuant to
Section 6.02 hereof and moneys collected by the Trustee are being applied in
accordance with Section 6.06 hereof, the Trustee shall by 3:00 p.m., New York
City time, on each Payment Date, disburse all Residual

                                       32
<PAGE>

Payments deposited in the Collection Account which are not includible in
Available Funds, to the Transferor or such other designee or account as the
Servicer instructs in accordance with the Monthly Servicer Report.

          SECTION 3.05 CLASS A DISTRIBUTION SUB-ACCOUNT; CLASS B DISTRIBUTION
SUB-ACCOUNT; CLASS C DISTRIBUTION SUB-ACCOUNT; CLASS D DISTRIBUTION SUB-ACCOUNT;
CLASS E DISTRIBUTION SUB-ACCOUNT; CLASS F DISTRIBUTION SUB-ACCOUNT.

          (a) On each Payment Date in accordance with the Monthly Servicer
Report the Trustee shall pay to the Class A Noteholders, from the amounts then
on deposit in the Class A Distribution Sub-Account and allocated pursuant to
Section 3.04 hereof, first to the Class A-1 Noteholders, the Class A-2
Noteholders, the Class A-3a Noteholders and the Class A-3b Noteholders, PRO RATA
among the Noteholders of each such Class, in the following order of priority:

                     (i)   the Class A-1 Monthly Interest;
                    (ii)   the Class A-1 Overdue Interest, if any;
                   (iii)   PRO RATA and PARI PASSU, the Class A-2a Monthly
                           Interest and the Class A-2b Monthly Interest;
                    (iv)   PRO RATA and PARI PASSU, the Class A-2a Overdue
                           Interest and the Class A-2b Overdue Interest, if any;
                     (v)   PRO RATA AND PARI PASSU, the Class A-3a Monthly
                           Interest and the Class A-3b Monthly Interest; and
                    (vi)   PRO RATA and PARI PASSU, the Class A-3a Overdue
                           Interest and the Class A-3b Overdue Interest, if any;

          second, to the Class A-1 Noteholders, the Class A-2a Noteholders, the
Class A-2b Noteholders, the Class A-3a Noteholders and the Class A-3b
Noteholders, PRO RATA among the Noteholders of each such Class, in the following
order of priority:

                     (i)   the Class A-1 Overdue Principal, if any;
                    (ii)   the Class A-1 Monthly Principal;
                   (iii)   any additional Class A-1 principal payable pursuant
                           to this Indenture;
                    (iv)   PRO RATA and PARI PASSU, the Class A-2a Overdue
                           Principal and the Class A-2b Overdue Principal,
                           if any;
                     (v)   PRO RATA and PARI PASSU, the Class A-2a Monthly
                           Principal and the Class A-2b Monthly Principal;
                    (vi)   PRO RATA and PARI PASSU, any additional Class A-2a
                           principal payable pursuant to this Indenture and any
                           additional Class A-2b principal payable under this
                           Indenture;
                   (vii)   PRO RATA and PARI PASSU, the Class A-3a Overdue
                           Principal and the Class A-3b Overdue Principal,
                           if any;
                  (viii)   PRO RATA and PARI PASSU, the Class A-3a Monthly
                           Principal and

                                       33
<PAGE>

                           the Class A-3b Monthly Principal; and
                    (ix)   PRO RATA and PARI PASSU, any additional Class A-3a
                           principal payable pursuant to this Indenture and any
                           additional Class A- 3b principal payable under this
                           Indenture.

          (b) On each Payment Date in accordance with the Monthly Servicer
Report the Trustee shall pay to the Class B Noteholders, PRO RATA among the
Noteholders of each such Class, the amount then on deposit in the Class B
Distribution Sub-Account and allocated pursuant to Section 3.04 hereof. Such
payments to the Class B Noteholders shall be made in the following order of
priority:

                     (i)   the Class B Monthly Interest;
                    (ii)   the Class B Overdue Interest, if any;
                   (iii)   the Class B Overdue Principal, if any;
                    (iv)   the Class B Monthly Principal; and
                     (v)   PRO RATA and PARI PASSU, any additional principal
                           payable to the Class B Noteholders pursuant to this
                           Indenture.

          (c) On each Payment Date in accordance with the Monthly Servicer
Report the Trustee shall pay to the Class C Noteholders PRO RATA among the
Noteholders of each such Class, the amount then on deposit in the Class C
Distribution Sub-Account and allocated pursuant to Section 3.04 hereof. Such
payments to the Class C Noteholders shall be made in the following order of
priority:

                      (i)  the Class C Monthly Interest;
                     (ii)  the Class C Overdue Interest, if any;
                    (iii)  the Class C Overdue Principal, if any;
                     (iv)  the Class C Monthly Principal; and
                      (v)  any additional principal payable to the Class C
                           Noteholders pursuant to this Indenture.

          (d) On each Payment Date in accordance with the Monthly Servicer
Report the Trustee shall pay to the Class D Noteholders, PRO RATA among the
Noteholders of each such Class, the amount then on deposit in the Class D
Distribution Sub-Account and allocated pursuant to Section 3.04 hereof. Such
payments to the Class D Noteholders shall be made in the following order of
priority:

                     (i)   the Class D Monthly Interest;
                    (ii)   the Class D Overdue Interest, if any;
                   (iii)   the Class D Overdue Principal, if any;
                    (iv)   the Class D Monthly Principal; and
                     (v)   any additional principal payable to the Class D
                           Noteholders pursuant to this Indenture.

                                       34
<PAGE>

          (e) On each Payment Date in accordance with the Monthly Servicer
Report the Trustee shall pay to the Class E Noteholders, PRO RATA among the
Noteholders of each such Class, the amount then on deposit in the Class E
Distribution Sub-Account and allocated pursuant to Section 3.04 hereof. Such
payments to the Class E Noteholders shall be made in the following order of
priority:

                     (i)   the Class E Monthly Interest;
                    (ii)   the Class E Overdue Interest, if any;
                   (iii)   the Class E Overdue Principal, if any;
                    (iv)   the Class E Monthly Principal; and
                     (v)   any additional principal payable to the Class E
                           Noteholders pursuant to this Indenture.

          (f) If the Class F Instruments have been issued, on each Payment Date
in accordance with the Monthly Servicer Report the Trustee shall distribute to
the Class F Instrumentholders, PRO RATA among all holders of Class F
Instruments, the amount then on deposit in the Class F Distribution Sub-Account
in the priority set forth in the Supplement.

          SECTION 3.06 RESERVED.

          SECTION 3.07 SUCCESSOR SERVICER RESERVE ACCOUNT.

          (a) On the Closing Date the Trustee shall promptly deposit into the
Successor Servicer Reserve Account all amounts required to be deposited into the
Successor Servicer Reserve Account and actually received by the Trustee pursuant
to this Indenture. The obligation of the Trustee to deposit amounts into the
Successor Servicer Reserve Account in accordance with the terms of this
Indenture shall be limited to the deposit of amounts in the Collection Account
pursuant to Section 3.07(b) hereof. The Issuer, or Class F Instrumentholder, if
any, by its acceptance of the Class F Instrument, agrees to treat such assets
(and all earnings thereon) (the "SUCCESSOR SERVICER RESERVE ACCOUNT PROPERTY")
as its assets (and earnings) for federal, state and local tax purposes and not
to sell, transfer or otherwise dispose of its interest therein.

          (b) On the Closing Date, the Trustee shall deposit in the Successor
Servicer Reserve Account an amount equal to the Initial Successor Servicer
Reserve Account Deposit Amount from the proceeds of the issuance of the Notes.

          (c) If on any Payment Date, the payments required to be made pursuant
to clause (i) of Section 3.04(b) include (x) any payments then due and payable
in connection with the selection of, or transition to, a Successor Servicer, or
(y) any shortfall between the Deposited Available Funds and the servicing fees
then due and payable to the Successor Servicer, then the Trustee shall withdraw
from the Successor Servicer Reserve Account in accordance with Section 3.04(c)
hereof; PROVIDED HOWEVER, to the extent such payments required to be made
pursuant to clause (i) of Section 3.04(b) include amounts described in clause
(x) of this subsection (c), the Trustee shall withdraw from the Successor
Servicer Reserve Account only with the consent of the Noteholders representing
more than

                                       35
<PAGE>

50% of the Voting Rights (such consent not to be unreasonably withheld).

          (d) With respect to the Successor Servicer Reserve Account Property,
the Issuer and the Trustee agree that any Successor Servicer Reserve Account
Property that is held in deposit accounts shall be held solely in the name of
the Trustee, on behalf of the Noteholders. Each such deposit account shall be
subject to the exclusive custody and control of the Trustee, and the Trustee
shall have sole signature authority with respect thereto.

          (e) Upon termination of this Indenture, any amounts on deposit in the
Successor Servicer Reserve Account, after payment of amounts due to the Class A
Noteholders, the Class B Noteholders, the Class C Noteholders, the Class D
Noteholders, the Class E Noteholders upon the Managing Member's written request
to the Trustee, shall be paid to the Managing Member (as sole beneficial owner
of the Issuer), or Class F Instrumentholders, if any.

          SECTION 3.08 RESERVE ACCOUNT.

          (a) On each Payment Date the Trustee shall promptly deposit into the
Reserve Account all amounts required to be deposited into the Reserve Account
and actually received by the Trustee pursuant to this Indenture. The obligation
of the Trustee to deposit amounts into the Reserve Account in accordance with
the terms of this Indenture shall be limited to the deposit of amounts in the
Collection Account pursuant to Section 3.04(b) hereof. The Trustee shall not
have any responsibility to determine the amount or adequacy of funds on deposit
in the Reserve Account, or the amount of any deposits to or withdrawals from the
Reserve Account. The Issuer, or Class F Instrumentholder, if any, by its
acceptance of the Class F Instrument, agrees to treat such assets (and all
earnings thereon) (the "RESERVE ACCOUNT PROPERTY") as its assets (and earnings)
for federal, state and local tax purposes and not to sell, transfer or otherwise
dispose of its interest therein.

          (b) On each Payment Date, the Trustee shall, on the basis of the
Monthly Servicer Report, deposit in the Reserve Account, pursuant to Section
3.04(b), an amount equal to the Reserve Account Deposit Amount. If on any
Payment Date, Deposited Available Funds are less than the Priority Payments, the
Trustee shall withdraw from the Reserve Account the excess of the Priority
Payments over the Available Funds in accordance with Section 3.04(c) hereof. On
each Payment Date after the appointment of a Successor Servicer as a result of
the occurrence and continuance of a Servicer Event of Default, such Successor
Servicer (as long as no Servicer Event of Default has occurred with respect to
such Successor Servicer) may withdraw from amounts on deposit in th Reserve
Account any expenses incurred by such Successor Servicer in connection with the
rehabilitation of any Delinquent Contracts and/or Defaulted Contracts; provided
that in no event shall the amount of any such reimbursement exceed one-half of
one percent (0.50%) of the Aggregate Discounted Contract Balance as of such
Payment Date. On each Payment Date, if, after giving effect to all deposits and
withdrawals therefrom on such Payment Date, the balance in the Reserve Account
is greater than the Reserve Account Requirement, the Trustee shall release and,
at the instruction of the Servicer, shall pay the amount (such amount, a
"RESERVE ACCOUNT WITHDRAWAL") of the excess to

                                       36
<PAGE>

the Issuer or its designee, or Class F Instrumentholder, if any. Amounts
properly paid to the Issuer or its designee, or Class F Instrumentholder, if
any, pursuant to this Section 3.08, either directly from the Distribution
Account without deposit in the Reserve Account or from the Reserve Account,
shall be deemed released from the Trust Property, and the Issuer or its
designee, or Class F Instrumentholder, if any, shall not in any event thereafter
be required to refund any such paid amounts.

          (c) With respect to the Reserve Account Property, the Issuer and the
Trustee agree that any Reserve Account Property that is held in deposit accounts
shall be held solely in the name of the Trustee, on behalf of the Noteholders.
Each such deposit account shall be subject to the exclusive custody and control
of the Trustee, and the Trustee shall have sole signature authority with respect
thereto.

          (d) Upon termination of this Indenture, any amounts on deposit in the
Reserve Account, after payment of amounts due to the Class A Noteholders, the
Class B Noteholders, the Class C Noteholders, the Class D Noteholders, the Class
E Noteholders upon the Managing Member's written request to the Trustee, shall
be paid to the Managing Member (as sole beneficial owner of the Issuer), or
Class F Instrumentholders, if any.

          SECTION 3.09 REPORTS; NOTICES OF CERTAIN PAYMENTS.

          (a) Following each payment to the Noteholders and the Swap Providers,
the Trustee shall mail to the Issuer, Cede & Co. and the Rating Agencies, and
make available to each Noteholder and each Swap Provider, the Monthly Servicer
Report furnished to the Trustee by the Servicer on the Determination Date prior
to such Payment Date (or if such report has not been received, a written
statement to such effect).

          (b) The Trustee shall deliver to the Servicer, and within two Business
Days after the request of the Issuer, deliver to the Issuer a written statement
setting forth the amounts on deposit in the Collection Account, the Reserve
Account and the Successor Servicer Reserve Account, and identifying the
investments included therein.

          SECTION 3.10. TRUSTEE MAY RELY ON CERTAIN INFORMATION FROM CONTRIBUTOR
AND SERVICER.

          Pursuant to the Contribution and Servicing Agreement, the Contributor
and the Servicer are required to furnish to the Trustee from time to time
certain information and make various calculations which are relevant to the
performance of the Trustee's duties in this Article III and in Article IV of
this Indenture. The Trustee shall be entitled to rely conclusively in good faith
on any such information and calculations in the performance of its duties
hereunder, (i) unless and until a Responsible Officer of the Trustee has actual
knowledge that such information or calculations is or are incorrect, or (ii)
unless there is a manifest error in any such information; PROVIDED that the
Trustee shall verify the mathematical accuracy of the Class A-1 Monthly
Principal, the Class A-2a Monthly

                                       37
<PAGE>

Principal, the Class A-2b Monthly Principal, the Class A-3a Monthly Principal,
the Class A-3b Monthly Principal, the Class B Monthly Principal, the Class C
Monthly Principal, the Class D Monthly Principal, the Class E Monthly Principal,
the Class A-1 Monthly Interest, the Class A-2a Monthly Interest, the Class A-2b
Monthly Interest, the Class A-3a Monthly Interest, the Class A-3b Monthly
Interest, the Class B Monthly Interest, the Class C Monthly Interest, the Class
D Monthly Interest and the Class E Monthly Interest to be paid on each Payment
Date.

                                       38
<PAGE>

                                   ARTICLE IV

                             CONTRACTS AND EQUIPMENT

          SECTION 4.01 REPRESENTATIONS AND WARRANTIES OF THE ISSUER.

          The Issuer hereby restates and incorporates herein each of the
representations and warranties, IN MUTATIS MUTANDIS, set forth in Section 2.03
and Section 2.04 of the Contribution and Servicing Agreement. The Trustee shall
rely on such representations and warranties in accepting the Contracts and the
other Trust Property in trust and authenticating the Notes. Such representations
and warranties shall speak as of the Closing Date.

          SECTION 4.02 PURCHASE UPON BREACH; CONTRIBUTION AND SERVICING
AGREEMENT.

          The Issuer shall inform the Trustee promptly, in writing, upon the
discovery of a breach of any of the Contributor's representations and warranties
set forth in Section 2 of the Contribution and Servicing Agreement. With respect
to any breach of the Contributor's representations and warranties set forth in
Section 2 of the Contribution and Servicing Agreement, which materially and
adversely affects the interest of the Noteholders in such Contract or Contracts,
the Issuer shall cause the Contributor to either (a) replace such Contract and
the related Equipment with a Substitute Contract (and an appropriate interest in
the related Equipment) in accordance with the provisions of Section 5.03 of the
Contribution and Servicing Agreement (and for the Transferor to receive from the
Contributor and transfer to the Issuer such Substitute Contract (and the
appropriate interest in the related Equipment)) or (b) purchase from the
Transferor (which Transferor shall purchase from the Issuer and resell to the
Contributor) the Contract and the security interest of the Issuer in the related
Equipment that are affected by such breach, unless, in each such instance such
breach has been cured, or waived in all respects by Noteholders evidencing more
than 50% of the Voting Rights, within 90 days following the Issuer's discovery
or receipt of notice of such breach. In the event of a repurchase of a Contract
(and the interest in the related Equipment), the Issuer and the Managing Member
(as sole beneficial owner of the Issuer) shall cause the Contributor to remit to
the Trustee (upon written notice to the Trustee thereof) the Repurchase Amount
of such Contract (or, if such Contract is then a Defaulted Contract, an amount
equal to the Repurchase Amount as of the date such Contract first became a
Defaulted Contract, together with interest thereon at the Discount Rate from the
date such Contract first became a Defaulted Contract to the end of the month in
which the repurchase is to be made). The Trustee shall, to the extent received,
deposit such Repurchase Amounts and any cash received in connection with a
substitution in the Collection Account on or prior to 11:00 a.m. New York City
time on the second Business Day after receipt thereof. The sole remedy of the
Trustee or the Noteholders against the Contributor with respect to a breach of a
representation or a warranty set forth in Section 2 of the Contribution and
Servicing Agreement, and against the Issuer or the Transferor with respect to a
breach under this Agreement or the Subsequent Contract Transfer Agreement by
reason of such breach by the Contributor, shall be to require the Contributor to
purchase or substitute Contracts (and the related Equipment) pursuant to the
Contribution and Servicing Agreement, PROVIDED that the limitation contained in
this sentence shall not otherwise limit the rights

                                       39
<PAGE>

of any such Person under Section 5.02 of the Contribution and Servicing
Agreement. In the event that the Contributor fails to purchase or substitute for
any Contract (and the related Equipment) that it is required to substitute or
repurchase pursuant to the Contribution and Servicing Agreement, the Trustee,
upon the written direction of the Noteholders, shall enforce the Issuer's and
the Transferor's rights against the Contributor under and in accordance with the
terms of the Contribution and Servicing Agreement, and the SCTA, as assigned to
the Trustee, to require the purchase or replacement of the Contract (and the
related Equipment).

          SECTION 4.03 RELEASE OF CONTRACTS AND EQUIPMENT FOLLOWING SUBSTITUTION
OR PURCHASE.

          In the event that (i) the Contributor shall have substituted a
Substitute Contract and an interest in the Equipment subject thereto for a
Predecessor Contract and an interest in the Equipment subject thereto in
accordance with Section 7 of the Contribution and Servicing Agreement, or (ii)
the Contributor or Servicer shall have purchased a Contract and the interest in
the related Equipment in accordance with Section 5.03 of the Contribution and
Servicing Agreement, the Predecessor Contract or the repurchased Contract, as
applicable, and the interest in the Equipment subject thereto, shall be released
from the lien and all of the provisions of this Indenture when the Trustee shall
have (i) in the case of the purchase of a Contract, deposited in the Collection
Account all amounts received pursuant to Section 5.03 of the Contribution and
Servicing Agreement, (ii) in the case of a Substitute Contract, received a fully
executed original of the Substitute Contract Transfer Form and the Contract File
with respect to such Substitute Contract plus any cash amount delivered as
provided in Section 7.01(d) of the Contribution and Servicing Agreement, (iii)
received written certification from an Authorized Officer of the Servicer that
there are no unreimbursed Servicer Advances with respect to such Contract and
(iv) delivered to the Contributor acknowledgment of its receipt of the related
Contract Files. If there are such unreimbursed amounts, any proceeds received
with respect to such Predecessor Contract or repurchased Contract, as
applicable, and the interest in the related Equipment shall be applied hereunder
only to the extent necessary to repay such Servicer Advances (and clause (iii)
of the foregoing sentence shall be deemed satisfied) and to reimburse the
Collection Account for any other amounts drawn thereon and the balance of such
proceeds, if any, shall be paid to, or as directed by, the Contributor.

          In connection with the substitution of a Contract, if the Discounted
Contract Balance of such Substitute Contract is less than the Discounted
Contract Balance of the Predecessor Contract, the Contributor shall, on the date
of substitution, deposit an amount equal to such difference into the Collection
Account.

          SECTION 4.04 RELEASE OF CONTRACTS AND EQUIPMENT UPON FINAL CONTRACT
PAYMENT.

          (a) In the event that the Trustee shall have received written
certification from an Authorized Officer of the Servicer that the Trustee has
received from amounts paid by the Obligor or from the proceeds of the Equipment
subject to any Contract (i) the final Contract Payment due and

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<PAGE>

payable under any Contract or (ii) a Prepayment Amount in respect of any
Contract and, following such final Contract Payment or Prepayment Amount, no
other payments (other than any Excluded Amounts, Purchase Option Payment and any
other payments under such Contract not included in the determination of
Discounted Contract Balance for such Contract as set forth in the related
Contract Schedule) on, or in respect of, such Contract are or will be due and
payable, such Contract and the Equipment subject thereto shall be released from
the lien of this Indenture except if a Restricting Event or an Amortization
Event shall have occurred and then be continuing.

          (b) If a Restricting Event or Amortization Event shall have occurred
and then be continuing, then each Contract and the security interest in all
Equipment (except for security interests relating to Equipment subject to a
conditional sales agreement or an equipment note) which would otherwise be
released from the lien of this Indenture pursuant to this Section 4.04 shall
instead remain subject to such lien and all of the provisions of this Indenture,
including, without limitation, Article VI hereof; PROVIDED, HOWEVER, unless an
Indenture Event of Default has occurred and is continuing, in the event that the
Trustee shall have received written confirmation from an Authorized Officer of
the Servicer that the Servicer has received notification from an Obligor under
any Contract (other than a Delinquent Contract) that the Obligor intends to
exercise its purchase option or perform its purchase obligation, as the case may
be, under a Contract, such Contract and the Equipment subject thereto shall be
released from the Lien of this Indenture.

          SECTION 4.05 EXECUTION OF DOCUMENTS.

          The Trustee shall promptly execute and deliver such documents (which
shall be furnished to the Trustee by the Issuer) and take such other actions as
the Issuer, by Issuer Request, may reasonably request to fully effectuate (i)
the release from this Indenture of any Contract, the security interest relating
to Equipment required to be so released pursuant to Sections 4.03 and 4.04
hereof and all interest in any income, payments and proceeds of any of the
foregoing or relating thereto accruing after the effective date of such release
and (ii) the transfer to the Transferor (or its assignee) of any Contract
related to Equipment required to be released pursuant to Sections 4.03 and 4.04
hereof.

          SECTION 4.06 ADJUSTMENTS TO DEFINITION OF TRUST PROPERTY.

          Upon the occurrence of any release pursuant to Section 4.03 or Section
4.04 hereof, the definition of "TRUST PROPERTY" will be automatically amended to
exclude all right, title and interest of the Trustee in (a) any Contract which
has been released from the lien of the Indenture, (b) the Equipment related to
such Contract, and (c) all income, payments and proceeds of any of the foregoing
or relating thereto accruing after the effective date of such release (although
such amounts shall remain subject to the repayment and reinvestment requirements
of Section 4.03 of this Indenture).

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<PAGE>

                                    ARTICLE V

                 SERVICER EVENTS OF DEFAULT; SUBSTITUTE SERVICER

          SECTION 5.01 SERVICER EVENTS OF DEFAULT.

          If a Servicer Event of Default shall have occurred and be continuing
under Section 10.01 of the Contribution and Servicing Agreement, the Trustee
shall, upon the written request of Noteholders evidencing not less than 66 2/3%
of the Voting Rights give written notice to the Servicer of the termination of
all of the rights and obligations of the Servicer (but none of the Contributor's
obligations thereunder, which shall survive any such termination) under the
Contribution and Servicing Agreement and the Trustee shall act as successor
Servicer in accordance with Section 10 of the Contribution and Servicing
Agreement.

          SECTION 5.02 SUBSTITUTE SERVICER.

          Notwithstanding the provisions of Section 5.01, the Trustee may, if it
shall be unwilling or unable to act as the Successor Servicer in accordance with
Section 5.01, appoint a Successor Servicer in accordance with the provisions of
Section 10.03 of the Contribution and Servicing Agreement.

          SECTION 5.03 NOTIFICATION TO NOTEHOLDERS, THE SWAP PROVIDERS AND
RATING AGENCIES.

          Upon any termination of the Servicer or appointment of a Successor
Servicer, the Trustee shall give prompt notice of such termination, resignation,
discharge, removal or appointment, together with the conditions of default, if
applicable, to the Rating Agencies, the Swap Providers and each Noteholder in
the manner provided herein.

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<PAGE>

                                   ARTICLE VI

                           EVENTS OF DEFAULT; REMEDIES

          SECTION 6.01 EVENTS OF DEFAULT.

          "INDENTURE EVENT OF DEFAULT," wherever used herein, means any one of
the following (whatever the reason for such Indenture Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

               (i) default in the payment of (A) any interest payment on any
     outstanding Class A Note, Class B Note, Class C Note, Class D Note or Class
     E Note when it becomes due and payable, or (B) the then outstanding
     principal balance of the Class A-1 Notes on the Class A-1 Stated Maturity
     Date, of the Class A-2a Note on the Class A-2a Stated Maturity Date, of the
     Class A-2b Note on the Class A-2b Stated Maturity Date, of the Class A-3a
     Note on the Class A-3a Stated Maturity Date, of the Class A-3b Note on the
     Class A-3b Stated Maturity Date, of the Class B Notes on the Class B Stated
     Maturity Date, of the Class C Notes on the Class C Stated Maturity Date, of
     the Class D Notes on the Class D Stated Maturity Date or of the Class E
     Note on the Class E Stated Maturity date or (C) any payment of principal of
     or interest on any outstanding Note when it becomes due and payable to the
     extent that sufficient Available Funds were on deposit in the Collection
     Account and to the extent that sufficient Available Reserve Account Funds
     are on deposit in the Reserve Account with respect to such Payment Date;

               (ii) default in the performance, or breach, of any covenant set
     forth in Section 8.04, 8.07(c) or 8.08;

               (iii) default in the performance, or breach, of any covenant of
     the Issuer in the Notes or this Indenture (other than a covenant described
     in (ii) above), or of any DVI Party to the Contribution and Servicing
     Agreement, or the other Transaction Documents and continuance of such
     default or breach for a period of 30 days after the earliest of (A) any
     officer of the Transferor or the Issuer first acquiring knowledge thereof,
     (B) the Trustee's giving written notice thereof to the Issuer or (C) the
     holder of any Note giving written notice thereof to the Issuer;

               (iv) if any representation or warranty of the Issuer, the
     Transferor or the Contributor made in this Indenture, the SCTA or the
     Contribution and Servicing Agreement, respectively, or any other writing
     provided to the Noteholders in connection with the foregoing documents
     shall prove to be incorrect in any material respect as of the time when the
     same shall have been made; PROVIDED, HOWEVER, that the breach of any
     representation or warranty made by the Contributor in Section 2.03 or 2.04
     of the Contribution and Servicing Agreement, with respect to any of the
     Contracts or the interest in the Equipment subject thereto shall not

                                       43
<PAGE>

     constitute an Indenture Event of Default if the Contributor substitutes one
     or more Substitute Contracts and the interest in the Equipment subject
     thereto for such Contract and an interest in the related Equipment in
     accordance with Section 7.01 of the Contribution and Servicing Agreement,
     or repurchases a Contract and the interest in the related Equipment in
     accordance with Section 5.03 of the Contribution and Servicing Agreement;

               (v) the entry by a court having jurisdiction in the premises of
     (A) a decree or order for relief in respect of the Issuer in an involuntary
     case or proceeding under any applicable federal or state bankruptcy,
     insolvency, reorganization, or other similar law or (B) a decree or order
     adjudging the Issuer a bankrupt or insolvent, or approving as properly
     filed a petition seeking reorganization, arrangement, adjustment, or
     composition of or in respect of the Issuer under any applicable federal or
     state law, or appointing a custodian, receiver, liquidator, assignee,
     trustee, sequestrator, or other similar official of the Issuer or of any
     substantial part of its property, or ordering the winding up or liquidation
     of its affairs, and the continuance of any such decree or order for relief
     or any such other decree or order unstayed and in effect for a period of 90
     consecutive days; or

               (vi) the commencement by the Issuer of a voluntary case or
     proceeding under any applicable federal or state bankruptcy, insolvency,
     reorganization, or other similar law or of any other case or proceeding to
     be adjudicated a bankrupt or insolvent, or the consent by it to the entry
     of a decree or order for relief in respect of the Issuer in an involuntary
     case or proceeding under any applicable federal or state bankruptcy,
     insolvency, reorganization, or other similar law or to the commencement of
     any bankruptcy or insolvency case or proceeding against it, or the filing
     by it of a petition or answer or consent seeking reorganization or relief
     under any applicable federal or state law, or the consent by it to the
     filing of such petition or to the appointment of or taking possession by a
     custodian, receiver, liquidator, assignee, trustee, sequestrator, or
     similar official of the Issuer or of any substantial part of its property,
     or the making by it of an assignment for the benefit of creditors, or the
     Issuer's failure to pay its debts generally as they become due, or the
     taking of company action by the Issuer in furtherance of any such action.

          SECTION 6.02 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

          (a) If an Indenture Event of Default occurs and is continuing, of
which a Responsible Officer of the Issuer has received written notice (PROVIDED
that such written notice need not have been received by the Trustee in
connection with a payment default as described in Section 6.01(i)), then and in
every such case the Trustee with the consent of Noteholders evidencing not less
than 662/3% of the Voting Rights may declare the unpaid principal amount of all
the Notes to be due and payable immediately, by a notice in writing to the
Issuer, and upon any such declaration such principal amount shall become
immediately due and payable together with all accrued and unpaid interest
thereon, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Issuer.

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<PAGE>

          (b) At any time after such a declaration of acceleration has been made
and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter provided in this Article, Noteholders evidencing
not less than 662/3% of the Voting Rights, by written notice to the Issuer and
the Trustee, may rescind and annul such declaration and its consequences if:

               (i) the Issuer has paid or deposited with the Trustee a sum
     sufficient to pay:

                    (A) all sums paid or advanced, together with interest
          thereon, by the Trustee hereunder and the reasonable compensation,
          expenses, disbursements, and advances, if any, of the Trustee, its
          agents and counsel;

                    (B) all principal of any Notes which have become due
          otherwise than by such declaration of acceleration, and interest
          thereon from the date when the same first became due at the applicable
          Note Rate; and

                    (C) all interest which has become due with respect to the
          Notes;

               (ii) all Indenture Events of Default, other than the non-payment
     of the aggregate principal amount of the Notes which has become due solely
     by such declaration of acceleration, have been cured or waived as provided
     in Section 6.13; and

               (iii) the rescission would not conflict with any judgment or
     decree of a court of competent jurisdiction.

No such rescission shall affect any subsequent Indenture Event of Default or
impair any right consequent thereon.

          SECTION 6.03 OTHER REMEDIES.

          (a) If an Indenture Event of Default occurs and is continuing of which
a Responsible Officer of the Trustee has received written notice (PROVIDED that
such written notice need not have been received by the Trustee in the case of a
payment default as described in Section 6.01(i)), the Trustee shall give notice
to each Noteholder and each Swap Provider as set forth in Section 7.02. The
Trustee shall then take such action, if any, as may be directed by Noteholders
evidencing not less than 662/3% of the Voting Rights.

          (b) Following any acceleration of the Notes, the Trustee shall have
all of the rights, powers and remedies with respect to the Trust Property as are
available to secured parties under the Uniform Commercial Code or other
applicable law or as are otherwise available to it under applicable law to
protect and enforce the rights and remedies of the Trustee, the Swap Providers
and the Noteholders hereunder and under the other Transaction Documents;
PROVIDED that, so long as the Offered Notes are outstanding, the Trustee, in
acting during the pendency of an Indenture Event of Default shall act solely on
behalf of the holders of the Offered Notes and the Swap Providers and shall

                                       45
<PAGE>

not take into account any Class F Instruments that may have been issued in so
acting. Such rights, powers and remedies may be exercised by the Trustee in its
own name as trustee of an express trust.

          SECTION 6.04 TRUSTEE MAY FILE PROOFS OF CLAIM.

          (a) In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition,
or other judicial proceeding relative to the Issuer, the Transferor, the
Contributor, the Servicer or any other obligor upon the Notes or the other
obligations secured hereby or relating to the property of the Issuer, the
Transferor, the Contributor, the Servicer or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Notes shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Issuer,
the Transferor, the Contributor or the Servicer for the payment of overdue
principal or overdue interest or any such other obligation) shall be entitled
and empowered, by intervention in such proceeding or otherwise:

               (i) to file and prove a claim for the whole amount of principal
     and interest owing and unpaid in respect of the Notes and any other
     obligation secured hereby and to file such other papers or documents as may
     be necessary or advisable in order to have the claims of the Trustee
     (including any claim for the reasonable compensation, expenses,
     disbursements and advances of the Trustee, its agents and counsel), of the
     Swap Providers and of the Noteholders allowed in such judicial proceeding;

               (ii) to collect and receive any moneys or other property payable
     or deliverable on any such claims and to distribute the same;

               (iii) unless prohibited by applicable law and regulations, to
     vote on behalf of the Noteholders and the Swap Providers in any election of
     a trustee, a standby trustee or Person performing similar functions in any
     such proceedings; and

               (iv) to file such proofs of claim and other papers or documents
     as may be necessary or advisable in order to have the claims of the
     Trustee, the Swap Providers or the Noteholders allowed in any proceedings
     relative to the Issuer, its creditors and its property;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator, or
other similar official in any such judicial proceeding is hereby authorized by
each Noteholder and each Swap Provider to make such payments to the Trustee and,
in the event that the Trustee shall consent to the making of such payments
directly to the Noteholders and/or the Swap Providers to pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.06.

          (b) Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Noteholder or any
Swap Provider any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any holder

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<PAGE>

thereof or to authorize the Trustee to vote in respect of the claim of any
Noteholder or any Swap Provider in any such proceeding, except as aforesaid to
vote for the election of a trustee in bankruptcy or similar Person.

          SECTION 6.05 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF NOTES.

          All rights of action and claims under this Indenture or the Notes may
be prosecuted and enforced by the Trustee without the possession of any of the
Notes or the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the holders
of the Notes in respect of which such judgment has been recovered.

          SECTION 6.06 APPLICATION OF MONEY COLLECTED.

          Any money, securities or property collected by the Trustee pursuant to
this Article, and any moneys, securities or property that may then be held or
thereafter received by the Trustee, shall be applied in the following order, at
the date or dates fixed by the Trustee and, in case of the distribution of the
entire amount due on account of principal or interest, upon presentation of the
Notes and surrender thereof:

          FIRST, to the payment of all costs and expenses of collection incurred
          by the Trustee (including the reasonable fees and expenses of any
          counsel to the Trustee) and all other amounts due the Trustee under
          Section 7.06 (the parties hereto agree that when the Trustee renders
          services following an Indenture Event of Default under Section 6.01
          (v) or (vi), compensation for such services and expenses in connection
          therewith are intended to constitute administrative expenses under
          applicable bankruptcy law);

          SECOND, to the payment of all unreimbursed Servicer Advances due to
          the Servicer;

          THIRD, only in the event that DVI is no longer the Servicer, and the
          Servicer has, in its good faith and reasonable business judgment,
          deemed the Servicing Fee to be commercially unreasonable, then, to the
          Servicer, the amount agreed upon between the then Servicer and the
          Trustee, each in their good faith and commercially reasonable
          judgment, as necessary to make the Servicing Fee commercially
          reasonable and to cover the reasonable costs in transferring the
          servicing obligations;

          FOURTH, PRO RATA and PARI PASSU, to the payment of all accrued and
          unpaid Net Swap Payments (including interest on overdue Net Swap
          Payments), if any, to the Swap Providers;

          FIFTH, PARI PASSU AND PRO RATA, to the payment of all accrued and
          unpaid interest on the

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<PAGE>

          outstanding Class A Note Balance to the date of payment thereof,
          ratably to each Class A Noteholder, without preference or priority of
          any kind and to the payment of all accrued and unpaid swap termination
          payments to the Swap Providers under the Swap Agreement;

          SIXTH, to the payment of all accrued and unpaid interest on the
          outstanding Class B Note Balance to the date of payment thereof,
          ratably to each Class B Noteholder, without preference or priority of
          any kind;

          SEVENTH, to the payment of all accrued and unpaid interest on the
          outstanding Class C Note Balance to the date of payment thereof,
          ratably to each Class C Noteholder, without preference or priority of
          any kind;

          EIGHTH, to the payment of all accrued and unpaid interest on the
          outstanding Class D Note Balance to the date of payment thereof,
          ratably to each Class D Noteholder, without preference or priority of
          any kind;

          NINTH, to the payment of all accrued and unpaid interest on the
          outstanding Class E Note Balance to the date of payment thereof,
          ratably to each Class E Noteholder, without preference or priority of
          any kind;

          TENTH, to the payment of the outstanding Class A-1 Note Balance, and
          any other amounts due to the Class A-1 Noteholders, ratably, without
          preference or priority of any kind, until the Class A-1 Note Balance
          has been reduced to zero, then, PRO RATA and PARI PASSU, to the
          payment of the outstanding Class A-2a Note Balance and Class A-2b Note
          Balance, and any other amounts due to the Class A-2a Noteholders and
          Class A-2b Noteholders, ratably, without preference or priority of any
          kind, until the Class A-2a Note Balance and the Class A-2b Note
          Balance have been reduced to zero, then, PRO RATA and PARI PASSU, to
          the payment of the outstanding Class A-3a Note Balance and Class A-3b
          Note Balance, and any other amounts due to the Class A-3a Noteholders
          and the Class A-3b Noteholders, ratably, without preference or
          priority of any kind, until the Class A-3a Note Balance and the Class
          A-3b Note Balance have been reduced to zero;

          ELEVENTH, PRO RATA and PARI PASSU, to the payment of the outstanding
          Class B Note Balance, and any other amounts due to the Class B
          Noteholders ratably, without preference or priority of any kind;

          TWELFTH, to the payment of the outstanding Class C Note Balance, and
          any other amounts due to the Class C Noteholders ratably, without
          preference or priority of any kind;

          THIRTEENTH, to the payment of the outstanding Class D Note Balance,
          and any other

                                       48
<PAGE>

          amounts due to the Class D Noteholders ratably, without preference or
          priority of any kind;

          FOURTEENTH, to the payment of the outstanding Class E Note Balance,
          and any other amounts due to the Class E Noteholders ratably, without
          preference or priority of any kind;

          FIFTEENTH, to the payment of all accrued and unpaid interest on
          outstanding Class F Instruments, if any, to the date of payment
          thereof, ratably to each Holder of the Class F Instruments without
          preference or priority of any kind;

          SIXTEENTH, to the payment of the outstanding principal balance of the
          Class F Instruments, if any, and any other amounts due to the Holders
          of any Class F Instruments ratably, without preference or priority of
          any kind;

          SEVENTEENTH, in the event that DVI is the Servicer, to the payment of
          all unreimbursed Servicing Fees due to the Servicer; and

          EIGHTEENTH, to the payment of the remainder, if any, to, or at the
          order of, the Issuer.

          SECTION 6.07 LIMITATION ON SUITS.

          Neither the holder of any Note nor any Swap Provider shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture or the Notes, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless:

               (i) such Noteholder or Swap Provider has previously given written
     notice to the Trustee of a continuing Indenture Event of Default;

               (ii) the Noteholders evidencing not less than 25% of the Voting
     Rights shall have made written request to the Trustee to institute
     proceedings in respect of such Indenture Event of Default in its own name
     as Trustee hereunder;

               (iii) such Noteholder(s) or Swap Providers has offered to the
     Trustee adequate indemnity against the costs, expenses and liabilities to
     be incurred in compliance with such request;

               (iv) the Trustee for 30 days after its receipt of such notice,
     request and offer of indemnity has failed to institute any such proceeding;
     and

               (v) so long as any of the Notes remain outstanding, no direction
     inconsistent with such written request has been given to the Trustee during
     such 30-day period by Noteholders evidencing not less than 662/3% of the
     Voting Rights;

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<PAGE>

it being understood and intended that no one or more Noteholders or the Swap
Providers shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb, or prejudice
the rights of any other Noteholder or the Swap Providers, or to obtain or to
seek to obtain priority or preference over any other Noteholder or the Swap
Providers or to enforce any right under this Indenture, except in the manner
herein provided. It is further understood and intended that so long as any
portion of the Notes remains outstanding, the Servicer shall not have any right
to institute any proceeding, judicial or otherwise, with respect to this
Indenture (other than for the enforcement of Sections 3.04(b) and 4.04) or for
the appointment of a receiver or trustee, or for any other remedy hereunder.

          SECTION 6.08 UNCONDITIONAL RIGHT OF NOTEHOLDERS TO RECEIVE PAYMENT.

          Notwithstanding any other provision in this Indenture, other than the
provisions hereof establishing priorities of payment or limiting the right to
recover amounts due on the Notes to recoveries from the Trust Property, the
holder of any Note shall have the absolute and unconditional right to receive
payment of the principal of and interest on such Note as such principal and
interest becomes due on the Payment Dates for such payments, including the
Stated Maturity Date for the applicable Class, and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Noteholder.

          SECTION 6.09 RESTORATION OF RIGHTS AND REMEDIES.

          If the Trustee or any Noteholder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Noteholder, then and in every such case, subject to any
determination in such proceeding, the Issuer, the Trustee and the Noteholders
shall be restored severally and respectively to their former positions hereunder
and thereafter all rights and remedies of the Trustee and the Noteholders shall
continue as though no such proceeding had been instituted.

          SECTION 6.10. RIGHTS AND REMEDIES CUMULATIVE.

          Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost, or stolen Notes in the last paragraph of
Section 2.05, no right or remedy herein conferred upon or reserved to the
Trustee or to the Noteholders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

                                       50
<PAGE>

          SECTION 6.11 DELAY OR OMISSION NOT WAIVER.

          No delay or omission of the Trustee or of any holder of any Note to
exercise any right or remedy accruing upon any Indenture Event of Default shall
impair any such right or remedy or constitute a waiver of any such Indenture
Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Noteholders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee or by
the Noteholders, as the case may be.

          SECTION 6.12 CONTROL BY NOTEHOLDERS.

          Except as may otherwise be provided in this Indenture, until such time
as the conditions specified in Section 11.01 have been satisfied in full,
Noteholders evidencing not less than 662/3% of the Voting Rights shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee. Notwithstanding the foregoing:

               (i) no such direction shall be in conflict with any rule of law
     or with this Indenture;

               (ii) the Trustee shall not be required to follow any such
     direction which the Trustee believes may be unduly prejudicial to the
     rights of another Noteholder not joining in such direction or which the
     Trustee believes might result in any personal liability on the part of the
     Trustee for which the Trustee is not indemnified to its reasonable
     satisfaction; and

               (iii) the Trustee may take any other action deemed proper by the
     Trustee which is not inconsistent with any such direction; PROVIDED that
     the Trustee shall give notice of any such action to each Noteholder.

          SECTION 6.13 WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.

          (a) Subject to the provisions of Sections 6.08 and 9.01, Noteholders
evidencing more than 50% of the Voting Rights, may, by one or more instruments
in writing, waive an existing Default or Indenture Event of Default hereunder
and its consequences, except a continuing Indenture Event of Default:

               (i) in respect of the payment of the principal of or interest on
     any outstanding Note (which may only be waived by the holder of such Note),
     or

               (ii) in respect of a covenant or provision hereof which under
     Article IX cannot be modified or amended without the consent of the holder
     of each outstanding Note affected (which only may be waived by the holders
     of all outstanding Notes affected).

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<PAGE>

          (b) A copy of each waiver pursuant to Section 6.13(a) shall be
furnished by the Issuer to the Trustee. Upon any such waiver, such Indenture
Event of Default shall cease to exist and shall be deemed to have been cured,
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Indenture Event of Default or impair any right consequent
thereon.

          SECTION 6.14 WAIVER OF STAY OR EXTENSION LAWS.

          The Issuer covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

          SECTION 6.15 SALE OF TRUST PROPERTY.

          (a) The power to effect any sale of any portion of the Trust Property
pursuant to Section 6.03 shall not be exhausted by any one or more sales as to
any portion of the Trust Property remaining unsold, but shall continue
unimpaired until the entire Trust Property shall have been sold or all amounts
payable on the Notes shall have been paid. The Trustee may from time to time,
upon directions in accordance with Section 6.12, postpone any public sale by
public announcement made at the time and place of such sale.

          (b) To the extent permitted by applicable law, the Trustee shall not
in any private sale sell the Trust Property, or any portion thereof, unless
either (i) until such time as the conditions specified in Section 11.01(a) have
been satisfied in full, Noteholders evidencing not less than 662/3% of the
Voting Rights consent to or direct the Trustee to make such sale; or (ii) the
proceeds of such sale would be not less than the sum of all amounts due to the
Trustee hereunder and the entire unpaid principal amount of all Class A Notes,
Class B Notes, Class C Notes, Class D Notes and Class E Notes then outstanding
and interest due or to become due thereon in accordance with Section 6.06 on the
Payment Date next succeeding the date of such sale.

          (c) In connection with a sale of all or any portion of the Trust
Property:

               (i) any one or more Noteholders or the Trustee may bid for and
     purchase the property offered for sale, and upon compliance with the terms
     of sale may hold, retain, and possess and dispose of such property, without
     further accountability, and any Noteholder may, in paying the purchase
     money therefor, deliver in lieu of cash any outstanding Notes or claims for
     interest thereon for credit in the amount that shall, upon distribution of
     the net proceeds of such sale, be payable thereon, and such Notes, in case
     the amounts so payable thereon shall be less than the amount due thereon,
     shall be returned to the Noteholders after being appropriately stamped to
     show such partial payment;

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               (ii) the Trustee shall execute and deliver an appropriate
     instrument of conveyance transferring its interest in any portion of the
     Trust Property in connection with a sale thereof;

               (iii) the Trustee is hereby irrevocably appointed the agent and
     attorney-in- fact of the Issuer to transfer and convey its interest in any
     portion of the Trust Property in connection with a sale thereof, and to
     take all action necessary to effect such sale; and

               (iv) no purchaser or transferee at such a sale shall be bound to
     ascertain the Trustee's authority, inquire into the satisfaction of any
     conditions precedent or see to the application of any moneys.

          (d) The method, manner, time, place and terms of any sale of all or
any portion of the Trust Property shall be commercially reasonable.

          (e) The provisions of this Section 6.15 shall not be construed to
restrict the ability of the Trustee to exercise any rights and powers against
the Issuer or the Trust Property that are vested in the Trustee by this
Indenture, including, without limitation, the power of the Trustee to proceed
against the collateral subject to the lien of this Indenture and to institute
judicial proceedings for the collection of any deficiency remaining thereafter.

          SECTION 6.16 UNDERTAKING FOR COSTS.

          In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court may in its discretion require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.16 does not apply to a suit by the Trustee, a suit by a
Noteholder pursuant to Sections 6.07 and 6.08, or a suit by any Noteholder or
group of Noteholders of more than 10% in principal amount of all Class A Notes,
Class B Notes, Class C Notes, Class D Notes and Class E Notes then outstanding.

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                                   ARTICLE VII

                                   THE TRUSTEE

          SECTION 7.01 CERTAIN DUTIES AND RESPONSIBILITIES.

          (a) Except during the continuance of an Indenture Event of Default:

               (i) the Trustee undertakes to perform only those duties that are
     specifically set forth in this Indenture and no others and no covenants or
     duties shall be implied herein in connection with the Trustee; and

               (ii) in the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates, statements, opinions,
     reports or documents furnished to the Trustee and conforming to the
     requirements of this Indenture. The Trustee, however, shall examine the
     same to determine whether or not they conform to the requirements of this
     Indenture.

          (b) If an Indenture Event of Default has occurred and is continuing,
the Trustee shall exercise its rights and powers vested in it by this Indenture
and use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of his own affairs.

          (c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, EXCEPT that:

               (i) this subsection shall not be construed to limit the effect of
     subsection (a) of this Section 7.01;

               (ii) the Trustee shall not be liable for any error in judgment
     made in good faith by a Responsible Officer, unless it is proved that the
     Trustee was negligent in ascertaining the pertinent facts;

               (iii) the Trustee shall not be liable with respect to any action
     taken or omitted to be taken by it in good faith in accordance with the
     directions received by it pursuant to Section 6.12 or 6.13; and

               (iv) no provision of this Indenture shall require the Trustee to
     expend or risk its own funds or otherwise incur any personal financial
     liability in the performance of any of its duties hereunder, or in the
     exercise of any of its rights or powers, if it shall have reasonable
     grounds for believing that repayment of such funds or indemnity reasonably
     satisfactory to it against such risk or liability is not assured to it.

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          (d) Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section.

          SECTION 7.02 NOTICE OF DEFAULTS OR EVENTS OF DEFAULT.

          Within five Business Days after a Responsible Officer receives written
notice or is otherwise notified of the occurrence of any Default or Indenture
Event of Default hereunder or Servicer Event of Default under the Contribution
and Servicing Agreement, the Trustee shall transmit by certified mail return
receipt requested, hand delivery or overnight courier, to all Noteholders, as
their names and addresses appear in the Note Register, the Issuer, the Servicer,
the Swap Providers, the Rating Agencies and the Contributor notice of such
Default, Indenture Event of Default or Servicer Event of Default hereunder known
to the Trustee, unless such Default, Indenture Event of Default or Servicer
Event of Default shall have been cured or waived.

          SECTION 7.03 CERTAIN RIGHTS OF TRUSTEE.

          Subject to the provisions of Section 7.01:

               (i) the Trustee may rely conclusively and shall be protected in
     acting or refraining from acting upon any resolution, certificate,
     statement, instrument, opinion, report, notice, request, direction,
     consent, order, note, debenture, other evidence of indebtedness or other
     paper or document believed by it to be genuine and to have been signed or
     presented by the proper party or parties;

               (ii) any request or direction of the Issuer mentioned herein
     shall be sufficiently evidenced by an Issuer Request or Issuer Order and
     any action of the Issuer may be sufficiently evidenced by an Issuer Order;

               (iii) whenever in the administration of this Indenture the
     Trustee shall deem it desirable that a matter be proved or established
     prior to taking, suffering or omitting any action hereunder, the Trustee
     (unless other evidence be herein specifically prescribed) may, in the
     absence of bad faith on its part, rely upon an Officer's Certificate;

               (iv) the Trustee may consult with counsel as to legal matters and
     the advice or opinion of any such counsel selected by the Trustee with due
     care shall be full and complete authorization and protection in respect of
     any action taken, suffered or omitted by it hereunder in good faith and in
     reliance thereon;

               (v) the Trustee shall be under no obligation to exercise any of
     the rights or powers vested in it by this Indenture at the request or
     direction of any of the Noteholders or the Swap Providers pursuant to this
     Indenture, unless such Noteholders and the Swap Providers shall have
     offered to the Trustee security or indemnity reasonably satisfactory to it
     against the

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<PAGE>

     costs, expenses and liabilities which might be incurred by it in compliance
     with such request or direction;

               (vi) prior to the occurrence of an Indenture Event of Default and
     after the curing or waiving of all Indenture Events of Default, the Trustee
     shall not be bound to make any investigation into the facts or matters
     stated in any resolution, certificate, statement, instrument, opinion,
     report, notice, request, direction, consent, order, note, debenture, other
     evidence of indebtedness, or other paper or document, other than to examine
     such documents to determine whether they conform as to form to the
     requirements of this Indenture, unless requested in writing to do so by the
     Noteholders evidencing more than 50% of the Voting Rights; PROVIDED that,
     if the payment within a reasonable time to the Trustee of the costs,
     expenses or liabilities likely to be incurred by it in the making of such
     investigation is, in the opinion of the Trustee, not reasonably assured to
     the Trustee by the security afforded to it by the terms of this Indenture,
     the Trustee may require indemnity reasonably satisfactory to it against
     such expenses or liabilities as a condition to proceeding; the reasonable
     expenses of every such examination shall be paid by the Issuer or, if paid
     by the Trustee or any predecessor trustee, shall be promptly repaid by the
     Issuer upon demand; and

               (vii) the Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     agents, custodians, nominees or attorneys and the Trustee shall not be
     responsible for any misconduct or negligence on the part of any agent,
     custodian, nominee or attorney appointed with due care by it hereunder.

          SECTION 7.04 TRUSTEE'S DISCLAIMER.

          The Trustee makes no representation as to the validity or adequacy of
this Indenture (except as against itself), the SCTA, the Contribution and
Servicing Agreement, or the Notes and it shall not be responsible for any
statement in the Notes other than its certificate of authentication or in any
document used in the sale of the Notes. The Trustee shall have no responsibility
for, or duty, or liability in connection with performance by the Servicer, and
shall have no obligation to monitor the performance of the Servicer. The Trustee
shall not be accountable for the use or application by the Issuer of the Notes
or the proceeds thereof.

          SECTION 7.05 MONEY HELD IN TRUST.

          Money and investments held by the Trustee or other paying agent shall
be held in trust in one or more Eligible Deposit Accounts as required hereunder.
The Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with Issuer.

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          SECTION 7.06 COMPENSATION, REIMBURSEMENT, ETC.

          (a) Pursuant to the Contribution and Servicing Agreement, the Servicer
has agreed:

               (i) to pay to the Trustee from time to time such compensation for
     all services rendered by it hereunder as the Servicer and the Trustee have
     agreed in writing prior to the Closing Date (which compensation shall not
     be limited by any provision of law in regard to the compensation of a
     trustee of an express trust), such payment to be made independent of the
     other payment obligations of the Servicer hereunder; PROVIDED that, if a
     Servicer Event of Default has occurred and is continuing under Section
     10.01 of the Contribution and Servicing Agreement and the Servicer is no
     longer DVI, then the Trustee shall be compensated, for all services
     rendered by it hereunder, on each Payment Date, from Available Funds on
     deposit in the Collection Account, an amount equal to the sum of the
     Servicing Fee and the Trustee Fee, such fees to be paid PARI PASSU;

               (ii) except as otherwise expressly provided herein, to reimburse
     the Trustee upon its request for all reasonable expenses, disbursements,
     and advances incurred or made by the Trustee in accordance with any
     provision of this Indenture (including the reasonable compensation and the
     expenses and disbursements of its agents and counsel), except any such
     expense, disbursement, or advance as may be attributable to its negligence
     or bad faith;

               (iii) to pay the Trustee its annual administrative fee on the
     Closing Date;

               (iv) to pay the reasonable fees and expenses of Trustee's counsel
     on the Closing Date; and

               (v) to pay the reasonable annual administrative fee of each
     Lock-Box Bank.

          (b) The Trustee hereby acknowledges and agrees that if the Servicer
fails to pay the amounts set forth in Section 7.06(a) of this Indenture, the
Trustee will continue to perform its obligations under this Indenture,
regardless of the Servicer's failure to pay such amounts, until the appointment
of a successor Trustee reasonably satisfactory to the Noteholders in accordance
with Section 7.08 of this Indenture; PROVIDED, HOWEVER, that in such event, the
Trustee shall withhold amounts otherwise payable to it pursuant to Section
7.06(a) hereof from amounts payable to the Servicer pursuant to Section
3.04(b)(i).

          SECTION 7.07 ELIGIBILITY; DISQUALIFICATION.

          The Trustee hereunder (a) shall at all times be a national banking
association organized and doing business under the laws of the United States of
America or any state thereof authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $100,000,000 or
shall be a member of a bank holding system, the aggregate combined capital and

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surplus of which is at least $100,000,000, PROVIDED that unless the Trustee is
U.S. Bank National Association (as successor to U.S. Bank Trust National
Association), the Trustee, or the bank holding company system of which the
Trustee is a member must have a long-term unsecured debt rating of at least "A"
from the Rating Agencies; PROVIDED, FURTHER, that if the Trustee is U.S. Bank
National Association (as successor to U.S. Bank Trust National Association), the
Trustee, or the bank holding company system of which the Trustee is a member,
shall have a long-term unsecured debt rating of at least "Baa3" from Moody's or
"BBB" from Fitch, Inc. or a short-term unsecured rating of "Prime-3" from
"Moody's" or "F1" from Fitch, Inc., and (b) shall be subject to supervision or
examination by Federal or state authority and, in the case of any successor
Trustee subject to regulations regarding fiduciary funds on deposit
substantially similar to 12 CFR ss. 9.10(b). If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purpose of
this Section 7.07, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trustee shall cease to
be eligible in accordance with the provisions of this Section 7.07, the Trustee
shall resign immediately in the manner and with the effect specified in Section
7.08.

          SECTION 7.08 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

          (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by a successor Trustee reasonably satisfactory to the
Swap Providers and the Noteholders evidencing more than 50% of the Voting Rights
under Section 7.09.

          (b) Subject to Section 7.08(a) the Trustee may resign at any time by
giving written notice thereof to the Issuer and by mailing notice of resignation
by first-class mail, postage prepaid, to the Rating Agencies, the Swap Providers
and the Noteholders at their addresses appearing on the Note Register.

          (c) The Trustee may be removed at any time by written notice from
Noteholders evidencing more than 50% of the Voting Rights delivered to the
Trustee and the Issuer. The Issuer, with the consent of Noteholders evidencing
more than 50% of the Voting Rights, may remove the Trustee if:

               (i) the Trustee fails to comply with Section 7.07;

               (ii) the Trustee is adjudged bankrupt or insolvent;

               (iii) a receiver or other public officer takes charge of the
     Trustee or its property; or

               (iv) the Trustee becomes incapable of acting.

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<PAGE>

          (d) If the Trustee shall resign, be removed, or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Issuer, with the consent of Noteholders evidencing more than 50% of the Voting
Rights by an act of the Issuer, shall promptly appoint a successor Trustee.

          (e) If no successor Trustee shall have been so appointed by the Issuer
as hereinabove provided and accepted appointment in the manner hereinafter
provided within 30 days after any such resignation or removal, existence of
incapability, or occurrence of such vacancy, the Trustee or any Noteholder may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

          (f) The Issuer shall give notice of each resignation and each removal
of the Trustee and each appointment of a successor Trustee by mailing written
notice of such event by first-class mail, postage prepaid, to all Noteholders,
as their names and addresses appear in the Note Register, the Swap Providers and
to the Rating Agencies. Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office.

          (g) A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein.

          SECTION 7.09 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

          (a) Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Issuer and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; PROVIDED that on request of
the Issuer or the successor Trustee, such retiring Trustee shall, upon payment
of its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly
assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder. Upon request of any such successor
Trustee, the Issuer shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.

          (b) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee shall be qualified and eligible
under this Article and no reduction in the then current ratings, if any, on the
Notes has occurred as a result of such appointment.

          SECTION 7.10. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS.

          Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding to all or substantially all the corporate trust business

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<PAGE>

of the Trustee, shall be the successor of the Trustee hereunder; PROVIDED such
Person shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Notes shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion,
or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes.

          SECTION 7.11 CO-TRUSTEES AND SEPARATE TRUSTEES.

          (a) At any time or times, for the purpose of meeting the legal
requirements of any jurisdiction in which any of the Trust Property may at the
time be located, the Issuer and the Trustee shall have power to appoint, and,
upon the written request of the Trustee or the Noteholders evidencing more than
50% of the Voting Rights, the Issuer shall for such purpose join with the
Trustee in the execution, delivery, and performance of all instruments and
agreements necessary or proper to appoint one or more Persons approved by the
Trustee either to act as co-trustee, jointly with the Trustee, of all or any
part of such Trust Property, or to act as separate trustee of any such property,
in either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons in the capacity aforesaid,
any property, title, right or power deemed necessary or desirable, subject to
the other provisions of this Section 7.11. If the Issuer does not join in such
appointment within fifteen days after the receipt by it of a request so to do,
or in case an Indenture Event of Default has occurred and is continuing, the
Trustee alone shall have power to make such appointment.

          (b) Should any written instrument from the Issuer be required by any
co-trustee or separate trustee so appointed for more fully confirming to such
co-trustee or separate trustee such property, title, right, or power, any and
all such instruments shall, on request, be executed, acknowledged and delivered
by the Issuer.

          (c) Every co-trustee or separate trustee shall, to the extent
permitted by law, but to such extent only, be appointed subject to the following
terms:

               (i) The Notes shall be authenticated and delivered and all
     rights, powers, duties, and obligations hereunder in respect of the custody
     of securities, cash and other personal property held by, or required to be
     deposited or pledged with, the Trustee hereunder, shall be exercised solely
     by the Trustee.

               (ii) The rights, powers, duties, and obligations hereby conferred
     or imposed upon the Trustee in respect of any property covered by such
     appointment shall be conferred or imposed upon and exercised or performed
     by the Trustee or by the Trustee and such co-trustee or separate trustee
     jointly, as shall be provided in the instrument appointing such co-trustee
     or separate trustee, except to the extent that, under any law of any
     jurisdiction in which any particular act is to be performed, the Trustee
     shall be incompetent or unqualified to perform such act, in which event
     such rights, powers, duties and obligations shall be exercised and
     performed by such co-trustee or separate trustee.

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<PAGE>

               (iii) The Trustee at any time, by an instrument in writing
     executed by it, with the concurrence of the Issuer evidenced by an Issuer
     Order, may accept the resignation of or remove any co-trustee or separate
     trustee appointed under this Section 7.11, and, in case an Indenture Event
     of Default has occurred and is continuing, the Trustee shall have power to
     accept the resignation of, or remove, any such co-trustee or separate
     trustee without the concurrence of the Issuer. Upon the written request of
     the Trustee, the Issuer shall join with the Trustee in the execution,
     delivery and performance of all instruments and agreements necessary or
     proper to effectuate such resignation or removal. A successor to any
     co-trustee or separate trustee so resigned or removed may be appointed in
     the manner provided in this Section 7.11.

               (iv) No co-trustee or separate trustee hereunder shall be
     personally liable by reason of any act or omission of the Trustee or any
     other such trustee hereunder and the Trustee shall not be personally liable
     by reason of any act or omission of any co-trustee or other such separate
     trustee hereunder selected and supervised by the Trustee with due care or
     appointed in accordance with directions to the Trustee pursuant to Section
     6.12.

               (v) Any Act of Noteholders delivered to the Trustee shall be
     deemed to have been delivered to each such co-trustee and separate trustee.

          SECTION 7.12 TRUSTEE TO HOLD CONTRACTS.

          On or prior to the Closing Date, the Contributor, on behalf of the
Issuer, shall deliver to the Trustee (or its designee) the sole original,
manually executed counterpart of each Contract (or, if the original Contract is
in the form of a schedule or supplement to a master lease, all original
counterparts of such schedule or supplement previously in the possession of the
Contributor or the Issuer together with a true and correct copy of such master
lease) that constitutes "chattel paper" or an "instrument," as such terms are
defined in the UCC. The Trustee (or its designee) shall hold such documents
until such time as such Contract is released from the lien of this Indenture
pursuant to the provisions hereof.

          SECTION 7.13 FINANCING STATEMENTS.

          The Trustee shall execute such UCC financing statements and
continuation statements as shall have been prepared by the Servicer and as shall
be necessary and shall furnish the Servicer with such limited powers of attorney
or other documents necessary or appropriate to enable the Servicer to fulfill
its obligations under Section 4 of the Contribution and Servicing Agreement and
to carry out its servicing and administration duties under the Contribution and
Servicing Agreement.

          SECTION 7.14 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

          (a) On and after the time the Servicer receives a notice of
termination pursuant to Section 10.02 of the Contribution and Servicing
Agreement, the Trustee (subject to subsection (b)

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<PAGE>

hereof) shall be the successor in all respects to the Servicer in its capacity
as servicer under the Contribution and Servicing Agreement of the Contracts and,
to such extent, shall be subject to all the responsibilities, duties and
liabilities (other than the duty to advance funds and indemnify) relating
thereto placed on the Servicer by the terms and provisions thereof (but not the
obligations of the Contributor contained therein which shall survive any such
termination as provided in Section 10.02 thereof) and shall be entitled to
receive from the Issuer the Servicing Fee and other servicing compensation
provided for in Section 4.04 of the Contribution and Servicing Agreement;
PROVIDED that the Trustee shall in no way be responsible or liable for any
action or actions of the Servicer before the time the Servicer receives such a
notice of termination.

          (b) The Trustee may, if it is unwilling or unable to act as the
successor Servicer, give notice of such fact to each Noteholder and each Swap
Provider and (i) appoint a successor Servicer with a net worth of at least
$15,000,000 and reasonably acceptable to Noteholders evidencing more than 50% of
the Voting Rights and whose regular business includes the servicing of a similar
type of contracts and the financing of medical diagnostic imaging equipment, as
the successor Servicer under the Contribution and Servicing Agreement, to assume
all of the rights and obligations of the Servicer thereunder, including, without
limitation, the Servicer's right thereunder to receive the Servicing Fee (but
not the obligations of the Contributor contained therein) or, (ii) if no such
institution is so appointed, petition a court of competent jurisdiction to
appoint an institution meeting such criteria as the Servicer thereunder. Pending
appointment of a successor Servicer under the Contribution and Servicing
Agreement, the Trustee shall act in such capacity as hereinabove provided. In
connection with such appointment and assumption, the Trustee shall cause such
successor Servicer to enter into a servicing agreement substantially in the form
of the Contribution and Servicing Agreement, except that such agreement shall
not include any of the Contributor's representations, warranties or obligations
and the Trustee may make arrangements for the compensation of such successor
Servicer out of payments on Contracts and the related Contracts as it and such
successor Servicer shall agree; PROVIDED, HOWEVER, that no such compensation
shall be in excess of that provided in Section 4.04 of the Contribution and
Servicing Agreement.

          SECTION 7.15 REPORTS BY TRUSTEE TO HOLDERS.

          If required by the TIA, within 60 days after each Payment Date
beginning with December 12, 2002, the Trustee shall mail to each Noteholder a
brief report dated as of such Payment Date that complies with TIA Section
313(a).

          SECTION 7.16 PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER.

          The Trustee is subject to and shall comply with TIA Section 311(a),
excluding any creditor relationship listed in TIA Section 311(b).

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          SECTION 7.17 DATA MAPPING.

          Within ninety (90) days of the Closing Date, the Trustee, as backup
Servicer pursuant to Section 10.03 of the Contribution and Servicing Agreement,
shall (1) in order to understand the purpose of each data field (and the
interrelationships among such data fields) set forth in the computer software
used by the Servicer in connection with the servicing of each Contract and the
related Trust Property, review the computer software used by the Servicer in
connection with the servicing of each Contract and the related Trust Property
and (2) in order to be able to independently generate any Monthly Servicer
Report, develop a computer program that (x) recognizes the data fields (and the
interrelationships among them) used by the Servicer and (y) permits the data set
forth in a Monthly Servicer Report to be downloaded for use by such computer
program. Upon its receipt of an electronic copy of the Monthly Servicer Report,
the Trustee shall download the data contained in such Monthly Servicer Report
into the computer program and, using such computer program, it shall generate a
copy of such Monthly Servicer Report for its own records. Commencing in December
2002 and for the first calendar month in each quarter thereafter, with respect
to the data provided by the Servicer to the Trustee, the Trustee shall compare
the Monthly Servicer Report provided by the Servicer in respect of the related
calendar month to the Monthly Servicer Report generated by the Servicer for the
same calendar month. The Trustee shall report to the Servicer any discrepancies
between the Monthly Servicer Report generated by the Servicer and the Monthly
Servicer Report generated by the Trustee and shall require that the Servicer
reconcile any discrepancies between such Monthly Servicer Reports.

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                                  ARTICLE VIII

                                    COVENANTS

          SECTION 8.01 PAYMENT OF PRINCIPAL AND INTEREST.

          The Issuer will duly and punctually pay the principal of and interest
on the Notes in accordance with the terms of the Notes and this Indenture. An
installment of interest shall be considered paid on the date it is due if the
Trustee holds on that date money designated for and sufficient to pay the
installment.

          SECTION 8.02 MAINTENANCE OF OFFICE OR AGENCY; CHIEF EXECUTIVE OFFICE.

          (a) The Issuer will maintain in the Commonwealth of Pennsylvania an
office or agency where notices and demands to or upon the Issuer in respect of
the Notes and this Indenture may be served.

          (b) The chief executive office of the Issuer, and the office at which
the Issuer maintains its records with respect to the Contracts, the Equipment,
and the transactions contemplated hereby, is located in Jamison, Pennsylvania.
The Issuer will not change the location of such office without giving the
Trustee and each Noteholder at least 60 days' prior written notice thereof.

          SECTION 8.03 MONEY FOR PAYMENTS TO NOTEHOLDERS TO BE HELD IN TRUST.

          (a) All payments of amounts due and payable with respect to any Notes
that are to be made from amounts withdrawn from the Collection Account pursuant
to Section 3.04(b) or Section 6.06 shall be made on behalf of the Issuer by the
Trustee, and no amounts so withdrawn from the Collection Account for payments of
Notes shall be paid over to the Issuer under any circumstances except as
provided in this Section 8.03.

          (b) In making payments hereunder, the Trustee will:

               (i) allocate all sums received for payment to the Noteholders and
     the Swap Providers on each Payment Date in accordance with the terms of
     this Indenture;

               (ii) hold all sums held by it for the payment of amounts due with
     respect to the Notes in trust for the benefit of the Persons entitled
     thereto until such sums shall be paid to such Persons or otherwise disposed
     of as herein provided and pay such sums to such Persons as herein provided;
     and

               (iii) comply with all requirements of the Internal Revenue Code
     of 1986, as amended (or any successor statutes), and all regulations
     thereunder, with respect to the withholding from any payments made by it on
     any Notes of any applicable withholding taxes

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     imposed thereon and with respect to any applicable reporting requirements
     in connection therewith, in each case, consistent with the treatment of the
     Notes as indebtedness.

          (c) Except as required by applicable law, any money held by the
Trustee in trust for the payment of any amount due with respect to any Note and
remaining unclaimed for two years after such amount has become due and payable
to the Noteholder or the Swap Provider shall be discharged from such trust and,
subject to applicable escheat laws, paid to the Issuer upon request; and such
Noteholder or Swap Provider shall thereafter, as an unsecured general creditor,
look only to the Issuer for payment thereof, and all liability of the Trustee
with respect to such trust money shall thereupon cease.

          SECTION 8.04 ISSUER EXISTENCE; ETC.

          (a) The Issuer will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence as a Delaware limited
liability company and the rights, licenses and franchises of the Issuer, and
will obtain and preserve its qualification to do business in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of the Indenture, the Notes, or any of the Contracts.

          (b) The Issuer shall at all times observe and comply in all material
respects with (i) its limited liability company operating agreement as in effect
on the date hereof, (ii) all laws, regulations and court orders applicable to
it, (iii) all requirements of law in the declaration and payment of any
distributions on its Units, and (iv) all requisite and appropriate formalities
(including, without limitation, obtaining the consent of the Managing Member as
its sole beneficial owner to authorize Issuer action as required, and as
otherwise required by law) in the management of its business and affairs and the
conduct of the transactions contemplated hereby, by the SCTA and by the
Contribution and Servicing Agreement. The SCTA limits the Issuer's activities to
the purchases of assets, issuance of securities, and activities incidental
thereto. No Affiliate of the Issuer pays the expenses of the Issuer except as
contemplated in the Transaction Documents, and no Affiliate of the Issuer
guarantees any obligation of the Issuer. Other than the purchase, contribution,
substitution or sale of assets, the Issuer has no intercorporate transactions
with DVI.

          (c) The Issuer will, at all times: (i) maintain (A) financial books
and records separate from those of any other Person and (B) minutes of its
meetings and other proceedings of its member(s); (ii) continuously maintain the
resolutions, agreements and other instruments underlying the transactions
contemplated hereby, by the SCTA and by the Contribution and Servicing
Agreement, as official records of the Issuer; (iii) act solely in its name to
maintain an arm's-length relationship with the Contributor and its Affiliates;
(iv) pay all of its operating expenses and liabilities from its own funds; (v)
maintain an office and telephone number separate from that of the Contributor,
the Managing Member and the Transferor, (vi) maintain its assets separately from
the assets of the Contributor and (vii) characterize the Contributor, the
Managing Member and the Transferor as separate entities in any report, tax
return, financial statement, other accounting or business transaction.

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          (d) The Issuer shall conduct its business solely in its own name so as
to not mislead others as to the identity of the trust with which those others
are concerned, and particularly will avoid the appearance of conducting business
on behalf of the Contributor or any of its Affiliates or that the assets of the
Issuer are available to pay the creditors of the Contributor or any of its
Affiliates. Without limiting the generality of the foregoing, all oral and
written communications, including, without limitation, letters, invoices,
purchase orders, contracts, statements and loan applications, will be made
solely in the name of the Issuer.

          (e) The Issuer will be operated so as not to be substantively
consolidated for bankruptcy purposes with the Contributor.

          (f) Reserved.

          (g) The Issuer will not amend its limited liability company operating
agreement without the prior consent of Noteholders evidencing more than 50% of
the Voting Rights.

          (h) The Issuer shall also comply with the other applicable provisions
of TIA Section 314.

          SECTION 8.05 PROTECTION OF TRUST PROPERTY; FURTHER ASSURANCES.

          The Issuer will from time to time execute and deliver all such
supplements and amendments hereto and all such UCC financing statements,
continuation statements, instruments of further assurance, and other
instruments, and will take such other action as may be necessary or advisable
to:

               (i) Grant more effectively all or any portion of the Trust
     Property;

               (ii) maintain or preserve the lien of this Indenture or carry out
     more effectively the purposes hereof;

               (iii) publish notice of, or protect the validity of, any Grant or
     assignment made or to be made by this Indenture and perfect the security
     interest contemplated hereby in favor of the Trustee in the Contracts and
     any security interest in the related Equipment;

               (iv) enforce or cause the Servicer to enforce any of the
     Contracts; or

               (v) preserve and defend title to any Contract (including the
     right to receive all payments due or to become due thereunder subsequent to
     the applicable Cut-Off Date), the security interest of the Trustee in the
     Equipment, or other property included in the Trust Property and preserve
     and defend the rights of the Trustee and the Noteholders in such Contract
     (including the right to receive all payments due or to become due
     thereunder

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     subsequent to the applicable Cut-Off Date), Equipment and other property
     against the claims of all persons and parties.

The Issuer, upon the Issuer's failure to do so, hereby designates the Trustee
its agent and attorney-in- fact to execute any UCC financing statement,
continuation statement or other document or instrument required pursuant to this
Section 8.05; PROVIDED, HOWEVER, that such designation shall not be deemed to
create a duty in the Trustee to monitor the compliance of the Issuer with the
foregoing covenants, and PROVIDED FURTHER that the duty of the Trustee to
execute any instrument required pursuant to this Section 8.05 shall arise only
if a Responsible Officer of the Trustee has actual knowledge of any failure of
the Issuer to comply with the provisions of this Section 8.05.

          SECTION 8.06 COMPLIANCE CERTIFICATES.

          The Issuer will deliver to the Trustee and the Rating Agencies, within
90 days after the end of each fiscal year, an Officer's Certificate of the
Managing Member, as sole owner of the beneficial interests of the Issuer,
stating, in addition to the statements required by Section 1.18, as to each
signer thereof, that:

               (i) a review of the activities of the Issuer during such year and
     of performance under this Indenture has been made under such officers'
     supervision,

               (ii) to the best of such officers' knowledge, based on such
     review, (a) the Issuer has fulfilled all of its obligations under this
     Indenture throughout such year and (b) the Servicer has fulfilled all of
     the Servicer's obligations under the Contribution and Servicing Agreement,
     and

               (iii) whether the officer knows of any Defaults by the Issuer
     under this Indenture throughout such year or, if there has been a Default
     in the fulfillment of any such obligation, specifying each such Default
     known to him and the nature and status thereof and the nature of the action
     taken with respect thereto.

          SECTION 8.07 PERFORMANCE OF OBLIGATIONS; CONTRIBUTION AND SERVICING
AGREEMENT.

          (a) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, any Supplement, the
Notes, its limited liability company operating agreement, the Note Purchase
Agreement, the Underwriting Agreements and any other applicable Transaction
Documents.

          (b) The Issuer will clearly mark its books and records to reflect each
assignment and transfer of a Contract and the security interest in the Equipment
subject thereto from the Transferor.

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          (c) If the Managing Member, as sole member of the Issuer, shall have
actual knowledge of the occurrence of a default under either the Contribution
and Servicing Agreement or the SCTA, the Issuer shall promptly notify the
Trustee and the Noteholders thereof, and shall specify in such notice the
action, if any, the Issuer is taking in respect of such default. Unless
consented to by Noteholders evidencing more than 50% of the Voting Rights, the
Issuer may not waive any default under or amend the Contribution and Servicing
Agreement.

          (d) The Issuer shall, and shall cause the Contributor to, update any
information required to be provided pursuant to Rule 144A(d) (4) of the
Securities Act to subsequent purchasers of the Class E Notes to prevent such
information from becoming materially false and materially misleading in a manner
adverse to any Noteholder.

          SECTION 8.08 NEGATIVE COVENANTS.

          The Issuer will not:

               (i) sell, transfer, exchange or otherwise dispose of any portion
     of the Trust Property except as expressly permitted by this Indenture or
     any Supplement; PROVIDED THAT nothing contained herein shall prohibit the
     transfer by the Issuer of amounts payable to the Issuer pursuant to Section
     3.04(b);

               (ii) claim any credit on, or make any deduction from, the
     principal of, or interest on, any of the Notes by reason of the payment of
     any taxes levied or assessed upon any portion of the Trust Property;

               (iii) seek dissolution or liquidation in whole or in part or
     reorganization of its business or affairs;

               (iv) (A) permit the validity or effectiveness of this Indenture
     or any Grant hereby to be impaired, or permit the lien of this Indenture to
     be amended, hypothecated, subordinated, terminated or discharged, or permit
     any Person to be released from any covenants or obligations under this
     Indenture, except as may be expressly permitted hereby, (B) permit any
     lien, charge, security interest, mortgage or other encumbrance to be
     created on or to extend to or otherwise arise upon or burden the Trust
     Property or any part thereof or any interest therein or the proceeds
     thereof other than the lien of this Indenture and the rights of Obligors,
     or (C) permit the lien of this Indenture not to constitute a valid first
     priority perfected security interest in the Contracts and a valid security
     interest in the Equipment;

               (v) engage in any business or activity in violation of the
     provisions contained in its limited liability company operating agreement;

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               (vi) at any time insist upon, plead, or in any manner whatsoever
     claim or take the benefit or advantage of, any stay or extension law or
     other law that would prohibit or forgive the Issuer from paying all or any
     portion of the principal of or interest on the Notes as contemplated herein
     or in the Notes, wherever enacted, now or at any time hereafter in force,
     or that may affect the covenants or the performance of this Indenture; and
     (to the extent that it may lawfully do so) the Issuer hereby expressly
     waives all benefit or advantage of any such law, and covenants that it will
     not hinder, delay or impede the execution of any power herein granted to
     the Trustee, but will suffer and permit the execution of every such power
     as though no such law had been enacted;

               (vii) merge or consolidate with any other Person unless (i) the
     entity surviving such merger or consolidation is a Person organized under
     the laws of the United States or any jurisdiction thereof, (ii) the
     surviving entity, if not the Issuer, shall execute and deliver to the
     Servicer and the Trustee, in form and substance satisfactory to each of
     them, (x) an instrument expressly assuming all of the obligations of the
     Issuer hereunder, and (y) an opinion of counsel to the effect that such
     Person is a Person of the type described in the preceding clause (i), has
     effectively assumed the obligations of the Issuer hereunder, that all
     conditions precedent provided for in this Indenture relating to such
     transaction have been complied with, that in the opinion of such counsel,
     all UCC financing statements and continuation statements and amendments
     thereto have been executed and filed that are necessary fully to preserve
     and protect the interest of the Trustee in the Trust Property, and reciting
     the details of such filings, or stating that no such action shall be
     necessary to preserve and protect such interest, (iii) the Issuer shall
     deliver to the Trustee a letter from each Rating Agency to the effect that
     such transaction will not, in and of itself, result in a downgrading of the
     rating for the Notes and (iv) immediately after giving effect to such
     transaction, no event of default under any Transaction Document, and no
     event which, after notice or lapse of time, or both, would become an event
     of default, shall have occurred and be continuing. The Issuer and any
     surviving entity, if not the Issuer, will keep all of its material assets
     within the United States at all times. The Issuer will not make any
     material change in its business;

               (viii) take any action or permit any action to be taken by others
     which would release any Person from any of such Person's covenants or
     obligations under any Contract or any other instrument included in the
     Trust Property other than any such release occasioned by the early
     termination of a Contract after receipt of the Prepayment Amount, or which
     would result in the amendment, hypothecation, subordination, termination,
     or discharge of, or impair the validity or effectiveness of, any Contract
     or such other instrument, except as expressly provided in this Indenture or
     the Contribution and Servicing Agreement; or

               (ix) issue any other securities (other than the Notes and the
     Class F Instruments) unless it shall have received from the Rating Agencies
     a written confirmation that the issuance of such securities will not result
     in a Ratings Effect with respect to any class of Notes.

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          SECTION 8.09 INFORMATION AS TO THE ISSUER.

          The Issuer shall file with the Trustee and the Rating Agencies:

          (a) within 15 days after filing with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may by rules and
regulations prescribe) which the Managing Member (as settlor of the Issuer) is
required to file with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act.

          (b) immediately upon becoming aware of the existence of any condition
or event which constitutes a Default or an Indenture Event of Default, a written
notice describing its nature and period of existence and what action the Issuer
is taking or proposes to take with respect thereto;

          (c) promptly upon the Issuer's becoming aware of:

               (i) any proposed or pending investigation of it by any
     governmental authority or agency, or

               (ii) any pending or proposed court or administrative proceeding

which involves or may involve the possibility, individually or in the aggregate,
of materially and adversely affecting the properties, business, profits or
condition (financial or otherwise) of the Issuer, a written notice specifying
the nature of such investigation or proceeding and what action the Issuer is
taking or proposes to take with respect thereto and evaluating its merits; and

          (d) with reasonable promptness, any other data and information which
may be reasonably requested from time to time.

          SECTION 8.10. PAYMENT OF TAXES AND OTHER CLAIMS.

          The Issuer will pay or discharge or cause to be paid or discharged,
before any penalty accrues from the failure to so pay or discharge, (1) all
taxes, assessments and governmental charges levied or imposed upon the Issuer or
upon the income, profits or property (including any property that is part of the
Trust Property) of the Issuer and (2) all lawful claims for labor, materials and
supplies which, if unpaid, might by law become a lien upon the property of the
Issuer; PROVIDED, HOWEVER, that the Issuer shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or
claim the amount, applicability or validity of which is being contested in good
faith by appropriate proceedings and for which adequate provision has been made
or where the failure to effect such payment or discharge is not adverse in any
material respect to the Noteholders.

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          SECTION 8.11 INDEMNIFICATION.

          The Issuer agrees to indemnify and hold harmless the Trustee (which
shall include its directors, officers, employees and agents) and each Noteholder
(each an "INDEMNIFIED PARTY") against any and all liabilities, losses, damages,
penalties, costs and expenses (including the fees and expenses of counsel and
the costs of defense and legal fees and expenses) which may be incurred or
suffered by such Indemnified Party without negligence, bad faith or willful
misconduct on its part as a result of claims, actions, suits or judgments
asserted or imposed against it and arising out of the transactions contemplated
hereby, by the SCTA or by the Contribution and Servicing Agreement, including,
without limitation, any claims resulting from any use, operation, maintenance,
repair, storage or transportation of any item of Equipment, whether or not in
the Issuer's possession or under its control, and any tort claims and any fines
or penalties arising from any violation of the laws or regulations of the United
States or any state or local government or governmental authority; PROVIDED
that, except to the extent otherwise provided in Section 6.06, all amounts
payable pursuant to this Section 8.11 shall be fully subordinated to amounts
payable under the Class A Notes, the Class B Notes, the Class C Notes, the Class
D Notes and the Class E Notes to the extent that any amounts otherwise due and
payable under the terms of this Indenture have not been fully paid. In every
circumstance where the Issuer has agreed to indemnify or hold harmless the
Noteholders for legal fees, counsel fees and related costs and expenses, it is
understood and agreed, and the Noteholders by their acceptance of their
respective Notes agree, that such indemnification and holding harmless is
limited to the reasonable fees, related costs and expenses of the Noteholders
Counsel only. The provisions of this Section 8.11 shall survive the termination
of this Indenture.

          SECTION 8.12 CONTRACT FILES TO TRUSTEE.

          On or prior to the Closing Date or each Substitute Date, as
applicable, the Contributor, on behalf of the Issuer, shall deliver to the
Trustee the original counterpart of each Contract that constitutes "chattel
paper" or an "instrument," as such terms are defined in the UCC.

          SECTION 8.13 PAYMENT ADVICES.

          Each payment by the Issuer or the Servicer to the Trustee pursuant to
any of the provisions of the Transaction Documents shall be accompanied by
written advice containing sufficient information to identify the Contract and/or
Equipment to which such payment relates, the Section of the Transaction
Documents pursuant to which such payment is made, and the proper application
pursuant to the provisions of the applicable Transaction Document of the amounts
being paid.

          SECTION 8.14 SWAP AGREEMENT.

          The Issuer shall enter into and maintain either the Swap Agreement or,
if the Swap Agreement is terminated, another interest rate hedge agreement for
the Class A-2a Notes, the Class A-3a Notes, the Class D Notes and the Class E
Notes until all interest and principal of the Class A-2a Notes, the Class A-3a
Notes, the Class D Notes and the Class E Notes shall have been paid in full.

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As additional security hereunder, the Issuer hereby assigns to the Trustee all
of its right, title and interest under the Swap Agreement and each other
interest rate hedge agreement in respect of the Class A-2a Notes, the Class A-3a
Notes, the Class D Notes and the Class E Notes. The Issuer acknowledges that, as
a result of such assignment, the Issuer may not, without the prior written
consent of the Trustee (acting at the direction of the Majority of the Voting
Rights), exercise any rights under the Swap Agreement or any other interest rate
hedge agreement in respect of the Class A-2a Notes, the Class A- 3a Notes, the
Class D Notes and the Class E Notes that would materially adversely affect the
rights of the Noteholders, as assignee of the Issuer's rights under the Swap
Agreement and such other interest rate hedge agreement; PROVIDED that nothing
herein shall have the effect of releasing the Issuer from any of its obligations
under the Swap Agreement or any other interest rate hedge agreement in respect
of the Class A-2a Notes, the Class A-3a Notes, the Class D Notes and the Class E
Notes nor be construed as requiring the consent of the Trustee or any Noteholder
for the performance of the Issuer's obligations thereunder.

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                                   ARTICLE IX

                     AMENDMENTS AND SUPPLEMENTAL INDENTURES

          SECTION 9.01 AMENDMENTS AND SUPPLEMENTAL INDENTURES.

          This Indenture or the Notes may be amended from time to time by the
parties hereto, without the consent of any of the Noteholders, (i) to cure any
ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein or to make any other provisions
with respect to matters or questions arising under this Indenture or the Notes
which shall not be materially inconsistent with the provisions of this Indenture
or the Notes, PROVIDED THAT such action shall not adversely affect in any
respect the interests of any Noteholder or (ii) to make any change to comply
with the TIA or any amendment thereto, or to comply with any requirement of the
Commission in connection with the qualification of the Indenture under the TIA.

          This Indenture or the Notes may also be amended from time to time by
the parties hereto with the consent of the Holders of Notes evidencing more than
662/3% of the Voting Rights (and with prior written notice to the Rating Agency)
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or the Notes or of modifying
in any manner the rights of the Holders of Notes; PROVIDED, HOWEVER, that no
amendment to this Indenture or any supplemental indenture may (i) cause a
reduction in the then current ratings, if any, of the Notes, (ii) increase or
reduce in any manner the amount of, or accelerate or delay the timing of
collections of payments on the related Contracts or distributions that are
required to be made for the benefit of such Noteholders, (iii) reduce the
aforesaid percentage of the Notes of such series which is required to consent to
any such amendment or waiver, or (iv) release any of the Trust Property from the
lien hereof (except as otherwise permitted herein) or modify Section 2.06, 3.04,
6.06, 6.08, 6.13 or 9.01, without the consent of each affected Noteholder. The
Issuer shall furnish to the Rating Agencies copies of all amendments to and
supplements to this Indenture.

          It shall not be necessary for the consent of the Noteholders under
this Section 9.01 to approve the particular form of any proposed amendment or
supplement, but it shall be sufficient if such consent approves the substance
thereof.

          SECTION 9.02 EXECUTION OF AMENDMENTS AND SUPPLEMENTAL INDENTURES.

          In executing any amendment to this Indenture, the Notes or any
supplemental indenture pursuant to Section 9.01 of this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 7.01) shall be fully
protected in relying upon (i) an Officer's Certificate stating that all
conditions precedent for entering into such amendment or supplemental indenture
as set forth in the Indenture have been met and (ii) an Opinion of Counsel
stating that the execution of such amendment to this Indenture, the Note, or any
supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but shall not be obligated to, enter into any supplemental indenture which
affects the Trustee's own rights, duties, protections, or immunities under this
Indenture or otherwise.

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          SECTION 9.03 EFFECT OF AMENDMENTS AND SUPPLEMENTAL INDENTURES.

          Upon the execution of any amendment to this Indenture, the Notes or
any supplemental indenture under this Article, this Indenture, the Notes or any
supplemental indenture shall be modified in accordance therewith, and such
amendment or supplemental indenture shall form a part of this Indenture, the
Notes or any supplemental indenture for all purposes, and every Noteholder of
Notes theretofore or thereafter authenticated and delivered hereunder shall be
bound thereby.

          SECTION 9.04 REFERENCE IN NOTES TO AMENDMENTS AND SUPPLEMENTAL
INDENTURES.

          Notes authenticated and delivered after the execution of any amendment
to this Indenture or any supplemental indenture pursuant to this Article may,
and shall if required by the Trustee, bear a notation in form approved by the
Trustee as to any matter provided for in such amendment or supplemental
indenture. If the Issuer shall so determine, new Notes so modified as to
conform, in the opinion of the Trustee and the Issuer, to any such amendment or
supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Trustee in exchange for outstanding Notes.

          SECTION 9.05 COMPLIANCE WITH TRUST INDENTURE ACT.

          The Issuer hereby covenants and agrees that every amendment or
supplement to this Indenture or the Notes shall comply with the TIA as then in
effect.

          SECTION 9.06 REVOCATION AND EFFECT OF CONSENTS.

          Subject to this Indenture, each amendment, waiver or instrument
evidencing other action shall become effective in accordance with its terms.
Until an amendment, waiver or other action becomes effective, a consent to it by
a Noteholder is a continuing consent by the Noteholder even if notation of the
consent is not made on any Note.

          The Issuer may, but shall not be obligated to, fix a record date for
the purpose of determining the Noteholders entitled to consent to any amendment,
supplement or waiver. If a record date is fixed, then those Persons who were
Noteholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to consent to such amendment, supplement or
waiver or to revoke any consent previously given, whether or not such Persons
continue to be Noteholders after such record date. No such consent shall be
valid or effective for more than 90 days after such record date.

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                                    ARTICLE X

                               REDEMPTION OF NOTES

          SECTION 10.01 OPTIONAL REDEMPTION; ELECTION TO REDEEM.

          (a) The Notes may be redeemed by the Issuer, in whole but not in part,
at the Redemption Price on any Payment Date on which the Aggregate Discounted
Contract Balance is less than 10% of the Initial Aggregate Discounted Contract
Balance. The Issuer, by an Authorized Officer of the Managing Member, shall set
the Redemption Date and the Redemption Record Date and give notice thereof to
the Trustee. Notice of redemption having been given as provided in the
Indenture, the Notes shall, on the Redemption Date, become due and payable at
the Redemption Price. The Noteholders shall be paid the Redemption Price by the
Trustee to the extent of Available Funds on deposit in the Collection Account,
and upon presentation and surrender of the Notes on behalf of the Issuer;
PROVIDED, HOWEVER, that installments of principal and interest which are due on
or prior to the Redemption Date shall be payable to the Noteholders registered
as such on the relevant Record Dates or Redemption Record Date, as applicable,
according to their terms.

          (b) The Issuer, by order of an Authorized Officer of the Managing
Member, shall set the Redemption Date and the Redemption Record Date and give
notice thereof to the Trustee pursuant to Section 10.02.

          SECTION 10.02 NOTICE TO TRUSTEE.

          In the case of any redemption pursuant to Section 10.01, the Issuer
shall, at least 20 days prior to the Redemption, notify the Trustee and the
Rating Agencies of the Redemption Date and the principal amount of Notes to be
redeemed. The notice shall be accompanied by an Officer's Certificate stating
that the redemption complies with the provisions of this Indenture.

          SECTION 10.03 NOTICE OF REDEMPTION BY THE ISSUER.

          Notice of redemption pursuant to Section 10.01 shall be given by first
class mail, postage prepaid, mailed at least 15 days but not more than 60 days
prior to the Redemption Date, to each holder of a Note, at its address in the
Note Register.

          All notices of redemption shall state:

               (1)  the Redemption Date;

               (2)  the Redemption Price;

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               (3)  that on the Redemption Date, the Redemption Price will
                    become due and payable upon each such Note, and that
                    interest on such Note shall cease to accrue if payment is
                    made on such date;

               (4)  the private placement number or CUSIP number, if any, of the
                    Notes;

               (5)  Corporate Trust Office where Notes are to be surrendered for
                    payment of the Redemption Price; and

               (6)  the Redemption Record Date.

          Notice of redemption of Notes shall be given by the Issuer, by order
of an Authorized Officer of the Transferor, or, at the request of such
Authorized Officer of the Managing Member, by the Trustee in the name and at the
expense of the Issuer. Failure to give notice of redemption or any defect
therein, to any holder of a Note shall not impair or affect the validity of the
redemption of any other Note. If a private placement number or CUSIP number is
listed in such notice or printed on the Note, the notice may state that no
representation is made as to the correctness or accuracy of such private
placement number or CUSIP number.

          SECTION 10.04 DEPOSIT OF THE REDEMPTION PRICE.

          On or before the Business Day immediately preceding the Redemption
Date, the Issuer shall deposit with the Trustee an amount of monies sufficient
to pay the Redemption Price of all Notes outstanding on the Redemption Date
(less any portion of such payment to be made from monies in the Collection
Account).

          SECTION 10.05 NOTES PAYABLE ON REDEMPTION DATE.

          Notice of redemption in full having been given as provided in Section
10.03, the Notes shall, on the Redemption Date, become due and payable at the
Redemption Price and on the Redemption Date (unless the Issuer shall default in
the payment of the Redemption Price) such Notes shall cease to bear interest.
The Noteholders shall be paid the Redemption Price by the Trustee on behalf of
the Issuer; PROVIDED, HOWEVER, that installments of principal and interest which
are due on or prior to the Redemption Date shall be payable to the Noteholders
registered as such on the relevant Record Dates according to their terms and the
provisions of Section 2.07. If the Holders of any Note called for redemption in
full shall not be so paid upon surrender, the principal and interest shall,
until paid, bear interest from the Redemption Date at the related Note Rate.

                                       76
<PAGE>

                                   ARTICLE XI

                           SATISFACTION AND DISCHARGE

          SECTION 11.01 SATISFACTION AND DISCHARGE OF INDENTURE.

          (a) This Indenture shall cease to be of further effect (except as to
any surviving rights herein expressly provided for), and the Trustee, on demand
of and at the expense of the Issuer, shall execute proper instruments and
certifications acknowledging satisfaction and discharge of this Indenture, when:

               (i) either:

                    (A) all Notes theretofore authenticated and delivered (other
          than (x) Notes which have been destroyed, lost, or stolen and which
          have been replaced or paid as provided in Section 2.05 and (y) Notes
          for whose payment money has theretofore been deposited in trust or
          segregated and held in trust by the Issuer and thereafter repaid to
          the Issuer or discharged from such trust, as provided in Section
          8.03(c)) have been irrevocably paid and delivered to the Trustee for
          cancellation; or

                    (B) the final installments of principal on all such Notes
          not theretofore delivered to the Trustee for cancellation:

                         (1) have become due and payable, or

                         (2) will become due and payable at their Stated
               Maturity Date within one year,

          and the Issuer has deposited or caused to be deposited with the
          Trustee as trust funds in trust for the purpose an amount sufficient
          to pay and discharge the entire indebtedness on such Notes not
          theretofore delivered to the Trustee for cancellation, for principal
          and interest to the date of such deposit (in the case of Notes which
          have become due and payable) or to the Stated Maturity Date thereof;

               (ii) the Issuer has paid or caused to be paid all other sums
     payable hereunder by the Issuer for the benefit of the Noteholders and the
     Swap Providers; and

               (iii) the Issuer has delivered to the Trustee an Officer's
     Certificate of the Managing Member stating that all conditions precedent
     herein provided for relating to the satisfaction and discharge of this
     Indenture have been complied with.

At such time, the Trustee shall deliver to the Issuer or, upon Issuer Order, its
assignee, all cash, securities and other property held by it as part of the
Trust Property other than funds deposited with

                                       77
<PAGE>

the Trustee pursuant to Section 11.01(a)(i)(B) for the payment and discharge of
the Notes and a certificate from a Responsible Officer certifying the
satisfaction and discharge of this Indenture.

          (b) Notwithstanding the satisfaction and discharge of this Indenture,
the obligations of the Issuer under Sections 7.06 and 8.11, and, if money shall
have been deposited with the Trustee pursuant to Section 11.01(a)(i)(B), the
obligations of the Trustee under Section 11.02 and Section 8.03(c) shall
survive.

          SECTION 11.02 APPLICATION OF TRUST MONEY.

          Subject to the provisions of Section 8.03(c), all money deposited with
the Trustee pursuant to Sections 11.01 and 8.03 shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment to the Persons entitled thereto of the principal and
interest for whose payment such money has been deposited with the Trustee.

          SECTION 11.03 REINSTATEMENT.

          If the Trustee is unable to apply any money in accordance with Section
11.01 by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Issuer's obligations under this Indenture and
the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 11.01 until such time as the Trustee is permitted to apply
all such money in accordance with Section 11.01.

                            [SIGNATURE PAGE FOLLOWS]

                                       78
<PAGE>

                                                                       INDENTURE
                                                    DATED AS OF NOVEMBER 1, 2002

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, all as of the day and year first above written.

                                     DVI RECEIVABLES XVIII, L.L.C.

                                     By:  DVI Receivables Corp. VIII,
                                              its Managing Member

                                     By:_________________________________
                                     Name: Matthew E. Goldenberg
                                     Title: Vice President

                                     U.S. BANK NATIONAL ASSOCIATION
                                     (as successor to U.S. Bank Trust National
                                     Association), as Trustee

                                     By:_________________________________
                                     Name: Eve D. Kaplan
                                     Title: Vice President

<PAGE>

                                   SCHEDULE 1

                                CONTRACT SCHEDULE

                                   [See Tab 4]

<PAGE>

                                   EXHIBIT A-1
                                  TO INDENTURE

                            [FORM OF CLASS A-1 NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS A-1 NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS A-1 NOTES WILL NOT GIVE RISE TO A
PROHIBITED TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

No. 1                                           Principal Amount $[            ]
Due: November 12, 2003                          CUSIP No. [             ]

            [    ]%  ASSET-BACKED NOTE, SERIES 2002-2, CLASS A-1

                                      A-1-1

<PAGE>

     DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company (the
"ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                    ]
AND [ ]/100 DOLLARS ($[      ]) in monthly installments equal to the sum of (i)
the Class A-1 Monthly Principal, (ii) the Class A-1 Overdue Principal and (iii)
any other principal that may be due hereon pursuant to the Indenture during an
Amortization Event together with (i) the Class A-1 Monthly Interest and (ii) the
Class A-1 Overdue Interest due thereon on the twelfth day of each month (or if
such date is not a Business Day, the next succeeding Business Day, commencing
December 12, 2002 (each, a "PAYMENT DATE"), and not later than November 12,
2003, all remaining principal and interest (computed on the basis of a 360-day
year of actual number of days elapsed) are due and payable in their entirety as
set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class A-1 Notes of the
Issuer designated as its [      ]% Asset-Backed Notes, Series 2002-2, Class A-1
with aggregate principal amount of $[              ] and to be issued under an
Indenture, dated as of November 1, 2002 (herein called the "INDENTURE"), between
the Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally and ratably without prejudice, priority, or
distinction between any Note of the same tranche and any other Note of the same
tranche by reason of difference in time of issuance or otherwise, and also
secures the payment of certain other amounts and certain other obligations as
set forth in the Indenture. This Note is issued under and is subject to the
terms, provisions and conditions of the Indenture, to which Indenture the Holder
of this Note by virtue of the acceptance hereof assents and by which such Holder
is bound.

          Each Class A-1 Noteholder by acceptance of its Class A-1 Note (and any
Person which is a beneficial owner of any interest in a Class A-1 Note, by
virtue of such Persons' acquisition of a beneficial interest therein) agrees to
treat the Class A-1 Notes (or beneficial interest therein) for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or measured by income, as indebtedness. Each Class A-1 Noteholder agrees that it
will cause any Person acquiring an interest in a Class A-1 Note through it to
acknowledge the Class A-1 Notes'

                                      A-1-2

<PAGE>

characterization as indebtedness and to treat the Class A-1 Notes as
indebtedness for such tax purposes.

          Each prospective initial Noteholder acquiring Class A-1 Notes, each
prospective transferee acquiring a Class A-1 Note, and each prospective owner
(or transferee thereof) of a beneficial interest in a Class A-1 Note (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class A-1 Note on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with the assets of a Plan; or (2) the acquisition and holding of the Class A-1
Note will not give rise to a nonexempt prohibited transaction under Section
406(a) of ERISA or Section 4975 of the Code for which a statutory or
administrative exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Class A-1 Note is registrable in the
Note Register, upon surrender of this Class A-1 Note for registration of
transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Issuer and the Trustee duly executed by, the holder
hereof or his attorney duly authorized in writing, and thereupon one or more new
Class A-1 Notes, of authorized denominations and for the same original aggregate
principal amount, will be issued to the designated transferee or transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Class A-1 Note for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Class A-1 Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Class A-1 Note and the Indenture may be amended or supplemented
as set forth in the Indenture.

                                      A-1-3

<PAGE>

          By accepting this Class A-1 Note, the holder hereof irrevocably
appoints the Trustee under the Indenture as the special attorney-in-fact for the
holder vested with full power on behalf of the holder to effect and enforce the
rights of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Class A-1 Note which are defined in
the Indenture and not otherwise defined herein shall have the meanings assigned
to them in the Indenture.

          As provided in the Indenture, this Class A-1 Note and the Indenture
shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Class A-1 Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

          This Class A-1 Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                      A-1-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                        DVI RECEIVABLES XVIII, L.L.C.

                                        By:  DVI Receivables Corp. VIII,
                                                 its Managing Member

                                        By:____________________________________
                                        Name:
                                        Title:

Dated:_____________________

This is one of the Notes referred to in the within mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:____________________________________
         Authorized Signatory
Name:
Title:

                                      A-1-5

<PAGE>

                                  EXHIBIT A-2a
                                  TO INDENTURE
                                  ------------

                           [FORM OF CLASS A-2a NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS A-2a NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS A-2a NOTES WILL NOT GIVE RISE TO A
PROHIBITED TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

No. 1                                             Principal Amount $[          ]
Due: November 12, 2004                            CUSIP No. [            ]

            [     ]% ASSET-BACKED NOTE, SERIES 2002-2, CLASS A-2a

                                     A-2a-1

<PAGE>

          DVI RECEIVABLES XVIII, L.L.C., a limited liability company (the
"ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                  ]
AND [        ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum of
(i) the Class A-2a Monthly Principal, (ii) the Class A-2a Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class A-2a Monthly Interest
and (ii) the Class A-2a Overdue Interest due thereon on the twelfth day of each
month (or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
November 12, 2004, all remaining principal and interest (computed on the basis
of a 360-day year of actual number of days elapsed) are due and payable in their
entirety as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class A-2a Notes of the
Issuer designated as its [     ]% Asset-Backed Notes, Series 2002-2, Class A-2a
with aggregate principal amount of $[         ] and to be issued under an
Indenture, dated as of November 1, 2002 (herein called the "INDENTURE"), between
the Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally and ratably without prejudice, priority, or
distinction between any Note of the same tranche and any other Note of the same
tranche by reason of difference in time of issuance or otherwise, and also
secures the payment of certain other amounts and certain other obligations as
set forth in the Indenture. This Note is issued under and is subject to the
terms, provisions and conditions of the Indenture, to which Indenture the Holder
of this Note by virtue of the acceptance hereof assents and by which such Holder
is bound.

          Each Class A-2a Noteholder by acceptance of its Class A-2a Note (and
any Person which is a beneficial owner of any interest in a Class A-2a Note, by
virtue of such Persons' acquisition of a beneficial interest therein) agrees to
treat the Class A-2a Notes (or beneficial interest therein) for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or measured by income, as indebtedness. Each Class A-2a Noteholder agrees that
it will cause any Person acquiring an interest in a Class A-2a Note through it
to acknowledge the Class A-2a Notes'

                                     A-2a-2

<PAGE>

characterization as indebtedness and to treat the Class A-2a Notes as
indebtedness for such tax purposes.

          Each prospective initial Noteholder acquiring Class A-2a Notes, each
prospective transferee acquiring a Class A-2a Note, and each prospective owner
(or transferee thereof) of a beneficial interest in a Class A-2a Note (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class A-2a Notes
on behalf of, as investment manager of, as named fiduciary of or with the assets
of a Plan; or (2) the acquisition and holding of the Class A-2a Notes will not
give rise to a nonexempt nonexempt prohibited transaction under Section 406(a)
of ERISA or Section 4975 of the Code for which a statutory or administrative
exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Class A-2a Note is registrable in the
Note Register, upon surrender of this Class A- 2a Note for registration of
transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Issuer and the Trustee duly executed by, the holder
hereof or his attorney duly authorized in writing, and thereupon one or more new
Class A-2a Notes, of authorized denominations and for the same original
aggregate principal amount, will be issued to the designated transferee or
transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Class A-2a Note for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Class A-2a Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Class A-2a Note and the Indenture may be amended or supplemented
as set forth in the Indenture.

                                     A-2a-3

<PAGE>

          By accepting this Class A-2a Note, the holder hereof irrevocably
appoints the Trustee under the Indenture as the special attorney-in-fact for the
holder vested with full power on behalf of the holder to effect and enforce the
rights of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Class A-2a Note which are defined
in the Indenture and not otherwise defined herein shall have the meanings
assigned to them in the Indenture.

          As provided in the Indenture, this Class A-2a Note and the Indenture
shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Class A-2a Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

          This Class A-2a Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                     A-2a-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                        DVI RECEIVABLES XVIII, L.L.C.

                                        By:  DVI Receivables Corp. VIII,
                                                 its Managing Member

                                        By:_______________________________
                                        Name:
                                        Title:

Dated:___________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:__________________________________
         Authorized Signatory
Name:
Title:

                                     A-2a-5

<PAGE>

                                  EXHIBIT A-2b
                                  TO INDENTURE

                           [FORM OF CLASS A-2b NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS A-2b NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS A-2b NOTES WILL NOT GIVE RISE TO A
PROHIBITED TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

No. 1                                             Principal Amount $[         ]
Due: November 12, 2004                            CUSIP No. [          ]

             [        ]% ASSET-BACKED NOTE, SERIES 2002-2, CLASS A-2b

                                     A-2b-1

<PAGE>

          DVI RECEIVABLES XVIII, L.L.C., a limited liability company (the
"ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                   ]
AND [      ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum of (i)
the Class A-2b Monthly Principal, (ii) the Class A-2b Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class A-2b Monthly Interest
and (ii) the Class A-2b Overdue Interest due thereon on the twelfth day of each
month (or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
November 12, 2004, all remaining principal and interest (computed on the basis
of a 360-day year of twelve 30-day months) are due and payable in their entirety
as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class A-2b Notes of the
Issuer designated as its [      ]% Asset-Backed Notes, Series 2002-2, Class A-2b
with aggregate principal amount of $[      ] and to be issued under an
Indenture, dated as of November 1, 2002 (herein called the "INDENTURE"), between
the Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally and ratably without prejudice, priority, or
distinction between any Note of the same tranche and any other Note of the same
tranche by reason of difference in time of issuance or otherwise, and also
secures the payment of certain other amounts and certain other obligations as
set forth in the Indenture. This Note is issued under and is subject to the
terms, provisions and conditions of the Indenture, to which Indenture the Holder
of this Note by virtue of the acceptance hereof assents and by which such Holder
is bound.

          Each Class A-2b Noteholder by acceptance of its Class A-2b Note (and
any Person which is a beneficial owner of any interest in a Class A-2b Note, by
virtue of such Persons' acquisition of a beneficial interest therein) agrees to
treat the Class A-2b Notes (or beneficial interest therein) for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or measured by income, as indebtedness. Each Class A-2b Noteholder agrees that
it will cause any Person acquiring an interest in a Class A-2b Note through it
to acknowledge the Class A-2b Notes'

                                     A-2b-2

<PAGE>

characterization as indebtedness and to treat the Class A-2b Notes as
indebtedness for such tax purposes.

          Each prospective initial Noteholder acquiring Class A-2b Notes, each
prospective transferee acquiring a Class A-2b Note, and each prospective owner
(or transferee thereof) of a beneficial interest in a Class A-2b Note (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class A-2b Notes
on behalf of, as investment manager of, as named fiduciary of or with the assets
of a Plan; or (2) the acquisition and holding of the Class A-2b Notes will not
give rise to a nonexempt prohibited transaction under Section 406(a) of ERISA or
Section 4975 of the Code for which a statutory or administrative exemption is
unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Class A-2b Note is registrable in the
Note Register, upon surrender of this Class A-2b Note for registration of
transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Issuer and the Trustee duly executed by, the holder
hereof or his attorney duly authorized in writing, and thereupon one or more new
Class A-2b Notes, of authorized denominations and for the same original
aggregate principal amount, will be issued to the designated transferee or
transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Class A-2b Note for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Class A-2b Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Class A-2b Note and the Indenture may be amended or supplemented
as set forth in the Indenture.

                                     A-2b-3

<PAGE>

          By accepting this Class A-2b Note, the holder hereof irrevocably
appoints the Trustee under the Indenture as the special attorney-in-fact for the
holder vested with full power on behalf of the holder to effect and enforce the
rights of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Class A-2b Note which are defined
in the Indenture and not otherwise defined herein shall have the meanings
assigned to them in the Indenture.

          As provided in the Indenture, this Class A-2b Note and the Indenture
shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Class A-2b Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

          This Class A-2b Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                     A-2b-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                        DVI RECEIVABLES XVIII, L.L.C.

                                        By:  DVI Receivables Corp. VIII,
                                                 its Managing Member

                                        By:_______________________________
                                        Name:
                                        Title:

Dated:____________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:________________________________
         Authorized Signatory
Name:
Title:

                                     A-2b-5

<PAGE>

                                  EXHIBIT A-3a
                                  TO INDENTURE
                                  ------------

                           [FORM OF Class A-3a NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE Class A-3a NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE Class A-3a NOTES WILL NOT GIVE RISE TO A
PROHIBITED TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

No. 1                                                Principal Amount $[       ]
Due: September 12, 2010                              CUSIP No. [       ]

                                     A-3a-1

<PAGE>

     One-Month LIBOR plus [ ]% ASSET-BACKED NOTE, SERIES 2002-2, Class A-3a

     DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company (the
"ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                    ]
AND [           ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum of
(i) the Class A-3a Monthly Principal, (ii) the Class A-3a Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class A-3a Monthly Interest
and (ii) the Class A-3a Overdue Interest due thereon on the twelfth day of each
month or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
September 12, 2010, all remaining principal and interest (computed on the basis
of a 360-day year of actual number of days elapsed) are due and payable in their
entirety as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class A-3a Notes of the
Issuer designated as its One-Month LIBOR plus [    ]% Asset-Backed Notes, Series
2002-2, Class A-3a with aggregate principal amount of $[          ] and to be
issued under an Indenture, dated as of November 1, 2002 (herein called the
"INDENTURE"), between the Issuer and U.S. Bank National Association (as
successor to U.S. Bank Trust National Association), as trustee (herein called
the "TRUSTEE", which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
and immunities thereunder of the Issuer, the Trustee, and the holders of the
Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered. The Trust Property secures the Notes equally and ratably without
prejudice, priority, or distinction between any Note of the same tranche and any
other Note of the same tranche by reason of difference in time of issuance or
otherwise, and also secures the payment of certain other amounts and certain
other obligations as set forth in the Indenture. This Note is issued under and
is subject to the terms, provisions and conditions of the Indenture, to which
Indenture the Holder of this Note by virtue of the acceptance hereof assents and
by which such Holder is bound.

          Each Class A-3a Noteholder by acceptance of its Class A-3a Note (and
any Person which is a beneficial owner of any interest in a Class A-3a Note, by
virtue of such Persons' acquisition of a beneficial interest therein) agrees to
treat the Class A-3a Notes (or beneficial interest therein) for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or

                                     A-3a-2

<PAGE>

measured by income, as indebtedness. Each Class A-3a Noteholder agrees that it
will cause any Person acquiring an interest in a Class A-3a Note through it to
acknowledge the Class A-3a Notes' characterization as indebtedness and to treat
the Class A-3a Notes as indebtedness for such tax purposes.

          Each prospective initial Noteholder acquiring Class A-3a Notes, each
prospective transferee acquiring a Class A-3a Note, and each prospective owner
(or transferee thereof) of a beneficial interest in a Class A-3a Note (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class A-3a Note on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with the assets of a Plan; or (2) the acquisition and holding of the Class A-3a
Note will not give rise to a prohibited transaction under Section 406(a) of
ERISA or Section 4975 of the Code for which a statutory or administrative
exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Class A-3a Note is registrable in the
Note Register, upon surrender of this Class A- 3a Note for registration of
transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Issuer and the Trustee duly executed by, the holder
hereof or his attorney duly authorized in writing, and thereupon one or more new
Class A-3a Notes, of authorized denominations and for the same original
aggregate principal amount, will be issued to the designated transferee or
transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Class A-3a Note for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the Person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Class A-3a Note be overdue, and neither the
Issuer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This Class A-3a Note and the Indenture may be amended or supplemented
as set forth in the Indenture.

                                     A-3a-3

<PAGE>

          By accepting this Class A-3a Note, the holder hereof irrevocably
appoints the Trustee under the Indenture as the special attorney-in-fact for the
holder vested with full power on behalf of the holder to effect and enforce the
rights of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Class A-3a Note which are defined
in the Indenture and not otherwise defined herein shall have the meanings
assigned to them in the Indenture.

          As provided in the Indenture, this Class A-3a Note and the Indenture
shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Class A-3a Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

          This Class A-3a Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                     A-3a-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                          DVI RECEIVABLES XVIII, L.L.C.

                                          By:  DVI Receivables Corp. VIII,
                                                   its Managing Member

                                          By:_______________________________
                                          Name:
                                          Title:

Dated:_____________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:__________________________________
         Authorized Signatory
Name:
Title:

                                     A-3a-5

<PAGE>

                                  EXHIBIT A-3b
                                  TO INDENTURE
                                  ------------

                           [FORM OF Class A-3b NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE Class A-3b NOTES ON BEHALF OF, AS INVESTMENT MANAGER OR, AS NAMED
FIDUCIARY OF OR WITH THE ASSETS OF A PLAN; OR (2) THE ACQUISITION AND HOLDING OF
THE Class A-3b NOTES WILL NOT GIVE RISE TO A PROHIBITED TRANSACTION UNDER
SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH A STATUTORY OR
ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

                                     A-3b-1

<PAGE>

No. 1                                            Principal Amount $[           ]
Due: September 12, 2010                          CUSIP No. [         ]

         [       ]% ASSET-BACKED NOTE, SERIES 2002-2, Class A-3b

     DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company (the
"ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                     ]
AND [         ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum of
(i) the Class A-3b Monthly Principal, (ii) the Class A-3b Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class A-3b Monthly Interest
and (ii) the Class A-3b Overdue Interest due thereon on the twelfth day of each
month or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
September 12, 2010, all remaining principal and interest (computed on the basis
of a 360-day year of twelve 30-day months) are due and payable in their entirety
as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class A-3b Notes of the
Issuer designated as its [ ]% Asset-Backed Notes, Series 2002-2, Class A-3b with
aggregate principal amount of $[ ] and to be issued under an Indenture, dated as
of November 1, 2002 (herein called the "INDENTURE"), between the Issuer and U.S.
Bank National Association (as successor to U.S. Bank Trust National
Association), as trustee (herein called the "TRUSTEE", which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties, and immunities thereunder of the Issuer,
the Trustee, and the holders of the Notes and of the terms upon which the Notes
are, and are to be, authenticated and delivered. The Trust Property secures the
Notes equally and ratably without prejudice, priority, or distinction between
any Note of the same tranche and any other Note of the same tranche by reason of
difference in time of issuance or otherwise, and also secures the payment of
certain other amounts and certain other obligations as set forth in the
Indenture. This Note is issued under and is subject to the terms, provisions and
conditions of the Indenture, to which Indenture the Holder of this Note by
virtue of the acceptance hereof assents and by which such Holder is bound.

                                     A-3b-2

<PAGE>

          Each Class A-3b Noteholder by acceptance of its Class A-3b Note (and
any Person which is a beneficial owner of any interest in a Class A-3b Note, by
virtue of such Persons' acquisition of a beneficial interest therein) agrees to
treat the Class A-3b Notes (or beneficial interest therein) for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or measured by income, as indebtedness. Each Class A-3b Noteholder agrees that
it will cause any Person acquiring an interest in a Class A-3b Note through it
to acknowledge the Class A-3b Notes' characterization as indebtedness and to
treat the Class A-3b Notes as indebtedness for such tax purposes.

          Each prospective initial Noteholder acquiring Class A-3b Notes, each
prospective transferee acquiring a Class A-3b Note, and each prospective owner
(or transferee thereof) of a beneficial interest in a Class A-3b Note (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class A-3b Notes
on behalf of, as investment manager of, as named fiduciary of or with the assets
of a Plan; or (2) the acquisition and holding of the Class A-3b Notes will not
give rise to a nonexempt prohibited transaction under Section 406(a) of ERISA or
Section 4975 of the Code for which a statutory or administrative exemption is
unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Class A-3b Note is registrable in the
Note Register, upon surrender of this Class A-3b Note for registration of
transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Issuer and the Trustee duly executed by, the holder
hereof or his attorney duly authorized in writing, and thereupon one or more new
Class A-3b Notes, of authorized denominations and for the same original
aggregate principal amount, will be issued to the designated transferee or
transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Class A-3b Note for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the Person in whose name this Note

                                     A-3b-3

<PAGE>

is registered as the owner hereof for all purposes, whether or not this Class
A-3b Note be overdue, and neither the Issuer, the Trustee nor any such agent
shall be affected by notice to the contrary.

          This Class A-3b Note and the Indenture may be amended or supplemented
as set forth in the Indenture.

          By accepting this Class A-3b Note, the holder hereof irrevocably
appoints the Trustee under the Indenture as the special attorney-in-fact for the
holder vested with full power on behalf of the holder to effect and enforce the
rights of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Class A-3b Note which are defined
in the Indenture and not otherwise defined herein shall have the meanings
assigned to them in the Indenture.

          As provided in the Indenture, this Class A-3b Note and the Indenture
shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Class A-3b Note shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

          This Class A-3b Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                     A-3b-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                            DVI RECEIVABLES XVIII, L.L.C.

                                            By:  DVI Receivables Corp. VIII,
                                                     its Managing Member

                                            By:_______________________________
                                            Name:
                                            Title:

Dated:____________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:__________________________________
         Authorized Signatory
Name:
Title:

                                     A-3b-5

<PAGE>

                                    EXHIBIT B
                                  TO INDENTURE
                                  ------------

                             [FORM OF CLASS B NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS B NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS B NOTES WILL NOT GIVE RISE TO A PROHIBITED
TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

                                       B-1

<PAGE>

No. 1                                          Principal Amount $[             ]
Due: September 12, 2010                        CUSIP No. [            ]

                  [        ]% ASSET-BACKED NOTE, SERIES 2002-2, CLASS B

          DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company
(the "ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                     ]
AND [           ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum of
(i) the Class B Monthly Principal, (ii) the Class B-1 Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class B Monthly Interest and
(ii) the Class B Overdue Interest due thereon on the twelfth day of each month
(or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
September 12, 2010, all remaining principal and interest (computed on the basis
of a 360-day year of twelve 30-day months) are due and payable in their entirety
as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class B Notes of the
Issuer designated as its [      ]% Asset-Backed Notes, Series 2002-2, Class B
with aggregate principal amount of $[               ] and to be issued under an
Indenture, dated as of November 1, 2002 (herein called the "INDENTURE"), between
the Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally and ratably without prejudice, priority, or
distinction between any Note of the same class and any other Note of the same
class by reason of difference in time of issuance or otherwise, and also secures
the payment of certain other amounts and certain other obligations as set forth
in the Indenture. This Note is issued under and is subject to the terms,
provisions and conditions of the Indenture, to which Indenture the Holder of
this Note by virtue of the acceptance hereof assents and by which such Holder is
bound.

                                       B-2

<PAGE>

          Each Class B Noteholder by acceptance of its Class B Note (and any
Person which is a beneficial owner of any interest in a Class B Note, by virtue
of such Persons' acquisition of a beneficial interest therein) agrees to treat
the Class B Notes (or beneficial interest therein) for purposes of federal,
state and local income or franchise taxes and any other tax imposed on or
measured by income, as indebtedness. Each Class B Noteholder agrees that it will
cause any Person acquiring an interest in a Class B Note through it to
acknowledge the Class B Notes' characterization as indebtedness and to agree to
comply with the Indenture as to treatment of the Class B Notes as indebtedness
for such tax purpose.

          Each prospective initial Noteholder acquiring Class B Notes, each
prospective transferee acquiring the Class B Notes, and each prospective owner
(or transferee thereof) of a beneficial interest in Class B Notes (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class B Notes on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with the assets of a Plan; or (2) the acquisition and holding of the Class B
Notes will not give rise to a nonexempt prohibited transaction under Section
406(a) of ERISA or Section 4975 of the Code for which a statutory or
administrative exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Note is registrable in the Note
Register, upon surrender of this Note for registration of transfer at the office
or agency designated by the Issuer pursuant to the Indenture, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee duly executed by, the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same original aggregate principal amount, will be
issued to the designated transferee or transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

                                       B-3

<PAGE>

          This Note and the Indenture may be amended or supplemented as set
forth in the Indenture.

          By accepting this Note, the holder hereof irrevocably appoints the
Trustee under the Indenture as the special attorney-in-fact for the holder
vested with full power on behalf of the holder to effect and enforce the rights
of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

          As provided in the Indenture, this Note and the Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

          This Class B Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                       B-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                          DVI RECEIVABLES XVIII, L.L.C.

                                          By:  DVI Receivables Corp. VIII,
                                                   its Managing Member

                                          By:_______________________________
                                          Name:
                                          Title:

Dated:______________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:____________________________________
         Authorized Signatory
Name:
Title:

                                       B-5

<PAGE>

                                    EXHIBIT C
                                  TO INDENTURE
                                  ------------

                             [FORM OF CLASS C NOTES]

     NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS C NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS C NOTES WILL NOT GIVE RISE TO A PROHIBITED
TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

                                       C-1

<PAGE>

No. 1                                           Principal Amount $[            ]
Due: September 12, 2010                         CUSIP No. [           ]

              [     ]% ASSET-BACKED NOTE, SERIES 2002-2, CLASS C

          DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company
(the "ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                     ]
AND [            ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum
of (i) the Class C Monthly Principal, (ii) the Class C Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class C Monthly Interest and
(ii) the Class C Overdue Interest due thereon on the twelfth day of each month
(or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
September 12, 2010, all remaining principal and interest (computed on the basis
of a 360-day year of twelve 30-day months) are due and payable in their entirety
as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date, or Redemption Record Date, as applicable,
for such Payment Date, by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class C Notes of the
Issuer designated as its [       ]% Asset-Backed Notes, Series 2002-2, Class C
with aggregate principal amount of $[       ] and to be issued under an
Indenture, dated as of November 1, 2002 (herein called the "INDENTURE"), between
the Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally and ratably without prejudice, priority, or
distinction between any Note of the same class and any other Note of the same
class by reason of difference in time of issuance or otherwise, and also secures
the payment of certain other amounts and certain other obligations as set forth
in the Indenture. This Note is issued under and is subject to the terms,
provisions and conditions of the Indenture, to which Indenture the Holder of
this Note by virtue of the acceptance hereof assents and by which such Holder is
bound.

                                       C-2

<PAGE>

          Each Class C Noteholder by acceptance of its Class C Note (and any
Person which is a beneficial owner of any interest in a Class C Note, by virtue
of such Persons' acquisition of a beneficial interest therein) agrees to treat
the Class C Notes (or beneficial interest therein) for purposes of federal,
state and local income or franchise taxes and any other tax imposed on or
measured by income, as indebtedness. Each Class C Noteholder agrees that it will
cause any Person acquiring an interest in a Class C Note through it to
acknowledge the Class C Notes' characterization as indebtedness and to agree to
comply with the Indenture as to treatment of the Class C Notes as indebtedness
for such tax purpose.

          Each prospective initial Noteholder acquiring Class C Notes, each
prospective transferee acquiring the Class C Notes, and each prospective owner
(or transferee thereof) of a beneficial interest in Class C Notes (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class C Notes on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with the assets of a Plan; or (2) the acquisition and holding of the Class C
Notes will not give rise to a nonexempt prohibited transaction under Section
406(a) of ERISA or Section 4975 of the Code for which a statutory or
administrative exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Note is registrable in the Note
Register, upon surrender of this Note for registration of transfer at the office
or agency designated by the Issuer pursuant to the Indenture, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee duly executed by, the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same original aggregate principal amount, will be
issued to the designated transferee or transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

                                       C-3

<PAGE>

          This Note and the Indenture may be amended or supplemented as set
forth in the Indenture.

          By accepting this Note, the holder hereof irrevocably appoints the
Trustee under the Indenture as the special attorney-in-fact for the holder
vested with full power on behalf of the holder to effect and enforce the rights
of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

          As provided in the Indenture, this Note and the Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

          This Class C Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                       C-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                         DVI RECEIVABLES XVIII, L.L.C.

                                         By:  DVI Receivables Corp. VIII,
                                                  its Managing Member

                                         By:_______________________________
                                         Name:
                                         Title:

Dated:______________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:____________________________________
         Authorized Signatory
Name:
Title:

                                       C-5

<PAGE>

                                    EXHIBIT D
                                  TO INDENTURE
                                  ------------

                             [FORM OF CLASS D NOTES]

NO BENEFICIAL OWNERS OF THIS NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF
PRINCIPAL OR INTEREST HEREON UNLESS THE REQUIRED NOTES HAVE BEEN DELIVERED
PURSUANT TO THE TERMS OF THE INDENTURE.

     NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD, OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS D NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS D NOTES WILL NOT GIVE RISE TO A PROHIBITED
TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

                                       D-1

<PAGE>

No. 1                                           Principal Amount $[            ]
Due: September 12, 2010                         CUSIP No. [           ]

              [      ]% ASSET-BACKED NOTE, SERIES 2002-2, CLASS D

          DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company
(the "ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                     ]
AND [            ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum
of (i) the Class D Monthly Principal, (ii) the Class D Overdue Principal and
(iii) any other principal that may be due hereon pursuant to the Indenture
during an Amortization Event together with (i) the Class D Monthly Interest and
(ii) the Class D Overdue Interest due thereon on the twelfth day of each month
(or if such date is not a Business Day, the next succeeding Business Day,
commencing December 12, 2002 (each, a "PAYMENT DATE"), and not later than
September 12, 2010, all remaining principal and interest (computed on the basis
of a 360-day year of actual number of days elapsed) are due and payable in their
entirety as set forth in the Indenture.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date or Redemption Date, as applicable, for such
Payment Date, by wire transfer of immediately available funds to the account and
number specified in the Note Register on such Record Date for such Person or, if
no such account or number is so specified, then by check mailed to such Person's
address as it appears in the Note Register on such Record Date. The holder
hereof shall surrender this Note at the principal Corporate Trust Office of the
Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class D Notes of the
Issuer designated as its [     ]% Asset-Backed Notes, Series 2002-2, Class D
with aggregate principal amount of $[           ] and to be issued under an
Indenture dated as of November 1, 2002 (herein called the "INDENTURE"), between
the Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally and ratably without prejudice, priority, or
distinction between any Note of the same class and any other Note of the same
class by reason of difference in time of issuance or otherwise, and also secures
the payment of certain other amounts and certain other obligations as set forth
in the Indenture. This Note is issued under and is subject to the terms,
provisions and conditions of the Indenture, to which Indenture the Holder of
this Note by virtue of the acceptance hereof assents and by which such Holder is
bound.

                                       D-2

<PAGE>

          Each Class D Noteholder by acceptance of its Class D Note (and any
Person that is a beneficial owner of any interest in a Class D Note, by virtue
of such Person's acquisition of a beneficial interest therein) agrees to treat
the Class D Notes for purposes of federal, state and local income or franchise
taxes and any other tax imposed on or measured by income, as indebtedness. Each
Class D Noteholder agrees that it will cause any Person acquiring an interest in
a Class D Note through it to acknowledge the Class D Notes' characterization as
indebtedness and to agree to comply with the Indenture as to treatment of the
Class D Notes as indebtedness for such tax purposes.

          Each prospective initial Noteholder acquiring Class D Notes, each
prospective transferee acquiring the Class D Notes, and each prospective owner
(or transferee thereof) of a beneficial interest in Class D Notes (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class D Notes on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with the assets of a Plan; or (2) the acquisition and holding of the Class D
Notes will not give rise to a nonexempt prohibited transaction under Section
406(a) of ERISA or Section 4975 of the Code for which a statutory or
administrative exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Note is registrable in the Note
Register, upon surrender of this Note for registration of transfer at the office
or agency designated by the Issuer pursuant to the Indenture, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee duly executed by, the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same original aggregate principal amount, will be
issued to the designated transferee or transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

                                       D-3

<PAGE>

          This Note and the Indenture may be amended or supplemented as set
forth in the Indenture.

          By accepting this Note, the holder hereof irrevocably appoints the
Trustee under the Indenture as the special attorney-in-fact for the holder
vested with full power on behalf of the holder to effect and enforce the rights
of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

          As provided in the Indenture, this Note and the Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

          This Class D Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

[Signature page follows]

                                       D-4

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                         DVI RECEIVABLES XVIII, L.L.C.

                                         By:  DVI Receivables Corp. VIII,
                                                  its Managing Member

                                         By:_______________________________
                                         Name:
                                         Title:

Dated:___________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:____________________________________
         Authorized Signatory
Name:
Title:

                                       D-5

<PAGE>

                                    EXHIBIT E
                                  TO INDENTURE
                                  ------------

                             [FORM OF CLASS E NOTES]

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     BY ACCEPTANCE OF THIS NOTE, THE HOLDER AND ANY BENEFICIAL OWNER AGREES TO
TREAT THIS NOTE AS INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES.

     THIS NOTE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "ACT") OR THE SECURITIES LAW OF ANY STATE. ANY RESALE,
TRANSFER OR OTHER DISPOSITION OF THIS NOTE WITHOUT SUCH REGISTRATION OR
QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT REQUIRE SUCH
REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION
2.04 OF THE INDENTURE REFERRED TO HEREIN.

     BY ITS ACCEPTANCE HEREOF, THE HOLDER AND ANY BENEFICIAL OWNER IS DEEMED TO
HAVE REPRESENTED TO THE ISSUER, THE TRUSTEE, THE SERVICER AND ANY SUCCESSOR
SERVICER THAT EITHER (1) IT IS NOT A PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA OR SECTION 4975 OF THE CODE ("PLAN") AND IT IS NOT DIRECTLY OR INDIRECTLY
ACQUIRING THE CLASS E NOTES ON BEHALF OF, AS INVESTMENT MANAGER OF, AS NAMED
FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN; OR (2) THE
ACQUISITION AND HOLDING OF THE CLASS E NOTES WILL NOT GIVE RISE TO A PROHIBITED
TRANSACTION UNDER SECTION 406(a) OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH
A STATUTORY OR ADMINISTRATIVE EXEMPTION IS UNAVAILABLE.

     THIS CLASS E NOTE MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE
TRANSFERRED UNLESS (i) SUCH TRANSFEREE IS A "UNITED STATES PERSON" AS DEFINED IN
SECTION 7701(a)(30) OF THE CODE; (ii) (A) SUCH TRANSFEREE IS NOT A GRANTOR
TRUST, PARTNERSHIP OR S CORPORATION FOR UNITED STATES FEDERAL

                                       E-1

<PAGE>

INCOME TAX PURPOSES OR (B) SUCH TRANSFEREE IS A GRANTOR TRUST, PARTNERSHIP OR S
CORPORATION FOR UNITED STATES FEDERAL INCOME TAX PURPOSES, BUT AFTER GIVING
EFFECT TO SUCH TRANSFER OF CLASS E NOTES TO SUCH TRANSFEREE, SUBSTANTIALLY ALL
OF THE VALUE OF THE INTEREST OF AN OWNER OF THE TRANSFEREE IN THE TRANSFEREE
WILL NOT BE ATTRIBUTABLE TO THE PASS-THROUGH ENTITY'S OWNERSHIP INTEREST IN
SECURITIES ISSUED BY THE ISSUER OTHER THAN THE CLASS A, CLASS B, CLASS C AND
CLASS D NOTES AND (ii) FOR THE PURPOSES OF SECTION 7704 OF THE CODE AND THE
TREASURY REGULATIONS PROMULGATED THEREUNDER, AFTER SUCH TRANSFER THE ISSUER
WOULD NOT BE TREATED AS HAVING MORE THAN 100 PARTNERS.

                                       E-2

<PAGE>

No. 1                                           Principal Amount $[            ]
Due: September 12, 2010                         CUSIP No. [            ]

              [     ]% ASSET-BACKED NOTE, SERIES 2002-2, CLASS E

          DVI RECEIVABLES XVIII, L.L.C., a Delaware limited liability company
(the "ISSUER"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [                                     ]
AND [           ]/100 DOLLARS ($[ ]) in monthly installments equal to the sum of
(i) the Class E Monthly Principal, (ii) the Class E Overdue Principal and (iii)
any other principal that may be due hereon pursuant to the Indenture during an
Amortization Event together with (i) the Class E Monthly Interest and (ii) the
Class E Overdue Interest due thereon on the twelfth day of each month (or if
such date is not a Business Day, the next succeeding Business Day, commencing
December 12, 2002 (each, a "PAYMENT DATE"), and not later than September 12,
2010, all remaining principal and interest (computed on the basis of a 360-day
year of actual number of days elapsed) are due and payable in their entirety as
set forth in the Indenture.

          THE RIGHTS TO RECEIVE PAYMENTS WITH RESPECT TO THIS CLASS E-1 NOTE ARE
SUBORDINATE TO THE PRIOR PAYMENT IN FULL ON EACH PAYMENT DATE OF CERTAIN AMOUNTS
DUE AND PAYABLE ON THE CLASS A NOTES, THE CLASS B NOTES, THE CLASS C NOTES AND
THE CLASS D NOTES AS PROVIDED IN THE INDENTURE.

          Payments of principal and interest on this Note shall be made on each
Payment Date in such coin or currency of the United States of America as at such
time is legal tender for payment of public and private debts to the Person in
whose name this Note (or one or more Predecessor Notes) is registered at the
close of business on the Record Date or Redemption Date, as applicable, for such
Payment Date, which shall be the last Business Day of the month preceding the
month in which the Payment Date occurs (or in the case of the initial Payment
Date, the Closing Date), by wire transfer of immediately available funds to the
account and number specified in the Note Register on such Record Date for such
Person or, if no such account or number is so specified, then by check mailed to
such Person's address as it appears in the Note Register on such Record Date.
The holder hereof shall surrender this Note at the principal Corporate Trust
Office of the Trustee for the final installment of principal of this Note.

          This Note is one of a duly authorized issue of Class E Notes of the
Issuer designated as its [   ]% Asset-Backed Notes, Series 2002-2, Class E with
aggregate principal amount of $[          ] and to be issued under an Indenture
dated as of November [ ], 2002 (herein called the "INDENTURE"), between the
Issuer and U.S. Bank National Association (as successor to U.S. Bank Trust
National Association), as trustee (herein called the "TRUSTEE", which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, and immunities thereunder of
the Issuer, the Trustee, and the holders of the Notes and of the terms upon
which the Notes are, and are to be, authenticated and delivered. The Trust
Property secures the Notes equally

                                       E-3

<PAGE>

and ratably without prejudice, priority, or distinction between any Note of the
same class and any other Note of the same class by reason of difference in time
of issuance or otherwise, and also secures the payment of certain other amounts
and certain other obligations as set forth in the Indenture. This Note is issued
under and is subject to the terms, provisions and conditions of the Indenture,
to which Indenture the Holder of this Note by virtue of the acceptance hereof
assents and by which such Holder is bound.

          The Issuer, the Trustee and each Class E Noteholder by acceptance of
its Class E Note (and any Person that is a beneficial owner of any interest in a
Class E Note, by virtue of such Person's acquisition of a beneficial interest
therein) agrees to treat the Class E Notes for purposes of federal, state and
local income or franchise taxes (and any other tax imposed on or measured by
income) as indebtedness. Each Class E Noteholder agrees that it will cause any
Person acquiring an interest in a Class E Note through it to acknowledge the
Class E Notes' characterization as indebtedness and to agree to comply with this
Indenture as to treatment of the Class E Notes as indebtedness for such tax
purposes.

          Each prospective initial Noteholder acquiring Notes, each prospective
transferee acquiring the Class E Notes, and each prospective owner (or
transferee thereof) of a beneficial interest in Class E Notes (each a
"PROSPECTIVE OWNER") will be deemed to have represented by such purchase to the
Issuer, the Trustee, the Servicer and any successor Servicer that either (1) it
is not a plan within the meaning of Section 3(3) of ERISA or Section 4975 of the
Code ("PLAN") and is not directly or indirectly acquiring the Class E Notes on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with the assets of a Plan; or (2) the acquisition and holding of the Class E
Notes will not give rise to a nonexempt prohibited transaction under Section
406(a) of ERISA or Section 4975 of the Code for which a statutory or
administrative exemption is unavailable.

          If an Indenture Event of Default or Amortization Event shall occur and
be continuing, the Notes may be declared due and payable in the manner and with
the effect provided in the Indenture.

          As provided in the Indenture and subject to the limitations set forth
therein and above, the transfer of this Note is registrable in the Note
Register, upon surrender of this Note for registration of transfer at the office
or agency designated by the Issuer pursuant to the Indenture, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee duly executed by, the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same original aggregate principal amount, will be
issued to the designated transferee or transferees.

          The Notes may be redeemed by the Issuer, in whole but not in part, at
the redemption price set forth in the Indenture on any Payment Date on which the
Aggregate Discounted Contract Balance is less than 10% of the Initial Aggregate
Discounted Contract Balance in the manner provided in the Indenture.

          The Notes are issuable only in registered form without coupons in
denominations as provided in the Indenture and subject to certain limitations
therein set forth. No service charge shall

                                       E-4

<PAGE>

be made for any such registration of transfer or exchange, but the Issuer may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

          This Note and the Indenture may be amended or supplemented as set
forth in the Indenture.

          By accepting this Note, the holder hereof irrevocably appoints the
Trustee under the Indenture as the special attorney-in-fact for the holder
vested with full power on behalf of the holder to effect and enforce the rights
of such holder and the provisions of the Indenture for the benefit of the
holder. The preceding provision in no way shall limit the right of the holder
hereof to demand payment hereunder or bring an action to enforce payment hereof.

          All capitalized terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned to
them in the Indenture.

          As provided in the Indenture, this Note and the Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York, without regard to the conflict of laws principles thereof.

          Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

          This Class E Note does not purport to summarize the Indenture and
reference is made to the Indenture for information with respect to interests,
rights, benefits, obligations, proceeds and duties evidenced hereby and the
rights, duties and immunities of the Trustee. Copies of the Indenture and all
amendments thereto will be provided to any Noteholder, at its expense, upon a
written request to the Trustee, U.S. Bank National Association, 180 Fifth
Street, St. Paul, Minnesota 55101, Attention: Structured Finance.

                            [Signature page follows]

                                       E-5

<PAGE>

          IN WITNESS WHEREOF, DVI RECEIVABLES XVIII, L.L.C. has caused this
instrument to be duly executed.

                                           DVI RECEIVABLES XVIII, L.L.C.

                                           By:  DVI Receivables Corp. VIII,
                                                    its Managing Member

                                           By:_______________________________
                                           Name:
                                           Title:

Dated:___________________

This is one of the Notes
referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION
(as successor to U.S. Bank Trust National
Association), as Trustee

By:____________________________________
         Authorized Signatory
Name:
Title:

                                       E-6

<PAGE>

                                    EXHIBIT F
                                  TO INDENTURE
                                  ------------

               [FORM OF CLASS F INSTRUMENT TO BE PROVIDED WITH ANY
          SUPPLEMENT PURSUANT TO WHICH CLASS F INSTRUMENTS ARE ISSUED]

                                       F-1

<PAGE>

                                    EXHIBIT G
                                  TO INDENTURE
                                  ------------

                                INVESTMENT LETTER
                                -----------------

                              _______________, 200_

                          DVI Receivables XVIII, L.L.C.
                                 2500 York Road
                           Jamison, Pennsylvania 18929

                         U.S. Bank National Association
                        (as successor to U.S. Bank Trust
                              National Association)
                                180 Fifth Street
                            St. Paul, Minnesota 55101

           Re:$           % Asset-Backed Notes, Series 2002-2, Class
                                  CUSIP NUMBER
                                  ------------

Ladies and Gentlemen:

          ___________________________ (the "SELLER") intends to transfer
$_____________ in aggregate principal amount of the captioned Notes to
_____________________ (the "PURCHASER").

          1. In connection with such transfer, and in accordance with Section
2.04 of the Indenture, dated as of November 1, 2002 (the "INDENTURE"; all
capitalized terms used herein without definition shall have the meanings
ascribed to such terms in the Indenture), between DVI Receivables XVIII, L.L.C.
(the "ISSUER") and U.S. Bank National Association (as successor U.S. Bank Trust
National Association), not in its individual capacity but solely as Trustee (the
"TRUSTEE"), pursuant to which the Notes were issued, the Seller hereby certifies
to you the following facts: Neither the Seller nor anyone acting on its behalf
has offered, transferred, pledged, sold or otherwise disposed of the Notes, any
interest in the Notes or any other similar security to, or solicited any offer
to buy or accept a transfer, pledge or other disposition of the Notes, any
interest in the Notes or any other similar security with, any person in any
manner, or made any general solicitation by means of general advertising or in
any other manner, or taken any other action which would constitute a
distribution of the Notes under the Securities Act of 1933, as amended (the
"1933 ACT"), or under state securities laws, or which would render the
disposition of the Notes a violation of Section 5 of the 1933 Act or applicable
state securities laws or require registration pursuant thereto.

                                       G-1

<PAGE>

          2. The Purchaser warrants and represents to, and covenants with, the
Trustee pursuant to Section 2.04 of the Indenture that:

          (a) The Purchaser agrees to be bound, as Noteholder, by all of the
     terms, covenants and conditions of the Indenture and the Notes, and from
     and after the date hereof, the Purchaser assumes for the benefit of each of
     the Trustee and the Seller all of the Seller's obligations as Noteholder
     thereunder;

          (b) The Purchaser understands that the Notes have not been and may
     never be registered under the 1933 Act or the securities laws of any state;

          (c) The Purchaser is acquiring the Notes for investment for its own
     account or the account of another qualified institutional buyer (within the
     meaning of Rule 144A under the 1933 Act) only and not for any other person
     or with a view to the distribution thereof in violation of applicable
     securities laws;

          (d) The Purchaser considers itself a substantial, sophisticated
     institutional investor having such knowledge and experience in financial
     and business matters that it is capable of evaluating the merits and risks
     of investment in the Notes;

          (e) The Purchaser has been furnished with all information regarding
     the Notes that it has requested from the Seller or the Trustee and has been
     afforded the opportunity to ask all questions it reasonably desires to ask
     of the Seller (and all such questions have been answered to the Purchaser's
     satisfaction);

          (f) Neither the Purchaser nor anyone acting on its behalf has offered,
     transferred, pledged, sold or otherwise disposed of the Notes, any interest
     in the Notes or any other similar security to, or solicited any offer to
     buy or accept a transfer, pledge or other disposition of the Notes, any
     interest in the Notes or any other similar security from, or otherwise
     approached or negotiated with respect to the Notes, any interest in the
     Notes or any other similar security with, any person in any manner, or made
     any general solicitation by means of general advertising or in any other
     manner, or taken any other action which would constitute a distribution of
     the Notes under the 1933 Act or applicable state securities laws or which
     would render the disposition of the Notes a violation of Section 5 of the
     1933 Act or applicable state securities laws or require registration
     pursuant thereto, nor will it act, nor has it authorized or will it
     authorize any person to act, in such manner with respect to the Notes; and

          (g) The Purchaser will strictly comply with the Indenture as to
     treatment of the Class ___ Notes as indebtedness of the Seller for purposes
     of federal, state and local income or franchise taxes and any other tax
     imposed on or measured by income.

          3. The Purchaser represents and warrants to the Issuer, the Trustee,
the Servicer and any successor Servicer that either (1) it is not a plan within
the meaning of Section 3(3) of ERISA or Section 4975 of the Code ("Plan") and is
not directly or indirectly acquiring this Note on behalf of,

                                       G-2

<PAGE>

as investment manager of, as named fiduciary of, as trustee of, or with the
assets of a Plan; or (2) the acquisition and holding of this Note will not give
rise to a prohibited transaction under Section 406(a) of ERISA or section 4975
of the Code for which a statutory or administrative exemption is unavailable.

          4. The Purchaser understands and agrees with the Seller that the
Seller is transferring the Notes pursuant to the exemption from registration
under the 1933 Act provided by Rule 144A thereunder ("RULE 144A") and the
Purchaser hereby represents and warrants to the Seller and the Trustee that the
Purchaser is a "qualified institutional buyer" as defined in Rule 144A.

          5. The Purchaser acknowledges that it is familiar with Rule 144A and
understand that you are and will continue to rely on the statements made herein.

          6. [With respect to any Class E Note, the Purchaser agrees that it
shall not, and the Purchaser agrees that it will cause any person to which it
transfers an interest in any such Class E Note to agree not to, transfer, sell,
pledge, assign or otherwise grant a security interest in any Note to any Person
which is not a United States person within the meaning of Section 7701(a)(30) of
the Code, and shall not transfer, sell, pledge, assign or otherwise grant a
security interest in any such Note unless it obtains from such Person a Tax
Certificate in substantially the form attached to the Indenture. With respect to
any Class E Note, the Purchaser hereby certifies that it is not a pension,
profit sharing or employee benefit plan or other tax exempt entity and that it
is a United States person within the meaning of Section 7701(a)(30) of the
Code].

          7. The Purchaser agrees to treat the Notes, and agrees to cause any
person to whom it transfers any interest in any Note to agree to treat, for
purposes of federal, state and local income or franchise taxes (and any other
tax imposed on or measured by income) as indebtedness.

          8. This Certification may be executed in one or more counterparts and
by the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement.

          IN WITNESS WHEREOF, the parties have caused this Investment Letter to
be executed by their duly authorized officers as of the date first above
written.

___________________________                     _______________________________
Seller                                          Purchaser

By:________________________                     By:____________________________

Its:_______________________                     Its:___________________________

                                       G-3

<PAGE>

Taxpayer Identification                         Taxpayer Identification

No.____________________                         No._________________________

                                       G-4

<PAGE>

                                    EXHIBIT H

                                   [Reserved.]

                                       H-1

<PAGE>

                                    EXHIBIT I

                                 TAX CERTIFICATE

                         [With respect to Class E Notes]

     The undersigned hereby certifies and represents as follows to the parties
listed in the Indenture to which this certification relates with respect to the
Class E Notes described therein:

          This Tax Certificate ("CERTIFICATE") is delivered in connection with
the acquisition of, transfer to or possession by the undersigned, whether as
beneficial owner (the "BENEFICIAL OWNER"), or nominee on behalf of the
beneficial owner of the above-described Class E Notes.

          Each Holder must complete Part I, Part II (if the holder is a
nominee), Part III, Part IV and in all cases sign and otherwise complete this
certificate. Each Holder shall submit with this certificate an IRS Form W-9 (or
any such successor form) to such Holder.

Part I

          1. _______________ (Name of beneficial owner) is not a foreign
corporation, foreign partnership, foreign trust or foreign estate (as those
terms are defined in the Code and Treasury Regulations);

          2. The beneficial owner's office address and place of incorporation
(if applicable) is _______________; and

          3. The beneficial owner's U.S. employer identification number is
_______________.

Part II - Nominees

          If the undersigned is the nominee for the Beneficial Owner, the
undersigned certifies that this certificate has been made in reliance upon
information contained in:

          ____   an IRS Form W-9

          ____   a form such as this or substantially similar

provided to the undersigned by an appropriate person and (i) the undersigned
agrees to notify the Trustee at least thirty (30) days prior to the date that
the form relied upon becomes obsolete, and (ii) in connection with a change in
beneficial owners, the undersigned agrees to submit a new Tax Certificate to the
Trustee promptly after such change.

                                       I-1

<PAGE>

Part III - Declaration

          The undersigned, as the Beneficial Owner or a nominee thereof, agrees
to notify the Trustee within sixty (60) days of the date that the Beneficial
Owner becomes a foreign person. The undersigned understands that this
certificate may be disclosed to the Internal Revenue Service by the Trustee and
any false statement contained therein could be punishable by fines, imprisonment
or both.

Part IV - Representation

          The undersigned hereby represents, warrants and agrees that it:

          (1) (a) is purchasing the Class E Note for its own account and is the
sole beneficial owner of such Note;

               (b) either (i) is not, for federal income tax purposes, a
partnership, trust, estate or "S Corporation" (as defined in the Code) (each a
"PASS-THROUGH ENTITY") or (ii) is for federal income tax purposes, a
Pass-through Entity, but after giving effect to our purchase of such Note less
than 50 percent of the aggregate value of our assets would consist of Class E
Notes; and

               (c) such Note has not been transferred through an "established
securities market" within the meaning of Section 7704(b) of the Code;

          (2) if it is a Pass-through Entity, it covenants that the portion of
its assets consisting of Class E Notes will remain below 50 percent at all
times; and

          (3) if it resells or transfers any of the Class E Notes, it will
obtain from each subsequent purchaser or transferee a letter containing the same
representations and agreements as set forth herein.

     The undersigned understands and agrees that no initial or subsequent sale
or other transfer of a Class E Note may be made unless such sale or transfer (i)
is accompanied by delivery of a tax statement in the form of this letter, (ii)
is made to a "United States Person" as defined in Section 7701(a)(30) of the
code, as certified in such tax statement, and (iii) will not cause the Issuer to
be treated as a publicly traded partnership for United States federal income tax
purposes. Any attempted transfer, assignment, conveyance, participation or
subdivision in contravention of the preceding restrictions, as reasonably
determined by the Trustee, shall be void AB INITIO and the purported transferor,
seller or subdivider of such Class E Note shall continue to be treated as the
Holder of such Note for all purposes of the Indenture.

                                       I-2

<PAGE>

          IN WITNESS WHEREOF, the undersigned has caused this certificate to be
executed by its duly authorized officer as of the date first above written.

                                                ________________________________
                                                Purchaser

                                                By:_____________________________
                                                Its:____________________________

                                       I-3

<PAGE>

                                   APPENDIX I

          The following definition of terms used in the Contribution and
Servicing Agreement, the Indenture, the Subsequent Contract Transfer Agreement,
any Placement Agency Agreement, any Note Purchase Agreement and the Underwriting
Agreement (each such agreement as defined herein), unless the context otherwise
requires, shall have the following meanings and such meanings shall be equally
applicable to both the singular and plural forms of such terms:

          ACT: means, with respect to any Noteholder, as defined in Section
1.04(a) of the Indenture.

          AFFILIATE: means, of any specified Person, any other Person (i) which
directly or indirectly controls, or whose directors or officers directly or
indirectly control, or is controlled by, or is under common control with, such
specified Person, (ii) which beneficially owns or holds, or whose directors or
officers beneficially own or hold, 5% or more of any class of the voting stock
(or, in the case of an entity that is not a corporation, 5% of the equity
interest) of such specified Person, or (iii) 5% or more of the voting stock (or,
in the case of an entity that is not a corporation, 5% of the equity interest)
of which is owned or held by such specified Person. The term "control" as used
in the preceding sentence means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract, or
otherwise.

          AGGREGATE DISCOUNTED CONTRACT BALANCE: means, with respect to any date
of determination, the sum of the Discounted Contract Balances of all Contracts.

          AGGREGATE NOTE BALANCE: means the sum of (i) the Note Balance for the
Class A Notes, (ii) the Note Balance for the Class B Notes, (iii) the Note
Balance for the Class C Notes, (iv) the Note Balance for the Class D Notes, (v)
the Note Balance for the Class E Notes and (iv) the Note Balance for the Class F
Instrument, if any.

          AMORTIZATION EVENT: means the occurrence of any one of the following
events:

          (i) the entry by a court having jurisdiction in the premises of (A) a
          decree or order for relief in respect of DVI, Inc. in an involuntary,
          case or proceeding under any applicable federal or state bankruptcy,
          insolvency, reorganization, or other similar law or (B) a decree or
          order adjudging DVI, Inc. a bankrupt or insolvent, or approving as
          properly filed a petition servicing reorganization, arrangement,
          adjustment, or composition of or in respect of DVI, Inc. under any
          applicable federal or state law, or appointing a custodian, receiver,
          liquidator, assignee, trustee, sequestrator, or other similar official
          of DVI, Inc. or of any substantial part of its property, or ordering
          the winding up or liquidation of its affairs, and the continuance of
          any such decree or order for relief or any such other decree or order
          unstayed and in effect for a period of 90 consecutive days; or

          (ii) the commencement by DVI, Inc. of a voluntary, case or proceeding
          under any applicable federal or state bankruptcy, insolvency,
          reorganization, or other

<PAGE>

          similar law or of any other case or proceeding to be adjudicated a
          bankrupt or insolvent, or the consent by it to the entry, of a decree
          or order for relief in respect of DVI, Inc. in an involuntary case or
          proceeding under any applicable federal or state bankruptcy,
          insolvency, reorganization, or other similar law or to the
          commencement of any bankruptcy or insolvency case or proceeding
          against it, or the filing by it of a petition or answer or consent
          seeking reorganization or relief under any applicable federal or state
          law, or the consent by it to the filing of such petition or to the
          appointment of or taking possession by a custodian, receiver,
          liquidator, assignee, trustee, sequestrator, or similar official of
          DVI, Inc. or of any substantial part of its property, or the making by
          it of an assignment for the benefit of creditors, or DVI, Inc.'s
          failure to pay its debts generally, as they become due, or the taking
          of corporate action by DVI, Inc. in furtherance of any such action; or

          (iii) on and as of any Determination Date, (x) the quotient of (1) the
          sum of the Discounted Contract Balances of all Contracts listed as
          more than 90 days delinquent as of the last day of the three
          immediately preceding calendar months, divided by (2) three exceeds
          (y) the product of (1) 0.08 and (2) the quotient of (A) the sum of the
          Aggregate Discounted Contract Balance as of the last day of the three
          immediately preceding Collection Periods, divided by, (B) three; or

          (iv) as of any Determination Date, the sum of Discounted Contract
          Balances of all Contracts that have been classified as Defaulted
          Contracts since the Closing Date (such Discounted Contract Balances to
          be determined immediately prior to the classification as a Defaulted
          Contract) exceeds the product of (1) 0.06 and (2) the Aggregate
          Discounted Contract Balance on the Closing Date.

          APPLICABLE MARGIN: means with respect to the Class A-2a Notes,
one-month LIBOR plus 0.25%; with respect to the Class A-3a Notes, one-month
LIBOR plus 0.55%; with respect to the Class D Notes, one-month LIBOR plus 2.25%;
and, with respect to the Class E Notes, one-month LIBOR plus 6.00%;

          AUTHORIZED OFFICER: means, with respect to any matter, any officer of
or other Person representing the Issuer, the Transferor, the Contributor, the
Servicer, the Trustee, any Noteholder, any Instrumentholder or such other
Person, as the case may be, who is authorized to act for that party.

          AVAILABLE FUNDS: means, with respect to each Payment Date, the excess
of (i) all amounts on deposit in the Collection Account on the second Business
Day preceding such Payment Date over (ii) any portion thereof representing
Contract Payments due, or voluntary prepayments deposited therein, subsequent to
the end of the related Collection Period.

          AVAILABLE RESERVE ACCOUNT FUNDS: has the meaning set forth in Section
3.04(c) of the Indenture.

          BALLOON PAYMENT: means, with respect to any Contract, a final Contract
Payment that is significantly larger than the other scheduled payments related
to such Contract. Each Balloon Payment shall be an Eligible Balloon Payment or a
Purchase Option Payment.

                                       2
<PAGE>

          BOOK-ENTRY CUSTODIAN: means, the Person appointed pursuant to the
terms of the Indenture to act in accordance with a certain Letter of
Representations agreement such Person has with DTC, in which DTC delegates its
duties to maintain the Book-Entry Notes to such Person and authorizes such
Person to perform such duties.

          BOOK-ENTRY NOTE(S): means each Note for so long as such Note is
registered in the name of its depository or its nominee in accordance with the
terms and conditions of the Indenture.

          BROKER AGREEMENT RIGHTS: means any rights held by DVI under any
purchase or assignment agreement by and between DVI and a third party broker or
originator relating to the purchase by DVI of any lease or loan originated by
such third party.

          BUSINESS DAY: means any day other than a Saturday, a Sunday or a day
on which banking institutions in New York City or in the city in which the
Corporate Trust Office is located are authorized or required by law or executive
order to close.

          CAPITAL STOCK: means the Transferor's common stock, $1.00 par value.

          CLASS A DISTRIBUTION SUB-ACCOUNT: means the sub-account or
sub-accounts by that name established and maintained by the Trustee pursuant to
Section 3.01 of the Indenture.

          CLASS A MONTHLY INTEREST: means, for any Payment Date, the sum of the
Class A-1 Monthly Interest, the Class A-2a Monthly Interest, the Class A-2b
Monthly Interest, the Class A-3a Monthly Interest and the Class A-3b Monthly
Interest.

          CLASS A MONTHLY PRINCIPAL: means for any Payment Date the sum of the
Class A-1 Monthly Principal, the Class A-2a Monthly Principal, the Class A-2b
Monthly Principal, the Class A-3a Monthly Principal and the Class A-3b Monthly
Principal due or payable on that Payment Date.

          CLASS A NOTE BALANCE: means, as of the Closing Date, $406,920,000 and
thereafter shall equal the Class A Note Balance as of the Closing Date reduced
by all principal payments on all of the Class A Notes.

          CLASS A NOTEHOLDER: means, at any time, any Person in whose name a
Class A Note is registered in the Note Register.

          CLASS A NOTES: means any Class A-1 Note, Class A-2a Note, Class A-2b
Note, Class A-3a Note or Class A-3b Note described in Article II of, and
authorized by, and authenticated and delivered under, the Indenture.

          CLASS A OVERDUE INTEREST: means, for any Payment Date, the excess, if
any, of (a) the aggregate amount of Class A Monthly Interest payable on all
prior Payment Dates over (b) the aggregate amount of interest actually paid to
the Class A Noteholders on all prior Payment Dates.

                                       3
<PAGE>

          CLASS A OVERDUE PRINCIPAL: means, as of any Payment Date, the excess,
if any, of (a) the aggregate amount of Class A Monthly Principal due on the
Class A Notes on all prior Payment Dates over (b) the aggregate amount of
principal actually paid to the Class A Noteholders on all prior Payment Dates.

          CLASS A PERCENTAGE: means a fraction the numerator of which is the
Class A Note Balance on the closing date and the denominator of which is the
difference between the Initial Aggregate Discounted Contract Balance and the
Issuer's Retained Interest.

          CLASS A-1 MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) the fraction of which the numerator is
the actual number of days elapsed during the related month and the denominator
of which is 360 days and (ii) the Class A-1 Note Rate and (iii) the Class A-1
Note Balance on the immediately preceding Payment Date (or, with respect to the
Initial Payment Date, the Closing Date) after giving effect to all principal
payments on the Class A-1 Notes on such Payment Date. The Class A-1 Monthly
Interest, with respect to each Payment Date, shall accrue from and including the
prior Payment Date to but excluding such Payment Date, and with respect to the
Initial Payment Date, shall accrue from and including the Closing Date to but
excluding such Initial Payment Date.

          CLASS A-1 MONTHLY PRINCIPAL: means (A) with respect to each Payment
Date other than the Class A-1 Stated Maturity Date, until the Class A-1 Note
Balance has been reduced to zero, an amount equal to the product of (a) the
Class A Percentage and (b) Monthly Principal; PROVIDED, HOWEVER, that in no
event shall the Class A-1 Monthly Principal due on any Payment Date exceed the
Class A-1 Note Balance as of such Payment Date and (B) on the Class A-1 Stated
Maturity Date, the entire amount of the then-Outstanding Note Balance.

          CLASS A-1 NOTE BALANCE: means, as of the Closing Date, $71,720,000 and
thereafter shall equal the Class A-1 Note Balance as of the Closing Date reduced
by all principal payments on all of the Class A-1 Notes.

          CLASS A-1 NOTE RATE: means one and 62000/100,000 percent (1.62000%)
per annum based upon thirty days elapsed each month in a twelve-month year.

          CLASS A-1 NOTEHOLDER: means, at any time, any Person in whose name a
Class A-1 Note is registered in the Note Register.

          CLASS A-1 NOTES: means any Class A-1 Notes described in Article II of,
and authorized by, and authenticated and delivered under, the Indenture.

          CLASS A-1 OVERDUE INTEREST: means, for any Payment Date, the excess,
if any, of (a) the aggregate amount of Class A-1 Monthly Interest payable on all
prior Payment Dates over (b) the aggregate amount of interest actually paid to
the Class A-1 Noteholders on all prior Payment Dates.

          CLASS A-1 OVERDUE PRINCIPAL: means, as of any Payment Date, the
excess, if any, of (a) the aggregate amount of Class A-1 Monthly Principal due
on the Class A-1 Notes on all

                                       4
<PAGE>

prior Payment Dates over (b) the aggregate amount of principal actually paid to
the Class A-1 Noteholders on all prior Payment Dates.

          CLASS A-1 STATED MATURITY DATE: means the Payment Date occurring on
November 12, 2003.

          CLASS A-2 NOTE BALANCE: means the sum of Class A-2a Note Balance and
the Class A-2b Note Balance.

          CLASS A-2 NOTEHOLDER: means the Class A-2a Noteholder and/or a Class
A-2b Noteholder, as the case may be.

          CLASS A-2a MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) the fraction of which the numerator is
the actual number of days elapsed during the related month and the denominator
of which is 360 days, (ii) the Class A-2a Note Rate and (iii) the Class A-2a
Note Balance on the immediately preceding Payment Date (or, in the case of the
Initial Payment Date, the Closing Date) after giving effect to all principal
payments on the Class A-2a Notes on such Payment Date. The Class A-2a Monthly
Interest, with respect to each Payment Date, shall accrue from and including the
prior Payment Date to but excluding such Payment Date, and with respect to the
Initial Payment Date, shall accrue from and including the Closing Date to but
excluding such Initial Payment Date.

          CLASS A-2a MONTHLY PRINCIPAL: means (A) prior to the Payment Date upon
which the Class A-1 Note Balance is paid in full, zero, (B) on each Payment Date
after the Class A-1 Note Balance has been reduced to zero and until the Class
A-2a Note Balance has been reduced to zero, the product of (x) the Class A
Percentage and (y) Monthly Principal; PROVIDED HOWEVER, that in no case shall
the Class A-2a Monthly Principal due on any Payment Date exceed the Class A-2a
Note Balance, and (C) on the Class A-2a Stated Maturity Date, the entire amount
of the then outstanding Class A-2a Note Balance. CLASS A-2a NOTE BALANCE: means,
as of the Closing Date, $25,000,000 and thereafter shall equal the Class A-2a
Note Balance as of the Closing Date reduced by all principal payments on all of
the Class A-2a Notes.

          CLASS A-2a NOTE RATE: means One-Month LIBOR plus 25/100 percent
(0.25%) per annum based upon the actual number of days elapsed in a 360 day
year.

          CLASS A-2a NOTEHOLDER: means, at any time, any Person in whose name a
Class A-2a Note is registered in the Note Register.

          CLASS A-2a NOTES: means any Class A-2a Notes described in Article II
of, and authorized by, and authenticated and delivered under, the Indenture.

          CLASS A-2a OVERDUE INTEREST: means, for any Payment Date, the excess,
if any, of (a) the aggregate amount of Class A-2a Monthly Interest payable on
all prior Payment Dates over (b) the aggregate amount of interest actually paid
to the Class A-2a Noteholders on all prior Payment Dates.

                                       5
<PAGE>

          CLASS A-2a OVERDUE PRINCIPAL: means, as of any Payment Date, the
excess, if any, of (a) the aggregate amount of Class A-2a Monthly Principal due
on the Class A-2a Notes on all prior Payment Dates over (b) the aggregate amount
of principal actually paid to the Class A-2a Noteholders on all prior Payment
Dates.

          CLASS A-2a STATED MATURITY DATE: means the Payment Date occurring on
November 12, 2004.

          CLASS A-2b MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) one-twelfth, (ii) the Class A-2b Note
Rate and (iii) the Class A-2b Note Balance on the immediately preceding Payment
Date (or, in the case of the Initial Payment Date, the Closing Date) after
giving effect to all principal payments on the Class A-2b Notes on such Payment
Date. The Class A-2b Monthly Interest shall be calculated based upon a twelve
month year of thirty days in each month, except for the Initial Payment Date,
for which interest shall accrue from the Closing Date to but excluding such
Initial Payment Date.

          CLASS A-2b MONTHLY PRINCIPAL: means (A) prior to the Payment Date upon
which the Class A-1 Note Balance is paid in full, zero, (B) on each Payment Date
after the Class A-1 Note Balance has been reduced to zero and until the Class
A-2b Note Balance has been reduced to zero, the product of (x) the Class A
Percentage and (y) Monthly Principal; PROVIDED HOWEVER, that in no case shall
the Class A-2b Monthly Principal due on any Payment Date exceed the Class A-2b
Note Balance, and (C) on the Class A-2b Stated Maturity Date, the entire amount
of the then outstanding Class A-2b Note Balance.

          CLASS A-2b NOTE BALANCE: means, as of the Closing Date, $25,000,000
and thereafter shall equal the Class A-2b Note Balance as of the Closing Date
reduced by all principal payments on all of the Class A-2b Notes.

          CLASS A-2b NOTE RATE: means one and 96/100 percent (1.96%) per annum
based upon thirty days elapsed each month in a twelve-month year.

          CLASS A-2b NOTEHOLDER: means, at any time, any Person in whose name a
Class A-2b Note is registered in the Note Register.

          CLASS A-2b NOTES: means any Class A-2b Notes described in Article II
of, and authorized by, and authenticated and delivered under, the Indenture.

          CLASS A-2b OVERDUE INTEREST: means, for any Payment Date, the excess,
if any, of (a) the aggregate amount of Class A-2b Monthly Interest payable on
all prior Payment Dates over (b) the aggregate amount of interest actually paid
to the Class A-2b Noteholders on all prior Payment Dates.

          CLASS A-2b OVERDUE PRINCIPAL: means, as of any Payment Date, the
excess, if any, of (a) the aggregate amount of Class A-2b Monthly Principal due
on the Class A-2b Notes on all prior Payment Dates over (b) the aggregate amount
of principal actually paid to the Class A-2b Noteholders on all prior Payment
Dates.

                                       6
<PAGE>

          CLASS A-2b STATED MATURITY DATE: means the Payment Date occurring on
November 12, 2004.

          CLASS A-3 NOTE BALANCE: means the sum of the Class A-3a Note Balance
and the Class A-3b Note Balance.

          CLASS A-3 NOTEHOLDER: means a Class A-3a Noteholder and/or a Class
A-3b Noteholder, as the case may be.

          CLASS A-3a MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) the fraction of which the numerator is
the actual number of days elapsed during the related month and the denominator
of which is 360 days, (ii) the Class A-3a Note Rate and (iii) the Class A-3a
Note Balance on the immediately preceding Payment Date (or, in the case of the
Initial Payment Date, the Closing Date) after giving effect to all principal
payments on the Class A-3a Notes on such Payment Date. The Class A-3a Monthly
Interest, with respect to each Payment Date, shall accrue from and including the
prior Payment Date to but excluding such Payment Date, and with respect to the
Initial Payment Date, shall accrue from and including the Closing Date to but
excluding such Initial Payment Date.

          CLASS A-3a MONTHLY PRINCIPAL: means (A) prior to the Payment Date upon
which the Class A-2 Note Balance is paid in full, zero, (B) on each Payment Date
after the Class A-2 Note Balance has been reduced to zero and until the Class
A-3a Note Balance has been reduced to zero, the product of (x) the Class A
Percentage and (y) Monthly Principal; PROVIDED HOWEVER, that in no case shall
the Class A-3a Monthly Principal due on any Payment Date exceed the Class A-3a
Note Balance, and (C) on the Class A-3a Stated Maturity Date, the entire amount
of the then outstanding Class A-3a Note Balance.

          CLASS A-3a NOTE BALANCE: means, as of the Closing Date, $199,200,000
and thereafter shall equal the Class A-3a Note Balance as of the Closing Date
reduced by all principal payments on all of the Class A-3a Notes.

          CLASS A-3a NOTE RATE: means One-Month LIBOR plus 55/100 percent
(0.55%) per annum based upon the actual number of days elapsed in a 360 day
year.

          CLASS A-3a NOTEHOLDER: means, at any time, any Person in whose name a
Class A-3a Note is registered in the Note Register.

          CLASS A-3a NOTES: means any Class A-3a Notes described in Article II
of, and authorized by, and authenticated and delivered under, the Indenture.

          CLASS A-3a OVERDUE INTEREST: means, for any Payment Date, the excess,
if any, of (a) the aggregate amount of Class A-3a Monthly Interest payable on
all prior Payment Dates over (b) the aggregate amount of interest actually paid
to the Class A-3a Noteholders on all prior Payment Dates.

          CLASS A-3a OVERDUE PRINCIPAL: means, as of any Payment Date, the
excess, if any, of (a) the aggregate amount of Class A-3a Monthly Principal due
on the Class A-3a Notes on all

                                       7
<PAGE>

prior Payment Dates over (b) the aggregate amount of principal actually paid to
the Class A-3a Noteholders on all prior Payment Dates.

          CLASS A-3a STATED MATURITY DATE: means the Payment Date occurring on
September 12, 2010.

          CLASS A-3b MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) one-twelfth, (ii) the Class A-3b Note
Rate and (iii) the Class A-3b Note Balance on the immediately preceding Payment
Date (or, in the case of the Initial Payment Date, the Closing Date) after
giving effect to all principal payments on the Class A-3b Notes on such Payment
Date. The Class A-3b Monthly Interest shall be calculated based upon a twelve
month year of thirty days in each month, except for the Initial Payment Date,
for which interest shall accrue from the Closing Date to but excluding such
Initial Payment Date.

          CLASS A-3b MONTHLY PRINCIPAL: means (A) prior to the Payment Date upon
which the Class A-2 Note Balance is paid in full, zero, (B) on each Payment Date
after the Class A-2 Note Balance has been reduced to zero and until the Class
A-3b Note Balance has been reduced to zero, the product of (x) the Class A
Percentage and (y) Monthly Principal; PROVIDED HOWEVER, that in no case shall
the Class A-3b Monthly Principal due on any Payment Date exceed the Class A-3b
Note Balance, and (C) on the Class A-3b Stated Maturity Date, the entire amount
of the then outstanding Class A-3b Note Balance.

          CLASS A-3b NOTE BALANCE: means, as of the Closing Date, $86,000,000
and thereafter shall equal the Class A-3b Note Balance as of the Closing Date
reduced by all principal payments on all of the Class A-3b Notes.

          CLASS A-3b NOTE RATE: means three and 60/100 percent (3.60%) per annum
based upon thirty days elapsed each month in a twelve-month year.

          CLASS A-3b NOTEHOLDER: means, at any time, any, Person in whose name a
Class A-3b Note is registered in the Note Register.

          CLASS A-3b NOTES: means any Class A-3b Notes described in Article II
of, and authorized by, and authenticated and delivered under, the Indenture.

          CLASS A-3b OVERDUE INTEREST: means, for any Payment Date, the excess,
if any, of (a) the aggregate amount of Class A-3b Monthly Interest payable on
all prior Payment Dates over (b) the aggregate amount of interest actually paid
to the Class A-3b Noteholders on all prior Payment Dates.

          CLASS A-3b OVERDUE PRINCIPAL: means, as of any Payment Date, the
excess, if any, of (a) the aggregate amount of Class A-3b Monthly Principal due
on the Class A-3b Notes on all prior Payment Dates over (b) the aggregate amount
of principal actually paid to the Class A-3b Noteholders on all prior Payment
Dates.

          CLASS A-3b STATED MATURITY DATE: means the Payment Date occurring on
September 12, 2010.

                                       8
<PAGE>

          CLASS B DISTRIBUTION SUB-ACCOUNT: means the sub-account or
sub-accounts by that name established and maintained by the Trustee pursuant to
Section 3.01 of the Indenture.

          CLASS B MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) one-twelfth, (ii) the Class B Note
Rate and (iii) the Class B Note Balance on the immediately preceding Payment
Date (or, in the case of the Initial Payment Date, the Closing Date) after
giving effect to all principal payments on the Class B Notes on such Payment
Date. The Class B Monthly Interest shall be calculated based upon a twelve month
year of thirty days in each month, except for the Initial Payment Date, for
which interest shall accrue from the Closing Date to but excluding such Initial
Payment Date.

          CLASS B MONTHLY PRINCIPAL: means (A) on any Payment Date other than
the Class B Stated Maturity Date, the product of (x) the Class B Percentage and
(y) Monthly Principal, PROVIDED, HOWEVER, that in no case shall the Class B
Monthly Principal due on any Payment Date exceed the Class B Note Balance, and
(B) on the Class B Stated Maturity Date, the entire amount of the then
outstanding Class B Note Balance.

          CLASS B NOTE BALANCE: means, as of the Closing Date, $6,940,000 and
thereafter shall equal the Class B Note Balance as of the Closing Date reduced
by all principal payments on the Class B Notes.

          CLASS B NOTE RATE: means three and 60/100 percent (3.60%) per annum
based upon thirty days elapsed each month in a twelve-month year.

          CLASS B NOTEHOLDER: means, at any time, any Person in whose name a
Class B Note is registered in the Note Register.

          CLASS B NOTES: means any Class B Notes described in Article II of, and
authorized by, and authenticated and delivered under, the Indenture.

          CLASS B OVERDUE INTEREST: means, for any Payment Date, the excess, if
any, of (a) the aggregate amount of Class B Monthly Interest payable on all
prior Payment Dates over (b) the aggregate amount of interest actually paid to
the Class B Noteholders on all prior Payment Dates.

          CLASS B OVERDUE PRINCIPAL: means, as of any Payment Date, the excess,
if any, of (a) the aggregate amount of Class B Monthly Principal due on the
Class B Notes on all prior Payment Dates over (b) the aggregate amount of
principal actually paid to the Class B Noteholders on all prior Payment Dates.

          CLASS B PERCENTAGE: means a fraction the numerator of which is the
Class B Note Balance on the closing date and the denominator of which is the
difference between the Initial Aggregate Discounted Contract Balance and the
Issuer's Retained Interest.

          CLASS B STATED MATURITY DATE: means the Payment Date occurring on
September 12, 2010.

                                       9
<PAGE>

          CLASS C DISTRIBUTION SUB-ACCOUNT: means the sub-account or
sub-accounts by that name established and maintained by the Trustee pursuant to
Section 3.01 of the Indenture.

          CLASS C MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) one-twelfth, (ii) the Class C Note
Rate and (iii) the Class C Note Balance on the immediately preceding Payment
Date (or, in the case of the Initial Payment Date, the Closing Date) after
giving effect to all principal payments on the Class C Note on such Payment
Date. The Class C Monthly Interest shall be calculated based upon a twelve month
year of thirty days in each month, except for the Initial Payment Date, for
which interest shall accrue from the Closing Date to but excluding such Initial
Payment Date.

          CLASS C MONTHLY PRINCIPAL: means, (A) on any Payment Date other than
the Class C Stated Maturity Date, an amount equal to the product of (x) the
Class C Percentage and (y) the Monthly Principal PROVIDED, HOWEVER, that in no
case shall the Class C Monthly Principal due on any Payment Date exceed the
Class C Note Balance, and (B) on the Class C Stated Maturity Date, the entire
amount of the then outstanding Class C Note Balance.

          CLASS C NOTEHOLDER: means, at any time, any Person in whose name a
Class C Note is registered in the Note Register.

          CLASS C NOTE BALANCE: means, as of the Closing Date, $13,870,000 and
thereafter shall equal the Class C Note Balance as of the Closing Date reduced
by all principal payments on the Class C Notes.

          CLASS C NOTE RATE: means four and 34/100 percent (4.34%) per annum
based upon thirty days elapsed in a twelve-month year.

          CLASS C NOTES: means any Class C Notes described in Article II of, and
authorized by, and authenticated and delivered under, the Indenture.

          CLASS C OVERDUE INTEREST: means, for any Payment Date, the excess, if
any, of (a) the aggregate amount of Class C Monthly Interest payable on all
prior Payment Dates over (b) the aggregate amount of interest actually paid to
the Class C Noteholders on all prior Payment Dates.

          CLASS C OVERDUE PRINCIPAL: means, as of any Payment Date, the excess,
if any, of (a) the aggregate amount of Class C Monthly Principal due on the
Class C Notes on all prior Payment Dates over (b) the aggregate amount of
principal actually paid to the Class C Noteholders on all prior Payment Dates.

          CLASS C PERCENTAGE: means a fraction the numerator of which is the
Class C Note Balance on the closing date and the denominator of which is the
difference between the Initial Aggregate Discounted Contract Balance and the
Issuer's Retained Interest.

          CLASS C STATED MATURITY DATE: means the Payment Date occurring on
September 12, 2010.

                                       10
<PAGE>

          CLASS D DISTRIBUTION SUB-ACCOUNT: means the sub-account or
sub-accounts by that name established and maintained by the Trustee pursuant to
Section 3.01 of the Indenture.

          CLASS D MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) the fraction of which the numerator is
the actual number of days elapsed during the related month and the denominator
of which is 360 days, (ii) the Class D Note Rate and (iii) the Class D Note
Balance on the immediately preceding Payment Date (or, in the case of the
Initial Payment Date, the Closing Date) after giving effect to all principal
payments on the Class D Notes on such Payment Date. The Class D Monthly Interest
with respect to each Payment Date, shall accrue from and including the prior
Payment Date to but excluding such Payment Date, and with respect to the Initial
Payment Date, shall accrue from including the Closing Date to but excluding such
Initial Payment Date.

          CLASS D MONTHLY PRINCIPAL: means (A) on any Payment Date other than
the Class D Stated Maturity Date, the product of (x) the Class D Percentage and
(y) Monthly Principal, PROVIDED, HOWEVER, that in no case shall the Class D
Monthly Principal due on any Payment Date exceed the Class D Note Balance, and
(B) on the Class D Stated Maturity Date, the entire amount of the then
outstanding Class D Note Balance.

          CLASS D NOTE BALANCE: means, as of the Closing Date, $9,250,000 and
thereafter shall equal the Class D Note Balance as of the Closing Date reduced
by all principal payments on the Class D Notes.

          CLASS D NOTE RATE: means One-Month LIBOR plus two and 25/100 percent
(2.25%) per annum based upon the actual number of days elapsed in a 360 day
year.

          CLASS D NOTEHOLDER: means at any time, any Person in whose name a
Class D Note is registered in the Note Register.

          CLASS D NOTES: means any Class D Notes described in Article II of, and
authorized by, and authenticated and delivered under, the Indenture.

          CLASS D OVERDUE INTEREST: means, for any Payment Date, the excess, if
any, of (a) the aggregate amount of Class D Monthly Interest payable on all
prior Payment Dates over (b) the aggregate amount of interest actually paid to
the Class D Noteholders on all prior Payment Dates.

          CLASS D OVERDUE PRINCIPAL: means, as of any Payment Date, the excess,
if any, of (a) the aggregate amount of Class D Monthly Principal due on the
Class D Notes on all prior Payment Dates over (b) the aggregate amount of
principal actually paid to the Class D Noteholders on all prior Payment Dates.

          CLASS D PERCENTAGE: means a fraction the numerator of which is the
Class D Note Balance on the closing date and the denominator of which is the
difference between the Initial Aggregate Discounted Contract Balance and the
Issuer's Retained Interest.

                                       11
<PAGE>

          CLASS D STATED MATURITY DATE: means the Payment Date occurring on
September 12, 2010.

          CLASS E DISTRIBUTION SUB-ACCOUNT: means the sub-account or
sub-accounts by that name established and maintained by the Trustee pursuant to
Section 3.01 of the Indenture.

          CLASS E MONTHLY INTEREST: means, for any Payment Date (except the
Initial Payment Date), the product of (i) the fraction of which the numerator is
the actual number of days elapsed during the related month and the denominator
of which is 360 days, (ii) the Class E Note Rate and (iii) the Class E Note
Balance on the immediately preceding Payment Date (or, in the case of the
Initial Payment Date, the Closing Date) after giving effect to all principal
payments on the Class E Note on such Payment Date. The Class E Monthly Interest
with respect to each Payment Date, shall accrue from and including the prior
Payment Date to but excluding such Payment Date, and with respect to the Initial
Payment Date, shall accrue from and including the Closing Date to but excluding
such Initial Payment Date.

          CLASS E MONTHLY PRINCIPAL: means, (A) on any Payment Date other than
the Class E Stated Maturity Date, an amount equal to the product of (x) the
Class E Percentage and (y) the Monthly Principal and (B) on the Class E Stated
Maturity Date, the entire amount of the then outstanding Class E Note Balance.

          CLASS E NOTEHOLDER: means at any time, any Person in whose name a
Class E Note is registered in the Note Register.

          CLASS E NOTE BALANCE: means, as of the Closing Date, $11,560,000 and
thereafter shall equal the Class E Note Balance as of the Closing Date reduced
by all principal payments on the Class E Notes.

          CLASS E NOTE RATE: means One-Month LIBOR plus six and 00/100 percent
(6.00%) per annum based upon the actual number of days elapsed in a 360 day
year.

          CLASS E NOTES: means any Class E Notes described in Article II of, and
authorized by, and authenticated and delivered under, the Indenture.

          CLASS E OVERDUE INTEREST: means, for any Payment Date, the excess, if
any, of (a) the aggregate amount of Class E Monthly Interest payable on all
prior Payment Dates over (b) the aggregate amount of interest actually paid to
the Class E Noteholders on all prior Payment Dates.

          CLASS E OVERDUE PRINCIPAL: means, as of any Payment Date, the excess,
if any, of (a) the aggregate amount of Class E Monthly Principal due on the
Class E Notes on all prior Payment Dates over (b) the aggregate amount of
principal actually paid to the Class E Noteholders on all prior Payment Dates.

          CLASS E PERCENTAGE: means a fraction the numerator of which is the
Class E Note Balance on the closing date and the denominator of which is the
difference between the Initial Aggregate Discounted Contract Balance and the
Issuer's Retained Interest.

                                       12
<PAGE>

          CLASS E STATED MATURITY DATE: means the Payment Date occurring on
September 12, 2010.

          CLASS F DISTRIBUTION SUB-ACCOUNT: means the sub-account or
sub-accounts by that name that may be established and maintained by the Trustee
pursuant to Section 3.01 of the Indenture.

          CLASS F INSTRUMENTS: means any Class F Instruments described in
Article II of the Indenture, that may be issued from time to time under the
Indenture and the related Supplement.

          CLASS F INSTRUMENTHOLDER: means at any time, any Person in whose name
a Class F Instrument is registered in the Note Register.

          CLOSING DATE: means November 14, 2002.

          CODE: means the Internal Revenue Code of 1986, as amended.

          COLLECTION ACCOUNT: means the account or accounts by that name
established and maintained by the Trustee pursuant to Section 3.01 of the
Indenture.

          COLLECTION PERIOD: means, with respect to each Payment Date related
thereto, the calendar month immediately preceding such Payment Date.

          COMMISSION: means the Securities and Exchange Commission.

          COMPANY: means DVI Receivables Corp. XVIII, a company organized and
existing under the laws of Delaware, and its successors.

          COMPANY ASSETS: means (i) the Contributed Property related to the
Contracts set forth on each Subsequent Contract Transfer Form and the Sold
Company Assets (as defined in the related Sale Agreement), in each case OTHER
THAN, and notwithstanding any other provision to the contrary, (a) excluding the
Company's Retained Interest relating to such Contracts, and (b) any and all
ownership interests of the Company in Equipment, with respect to which the
Company shall instead, pursuant to Section 2.05 of the SCTA, grant to the Issuer
a first priority perfected security interest therein, (ii) all of the Company's
rights and privileges, but none of its obligations, under the Contribution and
Servicing Agreement, the Sale Agreements and each Substitute Contract Transfer
Form and (iii) all payments, income and proceeds of the foregoing or relating
thereto. For the avoidance of doubt, the term Company Assets excludes all right,
title and interest of the Issuer in (a) any Predecessor Contract or any Contract
purchased by the Contributor or Servicer pursuant to Section 5.03 of the
Contribution and Servicing Agreement, (b) the Equipment related to such Contract
and (c) all income, payments and proceeds of any of the foregoing or relating
thereto occurring after the effective date of the release of such Contract.

          CONFIRMATION: means with respect to the Class A-2a Notes, the
Confirmation for U.S. Dollar Interest Rate Swap Transaction Under 1992 Master
Agreement (Reference Nos. 3004780/3004781, with respect to the Class A-3a Notes,
Reference Nos. 3004778/3004779, with respect to the Class D Notes, Reference
Nos. 3004776/3004777, and with respect to the Class E Notes, Reference Nos.
3004774/3004775), each dated November 6, 2002, by and between the

                                       13
<PAGE>

Issuer and the Swap Provider and each other Confirmation for the U.S. Dollar
Interest Rate Swap Transactions by and between the Issuer and a Swap Provider.

          CONTRACT: means each separate noncancelable Finance Lease, Fair Market
Value Lease, Leveraged Lease Loan, Lease Receivable Purchase or Secured
Equipment Note acquired from time to time by (x) the Transferor from the
Contributor, directly or indirectly, pursuant to the Contribution and Servicing
Agreement or (y) the Issuer under either Sale Agreement. The term shall include
any Contract transferred, directly or indirectly, to the Transferor or the
Issuer on the Closing Date or, directly or indirectly, any Substitution Date in
connection with any substitution in accordance with the Contribution and
Servicing Agreement, respectively, but excluding any Unrelated Property.

          CONTRACT FILE: means the following documents or instruments with
respect to each Contract:

          (i) the executed original counterpart of the Contract that constitutes
          "chattel paper" or an "instrument" for purposes of Section
          9-102(a)(11) and Section 9-313 of the UCC;

          (ii) documents evidencing or related to any insurance policy with
          respect to the related Equipment;

          (iii) a copy of each delivery and acceptance certificate with respect
          to each Contract that is a lease or a copy of each original invoice
          for the related Equipment and the receipt of delivery related thereto
          with respect to each Contract that is a loan;

          (iv) a copy of the financing statement filed with respect to the
          related Equipment with evidence of proper recording;

          (v) a copy of any related agreement with the vendor, dealer or
          manufacturer of the Equipment or with any Person from whom DVI
          acquired the Contract and rights in the related Equipment (if
          applicable); and

          (vi) copies of such documents that the Servicer or its Affiliates keep
          on file indicating that the Equipment is subject to the interest of
          the Trustee, in accordance with their customary procedures relating to
          the individual Contract, Obligor or Equipment.

          CONTRACT PAYMENT: means any payment which the Obligor is required to
make pursuant to a Contract after the Cut-off Date, other than (i) any payment
not included in the remaining Contract Payments for such Contract as of the
related Cut-off Date as reflected in the Contract Schedule, (ii) certain amounts
included in such payments for which the Contributor is not the ultimate
beneficiary thereof, including, but not limited to, property taxes, sales taxes,
manufacturer's maintenance costs, insurance premiums and supplies and
transaction costs and (iii) Purchase Option Payments.

                                       14
<PAGE>

          CONTRACT SCHEDULE: means the schedule of Contracts attached to the
Contribution and Servicing Agreement and the Indenture, such schedule as amended
from time to time, setting forth the following information as to each Contract:
(i) the Contract Number, (ii) the Original Equipment Cost, if available, (iii)
the Discounted Contract Balance as of the Cut-off Date, (iv) the name, address
and telephone number of the Obligor, (v) the State of location of the related
Equipment, (vi) the commencement date and original term of each Contract, (vii)
the remaining term and amount of the Contract Payments for each original
Contract as of the Cut-off Date, (viii) the type of related Equipment, (ix) the
related cash flow schedule, (x) the type of Contract and (xi) the applicable
Pool on such Contracts. The Contract Schedule shall be deemed supplemented and
amended to incorporate therein any Substitute Contracts and the deletion of any
Predecessor Contract.

          CONTRACT TRANSFER DATE: means any date on or prior to the Closing Date
that, pursuant to the Contribution and Servicing Agreement, the Contributor may
transfer a Contract to the Transferor.

          CONTRIBUTED PROPERTY: means all of the right, title and interest of
DVI Receivables Corp. XV, DVI Receivables XV, L.L.C., DVI Funding Corp., DVI
Funding, L.L.C. and the Contributor's in and to (a) all Contracts, including
those listed on the Contract Schedule attached as Schedule 1 to the Indenture
and all Substitute Contracts (including its interest in the proceeds of such
Contracts and including the assignment of the security interest of the Obligor
of a Leveraged Lease Loan in the equipment lease that is subject thereto),
including all payments received on or with respect to such Contracts after the
Cut-off Date but excluding the Contributor's Retained Interest and any Broker
Agreement Rights relating to such Contracts, (b) any documents in the Contract
Files relating to the Contracts listed on the Contract Schedule attached as
Schedule 1 to the Indenture, (c) Insurance Policies and Insurance Proceeds
relating to the Contracts (or the related Equipment) listed on the Contract
Schedule attached as Schedule 1 to the Indenture, (d) the Equipment (which shall
be either a first priority perfected security interest in Equipment (other than
with respect to Equipment for which the Original Equipment Cost is less than
$25,000) or, with respect to Fair Market Value Leases, an ownership interest in
the Equipment) and any collateral, including, without limitation, any credit
enhancement (other than accounts receivable of an Obligor), which relates
specifically to a Contract and (e) all payments, income and proceeds of the
foregoing or relating thereto.

          CONTRIBUTION AND SERVICING AGREEMENT: means the Contribution and
Servicing Agreement dated as of November 1, 2002 between the Transferor and the
Contributor, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with the provisions hereof and thereof.

          CONTRIBUTION DATE: means, with respect to the Initial Contracts, the
Closing Date, and, with respect to any Substitute Contract, the related
Substitution Date.

          CONTRIBUTOR: means DVI Financial Services Inc., a corporation
organized and existing under the laws of the State of Delaware, and its
successors.

          CORPORATE TRUST OFFICE: means the principal corporate trust office of
the Trustee located on the Closing Date at 180 Fifth Street, St. Paul, Minnesota
55101, or at such other

                                       15
<PAGE>

address as the Trustee may designate from time to time by notice to the
Noteholders and the Transferor.

          CUT-OFF DATE: means for each Initial Contract, October 31, 2002; and
as to any Substitute Contract, the last day of the month prior to the month in
which such Substitute Contract is substituted.

          DEFAULT: means any occurrence that is, or with notice or the lapse of
time or both would become, an Indenture Event of Default.

          DEFAULTED CONTRACT: means any Contract with respect to which, (i) any
Contract Payment (or portion thereof) is delinquent for more than 180 days as of
the last day of the calendar month, (ii) the Servicer has declined to make a
Servicer Advance with respect to any delinquent amounts in accordance with the
Contribution and Servicing Agreement on the grounds that such advance would be a
Nonrecoverable Advance, (iii) any Contract has been rejected by or on behalf of
the Obligor in a bankruptcy proceeding or (iv) the Lessor with respect to any
Leveraged Lease Loan has rejected the related lease in a bankruptcy proceeding.
For purposes of clause (i), the delinquency of a Contract Payment shall be
measured based on the Contract Payments required to be made during the term of
such Contract as of the date that such Contract became part of the Trust
Property without giving effect to any modifications (except those modifications
permitted pursuant to Section 4.02 of the Contribution and Servicing Agreement),
waivers or extensions subsequently granted by the Servicer.

          DEFINITIVE NOTE: a Note issued in definitive form pursuant to the
terms and conditions of Article Two of the Indenture.

          DELINQUENCY CONDITION: shall be deemed to exist on and as of any
Determination Date if (x) the quotient of (1) the sum of the Discounted Contract
Balances of all Contracts listed as more than 90 days delinquent as of the last
day of the three immediately preceding calendar months, divided by (2) three
exceeds (y) the product of (1) 0.06 and (2) the quotient of (A) the sum of the
Aggregate Discounted Contract Balance as of the last day of the three
immediately preceding Collection Periods, divided by (B) three.

          DELINQUENT CONTRACT: means, as of any Determination Date, any Contract
(other than a Contract which became a Defaulted Contract prior to such
Determination Date) with respect to which the Obligor has not paid all Contract
Payments due as of the end of the immediately preceding Collection Period. The
delinquency of a Contract Payment shall be measured based on the Contract
Payments required to be made during the term of such Contract as of the date
such Contract became part of the Trust Property without giving effect to any
modifications, waivers or extensions subsequently granted by the Servicer.

          DEPOSITARY: means The Depository Trust Company until a successor
depositary shall have become such pursuant to the applicable provisions of the
Indenture, and thereafter "Depositary" shall mean or include each Person who is
then a Depositary thereunder. For purposes of the Indenture, unless otherwise
specified pursuant to Section 2.02 thereof, any successor Depositary shall, at
the time of its designation and at all times while it serves as

                                       16
<PAGE>

Depositary, be a clearing agency registered under the Exchange Act, and any
other applicable statute or regulation.

          DEPOSITARY PARTICIPANT: means a broker, dealer, bank, other financial
institution or other Person for whom from time to time the Depositary effects
book-entry transfers and pledges of securities deposited with the Depositary.

          DEPOSITED AVAILABLE FUNDS: has the meaning set forth in Section
3.04(c) of the Indenture.

          DETERMINATION DATE: means, with respect to any Payment Date, the third
Business Day immediately preceding each Payment Date.

          DISCOUNT RATE: means 4.40% per annum.

          DISCOUNTED CONTRACT BALANCE: means, with respect to any Contract, on
any date of determination, an amount equal to the sum of (a) the present value
of each remaining Contract Payment to become due under a Contract before the
last day of the month prior to the month of the Stated Maturity Date, discounted
monthly from the last day of the Collection Period in which such Contract
Payment is to become due at a rate equal to one-twelfth (or with respect to the
period from the Closing Date to but excluding the Initial Payment Date, a
fraction, the numerator of which is equal to the number of days from the Closing
Date to but excluding the Initial Payment Date, and the denominator of which is
equal to 360) of the Discount Rate and (b) one hundred percent (100%) of the
unpaid balance, as of such date of determination of Contract Payments due with
respect to such Contract which were not the subject of a Servicer Advance;
provided, however, that, except for purposes of computing the Repurchase Amount
or for computing the Discounted Contract Balance of a Predecessor Contract, on
the date a Contract becomes a Defaulted Contract, the Discounted Contract
Balance for such Contract will be zero. For purposes of calculating the
Discounted Contract Balance of a Contract, any Contract Payment for which the
Contributor received on or prior to the Cut-off Date a security deposit or an
advance payment shall be deemed to be zero. For the avoidance of doubt, Purchase
Option Payment, shall not be included for any purpose in the calculation of
Discounted Contract Balance for any Contract.

          DISTRIBUTION ACCOUNT: means the account or accounts by that name
established and maintained by Trustee pursuant to Section 3.01 of the Indenture.

          DVI: means DVI Financial Services Inc., a corporation organized and
existing under the laws of the State of Delaware, and its successors.

          DVI FAIR MARKET VALUE LEASE: means a Fair Market Value Lease
originated by DVI.

          DVI FUNDING SALE AGREEMENT: means the Sale Agreement, dated as of
November 1, 2002, among DVI Funding, L.L.C., as transferor, the Issuer, DVI
Funding Corporation, as seller, the Transferor and DVI.

                                       17
<PAGE>

          DVI GROUP: means, as of any relevant date, the affiliated group within
the meaning of section 1504 of the Code of which DVI, Inc., or any successor
thereto, is the common parent, or of which DVI, the Transferor, the Managing
Member and the Issuer are members, and shall mean any group eligible to file
consolidated or combined returns for state, local or foreign tax purposes which
includes DVI, the Managing Member and the Transferor, regardless of the identity
of the common parent.

          DVI PARTY: means any of DVI, the Transferor, the Issuer or the
Managing Member.

          DVI XV SALE AGREEMENT: means the Sale Agreement, dated as of November
1, 2002, among DVI Receivables XV, L.L.C., as transferor, the Issuer, DVI
Receivables Corp. XV, as seller, the Transferor and DVI.

          DVI, INC.: means DVI, Inc., a corporation organized and existing under
the laws of the State of Delaware, and its successors.

          ELIGIBLE BALLOON PAYMENT: means, with respect to any Contract, a
Balloon Payment which is (x) less than six and one half times larger than the
average Contract Payments (calculated excluding such Balloon Payment) related to
such Contract and is included in the Discounted Contract Balance of such
Contract or (y) more than six and one half times larger than the average
Contract Payments (calculated excluding such Balloon Payment) related to such
Contract and is included in the Discounted Contract Balance of such Contract
and, with respect to any proposed Substitute Contract that contains an Eligible
Balloon Payment pursuant to clause (y) of this definition, would not result in a
Ratings Effect.

          ELIGIBLE CONTRACT: means any Initial Contract which meets the
Contributor's credit requirements in effect on the Closing Date and satisfies
each of the representations and warranties set forth in Section 2.03 of the
Contribution and Servicing Agreement and, with respect to any Substitute
Contract, satisfies the requirements of Section 7.01 (d) of the Contribution and
Servicing Agreement on the related Substitution Date.

          ELIGIBLE DEPOSIT ACCOUNT: any one or more of the following accounts:

          (i) a segregated account with an Eligible Institution; or

          (ii) a segregated trust account with the corporate trust department of
          a depositary institution organized under the laws of the United States
          of America or any one of the states thereof or the District of
          Columbia (or any domestic branch of a foreign bank) subject to
          regulations regarding fiduciary funds on deposit, having corporate
          trust powers and acting as a trustee for funds deposited in such
          account acceptable to the Rating Agencies.

          ELIGIBLE INSTITUTION: means any one or more of the following
institutions: (i) the corporate trust department of the Trustee, or (ii) a
depositary institution organized under the laws of the United States of America
or any one of the states thereof or the District of Columbia acceptable to the
Rating Agencies (or any domestic branch of a foreign bank), which (a)(1) has

                                       18
<PAGE>

either (w) a long-term unsecured debt rating acceptable to the Rating Agencies
or (x) a short-term unsecured debt rating or certificate of deposit rating
acceptable to the Rating Agencies or (2) the parent corporation of which has
either (y) a long-term unsecured debt rating acceptable to the Rating Agencies
or (z) a short-term unsecured debt rating or certificate of deposit rating
acceptable to the Rating Agencies and (b) whose deposits are insured by the
Federal Deposit Insurance Corporation.

          ELIGIBLE INVESTMENTS: means any and all of the following:

          (i) direct obligations of, and obligations fully guaranteed for timely
          payment by, the United States of America, the Federal Home Loan
          Mortgage Corporation, the Federal National Mortgage Association, the
          Federal Home Loan Banks or any agency or instrumentality of the United
          States of America which has a rating of at least "AAA" by Fitch, Inc.
          and "Aaa" by Moody's at the time of such investment the obligations of
          which are backed by the full faith and credit of the United States of
          America;

          (ii) (A) demand and time deposits in, certificates of deposit of,
          banker's acceptances issued by or federal funds sold by any depository
          institution or trust company (including the Trustee or its agent
          acting in their respective commercial capacities) incorporated under
          the laws of the United States of America or any State thereof and
          subject to supervision and examination by federal and/or state
          authorities, so long as at the time of such investment or contractual
          commitment providing for such investment, such depository institution
          or trust company has a long term unsecured debt rating of "A+" by
          Fitch, Inc., and at least "A1" by Moody's, and a short term unsecured
          debt rating in the highest available rating category of each of the
          Rating Agencies and provided that each such investment has an original
          maturity of no more than 365 days, and (B) any other demand or time
          deposit or deposit which is fully insured by the Federal Deposit
          Insurance Corporation;

          (iii) repurchase obligations with a term not to exceed 30 days with
          respect to any security described in clause (i) above and entered into
          with a depository institution or trust company (acting as a principal)
          rated "A" by Fitch, Inc., at least "A1" or higher by Moody's or
          Prime-1 by Moody's and "A" or higher by S&P; PROVIDED, HOWEVER, that
          collateral transferred pursuant to such repurchase obligation must (A)
          be valued weekly at current market price plus accrued interest, (B)
          pursuant to such valuation, equal, at all times, 105% of the cash
          transferred by the Trustee in exchange for such collateral and (C) be
          delivered to the Trustee or, if the Trustee is supplying the
          collateral, an agent for the Trustee, in such a manner as to
          accomplish perfection of a security interest in the collateral by
          possession of certificated securities;

          (iv) securities bearing interest or sold at a discount issued by any
          corporation incorporated under the laws of the United States of
          America or any State thereof which has a long term unsecured debt
          rating in the highest available rating category of each of the Rating
          Agencies at the time of such investment;

                                       19
<PAGE>

          (v) commercial paper having an original maturity of less than 365 days
          and issued by an institution having a long term unsecured debt rating
          of "A+" by Fitch, Inc. or "A1" by Moody's and a short term unsecured
          debt rating in the highest available rating category of each of the
          Rating Agencies at the time of such investment;

          (vi) a guaranteed investment contract approved in writing by each of
          the Rating Agencies and issued by an insurance company or other
          corporation having a long term unsecured debt rating in the highest
          available rating category of each of the Rating Agencies at the time
          of such investment;

          (vii) money market funds having ratings in the highest available
          rating category of each of the Rating Agencies at the time of such
          investment; any such money market funds which provide for demand
          withdrawals being conclusively deemed to satisfy any maturity
          requirements for Eligible Investments set forth in the Indenture; and

          (viii) any investment approved in writing by each of the Rating
          Agencies.

          EQUIPMENT: means the underlying equipment subject to a Contract, which
is principally medical diagnostic and therapeutic equipment, together with the
income and proceeds thereof.

          ERISA: means the Employee Retirement Income Security Act of 1974, as
amended.

          EXCHANGE ACT: means the Securities Exchange Act of 1934, as amended.

          EXCLUDED AMOUNTS: means any payments received from an Obligor in
connection with any application fees, tax processing fees, wire transfer fees,
express mail fees, late charges, taxes, fees or other charges imposed by any
Governmental Authority, any indemnity payments made by an Obligor for the
benefit of the originator or vendor under the related Contract or any payments
collected from an Obligor for the benefit of the originator or vendor which
relate to maintenance payments pursuant to the related Contract or maintenance
agreement, as applicable or any other non-rental administrative charges
reimbursable to the Servicer in accordance with the Servicer's customary
policies and procedures.

          FAIR MARKET VALUE LEASE: means any Contract in the form of a lease
that contains a purchase option based on either (a) a stated non de minimis
percentage of the original cost of the related Equipment or (b) the fair market
value of the related Equipment at the expiration, or earlier termination, of the
Contract. A Fair Market Value Lease is identified as "FMV" on the Contract
Schedule.

          FINANCE LEASE: means any Contract in the form of a lease that contains
an end of term purchase option for a nominal amount. A Finance Lease is
identified as "FL" on the Contract Schedule.

                                       20
<PAGE>

          FITCH, INC.: means Fitch, Inc. and any successor.

          GAAP: means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination.

          GLOBAL NOTE: means either a Rule 144A Global Note or a Public Global
Note.

          GRANT: means to grant, bargain, sell, convey, assign, transfer,
mortgage, pledge, create and perfect a security interest in and right of set-off
against, deposit, set over and confirm.

          HOLDER OR NOTEHOLDER: means, at any time, any Person in whose name a
Note is registered in the Note Register.

          INDENTURE: means the Indenture between the Issuer and the Trustee
dated as of November 1, 2002 and as from time to time may be supplemented,
amended or otherwise modified pursuant to the applicable provisions thereof.

          INDENTURE EVENT OF DEFAULT: as defined in Section 6.01 of the
Indenture.

          INITIAL AGGREGATE DISCOUNTED CONTRACT BALANCE: means an amount equal
to $462,410,954.84.

          INITIAL CONTRACT: means any Contract acquired by the Issuer on or
prior to the Closing Date as set forth on Schedule 1 of the Indenture.

          INITIAL PAYMENT DATE: means the initial Payment Date pursuant to the
Transaction Documents, which is scheduled (subject to prepayment provisions of
the Indenture) to be, when used with respect to interest on any Note, December
12, 2002, and when used with regard to principal, with respect to the Class A-1
Notes, the Class B Notes, the Class C Notes, the Class D Notes or the Class E
Notes, December 12, 2002, when used with respect to the Class A-2 Notes, August
12, 2003 and when used with respect to the Class A-3 Notes, February 12, 2004.

          INITIAL RESERVE ACCOUNT REQUIRED AMOUNT: has the meaning set forth in
the definition of "Reserve Account Required Amount."

          INITIAL SUCCESSOR SERVICER RESERVE ACCOUNT DEPOSIT AMOUNT: means
$200,000.

          INSURANCE POLICY: means, with respect to an item of Equipment, any
insurance policy required to be maintained by the Obligor pursuant to the
related Contract that covers physical damage to the Equipment.

          INSURANCE PROCEEDS: means proceeds paid (i) by any insurer pursuant to
any Insurance Policy covering a Contract or (ii) if the Obligor has self-insured
with respect to a

                                       21
<PAGE>

Contract, by the Obligor, in either case, net of reasonable costs of collecting
such proceeds not otherwise reimbursed.

          INSURED EXPENSES: means expenses covered by any Insurance Policy.

          ISSUER: means DVI Receivables XVIII, L.L.C., a Delaware limited
liability company.

          ISSUER ORDER or ISSUER REQUEST: means a written order or request
delivered to the Trustee and signed in the name of the Issuer by an Authorized
Officer.

          LEASE RECEIVABLE PURCHASE: means any Contract in the form of a
purchase by DVI from a Lessor of Lessor's right, title and interest in Contract
Payments related to an underlying equipment lease and that is secured by the
Lessor's rights in the related Equipment. A Lease Receivable Purchase is
identified as "LRP" on the Contract Schedule.

          LESSOR: means the Person who is the lessor under the equipment lease
related to a Leveraged Lease Loan or Lease Receivable Purchase.

          LEVERAGED LEASE LOAN: means any Contract in the form of a loan that is
(a) made by the Contributor to a Lessor of the related Equipment pursuant to an
underlying noncancelable equipment lease and (b) secured by a pledge by such
lessor to the Contributor of all of its right, title and interest to such
noncancelable equipment lease (including such Lessor's right to receive rental
payments from the lessee on such equipment lease) and the related Equipment. A
Leveraged Lease Loan is identified as "LL" on the Contract Schedule.

          LIBOR DETERMINATION DATE: means the the second London Banking Day (as
defined in the Swap Agreement) prior to the Effective Date (as defined in the
Swap Agreement) or the Calculation Period (as defined in the Swap Agreement), as
the case may be.

          LIEN: means with respect to any property, any mortgage, security
interest, lien, charge, pledge, equity or encumbrance of any kind in respect of
such property.

          LOCK-BOX ACCOUNT: means an account designated as such, established and
maintained pursuant to Section 3.01 of the Indenture.

          LOCK-BOX AGREEMENT: means, (i) the agreement, as amended, supplemented
and otherwise modified from time to time, dated as of December 20, 2000, by and
among the Contributor and Firstar Bank, N.A., (ii) the agreement dated as of
December 15, 2000, by and among the Contributor and First Union National Bank or
(iii) the agreement dated as of October 5, 1994, by and between the Contributor
(as assignee of Affiliated Capital Corporation) and American National Bank,
pursuant to which the Lock-Box Account is established and maintained.

          LOCK-BOX BANK: means, as of any date, the bank or trust company at
which a Lock-Box Account is established and maintained as of such date.

          MANAGING MEMBER: means DVI Receivables Corp. VIII, a Delaware
corporation.

                                       22
<PAGE>

          MONTHLY INTEREST: means as of any Payment Date, the sum of (i) the
Class A Monthly Interest, (ii) the Class B Monthly Interest, (iii) the Class C
Monthly Interest, (iv) the Class D Monthly Interest, and (v) the Class E Monthly
Interest.

          MONTHLY PRINCIPAL: means, with respect to any Payment Date, an amount
equal to the excess of (a) the Aggregate Discounted Contract Balance at the
close of business on the last day of the second preceding Collection Period over
(b) the Aggregate Discounted Contract Balance at the close of business on the
last day of the immediately preceding Collection Period.

          MONTHLY SERVICER REPORT: means the report attached as Exhibit B to the
Contribution and Servicing Agreement.

          MOODY'S: means Moody's Investors Service, Inc. and any successor.

          NET SWAP PAYMENT: means the absolute value of the negative result of
either of the below calculations:

          (1) For any Payment Date after the first Payment Date, the sum of the
following calculation with respect to each of the Class A-2a Notes, the Class
A-3a Notes, the Class D Notes and the Class E Notes:

               (a) the product of: (i) the actual number of days from and
including the immediately preceding Payment Date on which the related interest
period begins to but excluding such Payment Date, divided by 360, (ii) One-Month
LIBOR plus the Applicable Margin determined as of the related LIBOR
Determination Date, and (iii) the applicable Notional Amount; minus

               (b) the product of: (i) 1/12, (ii) the Fixed Rate (as defined in
the Swap Agreement), and (iii) the applicable Notional Amount.

          (2) For the first Payment Date, the sum of the following calculation
with respect to each of the Class A-2a Notes, the Class A-3a Notes, the Class D
Notes and the Class E Notes:

               (a) the product of: (i) the actual number of days from and
including the Closing Date to but excluding such Payment Date, divided by 360,
(ii) One-Month LIBOR plus the Applicable Margin determined as of the related
LIBOR Determination Date, and (iii) the applicable Notional Amount; minus

               (b) the product of: (i) the number of days from and including the
Closing Date to but excluding such Payment Date (assuming 30 day months) divided
by 360, (ii) the Fixed Rate (as defined in the Swap Agreement), and (iii) the
applicable Notional Amount.

          NET SWAP RECEIPT: means the positive result of either of the below
calculations:

          (1) For any Payment Date after the first Payment Date, the sum of the
following calculation with respect to each of the Class A-2a Notes, the Class
A-3a Notes, the Class D Notes and the Class E Notes:

                                       23
<PAGE>

               (a) the product of: (i) the actual number of days from and
including the immediately preceding Payment Date on which the related interest
period begins to but excluding such Payment Date, divided by 360, (ii) One-Month
LIBOR plus the Applicable Margin determined as of the related LIBOR
Determination Date, and (iii) the applicable Notional Amount; minus

               (b) the product of: (i) 1/12, (ii) the Fixed Rate (as defined in
the Swap Agreement), and (iii) the applicable Notional Amount.

          (2) For the first Payment Date, the sum of the following calculation
with respect to each of the Class A-2a Notes, the Class A-3a Notes, the Class D
Notes and the Class E Notes:

               (a) the product of: (i) the actual number of days from and
including the Closing Date to but excluding such Payment Date, divided by 360,
(ii) One-Month LIBOR plus the Applicable Margin determined as of the related
LIBOR Determination Date, and (iii) the applicable Notional Amount; minus

               (b) the product of: (i) the number of days from and including the
Closing Date to but excluding such Payment Date (assuming 30 day months) divided
by 360, (ii) the Fixed Rate (as defined in the Swap Agreement), and (iii) the
applicable Notional Amount (as defined in the Swap Agreement).

          NONRECOVERABLE ADVANCE: means any Servicer Advance previously made in
respect of a Delinquent Contract by the Servicer pursuant to the terms of the
Contribution and Servicing Agreement, which in the good faith judgment of the
Servicer and pursuant to an Officer's Certificate, will not be ultimately
recoverable by the Servicer from payments by the related Obligor or disposition
of the related Equipment.

          NOTE BALANCE: means, as of the Closing Date, $406,920,000 for the
Class A Notes cumulatively (and, with respect to each tranche thereof,
$71,720,000 for the Class A-1 Notes, $25,000,000 for the Class A-2a Notes,
$25,000,000 for the Class A-2b Notes, $199,200,000 for the Class A-3a Notes and
$86,000,000 for the Class A-3b Notes), $6,940,000 for the Class B Notes
13,870,000 for the Class C Notes $9,250,000 for the Class D Notes, and
$11,560,000 for the Class E Notes and thereafter shall equal the Note Balance
for such class reduced by all principal payments on such class of Notes.

          NOTE OWNER: means, with respect to a Global Note, the Person who is
the owner of such Global Note, as reflected on the books of the Depositary, or
on the books of a Person maintaining an account with the Depositary (directly as
a Depositary Participant or an indirect participant, in each case in accordance
with the rules of the Depositary).

          NOTE PURCHASE AGREEMENT: means any agreement (other than the
Underwriting Agreement) between the Issuer, the Transferor, the Contributor, the
purchaser(s) specified therein and any other parties specified therein, relating
to the purchase of Notes.

                                       24
<PAGE>

          NOTE RATE: means the annualized rate of interest on the relevant class
of Notes (Class A-1 Note Rate on the Class A-1 Notes, Class A-2a Note Rate on
the Class A-2a Notes, Class A-2b Note Rate on the Class A-2b Notes, Class A-3a
Note Rate on the Class A-3a Notes, Class A-3b Note Rate on the A-3b Notes, Class
B Note Rate on the Class B Notes, Class C Note Rate on the Class C Notes, Class
D Note Rate on the Class D Notes and the Class E Note Rate on the Class E Notes
and the interest rate set forth in the Supplement for the Class F Instruments).

          NOTE REGISTER: as defined in Section 2.04 of the Indenture.

          NOTEHOLDER OR HOLDER: means, at any time, any Person in whose name a
Note is registered in the Note Register.

          NOTEHOLDER COUNSEL: means the single legal counsel as selected by
Noteholders evidencing more than 50% of the Voting Rights.

          NOTES: means any of the Class A Notes, Class B Notes, Class C Notes,
Class D Notes and/or Class E Notes (as the case may be) described in Article II
of the Indenture, and authorized by, and authenticated and delivered under, the
Indenture or any Supplement.

          NOTIONAL AMOUNT: has the meaning set forth in the Swap Agreement.

          OBLIGOR: means the obligor under any Contract, including any
guarantor.

          OFFERED NOTES: means the Class A Notes, the Class B Notes, the Class C
Notes, the Class D Notes and the Class E Notes.

          OFFICER'S CERTIFICATE: means a certificate delivered to the Trustee
and signed by Chairman, the President, a Vice President, the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the relevant
entity.

          ONE-MONTH LIBOR: means the Floating Rate (as defined in the related
Confirmation.

          OPINION OF COUNSEL: means a written opinion of counsel, which shall be
reasonably satisfactory in form and substance to the Person to whom it is to be
delivered. Except as otherwise expressly provided in the Indenture, such opinion
may be delivered by inside or outside counsel for the Contributor, the
Transferor or the Issuer.

          ORIGINAL EQUIPMENT COST: means (i) with respect to each Contract
originated by DVI, the vendor's invoice price of the related Equipment at the
time of origination of the related Contract and (ii) with respect to each
Contract acquired by DVI from others, the amount recorded on DVI's records as
paid by DVI to acquire such Contract and the broker's interest in the related
Equipment.

          OUTSTANDING or OUTSTANDING: means, when used with reference to the
Notes and as of any particular date, any Note theretofore and thereupon being
authenticated and delivered except:

                                       25
<PAGE>

          (i) any Note canceled by the Trustee at or before said date;

          (ii) any Note, or portion thereof, for payment of redemption of which
          monies equal to the principal amount or redemption price thereof, as
          the case may be, with interest to the date of maturity or redemption,
          shall have theretofore been irrevocably deposited with the Trustee
          (whether upon or prior to maturity or the redemption date of such
          Note);

          (iii) any Note in lieu of or in substitution for which another Note
          shall have been authenticated and delivered; and

          (iv) any Note owned either by the Transferor or by the Managing Member
          or any Affiliate of either the Transferor or the Managing Member
          (except that, in determining whether the Trustee shall be protected in
          relying upon any request, demand, authorization, direction, notice,
          consent or waiver of Noteholders under the Indenture, only Notes which
          the Trustee knows to be so owned shall be disregarded).

          OVERDUE INTEREST: means, for any Payment Date, the sum of (i) the
Class A Overdue Interest, (ii) the Class B Overdue Interest, (iii) the Class C
Overdue Interest, (iv) the Class D Overdue Interest, and (v) the Class E Overdue
Interest.

          OWNERSHIP INTEREST: means an ownership interest in a Global Note.

          PARTIAL PREPAYMENT AMOUNT: means, with respect to the Collection
Period and a Contract for which the Obligor has requested to make a voluntary
partial prepayment and for which no Substitute Contract has been provided, an
amount equal to the excess, if any, of (A) the difference between (i) the
Discounted Contract Balance of such Contract as of the first day of such
Collection Period together with one month of interest thereon at the Discount
Rate and (ii) the Discounted Contract Balance of such Contract as of the first
day of such Collection Period calculated based on the amount of each Contract
Payment payable by the Obligor after giving effect to the reduction of such
Contract Payment which will result from such partial prepayment, minus (B) any
Contract Payments actually received by the Servicer with respect to the prepaid
portion of such Contract for the current Collection Period on or before the date
of such partial prepayment.

          PAYMENT DATE: means the twelfth of each month (or if such date is not
a Business Day, the immediately succeeding Business Day), commencing December
12, 2002.

          PERSON: means any individual, corporation, limited liability company,
partnership, joint venture, association, joint stock company, trust (including
any beneficiary thereof), unincorporated organization or government or any
agency or political subdivision thereof.

          PLAN: means an "employee benefit plan" within the meaning of Section
3(3) of ERISA or a "plan" within the meaning of Section 4975(e)(1) of the Code.

          POOL: means either Pool A or Pool B.

                                       26
<PAGE>

          POOL A: means the Contracts identified on the Contract Schedule as
constituting Pool A and the other Trust Property related thereto.

          POOL A AGGREGATE DISCOUNTED CONTRACT BALANCE: means, with respect to
any date of determination, the sum of the Discounted Contract Balances of all
Contracts in Pool A.

          POOL A NON-PERFORMING CONTRACT SUBSTITUTION: shall have the meaning
ascribed thereto in Section 7.01(a)(1) of the Contribution and Servicing
Agreement.

          POOL A PREPAID CONTRACT SUBSTITUTION: shall have the meaning ascribed
thereto in Section 7.01(a)(2) of the Contribution and Servicing Agreement.

          POOL B: means the Contracts identified on the Contract Schedule as
constituting Pool B and the other Trust Property related thereto.

          POOL B AGGREGATE DISCOUNTED CONTRACT BALANCE: means, with respect to
any date of determination, the sum of the Discounted Contract Balances of all
Contracts in Pool B.

          POOL B GENERAL CONTRACT SUBSTITUTION: shall have the meaning ascribed
thereto in Section 7.01(b)(1) of the Contribution and Servicing Agreement.

          POOL B PREPAID CONTRACT SUBSTITUTION: shall have the meaning ascribed
thereto in Section 7.01(b)(2) of the Contribution and Servicing Agreement.

          PREDECESSOR CONTRACT: means, except as otherwise defined in a
particular Section of any Transaction Document, with respect to any Substitute
Contract acquired by the Transferor by substitution pursuant to Section 7 of the
Contribution and Servicing Agreement and by the Issuer by substitution pursuant
to Section 7 of the Subsequent Contract Transfer Agreement, the Contract or
Contracts for which such Substitute Contract or any intervening Substitute
Contract has been substituted.

          PREDECESSOR NOTES: means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 of the Indenture in lieu of a
lost, destroyed or stolen Note (or a mutilated Note surrendered to the Trustee)
shall be deemed to evidence the same debt as the lost, destroyed or stolen Note
(or a mutilated Note surrendered to the Trustee).

          PREPAYMENT AMOUNT: means, with respect to any Contract, the sum of (1)
the Discounted Contract Balance as of the first day of the Collection Period
preceding such prepayment, together with one month of interest thereon at the
Discount Rate, (2) any unreimbursed Servicer Advances with respect to such
Contract and (3) any Contract Payments due and outstanding under such Contract
that are not the subject of a Servicer Advance.

          PRINCIPAL TERMS: as defined in Section 2.06(b) of the Indenture.

          PRIORITY PAYMENTS: shall have the meaning ascribed thereto in Section
3.04(c) of the Indenture.

                                       27
<PAGE>

          PROSPECTUS SUPPLEMENT: means the prospectus supplement, dated November
8, 2002, relating to the Class A Notes, the Class B Notes, the Class C Notes and
the Class D Notes, and containing certain information relating to the Class E
Notes.

          PUBLIC GLOBAL NOTE: means a Book-Entry Note evidencing all or part of
an issuance of the Class A Notes, Class B Notes, Class C Notes or Class D Notes
to which the provisions of Article II of the Indenture shall apply.

          PURCHASE OPTION PAYMENT: means as specified in each Contract, any
payment made by the Obligor to purchase the Equipment covered thereby, including
any funds received in respect of either (w) an end of term purchase option for
$1, (x) an end of term option to purchase the Equipment at a stated percentage
of the original cost of the Equipment, (y) an option to purchase the Equipment
at the fair market value of the Equipment determined at the end of the Contract
term or (z) an end of term option to extend the term of the lease for another
immediately successive twelve month period upon the expiration of which the
lessee will own the equipment. The term Purchase Option Payment shall also
include any Balloon Payment that is not an Eligible Balloon Payment.

          RATING AGENCIES: means, when used in the singular, any one of, and,
when used in the plural, each of Fitch, Inc. and Moody's.

          RATINGS EFFECT: means a reduction or withdrawal of a rating on a class
of Notes by a Rating Agency.

          RECORD DATE: means, with respect to any Payment Date relating to any
Definitive Note, the fifth Business Day immediately preceding such Payment Date,
and, with respect to any Payment Date relating to any Book-Entry Note, the
Business Day immediately preceding such Payment Date.

          RECOVERIES: means, with respect to any Contract, any cash sale
proceeds, vendor recourse, payments under personal and other guaranties,
litigation judgments and the present value (calculated at the implicit yield on
each of the Defaulted Contracts) of re-lease rents.

          REDEMPTION DATE: means, with respect to any redemption or partial
redemption of Notes, a date fixed pursuant to Section 10.01 of the Indenture.

                  REDEMPTION PRICE: means, with respect to any Note, and as of
any redemption date fixed by the Issuer, the sum of (x) the outstanding Note
Balance of such Note, and (y) interest accrued thereon to, but not including,
such Redemption Date at the applicable Note Rate.

          REDEMPTION RECORD DATE: means, with respect to any redemption of
Notes, a date fixed pursuant to Section 10.01 of the Indenture.

          RELATED PERSON: means any Person (whether or not incorporated) which
is under common control with the Contributor within the meaning of Section
414(b) or (c) of the Code, or of Section 4001(b) of ERISA.

                                       28
<PAGE>

          REPORTABLE EVENT: means any of the events set forth in Section 4043(b)
of ERISA or the regulations thereunder, a withdrawal from a "Pension Plan"
described in Section 4063 of ERISA, or a cessation of operations described in
Section 4062(3) of ERISA.

          REPURCHASE AMOUNT: means, with respect to any Contract, the sum of (1)
the Discounted Contract Balance as of the first day of the Collection Period
preceding such repurchase, together with one month of interest thereon at the
Discount Rate and (2) any unreimbursed Servicer Advances with respect to such
Contract.

          RESERVE ACCOUNT: means the account specified in Section 3.01(a) of the
Indenture.

          RESERVE ACCOUNT BALANCE: means an amount equal to deposits of all
Reserve Account Deposit Amounts as reduced by (a) all Reserve Account Draws and
(b) all Reserve Account Withdrawals paid to the Transferor or the Class F
Instrumentholder, if any.

          RESERVE ACCOUNT DEPOSIT AMOUNT: means, on any Payment Date, an amount
equal to the excess of (A) the Reserve Account Required Amount over (B) the
amount on deposit in the Reserve Account (after giving effect to any Reserve
Account Draws on such Payment Date).

          RESERVE ACCOUNT DRAW: means, with respect to each Payment Date, the
amount, if any, withdrawn by the Trustee from the Reserve Account for payment of
the Priority Payments pursuant to Section 3.04(c) of the Indenture.

          RESERVE ACCOUNT PROPERTY: means the property set forth in Section
3.08(a) of the Indenture.

          RESERVE ACCOUNT REQUIRED AMOUNT: means, with respect to the Initial
Payment Date, $11,560,273.87 (the "INITIAL RESERVE ACCOUNT REQUIRED AMOUNT");
and, with respect to each Payment Date thereafter, the lesser of either (i) the
Initial Reserve Account Required Amount or (ii) the sum of (a) the Class A Note
Balance, (b) the Class B Note Balance, (c) the Class C Note Balance, (d) the
Class D Note Balance, and (e) the Class E Note Balance, PROVIDED, HOWEVER, that
if a Restricting Event has occurred and is then continuing, then notwithstanding
the foregoing, the Reserve Account Required Amount shall be equal to the sum of
(i) the Reserve Account Required Amount on the immediately preceding Payment
Date (after giving effect to any additions to or withdrawals from the Reserve
Account on such Payment Date) and (ii) all amounts otherwise payable to the
Issuer or the Class F Instrumentholder, if any, in accordance with Section
3.04(b) of the Indenture.

          RESERVE ACCOUNT WITHDRAWAL: means, for each Payment Date, the amount
of such excess, if any, withdrawn from the Reserve Account for payment to the
Issuer or the Class F Instrumentholder pursuant to Section 3.08 of the
Indenture.

          RESIDUAL PAYMENT: means any amount received either by the Servicer or
the Trustee as a Purchase Option Payment under a Contract or proceeds of the
sale of an item of Equipment subject to the lien of the Indenture or rental
payments from the re-leasing of an item of Equipment subject to the lien of the
Indenture after the final Contract Payment due and

                                       29
<PAGE>

payable under the initial terms of the Contract to which such item of Equipment
is subject is made.

          RESIDUAL PRINCIPAL BALANCE: means the excess of (x) the Aggregate
Discounted Contract Balance, over (y) the sum of the Class A Note Balance, the
Class B Note Balance, the Class C Note Balance, the Class D Note Balance, and
the Class E Note Balance.

          RESPONSIBLE OFFICER: means, with respect to the Trustee, any
President, Senior Vice President, Vice President, Assistant Vice President,
Trust Officer or Assistant Secretary with direct responsibility for the
administration of the Trustee's obligations and duties under the Indenture and
with respect to a particular matter, any officer to whom such matter is referred
because of such other officer's knowledge or familiarity with the particular
subject.

          RESTRICTING EVENT: means the condition that exists on any Payment Date
if any one of the following conditions exists: (i) a Delinquency Condition
exists or (ii) an Indenture Event of Default has occurred and is then
continuing.

          RETAINED INTEREST: means, (a) with respect to the Contributor, all
right, title and interest of the Contributor, in and to (i) the Contributed
Property prior to and including the Cut-off Date and (ii) each periodic payment,
if any, set forth in a Contract in respect of maintenance, insurance or taxes;
and (b) with respect to the Company, all right, title and interest of the
Company in and to each Purchase Option Payment as well as any other payment set
forth in a Contract other than any Contract Payment or other payment in respect
of maintenance, insurance or taxes, if any; and (c) with respect to the Issuer,
(i) on the Closing Date, the Initial Aggregate Discounted Contract Balance less
the outstanding principal balance of the Notes and (ii) for each Payment Date
thereafter prior to the repayment in full of the outstanding principal balance
of the Notes, the ending Aggregate Discounted Contract Balance for the related
Payment Date less the outstanding principal balance of the Notes after giving
effect to all amounts paid on such Payment Date and (iii) after the repayment in
full of the outstanding principal balance of the Notes, the ending Aggregate
Discounted Contract Balance for the related Payment Date.

          RULE 144A GLOBAL NOTE: means a Note evidencing all or a part of an
issuance of the Class E Notes registered in the name of the Depositary or its
nominee, and delivered to the Depositary pursuant to the Depositary's
instruction, in accordance with Section 2.02 of the Indenture and bearing the
legend prescribed in Section 2.02 of the Indenture.

          S&P: means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor.

          SALE AGREEMENTS: means the DVI Funding Sale Agreement and the DVI XV
Sale Agreement.

          SCHEDULE: means the Schedule to the 1992 ISDA to the Master Agreement
(Multicurrency-Cross Border, dated as of November 6, 2002 between the Swap
Provider and the Issuer and each other Schedule to the Master Agreement
(Multicurrency-Cross Border) between the Issuer and a Swap Provider.

                                       30
<PAGE>

          SCHEDULED TERMINATION DATE: means, with respect to any Contract, the
date upon which such Contract is scheduled to terminate in accordance with its
terms.

          SECURED EQUIPMENT NOTE: means any Contract in the form of a loan to
the user of the related Equipment secured by such Equipment. A Secured Equipment
Note is identified as "LOAN" on the Contract Schedule.

          SECURITIES ACT: means The Securities Act of 1933 as amended.

          SERVICER: means initially, the Contributor and thereafter, either the
Contributor or the then-acting Successor Servicer(s), if any, appointed pursuant
to the terms of the Contribution and Servicing Agreement.

          SERVICER ADVANCE: means an advance made by the Servicer in accordance
with Section 5.01 of the Contribution and Servicing Agreement.

          SERVICER EVENT OF DEFAULT: means as defined in Section 10.01 of the
Contribution and Servicing Agreement.

          SERVICER ORDER: means a written order or request delivered to the
Trustee and signed in the name of the Servicer by an Authorized Officer.

          SERVICING FEE: means an amount equal to the product of (i) one-twelfth
(or with respect to the Initial Payment Date, a fraction, the numerator of which
is equal to the number of days from the Closing Date to but excluding the
Initial Payment Date, and the denominator of which is equal to 360), (ii) the
Servicing Fee Rate and (iii) the Aggregate Discounted Contract Balance as of the
beginning of the previous Collection Period.

          SERVICING FEE RATE: means 0.75%.

          STATED MATURITY DATE: means, with respect to the Class A-1 Notes, the
Class A-1 Stated Maturity Date, with respect to the Class A-2a Notes, the Class
A-2a Stated Maturity Date, with respect to the Class A-2b Notes, the Class A-2b
Stated Maturity Date, with respect to the Class A-3a Notes, the Class A-3a
Stated Maturity Date, with respect to the Class A-3b Notes, the Class A-3b
Stated Maturity Date, with respect to the Class B Notes, the Class B Stated
Maturity Date, with respect to the Class C Notes, the Class C Stated Maturity
Date, with respect to the Class D Notes, the Class D Stated Maturity Date, and
with respect to the Class E Notes, the Class E Stated Maturity Date.

          SUBSEQUENT CONTRACT TRANSFER AGREEMENT OR SCTA: means the Subsequent
Contract Transfer Agreement, dated as of November 1, 2002, by and between the
Issuer and the Transferor.

          SUBSTITUTE CONTRACT: means, except as otherwise defined in a
particular Section of any Transaction Document, an Eligible Contract substituted
by the Contributor pursuant to either Section 5.03 or Section 7.01 of the
Contribution and Servicing Agreement.

                                       31
<PAGE>

          SUBSTITUTE CONTRACT TRANSFER FORM: means a Substitute Contract
Transfer Form, substantially in the form of Exhibit A to the Subsequent Contract
Transfer Agreement.

          SUBSTITUTION DATE: means any Business Day on which the Contributor
transfers a Substitute Contract to the Transferor (which Substitute Contract is
subsequently transferred by the Transferor to the Issuer and then pledged by the
Issuer to the Trustee).

          SUCCESSOR SERVICER: means the Trustee or any successor to the Servicer
pursuant to the Contribution and Servicing Agreement.

          SUCCESSOR SERVICER RESERVE ACCOUNT: means the account specified in
Section 3.01(a) of the Indenture.

          SUCCESSOR SERVICER RESERVE ACCOUNT PROPERTY: means the property set
forth in Section 3.07(a) of the Indenture.

          SUPPLEMENT: means a supplement to the Indenture complying with the
terms of the Indenture.

          SWAP AGREEMENT: means the 1992 ISDA Master Agreement, dated as of
November 1, 2002, between the Swap Provider and the Issuer, including the
Schedule thereto and including each Confirmation executed in connection
therewith, each dated as of November 6, 2002, between the Swap Provider and the
Issuer.

          SWAP PROVIDER: means Bank of America, N.A. and any permitted assignee
thereof or successor thereto.

          TRANSACTION DOCUMENTS: means collectively, the Contribution and
Servicing Agreement, the Subsequent Contract Transfer Agreement, the Sale
Agreements, the Indenture, the Underwriting Agreement, any Note Purchase
Agreement(s) and any and all agreements relating to the servicing of the
Contracts and the issuance of the Notes.

          TRANSFEROR: means DVI Receivables Corp. XVIII, a corporation organized
and existing under the laws of the State of Delaware and wholly-owned by DVI,
and its permitted successors and assigns.

          TRANSFEROR ORDER or TRANSFEROR REQUEST: means a written order or
request delivered to the Trustee and signed in the name of the Transferor by an
Authorized Officer.

          TRUST INDENTURE ACT or TIA: means the Trust Indenture Act of 1939, as
amended from time to time, as in effect on any relevant date.

          TRUST PROPERTY: means (a) the Company Assets, (b) the Sold Trust
Property (as defined in the DVI XV Sale Agreement) and the Sold Borrower
Property (as defined in the DVI Funding Sale Agreement), (c) all moneys from
time to time held by the Trustee pursuant to Section 3.01 of the Indenture
pending deposit in one of the accounts referred to therein, (d) all moneys from
time to time on deposit in each Lock-Box Account, Collection Account, the
Reserve Account, the Successor Servicer Reserve Account, the Distribution
Account, Class A

                                       32
<PAGE>

Distribution Sub-Account, Class B Distribution Sub-Account, Class C Distribution
Sub-Account, Class D Distribution Sub-Account, the Class E Distribution
Sub-Account and Class F Distribution Sub-Account, if any, including all
investments and income from the investment of such moneys, (e) all of the
Issuer's right, title and interest then or thereafter acquired under the
Contribution and Servicing Agreement, (f) all of the Issuer's right, title and
interest then or thereafter acquired under the Subsequent Contract Transfer
Agreement and (g) all income, payments and proceeds of any of the foregoing or
relating thereto. For the avoidance of doubt, the term Trust Property excludes
all right, title and interest of the Issuer in (a) any Contract which has been
released from the lien of the Indenture pursuant to Section 4.03 or Section 4.04
of the Indenture, (b) the Equipment related to such Contract and (c) all income,
payments and proceeds of any of the foregoing or relating thereto accruing after
the effective date of the release of such Contract (although such amounts shall
remain subject to the repayment and reimbursement requirements of Section 4.03
of the Indenture).

          TRUST STATUTE: means Chapter 38 of Title 12 of the Delaware Code, 12
Del. C.ss.3801 ET. SEQ.

          TRUSTEE: means the Person named as the "Trustee" in the first
paragraph of the Indenture until a successor Person shall have become the
Trustee pursuant to the applicable provisions of the Indenture, and thereafter
"Trustee" shall mean such successor Person; PROVIDED, that the provisions of
Sections 7.06 and 8.11 of the Indenture, as applicable to any Person at any time
serving as Trustee under the Indenture, shall survive (with respect to any
period prior to the date of such termination) the termination of such Person's
status as Trustee under the Indenture and the succession of any other Person to
such status.

          TRUSTEE FEE: means an amount equal to the product of (i) one-twelfth,
(ii) .01% and (iii) the Aggregate Discounted Contract Balance as of the
beginning of the previous Collection Period.

          UNDERWRITERS: means Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Banc One Capital Markets, Inc., Banc of America Securities LLC and
Nomura Securities International, Inc.

          UNDERWRITING AGREEMENT: means the underwriting agreement dated as of
November 6, 2002, by and among the Contributor, the Issuer and the Transferor
and the Managing Member as confirmed and accepted by Merrill Lynch, Pierce,
Fenner & Smith Incorporated as representative (on behalf of itself, Nomura
Securities International Inc., Banc One Capital Markets, Inc. and Banc of
America Securities LLC), and Bank of America, N.A. as the Swap Provider.

          UNIFORM COMMERCIAL CODE or UCC: means, with respect to a particular
jurisdiction, the Uniform Commercial Code, as in effect from time to time in
such jurisdiction, or any successor statute thereto.

          UNITS: means the membership interests in the Issuer.

                                       33
<PAGE>

          UNRELATED PROPERTY: means property or rights under a Contract conveyed
or otherwise granted as consideration for DVI's entering into any of the
foregoing agreements, and not as collateral or other credit enhancement for the
performance of the obligations of the related Obligor under such agreement.

          VOTING RIGHTS: means, for so long as any Notes remain outstanding, and
shall encompass, for so long as any Class A Note, Class B Note, Class C Note,
Class D Note or Class E Note is outstanding, the voting rights as of the date of
determination (i) the votes of Class A-1 Noteholders evidencing 100% of the
then-outstanding Class A-1 Note Balance, and, after the Note Balance of such
class equals zero, then (ii) the votes of Class A-2 Noteholders evidencing 100%
of the then-outstanding Class A-2 Note Balance, and, after the Note Balance of
such class equals zero, then (iii) the votes of the Class A-3 Noteholders
evidencing 100% of the then-outstanding Class A-3 Note Balance, and, after the
Note Balance of such class equals zero, then (iv) the votes of Class B
Noteholders evidencing 100% of the then-outstanding Class B Note Balance, and,
after the Note Balance of such class equals zero, then (v) the votes of the
Class C Noteholders evidencing 100% of the then-outstanding Class C Note
Balance, and, after the Note Balance of such class equals zero, then (vi) the
votes of Class D Noteholders evidencing 100% of the then-outstanding Class D
Note Balance, and, after the Note Balance of such class equals zero, then (vii)
the votes of the Class E Noteholders evidencing 100% of the then-outstanding
Class E Note Balance. When none of the Class A Notes, Class B Notes, Class C
Notes, Class D Notes and Class E Notes is outstanding, 100% of the Voting Rights
shall be exercised by the Holders of the Class F Instrument, if any. When used
in the Transaction Documents, "50% of the Voting Rights" and "66 2/3% of the
Voting Rights" shall be deemed to refer to fifty, and sixty-six and two-thirds
percent, respectively, of each class of Notes then Outstanding and then entitled
to vote as measured by the Outstanding Note Balance of such class on such date
of determination.

                                       34EXHIBIT 4.2

<PAGE>

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

                          DVI FINANCIAL SERVICES INC.,
                            CONTRIBUTOR AND SERVICER

                                       AND

                           DVI RECEIVABLES CORP. XVIII

                      CONTRIBUTION AND SERVICING AGREEMENT

                          Dated as of November 1, 2002

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

ALL RIGHTS IN AND TO THIS AGREEMENT ON THE PART OF DVI RECEIVABLES CORP. XVIII
HAVE BEEN ASSIGNED TO DVI RECEIVABLES XVIII, L.L.C. AND REASSIGNED AND ARE
SUBJECT TO A SECURITY INTEREST IN FAVOR OF U.S. BANK NATIONAL ASSOCIATION (AS
SUCCESSOR TO U.S. BANK TRUST NATIONAL ASSOCIATION), AS TRUSTEE, UNDER THE
INDENTURE DATED AS OF NOVEMBER 1, 2002 FOR THE BENEFIT OF THE PERSONS REFERRED
TO THEREIN.

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

SECTION 1.  CAPITAL CONTRIBUTION...............................................3
   1.01     Contribution.......................................................3

SECTION 2.  REPRESENTATIONS, WARRANTIES, COVENANTS AND
            AGREEMENTS OF THE CONTRIBUTOR......................................5
   2.01     Corporate Organization and Authority...............................6
   2.02     Business and Property..............................................6
   2.03     Equipment and Contracts............................................6
   2.04     Contract Schedule.................................................11
   2.05     Pending Litigation................................................11
   2.06     No Material Event.................................................12
   2.07     Transactions Legal and Authorized.................................12
   2.08     Governmental Consent..............................................12
   2.09     Compliance with Law...............................................12
   2.10     Ordinary Course; No Insolvency....................................13
   2.11     Assets and Liabilities............................................13
   2.12     Fair Consideration; Valid Sale....................................13
   2.13     Ability to Pay Debts..............................................13
   2.14     Bulk Transfer Provisions..........................................14
   2.15     Tax Returns.......................................................14
   2.16     Transfer Taxes....................................................14
   2.17     Principal Executive Office........................................15
   2.18     Legal Name........................................................15
   2.19     Servicing Provisions Customary....................................15
   2.20     Defaults..........................................................15
   2.21     ERISA.............................................................15
   2.22     All Filings Made..................................................15
   2.23     Nonconsolidation..................................................15
   2.24     All Representations and Warranties True...........................17
   2.25     Prospectus Supplement.............................................17
   2.26     Insurance.........................................................17
   2.27     No Bankruptcy Petition Against the Transferor, the Managing
            Member or the Issuer..............................................17
   2.28     Delivery of Obligor Contact Information...........................17

SECTION 3.  REPRESENTATIONS, WARRANTIES, COVENANTS AND
            AGREEMENTS OF THE TRANSFEROR......................................17
   3.01     Transferor Organization and Authority; Subsidiaries...............18
   3.02     Due Authorization and No Violation................................18
   3.03     No Litigation.....................................................18
   3.04     Principal Office..................................................18
   3.05     Tax Returns.......................................................18
   3.06     Solvency..........................................................19
   3.07     Approvals.........................................................19

                                       -i-
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
                                                                            PAGE

   3.08     Nonconsolidation..................................................19

SECTION 4.  ADMINISTRATION OF CONTRACTS.......................................19
   4.01     Servicer to Act...................................................19
   4.02     Contract Amendments and Modifications; Repurchase of Contracts
            by Servicer.......................................................21
   4.03     Contract Defaults; Residual Realizations..........................22
   4.04     Costs of Servicing; Servicer's Fee................................22
   4.05     Other Transactions................................................24
   4.06     Collection of Moneys..............................................24
   4.07     Voluntary Termination.............................................24

SECTION 5.  SERVICER ADVANCES; REPURCHASE OF CONTRACTS........................25
   5.01     Servicer Advances.................................................25
   5.02     Indemnification...................................................25
   5.03     Repurchase and Substitution of Contracts; Other Payments..........26

SECTION 6.  INFORMATION TO BE PROVIDED........................................27
   6.01     Monthly Servicer Report...........................................27
   6.02     Tax Reporting and Treatment.......................................27
   6.03     Other Information.................................................28
   6.04     Annual Independent Certified Public Accountant's Report...........28
   6.05     Payment Advices...................................................28

SECTION 7.  SUBSTITUTION OF CONTRACTS.........................................28
   7.01     Substitution......................................................28
   7.02     Notice of Substitution............................................31
   7.03     Contributor's and Servicer's Subsequent Obligations...............31
   7.04     Usage of Predecessor Contracts in Calculations....................31

SECTION 8.  THE SERVICER......................................................31
   8.01     Corporate Existence of the Servicer...............................31
   8.02     Limitation on Liability of the Servicer and Others................32
   8.03     Servicer Not to Resign or be Removed..............................32
   8.04     Financial and Business Information................................33
   8.05     Officer's Certificates............................................34
   8.06     Inspection........................................................34
   8.07     Servicer Records..................................................34
   8.08     Insurance.........................................................34
   8.09     No Bankruptcy Petition Against the Transferor, the Managing
            Member or the Issuer..............................................34
   8.10     Fidelity Bond and Errors and Omissions Insurance..................34

SECTION 9.  THE CONTRIBUTOR...................................................35
   9.01     Corporate Existence of the Contributor............................35
   9.02     Financial and Business Information................................35

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)
                                                                            PAGE

   9.03     Inspection........................................................36
   9.04     No Bankruptcy Petition Against the Managing Member, the
            Transferor or the Issuer..........................................36
   9.05     Accounts, Books and Records.......................................36
   9.06     Tax Returns.......................................................37
   9.07     Insurance.........................................................37
   9.08     Protection of Right, Title and Interest...........................37
   9.09     Other Liens or Interests..........................................38
   9.10     Costs and Expenses................................................38

SECTION 10. EVENTS OF DEFAULT.................................................38
   10.01    Servicer Events of Default........................................38
   10.02    Termination.......................................................40
   10.03    Trustee to Act; Appointment of Successor..........................41
   10.04    Servicer to Cooperate.............................................41
   10.05    Remedies Not Exclusive............................................42
   10.06    Waiver of Past Defaults...........................................42

SECTION 11. ASSIGNMENT........................................................42
   11.01    Assignment to Trustee.............................................42
   11.02    Assignment by Contributor or Servicer.............................42

SECTION 12. NATURE OF CONTRIBUTOR'S OBLIGATIONS AND SECURITY THEREFOR.........43
   12.01    Contributor's Obligations Absolute................................43
   12.02    Power of Attorney.................................................43

SECTION 13. MISCELLANEOUS PROVISIONS..........................................44
   13.01    Sale..............................................................44
   13.02    Amendment.........................................................44
   13.03    Waivers...........................................................45
   13.04    Notices...........................................................45
   13.05    Costs and Expenses................................................46
   13.06    Third Party Beneficiaries.........................................47
   13.07    Survival of Representations.......................................47
   13.08    Confidential Information..........................................47
   13.09    Headings and Cross-References.....................................47
   13.10    GOVERNING LAW.....................................................47
   13.11    Consent to Jurisdiction...........................................47
   13.12    Counterparts......................................................47
   13.13    Statutory References..............................................47

                                     -iii-

<PAGE>

                      CONTRIBUTION AND SERVICING AGREEMENT

          This Agreement is made and dated as of November 1, 2002, by and
between DVI FINANCIAL SERVICES INC., a Delaware corporation ("DVI"), as
contributor (in such capacity, the "CONTRIBUTOR") and servicer (in such
capacity, the "SERVICER") hereunder, and DVI RECEIVABLES CORP. XVIII, a Delaware
corporation (the "TRANSFEROR").

                                    RECITALS

          A. Pursuant to this Agreement, the Contributor is contributing and
assigning to the Transferor, (i) all right, title and interest of the
Contributor in, to and under, INTER ALIA, a pool of non-cancelable Finance
Leases, Fair Market Value Leases, Leveraged Lease Loans, Lease Receivable
Purchases and Secured Equipment Notes described in Exhibit A hereto (ii) certain
payments and proceeds received relating to the Contracts that are payable after
the Cut-Off Date and (iii) an interest in each item of underlying Equipment that
is subject to each Contract described in Exhibit A hereto. The Contributor may
contribute and assign certain Substitute Contracts and an interest in the
Equipment related thereto and certain other related payments and proceeds in
accordance with the terms of this Agreement.

          B. Pursuant to the Subsequent Contract Transfer Agreement (the
"SCTA"), dated as of November 1, 2002, by and between the Transferor and the
Issuer, the Transferor is transferring to the Issuer all of its right, title and
interest in and to the Company Assets.

          C. Pursuant to the Sale Agreement (the "DVI Funding Sale Agreement")
dated as of November 1, 2002, among the Issuer, the Transferor, DVI Funding
Corporation, DVI Funding, L.L.C., and DVI Financial Services Inc., DVI Funding
L.L.C. will transfer to the Issuer all of its right, title and interest in, to
and under the Contracts listed on Exhibit A thereto and the other Sold Borrower
Property (as defined in the DVI Funding Sale Agreement) and DVI Funding
Corporation will transfer to the Transferor all of its right, title and interest
in, to and under the Sold Company Assets (as defined in the funding Sale
Agreement). Pursuant to the Sale Agreement (the "DVI XV Sale Agreement), dated
as of November 1, 2002, among the Issuer, the Transferor, DVI Receivables XV
Corp., DVI Receivables XV, L.L.C., and DVI Financial Services Inc., DVI
Receivables XV, L.L.C., will transfer to the Issuer all of its right, title and
interest in, to and under the Contracts listed on Exhibit A thereto and the
other Sold Trust Property (as defined in the DVI XV Sale Agreement) and DVI
Receivables XV Corp. will transfer to the Transferor all of its right, title and
interest in, to and under the Sold Company Assets (as defined in the DVI XV Sale
Agreement). The Contracts transferred to the Issuer pursuant to the Funding Sale
Agreement and the DVI XV Sale Agreement (each a "Sale Agreement" and together
the "Sale Agreements") were originated by DVI.

          D. Pursuant to the Indenture (the "DVI XVIII Indenture"), dated as of
November 1, 2002, the Issuer is issuing its Asset-Backed Securities (the
"Notes"). Pursuant to the Indenture, the Issuer is granting to the trustee
thereunder (the "Trustee"), for the benefit and security of the Swap Provider
and the holders from time to time of the Notes, a security, interest in the
Trust Property, which includes, INTER ALIA, all right, title (other than
ownership of any Equipment) and interest of the Transferor, DVI Funding LLC, and
DVI Receivables XV, LLC in, to and under the Contracts, the Equipment and this
Agreement.

                                       1
<PAGE>

          E. In connection with the contribution and assignment of such
Contracts and the transfer of an interest in the related Equipment, the
Contributor agrees to undertake certain obligations set forth herein.

          F. In consideration for the Servicing Fee and other amounts as more
particularly set forth herein, the Servicer agrees to undertake certain
obligations set forth herein.

          G. Capitalized terms used but not defined herein shall have the
respective meanings set forth in Appendix I hereto.

                                       2
<PAGE>

                                   AGREEMENTS

     SECTION 1. CAPITAL CONTRIBUTION

          1.01 CONTRIBUTION.

          (a) Upon the terms and conditions herein set forth, the Contributor
hereby agrees to transfer, assign and contribute, on one or more Contract
Transfer Dates (or, in case of any Substitute Contracts, the related
Substitution Date), without recourse except as set forth herein, all right,
title and interest in and to the Contributed Property. The Transferor assumes
all of the obligations under the Contracts arising after the related Cut-Off
Date. All funds which are part of the Contributed Property and which are
received by DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI Funding
Corporation, DVI Funding LLC or the Contributor under or in connection with the
Contracts that are payable after the applicable Cut-Off Date shall be received,
held and applied by such Person in trust for the benefit of the Transferor as
owner of the Contracts.

          (b) After giving effect to such contribution, the ownership of each
Contract will be vested in the Transferor (and the Issuer as its assignee). On
each Contribution Date, the Contract Files and any other documents relating to
the Contracts and the other Contributed Property that are delivered as part of
the Contributed Property or as incidental thereto shall be delivered to the
Trustee and held in trust by the Trustee for the benefit of the Noteholders and
the Swap Provider. The Contributor agrees to take no (and to not permit DVI
Receivables Corp. XV, DVI Receivables XV, LLC, DVI Funding Corporation, DVI
Funding LLC or any of its subsidiaries to take any) action inconsistent with the
ownership (by the Transferee and the Issuer, as its assignee) of the Contracts
and the other Contributed Property, to promptly indicate to all parties with a
valid interest inquiring as to the true ownership of the Contracts and the other
Contributed Property, that the Contracts and the other Contributed Property have
been transferred and assigned to the Transferor (and the Issuer as its assignee)
and to claim no ownership interest in the Contracts and the other Contributed
Property. Nothing contained in this Agreement shall affect in any respect the
rights of the Contributor, its successors and assigns, to deal in any Unrelated
Property.

          (c) The Servicer shall take, or cause to be taken, such actions and
execute such documents as are necessary to protect the Trustee's interest in the
Contracts, security interest in the Equipment and the other Trust Property
against all other Persons, including, without limitation, the following: (i) in
the case of the Contracts, on or before the Closing Date (or, in case of any
Substitute Contracts, the related Substitution Date), (A) filing UCC-1 financing
statements naming the Contributor as debtor, the Trustee as secured party, and
the Transferor and the Issuer as intermediate secured parties, and the Contracts
as collateral in the jurisdiction in which the Contributor is "located" (as
defined in the UCC), (B) UCC-1 financing statements naming the Transferor as
debtor, the Issuer as secured party, the Trustee as assignee of the secured
party and the Contracts as collateral in the jurisdiction in which the
Transferor is "located" (as defined in the UCC), (C) filing UCC-1 financing
statements naming the Issuer as debtor and the Trustee as secured party in the
jurisdiction in which the Issuer is "located" (as defined in the UCC), and (D)
filing UCC-3 termination statements or releases from lenders, if any, with liens
on the Contracts; (ii) in the case of the assignment or grant of its interests
in the

                                       3
<PAGE>

Equipment, within thirty, days after the Closing Date (or, in case of any
Substitute Contracts, the related Substitution Date), (A) with respect to a
security interest in Equipment (other than Equipment for which the Original
Equipment Cost is less than $25,000), filing UCC financing statements naming the
Obligor as debtor, the Contributor as secured party, the Trustee, as assignee of
the secured party and the Equipment as collateral, in the jurisdiction in which
the Obligor is "located" (as defined in the UCC), (B) with respect to the
Transferor's interest in the Equipment related to DVI Fair Market Value Leases,
filing precautionary UCC-1 financing statements (i) naming the Contributor, DVI
Funding Corporation or DVI Receivables Corp, XV, as the case may be, as debtor,
the Transferor as secured party, and the Issuer as assignee of secured party,
and the Equipment as collateral, in the jurisdiction in which debtor is
"located" as defined in the UCC), (ii) naming the Transferor as debtor, the
Issuer as secured party, and the Trustee, as assignee of the secured party, and
the Equipment as collateral, in the jurisdiction in which the Transferor is
"located" (as defined in the UCC), (iii) naming the Issuer as debtor and the
Trustee as secured party, and the Equipment as collateral, in the jurisdiction
in which the Issuer is "located" (as defined in the UCC), (C) with respect to
all Fair Market Value Leases other than DVI Fair Market Value Leases, filing
UCC-1 financing statements (i) naming the originator as debtor, the Contributor
as secured party and DVI's interest in the Equipment as collateral, in the
jurisdiction in which the originator is "located" (as defined in the UCC), (ii)
naming the Contributor, DVI Funding Corporation or DVI Receivables Corp, XV, as
the case may be, as debtor, the Transferor as secured party, and the Trustee as
assignee of the secured party, and the related Equipment as collateral, in the
jurisdiction in which the debtor is "located" (as defined in the UCC), (iii)
naming the Transferor as debtor, the Issuer as secured party, and Trustee, as
assignee of the secured party, and the related Equipment as collateral, in the
jurisdiction in which the Transferor is "located" (as defined in the UCC), (iv)
naming the Issuer as debtor, and the Trustee, as secured party and the related
Equipment as collateral in the jurisdiction in which the Issuer is "located" (as
defined in the UCC), (D) with respect to all Fair Market Value Leases, filing
UCC-1 financing statements naming the Transferor as debtor, the Trustee as
secured party and the Transferor's security interest in the Equipment as
collateral in the jurisdiction in which the Transferor is "located" (as defined
in the UCC), (E) filing UCC-3 assignments of any "precautionary" filings naming
the Obligor as debtor, the Contributor, DVI Funding Corporation or DVI
Receivables Corp, XV, as the case may be, as secured party, the Trustee, as
assignee of the secured party and the Equipment as collateral (other than
Equipment for which the Original Equipment Cost is less than $25,000), in the
jurisdiction in which the Obligor is "located" (as defined in the UCC), (F) with
respect to Equipment subject to Leveraged Lease Loans or Lease Receivable
Purchases, filing UCC-3 assignments naming the Obligor as debtor, the
Contributor, DVI Funding Corporation or DVI Receivables Corp, XV, as the case
may be, as secured party, the Trustee, as assignee of the secured party and the
Equipment as collateral, in the jurisdiction in which the Obligor is "located"
(as defined in the UCC), (G) filing UCC-3 termination statements or releases
from lenders, if any, with liens on the Equipment, in the jurisdiction in which
the Lender is "located" (as defined in the UCC), (H) with respect to any
Equipment for which a certificate of title has been issued, making an
application for notation of lien on each such certificate of title indicating
the interest of the Trustee, (I) filing UCC assignments with respect to each
Contract acquired from a third party, naming such person as debtor/seller, the
Contributor, DVI Funding LLC or DVI Receivables XV LLC, as the case may be, as
secured party/purchaser, the Trustee as assignee of the secured party and such
acquired contracts as collateral, in the jurisdiction in which the debtor/seller
is "located" (as defined in the

                                       4
<PAGE>

UCC), (J) filing UCC assignments with respect to each Leveraged Lease Loan or
Lease Receivable Purchase, naming the related Obligor as debtor, the
Contributor, DVI Funding LLC or DVI Receivables XV LLC, as the case may be, as
secured party, the Trustee as assignee of the secured party and the related
underlying equipment lease as collateral, in the jurisdiction in which the
Obligor is "located" (as defined in the UCC), (K) delivering a certificate
certifying that it has (1) made the filings of UCC financing statements set
forth above and certifying that copies of such UCC financing statements are on
file with the Trustee and (2) made the applications set forth above and
attaching copies of such applications and (2) the filing of the UCC financing
statements required under the Sale Agreements. Thereafter, the Contributor
promptly shall file such additional UCC financing statements, continuation
statements and assignments and cause to be made such notations on certificates
of title with respect thereto as may be necessary because of equipment
replacements in accordance with the provisions of any Contract, or otherwise so
that the interest of the Trustee in (x) each of the Contracts, (y) the Equipment
which is subject to the Contracts and (z) the remainder of the Trust Property
will be perfected by such filings with the appropriate UCC filing offices and/or
notations on the appropriate certificates of title.

          (d) If (i) any change in any of the Contributor's name, structure or
the location of its jurisdiction of organization, place of business or chief
executive office occurs, then the Contributor shall deliver thirty (30) days'
prior written notice of such change or relocation to the Transferor and the
Trustee and (ii) no later than sixty (60) days after the effective date of such
change or relocation, shall file such amendments or statements as may be
required to preserve and protect the Transferor's, the Issuer's and the
Trustee's interest in the Contracts, the Equipment and the other Trust Property.
The Contributor shall pay all filing fees or taxes payable in respect of any UCC
financing or continuation statements required to be filed pursuant to this
Section 1.01(d).

          (e) On or prior to the Closing Date or the related Substitution Date,
as applicable, the Contributor shall deliver to the Trustee the sole original,
manually executed counterpart of each Contract that constitutes "chattel paper"
(or, if the original Contract is in the form of a schedule or supplement to a
master lease or loan, all original counterparts of such schedule or supplement
previously in the possession of the Contributor or the Transferor together with
a true and correct copy of such master lease or loan) or an "instrument". The
Contributor will cause its accounting records to be clearly and unambiguously
marked to show that such Contract has been transferred by the Contributor to the
Transferor, and by the Transferor to the Issuer, and then pledged by the Issuer
to the Trustee for the benefit of the Noteholders and the Swap Provider.

     SECTION 2. REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS
                OF THE CONTRIBUTOR

          The Contributor (in its capacity as such and as the initial Servicer
under this Agreement) hereby represents and warrants to the Transferor and
covenants and agrees with the Transferor for the benefit of the Transferor, the
Issuer, the Trustee, the Swap Provider and the Noteholders with respect to the
Initial Contracts, as of the Closing Date and, with respect to any Substitute
Contracts (except for Sections 2.02 and 2.25) as of each Substitution Date
(unless otherwise indicated herein):

                                       5
<PAGE>

          2.01 CORPORATE ORGANIZATION AND AUTHORITY. The Contributor (in its
capacity as such and as the initial Servicer under this Agreement):

          (a) is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation;

          (b) has all requisite power and authority and all necessary licenses
and permits to own and operate its properties and to carry on its business as
now conducted (except where the failure to have such licenses and permits could
not individually or in the aggregate have a material adverse effect on the
business or condition (financial or otherwise) of the Contributor or impair the
enforceability of any Contract) and to enter into and perform its obligations
under this Agreement and each Transaction Document to which it is a party and
the transactions contemplated hereby, including performance of the duties of the
Servicer and the Contributor hereunder;

          (c) has duly qualified and is authorized to do business and is in good
standing as a foreign corporation in each jurisdiction where the character of
its properties or the nature of its activities makes such qualification
necessary (except where the failure to be so qualified or in good standing could
not individually or in the aggregate have a material adverse effect on the Trust
Property or the business or condition (financial or otherwise) of the
Contributor or impair the enforceability of any Contract); and

          (d) has duly executed and delivered this Agreement and each
Transaction Document to which it is a party and all other documents delivered in
connection herewith, and this Agreement and each Transaction Document to which
it is a party are each the legal, valid and binding obligation of the
Contributor enforceable in accordance with the terms hereof except as
enforcement of such terms may be limited by bankruptcy, insolvency, moratorium
or other similar laws affecting the rights of creditors generally and by
equitable principles (regardless of whether such enforceability is in a
proceeding in equity or at law).

          2.02 BUSINESS AND PROPERTY. The Prospectus Supplement (the "PROSPECTUS
SUPPLEMENT") dated November 8, 2002, to the Prospectus, dated February 7, 2002,
correctly describes in all material respects the Initial Contracts and the
general nature of the business of the Contributor.

          2.03 EQUIPMENT AND CONTRACTS.

          (a) As to each Contract:

          (i) (A) immediately prior to the transfers and conveyances set forth
     herein, the Contributor will be the sole owner of, and have good and
     marketable title to, the subject Contracts. With respect to any Finance
     Lease, Leveraged Lease Loan, Secured Equipment Note or Lease Receivable
     Purchase, the Contributor will have a valid first priority security
     interest in the equipment lease and the Equipment that has been pledged as
     collateral security for such Leveraged Lease Loan, Fair Market Value Lease
     or Lease Receivable Purchase and (with respect to each Fair Market Value
     Lease) a valid first priority ownership interest in such Contract and the
     related equipment subject thereto; (B) immediately prior to the transfers
     and conveyances set forth herein, the

                                       6
<PAGE>

     Contributor will have acquired either good title to each item of Equipment
     or, with respect to the Equipment that is the subject of a Secured
     Equipment Note, Lease Receivables Purchase, Finance Lease or a Leveraged
     Lease Loan, a valid first priority perfected security interest therein from
     the related Obligor (except for Equipment for which the Original Equipment
     Cost is less than $25,000). Immediately prior to such date, with respect to
     each item of Equipment related to Fair Market Value Leases, the Contributor
     will have paid in full to the manufacturer or supplier or Obligor, as the
     case may be, the purchase price and any related charges in connection with
     the acquisition of such Equipment; (C) upon the transfer to the Transferor
     by the Contributor of the Contributor's interest in the Contracts and its
     interest in the Equipment pursuant to Section 1 hereof, the Transferor
     will, after giving effect to the provisions of Section 1.01(d), have a
     valid first priority perfected ownership interest in, and have good title
     to the Contributed Property including the Contracts and either a valid
     first priority, security, interest in the Contributor's interest in the
     Equipment (except for Equipment for which the Original Equipment Cost is
     less than $25,000), or, with respect to Fair Market Value Leases, an
     ownership interest in the related Equipment subject to any Contract; at
     such time, the Contracts and the Transferor's interest in the Equipment
     will be free and clear of all Liens other than the rights of each Obligor
     under the Contract to which such Obligor is a party and Liens to be
     discharged on the Closing Date; and there will be no delinquent taxes or
     other outstanding charges affecting the Equipment which are or may be
     Liens;

          (ii) each of the Contracts is a legal, valid and binding full recourse
     obligation of the related Obligor, enforceable by the Contributor (and its
     designee) against such Obligor in accordance with the terms thereof, except
     as such enforcement may be limited by bankruptcy, insolvency,
     reorganization or other laws relating to or affecting the enforcement of
     creditors' rights and by general equitable principles, and is in full force
     and effect, and any and all requirements of any federal, state or local law
     including, without limitation, usury, truth-in-lending and equal credit
     opportunity laws applicable to the origination, enforceability or
     assignment of each Contract have been complied with; and the Contributor
     has no knowledge of any challenge, dispute or claim by the Obligor under or
     affecting any Contract or of the bankruptcy or the insolvency of any such
     Obligor;

          (iii) the obligation of each Obligor to pay Contract Payments under
     each of its related Contract(s) throughout the term thereof is and will be
     unconditional, without any right of set-off by such Obligor and without
     regard to any event affecting the Equipment, the obsolescence of any
     Equipment, any claim of such Obligor against the Contributor or any change
     in circumstance of such Obligor or any other circumstance whatsoever;

          (iv) the Contributor has no knowledge that any item of the Equipment
     has suffered any loss or damage except for such Equipment that has been
     restored to its original condition, ordinary wear and tear excepted;

                                       7
<PAGE>

          (v) each Contract requires the Obligor thereunder to either maintain
     insurance covering damage to, destruction or theft of the Equipment subject
     thereto in an amount at least equal to the remaining Discounted Contract
     Balance of such Contract;

          (vi) as of the Cut-Off Date, (A) no Contract had a remaining term of
     more than 85 months, (B) no Contract Payment under any Contract is
     delinquent for more than sixty (60) days and (C) no event of default has
     occurred and is continuing under any Contract;

          (vii) there will be no facts or circumstances existing as of the time
     of the transfer pursuant to this Agreement which give rise, or would give
     rise at any time in the future, to any right of rescission, offset,
     counterclaim or defense, including the defense of usury, to the obligations
     of any Obligor, including the obligation of such Obligor to pay all amounts
     due with respect to any Contract and neither the operation of any of the
     terms of any Contract or the exercise of any right thereunder will render
     such Contract unenforceable in whole or in part or subject to any right of
     rescission, offset, counterclaim or defense, including the defense of
     usury, and no such right of rescission, offset, counterclaim or defense has
     been asserted with respect thereto;

          (viii) no Contract has been amended, altered or modified in any
     respect and no provision of any Contract has been waived, except in writing
     and copies of all such writings are attached to the Contract delivered to
     the Transferor;

          (ix) no Obligor has been released, in whole or in part, from any of
     its obligations in respect of a Contract; no Contract has been satisfied,
     cancelled or subordinated, in whole or in part, or rescinded, and no
     Equipment has been released from the related Contract, in whole or in part,
     nor has any instrument been executed that would effect any such
     satisfaction, release, cancellation, subordination or rescission;

          (x) each Contract is in substantially one of the forms included as
     Exhibit G to this Agreement, and no Contract shall have been the subject of
     any restructuring of the terms and provisions thereof;

          (xi) no Contract permits early termination or voluntary prepayment by
     the Obligor;

          (xii) no right of the Contributor with respect to an Obligor's failure
     to pay all rent due under any Contract has been waived by the Contributor;

          (xiii) each Contract is "chattel paper" or an "instrument" under the
     UCC as in effect in the applicable jurisdiction; the sole executed
     counterpart of each Contract that constitutes chattel paper or an
     instrument is in the possession of the Trustee and all of the documents
     required to be delivered to the Trustee in connection therewith pursuant to
     Section 1 have been so delivered;

          (xiv) no Obligor is an Affiliate of the Contributor or the Servicer;

                                       8
<PAGE>

          (xv) the Contributor has no knowledge that the obligations of any
     Obligor under any Contract will not be paid in full;

          (xvi) no Contract will have been originated in or be subject to the
     laws of any jurisdiction whose laws would make the assignment and transfer
     thereof pursuant to the terms hereof or of the other Transaction Documents
     unlawful;

          (xvii) in the case of each Contract which consists of a master lease
     and one or more exhibits or schedules thereto, (A) the Contributor has not
     assigned and will not assign such master lease in its entirety, and has not
     delivered and will not deliver physical possession of such master lease, to
     any Person other than the Trustee and (B) such exhibits or schedules
     constitute a separate contract and are not part of any other contract not
     sold to the Transferor;

          (xviii) all parties to each Contract had requisite authority and
     capacity to execute such Contract;

          (xix) prior to the time of assignment, transfer, sale and contribution
     to the Transferor, each Contract will have been originated by the
     Contributor in the ordinary, course of its business, except for certain
     Contracts which have been acquired by the Contributor in the ordinary
     course of its business, and each Contract shall have been underwritten by
     the Contributor in accordance with the standards set forth on Exhibit H
     hereto;

          (xx) the Contributor is not aware of any fact that would prevent or
     prohibit Obligors from being reimbursed by Medicare or Medicaid for any
     services provided;

          (xxi) the Contract Schedule accurately reflects the information
     relating to each Contract;

          (xxii) there are no proceedings or investigations pending or, to the
     knowledge of the Contributor, threatened, before any court, regulatory
     body, administrative agency or other tribunal or governmental
     instrumentality (A) asserting the invalidity of any of the Contracts, (B)
     seeking to prevent the payment and discharge of any of the Contracts or (C)
     seeking any determination or ruling that would materially and adversely
     affect the performance by an Obligor of its obligations under, or the
     validity or enforceability of the Contracts;

          (xxiii) each Contract effects either the lease of or the grant of a
     perfected first priority security interest in, a specified item of
     Equipment (other than Equipment for which the Original Equipment Cost is
     less than $25,000) in favor of the Contributor as lessor, secured party or
     seller as the case may be, and contains provisions sufficient for the
     realization of such leasehold interest, security interest or ownership
     interest as the case may be, as against such Equipment, and is assignable
     by the Contributor without the consent of any other Person;

          (xxiv) each Contract provides that the Contributor has no obligation
     to assemble, install, test, adjust or service the Equipment subject to a
     Contract. Each

                                       9
<PAGE>

     Contract provides that the Obligor, at its sole expense, at all times
     during the term of the Contract and until return of the Equipment will
     maintain the Equipment in good operating order, repair, condition,
     appearance and protect the Equipment from deterioration, and provide all
     accessories, upgrades, repairs, replacement parts and service required
     therefor except that the equipment lease pledged as collateral security for
     a Leveraged Lease Loan may in certain instances provide that the related
     lessor is responsible for maintaining such Equipment;

          (xxv) the Contributor has no knowledge that any Obligor under a
     Contract is a Person involved in the business of selling medical equipment
     of the same type as the Equipment subject to such Contract;

          (xxvi) with respect to each item of Equipment either (A) no such
     Equipment has been relocated from the jurisdiction set forth in the
     Contract or, (B) if such Equipment has been relocated from the jurisdiction
     set forth in the Contract and the Contributor has knowledge of any such
     relocation, all UCC filings necessary to continue the first priority
     security interest in such Equipment have been made (other than Equipment
     for which the Original Equipment Cost is less than $25,000);

          (xxvii) no Contract is a consumer lease as defined in Article 2A of
     the UCC;

          (xxviii) each Obligor has accepted the related Equipment and, after
     reasonable opportunity to inspect and test, has not notified the
     Contributor of any defects therein;

          (xxix) no Obligor is a government or municipality; and

          (xxx) no Contract requires the prior written consent of the Obligor or
     contains any other restriction relating to the transfer or assignment of
     such Contract by the Contributor or the seller except such consent as has
     been obtained on or prior to the date of such transfer.

          (b) The Contributor represents and warrants, as to the Contracts in
the aggregate:

          (i) the Aggregate Discounted Contract Balance of the Contracts as of
     the Closing Date is equal to $462,410,954.84; and

          (ii) the Contracts have the following characteristics: (A) each
     Initial Contract has a Discounted Contract Balance as of the Cut-Off Date
     of not more than $6,751,654.15; (B) no Discounted Contract Balance of any
     Contract will include an amount attributable to any (i) Purchase Option
     Payment for such Contract, (ii) Contract Payment due on or prior to the
     Cut-Off Date, (iii) security deposit or (iv) advance payment; (C) as of the
     Cut-Off Date, no item of Equipment has been repossessed; (D) as of the
     Cut-Off Date no Contract is a refinancing due to delinquencies under a
     prior lease, security agreement or loan with the same Obligor relating to
     the Equipment; (E) the Obligor with respect to each Contract has a place of
     business in, or is organized under, the laws of any state or territory of
     the United States of America; (F) with respect to the Initial Contracts,
     each Contract will have a Scheduled Termination Date no later than

                                       10
<PAGE>

     October 1, 2009; (G) as of the Cut-Off Date, (i) the Discounted Contract
     Balance of Contracts that have Eligible Balloon Payments constitute not
     more than 13.9% of the Aggregate Discounted Contract Balance, (ii) the
     Discounted Contract Balance of Contracts that have non-level payments to
     the Scheduled Termination Date (excluding Contracts that have Eligible
     Balloon Payments) constitutes not more than 42.95% of, with respect to the
     Initial Contracts, the Aggregate Discounted Contract Balance of the Initial
     Contracts as of the Closing Date; (H) as of the Closing Date, (i) the sum
     of the Discounted Contract Balances of all Contracts with Equipment located
     in any one State will not exceed 19.05% of, with respect to the Initial
     Contracts, the Aggregate Discounted Contract Balance of the Initial
     Contracts, (ii) no single Obligor will have a Discounted Contract Balance
     that exceeds 1.64% of the Aggregate Discounted Contract Balance on the
     Closing Date, (iii) the sum of the Discounted Contract Balances of any five
     Contracts shall not exceed 7.84% of the Aggregate Discounted Contract
     Balance on the Closing Date and (iv) the sum of the Discounted Contract
     Balances of all Contracts for which the related Equipment is magnetic
     resonance imaging equipment will not exceed $139,000,000 of the Aggregate
     Discounted Contract Balance as of the Closing Date; (I) not more than 10.0%
     of the Aggregate Discounted Contract Balance will arise from Contracts
     which constitute loans to manufacturers, wholesalers, and retailers; (J)
     the Obligor under each Contract has made at least one Contract Payment
     under such Contract prior to the first Payment Date occurring after the
     time such Contract was executed by the parties thereto in addition to any
     payment made at the time of the signing of such Contract, except for
     Contracts representing 8.39% of the Aggregate Discounted Contract Balance
     as of the Closing Date, which Contracts provide for the related initial
     Contract Payment to be due within 120 days of the Payment Date occurring on
     January 12, 2003; (K) the sum of the Discounted Contract Balance of all
     Contracts that are Lease Receivable Purchases shall not exceed, at any
     time, more than 3.0% of the Aggregate Discounted Contract Balance as of the
     Closing Date and (L) all Eligible Balloon Payments shall be included in the
     calculation of Aggregate Discounted Contract Balance.

          (xxxi) the Discounted Contract Balance for each Contract includes any
     Eligible Balloon Payment thereunder and does not include any other Balloon
     Payment.

          2.04 CONTRACT SCHEDULE. The Contract Schedule (i) accurately sets
forth the identifying number of each Contract, the Obligor's name and address,
the original Scheduled Maturity Date of each Contract, the remaining maturity of
each Contract, the Discounted Contract Balance of each Contract as of the
Cut-Off Date, the amount and scheduled due date of each Contract Payment due
under each of the Contracts, and the original amount funded on each Contract,
(ii) accurately sets forth the information with respect to certain other
characteristics of the Contracts and the Equipment described on such list, (iii)
identifies those Contracts which constitute Pool A and those Contracts which
constitute Pool B and (iv) is otherwise true and correct in all material
respects.

          2.05 PENDING LITIGATION. There are no actions, suits, proceedings,
investigations or injunctive or other orders pending, or to the knowledge of the
Contributor or Servicer threatened, against or affecting the Contributor or
Servicer or any subsidiary in or before any court, governmental authority or
agency or arbitration board or tribunal, including, but not limited to, any such
actions, suits, proceeding, investigation or order with respect to any

                                       11
<PAGE>

environmental or other liability resulting from the ownership or use of any of
the Equipment which, individually or in the aggregate, involve the possibility
of materially and adversely affecting the properties, business, or condition
(financial or otherwise) of the Contributor or Servicer and its subsidiaries, or
the ability of the Contributor or Servicer to perform its obligations under this
Agreement or the payment or enforceability of any Contract.

          2.06 NO MATERIAL EVENT. No event has occurred which materially
adversely affects the Contributor's operations, including, but not limited to,
its ability to perform the transaction contemplated hereunder.

          2.07 TRANSACTIONS LEGAL AND AUTHORIZED. This Agreement and all other
documents delivered in connection herewith and the assignment, transfer and
contribution of all right, title and interest in and to each Contract and a
security interest in each item of Equipment at any time transferred hereunder
and under the Sale Agreement and compliance by the Contributor and the Servicer
with all of the provisions of this Agreement and the Sale Agreement:

               (a) have been duly authorized by all necessary corporate action
          and do not and will not require any stockholder approval, or approval
          or consent of any trustee or holders of any indebtedness or
          obligations ;

               (b) are within the corporate powers of the respective parties
          thereto; and

               (c) are legal and will not conflict with, result in any breach in
          any of the provisions of, constitute a default under, or result in the
          creation of any lien upon any property of the respective parties
          thereto, under the provisions of, any agreement, charter instrument,
          by-law or other instrument to which such parties, is or will be a
          party or by which such parties it or its property may be bound or
          result in the violation of any law, regulation, rule, order or
          judgment applicable to the respective parties thereto, or its
          properties, or any order to which such parties, or its properties is
          subject, of or by any government or governmental agency or authority.

          2.08 GOVERNMENTAL CONSENT. Except for the filing of the UCC financing
statements and the making of applications as set forth in Section 1.01(c)
hereof, no consent, approval or authorization of, or filing, registration or
qualification with, any governmental authority is or will be necessary or
required on the part of DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
Funding Corporation, DVI Funding, LLC or the Contributor in connection with the
execution and delivery of this Agreement or the Sale Agreements or the
assignment, transfer and contribution of the Contracts and the Equipment
hereunder or under the Sale Agreements.

          2.09 COMPLIANCE WITH LAW. Each of DVI Receivables Corp. XV, DVI
Receivables XV, LLC, DVI Funding Corporation, DVI Funding, LLC., the Contributor
and the Servicer:

               (a) is not in violation of any laws, ordinances, governmental
          rules or regulations or court orders to which it is subject; and

                                       12
<PAGE>

               (b) has not failed to obtain any licenses, permits, franchises or
          other governmental authorizations necessary to the ownership of its
          property or to the conduct of its business.

          2.10 ORDINARY COURSE; NO INSOLVENCY. The transactions contemplated by
this Agreement and the Sale Agreements are being consummated by DVI Receivables
Corp. XV, DVI Receivables XV, LLC, DVI Funding Corporation, DVI Funding, LLC,
the Contributor and the Servicer, respectively, in furtherance of the their
ordinary business purposes and constitute a practical and reasonable course of
action by designed to improve their financial position with no contemplation of
insolvency and with no intent to hinder, delay or defraud any of its present or
future creditors. Neither as a result of the transactions contemplated by this
Agreement or the Sale Agreements, nor immediately before or after such
transactions, will DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
Funding Corporation, DVI Funding, LLC., the Contributor or the Servicer be
insolvent, and each of DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
Funding Corporation, DVI Funding, LLC., the Contributor and the Servicer shall
have adequate capital for the conduct of its business and the payment of
anticipated obligations.

          2.11 ASSETS AND LIABILITIES.

               (a) Both immediately before and after the assignment, transfer
          and contribution of Contracts (including the right to receive all
          payments due or to become due thereunder) and the other Contributed
          Property, the present fair salable value of the respective assets of
          DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI Funding
          Corporation, DVI Funding, LLC, and the Contributor will be in excess
          of the amount that will be required to pay the respective probable
          liabilities of DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
          Funding Corporation, DVI Funding, LLC, and the Contributor as such
          liabilities then exist and as they become absolute and matured.

               (b) Both immediately before and after the assignment and transfer
          of Contracts and the other Contributed Property, the sum of the
          respective DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
          Funding Corporation, DVI Funding, LLC., and the Contributor's assets
          will be greater than the sum of DVI Receivables Corp. XV, DVI
          Receivables XV, LLC, DVI Funding Corporation, DVI Funding, LLC., and
          the Contributor's debts, respectively, valuing the Contributor's
          assets at a fair salable value.

          2.12 FAIR CONSIDERATION; VALID SALE. The consideration received and to
be received by DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI Funding
Corporation, DVI Funding, LLC, and the Contributor in exchange for the
assignment, transfer and contribution of the Contracts and the Contributed
Property is fair consideration having value equivalent to or in excess of the
value of the assets being transferred by the Contributor. This Agreement and the
Sale Agreements effect a valid assignment, transfer and contribution of the
Contracts and the other Contributed Property, enforceable against creditors of
and purchasers from DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
Funding Corporation, DVI Funding, LLC, and the Contributor.

          2.13 ABILITY TO PAY DEBTS. Neither as a result of the transactions
contemplated by this Agreement or the Sale Agreements nor otherwise does the
Contributor believe that DVI

                                       13
<PAGE>

Receivables Corp. XV, DVI Receivables XV, LLC, DVI Funding Corporation, DVI
Funding, LLC, or it will incur debts beyond its ability to pay or which would be
prohibited by their respective charter documents or by-laws. The respective
assets and cash flow of DVI Receivables Corp. XV, DVI Receivables XV, LLC, DVI
Funding Corporation, DVI Funding, LLC or the Contributor enable it to meet its
respective present obligations in the ordinary course of business as they become
due.

          2.14 BULK TRANSFER PROVISIONS. No transfer, assignment or conveyance
of Contracts or the other Contributed Property by the Contributor to the
Transferor contemplated by this Agreement will be subject to the bulk transfer
or any similar statutory provisions in effect in any applicable jurisdiction.

          2.15 TAX RETURNS.

          (a) The provisions for taxes on the books of the Contributor and each
subsidiary are in accordance with generally accepted accounting principles.

          (b) The Contributor and the Transferor are members of an affiliated
group, within the meaning of Section 1504 of the Code, that files a consolidated
return for federal income tax purposes, and all of the entities with which the
Contributor is consolidated for federal income tax purposes (including the
Transferor) have timely filed all tax returns required to be filed in any
jurisdiction and have paid all taxes, assessments, fees and other governmental
charges upon them or their properties, income or franchises, shown to be due and
payable on such returns, except to the extent any such entity is contesting the
same in good faith by appropriate proceedings and has set aside adequate
reserves in accordance with generally accepted accounting principles for the
payment thereof. The Contributor does not know of any proposed additional tax
assessment against any such entity in any material amount or of any basis
therefor.

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

                                       14
<PAGE>

          2.17 PRINCIPAL EXECUTIVE OFFICE. The principal place of business and
chief executive office of each of the Contributor and the Servicer is located at
2500 York Road, Jamison, Pennsylvania 18929, and has been located in the same
county and state for at least four months prior to the date of execution and
delivery of this Agreement.

          2.18 LEGAL NAME. The legal name of the Contributor is as set forth in
this Agreement and the Contributor has not changed its name in the last six
years and does not have any trade names, fictitious names, assumed names or
"doing business as" names except Medical Equipment Finance Company, DVI Capital,
DVI Vendor, DVI Strategic Partner Group, DVI Health Services Corp., DVI Finance
Inc., DVI Affiliated Capital, Third Coast Capital and Medical Devices Capital
Company.

          2.19 SERVICING PROVISIONS CUSTOMARY. The servicing arrangements
hereunder, including, without limitation, the terms and conditions pursuant to
which the Contributor will act as Servicer and the Servicer's Fee and other
amounts to be paid to the Contributor, are consistent with the arrangements and
customary practices of the Contributor when providing comparable services to
nonaffiliated entities and of other services in the equipment leasing industry.

          2.20 DEFAULTS. As of the Closing Date, neither the Contributor nor the
Servicer is in default with respect to any debt or obligation.

          2.21 ERISA. The Contributor neither maintains, contributes to, nor has
any obligations to contribute to any "employee pension benefit plans," as such
term is defined in Section 3(2) of ERISA (other than the 401(k) Plan of DVI,
Inc.). The execution and delivery of this Agreement and the other applicable
Transaction Documents and the consummation of the transactions contemplated
thereby will neither result in, constitute or otherwise give rise to a
"prohibited transaction" as described in Section 406 of ERISA or Section 4975 of
the Code, with respect to a Contributor Plan. For the purpose of this Section
2.21, the term "CONTRIBUTOR PLAN" shall mean an "employee benefit plan" (as
defined in Section 3 of ERISA) which is or has been established or maintained,
or to which contributions are, have been or are required to be made, by the
Contributor or by any trade or business, whether or not incorporated, which,
together with the Contributor, is under common control, as described in Section
414(b) or (c) of the Code or Section 4001 of ERISA.

          2.22 ALL FILINGS MADE. At the Closing Date, no further filings
(including, without limitation, UCC filings) or other actions are necessary in
any jurisdiction to give the Transferor either a security or an ownership
interest in the Contracts, the other Contributed Property and the assets
transferred to it under the Sale Agreement, except that with respect to the
Equipment, the Contributor shall, within 30 days of the Closing Date, file the
UCC financing statements and made the necessary applications with respect to the
Equipment that are described in Section 1.01(c) hereof.

          2.23 NONCONSOLIDATION. The Contributor is operated in such a manner
that it would not be substantively consolidated with the Transferor or the
Issuer, such that the separate existence of the Contributor and DVI Receivables
Corp. XV, DVI Receivables XV, LLC, DVI Funding Corporation, DVI Funding, LLC,
the Transferor or the Issuer would not be disregarded in the event of a
bankruptcy or insolvency of the Contributor or DVI Receivables Corp. XV, DVI

                                       15
<PAGE>

Receivables XV, LLC, DVI Funding Corporation, DVI Funding, LLC, the Transferor
or the Issuer, and in such regard, among other things:

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

               (b) the Contributor maintains separate corporate records and
          books of account from DVI Receivables Corp. XV, DVI Receivables XV,
          LLC, DVI Funding Corporation, DVI Funding, LLC, the Transferor and the
          Issuer and otherwise observes corporate formalities and has a separate
          business office from DVI Receivables Corp. XV, DVI Receivables XV,
          LLC, DVI Funding Corporation, DVI Funding, LLC, the Transferor and the
          Issuer;

               (c) the financial statements and books and records of the
          Contributor prepared after the respective dates of creation of the
          Transferor and the Issuer reflect and will reflect the separate
          existence of the DVI Receivables Corp. XV, DVI Receivables XV, LLC,
          DVI Funding Corporation, DVI Funding, LLC, Transferor and the Issuer;

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

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

               (f) none of DVI Receivables Corp. XV, DVI Receivables XV, LLC,
          DVI Funding Corporation, DVI Funding, LLC, the Transferor and the
          Issuer act as an agent of the Contributor in any capacity and the
          Contributor does not act as agent for DVI Receivables Corp. XV, DVI
          Receivables XV, LLC, DVI Funding Corporation, DVI Funding, LLC, the
          Transferor or the Issuer, but instead presents itself to the public as
          a corporation separate from the Transferor and the Issuer; PROVIDED
          that the Contributor is the Servicer hereunder and under certain other
          agreements between the Contribution and such entities; and

               (g) the Transferor is not engaged in any other activities other
          than the transactions contemplated by the Transaction Documents.

                                       16
<PAGE>

          2.24 ALL REPRESENTATIONS AND WARRANTIES TRUE. All representations and
warranties made by the Contributor in any certificate or other document
delivered at the closing of the transactions contemplated by the applicable
Transaction Document, including all representations and warranties made to
Thacher Proffitt & Wood in support of their opinions, are true and correct in
all material respects.

          2.25 PROSPECTUS SUPPLEMENT. The Prospectus Supplement does not contain
any untrue statement of material fact or omit to state a material fact necessary
to make the statements contained therein not misleading in light of the
circumstances under which they were made; PROVIDED, HOWEVER, the Contributor
makes no representation or warranty as to the information contained in or
omitted from the Prospectus Supplement in reliance upon and in conformity with
information furnished to the Contributor in writing by Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Nomura Securities International, Inc., Banc of
America Securities LLC, Bank of America, N.A. or Banc One Capital Markets, Inc.
or any of their respective Affiliates (I.E. the paragraphs under the headings
"THE UNDERWRITING" or "PLAN OF DISTRIBUTION") or by the Trustee (under the
heading "THE TRUSTEE").

          2.26 INSURANCE. In addition to the insurance maintained by the
Obligors with respect to the Equipment, the Contributor maintains, among other
policies, a general liability insurance policy in the aggregate amount of
$1,000,000 and an excess liability insurance policy in umbrella form in the
aggregate amount of $3,000,000 for a total of $4,000,000 of liability insurance.
Each of such policies is in full force and effect and covers all Equipment owned
by the Contributor and the Transferor. All premiums in respect of such policies
have been paid. Each of the Trustee on behalf of the Swap Provider and the
Noteholders, and the Transferor is named as additional insureds on such
liability policies.

          2.27 NO BANKRUPTCY PETITION AGAINST THE TRANSFEROR, THE MANAGING
MEMBER OR THE ISSUER. The Contributor covenants and agrees it will not, prior to
the date that is one year and one day after the payment in full of all amounts
owing pursuant to the Transaction Documents, institute against, or join any
other Person in instituting against, any of the Transferor, the Managing Member
or the Issuer, any bankruptcy, reorganization, receivership, arrangement,
insolvency or liquidation proceedings or other similar proceedings under any
federal or state bankruptcy or similar law. This Section 2.27 shall survive the
termination of this Agreement.

          2.28 DELIVERY OF OBLIGOR CONTACT INFORMATION. With respect to each
Initial Contract and each Contract contributed by the Contributor to Transferor
on each Contribution Date, the Contributor shall, on or before such Contribution
Date, provide the Trustee, in writing and in a form reasonably acceptable to the
Trustee, contact information of the related Obligor, including the name, phone
number, facsimile number and address of each key contact individual.

     SECTION 3. REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF THE
                TRANSFEROR

          The Transferor hereby represents to the Contributor as of the Closing
Date and warrants, covenants and agrees as follows:

                                       17
<PAGE>

          3.01 TRANSFEROR ORGANIZATION AND AUTHORITY; SUBSIDIARIES. The
Transferor is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of formation, and has full power and
authority to own and convey the Contracts and execute and deliver the
Transaction Documents to which the Transferor is a party (collectively, the
"TRANSFEROR DOCUMENTS") and all related documents, and to perform the terms and
provisions hereof. The Transferor has no subsidiaries, but is the sole
beneficial owner of the Issuer.

          3.02 DUE AUTHORIZATION AND NO VIOLATION. Each of the Transferor
Documents and all related documents have been duly authorized, executed and
delivered by the Transferor, and is the legal, valid and binding obligation of
the Transferor enforceable in accordance with its terms, except as the same may
be limited by insolvency, bankruptcy, reorganization or other laws relating to
or affecting the enforcement of creditors' rights or by general equitable
principles. The consummation of the transactions contemplated by the Transferor
Documents and all related documents and the fulfillment of the terms hereof,
will not conflict with or result in a breach of any of the terms or provisions
of, or constitute a default under, or result in the creation or imposition of
any lien, charge or encumbrance upon any of the property or assets of the
Transferor pursuant to the terms of any indenture, mortgage, deed of trust, loan
agreement, guarantee or similar agreement or instrument under which the
Transferor is a debtor or guarantor (other than the liens created pursuant to
the Transaction Documents), nor will such action result in any violation of the
provisions of the certificate of incorporation or the by-laws of the Transferor.
All applicable laws, rules, regulations, and orders with respect to the
Transferor, its business and properties, have been complied with. No consents
and no filings or governmental approvals that have not been made or obtained are
required for due execution, delivery and performance of the agreements by the
Transferor.

          3.03 NO LITIGATION. No legal or governmental proceedings are pending
to which the Transferor is a party or of which any property of the Transferor is
the subject, and, to the knowledge of the Transferor, no such proceedings are
threatened or contemplated by governmental authorities or threatened by others
and no injunctions, writs, restraining orders or other orders of any nature are
in effect or, to the knowledge of the Transferor, threatened, other than such
proceedings which will not have a material adverse effect upon the general
affairs, financial position, net worth or results of operations of the
Transferor and will not materially and adversely affect the performance by the
Transferor of its obligations under, or the validity and enforceability of, the
Transferor Documents and all related documents.

          3.04 PRINCIPAL OFFICE. The Transferor's principal place of business
and chief executive office is located at 2500 York Road, Jamison, Pennsylvania
18929. The legal name of the Transferor is as set forth herein and the
Transferor has no tradenames, fictitious names, assumed names or "doing
business" names.

          3.05 TAX RETURNS. The Transferor has filed on a timely basis all tax
returns required to be filed in any jurisdiction and has paid all taxes,
assessments, fees and other governmental charges upon it or its properties,
income or franchises, shown to be due and payable on such returns, except to the
extent the Transferor is contesting the same in good faith by appropriate
proceedings and has set aside adequate reserves in accordance with generally
accepted accounting principles for the payment thereof. The Transferor does not
know of any proposed additional tax assessment against it in any material amount
or of any basis therefor.

                                       18
<PAGE>

          3.06 SOLVENCY. The Transferor is solvent and will not become insolvent
after giving effect to the contemplated transactions. The Transferor is paying
its debts as they become due and will have adequate capital to conduct its
business after giving effect to the contemplated transactions.

          3.07 APPROVALS. All approvals, authorizations, consents, orders or
other actions of any person, corporation or other organization, or of any court,
governmental agency or body or official, required in connection with the
execution and delivery of the Transferor Documents have been or will be taken or
obtained on or prior to the Closing Date.

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

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

               (b) the Transferor maintains separate Transferor records and
          books of account from the Contributor and otherwise observes
          Transferor formalities and has a separate business office from the
          Contributor;

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

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

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

               (f) the Contributor does not act as an agent of the Transferor in
          any capacity and the Transferor does not act as agent for the
          Contributor, but instead presents itself to the public as a
          corporation separate from the Contributor; PROVIDED that the
          Contributor is the Servicer hereunder; and

               (g) the Transferor will at all times maintain two Independent
          Directors (as such term is defined in the certificate of incorporation
          of the Transferor).

     SECTION 4. ADMINISTRATION OF CONTRACTS

          4.01 SERVICER TO ACT.

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<PAGE>

          (a) Notwithstanding the transfers and assignments of the Contracts and
the other Contributed Property contemplated hereby, the Servicer, for the
benefit of the Transferor, and, upon assignment of the Transferor's rights
hereunder to the Issuer (and the Issuer's assignment thereof to the Trustee for
the benefit of the Trustee and the Noteholders and the Swap Provider), will
service and administer each Contract in accordance with the terms thereof and of
this Agreement. The Servicer shall provide the Obligors with appropriate
invoices and such other notices as may be required to ensure that all Contract
Payments, Prepayment Amounts and Partial Prepayment Amounts on or in respect of
each Contract are remitted by the Obligors directly to a Lock-Box Account.

          (b) The Servicer shall do, and shall have full power and authority to
do, subject only to the specific requirements and prohibitions of this
Agreement, any and all things in connection with the servicing and
administration of the Contracts and the Equipment which are in the same manner
in which it services contracts and equipment held for its own account
(including, without limitation, servicing and administration of Contracts with
respect to which the related Equipment may be substituted or upgraded) and
consistent with prudent and customary, practices of servicers in the industry,
but in performing its duties hereunder, the Servicer will act on behalf and for
the benefit of the Transferor, the Issuer, the Trustee, the Swap Provider and
the Noteholders, subject at all times to the provisions of the Transaction
Documents, without regard to any relationship which the Servicer or any
Affiliate of the Servicer may otherwise have with an Obligor. Notwithstanding
the prior sentence, the Servicer shall, within ten (10) Business Days after the
Closing Date, notify each Obligor to make all payments with respect to its
respective Contracts which are due after the Cut-Off Date directly to a Lock-Box
Account. The Servicer shall give the Trustee and the Rating Agencies prior
written notice of any change in the location of a Lock-Box Account and the
Servicer shall give at least ten (10) days' prior written notice of the new
location to each Obligor. The Servicer shall at all times act in accordance with
the provisions of each Contract, and shall observe and comply with all
requirements of law applicable to it. Except as permitted by the terms of any
Contract following a default thereunder, the Servicer shall not take any action
which would result in the interference with the Obligor's right to quiet
enjoyment of the Equipment subject to the Contract during the term thereof.

          (c) Without limiting the generality of the foregoing, the Servicer
will be responsible, among other duties, to (i) invoice each Obligor for all
Contract Payments required to be paid by such Obligor in such manner and to the
same extent as the Servicer does with respect to similar contracts held for its
own account, (ii) maintain with respect to each Contract and each item of
Equipment, and with respect to each payment by each Obligor and compliance by
each Obligor with the provisions of each Contract, complete and accurate records
in such manner and to the same extent as the Servicer does with respect to
similar contracts held for its own account, and (iii) execute, deliver and file
(or cause the same to be done), and the Servicer is hereby authorized and
empowered to execute, deliver, and file on behalf of the Transferor, the Issuer
and the Trustee, any and all tax returns with respect to sales, use, personal
property and other taxes (other than corporate income and franchise tax returns)
and any and all reports or licensing applications required to be filed in any
jurisdiction with respect to any Contract or any item of Equipment and any and
all filings required by Section 4.01(d) below.

                                       20
<PAGE>

          (d) The Servicer will file the UCC financing statements as set forth
in Sections 1.01(c) and 7.01(c) hereof within the time frames set forth therein
and thereafter will file such additional UCC financing statements and
continuation statements and assignments in accordance with the provisions of any
Contract and item of Equipment or otherwise so that the security interest in
favor of the Trustee in each of the Contracts and the related Equipment will be
perfected by such filings with the appropriate UCC filing offices. The
Transferor agrees to execute such UCC financing statements and continuation
statements as shall be necessary and shall furnish the Servicer with any powers
of attorney or other documents necessary and appropriate to carry out its
servicing and administration duties hereunder.

          (e) The Servicer will maintain, or cause to be maintained, with
respect to the Contracts and the Equipment, liability insurance in amounts at
least as great as those described in Section 2.26.

          (f) The Servicer will notify the Trustee, in writing and in a form
reasonably acceptable to the Trustee, of any change in the contact information
of any Obligor, including the name, phone number, facsimile number and address
of each key contact individual, within 30 days following the discovery or
receipt of notice of such change.

          4.02 CONTRACT AMENDMENTS AND MODIFICATIONS; REPURCHASE OF CONTRACTS BY
SERVICER. (a) In performing its obligations hereunder, the Servicer may, acting
in the name of the Transferor and without the necessity of obtaining the prior
consent of the Transferor or the Trustee, enter into and grant modifications,
waivers and amendments to the terms of any Contract except for modifications,
waivers or amendments that (i) are inconsistent with the servicing standards set
forth in Section 4.01 above, (ii) would extend the date of the final Contract
Payment on any Contract by more than 24 months, (iii) would reduce or adversely
affect, individually or in the aggregate, the Obligor's obligation to maintain,
service, insure and care for the Equipment or would permit the alteration of any
item of Equipment in any way which could adversely affect its present or future
value, (iv) extend the Stated Maturity Date of the Notes, (v) have a material
adverse effect on the weighted average life of any Class of Notes, (vi) be
implemented on more than twenty percent of the Initial Aggregate Discounted
Contract Balance of the Contracts, (vii) be effected on any Contract that is
either 90 days or more delinquent or Defaulted Contract, (viii) PROVIDED that
the Issuer fails to deposit an amount into the Collection Account equal to such
decrease, decrease the Discounted Contract Balance of any Contract or (ix)
otherwise could adversely affect, individually or in the aggregate, the
interests of any of the Transferor, the Issuer, the Trustee, the Swap Provider
or the Noteholders. Notwithstanding the provisions of clause (ii) of the
preceding sentence, the Servicer may (1) permit any of the actions set forth in
clause (ii) of the preceding sentence, which in the Servicer's sole discretion,
in accordance with the same manner in which it services contracts and equipment
held for its own account, would maximize Recoveries on any Defaulted Contract,
or (2) permit termination of a Contract which does not otherwise provide for
termination by requiring, in the case of either clause (1) or (2), that the
Obligor pay, or, if the terms of such extension or termination do not provide
for such payment by the Obligor that the Servicer deposit, in lieu of all future
Contract Payments with respect to such Contract, an amount which equals or
exceeds the applicable Prepayment Amount for such Contract as of 11:00 A.M. New
York time on the second Business Day prior to the Payment Date next succeeding
the making of such payment is deposited into the Collection Account; PROVIDED,
HOWEVER, that the Servicer will not be permitted

                                       21
<PAGE>

to allow prepayment by an Obligor if there are any amounts due under the related
Contract after such prepayment.

                  In the event of any modification, waiver or amendment of any
Contract in accordance with this Section 4.02, the Servicer will promptly
furnish the Transferor, the Issuer and the Trustee with a copy thereof, together
with a certificate of the Servicer signed by one of its executive or financial
officers stating that such modification, waiver or amendment is not prohibited
by the provisions of this Section 4.02.

                  (b) If an Obligor requests either an upgrade or a trade-in of
an item of Equipment, the Servicer may either (x) remove such Contract and the
related Equipment from the Trust Property PROVIDED that the Servicer either (i)
subject to the limitations set forth in Section 7.01(c), transfers a Substitute
Contract and the related Equipment to the Transferor in accordance with Section
7 of this Agreement or (ii) deposits an amount equal to the Prepayment Amount
for such Contract into the Collection Account or (y) permit such Contract and
remaining related Equipment to remain in the Trust Property, PROVIDED that the
Servicer deposits an amount equal to the Partial Prepayment Amount for such
Contract into the Collection Account.

                  4.03 CONTRACT DEFAULTS; RESIDUAL REALIZATIONS.

                  (a) Upon receipt of notice from the Transferor, the Issuer,
the Trustee or any other Person, or if the Servicer otherwise learns that the
Obligor under any Contract is in default thereunder, the Servicer will take such
action as is appropriate, consistent with the Servicer's administration of
contracts held for its own account and consistent with the customary practices
of servicers in the industry, including such action as may be necessary to
cause, or attempt to cause, the Obligor thereunder to cure such default (if the
same may be cured) or to terminate or attempt to terminate such Contract and to
recover, or attempt to recover, all damages resulting from such default.

                  (b) The Servicer will use its best efforts (i) to sell or
re-lease any Equipment and realize on any other collateral related to a
Defaulted Contract in a timely manner and upon reasonable terms and conditions
so as to maximize, to the extent possible under then prevailing market
conditions, as expeditiously as is consistent with sound commercial practice and
the Servicer standard referenced in Section 4.01, the net proceeds from such
Equipment and other collateral, if any and (ii) to sell or re-lease any
Equipment remaining subject to the lien of the Indenture upon the expiration of
the Contract to which such Equipment is subject, in a timely manner and in a
manner consistent with that utilized by the Servicer with respect to equipment
owned by it so as to maximize, to the extent possible under then prevailing
market conditions, the net proceeds from such Equipment.

                  (c) In the event that the Servicer is required to sell any
item of Equipment pursuant to the provisions of this Section 4.03 at a time when
the Servicer is trying to lease or sell other similar items of equipment, the
Servicer will not favor any such other item in its remarketing efforts.

                  4.04 COSTS OF SERVICING; SERVICER'S FEE.

                                       22
<PAGE>

                  (a) All costs of servicing each Contract in the manner
required by this Section 4 shall be borne by the Servicer, but the Servicer
shall be entitled to retain, out of any amounts actually recovered by the
Servicer in the performance of its obligations under Section 4.03 hereof with
respect to any Contract or the Equipment subject thereto, the Servicer's actual
out-of-pocket expenses reasonably incurred in the course of such performance
with respect to such Contract or Equipment (for all purposes of this Section 4,
the Servicer's "out-of-pocket expenses" means only those expenses incurred to
non-Affiliated third parties (E.G., outside counsel in a collection suit) and
shall not include salaries, operating costs, overtime wages and other such
"overhead" costs or expenses of the Servicer or its Affiliates, and shall not
include expenses of or payments to an agent or subservicer allowed under Section
11.02, except that out-of-pocket expenses for the fees and expenses of an agent
used to remarket Equipment subject to Contracts shall be included as
"out-of-pocket expenses"). In addition, the Servicer shall be entitled to
receive from the Transferor on each Payment Date any unreimbursed Nonrecoverable
Advances or Servicer Advances with respect to any Contract (in accordance with
Section 5) and a servicing fee (the "SERVICING FEE") in the amount described in
paragraph (b) below.

                  (b) As compensation to the Servicer for its servicing of the
Contracts, the Servicer will be entitled to receive on each Payment Date from
amounts on deposit in the Collection Account the Servicing Fee in an amount
equal to the product of (i) one-twelfth, (ii) the Servicing Fee Rate and (iii)
the Aggregate Discounted Contract Balance as of the beginning of the related
Collection Period. In addition, the Servicer will be entitled to receive as
additional compensation late payment fees, the penalty portion of interest paid
on past due amounts, origination fees, documentation fees, other administrative
fees or similar charges allowed by applicable law with respect to the Contracts,
and certain other similar fees paid by the Obligors ("SERVICING CHARGES") and
earnings from any Eligible Investments of amounts on deposit in the Collection
Account.

                  (c) The Servicer hereby agrees:

                  (i) to pay to the Trustee from time to time such compensation
         for all services rendered by it under the Indenture as the Servicer and
         the Trustee have agreed in writing prior to the Closing Date, such
         payment to be made independent of the other payment obligations of the
         Servicer hereunder;

                  (ii) except as otherwise expressly provided herein, to
         reimburse the Trustee upon its request for all reasonable expenses,
         disbursements, and advances incurred or made by the Trustee in
         accordance with any provision of the Indenture (including the
         reasonable compensation and the expenses and disbursements of its
         agents and counsel), except any such expense, disbursement, or advance
         as may be attributable to its negligence or bad faith;

                  (iii) to pay the Trustee its annual administrative fee on the
         Closing Date;

                  (iv) to pay the reasonable fees and expenses of Trustee's
         counsel, Dorsey and Whitney, on the Closing Date; and

                                       23
<PAGE>

                  (v) to pay the reasonable annual administrative fee of each
         Lock-Box Bank.

                  To the extent the Trustee has not been paid pursuant to the
Indenture, then all of the expenses set forth in this clause (c) shall be borne
by the Servicer, and the Servicer shall not be entitled to reimbursement of such
amounts from the Trust Property.

                  4.05 OTHER TRANSACTIONS. Nothing in this Agreement shall
preclude the Contributor or the Servicer from entering into other contracts or
other financial transactions with any Obligor or selling or discounting any such
contract with any Person.

                  4.06 COLLECTION OF MONEYS.

                  (a) Subject to Section 4.06(b), the Servicer shall remit or
cause each Lock-Box Bank to remit all payments received by it on or in respect
of any Contract or Equipment (including any Residual Payment other than a
Purchase Option Payment related to a Contract that has been released by the
Trustee from the lien of the Indenture by the Related Payment Date) during such
Collection Period into the Collection Account (including any such amounts then
held by the Servicer) as soon as practicable, but in any event within two
Business Days after receipt thereof; PROVIDED, HOWEVER, that upon satisfaction
of conditions provided by the Rating Agencies from time to time, the Servicer
shall be permitted to deposit such amounts received during a particular
Collection Period into the Collection Account within two Business Days prior to
the related Payment Date.

                  (b) Any such amounts remitted to the Collection Account may
not include Excluded Amounts.

                  (c) Notwithstanding the provisions of paragraph (a) hereof,
the Servicer may retain, or will be entitled to be reimbursed, from amounts
otherwise payable into, or on deposit in, the Collection Account with respect to
a Collection Period, amounts previously deposited in the Collection Account but
later determined to have resulted from a Purchase Option Payment related to a
Contract that will be released by the Trustee from the lien of the Indenture by
the related Payment Date or mistaken deposits or payments due before or on the
Cut-Off Date or postings of checks returned for insufficient funds (PROVIDED
that the Servicer accounts for such amounts in the Monthly Servicer's Report for
the related Collection Period). The amount to be retained or reimbursed
hereunder shall not be included in funds available for distribution with respect
to the related Payment Date.

                  (d) Pending their deposit into the Collection Account, all
collections (other than Excluded Amounts) shall be segregated by book-entry or
similar form of identification on the Servicer's books and records and
identified as the property of the Transferor (or its assignee).

                  4.07 VOLUNTARY TERMINATION. At the option of the Servicer, the
obligations and responsibilities of the Servicer with respect to all of the
Contracts shall terminate on any Payment Date on which the Aggregate Discounted
Contract Balance is less than 10% of the Initial Aggregate Discounted Contract
Balance so long as the Servicer deposits or causes to be deposited into the
Collection Account the Repurchase Amount for each Contract.

                                       24
<PAGE>

         SECTION 5. SERVICER ADVANCES; REPURCHASE OF CONTRACTS

                  5.01 SERVICER ADVANCES. Following each Determination Date, the
Servicer shall advance and remit to the Trustee, in such manner as will ensure
that the Trustee will have immediately available funds on account thereof by
11:00 A.M. New York time on the second Business Day prior to the next succeeding
Payment Date, a Servicer Advance equal to an amount sufficient to cover all
amounts due and unpaid on any Delinquent Contract as of the related
Determination Date net of any reimbursed Servicer Advances; PROVIDED, HOWEVER,
that the Servicer will not be obligated to make a Servicer Advance with respect
to (a) any Defaulted Contract, (b) any Contract that was finally liquidated on
or prior to such Determination Date or (c) any Contract if the Servicer, in its
good faith judgment, believes that such Servicer Advance would be a
Nonrecoverable Advance. If the Servicer determines that any Servicer Advance it
has made, or is contemplating making, would be a Nonrecoverable Advance, the
Servicer shall deliver to the Trustee an Officer's Certificate stating the basis
for such determination. The Servicer shall be reimbursed for Servicer Advances
on each Payment Date from amounts on deposit in the Collection Account as
follows: (i) for any Servicer Advance made with respect to a Delinquent
Contract, from subsequent collections of such delinquent Contract Payments,
Prepayment Amounts or Repurchase Amounts and (ii) for any Nonrecoverable
Advance, from all collections received on all of the Contracts.

                  5.02 INDEMNIFICATION. Each of the Contributor and the Servicer
agrees to indemnify and hold harmless the Transferor, the Issuer, the Managing
Member, the Servicer, the Trustee (which shall include each of their respective
members, directors, officers, employees and agents), the Contributor and each
Noteholder, as the case may be, (each an "INDEMNIFIED PARTY") against any and
all liabilities, losses, damages, penalties, costs and expenses (including costs
of defense and legal fees and expenses) which may be incurred or suffered by
such Indemnified Party (except to the extent caused by gross negligence or
willful misconduct on the part of the Indemnified Party) as a result of claims,
actions, suits or judgments asserted or imposed against an Indemnified Party and
arising out of the transactions contemplated hereby or by the Indenture or
arising out of, or based upon, action or inaction by the Contributor or the
Servicer, as the case may be, that is contrary to the terms of this Agreement or
the other Transaction Documents to which it is a party or a breach by the
Contributor or the Servicer, as the case may be, of any of its covenants set
forth in any of the Transaction Documents to which it is a party or any
information certified in any schedule delivered by the Contributor or the
Servicer, as the case may be, being untrue in any material respect as of the
date of such Certification, including without limitation, any claims resulting
from any use, operation, maintenance, repair, storage or transportation of any
item of Equipment, whether or not in the Servicer's possession or under its
control pursuant to this Agreement, and any tort claims and any fines or
penalties arising from any violation of the laws or regulations of the United
States or any state or local government or governmental authority, PROVIDED that
the foregoing indemnity shall in no way be deemed to impose on the Contributor
any obligation, other than to the extent specifically set forth in this Section
5, to make any payment with respect to principal or interest on the Notes or to
reimburse the Transferor for any payments on account of the Notes. In every
circumstance where the Indemnified party seeking indemnity hereunder for legal
fees, counsel fees and related costs and expenses is a Noteholder it is
understood, and the Noteholders by their acceptance of their respective Notes
agree, that such reimbursement, indemnification and holding harmless is

                                       25
<PAGE>

limited to the reasonable fees, related costs and expenses of the Noteholders
Counsel only. The obligations of the Contributor under this Section 5.02 shall
survive the termination of the Agreement the resignation or removal of the
Trustee and the termination of the Servicer pursuant to the terms hereof.

                  5.03 REPURCHASE AND SUBSTITUTION OF CONTRACTS; OTHER PAYMENTS.
(a) The Contributor or the Servicer, as the case may be, shall inform the
Transferor, the Issuer, the Managing Member and the Trustee promptly, in
writing, upon the discovery of a breach of any of the Contributor's
representations and warranties set forth herein. With respect to any breach of
the Contributor's representations and warranties set forth herein which
materially and adversely affects the interest of the Noteholders in any Contract
or Contracts, the Contributor, unless within 90 days following the discovery or
receipt of notice of such breach such breach has been cured or waived in all
respects by the Noteholders evidencing more than 50% of the Voting Rights, shall
either (a) purchase such Contract and the security interest in the related
Equipment from either the Transferor or the Issuer, as the case may be, or (b)
replace such Contract and the security interest in the related Equipment with a
Substitute Contract in accordance with the provisions of Sections 7.01, 7.02 and
7.03 of this Agreement. In the event of a repurchase of a Contract, the
Contributor shall remit to the Trustee (upon written notice to the Trustee
thereof) for deposit into the Collection Account the Repurchase Amount of each
such Contract to be repurchased on or prior to 11:00 A.M. New York City time on
the second Business Day prior to the Payment Date immediately following the date
when the Contributor shall become obligated to purchase (or, if such Contract is
then a Defaulted Contract, an amount equal to the Repurchase Amount as of the
date such Contract first became a Defaulted Contract, together with interest
thereon at the Discount Rate from the date such Contract first became a
Defaulted Contract to the end of the month preceding the date of payment). In
connection with such repurchase, the Servicer shall be reimbursed in accordance
with Section 3.04(b) of the Indenture for all amounts, if any, theretofore
advanced by the Servicer pursuant to Section 5.01 with respect to such Contract.
The Trustee shall deposit such Repurchase Amounts in the Collection Account on
or prior to 11:00 A.M. New York City time on the second Business Day immediately
following the date on which the Trustee receives such Repurchase Amounts.
Without limiting the generality of the foregoing, it is agreed and understood
that for purposes of this Section 5.03, any inaccuracy in any representation or
warranty with respect to (i) the priority of the lien of the Indenture with
respect to any Contract or (ii) the amount (if less than represented) of the
Contract Payments or Repurchase Amount under any Contract shall be deemed to be
material.

                  (b) With respect to all Predecessor Contracts and the security
interest in the related Equipment purchased or replaced by the Contributor
pursuant to this Section 5 hereof, the Transferor will deliver to the
Contributor, an instrument substantially in the form of Exhibit E hereto,
assigning to the Contributor, without recourse, representation or warranty
(except as to the absence of liens, claims, or encumbrances resulting from
actions taken, or failed to be taken, by the Transferor), all of the
Transferor's right, title and interest in and to such Predecessor Contracts and
the security interest in the related Equipment, and all security and documents
relating thereto.

                  (c) The Transferor, the Issuer and the Trustee agree that the
obligation of the Contributor to repurchase or substitute any Contract pursuant
to this Section 5.03 shall constitute the sole remedy for any such breach
available against the Contributor by the Transferor, the

                                       26
<PAGE>

Issuer, any Noteholder or the Trustee; PROVIDED, that the limitation contained
in this clause (c) shall not otherwise limit the rights of any such Person under
Section 5.02.

                  (d) The Servicer shall have the right, but not the obligation,
to repurchase a Delinquent Contract in order to more effectively service such
Delinquent Contract and to enforce the obligations of the obligor under such
Delinquent Contract; PROVIDED that the Servicer will not repurchase any
Delinquent Contract until it is at least ninety (90) days or more delinquent,
and then no more than fifteen percent (15%) of the Initial Aggregate Discounted
Contract Balance of the Contracts. In the event of a repurchase of a Delinquent
Contract, the Servicer shall remit to the Trustee (upon written notice to the
Trustee thereof) for deposit into the Collection Account the Repurchase Amount
of each such Delinquent Contract to be repurchased on or prior to 11:00 A.M. New
York City time on the second Business Day prior to the Payment Date immediately
following the date when the Servicer desires to repurchase such Delinquent
Contract. In connection with such repurchase, the Servicer shall be reimbursed
in accordance with Section 3.04(b) of the Indenture for all amounts, if any,
theretofore advanced by the Servicer pursuant to Section 5.01 with respect to
such Delinquent Contract. The Trustee shall deposit such Repurchase Amounts in
the Collection Account on or prior to 11:00 A.M. New York City time on the
second Business Day immediately following the date on which the Trustee receives
such Repurchase Amounts.

         SECTION 6. INFORMATION TO BE PROVIDED

                  6.01 MONTHLY SERVICER REPORT.On or prior to each Determination
Date, the Servicer shall deliver a report in writing (together with an
electronic copy) substantially in the form of Exhibit B (the "MONTHLY SERVICER
REPORT") to the Trustee and the Rating Agencies. In accordance with Section 7.17
of the Indenture, the Servicer agrees, after notice thereof, to promptly
reconcile any discrepancies between the Monthly Servicer Report generated by the
Servicer and the Monthly Servicer Report generated by the Trustee.

                  6.02 TAX REPORTING AND TREATMENT. (a) The Servicer shall
furnish or cause to be furnished to each Noteholder, within a reasonable time
after the end of each calendar year, to each Noteholder who was a Noteholder at
any time during such year, a report setting forth the amount of principal and
interest paid on the Notes during such year and indicating such other customary
factual information as the Servicer deems necessary, or as any Noteholder
reasonably requests, to enable Noteholders to prepare their respective tax
returns. In addition, the Servicer shall provide, or cause to be provided to the
Internal Revenue Service and each Noteholder, information statements required by
the Code (and the regulations issued thereunder) or as such Noteholders may
reasonably request from time to time with respect to in the case of any class of
Notes that is issued with original issue discount within the meaning of section
1273 of the Code ("OID"), information statements with respect to OID. For
purposes of consolidated federal and state income and franchise tax reporting,
the Contributor will be treated (i) as the owner of the Contracts and the other
Contributed Property and (ii) as the borrower under the Indenture.

                  (b) The Transferor, the Issuer, the Managing Member, the
Contributor, the Servicer, any subservicer and each Noteholder by acceptance of
its Note (and any Person that is a beneficial owner of any interest in a Note,
by virtue of such Person's acquisition of a beneficial

                                       27
<PAGE>

interest therein) agrees to treat the Notes as indebtedness for purposes of
federal, state and local income or franchise taxes (and any other tax imposed on
or measured by income).

                  6.03 OTHER INFORMATION. The Servicer shall, at the Trustee's
request, furnish to the Trustee from time to time certain information and make
various calculations which are relevant to the performance of the Trustee's
duties as set forth in the Indenture. Copies of all information furnished
pursuant to this Section shall also be furnished to the Rating Agencies.

                  6.04 ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT.
The Servicer shall cause a firm of independent certified public accountants (who
may also render other services to the Servicer or to the Contributor) to deliver
to the Trustee, the Rating Agencies and each Noteholder within 90 days following
the end of each fiscal year of the Servicer, beginning with June 30, 2003, a
written statement to the effect that such firm has examined in accordance with
generally accepted practices samples of the accounts, records, and computer
systems of the Servicer for the fiscal year ended on the previous June 30
relating to the Contracts (which accounts, records, and computer systems shall
be described in one or more schedules to such statement), that such firm has
compared the information contained in the Servicer's reports delivered in the
relevant period with information contained in the accounts, records, and
computer systems for such period, and that, on the basis of such examination and
comparison, such firm is of the opinion that the Servicer has, during the
relevant period, serviced the Contracts in compliance with such servicing
procedures, manuals, and guides and in the same manner as it services comparable
leases for itself or others, and that such certificates, accounts, records, and
computer systems have been properly prepared and maintained in all material
respects, except in each case for (a) such exceptions as such firm shall believe
to be immaterial and (b) such other exceptions as shall be set forth in such
statement. Copies of all information furnished pursuant to this Section shall
also be furnished to the Rating Agencies.

                  6.05 PAYMENT ADVICES. Each payment by the Contributor or the
Transferor or the Servicer to the Trustee pursuant to any of the provisions of
the Transaction Documents shall be accompanied by written advice containing
sufficient information to identify the Contract and/or Equipment to which such
payment relates, the Section of the Transaction Documents pursuant to which such
payment is made, and the proper application pursuant to the provisions of the
applicable Transaction Document of the amounts being paid.

         SECTION 7. SUBSTITUTION OF CONTRACTS

                  7.01 SUBSTITUTION. (a) (1) With respect to Pool A, in addition
to the Servicer's other rights of substitution, the Servicer will have the right
(but not the obligation), at any time in connection with exercise by the
Transferor of its rights of substitution under the SCTA or the other Transaction
Documents, to substitute (a "POOL A NON-PERFORMING CONTRACT SUBSTITUTION") one
or more Eligible Contracts, the security interest in the related Equipment
subject thereto and any interest in any income, payments or proceeds thereof
(the foregoing collectively, a "SUBSTITUTE CONTRACT") for a Contract in Pool A,
the security interest in the related Equipment subject thereto and any interest
in any income, payments or proceeds thereof (the foregoing collectively, a
"PREDECESSOR CONTRACT") if:

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<PAGE>

                  (i) (A) any Contract Payment on the Predecessor Contract is
         delinquent for at least sixty (60) consecutive days as of the most
         recent Determination Date; or

                  (B) a bankruptcy petition has been filed by or against the
Obligor or, with respect to a Leveraged Lease Loan, the related Lessor, under
any Predecessor Contract; or

                  (C) the Predecessor Contract was initially classified as a
Defaulted Contract during the related Collection Period;

         PROVIDED, HOWEVER, that if the Predecessor Contract included an
         ownership interest of the Transferor, and a first priority perfected
         security interest of the Issuer, in Equipment related to a Fair Market
         Value Lease, then the related Substitute Contract, if related to a Fair
         Market Value Lease, shall also include a valid ownership interest in
         the Transfer and a first priority perfected security interest in favor
         of the Issuer, in the Equipment related thereto; or

                           (ii) the conditions set forth in Section 7.01(d) have
                  been satisfied and the sum of (x) the Discounted Contract
                  Balances of all Substitute Contracts substituted under this
                  Section 7.01(a)(1) and (y) amounts deposited by the Servicer
                  in the Collection Account in connection with all such
                  substitutions under this Section 7.01(a)(1) does not exceed
                  10% of the Pool A Aggregate Discounted Contract Balance as of
                  the Closing Date.

                  (1) With respect to Pool A, in addition to the Servicer's
other rights of substitution, the Servicer will have the right (but not the
obligation) at any time in connection with exercise by the Transferor of its
rights of substitution under the SCTA, to substitute (a "POOL A PREPAID CONTRACT
SUBSTITUTION") one or more Substitute Contracts for a Predecessor Contract in
Pool A if (i) the Predecessor Contract has been prepaid and (ii) the conditions
set forth in Section 7.01(d) have been satisfied and the sum of (x) the
Discounted Contract Balance of all Substitute Contracts substituted under this
Section 7.01(a)(2) and Section 4.02(b) and (y) amounts deposited by the Servicer
in the Collection Account in connection with all such substitutions under this
Section 7.01(a)(2) and Section 4.02(b) does not exceed 10% of the Pool A
Aggregate Discounted Contract Balance as of the Closing Date.

                  (b) (1) With respect to Pool B, in addition to the Servicer's
other rights of substitution, the Servicer will have the right (but not the
obligation), at any time in connection with exercise by the Transferor of its
rights of substitution under the SCTA, to substitute (a "POOL B GENERAL CONTRACT
SUBSTITUTION") one or more Substitute Contracts for a Predecessor Contract in
Pool B if the conditions set forth in Section 7.01(d) have been satisfied and
the sum of (x) the Discounted Contract Balances of all Substitute Contracts
substituted under this Section 7.01(b)(1) and (y) amounts deposited by the
Servicer in the Collection Account in connection with all such substitutions
under this Section 7.01(b)(1) does not exceed 10% of the Pool B Aggregate
Discounted Contract Balance as of the Closing Date.

                                       29
<PAGE>

                  (2) With respect to Pool B, in addition to the Servicer's
other rights of substitution, the Servicer will have the right (but not the
obligation), at any time in connection with exercise by the Transferor of its
rights of substitution under the SCTA, to substitute (a "POOL B PREPAID CONTRACT
SUBSTITUTION") one or more Substitute Contracts for a Predecessor Contract in
Pool B if (i) the Predecessor Contract has been prepaid and (ii) the conditions
set forth in Section 7.01(d) have been satisfied and the sum of (x) the
Discounted Contract Balance of all Substitute Contracts substituted under this
Section 7.01(b)(2) and Section 4.02(b) and (y) amounts deposited by the Servicer
in the Collection Account in connection with all such substitutions under this
Section 7.01(b)(2) and Section 4.02(b) does not exceed 10% of the Pool B
Aggregate Discounted Contract Balance as of the Closing Date; unless the Rating
Agencies have otherwise permitted.

                  (c) Any substitution pursuant to this Section 7.01 or Section
5.03 shall become effective upon (i) delivery to the Trustee and the Transferor
of the Substitute Contract Contribution Form, substantially in the form of
Exhibit D hereto, transferring to the Transferor (and the Issuer, as assignee of
the Transferor) all right, title and interest of the Contributor or the Servicer
in and to the Eligible Contract being substituted and a security interest in the
related Equipment subject thereto (except in the case of Fair Market Value
Leases where the Contributor or the Servicer, as the case may be, transfers a
valid ownership interest to the Transferor in the related Equipment subject
thereto and the Issuer, pursuant to the SCTA is granted a security interest in
the related Equipment subject thereto) and granting the Trustee a valid and
first priority security interest in such Substitute Contracts and the related
Equipment subject thereto, (ii) delivery to the Trustee of amendments to, or
executed originals of, the UCC financing statements referred to in Section
1.01(c) hereof reflecting the deletion of the Predecessor Contract and the
addition of the Substitute Contract, (iii) delivery to the Contributor by the
Transferor of an instrument, substantially in the form of Exhibit E hereto,
transferring to the Contributor or the Servicer, without representation or
warranty, all of the Transferor's right, title and interest in and to the
Predecessor Contract, (iv) delivery to the Trustee of the sole original,
manually executed counterpart of each Contract that constitutes "chattel paper"
or an "instrument" under the UCC and (v) delivery to the Trustee of an amendment
to the Contract Schedule, reflecting the deletion of the Predecessor Contract
and the addition of the Substitute Contract. Upon delivery of each Substitute
Contract and the Substitute Contract Transfer Form therefor, the definition of
"Contributed Property" will be automatically amended to include such Substitute
Contract and all related property and rights contained in the definition of
Contributed Property.

                  (d) With respect to a substitution of Contracts in accordance
with the provisions of this Section 7 and Section 5.03 hereof, each proposed
Substitute Contract must (i) be an Eligible Contract; (ii) satisfy all of the
representations and warranties set forth in Section 2.03(a) of this Agreement;
(iii) have a Discounted Contract Balance such that the sum of its Discounted
Contract Balance, including any additional cash delivered by the Servicer into
the Collection Account in connection therewith, is not less than the Discounted
Contract Balance of the Contract(s) being replaced; (iv) not cause the remaining
weighted average life of the Contracts (as calculated based upon the Contract
Payments which constitute the Discounted Contract Balance of the Contracts) to
be materially altered; (v) in accordance with the Servicer's standard credit
evaluation policies, be of equal or better credit quality than the Contract
being replaced; and (vi) with respect to a substitution of a Contract that was
originated by DVI Financial Services, Inc., be a Contract that was originated by
DVI

                                       30
<PAGE>

Financial Services, Inc. For purposes of determining compliance with clause
(iii) of the preceding sentence, if more than one Substitute Contract is being
provided on any date, the Discounted Contract Balance of the Substitute
Contracts and the Contracts being replaced shall be determined on an aggregate
basis.

                  7.02 NOTICE OF SUBSTITUTION. In the Monthly Servicer Report to
be delivered on each Determination Date, the Contributor shall give written
notice to the Trustee, each Noteholder, the Rating Agencies and the Servicer of
each substitution of Contracts pursuant to Section 7.01(a) hereof and of any
substitution or repurchase pursuant to Section 5.03 hereof during the preceding
Collection Period. Such Monthly Servicer Report or other written notice shall
(i) specify the amount of each periodic Contract Payment under the Predecessor
Contract and the amount of each periodic Contract Payment under each Eligible
Contract being substituted, (ii) specify the residual values of the Equipment
subject to the Predecessor Contract and the Equipment subject to the Eligible
Contract being substituted, (iii) specify the Discounted Contract Balance of the
Predecessor Contracts, the Discounted Contract Balance of the Substitute
Contracts, any Excess Substituted Discounted Contract Balance, and any amounts
to be deposited in the Collection Account in connection with such Substitute
Contracts and (iv) with respect to a substitution pursuant to Section 7.01(a)
hereof, be accompanied by an Officer's Certificate, substantially in the form of
Exhibit F hereto, certifying as to compliance with the provisions of Section
7.01(a) hereof.

                  7.03 CONTRIBUTOR'S AND SERVICER'S SUBSEQUENT OBLIGATIONS. Upon
any substitution of Contracts in accordance with the provisions of this Section
7 or Section 5.03, the Contributor's and the Servicer's obligations hereunder
with respect to the Predecessor Contract shall cease (except for the Servicer's
obligation as set forth in Section 4.03 hereof to take such action as is
necessary and appropriate to maximize net proceeds to be paid to the Trustee)
but the Contributor and the Servicer shall each thereafter have the same
obligations with respect to the Substitute Contract substituted as it has with
respect to all other Contracts subject to the terms hereof.

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

         SECTION 8. THE SERVICER

                  8.01 CORPORATE EXISTENCE OF THE SERVICER. The Servicer will
keep in full force and effect its existence, rights and franchise as a
corporation under the laws of its jurisdiction of incorporation and will
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is necessary to protect the validity
and enforceability of any of the Contracts or to permit performance of the
Servicer's duties under this Agreement.

                                       31
<PAGE>

                  The Servicer shall not merge or consolidate with any other
Person unless: (i) the entity, surviving such merger or consolidation is a
corporation organized under the laws of the United States or any state thereof,
(ii) the surviving entity, if not the Servicer, shall execute and deliver to the
Transferor and the Trustee, in form and substance satisfactory to each of them,
(x) an instrument expressly assuming all of the obligations of the Servicer
hereunder, and (y) an Officer's Certificate to the effect that such Person is a
corporation of the type described in the preceding clause (i), has effectively
assumed the obligations of the Servicer hereunder, that all conditions precedent
provided for in this Agreement relating to such transaction have been complied
with, that all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and
protect the interest of the Transferor, the Issuer and Trustee in the Trust
Property, and reciting the details of such filings, or stating that no such
action shall be necessary to preserve and protect such interest, (iii) the
Servicer shall deliver to the Trustee a letter from each Rating Agency to the
effect that such consolidation, merger or succession will not, in and of itself,
result in a downgrading of the ratings for the Notes and (iv) immediately after
giving effect to such transaction, no Servicer Event of Default, and no event
which, after notice or lapse of time, or both, would become a Servicer Event of
Default shall have occurred and be continuing.

                  8.02 LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS. (a)
Neither the Servicer nor any of the directors, officers, employees or agents of
the Servicer shall incur any liability, to the Transferor, the Issuer, the
Trustee or the holders of the Notes, for any action taken or not taken in good
faith pursuant to the terms of this Agreement with respect to any Contract
(including any Defaulted Contract) or the Equipment subject thereto; PROVIDED,
HOWEVER, that this provision shall not protect the Servicer or any such person
against any breach of representations or warranties made by it herein or in any
certificate delivered in conjunction with the purchase of the Notes or for any
liability that would otherwise be imposed by reason of willful misfeasance or
negligence in the performance of its duties hereunder or by reason of reckless
disregard of obligations and duties hereunder.

                  (b) Except as provided in this Agreement, the Servicer shall
not be under any obligation to appear in, prosecute, or defend any legal action
that shall not be incidental to its duties to service the Contracts in
accordance with this Agreement, and that in its opinion may involve it in any
expense or liability; PROVIDED, HOWEVER, that the Servicer may undertake, at its
expense, any reasonable action that it may deem necessary or desirable in
respect of this Agreement and the rights and duties of the parties to this
Agreement and the interests of the Noteholders under this Agreement.

                  (c) The Servicer, and any director or officer or employee or
agent of the Servicer, may rely in good faith on the advice of counsel selected
by it with due care or on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.

                  8.03 SERVICER NOT TO RESIGN OR BE REMOVED. The Servicer shall
not resign from the servicing obligations and duties hereby imposed on it except
in connection with an assignment permitted by Section 11.02 hereof or upon
determination that such duties hereunder are no longer permissible under
applicable law. Any such determination permitting the resignation of the
Servicer shall be evidenced by an opinion of independent counsel, in form and

                                       32
<PAGE>

substance satisfactory to the Noteholders evidencing more than 50% of the Voting
Rights, to such effect delivered to the Trustee.

                  Except as provided in Section 10.02 hereof, the Servicer shall
not be removed or be replaced as Servicer with respect to any Contract or
Equipment; PROVIDED, HOWEVER, that upon the occurrence of any Amortization
Event, Noteholders evidencing not less than 66-2/3% of the Voting Rights shall
have the right to replace DVI as Servicer with a successor Servicer in
accordance with Section 10.02 hereof.

                  No resignation or removal of the Servicer shall in any event
(i) become effective until the successor Servicer shall have assumed the
Servicer's servicing responsibilities and obligations in accordance with Section
10.02 hereof, or (ii) affect the Contributor's obligations pursuant to this
Agreement.

                  8.04 FINANCIAL AND BUSINESS INFORMATION. The Servicer will
deliver to the Transferor, the Issuer, the Trustee (who shall forward copies to
each Noteholder) and the Rating Agencies:

                       (a) promptly upon their becoming available, one copy of
         each report (including the Servicer's (or for so long as DVI Financial
         Services Inc. is the Servicer, DVI, Inc.'s) annual report to
         shareholders and reports on Form 8-K, 10-K, and 10-Q), proxy statement,
         registration statement, prospectus and notices filed with or delivered
         to any securities exchange, the Securities and Exchange Commission or
         any successor agencies, in each case relating to the Transferor or the
         Notes;

                       (b) immediately upon becoming aware of the existence of
         any condition or event which constitutes a Servicer Event of Default, a
         written notice describing its nature and period of existence and what
         action the Servicer is taking or proposes to take with respect thereto;

                       (c) promptly upon the Servicer's becoming aware of:

                           (i) any proposed or pending investigation of it by
                  any governmental authority, or agency, or

                           (ii) any court or administrative proceeding

         which individually or in the aggregate involves the possibility of
         materially and adversely affecting the properties, business, profits or
         conditions (financial or otherwise) of the Servicer, a written notice
         specifying the nature of such investigation or proceeding and what
         action the Servicer is taking or proposes to take with respect thereto
         and evaluating its merits; and

                  (d) (i) upon request, the Servicer shall furnish to the
Transferor, the Issuer and the Trustee, within ten (10) Business Days, a list of
all Contracts (by contract number and name of Obligor), as of the end of the
most recent Collection Period, held as

                                       33
<PAGE>

part of the Trust Property, together with a reconciliation of such list to the
Contract Schedule and (ii) with reasonable promptness, any other data and
information which may be reasonably requested from time to time.

                  8.05 OFFICER'S CERTIFICATES. With each set of documents
delivered pursuant to Section 8.04(a), the Servicer will deliver an Officer's
Certificate stating (i) that the officer signing such Certificate have reviewed
the relevant terms of this Agreement and have made, or caused to be made under
such officer's supervision, a review of the activities of the Servicer during
the period covered by the statements then being furnished, (ii) that the review
has not disclosed the existence of any Servicer Event of Default or, if a
Servicer Event of Default exists, describing its nature and what action the
Servicer has taken and is taking with respect thereto and (iii) that on the
basis of such review the officer signing such certificate is of the opinion that
during such period the Servicer has serviced the Contracts in compliance with
the procedures hereof except as described in such certificate.

                  8.06 INSPECTION. The Servicer shall make available to the
Trustee or its duly authorized representatives, attorneys or auditors, and the
Noteholders or their duly authorized representative attorneys or auditors copies
of the Contract Files and the related accounts, records and computer systems
maintained by the Servicer at such times during normal operating hours as the
Trustee shall reasonably request which does not unreasonably interfere with the
Servicer's normal operations or customer or employee relations. Nothing in this
Section 8.06 shall affect the obligation of the Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors, and
the failure of the Servicer to provide access to information as a result of such
obligation shall not constitute a breach of this Section 8.06. Any expense
incident to the exercise by the Trustee or any Noteholder during the continuance
of a Servicer Event of Default of any right under this Section 8.06 shall be
borne by the Servicer, but any expense due to the exercise of a right by any
such Person prior to the occurrence of a Servicer Event of Default shall be
borne by such Person.

                  8.07 SERVICER RECORDS. On or before the Closing Date, the
Servicer will indicate in its records that it is servicing and administering
each Contract in its capacity as Servicer hereunder, at the request and for the
benefit of the Transferor (and subject to the provisions of the applicable
Transaction Documents) and its successors and assigns (including the Issuer and
the Trustee).

                  8.08 INSURANCE. The Servicer will track, on a quarterly basis,
casualty insurance premium payments by Obligors as required by the Contracts, in
the same manner in which the Servicer would service contracts and equipment held
for its own account.

                  8.09 NO BANKRUPTCY PETITION AGAINST THE TRANSFEROR, THE
MANAGING MEMBER OR THE ISSUER. The Servicer covenants and agrees it will not,
prior to the date that is one year and one day after the payment in full of all
amounts owing pursuant to the Transaction Documents, institute against, or join
any other Person in instituting against, any of the Transferor, the Managing
Member or the Issuer, any bankruptcy, reorganization, receivership, arrangement,
insolvency or liquidation proceedings or other similar proceedings under any
federal or state bankruptcy or similar law. This Section 8.09 shall survive the
termination of this Agreement.

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                  8.10 FIDELITY BOND AND ERRORS AND OMISSIONS INSURANCE. The
Servicer shall maintain, at its own expense, a blanket fidelity bond and an
errors and omissions insurance policy, with coverage appropriate and customary
in the industry with responsible companies on all officers, employees or other
persons acting in any capacity with regard to the Contracts to handle funds,
money, documents and papers relating to the Contracts. Any such fidelity bond
and errors and omissions insurance shall protect and insure the Servicer against
losses, including forgery, theft, embezzlement, fraud, errors and omissions and
negligent acts of such persons and shall be maintained in a form and amount that
would meet the requirements of a prudent institutional servicer. No provision of
this Section 8.10 requiring such fidelity bond and errors and omissions
insurance shall diminish or relieve the Servicer from its duties and obligations
as set forth in this Agreement. Any such fidelity bond or insurance policy shall
not be cancelled or modified in a materially adverse manner without ten days'
prior written notice to the Rating Agencies. Promptly upon receipt of any notice
from the surety or the insurer that such fidelity bond or insurance policy has
been terminated or materially modified, the Servicer shall notify the Trustee
and the Rating Agency of any such termination or modification.

         SECTION 9. THE CONTRIBUTOR

                  9.01 CORPORATE EXISTENCE OF THE CONTRIBUTOR. The Contributor
will keep in full force and effect its existence, rights and franchise as a
corporation under the laws of its jurisdiction of incorporation and will
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is necessary to protect the validity,
and enforceability of any of the Contracts or to permit performance of the
Contributor's duties under this Agreement.

                  The Contributor shall not merge or consolidate with any other
Person unless (i) the entity surviving such merger or consolidation is a
corporation organized under the laws of the United States or any jurisdiction
thereof, (ii) the surviving entity, if not the Contributor, shall execute and
deliver to the Transferor, the Servicer and the Trustee, in form and substance
satisfactory, to each of them, (x) an instrument expressly assuming all of the
obligations of the Contributor hereunder, and (y) an Officer's Certificate to
the effect that such Person is a corporation of the type described in the
preceding clause (i), has effectively assumed the obligations of the Contributor
hereunder, that all conditions precedent provided for in this Agreement relating
to such transaction have been complied with, and, that all UCC financing
statements and continuation statements and amendments thereto have been executed
and filed that are necessary fully to preserve and protect the interest of the
Transferor, the Issuer and Trustee in the Trust Property, and reciting the
details of such filings, or stating that no such action shall be necessary to
preserve and protect such interest, (iii) the Contributor shall deliver to the
Trustee a letter from each Rating Agency to the effect that such consolidation,
merger or succession will not, in and of itself, result in a downgrading of the
ratings for the Notes and (iv) immediately after giving effect to such
transaction, no event of default under any Transaction Document, and no event
which, after notice or lapse of time, or both, would become an event of default
shall have occurred and be continuing.

                  9.02 FINANCIAL AND BUSINESS INFORMATION. The Contributor will
deliver to the Transferor, the Issuer, the Trustee and the Rating Agencies and,
upon request, to each Noteholder:

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<PAGE>

                       (a) promptly upon their becoming available, one copy of
         each report (including DVI, Inc.'s annual report to shareholders and
         reports on Form 8-K, 10-K, and 10-Q), proxy statement, registration
         statement, prospectus and notice filed with or delivered to any
         securities exchange, the Securities and Exchange Commission or any
         successor agencies;

                       (b) promptly upon the Contributor's becoming aware of

                           (iii) any proposed or pending investigation of it by
                  any governmental authority or agency, or

                           (iv) any court or administrative proceedings

         which individually or in the aggregate involves or may involve the
         possibility of materially and adversely affecting the properties,
         business, profits or conditions (financial or otherwise) of the
         Contributor, a written notice specifying the nature of such
         investigation or proceeding and what action the Contributor is taking
         or proposes to take with respect thereto and evaluating its merits; and

                       (c) with reasonable promptness, any other data and
         information which may be reasonably requested from time to time.

                  9.03 INSPECTION. The Contributor shall make available to the
Transferor, the Managing Member, the Issuer or the Trustee or their respective
duly authorized representatives, attorneys or auditors and the Noteholders or
their duly authorized representatives, attorneys or auditors its accounts,
records and computer systems regarding any Contract maintained by the
Contributor at such times during normal operating hours as the Trustee, the
Managing Member, the Issuer or the Transferor shall reasonably instruct which do
not unreasonably interfere with the Contributor's normal operations or customer
or employee relations. Nothing in this Section 9.03 shall affect the obligation
of the Contributor to observe any applicable law prohibiting disclosure of
information regarding the Obligors, and the failure of the Contributor to
provide access to information as a result of such obligation shall not
constitute a breach of this Section 9.03. Any expense incident to the exercise
by the Trustee or any Noteholder during the continuance of a Servicer Event of
Default of any fight under this Section 9.03 shall be borne by the Servicer, but
any expense due to the exercise of a right by any such Person prior to the
occurrence of a Servicer Event of Default shall be borne by such Person.

                  9.04 NO BANKRUPTCY PETITION AGAINST THE MANAGING MEMBER, THE
TRANSFEROR OR THE ISSUER. The Contributor covenants and agrees it will not,
prior to the date that is one year and one day after the payment in full of all
amounts owing pursuant to the Indenture, institute against, or join any other
Person in instituting against, any of the Managing Member, the Transferor or the
Issuer, any bankruptcy, reorganization, receivership, arrangement, insolvency or
liquidation proceedings or other similar proceedings under any federal or state
bankruptcy or similar law. This Section 9.04 shall survive the termination of
this Agreement.

                  9.05 ACCOUNTS, BOOKS AND RECORDS.

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<PAGE>

                  (a) The Contributor shall maintain accounts and records as to
each Contract accurately and in sufficient detail to permit the reader thereof
to know at any time the status of such Contract, including payments and
recoveries made and payments owing (and the nature of each). Prior to the
transfer of the Contracts to the Transferor, the Contributor will clearly mark
its books and records and each Contract File (including each Contract) to
reflect each sale of a Contract and the Equipment subject thereto to the
Transferor, the sale to the Issuer and to show that the Issuer owns the
Contracts absolutely. The Contributor or the Transferor, as the case may be,
will cause the electronic ledger, the Contract File (including the Contract),
with respect to each Contract and the related Contract and the Contract Schedule
to be clearly and unambiguously marked to show that such Contract and the
related Contract has been contributed by Contributor to the Transferor, resold
by the Transferor to the Issuer and pledged by the Issuer to the Trustee for the
benefit of the Noteholders and the Swap Provider pursuant to the Indenture.

                  (b) The Contributor shall maintain its computer systems so
that, from and after the time of sale hereunder of the Contracts to the
Transferor, the Contributor's master computer records (including archives) that
refer to a Contract and the related Contract shall indicate clearly the interest
of the Transferor in such Contract and that such Contract has been resold to the
Issuer and pledged by the Issuer to the Trustee for the benefit of the
Noteholders and the Swap Provider. Indication of the Transferor's ownership of a
Contract, the resale to the Issuer, and the pledge of such Contract by the
Issuer to the Trustee for the benefit of the Noteholders and the Swap Provider
shall be deleted from or modified on the Contributor's computer systems when,
and only when, the Contract shall have been paid in full or purchased or
substituted by the Contributor pursuant to the terms hereof.

                  9.06 TAX RETURNS. (a) At all times, so long as any of the
Notes or the other obligations secured by the Indenture remain outstanding, the
Contributor, the Managing Member and the Transferor shall be members of the same
affiliated group within the meaning of Section 1504 of the Code (the "DVI
GROUP") and shall join in the filing of a consolidated return for federal income
tax purposes.

                  (b) The Contributor shall promptly pay and discharge, or cause
the payment and discharge of, all federal income taxes (and all other material
taxes) when due and payable by Contributor, the DVI Group, the Managing Member,
or the Transferor, except (i) such as may be paid thereafter without penalty or
(ii) such as may be contested in good faith by appropriate proceedings and for
which an adequate reserve has been established and is maintained in accordance
with GAAP. The Contributor shall promptly notify the Transferor, the Trustee,
the Swap Provider, the Managing Member and the Noteholders of any material
challenge, contest or proceeding pending by or against Contributor, the Managing
Member, or the DVI Group before any taxing authority.

                  9.07 INSURANCE. The Contributor will at all times maintain
general liability and excess liability insurance policies in at least the amount
set forth in Section 2.26.

                  9.08 PROTECTION OF RIGHT, TITLE AND INTEREST.

                  (a) The Contributor shall not change its name, identity, or
corporate structure in any manner that would, could, or might make any UCC
financing statement or continuation

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<PAGE>

statement filed by the Contributor in accordance with Section 1.01(c) seriously
misleading within the meaning of Section 9-506 of the UCC, unless it shall have
given the Transferor at least thirty (30) days' prior written notice thereof and
shall promptly file appropriate amendments to all previously filed UCC financing
statements or continuation statements.

                  (b) If at any time the Contributor shall propose to sell,
grant a security interest in, or otherwise transfer any interest in contracts to
any prospective purchaser, lender, or other transferee, the Contributor shall
give to such prospective purchaser, lender, or other transferee computer tapes,
records, or print-outs (including any restored from archives) that, if they
shall refer in any manner whatsoever to any Contract, shall indicate clearly
that such Contract has been sold to the Transferor and then resold to the Issuer
and pledged by the Issuer to the Trustee for the benefit of the Noteholders and
the Swap Provider.

                  (c) The Contributor shall deliver to the Transferor, the
Managing Member, the Rating Agencies and the Trustee promptly after the
execution and delivery of each amendment hereto, an opinion of counsel either
(i) stating that, in the opinion of such counsel, all UCC financing statements
and continuation statements necessary to preserve and protect fully the interest
of the Transferor, the Issuer and the Trustee in the Trust Property have been
filed or, with respect to the Equipment, are required to be filed within thirty
(30) days following the Closing Date or the Substitution Date, as applicable, or
(ii) stating that, in the opinion of such counsel, no such action shall be
necessary to preserve and protect such interest.

                  9.09 OTHER LIENS OR INTERESTS. Except for the conveyances
hereunder, the Contributor will not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any lien on the
Contracts or any other Trust Property, or any interest therein, and the
Contributor shall defend the right, title, and interest of the Transferor, the
Issuer and the Trustee in, to and under the Contracts and the other Trust
Property against all claims of third parties claiming through or under the
Contributor; PROVIDED, HOWEVER, that the Contributor's obligations to the
Trustee under this Section 9.09 shall terminate upon the repayment in full of
the Notes and the expiration of any applicable preference period and, with
respect to any Contract, on the date it is paid in full or purchased by the
Contributor pursuant to Section 5.03 hereof.

                  9.10 COSTS AND EXPENSES. The Contributor agrees to pay all
reasonable costs and disbursements in connection with the performance of its
obligations hereunder and under the Indenture.

         SECTION 10. EVENTS OF DEFAULT

                  10.01 SERVICER EVENTS OF DEFAULT. The following events and
conditions shall constitute Servicer Events of Default hereunder:

                           (i) failure on the part of the Servicer (or for so
                  long as the Contributor is the Servicer, the Transferor) to
                  (A) remit any payment to the Trustee within the time period
                  required by Section 4.06 hereof or (B) make any Servicer
                  Advance required by Section 5.01 hereof;

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<PAGE>

                           (ii) failure to pay to the Trustee on or before the
                  date when due in accordance with the terms hereof, any deposit
                  required to be made by the Servicer pursuant to Section 4.02
                  hereof;

                           (iii) failure on the part of either the Servicer (or
                  for so long as the Contributor is the Servicer, the
                  Transferor) duly to observe or perform in any material respect
                  any other of their respective covenants or agreements in this
                  Agreement (including without limitation, failure of the
                  Servicer to deliver a Monthly Servicer Report on the date
                  required pursuant to Section 6.01 or the delivery of a Monthly
                  Servicer Report which is materially incorrect) which failure
                  materially and adversely affects the rights of the Noteholders
                  and continues unremedied for a period of 30 days after the
                  Servicer becomes aware of such failure or the giving of
                  written notice of such failure (A) to the Servicer (or the
                  Transferor, if applicable) by the Trustee or (B) to the
                  Servicer (or the Transferor, if applicable) and the Trustee by
                  Noteholders evidencing not less than 66-2/3% of the Voting
                  Rights, taken together;

                           (iv) if any representation or warranty of the
                  Servicer made in this Agreement or in any certificate or other
                  writing delivered pursuant hereto or the Transaction Documents
                  or made by any successor Servicer in connection with such
                  successor Servicer's assumption of the duties of the Servicer
                  shall prove to be incorrect in any material respect as of the
                  time when the same shall have been made;

                           (v) the entry by a court having jurisdiction in the
                  premises of (A) a decree or order for relief in respect of the
                  Servicer (or for so long as the Contributor is the Servicer,
                  the Transferor) in an involuntary case or proceeding under any
                  applicable federal or state bankruptcy, insolvency,
                  reorganization, or other similar law or (B) a decree or order
                  adjudging the Servicer (or for so long as the Contributor is
                  the Servicer, the Transferor) bankrupt or insolvent, or
                  approving as properly filed a petition seeking reorganization,
                  arrangement, adjustment, or composition of or in respect of
                  the Servicer (or for so long as the Contributor is the
                  Servicer, the Transferor) under any applicable federal or
                  state law, or appointing a custodian, receiver, liquidator,
                  assignee, trustee, sequestrator, or other similar official of
                  the Servicer (or for so long as the Contributor is the
                  Servicer, the Transferor) or of any substantial part of the
                  property of either, or ordering the winding up or liquidation
                  of the affairs of either, and the continuance of any such
                  decree or order for relief or any such other decree or order
                  unstayed and in effect for a period of 90 consecutive days;

                           (vi) the commencement by the Servicer (or for so long
                  as the Contributor is the Servicer, the Transferor) of a
                  voluntary case or proceeding under any applicable federal or
                  state bankruptcy, insolvency, reorganization, or other similar
                  law or of any other case or proceeding to be adjudicated a
                  bankrupt or insolvent, or the consent by either to the entry
                  of a decree or order for relief in respect of the Servicer (or
                  for so long as the Contributor is the Servicer, the
                  Transferor) in an involuntary case or proceeding under any
                  applicable federal or

                                       39
<PAGE>

                  state bankruptcy, insolvency, reorganization, or other similar
                  law or to the commencement of any bankruptcy or insolvency
                  case or proceeding against either, or the filing by either of
                  a petition or answer or consent seeking reorganization or
                  relief under any applicable federal or state law, or the
                  consent by either to the filing of such petition or to the
                  appointment of or taking possession by a custodian, receiver,
                  liquidator, assignee, trustee, sequestrator, or similar
                  official of the Servicer (or for so long as the Contributor is
                  the Servicer, the Transferor) or of any substantial part of
                  the property of either, or the making by either of an
                  assignment for the benefit of creditors, or the failure by the
                  Servicer (or for so long as the Contributor is the Servicer,
                  the Transferor) to pay its debts generally as they become due,
                  or the taking of corporate action by the Servicer (or for so
                  long as the Contributor is the Servicer, the Transferor) in
                  furtherance of any such action;

                           (vii) any assignment by the Servicer, or any attempt
                  by the Servicer to assign its duties or rights hereunder,
                  except as specifically permitted hereunder;

                           (viii) (A) the failure of the Servicer to make one or
                  more payments with respect to aggregate recourse indebtedness
                  for borrowed money exceeding $5,000,000 or (B) the occurrence
                  of any other event or the existence of any other condition,
                  the effect of which event or condition is to cause more than
                  $5,000,000 of aggregate recourse indebtedness for borrowed
                  money of the Servicer to become due before its (or their)
                  stated maturity or before its (or their) regularly scheduled
                  dates of payment, so long as such failure, event or condition
                  specified in either clause (A) or (B) shall be continuing and
                  shall not have been waived by the Person or Persons entitled
                  to performance;

                           (ix) the rendering against the Servicer of a final
                  judgment, decree or order (all possible appeals having been
                  exhausted) for the payment of money in excess of $5,000,000
                  which is uninsured, and the continuance of such judgment,
                  decree or order unsatisfied and in effect for any period of 60
                  consecutive days without a stay of execution; or

                           (x) the occurrence of an Amortization Event (so long
                  as the Contributor is the Servicer).

                  10.02 TERMINATION. If a Servicer Event of Default shall have
occurred and be continuing, the Trustee shall, upon the request of Noteholders
evidencing more than 66-2/3% of the Voting Rights, give written notice to the
Servicer of the termination of all of the rights and obligations of the Servicer
(but none of the Contributor's obligations hereunder, which shall survive any
such termination) under this Agreement. On the receipt by the Servicer of such
written notice, all rights and obligations of the Servicer under this Agreement,
including without limitation the Servicer's right hereunder to receive Servicing
Fees accruing subsequent to such termination date, but none of the Contributor's
obligations hereunder, shall cease and the same shall pass to and be vested in,
and assumed by, the Trustee pursuant to and under this Agreement and the
Indenture subject to the provisions of Section 10.03; and, without limitation,
the Trustee is hereby authorized and empowered to execute and deliver, on behalf
of the Servicer, as

                                       40
<PAGE>

attorney-in-fact or otherwise, any and all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and assignment of any Contract and the related Contract
and Equipment or such passing, vesting or assumption or to cause Obligors to
remit all future Contract Payments and other amounts due under any Contract to
such account as shall be specified by the Trustee. The Servicer may be removed
only pursuant to a Servicer Event of Default.

                  10.03 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

                  (a) On and after the time the Servicer receives a notice of
termination pursuant to Section 10.02 hereof, the Trustee (subject to subsection
(b) hereof) shall be the successor in all respects to the Servicer in its
capacity as servicer under this Agreement of the Contracts and, to such extent,
shall be subject to all the responsibilities, duties and liabilities (other than
the duty to advance funds and to indemnify) relating thereto placed on the
Servicer by the terms and provisions hereof (but not the obligations of the
Contributor contained herein which shall survive any such termination as above
provided) and shall be entitled to receive from the Transferor the Servicing Fee
and other servicing compensation provided for in Section 4.04 hereof; PROVIDED
that the Trustee shall in no way be responsible or liable for any action or
actions of the Servicer before the time the Servicer receives such a notice of
termination.

                  (b) The Trustee may, if it is unwilling or unable to act as
the successor Servicer, give notice of such fact to each Noteholder and (i)
appoint a successor Servicer with a net worth of at least $15,000,000 and
reasonably acceptable to Noteholders evidencing more than 50% of the Voting
Rights and whose regular business includes the servicing of receivables arising
from equipment similar to the Equipment, as the successor Servicer hereunder to
assume all of the rights and obligations of the Servicer hereunder, including,
without limitation, the Servicer's right (but not the obligations of the
Contributor contained herein) hereunder to receive the Servicing Fee (PROVIDED
THAT, notwithstanding any other provision to the contrary contained in any
Transaction Document, no increase in the Servicer Fee due to any successor
Servicer shall be made without the consent of the Noteholders that hold, as of
the date of determination, more than 50% of the then-Outstanding Note Balance of
each class of Notes then Outstanding) or, (ii) if no such institution is so
appointed, petition a court of competent jurisdiction to appoint an institution
meeting such criteria as the Servicer hereunder. Pending appointment of a
successor Servicer hereunder, the Trustee shall act in such capacity as
hereinabove provided. In connection with such appointment and assumption, the
Trustee shall cause such successor Servicer to enter into a servicing agreement
substantially in the form of this Agreement except that such agreement shall not
include any of the Contributor's representations, warranties or obligations and
the Trustee may make arrangements for the compensation of such successor
Servicer out of payments on Contracts and the related Contracts as it and such
successor Servicer shall agree; PROVIDED, HOWEVER, that no such compensation
shall be in excess of that provided in Section 4.04 hereof. Neither the Trustee
nor a Successor Servicer shall be deemed to be in default hereunder by reason of
its failure to make, or its delay in making, any distribution hereunder or any
portion thereof which failure or delay was caused by (i) the failure of the
prior Servicer to deliver, or any delay in delivering, cash, documents or
records to it, or (ii) restrictions imposed by any regulatory authority having
jurisdiction over the prior Servicer.

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<PAGE>

                  10.04 SERVICER TO COOPERATE. The Servicer hereby agrees to
cooperate with the successor Servicer appointed in accordance with Section 10.02
or 10.03 hereof, as applicable, in effecting the termination and transfer of the
responsibilities and rights of the Servicer hereunder to the successor Servicer,
including, without limitation, the execution and delivery of assignments of UCC
financing statements, and the transfer to the successor Servicer for
administration by it of all cash amounts which shall at the time be held by the
Servicer or thereafter received with respect to the Contracts and the related
Contracts. The Servicer hereby agrees to transfer to any successor Servicer its
electronic records and all other records, correspondence and documents relating
to the Contracts and the related Contracts in the manner and at such times as
the successor Servicer shall reasonably request. The Servicer hereby designates
the successor Servicer its agent and attorney-in-fact to execute transfers of
UCC financing statements (including any and all UCC financing statements naming
an individual Obligor as debtor and the Contributor as secured party) and any
other filings or instruments which may be necessary or advisable to effect such
transfer of the Servicer's responsibilities and rights hereunder. Upon any such
termination or appointment of a successor Servicer, the Trustee shall give
prompt written notice thereof to each Noteholder in the manner provided in the
Indenture.

                  10.05 REMEDIES NOT EXCLUSIVE. Nothing in the preceding
provisions of this Section 10 shall be interpreted as limiting or restricting
any rights or remedies which the Transferor, the Issuer, the Trustee, the
Noteholders or any other Person would otherwise have at law or in equity on
account of the breach or violation of any provision of this Agreement by the
Servicer, including without limitation the right to recover full and complete
damages on account thereof to the extent not inconsistent with Section 8.02
hereof.

                  10.06 WAIVER OF PAST DEFAULTS. Holders of Notes evidencing
more than 50% of the Voting Rights may waive any default by the Servicer in the
performance of its obligations hereunder and its consequences. Upon any such
waiver of a past default, such default shall cease to exist, and any default
arising therefrom shall be deemed to have been remedied for every purpose of
this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereon except to the extent expressly so waived.

         SECTION 11. ASSIGNMENT

                  11.01 ASSIGNMENT TO TRUSTEE. It is understood that this
Agreement and all rights of the Transferor hereunder and with respect to the
Contributed Property will be assigned by the Transferor to the Issuer, and then
assigned by the Issuer to the Trustee, for the benefit of the Trustee and the
Noteholders and the Swap Provider, and may be subsequently assigned by the
Trustee to any successor Trustee. Each of the Contributor and the Servicer
hereby expressly agrees to each such assignment and agrees that all of its
duties, covenants, obligations, indemnities, representations and warranties
hereunder, and all of the rights and remedies of the Transferor hereunder, shall
be for the benefit of, and may be enforced directly by, the Issuer, the Trustee,
the Swap Provider, the Noteholders and any successor to or assignee of any
thereof.

                  11.02 ASSIGNMENT BY CONTRIBUTOR OR SERVICER. None of the
respective rights or obligations of the Contributor and the Servicer hereunder
may be assigned without the prior written consent of the Transferor and the
Trustee (acting upon the instructions of the Swap

                                       42
<PAGE>

Provider and Noteholders evidencing not less than 66-2/3% of the Voting Rights);
PROVIDED that nothing herein shall preclude the Servicer from performing its
duties hereunder through the use of agents to the extent that such use is
consistent with the Servicer's business practices in dealing with similar
contracts and equipment for its own account, and PROVIDED, FURTHER, that the use
of an agent shall not relieve the Servicer from any of its obligations
hereunder.

         SECTION 12. NATURE OF CONTRIBUTOR'S OBLIGATIONS AND SECURITY THEREFOR

                  12.01 CONTRIBUTOR'S OBLIGATIONS ABSOLUTE. The obligations of
the Contributor hereunder, and the rights of the Issuer and the Trustee, as
assignee of the Transferor, in and to all amounts payable by the Contributor
hereunder, shall be absolute and unconditional and shall not be subject to any
abatement, reduction, setoff, defense, counterclaim or recoupment whatsoever
including, without limitation, abatements, reductions, setoffs, defenses,
counterclaims or recoupments due or alleged to be due to, or by reason of, any
past, present or future claims which the Contributor may have against the
Servicer, the Issuer, the Managing Member, the Transferor, DVI Funding
Corporation, DVI Funding, LLC, DVI Receivables Corp. XV, DVI Receivables XV,
LLC, the Trustee, any holder of the Notes or any other Person for any reason
whatsoever; nor, except as otherwise expressly provided herein, shall this
Agreement terminate, or the respective obligations of the Transferor, the
Contributor or the Servicer be otherwise affected, by reason of any defect in
any Contract or in any unit of Equipment or in the respective rights and
interests of the Transferor, the Issuer, the Contributor and the Trustee in any
thereof, or by reason of any liens, encumbrances, security interests or rights
of others with respect to any Contract or any unit of Equipment, or any failure
by the Transferor, or the Servicer to perform any of its obligations herein
contained, or by reason of any other indebtedness or liability, howsoever and
whenever arising, of DVI Funding Corporation, DVI Funding, LLC, DVI Receivables
Corp. XV, DVI Receivables XV, LLC, the Transferor, the Issuer, the Managing
Member, the Servicer, the Trustee or any holder of the Notes to the Contributor
or any other Person or by reason of any insolvency, bankruptcy, or similar
proceedings by or against the Contributor, the Servicer, the Transferor, the
Issuer, the Trustee or any other Person or for any other cause whether similar
or dissimilar to the foregoing, any present or future law to the contrary
notwithstanding, it being the intention of the parties hereto that all
obligations of the Contributor hereunder and all amounts payable by the
Contributor hereunder shall continue to be due and payable in all events and in
the manner and at the times herein provided unless and until the obligation to
perform or pay the same shall be terminated or limited pursuant to the express
provisions of this Agreement; PROVIDED that nothing in this Section 12.01 shall
be interpreted as precluding the Contributor from pursuing independently any
claim it may have against DVI Funding Corporation, DVI Funding, LLC, DVI
Receivables Corp. XV, DVI Receivables XV, LLC the Transferor, the Servicer, the
Issuer, the Managing Member, any holder of the Notes or any other Person;
PROVIDED, FURTHER, that any claims of the Contributor against the Transferor
shall be subordinate in right of payment to amounts due and owing to the Trustee
under the Indenture and any amounts received by the Contributor on such claims
shall be held in trust by the Contributor for the Trustee and turned over to the
Trustee until such time as all amounts due the Trustee under the Transaction
Document are fully paid.

                  12.02 POWER OF ATTORNEY. Each of the Contributor and Servicer
hereby grants to each of the Transferor and the Trustee the power as its
attorney-in-fact (i) to file UCC financing

                                       43
<PAGE>

statements in the appropriate offices evidencing the conveyance of the Contracts
and other Contributed Property to the Transferor and (ii) in the event an event
of default exists under any Transaction Document, to do any and all other acts
as may be necessary or appropriate to effect the transaction contemplated
herein. The Contributor will execute any document or instrument deemed necessary
by the Transferor or the Trustee to effect or to evidence this power of
attorney. All costs associated with such filings or instructions shall be paid
by the Contributor.

         SECTION 13. MISCELLANEOUS PROVISIONS

                  13.01 SALE. The Contributor agrees to treat the conveyances to
the Transferor of the Contributor's interest in the Contracts and Equipment
pursuant to the terms of this Agreement for all purposes other than taxes
measured by income (including, without limitation, financial accounting purposes
of the Contributor on a stand alone basis) as a sale of the Contributor's
interest in the Contracts and Equipment on all relevant books, records,
financial statements and other applicable documents. The execution and delivery
of this Agreement shall constitute an acknowledgment by the Contributor and the
Transferor that each intends that the assignment and transfer herein
contemplated constitutes an outright sale and assignment to the Transferor by
the Contributor of its interest in the Contracts and the other Contributed
Property, and not for security, conveying good title in such interests free and
clear of any liens, and that such interest shall not be a part of the
Contributor's estate in the event of the bankruptcy or the occurrence of another
similar event, of, or with respect to, the Contributor, and that the Contributed
Property shall be removed from the Contributor's estate in connection with an
asset-backed transaction. In that regard, each of the Contributor and the
Company each intend that each transfer of Contributed Property pursuant to this
Agreement be treated as a "transfer" of an "eligible asset" (or proceeds
thereof) to an "eligible entity" in connection with an "asset-backed
securitization", all within the meaning of Section 541 of the Bankruptcy Code
and any successor section thereto. In the event that such conveyance is
determined to be made as security for a loan made by the Transferor, the Issuer,
the Trust or the Noteholders to the Contributor, the parties intend that the
Contributor shall have granted to the Transferor, and its successors and
assigns, a security interest in the Contracts and other Contributed Property and
that this Agreement shall constitute a security agreement under applicable law.

                  The conveyance to the Transferor shall be treated as a sale to
the extent of cash remitted to the Contributor and shall be treated as an
additional contribution to the capital of the Transferor to the extent of the
excess of the Discounted Contract Balances of the Contracts conveyed over the
amount of such cash.

                  13.02 AMENDMENT. This Agreement may be amended from time to
time by the parties hereto, without the consent of any of the Noteholders, to
cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein or to make any other provisions
with respect to matters or questions arising under this Agreement which shall
not be materially inconsistent with the provisions of this Agreement, PROVIDED
that such actions shall not adversely affect in any respect the interests of any
Noteholder or the Swap Provider.

                  This Agreement may also be amended from time to time by the
parties hereto with the consent of the Holders of Notes evidencing more than 50%
of the Voting Rights (and

                                       44
<PAGE>

with prior written notice to the Rating Agencies) for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Holders of Notes;
PROVIDED, HOWEVER, that such amendment may not, without the consent of the Swap
Provider and all of the Noteholders (i) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on the
Contracts or distributions that are required to be made for the benefit of the
Swap Provider and such Noteholders, (ii) reduce the aforesaid percentage of the
Voting Rights which are required to consent to any such amendment, or (iii)
modify this Section 13.02. The Servicer shall deliver copies of any amendment to
this Agreement to each of the Rating Agencies, the Swap Provider and each
Noteholder.

                  13.03 WAIVERS. No failure or delay on the part of the
Transferor, the Issuer or the Trustee in exercising any power, right or remedy
under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other or
further exercise thereof or the exercise of any other power, right or remedy.

                  13.04 NOTICES. All communications and notices pursuant hereto
to any party shall be in writing or by telegraph, telex or telecopy and
addressed or delivered to it at its address (or in case of telex or telecopy, at
its telex or telecopy number at such address) as follows or at such other
address as may be designated by it by notice to the other party and, if mailed
or sent by telegraph or telex, shall be deemed given when mailed, communicated
to the telegraph office or transmitted by telex or telecopy:

                        (a) in the case of the Contributor or Servicer:

                            2500 York Road
                            Jamison, Pennsylvania 18929
                            Attention: Securitization Manager
                            Telephone: (215) 488-5000
                            Telecopier: (215) 488-5416

                        (b) in the case of the Transferor:

                            2500 York Road
                            Jamison, Pennsylvania 18929
                            Attention: Securitization Manager
                            Telephone: (215) 488-5000
                            Telecopier: (215) 488-5416

                        (c) in the case of the Managing Member:

                            2500 York Road
                            Jamison, Pennsylvania 18929
                            Attention: Securitization Manager
                            Telephone: (215) 488-5000

                                       45
<PAGE>

                            Telecopier: (215) 488-5416

                        (d) in the case of the Trustee:

                            181 Fifth Street
                            St. Paul, Minnesota 55101
                            Attention: Structured Finance
                            Telephone: (651) 244-0727
                            Telecopier: (651) 244-0089

                        (e) in the case of the Rating Agencies:

                            Fitch, Inc.
                            55 East Monroe Street
                            Chicago, IL 60603
                            Attention: Asset-Backed Monitoring
                                       (Equipment Leases)
                            Telephone: (312) 368-3100
                            Telecopier: (312) 368-2069

                            Moody's Investors Service, Inc.
                            99 Church Street, 4th Floor
                            New York, NY 10007
                            Attention: ABS Monitoring Department
                            Telephone: (212) 553-0300
                            Telecopier: (212) 298-7139
                            E-Mail: ServicerReports@moodys.com

                        (f) in the case of the Swap Provider:

                            Bank of America, N.A.
                            Sears Tower
                            233 South Wacker Driver, Suite 2800
                            Chicago, IL 60606
                            Attention:  Swap Operations
                            Telephone: (312) 234-2787
                            Facsimile: (312) 453-2787
                            e-mail: abs-derivates@bankofamerica.com

                            with a copy to:

                            Bank of America, N.A.
                            100 N. Tryon St., NC1-007-13-01
                            Charlotte, North Carolina 28255
                            Attention:  Capital Markets Documentation
                            Telephone: (704) 386-0862
                            Facsimile:  (704) 386-4113

                                       46
<PAGE>

                  13.05 COSTS AND EXPENSES. The Contributor will pay all
reasonable expenses incident to the performance of its obligations under this
Agreement and any other Transaction Document and the Contributor agrees to pay
all reasonable out-of-pocket costs and expenses of the Transferor, including
fees and expenses of counsel, in connection with the enforcement of any
obligation of the Contributor hereunder.

                  13.06 THIRD PARTY BENEFICIARIES. The Issuer, the Trustee, the
Swap Provider and the Noteholders are express third party beneficiaries to this
Agreement.

                  13.07 SURVIVAL OF REPRESENTATIONS. The respective agreements,
representations, warranties and other statements by the Contributor and the
Transferor set forth in or made pursuant to this Agreement shall remain in full
force and effect and will survive the Closing Date.

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

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

                  13.10 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE CONFLICT OF LAWS PRINCIPLES THEREOF.

                  13.11 CONSENT TO JURISDICTION. Each of the parties hereto
irrevocably submits to the jurisdiction of any New York State or Federal court
sitting in the Borough of Manhattan in the City of New York over any suit,
action or proceeding arising out of or relating to this Agreement. Each of the
parties hereto irrevocably waives, to the fullest extent permitted by law, any
objection which it may have to the laying of the venue of any such suit, action
or proceeding brought in such a court and any claim that any such suit, action
or proceeding brought in such a court has been brought in any inconvenient
forum. Each of the parties hereto agrees that the final judgment in any such
suit, action or proceeding brought in such a court shall be conclusive and
binding upon each of the parties hereto and may be enforced by the courts of New
York (or any other courts to the jurisdiction of which it is subject) by a suit
upon such judgment; PROVIDED that service of process is effected upon it as
permitted by law; PROVIDED HOWEVER, that each of the parties hereto does not
waive, and the foregoing provisions of this sentence shall not constitute or be
deemed to constitute a waiver of, (i) any right to appeal any such judgment, to
seek any stay or otherwise to seek reconsideration or review of any such
judgment or (ii) any stay of execution or levy pending an appeal from, or a
suit, action or proceeding for reconsideration or review of, any such judgment.

                                       47
<PAGE>

                  13.12 COUNTERPARTS. This Agreement 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.

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

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

                                            CONTRIBUTION AND SERVICING AGREEMENT
                                                    DATED AS OF NOVEMBER 1, 2002

                  IN WITNESS WHEREOF, the undersigned have caused this Agreement
to be duly executed by their respective officers thereunto duly authorized as of
the date first above written.

                                            DVI FINANCIAL SERVICES INC.

                                            By: ___________________________
                                            Name: Matthew E. Goldenberg
                                            Title: Vice President

                                            DVI RECEIVABLES CORP. XVIII

                                            By: ___________________________
                                            Name: Matthew E. Goldenberg
                                            Title: Vice President

<PAGE>

                                    EXHIBIT A

                                CONTRACT SCHEDULE
                                -----------------

                        See Schedule 1 to the Indenture.

<PAGE>

                                    EXHIBIT B

                             MONTHLY SERVICER REPORT
                             -----------------------

                                  SEE ATTACHED

<PAGE>

                                    EXHIBIT C

                                    RESERVED
                                    --------

<PAGE>

                                    EXHIBIT D

                        SUBSTITUTE CONTRACT TRANSFER FORM
                        ---------------------------------

         DVI Financial Services Inc. (the "CONTRIBUTOR") and DVI RECEIVABLES
CORP. XVIII (the "TRANSFEROR"), pursuant to the Contribution and Servicing
Agreement, dated as of November 1, 2002 (the "CONTRIBUTION AND SERVICING
AGREEMENT"), hereby confirm their understanding with respect to the contribution
by the Contributor to the Transferor of those substitute Contracts listed on the
Schedule 1 attached hereto (the "SUBSTITUTE CONTRACTS"), together with a
security interest in all of the Contributor's right, title and interest in and
to the related Equipment and other related property described herein.

         CONVEYANCE OF SUBSTITUTE CONTRACTS. The Contributor hereby makes a
capital contribution to the Transferor of all of Contributor's rights, title and
interest in, to, and under (i) the Substitute Contracts listed on Schedule 1
hereto including, without limitation, its interests in the proceeds of such
Substitute Contracts, the right to receive all amounts due or to become due
thereunder after ____________ (the "CUT-OFF DATE"), but excluding the
Contributor's Retained Interest, if any, (ii) the Contract Files relating to
such Contracts, (iii) a security interest in the Equipment subject to such
Substitute Contracts, (iv) any remarketing agreement to the extent specifically
relating to a Substitute Contract, and all guarantees, cash deposits or credit
support (other than any accounts receivable of the related Obligor) supporting
or securing payment of any arrangements with the vendor, dealer or manufacturer
of the Equipment to the extent specifically relating to any Substitute Contract,
(v) any insurance carried by any Obligor under any Substitute Contract (or the
related Equipment) and (vi) all income, payments and proceeds of the foregoing.

         The Contributor hereby confirms that:

         (1) On or prior to ________________ (the "SUBSTITUTION DATE"), the
Contributor shall have deposited in the Collection Account all collections in
respect of the Substitute Contracts that were due on or after the related
Cut-Off Date;

         (2) As of the Substitution Date, the Contributor was not insolvent nor
will it be made insolvent by such transfer nor is any of them aware of any
pending insolvency;

         (3) Each Substitute Contract is an Eligible Contract;

         (4) On or prior to the Substitution Date, the Contributor shall have
delivered to the Trustee the sole original, manually executed counterpart of
each Substitute Contract that constitutes "chattel paper" or an "instrument", as
such terms are defined in the UCC;

         (5) The sum of the Discounted Contract Balances as of the Cut-Off Date
of the Substitute Contracts listed on Schedule 1 attached hereto is
$____________;

         (6) When the Substitute Contracts are added to the Trust Property, all
representations and warranties will be true and correct as of the Substitution
Date unless any breach of such representations and warranties resulting from the
inclusion of such Substitute Contract shall have been waived in advance by
Noteholders evidencing more than 50% of the Voting Rights;

                                       48
<PAGE>

         (7) The Contributor has delivered to the Trustee evidence of all UCC
filings necessary to give the Trustee a perfected first priority security
interest in the Substitute Contract and the related Equipment (other than
Equipment for which the Original Equipment Cost is less than $25,000);

         (8) Such Substitute Contract(s) shall be added to, and constitute a
part of, [Pool A] [Pool B]; and

         (9) Such Substitute Contract(s) is/are being substituted pursuant to
[Section 5.03 of the Agreement] [Section 7.01(a)(1) of the Agreement] [Section
7.01(a)(2) of the Agreement] [Section 7.01(b)(1) of the Agreement] [Section
7.01(b)(2) of the Agreement].

         All terms and conditions of the Contribution and Servicing Agreement
and the other Transaction Documents with respect to the Contributor and the
Substitute Contracts have been complied with and are hereby ratified, confirmed
and incorporated herein; PROVIDED THAT in the event of any conflict, the
provisions of this Substitute Contract Transfer Form shall control over the
conflicting provisions of the Contribution and Servicing Agreement.

         Terms capitalized herein and not defined herein shall have their
respective meanings as set forth in the Contribution and Servicing Agreement.

                                                     DVI FINANCIAL SERVICES INC.

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

                                                     DVI RECEIVABLES CORP. XVIII

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

<PAGE>

                                    EXHIBIT E

       FORM OF RE-ASSIGNMENT BY TRANSFEROR PURSUANT TO SECTION 5.03(b) OR
              7.01(c) OF THE CONTRIBUTION AND SERVICING AGREEMENT

         DVI RECEIVABLES CORP. XVIII (the "TRANSFEROR") pursuant to the
Contribution and Servicing Agreement, dated as of November 1, 2002, between the
Transferor and DVI Financial Services Inc. (the "CONTRIBUTOR") does hereby sell,
transfer, assign, deliver and otherwise convey to Contributor, without recourse,
representation or warranty, all of the Transferor's right, title and interest in
and to all of the Predecessor Contracts listed on Schedule A hereto and all
security and documents relating thereto.

         IN WITNESS WHEREOF, I have hereunto set my hand this _____ day of
__________.

                                                     DVI RECEIVABLES CORP. XVIII

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

<PAGE>

                                    EXHIBIT F

               FORM OF OFFICER'S CERTIFICATE PURSUANT TO SECTION 7
               ---------------------------------------------------

         The undersigned certifies that the undersigned is a duly authorized
officer of DVI Financial Services Inc. (the "Contributor"), and that, as such
the undersigned is authorized to execute and deliver this certificate on behalf
of the Contributor, and further certifies pursuant to Section 7.02 of the
Contribution and Servicing Agreement (the "AGREEMENT") dated as of November 1,
2002, between the Contributor and DVI RECEIVABLES CORP. XVIII (the
"TRANSFEROR"), that to his or her knowledge, the Contributor's contribution to
the Transferor of those Substitute Contracts listed in Schedule 1 attached
hereto, together with all of the Contributor's right, title and interest in and
to the related Contracts and the related Contributed Property, is in compliance
with Section 7 of the Agreement.

         IN WITNESS WHEREOF, I have hereunto signed my name.

Date:

                                                     DVI FINANCIAL SERVICES INC.

                                                     By:________________________
                                                     Name:______________________
                                                     Title:_____________________

<PAGE>

                                    EXHIBIT G

                               FORMS OF CONTRACTS
                               ------------------

         Copies are on file at the offices of U.S. BANK NATIONAL ASSOCIATION (as
successor to U.S. Bank Trust National Association), as Indenture Trustee, and
are available upon request.

<PAGE>

                                    EXHIBIT H

                             UNDERWRITING GUIDELINES

         Copies are on file at the offices of U.S. BANK NATIONAL ASSOCIATION (as
successor to U.S. Bank Trust National Association), as Indenture Trustee, and
are available upon request.

<PAGE>

                                   APPENDIX I

                 See copy of Appendix I following the Indenture

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