Document:

<PAGE>   1
                                                                     EXHIBIT 4.1

                                                                      OH&S Draft
                                                                        02/16/00

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                ADVANTA EQUIPMENT RECEIVABLES SERIES 2000-__ LLC,

                                     Issuer

                      Class A-1 [____%] Asset Backed Notes
                      Class A-2 [____%] Asset Backed Notes
                      Class A-3 [____%] Asset Backed Notes
                      Class A-4 [____%] Asset Backed Notes
                       Class B [____%] Asset Backed Notes
                       Class C [____%] Asset Backed Notes
                           Class D Asset Backed Notes

                            -------------------------

                                    INDENTURE

                         Dated as of __________ __, 2000

                            -------------------------

                            -------------------------,

                                     Trustee

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<PAGE>   2

                         -------------------------------

                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                      ACT OF 1939 AND INDENTURE PROVISIONS*

<TABLE>
<CAPTION>
      Trust Indenture
        Act Section                                                                                   Indenture Section
      ---------------                                                                                 -----------------
<S>                                                                                                   <C>
      310(a)(1)...................................................................................           6.11
         (a)(2)...................................................................................           6.11
         (a)(3)...................................................................................           6.10
         (a)(4)...................................................................................      Not Applicable
         (b)......................................................................................        6.08(a)(1)
         (c)......................................................................................      Not Applicable
      311(a)......................................................................................           6.12
         (b)......................................................................................           6.12
      312(a)......................................................................................           7.01(a)
         (b)......................................................................................           7.02(b)
         (c)......................................................................................           7.02(c)
      313(a)......................................................................................           7.04
         (b)......................................................................................           7.04
         (c)......................................................................................           7.04
         (d)......................................................................................           7.04
      314(a)......................................................................................           3.09, 7.03(a)
         (b)......................................................................................           3.06
         (c)(1)...................................................................................           2.09, 8.04(b)
         (c)(2)...................................................................................           2.09, 8.04(b), 11.01(a)
         (c)(3)...................................................................................           2.09, 8.04(b), 11.01(a)
         (d)(1)...................................................................................           2.09, 8.04(b), 11.01(a)
         (d)(2)...................................................................................      Not Applicable
         (d)(3)...................................................................................      Not Applicable
         (e)......................................................................................          11.01(a)
      315(a)......................................................................................           6.01(b)
         (b)......................................................................................           6.05
         (c)......................................................................................           6.01(b)
         (d)......................................................................................           6.01(b)
         (d)(1)...................................................................................           6.01(b)
         (d)(2)...................................................................................           6.01(c)
         (d)(3)...................................................................................           6.01(c)
         (e)......................................................................................           5.13
      316(a)(1)(A)................................................................................           5.11
      316(a)(1)(B)................................................................................           5.12
      316(a)(2)...................................................................................      Not Applicable
      316(b)......................................................................................           5.07
      317(a)(1)...................................................................................           5.03
      317(a)(2)...................................................................................           5.03
      317(b)......................................................................................           5.03
      318(a)......................................................................................          11.07
</TABLE>

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* This reconciliation and tie shall not, for any purpose, be deemed to be part
of the within indenture.

<PAGE>   3

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            PAGE

<S>                                                                                                         <C>
GRANTING CLAUSE..............................................................................................3

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.      (a)  Definitions..........................................................................4

Section 1.02.      Incorporation by Reference of Trust Indenture Act........................................12

Section 1.03.      Calculations of Interest.................................................................12

                                   ARTICLE II

                                   THE NOTES

Section 2.01.      Form.....................................................................................13

Section 2.02.      Execution, Authentication and Delivery...................................................13

Section 2.03.      Temporary Notes..........................................................................13

Section 2.04.      Registration; Registration of Transfer and Exchange......................................14

Section 2.05.      Mutilated, Destroyed, Lost or Stolen Notes...............................................15

Section 2.06.      Persons Deemed...........................................................................16

Section 2.07.      Interest Rates; Maturity Dates; Payment of Principal and Interest; Defaulted Interest....16

Section 2.08.      Cancellation.............................................................................18

Section 2.09.      Release of Collateral....................................................................18

Section 2.10.      Book-Entry Interests.....................................................................18

Section 2.11.      Notices to Clearing Agency...............................................................19

Section 2.12.      Definitive Notes.........................................................................19

                                  ARTICLE III

                                   COVENANTS

Section 3.01.      Payment of Principal and Interest........................................................21

Section 3.02.      Maintenance of Office or Agency..........................................................21

Section 3.03.      Money for Payments To Be Held in Trust...................................................21

Section 3.04.      Existence................................................................................22

Section 3.05.      Protection of Trust Estate...............................................................23
</TABLE>

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                                TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                           PAGE
<S>                                                                                                        <C>
Section 3.06.      Opinions as to Trust Estate..............................................................23

Section 3.07.      Performance of Obligations; Servicing of Contracts.......................................23

Section 3.08.      Negative Covenants.......................................................................25

Section 3.09.      Statements as to Compliance..............................................................26

Section 3.10.      Issuer May Consolidate, etc., Only on Certain Terms......................................26

Section 3.11.      Successor or Transferee..................................................................27

Section 3.12.      No Other Business........................................................................28

Section 3.13.      No Borrowing.............................................................................28

Section 3.14.      Servicer's Obligations...................................................................28

Section 3.15.      Guarantees, Loans, Advances and Other Liabilities........................................28

Section 3.16.      Capital Expenditures.....................................................................28

Section 3.17.      Notice of Events of Default..............................................................28

Section 3.18.      Further Instruments and Acts.............................................................28

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

Section 4.01.      Satisfaction and Discharge of Indenture..................................................29

Section 4.02.      Application of Trust Money...............................................................30

Section 4.03.      Repayment of Moneys Held by Paying Agent.................................................30

                                   ARTICLE V

                                    REMEDIES

Section 5.01.      Events of Default........................................................................31

Section 5.02.      Acceleration of Maturity; Rescission and Annulment.......................................32

Section 5.03.      Collection of Indebtedness and Suits for Enforcement

                   by Trustee...............................................................................32

Section 5.04.      Remedies; Priorities.....................................................................34

Section 5.05.      Optional Preservation of the Contracts...................................................36

Section 5.06.      Limitation of Suits......................................................................37

Section 5.07.      Unconditional Rights of Noteholders to Receive Principal and Interest....................37
</TABLE>

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                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                            PAGE
<S>                                                                                                         <C>
Section 5.08.      Restoration of Rights and Remedies.......................................................37

Section 5.09.      Rights and Remedies Cumulative...........................................................38

Section 5.10.      Delay or Omission Not a Waiver...........................................................38

Section 5.11.      Control by Noteholders...................................................................38

Section 5.12.      Waiver of Past Default...................................................................38

Section 5.13.      Undertaking for Costs....................................................................39

Section 5.14.      Waiver of Stay or Extension Laws.........................................................39

Section 5.15.      Action on Notes..........................................................................39

Section 5.16.      Performance and Enforcement of Certain Obligations.......................................39

                                   ARTICLE VI

                                  THE TRUSTEE

Section 6.01.      Duties of Trustee........................................................................41

Section 6.02.      Rights of Trustee........................................................................42

Section 6.03.      Individual Rights of Trustee.............................................................42

Section 6.04.      Trustee's Disclaimer.....................................................................43

Section 6.05.      Notice of Defaults.......................................................................43

Section 6.06.      Reports by Trustee to Holders............................................................43

Section 6.07.      Compensation and Indemnity...............................................................43

Section 6.08.      Replacement of Trustee...................................................................44

Section 6.09.      Successor Trustee by Merger..............................................................45

Section 6.10.      Appointment of Co-Trustee or Separate Trustee............................................45

Section 6.11.      Eligibility; Disqualification............................................................46

Section 6.12.      Preferential Collection of Claims Against................................................46

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

Section 7.01.      Issuer To Furnish Trustee Names and Addresses of Noteholders.............................47

Section 7.02.      Preservation of Information; Communications to Noteholders...............................47

Section 7.03.      Reports by Issuer........................................................................47
</TABLE>

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                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                            PAGE
<S>                                                                                                         <C>
Section 7.04.      Reports by Trustee.......................................................................48

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01.      Collection of Money......................................................................49

Section 8.02.      Collection and Reserve Accounts..........................................................49

Section 8.03.      General Provisions Regarding Accounts....................................................49

Section 8.04.      Release of Trust Estate..................................................................50

Section 8.05.      Opinion of Counsel.......................................................................50

                                   ARTICLE IX

                            SUPPLEMENTAL INDENTURES

Section 9.01.      Supplemental Indentures Without Consent of Noteholders...................................52

Section 9.02.      Supplemental Indentures with Consent of Noteholders......................................53

Section 9.03.      Execution of Supplemental Indentures.....................................................54

Section 9.04.      Effect of Supplemental Indenture.........................................................54

Section 9.05.      Conformity With Trust Indenture Act......................................................54

Section 9.06.      Reference in Notes to Supplemental Indentures............................................55

                                   ARTICLE X

                              REDEMPTION OF NOTES

Section 10.01.     Redemption...............................................................................56

Section 10.02.     Form of Redemption Notice................................................................56

Section 10.03.     Notes Payable on Redemption Date.........................................................57

                                   ARTICLE XI

                                 MISCELLANEOUS

Section 11.01.     Compliance Certificates and Opinions etc.................................................58

Section 11.02.     Form of Documents Delivered to Trustee...................................................59

Section 11.03.     Acts of Noteholders......................................................................60

Section 11.04.     Notices, etc. to Trustee, Issuer and Rating Agencies.....................................60
</TABLE>

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                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                            PAGE
<S>                                                                                                         <C>
Section 11.05.     Notices to Noteholders; Waiver...........................................................61

Section 11.06.     Alternate Payment and Notice Provisions..................................................61

Section 11.07.     Conflict with Trust Indenture Act........................................................62

Section 11.08.     Effect of Headings and Table of Contents.................................................62

Section 11.09.     Successors and Assigns...................................................................62

Section 11.10.     Separability.............................................................................62

Section 11.11.     Benefits of Indenture....................................................................62

Section 11.12.     Legal Holidays...........................................................................62

Section 11.13.     GOVERNING LAW............................................................................62

Section 11.14.     Counterparts.............................................................................62

Section 11.15.     Recording of Indenture...................................................................63

Section 11.16.     Trust Obligation.........................................................................63

Section 11.17.     No Petition..............................................................................63

Section 11.18.     Inspection...............................................................................63

Section 11.19.     Restrictions on Transfer of Class D Notes................................................63

Section 11.20.     Tax Treatment............................................................................63
</TABLE>

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                                    EXHIBITS

<TABLE>
<S>                                                                                                         <C>
EXHIBIT A - List of Contracts [Deemed Incorporated].........................................................A-1
EXHIBIT B - Form of Transfer and Servicing Agreement........................................................B-1
EXHIBIT C - Form of Depository Agreement....................................................................C-1
EXHIBIT D - Form of Note....................................................................................D-1
EXHIBIT E - Form of Class D Note Transferee Certificate.....................................................E-1
</TABLE>

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<PAGE>   9

     This INDENTURE dated as of __________ __, 2000 is hereby executed by and
between ADVANTA EQUIPMENT RECEIVABLES SERIES 2000-__ LLC, a Nevada limited
liability company (the "Issuer") and _________________________, (the "Trustee").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Issuer's Class A-1 [____%] Asset
Backed Notes, Class A-2 [____%] Asset Backed Notes, Class A-3 [____%] Asset
Backed Notes, Class A-4 [____%] Asset Backed Notes, Class B [____%] Asset Backed
Notes, Class C [____%] Asset Backed Notes and Class D Asset Backed Notes,
(collectively, the "Notes"):

                                 GRANTING CLAUSE

     The Issuer hereby Grants to the Trustee at the Closing Date, as Trustee for
the benefit of the Holders of the Notes, all of the Issuer's right, title and
interest, whether now owned or hereafter acquired, in, to and under all
accounts, money, chattel paper, securities, instruments, documents, deposit
accounts, certificates of deposit, letters of credit, advices of credit,
banker's acceptances, uncertificated securities, investment property, general
intangibles, contract rights, goods and other property consisting of, arising
from or relating to (a) the Contracts listed on the List of Contracts and all
obligations of the Obligors thereunder, including all monies (including accrued
interest but excluding Excluded Amounts) due or to become due thereon on or
after the Cut-off Date (provided that the Issuer has not received and this Grant
does not include any interest in the Residual Interests related to the
Contracts); (b) the Issuer's security interest in the Financed Equipment; (c)
any and all Collections and Related Security with respect to the Contracts; (d)
all balances, monies, securities, investment property, instruments and other
property received or held from time to time in the Collection Account and the
Reserve Account, and in all interest, dividends, earnings, income and other
distributions from time to time received, receivable or otherwise distributed to
or in respect thereto; (e) the Transfer and Servicing Agreement and the Issuer's
rights to enforce the provisions of, and to benefit from the representations,
warranties and covenants made in the Transfer and Servicing Agreement; and (f)
all present and future claims, demands, causes and chose in action in respect of
any or all of the foregoing and all payments on or under and all proceeds of
every kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds, products, rents, receipts or profits of the conversion,
voluntary or involuntary, into cash or other property, all cash and non-cash
proceeds, and other property consisting of, arising from or relating to all or
any part of any of the foregoing or any proceeds thereof (collectively, the
"Collateral").

     The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes and to
secure compliance with the provisions of this Indenture, all as provided in this
Indenture. This Indenture shall be deemed to be and hereby is a security
agreement within the meaning of Article 8 of the UCC as in effect in the States
of New York, Utah and Nevada.

     The Trustee, as Trustee on behalf of the Holders of the Notes, acknowledges
such Grant, accepts the trusts under this Indenture in accordance with the
provisions of this Indenture and agrees to perform its duties as expressly set
forth in this Indenture.

                                       3
<PAGE>   10

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01. (a) Definitions. Except as otherwise specified herein or as
the context may otherwise require, the following terms have the respective
meanings set forth below for all purposes of this Indenture.

     "Act" has the meaning specified in Section 11.03(a).

     "Affiliate" means, with respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

     "Authorized Officer" means any manager of the Issuer or any officer of the
Managing Member who is authorized to act for the Issuer in matters relating to
the Issuer and who is identified on the list of Authorized Officers, containing
the specimen signature of each such Person, delivered to the Trustee on the
Closing Date (as such list may be modified or supplemented from time to time
thereafter).

     "Basic Documents" means this Indenture, the Transfer and Servicing
Agreement, the Underwriting Agreement and other documents and certificates
delivered in connection therewith.

     "Book-Entry Interest" means a beneficial interest in the Notes or any Class
of Notes ownership and transfers of which shall be made through book entries by
a Clearing Agency as described in Section 2.10.

     "Business Day" means any day other than a Saturday, a Sunday or a day on
which banking institutions or trust companies in the City of New York and Salt
Lake City, Utah, and in such other location as the Corporate Trust Office may be
located are authorized or obligated by law, regulation or executive order to
remain closed.

     "Class A Monthly Principal Payment Amount" has the meaning specified in the
Transfer and Servicing Agreement.

     "Class A Notes" means, collectively, the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes.

     "Class A-1 Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class A-1 [____%] Asset Backed Note.

     "Class A-1 Note Interest Rate" means [____%] per annum.

     "Class A-1 Note Owner" means, with respect to a Book-Entry Interest, the
Person who is the owner of such Book-Entry Interest, as reflected on the books
of the Clearing Agency, or on

                                       4
<PAGE>   11

the books of a Person maintaining an account with such Clearing Agency (directly
as a Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).

     "Class A-1 Noteholder" means any Holder of a Class A-1 Note.

     "Class A-2 Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class A-2 [___%] Asset Backed Note.

     "Class A-2 Note Interest Rate" means [____%] per annum.

     "Class A-2 Note Owner" means, with respect to a Book-Entry Interest, the
Person who is the owner of such Book-Entry Interest, as reflected on the books
of the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

     "Class A-2 Noteholder" means any Holder of a Class A-2 Note.

     "Class A-3 Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class A-3 [___%] Asset Backed Note.

     "Class A-3 Note Interest Rate" means [____%] per annum.

     "Class A-3 Note Owner" means, with respect to a Book-Entry Interest, the
Person who is the owner of such Book-Entry Interest, as reflected on the books
of the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

     "Class A-3 Noteholder" means any Holder of a Class A-3 Note.

     "Class A-4 Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class A-4 [___%] Asset Backed Note.

     "Class A-4 Note Interest Rate" means [____%] per annum.

     "Class A-4 Note Owner" means, with respect to a Book-Entry Interest, the
Person who is the owner of such Book-Entry Interest, as reflected on the books
of the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

     "Class A-4 Noteholder" means any Holder of a Class A-4 Note.

     "Class B Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class B [___%] Asset Backed Note.

                                       5
<PAGE>   12

     "Class B Note Interest Rate" means [____%] per annum.

     "Class B Note Owner" means, with respect to a Book-Entry Interest, the
Person who is the owner of such Book-Entry Interest, as reflected on the books
of the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

     "Class B Noteholder" means any Holder of a Class B Note.

     "Class B Noteholders' Principal Payment Amount" with respect to any Payment
Date has the meaning specified in the Transfer and Servicing Agreement.

     "Class C Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class C [___%] Asset Backed Note.

     "Class C Note Interest Rate" means [____%] per annum.

     "Class C Note Owner" means, with respect to a Book-Entry Interest, the
Person who is the owner of such Book-Entry Interest, as reflected on the books
of the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

     "Class C Noteholder" means any Holder of a Class C Note.

     "Class C Noteholders' Principal Payment Amount" with respect to any Payment
Date has the meaning specified in the Transfer and Servicing Agreement.

     "Class D Note" means any Note, substantially in the form of Exhibit D,
designated therein as a Class D Asset Backed Note.

     "Class D Noteholder" means the Holder of any Class D Note.

     "Class D Noteholders' Principal Payment Amount" with respect to any Payment
Date has the meaning specified in the Transfer and Servicing Agreement.

     "Clearing Agency" means an organization registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act.

     "Clearing Agency Participant" means a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects
book-entry transfers and pledges of securities deposited with the Clearing
Agency.

     "Closing Date" means ___________ __, 2000.

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and Treasury Regulations promulgated thereunder.

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<PAGE>   13

     "Collateral" has the meaning specified in the Granting Clause of this
Indenture.

     "Collection Account" means the account by that name established by the
Servicer pursuant to the Transfer and Servicing Agreement and held by the
Trustee.

     "Collections" has the meaning specified in the Transfer and Servicing
Agreement.

     "Contract" means any lease agreement or other contract or agreement pledged
to the Trustee on the Closing Date and identified on the List of Contracts.

     "Corporate Trust Office" means the principal office of the Trustee at which
at any particular time its corporate trust business shall be administered, which
office at date of the execution of this Agreement is located at
_____________________ Attention: _____________________.

     "Default" means any occurrence that is, or with notice or the lapse of time
or both would become, an Event of Default.

     "Definitive Notes" has the meaning specified in Section 2.10.

     "Depository Agreement" means the agreement among the Issuer, the Trustee
and The Depository Trust Company, as the initial Clearing Agency, dated as of
the Closing Date, substantially in the form of Exhibit C.

     "Payment Date" means the 15th day of each calendar month, or, if any such
date is not a Business Day, the next succeeding Business Day, commencing
__________ __, 2000.

     "Event of Default" has the meaning specified in Section 5.01.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Executive Officer" means, with respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
Executive Vice President, any Vice President, the Secretary, Assistant
Secretary, the Treasurer or Assistant Treasurer of such corporation; with
respect to any partnership, any general partner thereof and with respect to any
limited liability company the officers described in the Limited Liability
Company Agreement and each Executive Officer of the Managing Member.

     "Grant" means to mortgage, pledge, bargain, warrant, alienate, remise,
release, convey, assign, transfer, create, and grant a lien upon and a security
interest in and right of set-off against, deposit, set over and confirm pursuant
to this Indenture. A Grant of the Collateral or of any other agreement or
instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the Granting party or otherwise and generally to do
and receive

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<PAGE>   14

anything that the Granting party is or may be entitled to do or receive
thereunder or with respect thereto.

     "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register.

     "Indenture" means this Indenture as amended or supplemented from time to
time.

     "Independent" means, when used with respect to any specified Person, that
the Person (a) is in fact independent of the Issuer, any other obligor upon the
Notes, the Transferor and any Affiliate of any of the foregoing Persons, (b)
does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Transferor or any Affiliate
of any of the foregoing Persons and (c) is not connected with the Issuer, any
such other obligor, the Transferor or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

     "Independent Certificate" means a certificate or opinion to be delivered to
the Trustee under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.01, made by an Independent appraiser
or other expert appointed by an Issuer Order, and such opinion or certificate
shall state that the signer has read the definition of "Independent" in this
Indenture and that the signer is Independent within the meaning thereof.

     "Investor Note Owners" means, collectively, the Class A-1 Note Owners, the
Class A-2 Note Owners, the Class A-3 Note Owners, the Class A-4 Note Owners, the
Class B Note Owners and the Class C Note Owners.

     "Investor Notes" means all Notes except the Class D Notes.

     "Issuer" means Advanta Equipment Receivables Series 2000-__ LLC or any
successor thereto and, for purposes of any provision contained herein and
required by the TIA, each other obligor on the Notes.

     "Issuer Order" and "Issuer Request" means a written order or request signed
in the name of the Issuer by any one of its Authorized Officers and delivered to
the Trustee.

     "List of Contracts" means a printed or electronic list of Contracts,
certified by an Authorized Officer and attached hereto as Exhibit A.

     "Maturity Date" for each Class of Notes means the date specified in Section
2.07 of this Indenture.

     "Note Interest Rate" means the per annum interest rate borne by a Note.

     "Note Register" and "Note Registrar" have the respective meanings specified
in Section 2.04.

     "Notes" means, collectively, the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes, the Class A-4 Notes, the Class B Notes, the Class C Notes and
the Class D Notes.

                                       8
<PAGE>   15

     "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to
the Trustee.

     "Opinion of Counsel" means one or more written opinions of counsel who may,
except as otherwise expressly provided in this Indenture, be employees of or
counsel to the Issuer, the Transferor or any Affiliate thereof and who shall be
satisfactory to the Trustee, and which opinion or opinions shall be addressed to
the Trustee as Trustee, shall comply with any applicable requirements of Section
11.01, and shall be in form and substance reasonably satisfactory to the
Trustee.

     "Outstanding" means, as of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture except:

           (i) Notes theretofore cancelled by the Note Registrar or delivered to
     the Note Registrar for cancellation;

          (ii) Notes or portions thereof the payment for which money in the
     necessary amount has been theretofore deposited with the Trustee or any
     Paying Agent in trust for the Holders of such Notes (provided, however,
     that if such Notes are to be redeemed, notice of such redemption has been
     duly given pursuant to this Indenture or provision therefor, satisfactory
     to the Trustee, has been made); and

         (iii) Notes in exchange for or in lieu of other Notes which have been
     authenticated and delivered pursuant to this Indenture unless proof
     satisfactory to the Trustee is presented that any such Notes are held by a
     bona fide purchaser;

provided that in determining whether the Holders of the requisite Outstanding
Amount of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Basic Document, Notes owned by
the Issuer, any other obligor upon the Notes, the Transferor or any Affiliate of
any of the foregoing Persons shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes that the Trustee actually knows to be so owned
shall be so disregarded; provided, however, that at anytime following an Event
of Default, in determining whether the Holders of the requisite Outstanding
Amount of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Basic Document, Class D Notes
shall be disregarded and deemed not to be Outstanding. Notes so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Notes and that the pledgee is not the Issuer, any other
obligor upon the Notes, the Transferor or any Affiliate of any of the foregoing
Persons. In making any such determination, the Trustee may rely on the
representations of the pledgee and shall not be required to undertake any
independent investigation.

     "Outstanding Amount" means the aggregate principal amount of all Notes, or
a class of Notes, as applicable, Outstanding at the date of determination.

                                       9
<PAGE>   16

     "Paying Agent" means the Trustee or any Person that meets the eligibility
standards for the Trustee specified in Section 6.11 and is authorized by the
Issuer to make the payments to and distributions from the Collection Account and
the Reserve Account, including payment of principal of or interest on the Notes
on behalf of the Issuer.

     "Person" means any individual, corporation, estate, partnership, limited
liability company, joint venture, association, joint stock company, business
trust, trust (including any beneficiary thereof), unincorporated organization or
government or any agency or political subdivision thereof.

     "Predecessor Note" 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 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

     "Proceeding" means any suit in equity, action at law or other judicial or
administrative proceeding.

     "Rating Agency" means _______________ and _______________. If no such
organization or successor is any longer in existence, "Rating Agency" shall be a
nationally recognized statistical rating organization or other comparable Person
designated by the Issuer, notice of which designation shall be given to the
Trustee and the Servicer.

     "Rating Agency Condition" means, with respect to any action, that each
Rating Agency shall have notified the Transferor, the Servicer and the Issuer in
writing that such action will not result in a reduction or withdrawal of the
then current rating of any Class of the Notes.

     "Record Date" means, with respect to a Payment Date or Redemption Date, (i)
if the Notes are held in book-entry form, the close of business on the calendar
day (whether or not such day is a Business Day) immediately preceding such
Payment Date or Redemption Date or (ii) if the Notes are held in definitive
form, the last calendar day (whether or not such day is a Business Day) of the
month preceding the month in which such Payment Date or Redemption Date occurs.

     "Redemption Date" means the Payment Date specified by the Servicer or the
Issuer pursuant to Section 10.01, as applicable.

     "Redemption Price" means in the case of a redemption of the Notes pursuant
to Section 10.01, an amount equal to the principal amount of the Notes redeemed
plus accrued and unpaid interest thereon at the related Note Interest Rate to
but excluding the Redemption Date.

     "Registered Holder" means the Person in whose name a Note is registered in
the Note Register on the applicable Record Date.

     "Related Security" as defined in the Transfer and Servicing Agreement.

                                       10
<PAGE>   17

     "Reserve Account" means the account or accounts by that name established by
the Servicer under Section __ of the Transfer and Servicing Agreement held by
the Trustee pursuant to Section 8.02(a).

     "Responsible Officer" means, with respect to the Trustee, any officer
within the Corporate Trust Office including any Vice President, Managing
Director, Assistant Vice President, Secretary, Assistant Secretary, Treasurer or
Assistant Treasurer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge and familiarity with the
particular subject.

     "Servicer" means Advanta Bank Corp. and any successors thereto.

     "State" means any one of the 50 states of the United States of America or
the District of Columbia.

     "Successor Servicer" has the meaning specified in Section 3.07(e).

     "Transfer and Servicing Agreement" means the Transfer and Servicing
Agreement dated as of ______ __, 2000, among the Issuer and the Transferor, in
its capacity as Transferor and as Servicer.

     "Transferor" means Advanta Bank Corp. and any successor thereto.

     "Trust Estate" means the Collateral and all money, instruments, documents,
securities, contract rights, general intangibles and other property that are
subject or intended to be subject to the lien and security interest of this
Indenture for the benefit of the Noteholders (including, without limitation, all
property and interests Granted to the Trustee), including all proceeds thereof.

     "Trustee" means ___________, a __________ [banking corporation] as Trustee
under this Indenture, or any successor Trustee under this Indenture.

     "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939, as in
force on the date hereof, unless otherwise specifically provided.

     "UCC" means, unless the context otherwise requires, the Uniform Commercial
Code, as in effect in the relevant jurisdiction, as amended from time to time.

     (b) Other Definitional Provisions. (1) Capitalized terms used herein and
not otherwise defined have the meanings assigned to them in the Transfer and
Servicing Agreement.

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

          (3) As used in this Agreement and in any certificate or other document
made or delivered pursuant hereto or thereto, accounting terms not defined in
this Agreement or in any

                                       11
<PAGE>   18

such certificate or other document, and accounting terms partly defined in this
Agreement or in any such certificate or other document to the extent not
defined, shall have the respective meanings given to them under generally
accepted accounting principles. To the extent that the definitions of accounting
terms in this Agreement or in any such certificate or other document are
inconsistent with the meanings of such terms under generally accepted accounting
principles, the definitions contained in this Agreement or in any such
certificate or other document shall control.

          (4) The words "hereof," "herein," "hereunder," and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; Section and Exhibit
references contained in this Agreement are references to Sections and Exhibits
in or to this Agreement unless otherwise specified; and the term "including"
shall mean "including without limitation."

          (5) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

     Section 1.02. Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

     "Commission" means the Securities and Exchange Commission.

     "indenture securities" means the Notes.

     "indenture security holder" means a Noteholder.

     "indenture to be qualified" means this Indenture.

     "Trustee" or "institutional trustee" means the Trustee.

     "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

     All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule have
the meaning assigned to them by such definitions.

     Section 1.03. Calculations of Interest. [Interest on the Class A-1 notes
will be calculated on the basis of actual days and a 360-day year. Interest on
the Class A-2 notes, Class A-3 notes, Class A-4 notes, Class B notes, Class C
notes and Class D notes will be calculated on the basis of a year of 360 days
and twelve 30-day months.]

                                       12
<PAGE>   19

                                   ARTICLE II

                                   THE NOTES

     Section 2.01. Form. The Notes of each Class, together with the Trustee's
certificate of authentication, shall be in substantially the forms set forth in
Exhibit D, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

     The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibit D are part of the terms of this Indenture.

     Section 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

     Notes bearing the manual or facsimile signature of individuals who were at
any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

     The Trustee shall, upon written order of the Transferor, authenticate and
deliver Notes for original issue in an aggregate principal amount of
$___________. The aggregate principal amount of Notes outstanding at any time
may not exceed such amount except as provided in Section 2.05. The Trustee shall
be entitled to conclusively rely upon such written order as authority to so
authenticate and deliver the Notes without further inquiry of any Person.

     Each Note shall be dated the date of its authentication. The Notes shall be
issuable as registered Notes in the minimum denomination of $1,000 and in
integral multiples thereof provided, however, that a single Note of any Class
may be issued in a denomination of less than $1,000.

     No Note shall be entitled to any benefit under this Indenture 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 the manual signature of one of its authorized signatories, and such
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder.

     Section 2.03. Temporary Notes. Pending the preparation of definitive Notes,
the Issuer may execute, and upon receipt of an Issuer Order the Trustee shall
authenticate and deliver, temporary Notes which are printed, lithographed,
typewritten, mimeographed or

                                       13
<PAGE>   20

otherwise produced, of the tenor of the definitive Notes in lieu of which they
are issued and with such variations not inconsistent with the terms of this
Indenture as the officers executing such Notes may determine, as evidenced by
their execution of such Notes.

     If temporary Notes are issued, the Issuer will cause definitive Notes to be
prepared without unreasonable delay. After the preparation of definitive Notes,
the temporary Notes shall be exchangeable for definitive Notes upon surrender of
the temporary Notes at the office or agency of the Issuer to be maintained as
provided in Section 3.02, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Notes, the Issuer shall execute, and
the Trustee shall authenticate and deliver in exchange therefor, a like
principal amount of definitive Notes of authorized denominations. Until so
exchanged, the temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as definitive Notes.

     Section 2.04. Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Trustee shall be the initial "Note Registrar" for the purpose of registering
Notes and transfers of Notes as herein provided. Upon any resignation of any
Note Registrar, the Issuer shall promptly appoint a successor or, if it elects
not to make such an appointment, assume the duties of Note Registrar.

     If a Person other than the Trustee is appointed by the Issuer as Note
Registrar, the Issuer will give the Trustee prompt written notice of the
appointment of such Note Registrar and of the location, and any change in the
location, of the Note Register, and the Trustee shall have the right to inspect
the Note Register at all reasonable times and to obtain copies thereof, and the
Trustee shall have the right to conclusively rely upon a certificate executed on
behalf of the Note Registrar by an Executive Officer thereof as to the names and
addresses of the Holders of the Notes and the principal amounts and number of
such Notes.

     Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.02, if the
requirements of Section 8-401(1) of the UCC are met the Issuer shall execute,
and upon receipt of such surrendered Note the Trustee shall authenticate and the
Noteholder shall obtain from the Trustee, in the name of the designated
transferee or transferees, one or more new Notes of the same Class in any
authorized denominations, of a like aggregate principal amount.

     At the option of the Holder, Notes may be exchanged for other Notes of the
same class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, if the requirements of
Section 8-401(1) of the UCC are met, the Issuer shall execute, and upon receipt
of such surrendered Note the Trustee shall authenticate and the Noteholder shall
obtain from the Trustee, the Notes which the Noteholder making the exchange is
entitled to receive.

     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, as the Notes surrendered
upon such registration of transfer or exchange.

                                       14
<PAGE>   21

     Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Trustee (or with respect to Class D Notes,
in the form of Exhibit E) duly executed by, the Holder thereof or such Holder's
attorney duly authorized in writing, with such signature guaranteed by a
commercial bank or trust company located, or having a correspondent located, in
The City of New York or the city in which the Corporate Trust Office is located,
or by a member firm of a national securities exchange, and such other documents
as the Trustee may require.

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer 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, other than
exchanges pursuant to Section 2.03 or 9.06 not involving any transfer.

     The preceding provisions of this section notwithstanding, the Issuer shall
not be required to make, and the Note Registrar need not register, transfers or
exchanges of Notes for a period of 20 days preceding the due date for any
payment with respect to the Note.

     Section 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Trustee, or the Trustee receives evidence
to its satisfaction of the destruction, loss or theft of any Note, and (ii)
there is delivered to the Trustee such security or indemnity as may be required
by it to hold the Issuer and the Trustee harmless, then, in the absence of
written notice to the Issuer, the Note Registrar or the Trustee that such Note
has been acquired by a bona fide purchaser, and provided that the requirements
of Section 8-405 of the UCC are met, the Issuer shall execute and upon its
written request the Trustee shall authenticate and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement
Note of the same class; provided, however, that if any such destroyed, lost or
stolen Note, but not a mutilated Note, shall have become or within twenty days
shall be due and payable, or shall have been called for redemption, instead of
issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen
Note when so due or payable or upon the Redemption Date without surrender
thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the Issuer
and the Trustee shall be entitled to recover such replacement Note (or such
payment) from the Person to whom it was delivered or any Person taking such
replacement Note from such Person to whom such replacement Note was delivered or
any assignee of such Person, except a bona fide-purchaser, and shall be entitled
to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Trustee in
connection therewith.

     Upon the issuance of any replacement Note under this Section, the Issuer
may require the payment by the Holder of such Note of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other reasonable expenses (including the fees and expenses of the Trustee)
connected therewith.

     Except as set forth in the first paragraph of this Section 2.05, every
replacement Note issued pursuant to this Section in replacement of any
mutilated, destroyed, lost or stolen Note

                                       15
<PAGE>   22

shall constitute an original additional contractual obligation of the Issuer,
whether or not the mutilated, destroyed, lost or stolen Note shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Notes duly issued
hereunder.

     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. Persons Deemed. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the Person in whose name any Note is registered (as of the day
of determination) as the owner of such Note for the purpose of receiving
payments of principal of and interest, if any, 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 2.07. Interest Rates; Maturity Dates; Payment of Principal and
Interest; Defaulted Interest. (a) The Investor Notes shall bear interest from
and including the Closing Date to but excluding the date on which the final
principal payment is made at the following rates:

     --   The Class A-1 Notes shall bear interest at the Class A-1 Note Interest
          Rate;

     --   The Class A-2 Notes shall bear interest at the Class A-2 Note Interest
          Rate;

     --   The Class A-3 Notes shall bear interest at the Class A-3 Note Interest
          Rate;

     --   The Class A-4 Notes shall bear interest at the Class A-4 Note Interest
          Rate;

     --   The Class B Notes shall bear interest at the Class B Note Interest
          Rate; and

     --   The Class C Notes shall bear interest at the Class C Note Interest
          Rate.

     The Class D Notes shall initially not bear interest.

     Principal of the Notes shall be payable on each Payment Date as provided in
the flow of funds set forth in Section ___ of the Transfer and Servicing
Agreement. To the extent not paid prior to such date, the Notes of each class
shall be due and payable on the following dates and such dates shall be the
"Maturity Date" for the respective Class:

                                       16
<PAGE>   23

                    Class                                       Maturity Date
                    -----                                       -------------

                  Class A-1                                   __________________

                  Class A-2                                   __________________

                  Class A-3                                   __________________

                  Class A-4                                   __________________

                  Class B                                     __________________

                  Class C                                     __________________

                  Class D                                     __________________

     Any installment of interest or principal, if any, or any other amount,
payable on any Note which is punctually paid or duly provided for by the Issuer
on the applicable Payment Date shall be paid to the Person in whose name such
Note (or one or more Predecessor Notes) is registered on the Record Date, by
check mailed first-class, postage prepaid to such Person's address as it appears
on the Note Register on such Record Date, (i) except that with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payment will be made by wire
transfer in immediately available funds to the account designated by such
nominee, (ii) except that with respect to [Class D Notes] registered in the name
of the Transferor, payment will be made by wire transfer in immediately
available funds to the account designated by the Transferor and (iii) except for
(A) the final installment of principal payable with respect to such Note on a
Payment Date and (B) the Redemption Price for any Note called for redemption
pursuant to Section 10.01, in each case which shall be payable as provided
below. The funds represented by any such checks returned undelivered shall be
held in accordance with Section 3.03.

     (b) The entire unpaid principal amount of the Notes shall be due and
payable, if not previously paid, on the date on which an Event of Default shall
have occurred and be continuing and the Notes have become due and payable in the
manner provided in Section 5.02. All principal payments on each class of Notes
shall be made pro rata to the Noteholders of such Class entitled thereto. Upon
written notice to the Trustee by the Issuer, the Trustee shall notify the Person
in whose name a Note is registered at the close of business on the second Record
Date preceding the Payment Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be mailed no later than thirty days prior to such final Payment Date and
shall specify that such final installment will be payable only upon presentation
and surrender of such Note and shall specify the place where such Note may be
presented and surrendered for payment of such installment. Notices in connection
with redemptions of Notes shall be mailed to Noteholders as provided in Section
10.02.

     (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the applicable Note Interest Rate in any lawful manner.
The Issuer may pay such defaulted interest to the persons who are Noteholders on
a subsequent special record date, which date shall be fixed or

                                       17
<PAGE>   24

caused to be fixed by the Issuer and shall be at least five Business Days prior
to the payment date. The Issuer shall fix or cause to be fixed any such payment
date, and, at least 15 days before any such special record date, the Issuer
shall mail to each Noteholder a notice that states the special record date, the
payment date and the amount of defaulted interest to be paid.

     Section 2.08. Cancellation. All Notes surrendered for payment, registration
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall, following its receipt
thereof, be promptly cancelled by the Trustee. 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, following its receipt thereof, 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 may be held or
disposed of by the Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be destroyed or returned to it; provided that such Issuer Order
is timely and the Notes have not been previously disposed of by the Trustee.

     Section 2.09. Release of Collateral. Subject to Section 11.01, the Trustee
shall release property from the lien of this Indenture only upon receipt of an
Issuer Request accompanied by an Officer's Certificate, an Opinion of Counsel
and Independent Certificates in accordance with TIAss.ss.314(c) and 314 (d)(1)
or an Opinion of Counsel in lieu of such Independent Certificates to the effect
that the TIA does not require any such Independent Certificates.

     Section 2.10. Book-Entry Interests. The Investor Notes, upon original
issuance, will be issued in the form of a typewritten, word processing system
produced or printed Note or Notes representing the Book-Entry Interests, to be
delivered to The Depository Trust Company, the initial Clearing Agency, by, or
on behalf of, the Issuer. Such Notes shall initially be registered on the Note
Register in the name of Cede & Co., the nominee of the initial Clearing Agency,
and no Class A-1 Note Owner, Class A-2 Note Owner, Class A-3 Note Owner, Class
A-4 Note Owner, Class B Note Owner or Class C Note Owner will receive a
Definitive Note representing such Class A-1 Note Owner, Class A-2 Note Owner,
Class A-3 Note Owner, Class A-4 Note, Class B Note Owner or Class C Note Owner's
interest in such Note, except as provided in Section 2.12. Unless and until
definitive, fully registered Notes (the "Definitive Notes") have been issued to
Class A-1 Note Owner, Class A-2 Note Owner, Class A-3 Note Owner, Class A-4 Note
Owner, Class B Note Owner or Class C Note Owners pursuant to Section 2.12:

           (i) the provisions of this Section shall be in full force and effect;

          (ii) the Note Registrar and the Trustee shall be entitled to deal with
     the Clearing Agency for all purposes of this Indenture (including the
     payment of principal of and interest on the Investor Notes and the giving
     of instructions or directions hereunder) as the sole holder of the Investor
     Notes, and shall have no obligation to the Class A-1 Note Owners, Class A-2
     Note Owners, Class A-3 Note Owners, Class A-4 Note Owners, Class B Note
     Owners or Class C Note Owners;

                                       18
<PAGE>   25

         (iii) to the extent that the provisions of this Section conflict with
     any other provisions of this Indenture, the provisions of this Section
     shall control;

          (iv) the rights of Class A-1 Note Owners, Class A-2 Note Owners, Class
     A-3 Note Owners, Class A-4 Note Owners, Class B Note Owners or Class C Note
     Owners shall be exercised only through the Clearing Agency and shall be
     limited to those established by law and agreements between such Class A-1
     Note Owners, Class A-2 Note Owners, Class A-3 Note Owners, Class A-4 Note
     Owners, Class B Note Owners or Class C Note Owners and the Clearing Agency
     and/or the Clearing Agency Participants pursuant to the Depository
     Agreement. Unless and until Definitive Notes are issued pursuant to Section
     2.12, the initial Clearing Agency will make book-entry transfers among the
     Clearing Agency Participants and receive and transmit payments of principal
     of and interest on the Notes to such Clearing Agency Participants; and

           (v) 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 Outstanding Amount of the Notes, the Clearing
     Agency shall be deemed to represent such percentage only to the extent that
     it has received instructions to such effect from Class A-1 Note Owners,
     Class A-2 Note Owners, Class A-3 Note Owners, Class A-4 Note Owners, Class
     B Note Owners or Class C Note Owners and/or Clearing Agency Participants
     owning or representing, respectively, such required percentage of the
     beneficial interest in the Notes and has delivered such instructions to the
     Trustee.

     Section 2.11. Notices to Clearing Agency. Whenever a notice or other
communication to the Holders of the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes, the Class A-4 Notes, the Class B Notes or the Class C Notes is
required under this Indenture, unless and until Definitive Notes shall have been
issued to Class A-1 Note Owners, Class A-2 Note Owners, Class A-3 Note Owners,
Class A-4 Note Owners, Class B Note Owners or Class C Note Owners pursuant to
Section 2.12, the Trustee shall give all such notices and communications
specified herein to be given to Holders of the Investor Notes to the Clearing
Agency, and shall have no obligation to the Class A-1 Note Owners, Class A-2
Note Owners, Class A-3 Note Owners, Class A-4 Note Owners, Class B Note Owners
or Class C Note Owners.

     Section 2.12. Definitive Notes. (a) The Class D Notes shall be issued in
definitive, fully-registered form and (b) if (i) the Issuer advises the Trustee
in writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to the Investor Notes and the Issuer
is unable to locate a qualified successor, or (ii) the Issuer at its option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Clearing Agency, or (iii) after the occurrence of an Event of
Default or a Servicer Default, Investor Note Owners representing beneficial
interests aggregating a majority of the Outstanding Amount of the Investor Notes
advise the Clearing Agency in writing that the continuation of a book-entry
system through the Clearing Agency is no longer in the best interests of the
Investor Note Owners then the Clearing Agency shall notify all Investor Note
Owners and the Trustee of the occurrence of any such event and of the
availability of Definitive Notes to the Investor Note Owners. Upon surrender to
the Trustee of the Note or Notes representing the Book-Entry Interests by the
Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Trustee shall authenticate the Definitive Notes in accordance
with the

                                       19
<PAGE>   26

instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the Trustee shall be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Notes to Investor Note Owners, the
Trustee shall recognize the Holders of such Definitive Notes as Noteholders.

                                       20
<PAGE>   27

                                  ARTICLE III

                                    COVENANTS

     Section 3.01. Payment of Principal and Interest. The Issuer will duly and
punctually pay the principal of and interest, if any, on the Notes in accordance
with the terms of the Notes and this Indenture. Without limiting the foregoing,
the Issuer will cause amounts to be distributed from the Collection Account on
each Payment Date as provided in Section 8.02(c). Amounts properly withheld
under the Code by any Person from a payment to any Noteholder of interest and/or
principal and/or premium shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

     Section 3.02. Maintenance of Office or Agency. The Issuer will maintain in
the Borough of Manhattan, in the City of New York an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Trustee to
serve as its agent for the foregoing purposes. The Issuer will give prompt
written notice to the Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Trustee with the
address thereof, such surrenders, notices and demands may be made or served at
the Corporate Trust Office, the Trustee shall be entitled to conclusively rely
upon, and the Issuer hereby appoints the Trustee as its agent to receive, all
such surrenders, notices and demands.

     Section 3.03. Money for Payments To Be Held in Trust. As provided in
Section 8.02, all payments of amounts due and payable with respect to any Notes
that are to be made from amounts withdrawn from the Collection Account shall be
made on behalf of the Issuer by the Trustee or by another Paying Agent, and no
amounts so withdrawn from the Collection Account for payments of Notes shall be
paid over to the Issuer except as provided in Section 8.02 of this Indenture.

     The Issuer will cause each Paying Agent other than the Trustee to execute
and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee (and if the Trustee acts as Paying Agent, it hereby so agrees),
subject to the provisions of this Section, that such Paying Agent will:

           (i) 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;

          (ii) give the Trustee written notice of any default by the Issuer of
     which it has actual knowledge (or any other obligor upon the Notes) in the
     making of any payment required to be made with respect to the Notes;

                                       21
<PAGE>   28

         (iii) at any time during the continuance of any such default, upon the
     written request of the Trustee, forthwith pay to the Trustee all sums so
     held in trust by such Paying Agent;

          (iv) immediately resign as a Paying Agent and forthwith pay to the
     Trustee all sums held by it in trust for the payment of Notes if at any
     time it ceases to meet the standards required to be met by a Paying Agent
     at the time of its appointment; and

           (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Notes of any applicable
     withholding taxes imposed thereon and with respect to any applicable
     reporting requirements in connection therewith.

     The Issuer may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the Trustee all sums held in trust by such Paying
Agent, such sums to be held by the Trustee upon the same trusts as those upon
which the sums were held by such Paying Agent; and upon such payment by any
Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

     Subject to applicable laws with respect to escheat of funds, any money held
by the Trustee or any Paying Agent 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 shall be discharged from such trust, and the Trustee
or such Paying Agent, as the case may be, shall give prompt notice of such
occurrence to the Issuer and shall release such money to the Issuer on Issuer
Request; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer (and then only to the extent of the amounts so
paid to the Issuer) for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, shall at the expense and direction of the Issuer
cause to be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to the Issuer. The Trustee shall also adopt and employ, at the expense of
the Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to Holders
whose Notes have been called but have not been surrendered for redemption or
whose right to or interest in moneys due and payable but not claimed is
determinable from the records of the Trustee or of any Paying Agent, at the last
address of record for each such Holder).

     Section 3.04. Existence. The Issuer will keep in full effect its existence,
rights and franchises as a limited liability company under the laws of the State
of Nevada (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall

                                       22
<PAGE>   29

be necessary to protect the validity and enforceability of this Indenture, the
Notes, the Collateral and each other instrument or agreement included in the
Trust Estate.

     Section 3.05. Protection of Trust Estate. The Issuer will from time to time
take all actions necessary (other than taking possession of the original
Contracts and other than perfecting any security interest which it or the
Transferor may have in Financed Equipment with an original cost of $25,000 or
less), including without limitation preparing, executing, delivering and filing
all such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
if applicable, and will take such other action necessary or advisable to:

           (i) maintain or preserve the lien and security interest (and the
     priority thereof) of this Indenture or carry out more effectively the
     purposes hereof;

          (ii) perfect, publish notice of or protect the validity of any Grant
     made or to be made by this Indenture:

         (iii) enforce any of the Collateral; or

          (iv) preserve and defend title to the Trust Estate and the rights of
     the Trustee and the Noteholders in such Trust Estate against the claims of
     all persons and parties.

The Issuer hereby designates the Trustee its agent and attorney-in-fact to
execute any financing statement, continuation statement or other instrument
pursuant to this Section.

     Section 3.06. Opinions as to Trust Estate. On the Closing Date, the Issuer
shall furnish to the Trustee an Opinion of Counsel either stating that, in the
opinion of such counsel, such action has been taken to perfect the lien and
security interest of this Indenture, including without limitation with respect
to the recording and filing of this Indenture, any indentures supplemental
hereto, and any other requisite documents, and with respect to the execution and
filing of any financing statements and continuation statements, as are so
necessary and reciting the details of such action, or stating that, in the
opinion of such counsel, no such action is necessary to maintain the perfection
of such lien and security interest.

     Section 3.07. Performance of Obligations; Servicing of Contracts. (a) The
Issuer will not take any action and will use its best efforts not to permit any
action to be taken by others that would release any Person from any of such
Person's material covenants or obligations under any instrument or agreement
included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture, the Transfer and Servicing Agreement or
such other instrument or agreement.

     (b) The Issuer may contract with other Persons to assist it in performing
its duties under this Indenture, and any performance of such duties by a Person
identified to the Trustee in an Officer's Certificate of the Issuer shall be
deemed to be action taken by the Issuer. Initially, the Issuer has contracted
with the Servicer to assist the Issuer in performing its duties under this
Indenture.

                                       23
<PAGE>   30

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Basic Documents and in the
instruments and agreements included in the Trust Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the Transfer and Servicing Agreement in accordance with and within the time
periods provided for herein and therein; provided that no provision of this
Indenture or the Transfer and Servicing Agreement shall be deemed to require the
filing of any financing statement to perfect any security interest the Issuer or
the transfer may have in any Financed Equipment with an original cost of $25,000
or less. Except as otherwise expressly provided therein, the Issuer shall not
waive, amend, modify, supplement or terminate any Basic Document or any
provision thereof without the written consent of the Trustee or the Holders of a
majority of the Outstanding Amount of the Investor Notes; provided that the
written consent of the Trustee shall be required for any amendment which
increases the obligations of the Servicer.

     (d) If the Issuer shall have knowledge of the occurrence of a Servicer
Default under the Transfer and Servicing Agreement, the Issuer shall promptly
notify the Trustee in writing and the Rating Agencies thereof, and shall specify
in such notice the action, if any, the Issuer is taking with respect to such
default. If a Servicer Default shall arise from the failure of the Servicer to
perform any of its duties or obligations under the Transfer and Servicing
Agreement with respect to the Contracts, the Issuer shall take all reasonable
steps available to it to remedy such failure.

     (e) As promptly as possible after the giving of notice of termination to
the Servicer of the Servicer's rights and powers pursuant to [Section 8.01] of
the Transfer and Servicing Agreement, the Issuer shall appoint a successor
servicer (the "Successor Servicer"), and such Successor Servicer shall accept
its appointment by a written assumption in a form acceptable to the Trustee. In
the event that a Successor Servicer has not been appointed and accepted its
appointment at the time when the Servicer ceases to act as Servicer, the Trustee
without further action shall automatically be appointed the Successor Servicer.
The Trustee may resign as the Servicer by giving written notice of such
resignation to the Issuer and in such event will be released from such duties
and obligations, such release not to be effective until the date a new servicer
enters into a servicing agreement with the Issuer as provided below. Upon
delivery of any such notice to the Issuer, the Issuer shall obtain a new
servicer as the Successor Servicer under the Transfer and Servicing Agreement.
Any Successor Servicer other than the Trustee shall (i) be a corporation having
a net worth of not less than $20,000,000 and whose regular business includes the
servicing of equipment receivables and (ii) enter into a servicing agreement
with the Issuer having substantially the same provisions as the provisions of
the Transfer and Servicing Agreement applicable to the Servicer. If within 30
days after the delivery of the notice referred to above, the Issuer shall not
have obtained such a new servicer, the Trustee may appoint, or may petition a
court of competent jurisdiction to appoint, a Successor Servicer. In connection
with any such appointment, the Trustee may make such arrangements for the
compensation of such successor as it and such successor shall agree, subject to
the limitations set forth below and in the Transfer and Servicing Agreement, and
in accordance with Section [8.02] of the Transfer and Servicing Agreement, the
Issuer shall enter into an agreement with such successor for the servicing of
the Contracts (such agreement to be in form and substance reasonably
satisfactory to the Trustee). Notwithstanding anything else herein to the
contrary, in no event shall the Trustee be liable for any servicing fee or for
any differential in the amount of

                                       24
<PAGE>   31

the servicer fee paid hereunder and the amount necessary to induce any successor
Servicer to act as Successor Servicer under this Agreement and the transactions
set forth or provided for herein. If the Trustee shall succeed to the Servicer's
duties as servicer of the Contracts as provided herein, it shall do so in its
individual capacity and not in its capacity as Trustee and, accordingly, the
provisions of Article VI hereof shall be inapplicable to the Trustee in its
duties as the successor to the Servicer and the servicing of the Contracts. In
case the Trustee shall become a successor to the Servicer under the Transfer and
Servicing Agreement, the Trustee shall be entitled to appoint any one of its
Affiliates to carry out its functions as Servicer (pending appointment of a
Successor Servicer), provided that it shall be fully liable for the actions and
omissions of such Affiliate in such capacity as Successor Servicer.

     (f) Upon any termination of the Servicer's rights and powers pursuant to
the Transfer and Servicing Agreement, the Issuer shall promptly notify the
Trustee in writing. As soon as a Successor Servicer is appointed, the Issuer
shall notify the Trustee in writing of such appointment, specifying in such
notice the name and address of such Successor Servicer.

     (g) Without derogating from the absolute nature of the assignment granted
to the Trustee under this Indenture or the rights of the Trustee hereunder, the
Issuer agrees that it will not, without the prior written consent of the Trustee
or the Holders of a majority in Outstanding Amount of the Investor Notes, amend,
modify, waive, supplement, terminate or surrender, or agree to any amendment,
modification, supplement, termination, waiver or surrender of, the terms of any
Collateral (except to the extent otherwise permitted pursuant to the terms of
the Transfer and Servicing Agreement) or the Basic Documents, or waive timely
performance or observance by the Servicer or the Transferor under the Transfer
and Servicing Agreement; provided, however, that no such amendment shall (i)
except to the extent otherwise provided in the Transfer and Servicing Agreement,
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on Contracts or distributions that are
required to be made for the benefit of the Noteholders or (ii) reduce the
aforesaid percentage of the Notes which are required to consent to any such
amendment, without the consent of the holders of all the Outstanding Notes. If
any such amendment, modification, supplement or waiver shall be so consented to
by the Trustee or such Holders, the Issuer agrees, promptly following a request
by the Trustee to do so, to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as the
Trustee may reasonably deem necessary or appropriate under the circumstances.

     Section 3.08. Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not:

           (i) except as expressly permitted by this Indenture or the Transfer
     and Servicing Agreement, sell, transfer, exchange or otherwise dispose of
     any of the properties or assets of the Issuer, including those included in
     the Trust Estate, unless directed to do so by the Trustee;

          (ii) claim any credit on, or make any deduction from the principal or
     interest payable in respect of, the Notes (other than amounts properly
     withheld from such payments under the Code or applicable state law) or
     assert any claim against any present

                                       25
<PAGE>   32

     or former Noteholder by reason of the payment of the taxes levied or
     assessed upon any part of the Trust Estate;

         (iii) dissolve or liquidate in whole or in part; or

          (iv) (A) permit the validity or effectiveness of this Indenture 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 with respect to the Notes under this
     Indenture except as may be expressly permitted hereby, (B) permit any lien,
     charge, excise, claim, security interest, mortgage or other encumbrance
     (other than the lien of this Indenture) to be created on or extend to or
     otherwise arise upon or burden the Trust Estate or any part thereof or any
     interest therein or the proceeds thereof (other than tax liens, mechanics'
     liens and other liens on a Financed Equipment arising solely as a result of
     an action or omission of the related Obligor) or (C) permit the lien of
     this Indenture not to constitute a valid first priority perfected security
     interest in the Trust Estate (other than with respect to any such tax,
     mechanics' or other lien).

     Section 3.09. Statements as to Compliance. The Issuer will deliver to the
Trustee or cause the Servicer to deliver to the Trustee within 90 days after the
end of each fiscal year of the Issuer the Officer's Certificate described in
Section 4.10 of the Transfer and Servicing Agreement.

     Section 3.10. Issuer May Consolidate, etc., Only on Certain Terms. The
Issuer shall not consolidate or merge with or into any other Person, unless

           (i) the Person (if other than the Issuer) formed by or surviving such
     consolidation or merger shall be a Person organized and existing under the
     laws of the United States of America or any State and shall expressly
     assume, by an indenture supplemental hereto, executed and delivered to the
     Trustee the payment of the principal of and interest on all Notes as
     provided in this Indenture and in the Notes and the performance or
     observance of every agreement and covenant of this Indenture on the part of
     the Issuer to be performed or observed, all as provided herein;

          (ii) immediately after giving effect to such transaction, no Default
     or Event of Default shall have occurred and be continuing;

         (iii) the Rating Agency Condition shall have been satisfied with
     respect to such transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall
     have delivered copies thereof to the Trustee) to the effect that such
     transaction will not have any material adverse tax consequence to any
     Noteholder;

           (v) any action as is necessary to maintain the lien and security
     interest created by this Indenture shall have been taken; and

                                       26
<PAGE>   33

          (vi) the Issuer shall have delivered to the Trustee an Officer's
     Certificate and an Opinion of Counsel each stating that such consolidation
     or merger and such supplemental indenture comply with this Article III and
     that all conditions precedent herein provided for relating to such
     transaction have been complied with (including any filing required by the
     Exchange Act).

     (b) The Issuer shall not convey all or substantially all of its properties
     or assets to any Person, unless

           (i) the Person that acquires by conveyance or transfer the properties
     and assets of the Issuer shall be a United States citizen or a Person
     organized and existing under the laws of the United States of America or
     any State, expressly assumes, by an indenture supplemental hereto, executed
     and delivered to the Trustee the due and punctual payment of the principal
     of and interest on all Notes and the performance or observance of every
     agreement and covenant of this Indenture on the part of the Issuer to be
     performed or observed, all as provided herein, expressly agrees by means of
     such supplemental indenture that all right, title and interest so conveyed
     or transferred shall be subject and subordinate to the rights of Holders of
     the Notes, unless otherwise provided in such supplemental indenture, unless
     expressly agreed in such supplemental indenture, expressly agrees to
     indemnify, defend and hold harmless the Issuer against and from any loss,
     liability or expense arising under or related to this Indenture and the
     Notes and expressly agrees by means of such supplemental indenture that
     such Person (or if a group of Persons, then one specified Person) shall
     make all filings with the Commission (and any other appropriate Person)
     required by the Exchange Act in connection with the Notes;

          (ii) immediately after giving effect to such transaction, no Default
     or Event of Default shall have occurred and be continuing:

         (iii) the Rating Agency Condition shall have been satisfied with
     respect to such transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall
     have delivered copies thereof to the Trustee) to the effect that such
     transaction will not have any material adverse tax consequence to any
     Noteholder;

           (v) any action as is necessary to maintain the lien and security
     interest created by this Indenture shall have been taken; and

          (vi) the Issuer shall have delivered to the Trustee an Officer's
     Certificate and an Opinion of Counsel each stating that such conveyance or
     transfer and such supplemental indenture comply with this Article III and
     that all conditions precedent herein provided for relating to such
     transaction have been complied with (including any filing required by the
     Exchange Act).

     Section 3.11. Successor or Transferee. Upon any consolidation or merger of
the Issuer in accordance with Section 3.10(a), the Person formed by or surviving
such consolidation or merger (if other than the Issuer) shall succeed to, and be
substituted for, and may exercise

                                       27
<PAGE>   34

every right and power of, the Issuer under this Indenture with the same effect
as if such Person had been named as the Issuer herein.

     Upon a conveyance or transfer of all the assets and properties of the
Issuer pursuant to Section 3.10(b), Advanta Equipment Receivables Series
2000-___ LLC will be released from every covenant and agreement of this
Indenture to be observed or performed on the part of the Issuer with respect to
the Notes immediately upon the delivery to the Trustee of the Officer's
Certificate and Opinion of Counsel specified in Section 3.10(b)(vi) stating that
Advanta Equipment Receivables Series 2000-___ LLC is to be so released.

     Section 3.12. No Other Business. The Issuer shall not engage in any
business other than the purposes set forth in the Basic Documents including this
Indenture.

     Section 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except as expressly provided for pursuant to the terms of the Basic
Documents and the Notes.

     Section 3.14. Servicer's Obligations. The Issuer shall cause the Servicer
to comply with all of its obligations under the Basic Documents.

     Section 3.15. Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by the Transfer and Servicing Agreement or this Indenture, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

     Section 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

     Section 3.17. Notice of Events of Default. The Issuer agrees to give the
Trustee and the Rating Agencies prompt written notice of each Event of Default
hereunder and written notice of each default on the part of the Servicer or the
Transferor of its obligations under the Transfer and Servicing Agreement
immediately after obtaining knowledge of any such default.

     Section 3.18. Further Instruments and Acts. Upon request of the Trustee,
the Issuer will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

                                       28
<PAGE>   35

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     Section 4.01. Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect with respect to the Notes (except as to rights of
registration of transfer and exchange, substitution of mutilated, destroyed,
lost or stolen Notes, rights of Noteholders to receive payments of principal
thereof and interest thereon, Sections 3.03, 3.04, 3.05, 3.08, 3.10, 3.12 and
3.13, the rights, obligations and immunities of the Trustee hereunder (including
the rights of the Trustee under Section 6.07 and the obligations of the Trustee
under Section 4.02) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Trustee payable to all or any
of them for a period of one year after clauses (A), (B) and (C) below have
occurred), and the Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes, when

     (A)  either

          (1) all Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been replaced or
paid as provided in Section 2.05 and (ii) 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 3.03) have been delivered to the Trustee for cancellation;
or

          (2) all Notes not theretofore delivered to the Trustee for
cancellation:

                (i) have become due and payable;

               (ii) [will become due and payable at (A) the Maturity Date with
          respect to the Class A-1 Notes, (B) the Maturity Date with respect to
          the Class A-2 Notes, (C) the Maturity Date with respect to the Class
          A-3 Notes, (D) the Maturity Date with respect to the Class A-4 Notes,
          (E) the Maturity Date with respect to the Class B Notes, (F) the
          Maturity Date with respect to the Class C Notes and (G) the Maturity
          Date with respect to the Class D Notes]; or

              (iii) are to be called for redemption within one year under
          arrangements satisfactory to the Trustee for the giving of notice of
          redemption by the Trustee in the name, and at the expense, of the
          Issuer;

     and the Issuer, in the case of (i), (ii) or (iii) above, has irrevocably
     deposited or caused to be irrevocably deposited with the Trustee cash or
     direct obligations of or obligations guaranteed by the United States of
     America (which will mature prior to the date such amounts are payable), in
     trust for such purpose, in an amount sufficient to pay and discharge the
     entire indebtedness on such Notes not theretofore delivered to the Trustee
     for cancellation when due to the Maturity Date for the Class A-1 Notes, the
     Maturity Date for the Class A-2 Notes, the Maturity Date for the Class A-4
     Notes, the Maturity Date for the Class B Notes, the Maturity Date for the
     Class C Notes and the Maturity

                                       29
<PAGE>   36

     Date for the Class D Notes or the Redemption Date (if Notes shall have been
     called for redemption pursuant to Section 10.01), as the case may be;

     (B)  the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer; and

     (C)  the Issuer has delivered to the Trustee an Officer's Certificate, an
Opinion of Counsel and (if required by the TIA or the Trustee) an Independent
Certificate from a firm of certified public accountants, each meeting the
applicable requirements of Section 11.01(a) and each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with.

     Section 4.02. Application of Trust Money. All moneys deposited with the
Trustee pursuant to Section 4.01 hereof shall be held in trust and applied by
it, in accordance with the provisions of the Notes, the Transfer and Servicing
Agreement or this Indenture, to the payment, either directly or through any
Paying Agent, as the Trustee may determine, to the Holders of the particular
Notes for the payment or redemption of which such moneys have been deposited
with the Trustee, of all sums due and to become due thereon for principal and
interest; provided such moneys need not be segregated from other funds except to
the extent required herein or in the Transfer and Servicing Agreement or
required by law.

     Section 4.03. Repayment of Moneys Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
moneys then held by any Paying Agent other than the Trustee under the provisions
of this Indenture with respect to such Notes shall, upon demand of the Issuer,
be paid to the Trustee to be held and applied according to Section 3.03, and
thereupon such Paying Agent shall be released from all further liability with
respect to such moneys.

                                       30
<PAGE>   37

                                   ARTICLE V

                                    REMEDIES

     Section 5.01. Events of Default. "Event of Default", wherever used herein,
means any one of the following events (whatever the reason for such 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 any interest on any Note when the same
     becomes due and payable and such default shall continue for a period of
     five days; or

          (ii) default in the payment of the full amount of principal of any
     Class on or before the Maturity Date for such Class; or

          (iii) default in the observance or performance of any covenant or
     agreement of the Issuer made in this Indenture (other than a covenant or
     agreement, a default in the observance or performance of which is elsewhere
     in this Section specifically dealt with), or any representation or warranty
     of the Issuer made in this Indenture proving to have been incorrect in any
     material respect as of the time when the same shall have been made, and
     such default shall continue or not be cured, or the circumstance or
     condition in respect of which such representation or warranty was incorrect
     shall not have been eliminated or otherwise cured, for a period of 30 days
     after there shall have been given, by registered or certified mail, to the
     Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at
     least 25% of the Outstanding Amount of the Investor Notes, a written notice
     specifying such default or incorrect representation or warranty and
     requiring it to be remedied and stating that such notice is a "Notice of
     Default" hereunder; or

          (iv) the filing of a decree or order for relief by a court having
     jurisdiction in the premises in respect of the Issuer or the Transferor or
     any substantial part of the Trust Estate in an involuntary case under any
     applicable federal or state bankruptcy, insolvency or other similar law now
     or hereafter in effect, or appointing a receiver, liquidator, assignee,
     custodian, trustee, sequestrator or similar official for the Issuer or for
     any substantial part of the Trust Estate, or ordering the winding-up or
     liquidation of the Issuer's affairs, and such decree or order shall remain
     unstayed and in effect for a period of 90 consecutive days; or

          (v) the commencement by the Issuer or the Transferor of a voluntary
     case under any applicable federal or state bankruptcy, insolvency or other
     similar law now or hereafter in effect, or the consent by the Issuer or the
     Transferor to the entry of an order for relief in an involuntary case under
     any such law, or the consent by the Issuer to the appointment or taking
     possession by a receiver, liquidator, assignee, custodian, trustee,
     sequestrator, conservator or similar official of the Issuer or for any
     substantial part of the Trust Estate, or the making by the Issuer of any
     general assignment for the benefit of creditors, or the failure by the
     Issuer generally to pay, or admit in writing its inability to pay, its
     debts as

                                       31
<PAGE>   38

     such debts become due, or the taking of action by the Issuer in furtherance
     of any of the foregoing.

     The Issuer shall deliver to the Trustee, within five days after the
occurrence thereof, written notice in the form of an Officer's Certificate of
any event which with the giving of notice and the lapse of time would become an
Event of Default under clause (iii) or clause (iv), its status and what action
the Issuer is taking or proposes to take with respect thereto.

     Section 5.02. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default described in Section 5.01(iv) or Section 5.01(v) occurs, then
the Notes shall without any action on the part of the Trustee or any Noteholder
automatically become due and payable. If any other Event of Default should occur
and be continuing, then and in every such case the Trustee may, or if directed
by the Holders of Notes representing not less than a majority of the Outstanding
Amount of the Investor Notes, shall declare all the Notes to be immediately due
and payable, by a notice in writing to the Issuer (and to the Trustee if
declared by Noteholders), and upon any such declaration the unpaid principal
amount of the Notes, together with accrued and unpaid interest thereon through
the date of acceleration, shall become immediately due and payable.

     At any time after the Notes have been accelerated, but before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article V provided, the Holders of Notes representing not
less than a majority of the Outstanding Amount of the Investor Notes, 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 payments of principal of and interest on all Notes and all
     other amounts that would then be due hereunder or upon such Notes if the
     Event of Default giving rise to such acceleration had not occurred; and

          (B) all sums paid or advanced by the Trustee hereunder and the
     reasonable compensation, expenses, disbursements and advances of the
     Trustee and its agents and counsel; and

          (ii) all Events of Default, other than the nonpayment of the principal
     of the Notes that has become due solely by such acceleration, have been
     cured or waived as provided in Section 5.12.

     No such rescission shall affect any subsequent default or impair any right
consequent thereto.

     Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Trustee. The Issuer covenants that if (i) default is made in the payment of any
interest on any Note when the same becomes due and payable, and such default
continues for a period of five days, or (ii) default is made in the payment of
the principal of any Class of Notes on the Maturity Date of such Class when the
same becomes due and payable, the Issuer will, upon demand of the Trustee, pay
to it, for the benefit of the Holders of the Notes, the whole amount then due
and payable on such Notes for principal and interest, with interest upon the
overdue principal, and, to

                                       32
<PAGE>   39

the extent payment at such rate of interest shall be legally enforceable, upon
overdue installments of interest, at the applicable Note Interest Rate borne by
the respective Classes of Notes, and in addition thereto will pay such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee and its agents and counsel.

     (a) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a Proceeding for the collection of the sums so due and unpaid, and may
prosecute such Proceeding to judgment or final decree, and may enforce the same
against the Issuer or other obligor upon such Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the moneys adjudged or decreed to be payable.

     (b) If an Event of Default occurs and is continuing, the Trustee may, as
more particularly provided in Section 5.04, in its discretion, proceed to
protect and enforce its rights and the rights of the Noteholders, by such
appropriate Proceedings as the Trustee shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy or legal or equitable right vested
in the Trustee by this Indenture or by law.

     (c) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Trustee, irrespective of whether the principal of any
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
pursuant to the provisions of this Section, shall be entitled and empowered, by
intervention in such Proceedings or otherwise:

           (i) to file and prove a claim or claims for the whole amount of
     principal and interest owing and unpaid in respect of the Notes 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 reasonable
     compensation to the Trustee and each predecessor Trustee, and their
     respective agents, attorneys and counsel, and for reimbursement of all
     expenses and liabilities incurred, and all advances made, by the Trustee
     and each predecessor Trustee, except as a result of negligence or bad
     faith) and of the Noteholders allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on
     behalf of the Holders of Notes in any election of a trustee, a standby
     trustee or Person performing similar functions in any such Proceedings;

                                       33
<PAGE>   40

         (iii) to collect and receive any moneys or other property payable or
     deliverable on any such claims and to distribute all amounts received with
     respect to the claims of the Noteholders and of the Trustee on their
     behalf; and

          (iv) 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 or the
     Holders of Notes allowed in any judicial proceedings relative to the
     Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Trustee, and, in the event that the Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee,
each predecessor Trustee and their respective agents, attorneys and counsel, and
all other expenses and liabilities incurred, and all advances made, by the
Trustee and each predecessor Trustee except as a result of negligence or bad
faith.

     (d) Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Noteholder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Noteholder in any such proceeding
except, as aforesaid, to vote for the election of a trustee in bankruptcy or
similar Person.

     (e) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Trustee without the possession of
any of the Notes or the production thereof in any trial or other Proceedings
relative thereto, and any such action or Proceedings instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment, subject to the payment of the expenses, disbursements and
compensation of the Trustee, each predecessor Trustee and their respective
agents and attorneys, shall be for the benefit of the Holders of the Notes as
provided herein.

     (f) In any Proceedings brought by the Trustee (and also any Proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party), the Trustee shall be held to represent all the
Holders of the Notes, and it shall not be necessary to make any Noteholder a
party to any such Proceedings.

     Section 5.04. Remedies; Priorities. (a) If an Event of Default shall have
occurred and be continuing, the Trustee may do one or more of the following
(subject to Section 5.05):

          (i) institute Proceedings in its own name and as trustee of an express
     trust for the collection of all amounts then payable on the Notes or under
     this Indenture with respect thereto, whether by declaration or otherwise,
     enforce any judgment obtained, and collect from the Issuer and any other
     obligor upon such Notes moneys adjudged due;

          (ii) institute Proceedings from time to time for the complete or
     partial foreclosure of this Indenture with respect to the Trust Estate;

                                       34
<PAGE>   41

          (iii) exercise any remedies of a secured party under the UCC and take
     any other appropriate action to protect and enforce the rights and remedies
     of the Trustee and the Holders of the Notes; and

          (iv) in the event that all the Notes have been declared due and
     payable pursuant to Section 5.02, sell the Trust Estate or any portion
     thereof or rights or interest therein, at one or more public or private
     sales called and conducted in any manner permitted by law;

provided, however, that the Trustee may not sell or otherwise liquidate the
Trust Estate following an Event of Default, other than an Event of Default
described in Section 5.01(i) or (ii) unless (A) the Holders of 100% of the
Outstanding Amount of the Notes consent thereto, (B) the Trustee determines that
the proceeds of such sale or liquidation distributable to the Noteholders are
sufficient to discharge in full all amounts then due and unpaid upon such Notes
for principal and interest or (C) the Trustee determines that the Trust Estate
will not continue to provide sufficient funds for the payment of principal of
and interest on the Notes as they would have become due if the Notes had not
been declared due and payable, and the Trustee obtains the consent of Holders of
at least 66-2/3% of the Outstanding Amount of the Investor Notes. In determining
such sufficiency or insufficiency with respect to clause (B) and (C), the
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

     (b) If the Trustee collects any money or property pursuant to this Article
V following the acceleration of the maturities of the Notes pursuant to Section
5.02 (so long as such declaration shall not have been rescinded or annulled), it
shall pay out the money or property (other than the Excluded Amounts, unpaid
Servicing Fees, which may be retained by the Servicer free and clear of the lien
of this Indenture) in the following order:

          FIRST: to the Trustee for any and all amounts due and owing pursuant
     to Section 6.07;

          SECOND: to Holders of the Class A-1 Notes, Class A-2 Notes, Class A-3
     Notes and Class A-4 Notes for amounts due and unpaid on the for interest,
     ratably among Class A Notes, without preference or priority of any kind,
     according to the amounts due and payable on the Class A Notes for interest;

          THIRD: to Holders of the Class A-1 Notes for amounts due and unpaid on
     the Class A-1 Notes for principal, ratably, without preference or priority
     of any kind, according to the amounts due and payable on the Class A-1
     Notes for principal;

          FOURTH: to Holders of the Class A-2 Notes for amounts due and unpaid
     on the Class A-2 Notes for principal, ratably, without preference or
     priority of any kind, according to the amounts due and payable on the Class
     A-2 Notes for principal;

                                       35
<PAGE>   42

          FIFTH: to Holders of the Class A-3 Notes for amounts due and unpaid on
     the Class A-3 Notes for principal, ratably, without preference or priority
     of any kind, according to the amounts due and payable on the Class A-3
     Notes for principal;

          SIXTH: to Holders of the Class A-4 Notes for amounts due and unpaid on
     the Class A-4 Notes for principal, ratably, without preference or priority
     of any kind, according to the amounts due and payable on the Class A-4
     Notes for principal;

          SEVENTH: to Holders of the Class B Notes for amounts due and unpaid on
     the Class B Notes for interest, ratably, without preference or priority of
     any kind, according to the amounts due and payable on the Class B notes for
     interest;

          EIGHTH: to Holders of the Class B Notes for amounts due and unpaid on
     the Class B Notes for principal, ratably, without preference or priority of
     any kind, according to the amounts due and payable on the Class B Notes for
     principal;

          NINTH: to Holders of the Class C Notes for amounts due and unpaid on
     the Class C Notes for interest, ratably, without preference or priority of
     any kind, according to the amounts due and payable on the Class C notes for
     interest;

          TENTH: to Holders of the Class C Notes for amounts due and unpaid on
     the Class C Notes for principal, ratably, without preference or priority of
     any kind, according to the amounts due and payable on the Class C Notes for
     principal;

          ELEVENTH: to Holders of the Class D Notes for amounts due and unpaid
     on the Class D Notes for principal, ratably, without preference or priority
     of any kind, according to the amounts due and payable on the Class D Notes
     for principal; and

          FINALLY: to the Issuer for distribution.

     The Trustee may fix a record date and payment date for any payment to
Noteholders pursuant to this Section. At least 15 days before such record date,
the Issuer shall mail to each Noteholder and the Trustee a notice that states
the record date, the payment date and the amount to be paid.

     Section 5.05. Optional Preservation of the Contracts. If the Notes have
been declared to be due and payable under Section 5.02 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Trustee may, but need not, elect to maintain possession of the
Trust Estate. It is the desire of the parties hereto and the Noteholders that
there be at all times sufficient funds for the payment of principal of and
interest on the Notes, and the Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Estate. In
determining whether to maintain possession of the Trust Estate, the Trustee may,
but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Trust Estate for such purpose.

                                       36
<PAGE>   43

     Section 5.06. Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

           (i) such Holder has previously given written notice to the Trustee of
     a continuing Event of Default;

          (ii) the Holders of not less than 25% of the Outstanding Amount of the
     Investor Notes have made written request to the Trustee to institute such
     Proceeding in respect of such Event of Default in its own name as Trustee
     hereunder;

         (iii) Holder or Holders have offered to the Trustee an indemnity
     against the costs, expenses and liabilities to be incurred in complying
     with such request in form and substance satisfactory to the Trustee;

          (iv) the Trustee for 60 days after its receipt of such notice, request
     and offer of indemnity has failed to institute such Proceedings; and

           (v) no direction inconsistent with such written request has been
     given to the Trustee during such 60-day period by the Holders of a majority
     of the Outstanding Amount of the Notes;

it being understood and intended that no one or more Holders of Notes 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
Holders of Notes or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

     In the event the Trustee shall receive conflicting or inconsistent requests
and indemnity from two or more groups of Holders of Notes, each representing
less than a majority of the Outstanding Amount of the Investor Notes, the
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture.

     Section 5.07. Unconditional Rights of Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder.

     Section 5.08. 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 the Issuer, the Trustee and the Noteholders shall,
subject to any determination in such Proceeding, 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.

                                       37
<PAGE>   44

     Section 5.09. Rights and Remedies Cumulative. 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.

     Section 5.10. Delay or Omission Not a Waiver. No delay or omission of the
Trustee or any Holder of any Note to exercise any right or remedy accruing upon
any Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such Default or Event of Default or an acquiescence
therein. Every right and remedy given by this Article V 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 5.11. Control by Noteholders. The Holders of a majority of the
Outstanding Amount of the Investor Notes shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to
the Trustee with respect to the Notes or exercising any trust or power conferred
on the Trustee; provided that

           (i) such direction shall not be in conflict with any rule of law or
     with this Indenture;

          (ii) subject to the express terms of Section 5.04, any direction to
     the Trustee to sell or liquidate the Trust Estate shall be by the Holders
     of Notes representing not less than 75% of the Outstanding Amount of the
     Notes;

         (iii) if the conditions set forth in Section 5.05 have been satisfied
     and the Trustee elects to retain the Trust Estate pursuant to such Section,
     then any direction to the Trustee by Holders of Notes representing less
     than 75% of the Outstanding Amount of the Notes to sell or liquidate the
     Trust Estate shall be of no force and effect; and

          (iv) the Trustee may take any other action deemed proper by the
     Trustee that is not inconsistent with such direction;

provided, however, that, subject to Section 6.01, the Trustee need not take any
action that it determines might involve it in liability or might materially
adversely affect the rights of any Noteholders not consenting to such action.

     Section 5.12. Waiver of Past Default. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the
Holders of Notes of not less than a majority of the Outstanding Amount of the
Investor Notes may waive any past Default or Event of Default and its
consequences except a Default (a) in payment of principal of or interest on any
of the Notes or (b) in respect of a covenant or provision hereof which cannot be
modified or amended without the consent of the Holder of each Note. In the case
of any such waiver, the Issuer, the Trustee and the Holders of the Notes shall
be restored to their former positions and rights hereunder, respectively;
provided that no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereto.

                                       38
<PAGE>   45

     Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; provided that no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto.

     Section 5.13. Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by such Holder's acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, 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, suffered or omitted by it as Trustee,
the filing by any party litigant in such suit of an undertaking to pay the costs
of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; provided that the provisions of this Section shall not
apply to (a) any suit instituted by the Trustee, (b) any suit instituted by any
Noteholder, or group of Noteholders, in each case holding in the aggregate more
than 10% of the Outstanding Amount of the Investor Notes or (c) any suit
instituted by any Noteholder for the enforcement of the payment of principal of
or interest on any Note on or after the respective due dates expressed in such
Note and in this Indenture (or, in the case of redemption, on or after the
Redemption Date).

     Section 5.14. 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, that 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 5.15. Action on Notes. The Trustee's right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the
seeking, obtaining or application of any other relief under or with respect to
this Indenture. Neither the lien of this Indenture nor any rights or remedies of
the Trustee or the Noteholders shall be impaired by the recovery of any judgment
by the Trustee against the Issuer or by the levy of any execution under such
judgment upon any portion of the Trust Estate or upon any of the assets of the
Issuer. Any money or property collected by the Trustee shall be applied in
accordance with Section 5.04(b).

     Section 5.16. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Trustee to do so and at the Transferor's
expense, the Issuer agrees to take all such lawful action as the Trustee may
request to compel or secure the performance and observance by the Transferor, in
its capacity as Transferor and as Servicer of its obligations to the Issuer
under or in connection with the Transfer and Servicing Agreement in accordance
with the terms thereof, and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer under or in connection with the
Transfer and Servicing Agreement to the extent and in the manner directed by the
Trustee, including the transmission of notices of default on the part of the
Transferor or in its capacity as Servicer thereunder and the

                                       39
<PAGE>   46

institution of legal or administrative actions or proceedings to compel or
secure performance by the Transferor of its obligations under the Transfer and
Servicing Agreement, both in its capacity as Transferor and as Servicer.

     (b) If an Event of Default has occurred and is continuing, the Trustee may,
and, at the direction (which direction shall be in writing) of the Holders of at
least 66-2/3% of the Outstanding Amount of the Investor Notes shall, exercise
all rights, remedies, powers, privileges and claims of the Issuer against the
Transferor or under or in connection with the Transfer and Servicing Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Transferor of its obligations to the Issuer thereunder and
to give any consent, request, notice, direction, approval, extension or waiver
under the Transfer and Servicing Agreement, and any right of the Issuer to take
such action shall be suspended.

                                       40
<PAGE>   47
                                   ARTICLE VI

                                   THE TRUSTEE

     Section 6.01. Duties of Trustee. (a) If an Event of Default has occurred
and is continuing, the Trustee shall exercise the 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
such person's own affairs.

     (b) Except during the continuance of an Event of Default:

         (i) the Trustee undertakes to perform such duties and only such duties
     as are specifically set forth in this Indenture and no implied covenants or
     obligations (including, without limitation, to exercise any discretionary
     powers granted by this Indenture) shall be read into this Indenture against
     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 or opinions furnished to
     the Trustee pursuant to the requirements of this Indenture; provided,
     however, the Trustee shall examine the certificates and opinions to
     determine whether or not they conform on their face to the requirements of
     this Indenture.

     The Trustee shall not be required to determine, confirm or recalculate the
information contained in the Servicer's Certificate delivered to it pursuant to
the Transfer and Servicing Agreement.

     (c) The Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:

         (i) this paragraph does not limit the effect of subsection 6.01(b);

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

         (iii) the Trustee shall not be liable with respect to any action it
     takes or omits to take in good faith in accordance with the direction of
     any requisite majority of Noteholders authorized to give direction to the
     Trustee pursuant to this Indenture.

     (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to subsections 6.01(a), (b) and (c);

     (e) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with the Issuer.

                                       41

<PAGE>   48

     (f) Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law or the terms of this Indenture or the
Transfer and Servicing Agreement.

     (g) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur 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 to believe that repayments of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

     (h) 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 and to the provisions of the TIA.

     Section 6.02. Rights of Trustee. (a) The Trustee may conclusively rely on
any document believed by it to be genuine and to have been signed or presented
by the proper person. The Trustee need not investigate any fact or matter stated
in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an
Officer's Certificate or an Opinion of Counsel. The Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on the
Officer's Certificate or Opinion of Counsel.

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

     (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers; provided, however, that the Trustee's conduct does not constitute
willful misconduct, negligence or bad faith.

     (e) The Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel.

     (f) 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, consent entitlement order, approval or other
paper or document.

     (g) The Trustee shall not be charged with knowledge of any Event of
Default unless either (1) a Responsible Officer of the Trustee shall have
actual knowledge or (2) the Trustee shall have received notice thereof from the
Issuer or a Holder.

     Section 6.03. Individual Rights of Trustee. The Trustee in its individual
or any other capacity may become the owner or pledgee of Notes and may otherwise
deal with the Issuer or its affiliates with the same rights it would have if it
were not Trustee. Any Paying Agent, Note

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<PAGE>   49

Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Trustee, in its capacity as Trustee, must comply with Sections
6.11 and 6.12.

     Section 6.04. Trustee's Disclaimer. The Trustee shall not be responsible
for and makes no representation as to the validity or adequacy of the Trust
Estate, this Indenture or the Notes, it shall not be accountable for the
Issuer's use of the proceeds from the Notes, and it shall not be responsible for
any statement of the Issuer in the Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee's
certificate of authentication.

     Section 6.05. Notice of Defaults. If a Default occurs and is continuing and
if it is actually known to a Responsible Officer of the Trustee, the Trustee
shall mail to each Noteholder notice of the Default within 90 days after it
occurs. Except in the case of a Default in payment of principal of or interest
on any Note (including payments pursuant to the mandatory redemption provisions
of such Note), the Trustee may withhold the notice if and so long as a committee
of its Responsible Officers in good faith determines that withholding the notice
is in the interests of Noteholders.

     Section 6.06. Reports by Trustee to Holders. The Trustee shall, to the
extent provided to it by the Servicer pursuant to Section 5.06 of the Transfer
and Servicing Agreement, deliver to each Noteholder upon written request and at
the expense of such Noteholder, such information as may be required to enable
such holder to prepare its federal and state income tax returns, which shall
include the information required to be distributed pursuant to the second to
last paragraph of Section 5.06 of the Transfer and Servicing Agreement. The
Trustee shall not be required to determine, confirm or recompute any such
information provided to it.

     Section 6.07. Compensation and Indemnity. The Issuer shall pay to the
Trustee from time to time reasonable compensation for its services. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Issuer shall reimburse the Trustee for all
reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee's agents, counsel, accountants and experts. The Issuer
shall indemnify and hold harmless the Trustee and its officers, directors,
employees and agents (retained by the Trustee in order to perform its duties
pursuant to this Indenture) against any and all loss, liability or expense
(including the fees of either in-house counsel or outside counsel, but not both)
incurred by it in connection with the administration of the Trust Estate and the
performance of its duties hereunder. The Trustee shall notify the Issuer
promptly of any claim for which it may seek indemnity. Failure by the Trustee to
so notify the Issuer shall not relieve the Issuer of its obligations hereunder
unless such loss, liability or expense could have been avoided with such prompt
notification and then only to the extent of such loss, expense or liability
which could have been so avoided. The Issuer shall defend, any claim against the
Trustee, the Trustee may have separate counsel and if it does, the Issuer shall
pay the fees and expenses of such counsel. The Issuer need not reimburse any
expense or indemnify against any loss, liability or expense incurred by the
Trustee through the Trustee's own willful misconduct, negligence or bad faith.

                                       43

<PAGE>   50

     The Issuer's payment obligations to the Trustee pursuant to this Section
shall survive the discharge of this Indenture or the earlier resignation or
removal of the Trustee. When the Trustee incurs expenses after the occurrence of
a Default specified in Section 5.01(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of
the United States Code or any other applicable federal or state bankruptcy,
insolvency or similar law.

     Notwithstanding anything herein to the contrary, the Trustee's right to
enforce any of the Issuer's payment obligations pursuant to this Section 6.07
shall be subject to the provisions of Section 11.17.

     Section 6.08. Replacement of Trustee. No resignation or removal of the
Trustee and no appointment of a successor Trustee shall become effective until
the acceptance of appointment by the successor Trustee pursuant to this Section
6.08. The Trustee may resign at any time by so notifying the Issuer. The Holders
of a majority in Outstanding Amount of the Notes may remove the Trustee by so
notifying the Trustee in writing and may appoint a successor Trustee. The Issuer
shall remove the Trustee if:

             (i)  the Trustee fails to comply with Section 6.11;

             (ii) the Trustee shall consent to the appointment of a conservator
     or receiver or liquidator in any insolvency, readjustment of debt,
     marshalling of assets and liabilities or similar proceedings of or
     relating to the Trustee or all or substantially all of its property, or a
     decree or order of a court or agency or supervisory authority having
     jurisdiction in the premises for the appointment of a conservator or
     receiver or liquidator in any insolvency, readjustment of debt,
     marshalling of assets and liabilities or similar proceedings, or for the
     winding-up or liquidation of its affairs, shall have been entered against
     the Trustee; or the Trustee shall admit in writing its inability to pay
     its debts generally as they become due, file a petition to take advantage
     of any applicable insolvency or reorganization statute, make an assignment
     for the benefit of its creditors or voluntarily suspend payment of its
     obligations; or

             (iii) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason (the Trustee in such event being referred to herein as
the retiring Trustee), the Issuer shall promptly appoint a successor Trustee,
which successor shall be reasonably acceptable to the Transferor.

     A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Issuer. Thereupon the resignation or removal
of the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Noteholders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee.

     If a successor Trustee does not take office within 45 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Issuer or the
Holders of not less than a majority in

                                       44

<PAGE>   51

Outstanding Amount of the Notes may petition any court of competent jurisdiction
for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 6.11, any Noteholder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

     Notwithstanding the replacement of the Trustee pursuant to this Section,
the Issuer's obligations under Section 6.07 shall continue for the benefit of
the retiring Trustee.

     Section 6.09. Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking
association without any further act shall be the successor Trustee provided that
such corporation or banking association shall be otherwise qualified and
eligible under Section 6.11.

     In case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Notes shall have been authenticated but not delivered, any
such successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to
the Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Trustee; and in all such cases
such certificates shall have the full force which it is anywhere in the Notes or
in this Indenture provided that the certificate of the Trustee shall have.

     Section 6.10. Appointment of Co-Trustee or Separate Trustee. (a)
Notwithstanding any other provisions of this Indenture, at any time, for the
purpose of meeting any legal requirement of any jurisdiction, the Trustee shall
have the power and may execute and deliver all instruments to appoint one or
more Persons reasonably acceptable to the Issuer to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust Estate, and to vest in such Person or Persons, in such capacity and for
the benefit of the Noteholders, such title to the Trust Estate, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Trustee may consider necessary or
desirable. No co-trustee or separate trustee hereunder shall be required to meet
the terms of eligibility as a successor trustee under Section 6.11 and no notice
to Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08 hereof.

     (b) Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

         (i) all rights, powers, duties and obligations conferred or imposed
     upon the Trustee shall be conferred or imposed upon and exercised or
     performed by the Trustee and such separate trustee or co-trustee jointly
     (it being understood that such separate trustee or co-trustee is not
     authorized to act separately without the Trustee joining in such act),
     except to the extent that under any law of any jurisdiction in which any
     particular act or acts are to be performed the Trustee shall be incompetent
     or unqualified to perform such act or acts, in which event such rights,
     powers, duties and obligations shall be

                                       45

<PAGE>   52

     exercised and performed singly by such separate trustee or co-trustee, but
     solely at the direction of the Trustee;

         (ii) no trustee hereunder shall be personally liable by reason of any
     act or omission of any other trustee hereunder; and

         (iii) the Trustee may at any time accept the resignation of or remove
     any separate trustee or co-trustee.

     (c) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VI. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Trustee or separately, as
may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.

     (d) Any separate trustee or co-trustee may at any time constitute the
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

     Section 6.11. Eligibility; Disqualification. The Trustee shall at all times
satisfy the requirements of TIA Section 310(a). The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition and have a long-term deposit rating
of at least A3 from Moody's or otherwise be acceptable to Moody's and a
long-term deposit rating of at least A- from S&P or otherwise be acceptable to
S&P. The Trustee shall comply with TIA Section 310(b), including the optional
provision permitted by the second sentence of TIA Section 310(b)(9); provided,
however, that there shall be excluded from the operation of TIA Section
310(b)(1) any indenture or indentures under which other securities of the issuer
are outstanding if the requirements for such exclusion set forth in TIA Section
310(b)(1) are met.

     Section 6.12. Preferential Collection of Claims Against. The Trustee shall
comply with TIA Section 311(a), excluding any creditor relationship listed in
TIA Section 311(b). A Trustee who has resigned or been removed shall be subject
to TIA Section 311(a) to the extent indicated.

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<PAGE>   53

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

     Section 7.01. Issuer To Furnish Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Trustee (a) not more
than five days after the earlier of (i) each Record Date and (ii) three months
after the last Record Date, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders of Notes as of such Record
Date, (b) at such other times as the Trustee may request in writing, within 30
days after receipt by the Issuer of any such request, a list of similar form and
content as of a date not more than 10 days prior to the time such list is
furnished; provided, however, that so long as the Trustee is the Note Registrar,
no such list shall be required to be furnished.

     Section 7.02. Preservation of Information; Communications to Noteholders.
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Holders of Notes contained in the
most recent list furnished to the Trustee as provided in Section 7.01 and the
names and addresses of Holders of Notes received by the Trustee in its capacity
as Note Registrar. The Trustee may destroy any list furnished to it as provided
in such Section 7.01 upon receipt of a new list so furnished.

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

     (c) The Issuer, the Trustee and the Note Registrar shall have the
protection of TIA Section 312(c).

     Section 7.03. Reports by Issuer.  (a)  The Issuer shall:

         (i) file with the Trustee, within 15 days after the Issuer is required
     to file the same 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 from time to time by rules and
     regulations prescribe) which the Issuer may be required to file with the
     Commission pursuant to Section 13 or 15(d) of the Exchange Act;

         (ii) file with the Trustee and the Commission in accordance with rules
     and regulations prescribed from time to time by the Commission such
     additional information, documents and reports with respect to compliance by
     the Issuer with the conditions and covenants of this Indenture as may be
     required from time to time by such rules and regulations; and

         (iii) supply to the Trustee (and the Trustee shall transmit by mail to
     all Noteholders described in TIA Section 313(c)) such summaries of any
     information, documents and reports required to be filed by the Issuer
     pursuant to clauses (i) and (ii) of this Section 7.03(a) as may be required
     by rules and regulations prescribed from time to time by the Commission.

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<PAGE>   54

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

     Section 7.04. Reports by Trustee. If required by TIA Section 313(a), within
60 days after each March 31 beginning with March 31, 2000, the Trustee shall
mail to each Noteholder as required by TIA Section 313(c) a brief report dated
as of such date that complies with TIA Section 313(a). The Trustee also shall
comply with TIA Section 313(b).

     A copy of each report at the time of its mailing to Noteholders shall be
filed by the Trustee with the Commission and each stock exchange, if any, on
which the Notes are listed. The Issuer shall notify the Trustee in writing if
and when the Notes are listed on any stock exchange.

                                       48

<PAGE>   55

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     Section 8.01. Collection of Money. 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
Estate, the Trustee may take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of
appropriate Proceedings. 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 V.

     Section 8.02. Collection and Reserve Accounts. On or prior to the Closing
Date, the Issuer shall cause the Servicer to establish and maintain, in the
name of the Trustee, for the benefit of the Noteholders the Collection Account
as provided in Section 5.01 of the Transfer and Servicing Agreement and for the
benefit of the Holders of the Investor Notes, the Reserve Account as provided
in Section 5.01 of the Transfer Servicing Agreement.

     On each Payment Date and Redemption Date, the Trustee shall distribute
from the Collection Account funds in the amounts, for the purpose and in the
priority set forth in Section 5.04 of the Transfer and Servicing Agreement.

     Section 8.03.  General Provisions Regarding Accounts.  (a) So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Collection Account and Reserve Account shall be
invested in Eligible Investments and reinvested by the Trustee upon Issuer
Order, subject to the provisions of Section 5.01(b) of the Transfer and
Servicing Agreement (which Issuer Order may be upon direction of the Servicer).
All income or other gain from investments of moneys deposited in the Reserve
Account shall be deposited by the Trustee in the Collection Account, and any
loss resulting from such investments shall be charged to such account. The
Issuer will not direct the Trustee to make any investment of any funds or to
sell any investment held in any of the Reserve Account unless the security
interest granted and perfected in such account will continue to be perfected in
such investment or the proceeds of such sale.

     (b) Subject to Section 6.01(c), the Trustee shall not in any way be held
liable by reason of any insufficiency in the Collection Account and Reserve
Account resulting from any loss on any Eligible Investment included therein
pursuant to the terms of the Basic Documents except for losses attributable to
the Trustee's failure to make payments on such Eligible Investments issued by
the Trustee, in its commercial capacity as principal obligor and not as
trustee, in accordance with their terms. In no event shall the Trustee be
liable for the selection of Eligible Investments or for investment losses
incurred thereon (except in the case of gross negligence of the Trustee). The
Trustee shall have no liability in respect of losses incurred as a result of
the liquidation of any Eligible Investment prior to its stated maturity or the
failure of the

                                       49

<PAGE>   56

Issuer to provide timely written investment direction (except in the case of
gross negligence of the Trustee).

     (c) If (i) the Issuer shall have failed to give investment directions for
any funds on deposit in the Collection Account and Reserve Account to the
Trustee by 12:00 noon New York Time (or such other time as may be agreed in
writing by the Issuer and Trustee) on any Business Day; or (ii) a Default or
Event of Default shall have occurred and be continuing with respect to the
Notes but the Notes shall not have been declared due and payable pursuant to
Section 5.02, or, if such Notes shall have been declared due and payable
following an Event of Default and amounts collected or receivable from the
Trust Estate are being applied in accordance with Section 5.05; then the
Trustee shall, to the fullest extent practicable, invest and reinvest funds in
the Collection Account and Reserve Account in Eligible Investments of the same
type as the Trustee was most recently directed to invest such funds and
maturing prior to the succeeding Payment Date in accordance with Section 5.01
of the Transfer and Servicing Agreement.

     Section 8.04. Release of Trust Estate.  (a) Subject to the payment of its
fees and expenses pursuant to Section 6.07, the Trustee may, and when required
by the provisions of this Indenture shall, execute instruments to release
property from the lien of this Indenture, or convey the Trustee's interest in
the same, in a manner and under circumstances that are not inconsistent with
the provisions of this Indenture. No party relying upon an instrument executed
by the Trustee as provided in this Article VIII 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.

     (b) The Trustee shall, at such time as there are no Notes Outstanding and
all sums due the Trustee pursuant to Section 6.07 have been paid, release any
remaining portion of the Trust Estate that secured the Notes from the lien of
this Indenture and release to the Issuer or any other Person entitled thereto
any funds then on deposit in the Collection Account and Reserve Account. The
Trustee shall release property from the lien of this Indenture pursuant to this
Section 8.04(b) only upon receipt of an Issuer Request accompanied by an
Officer's Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA Sections 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.01.

     (c) Notwithstanding anything to the contrary in this Indenture or the
Transfer and Servicing Agreement, immediately prior to the release of any
portion of the Trust Estate or any funds on deposit in the Collection Account
and Reserve Account pursuant to this Indenture, the Trustee shall remit to the
Transferor for its own account any funds that, upon such release, would
otherwise be remitted to the Issuer.

     Section 8.05. Opinion of Counsel.  The Trustee shall receive at least
seven days' written notice when requested by the Issuer to take any action
pursuant to Section 8.04(a), accompanied by copies of any instruments involved,
and the Trustee shall also require, as a condition to such action, an Opinion
of Counsel, in form and substance reasonably satisfactory to the Trustee,
stating the legal effect of any such action, outlining the steps required to
complete the same, and concluding that all conditions precedent to the taking
of such action have been complied with and such action will not materially and
adversely impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair

                                       50

<PAGE>   57

value of the Trust Estate. The Trustee and counsel rendering any such opinion
may conclusively rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Trustee in
connection with any such action.

                                       51
<PAGE>   58

                                   ARTICLE IX

                            SUPPLEMENTAL INDENTURES

     Section 9.01. Supplemental Indentures Without Consent of Noteholders. (a)
Without the consent of the Holders of any Notes but with prior notice to the
Rating Agencies, the Issuer and the Trustee, when authorized by an Issuer Order,
at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the TIA as in
force at the date of the execution thereof), in form reasonably satisfactory to
the Trustee, for any of the following purposes:

         (i) to correct or amplify the description of any property at any time
     subject to the lien of this Indenture, or better to assure, convey and
     confirm unto the Trustee any property subject or required to be subjected
     to the lien of this Indenture, or to subject to the lien of this Indenture
     additional property;

         (ii) to evidence the succession, in compliance with the applicable
     provisions hereof, of another Person to the Issuer, and the assumption by
     any such successor of the covenants of the Issuer herein and in the Notes
     contained;

         (iii) to add to the covenants of the Issuer, for the benefit of the
     Holders of the Notes, or to surrender any right or power herein conferred
     upon the Issuer;

         (iv) to convey, transfer, assign, mortgage or pledge any property to
     or with the Trustee;

         (v) to cure any ambiguity, to correct or supplement any provision
     herein or in any supplemental indenture which may be inconsistent with any
     other provision herein or in any supplemental indenture or to make any
     other provisions with respect to matters or questions arising under this
     Indenture or in any supplemental indenture; provided that such action shall
     not, as evidenced by an Opinion of Counsel, adversely affect in any
     material respect the interests of the Holders of the Notes;

         (vi) to evidence and provide for the acceptance of the appointment
     hereunder by a successor trustee with respect to the Notes and to add to or
     change any of the provisions of this Indenture as shall be necessary to
     facilitate the administration of the trusts hereunder by more than one
     trustee, pursuant to the requirements of Article VI; or

         (vii) to modify, eliminate or add to the provisions of this Indenture
     to such extent as shall be necessary, as evidenced by an Opinion of
     Counsel, to effect the qualification of this Indenture under the TIA or
     under any similar federal statute hereafter enacted and to add to this
     Indenture such other provisions as may be expressly required by the TIA.

     The Trustee is hereby authorized to join in the execution of any such
supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

                                       52
<PAGE>   59

     (b) The Issuer and the Trustee, when authorized by an Issuer Order, may,
also without the consent of any of the Holders of the Notes but with prior
notice to the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholder.

     Section 9.02. Supplemental Indentures with Consent of Noteholders. The
Issuer and the Trustee, when authorized by an Issuer Order, also may, with prior
notice to the Rating Agencies and with the consent of the Holders of not less
than a majority of the Outstanding Amount of the Notes, by Act of such Holders
delivered to the Issuer and the Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Note affected thereby:

         (i) change the date of payment of any installment of principal of or
     interest on any Note, change the order of priority of payments to be made
     on any Note or reduce the principal amount thereof, the interest rate
     thereon or the Redemption Price with respect thereto, change the provisions
     of this Indenture relating to the application of collections on, or the
     proceeds of the sale of, the Trust Estate to payment of principal of or
     interest on the Notes, or change any place of payment where, or the coin or
     currency in which, any Note or the interest thereon is payable, or impair
     the right to institute suit for the enforcement of the provisions of this
     Indenture requiring the application of funds available therefor, as
     provided in Article V, to the payment of any such amount due on the Notes
     on or after the respective due dates thereof (or, in the case of
     redemption, on or after the Redemption Date);

         (ii) reduce the percentage of the Outstanding Amount of the Notes, the
     consent of the Holders of which is required for any such supplemental
     indenture, or the consent of the Holders of which is required for any
     waiver of compliance with certain provisions of this Indenture or certain
     defaults hereunder and their consequences provided for in this Indenture;

         (iii) modify or alter the provisions of the proviso to the definition
     of the term "Outstanding";

         (iv) reduce the percentage of the Outstanding Amount of the Investor
     Notes required to direct the Trustee to direct the Issuer to sell or
     liquidate the Trust Estate pursuant to Section 5.04;

         (v) modify any provision of this Section 9.02 except to increase any
     percentage specified herein or to provide that certain additional
     provisions of this Indenture or the Basic Documents cannot be modified or
     waived without the consent of the Holder of each Outstanding Note affected
     thereby;

                                       53
<PAGE>   60

         (vi) modify any of the provisions of this Indenture in such manner as
     to affect the calculation of the amount of any payment of interest due on
     any Note on any Payment Date or the calculation of the amount of principal
     to be paid on any Payment Date or the amount to be paid to any Class on any
     Payment Date (including the calculation of any of the individual components
     of such calculations); or

         (vii) permit the creation of any lien ranking prior to or on a parity
     with the lien of this Indenture with respect to any part of the Trust
     Estate or, except as otherwise permitted or contemplated herein, terminate
     the lien of this Indenture on any property at any time subject hereto or
     deprive the Holder of any Note of the security provided by the lien of this
     Indenture.

     It shall not be necessary for any Act of Noteholders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to this Section, the Trustee shall mail to the
Holders of the Notes to which such amendment or supplemental indenture relates a
notice setting forth in general terms the substance of such supplemental
indenture. Any failure of the Trustee to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such supplemental indenture.

     Section 9.03. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Trustee shall be entitled to receive, and subject to
Sections 6.01 and 6.02, shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture that affects the Trustee's own
rights, duties, liabilities or immunities under this Indenture or otherwise.

     Section 9.04. Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and be deemed to be modified and amended in accordance therewith with respect
to the Notes affected thereby, and the respective rights, limitations of rights,
obligations, duties, liabilities and immunities under this Indenture of the
Trustee, the Issuer and the Holders of the Notes shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     Section 9.05. Conformity With Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of the TIA as then in effect so long as this
Indenture shall then be qualified under the TIA.

                                       54
<PAGE>   61

     Section 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Trustee shall, bear a
notation in form approved by the Trustee as to any matter provided for in such
supplemental indenture. If the Issuer or the Trustee shall so determine, new
Notes so modified as to conform, in the opinion of the Trustee and the Issuer,
to any such supplemental indenture may be prepared and executed by the Issuer
and authenticated and delivered by the Trustee in exchange for Outstanding
Notes.

                                       55
<PAGE>   62

                                   ARTICLE X

                               REDEMPTION OF NOTES

     Section 10.01. Redemption. (a) On any Payment Date following any
Calculation Date as of which the Aggregate Contract Principal Balance is less
than ten percent 10% of the Initial Aggregate Contract Principal Balance, the
Servicer shall have the option to cause the redemption of the Notes by
depositing with the Trustee the sum of (i) the Outstanding Amount (after giving
effect to the payment of any principal on such Payment Date) and (ii) the Class
A-1 Note Interest, Class A-2 Note Interest, Class A-3 Note Interest, Class A-4
Note Interest, Class B Note Interest and Class C Note Interest due on such
Payment Date. Upon receipt of such amounts and all amounts then owed to the
Trustee, the Trustee shall (x) make the final payment in full of the Outstanding
Amount and all accrued and unpaid interest to the Noteholders and (y) release
any remaining Trust Estate to the Issuer as determined by the Servicer and
delivered in writing to the Trustee 20 days prior to the Redemption Date.

     (b) The Class A-4 Notes may be redeemed ("Class A-4 Special Redemption") on
any Payment Date at the option of the Issuer at a price equal to the sum of (i)
the then Class A-4 Principal Balance, accrued and unpaid interest thereon and
(ii) the Class A-4 Special Redemption Premium as determined by the Servicer and
delivered in writing to the Trustee 20 days prior to the Redemption Date.

     The Class A-4 Special Redemption Premium will equal the excess, if any,
discounted as described below, of (i) the amount of interest that would accrue
on the aggregate outstanding principal balance of the Class A-4 Notes at the
Class A-4 Interest Rate during the period beginning on and including the Payment
Date on which such Class A-4 Special Redemption Premium is required to be paid
to the Class A-4 Noteholders to but excluding the Class A-4 Maturity Date, over
(ii) the amount of interest that would have accrued on the aggregate outstanding
Class A-4 Principal Balance over the same period at a per annum rate of interest
equal to the bond equivalent yield to maturity on the Determination Date
preceding such Payment Date of a United States Treasury security, which is
trading in the public securities market, maturing on a date closest to the date
equal to the remaining average life of the Class A-4 Notes minus 0.5%. Such
excess shall be discounted to the present value to such Payment Date at the
applicable yield described in clause (ii) above. For purposes of this paragraph
only, (i) the Class A-4 Principal Balance upon which interest will be deemed to
accrue, and (ii) the average weighted life of the Class A-4 Notes, shall be
determined based upon the amortization of the Aggregate Contract Principal
Balance remaining at such Payment Date at a rate of 6.0% conditional payment
rate and no losses.

     If the Class A-4 Notes are redeemed pursuant to a Class A-4 Special
Redemption, the Class A-4 Notes will be deemed to have been repurchased by the
Obligors. In such an event, the Obligors will be entitled to receive payments of
principal and interest on the Class A-4 Notes, and the Class A-4 Principal
Balance will thereafter continue to amortize as provided in this Series 1999-1
Supplement.

     Section 10.02. Form of Redemption Notice. Notice of redemption under
Section 10.01 shall be given by the Trustee by first-class mail, postage
prepaid, mailed not less than ten and not

                                       56
<PAGE>   63

more than 30 days prior to the applicable Redemption Date to each Holder of
Notes to be redeemed as of the close of business on the Record Date preceding
the applicable Redemption Date, at such Holder's address appearing in the Note
Register.

     All notices of redemption shall state:

         (i) the Redemption Date;

         (ii) the Redemption Price; and

         (iii) the place where such Notes are to be surrendered for payment of
     the Redemption Price (which shall be the office or agency of the Issuer to
     be maintained as provided in Section 3.02).

     Notice of redemption of the Notes shall be given 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 any Note shall not impair or affect the
validity of the redemption of any other Note.

     Section 10.03. Notes Payable on Redemption Date. The Notes or portions
thereof to be redeemed shall, following notice of redemption as required by
Section 10.02 (in the case of redemption pursuant to Section 10.01), on the
Redemption Date become due and payable at the Redemption Price and (unless the
Issuer shall default in the payment of the Redemption Price) no interest shall
accrue on the Redemption Price for any period after the date to which accrued
interest is calculated for purposes of calculating the Redemption Price.

                                       57
<PAGE>   64
                                   ARTICLE XI

                                  MISCELLANEOUS

     Section 11.01. Compliance Certificates and Opinions etc. (a) Upon any
application or request by the Issuer to the Trustee to take any action under any
provision of this Indenture, the Issuer shall furnish to the Trustee (i) an
Officer's Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with,
(ii) an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with and (iii) (if required by
the TIA) an Independent Certificate from a firm of certified public accountants
meeting the applicable requirements of this Section, except that, in the case of
any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

         (i) a statement that each signatory of such certificate or opinion has
     read or has caused to be read such covenant or condition and the
     definitions herein relating thereto;

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

         (iii) a statement that, in the opinion of each such signatory, such
     signatory has made such examination or investigation as is necessary to
     enable such signatory 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, in the opinion of each such signatory,
     such condition or covenant has been complied with.

     (b) (i) Prior to the deposit of any Collateral or other property or
securities with the Trustee that is to be made the basis for the release of any
property or securities subject to the lien of this Indenture, the Issuer shall,
in addition to any obligation imposed in Section 11.01(a) or elsewhere in this
Indenture, furnish to the Trustee an Officer's Certificate certifying or stating
the opinion of each person signing such certificate as to the fair value (within
90 days of such deposit) to the Issuer of the Collateral or other property or
securities to be so deposited.

         (ii) Whenever the Issuer is required to furnish to the Trustee an
     Officer's Certificate certifying or stating the opinion of any signer
     thereof as to the matters described in clause (i) above, the Issuer shall
     also deliver to the Trustee an Independent Certificate as to the same
     matters, if the fair value to the Issuer of the securities to be so
     deposited and of all other such securities made the basis of any such
     withdrawal or release since the commencement of the then-current fiscal
     year of the Issuer, as set forth in the certificates delivered pursuant to
     clause (i) above and this clause (ii), is 10% or

                                       58
<PAGE>   65

     more of the Outstanding Amount of the Notes, but such a certificate need
     not be furnished with respect to any securities so deposited if the fair
     value thereof to the Issuer as set forth in the related Officer's
     Certificate is less than $25,000 or less than one percent of the
     Outstanding Amount of the Notes.

         (iii) Other than with respect to the release of any [Acquired
     Contracts] or [Liquidated Contracts] whenever any property or securities
     are to be released from the lien of this Indenture, the Issuer shall also
     furnish to the Trustee an Officer's Certificate certifying or stating the
     opinion of each person signing such certificate as to the fair value
     (within 90 days of such release) of the property or securities proposed to
     be released and stating that in the opinion of such person the proposed
     release will not impair the security under this Indenture in contravention
     of the provisions hereof.

         (iv) Whenever the Issuer is required to furnish to the Trustee an
     Officer's Certificate certifying or stating the opinion of any signer
     thereof as to the matters described in clause (iii) above, the Issuer shall
     also furnish to the Trustee an Independent Certificate as to the same
     matters if the fair value of the property or securities and of all other
     property, other than [Acquired Contracts] and [Liquidated Contracts], or
     securities released from the lien of this Indenture since the commencement
     of the then current calendar year, as set forth in the certificates
     required by clause (iii) above and this clause (iv), equals 10% or more of
     the Outstanding Amount of the Notes, but such certificate need not be
     furnished in the case of any release of property or securities if the fair
     value thereof as set forth in the related Officer's Certificate is less
     than $25,000 or less than one percent of the then Outstanding Amount of the
     Notes.

         (v) Notwithstanding Section 2.09 or any other provision of this
     Section, the Issuer may (A) collect, liquidate, sell or otherwise dispose
     of Contracts and Financed Equipment as and to the extent permitted or
     required by the Basic Documents and (B) make cash payments out of the
     Collection Account and Reserve Account as and to the extent permitted or
     required by the Basic Documents.

     Section 11.02. 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 certificate or opinion of an Authorized Officer of the Issuer 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 certificate of an Authorized Officer or Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer, the
Transferor or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Servicer, the

                                       59
<PAGE>   66

Transferor, the Issuer, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

     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, they may, but need not, be consolidated and
form one instrument.

     Whenever in this Indenture, 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 the Issuer's 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 Article
VI.

     Section 11.03. Acts of Noteholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture 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, and, where it is hereby expressly required, to the
Issuer. 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 and (subject to Section 6.01) conclusive in
favor of the Trustee and the Issuer, if made in the manner provided in this
Section.

     (b) The fact and date of the execution by any person of any such instrument
or writing may be proved in any manner that the Trustee deems sufficient.

     (c) The ownership of Notes shall be proved by the Note Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Notes shall bind the Holder of every Note
issued upon the registration 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 thereon, whether or not notation of such action is made
upon such Note.

     Section 11.04. Notices, etc. to Trustee, Issuer and Rating Agencies. Any
request, demand, authorization, direction, notice, consent, waiver or Act of
Noteholders or other documents provided or permitted by this Indenture to be
made upon, given or furnished to or filed with:

                                       60
<PAGE>   67

     (a) the Trustee by any Noteholder or by the Issuer shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or with
the Trustee and received at its Corporate Trust Office, or

     (b) the Issuer by the Trustee or by any Noteholder shall be sufficient for
every purpose hereunder if in writing and mailed, first-class, postage prepaid,
to the Issuer addressed to: Advanta Equipment Receivables Series 2000-___ LLC,
as Issuer _________________________________, Attention: _______________________.
The Issuer shall promptly transmit any notice received by it from the
Noteholders to the Trustee.

     (c) the Rating Agencies by the Issuer or the Trustee shall be sufficient
for every purpose hereunder if in writing, personally delivered or mailed by
certified mail, return receipt requested to (i) in the case of
_________________, at the following address: _______________________ and (ii) in
the case of _____________________, at the following address:
_______________________, Attention of _____________________; or as to each of
the foregoing, at such other address as shall be designated by written notice to
the other parties.

     Section 11.05. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at such Noteholder's address as it appears on the Note Register, not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice. In any case where notice to Noteholders is given
by mail, neither the failure to mail such notice nor any defect in any notice so
mailed to any particular Noteholder shall affect the sufficiency of such notice
with respect to other Noteholders, and any notice that is mailed in the manner
herein provided shall conclusively be presumed to have been duly given.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any 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 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 a waiver.

     In case, by reason of the suspension of regular mail service as a result of
a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.

     Where this Indenture provides for notice to the Rating Agencies, failure to
give such notice shall not affect any other rights or obligations created
hereunder and shall not under any circumstance constitute a Default or Event of
Default.

     Section 11.06. Alternate Payment and Notice Provisions. Notwithstanding any
provision of this Indenture or any of the Notes to the contrary, to the extent
reasonably satisfactory to the Trustee, the Issuer may enter into any agreement
with any Holder of a Note providing for a method of payment, or notice by the
Trustee or any Paying Agent to such Holder,

                                       61
<PAGE>   68

that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer will furnish to the Trustee a copy of each such
agreement and the Trustee will cause payments to be made and notices to be given
in accordance with such agreements.

     Section 11.07. Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this indenture by any of the provisions of the TIA, such required
provision shall control.

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

     Section 11.08. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     Section 11.09. Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed or not.

     All covenants and agreements of the Trustee in this Indenture shall bind
its successors, co-trustees and agents of the Trustee.

     Section 11.10. Separability. In case any provision in this Indenture 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 11.11. Benefits of Indenture. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders, and any other party
secured hereunder, and any other Person with an ownership interest in any part
of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     Section 11.12. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

     Section 11.13. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 11.14. 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.

                                       62
<PAGE>   69

     Section 11.15. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Trustee or any other counsel reasonably acceptable
to the Trustee) to the effect that such recording is necessary either for the
protection of the Noteholders or any other Person secured hereunder or for the
enforcement of any right or remedy granted to the Trustee under this Indenture.

     Section 11.16. Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in
connection herewith or therewith, against (i) the Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent, officer, director, employee or agent of the
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Trustee or of any successor or assign of the Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Trustee has no such obligations in their individual
capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

     Section 11.17. No Petition. The Trustee (in its capacity as Trustee), by
entering into this Indenture, and each Noteholder, by accepting a Note, hereby
covenant and agree that they will not at any time institute against the
Transferor, or voluntarily join in any institution against the Transferor of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, this Indenture or any of the Basic Documents.

     Section 11.18. Inspection. The Issuer agrees that, on 5 days prior notice,
it will permit any representative of the Trustee, during the Issuer's normal
business hours, to examine all the books of account, records, reports, and other
papers of the Issuer, to make copies and extracts therefrom, to cause such books
to be audited by Independent certified public accountants, and to discuss the
Issuer's affairs, finances and accounts with the Issuer's officers, employees,
and Independent certified public accountants, all at such reasonable times and
as often as may be reasonably requested. The Trustee shall, and shall cause its
representatives, to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the Trustee
may reasonably determine that such disclosure is consistent with its obligations
hereunder.

     Section 11.19. Restrictions on Transfer of Class D Notes. To the fullest
extent permitted by applicable law, the Class D Notes (or any interest therein)
may not be transferred by the initial Holder of the Class D Notes to any Person.

     Section 11.20. Tax Treatment. Each Class A-1 Noteholder, Class A-2
Noteholder, Class A-3 Noteholder, Class A-4 Noteholder, Class B Noteholder and
Class C Noteholder, by acceptance of their Note, and each holder of a beneficial
interest in a Class A-1 Note, Class A-2 Note, Class A-3 Note, Class A-4 Note,
Class B Note and Class C Note, by the acquisition of a

                                       63
<PAGE>   70

beneficial interest therein, agree to treat the Class A-1 Notes, Class A-2
Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C Notes as
indebtedness of the Transferor for applicable federal, state, and local income
and franchise tax law and for purposes of any other tax imposed on or measured
by income.

                                       64
<PAGE>   71

     IN WITNESS WHEREOF, the Issuer and the Trustee have caused this Indenture
to be duly executed by their respective officers, thereunto duly authorized, all
as of the day and year first above written.

                                    ADVANTA EQUIPMENT RECEIVABLES
                                      SERIES 2000-___ LLC

                                    By:
                                    Name:
                                    Title:

                                    ------------------------------------
                                        not in its individual capacity
                                        but solely as Trustee,

                                    By:
                                    Name:
                                    Title:

                                       65
<PAGE>   72

-----------------     )
                      ) ss.:
                      )

     BEFORE ME, the undersigned authority, a Notary Public in and for said
County and State, on this day personally appeared _________________ known to me
to be the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said
_________________ banking corporation and that he executed the same as the
corporation for the purpose and consideration therein stated.

     GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of _______________,
2000.

                                    ---------------------------------
                                    Notary Public

                                    [Seal]

My commission expires:

-------------------------

                                       66
<PAGE>   73
                                                                       EXHIBIT A

                                LIST OF CONTRACTS

                                      A-1
<PAGE>   74

                                                                       EXHIBIT B

                    FORM OF TRANSFER AND SERVICING AGREEMENT

                                      B-1
<PAGE>   75

                                                                       EXHIBIT C

                          FORM OF DEPOSITORY AGREEMENT

                                      C-1
<PAGE>   76

                                                                      EXHIBIT D

             FORM OF CLASS [A-1] [A-2] [A-3] [A-4] [B] [C] [D] NOTE

REGISTERED                                                  $_________________ *

No. ______

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP  NO.___________

     [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE 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.]**

     [TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE CLASS D NOTES (OR
ANY INTEREST THEREIN) MAY NOT BE TRANSFERRED BY THE INITIAL HOLDER OF THE CLASS
D NOTES TO ANY PERSON.]***

     THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT
IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE TRANSFEROR, OR JOIN IN ANY
INSTITUTION AGAINST THE TRANSFEROR, OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY
UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY
OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE.

--------

*    Denominations of $1,000 and integral multiples thereof; provided, however,
     that a single Note of any Class may be issued in a denomination of other
     than $1,000.

*    For Class A-1, Class A-2, Class A-3, Class A-4, Class B, Class C and Class
     D Notes only.

**   For Class D Note only.

                                       D-1
<PAGE>   77

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

     [THE HOLDER OF THIS CLASS [A-1, A-2, A-3, A-4, B or C] NOTE, BY ACCEPTANCE
OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE
ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE CLASS [A-1,
A-2, A-3, A-4, B or C] NOTES AS INDEBTEDNESS OF ADVANTA EQUIPMENT RECEIVABLES
SERIES 2000-___ LLC FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND
FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY
INCOME.]

                                       D-2

<PAGE>   78

               [ADVANTA EQUIPMENT RECEIVABLES SERIES 2000-___ LLC]
                                 [rate%] [rate%]
                 [CLASS A-1] [CLASS A-2] [CLASS A-3] [CLASS A-4]
                          [CLASS B] [CLASS C] [CLASS D]
                               ASSET BACKED NOTES

     [Advanta Equipment Receivables Series 2000-___ LLC], a limited liability
company organized and existing under the laws of the State of Nevada (herein
referred to as the "Issuer"), for value received, hereby promises to pay to
[__________], or registered assigns, the principal sum of [_________] DOLLARS
payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $[INSERT INITIAL PRINCIPAL
AMOUNT OF NOTE] and the denominator of which is [$________ [for Class A-1
Notes]] [$__________ [for Class A-2 Notes]] [$__________ [for Class A-3 Notes]
[$__________ [for Class A-4 Notes] [$__________ [for Class B Notes] [$__________
[for Class C Notes] [$__________ [for Class D Notes] by (ii) the aggregate
amount, if any, payable from the Note Distribution Account in respect of
principal on the [Class A-1] [Class A-2] [Class A-3] [Class A-4] [Class B]
[Class C] [Class D] Notes pursuant to Section 8.02(c) of the Indenture;
provided, however, the entire unpaid principal amount of this Note shall be due
and payable on the earlier of the [[month] [2000] Payment Date for the Class
A-1] [[month] [2000] Payment Date for the Class A-2] [[month] [2000] Payment
Date for the Class A-3] [[month] [2000] Payment Date for the Class A-4] [[month]
[2000] Payment Date for the Class B] [[month] [2000] Payment Date for the Class
C] [[month] [2000] Payment Date for the Class D] Notes and the Redemption Date,
if any, pursuant to Section 10.01 of the Indenture. The Issuer will pay interest
on this Note at the [Class A-1] [Class A-2] [Class A-3] [Class A-4] [Class B]
[Class C] [Class D] Note Interest Rate on each Payment Date until the principal
of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date after giving effect to all
payments of principal made on such preceding Payment Date (or in the case of the
first Payment Date, on the initial principal amount of this Note). Interest on
this Note will accrue for each Payment Date from and including the most recent
Payment Date on which interest has been paid to but excluding such Payment Date
or, for the initial Payment Date from ______ __, 2000 to but excluding such
Payment Date. [Interest will be computed on the basis of a 360-day year of
twelve 30-day months.] Such principal of and interest on this Note shall be paid
in the manner specified on the reverse hereof.

     The principal of and interest on this Note are payable 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. All payments made by the Issuer
with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

     Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

     Unless the certificate of authentication hereon has been executed by the
Trustee whose name appears below by manual signature, this Note shall not be
entitled to any benefit under the Indenture referred to on the reverse hereof,
or be valid or obligatory for any purpose.

                                      D-3
<PAGE>   79

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

                                    ADVANTA EQUIPMENT RECEIVABLES
                                             SERIES 2000-___ LLC,

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

                                      D-4
<PAGE>   80

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

                                    ---------------------------------
                                    [TRUSTEE]
                                        not in its individual capacity but
                                        solely as Trustee,

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

                                      D-5
<PAGE>   81

                                [REVERSE OF NOTE]

     This Note is one of the [Class A-1] [Class A-2] [Class A-3] [Class A-4]
[Class B] [Class C] [Class D] Notes of a duly authorized issue of Notes of the
Issuer, designated as its [rate] [rate%] [Class A-1] [Class A-2] [Class A-3]
[Class A-4] [Class B] [Class C] [Class D] Asset Backed Notes (herein called the
"Notes"), all issued under an Indenture dated as of __________ __, 2000 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and [Trustee], as trustee (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 and obligations thereunder of the Issuer, the Trustee and the
Holders of the Notes. The Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended.

     The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

     Principal of the Notes will be payable on each Payment Date in an amount
described on the face hereof. "Payment Date" means the ____ day of each calendar
month, or, if any such date is not a Business Day, the next succeeding Business
Day, commencing __________ __, 2000.

     As described above, the entire unpaid principal amount of this Note shall
be due and payable on the earlier of the [[________ ____] Payment Date [for
Class A-1] [________ ____] Payment Date [for Class A-2] [________ ____] Payment
Date [for Class A-3] [________ ____] Payment Date [for Class A-4] [________
____] Payment Date [for Class B] [________ ____] Payment Date [for Class C]
[________ ____] Payment Date [for Class D] [________ ____]] and the Redemption
Date, if any, pursuant to Section 10.01 of the Indenture. Notwithstanding the
foregoing, the entire unpaid principal amount of the Notes shall be due and
payable on the date on which an Event of Default shall have occurred and be
continuing and the Trustee or the Holders of the Notes representing a majority
of the Outstanding Amount of the Notes have declared the Notes to be immediately
due and payable in the manner provided in Section 5.02 of the Indenture. All
principal payments on the Notes of a Class shall be made pro rata to the
Noteholders of such Class entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be made by check mailed to the Person whose name
appears as the Registered Holder of this Note (or one or more Predecessor Notes)
on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the
nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Payment Date shall be

                                        1
<PAGE>   82

binding upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Payment Date, then the Trustee, in the name of and on behalf of
the Issuer, will notify the Person who was the Registered Holder hereof as of
the Record Date preceding such Payment Date by notice mailed within five days of
such Payment Date and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Trustee's principal Corporate
Trust Office or at the office of the Trustee's agent appointed for such purposes
located in The City of New York.

     As provided in the Indenture, the Notes may be redeemed in whole, but not
in part, at the option of the Servicer, on any Payment Date on or after the date
on which the Pool Balance is less than or equal to ten percent of the Initial
Pool Balance.

     As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on 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
Trustee duly executed by, the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company
located, or having a correspondent located, in The City of New York or the city
in which the Corporate Trust Office is located, or a member firm of a national
securities exchange, and such other documents as the Trustee may require, and
thereupon one or more new Notes of authorized denominations and in the same
aggregate principal amount will be issued to the designated transferee or
transferees. No service charge will be charged for any registration of transfer
or exchange of this Note, but the transferor may be required to pay a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer or the Trustee on the Notes or under the Indenture or any
certificate or other writing delivered in connection therewith, against (i) the
Trustee in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer, the Trustee or of any successor or assign of the Trustee
in its individual capacity, except as any such Person may have expressly agreed
and except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture that such Noteholder will not at any
time institute against the Transferor, or join in any institution against the
Transferor of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, the
Indenture or the Basic Documents.

                                       2
<PAGE>   83

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) 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.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the
Holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one of more Predecessor Notes) shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Trustee to amend or waive certain terms and conditions set
forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term "Issuer" as used in this Note includes any successor to the Issuer
under the Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to
merge or consolidate, subject to the rights of the Trustee and the Holders of
Notes under the Indenture.

     The Notes are issuable only in registered form in denominations as provided
in the Indenture, subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws
of the State of New York, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place, and rate, and in the coin or currency herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Trustee in its individual capacity,
any owner of a beneficial interest in the Issuer, nor any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal of or interest on, or performance of, or omission
to perform, any of the covenants, obligations or indemnifications contained in
this Note or the Indenture. The Holder of this Note by the acceptance hereof
agrees that, except as expressly

                                       3
<PAGE>   84

provided in the Basic Documents in the case of an Event of Default under the
Indenture, the Holder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Note.

                                       4
<PAGE>   85

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

------------------------------

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

----------------------------------------
(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints attorney, to transfer said Note on the books kept for registration
thereof, with full power of substitution in the premises.

Dated:                                                         *
      ------------------------       ---------------------------
                                     Signature                      Guaranteed:

----------------
*    NOTE: The signature to this assignment must correspond with the name of the
     registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatsoever.

                                       1
<PAGE>   86

                                                                       EXHIBIT E

                    [FORM OF CLASS D TRANSFEREE CERTIFICATE]

                                      E-1<PAGE>   1
                                                                     EXHIBIT 4.2
                                                                      OH&S DRAFT
                                                                        02/16/00

                        TRANSFER AND SERVICING AGREEMENT

                                     between

                ADVANTA EQUIPMENT RECEIVABLES SERIES 2000-__ LLC

                                     Issuer

                               ADVANTA BANK CORP.

                             Transferor and Servicer

                         Dated as of __________ __, 2000

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                               Page
                                    ARTICLE I

                                   DEFINITIONS
<S>             <C>                                                            <C>
Section 1.01.     Definitions.....................................................1

Section 1.02.     Other Definitional Provisions..................................20

Section 1.03.     Calculations...................................................21

                                   ARTICLE II

                             CONVEYANCE OF CONTRACTS

Section 2.01.     Transfer of Conveyed Assets....................................21

Section 2.02.     Closing........................................................22

Section 2.03.     Books and Records..............................................22

Section 2.04.     Grant of Security Interest.....................................22

                                   ARTICLE III

                                  THE CONTRACTS

Section 3.01.     Representations and Warranties of Transferor...................23

Section 3.02.     Reacquisition by the Transferor Upon Breach....................24

Section 3.03.     Duties of Servicer.............................................24

                                   ARTICLE IV

                    ADMINISTRATION AND SERVICING OF CONTRACTS

Section 4.01.     Duties of Servicer.............................................25

Section 4.02.     Collection of Contract Payments................................26

Section 4.03.     Realization upon Contracts.....................................26

Section 4.04.     Servicer Advances..............................................26

Section 4.05.     Maintenance of Security Interests in Financed Equipment........26

Section 4.06.     Covenants of Servicer..........................................27

Section 4.07.     Acquisition by Servicer of Contracts upon Breach...............27

Section 4.08.     Servicing Fee..................................................27

Section 4.09.     Servicer's Certificate.........................................27

Section 4.10.     Annual Statement as to Compliance..............................28

Section 4.11.     Security Deposits..............................................28

</TABLE>
                                      -i-

<PAGE>   3

                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>

                                                                               PAGE

                                         ARTICLE V

                                 DISTRIBUTIONS; ACCOUNTS;
                                 STATEMENTS TO NOTEHOLDERS
<S>              <C>                                                           <C>
Section 5.01.     Establishment of Trust Accounts................................28

Section 5.02.     Collections....................................................29

Section 5.03.     Additional Deposits............................................30

Section 5.04.     Distributions..................................................31

Section 5.05.     Reserve Account................................................32

Section 5.06.     Statement to Noteholders.......................................33

                                   ARTICLE VI

                                 THE TRANSFEROR

Section 6.01.      Representations of Transferor..................................34

Section 6.02.      Liability of Transferor; Indemnities...........................35

Section 6.03.      Merger or Consolidation of, or Assumption of the
                   Obligations of, Transferor.....................................36

Section 6.04.      Limitation on Liability of Transferor and Others...............36

Section 6.05.      Transferor May Own Notes.......................................36

Section 6.06.      Tax Treatment..................................................37

                                   ARTICLE VII

                                  THE SERVICER

Section 7.01.     Representations of Servicer.....................................37

Section 7.02.     Indemnities of Servicer.........................................38

Section 7.03.     Merger or Consolidation of, or Assumption of the
                  Obligations of, Servicer........................................39

Section 7.04.     Limitation on Liability of Servicer and Others..................40

Section 7.05.     Advanta Bank Corp. Not To Resign as Servicer....................40

                                  ARTICLE VIII

                                     DEFAULT

Section 8.01.     Servicer Default................................................41

</TABLE>
                                      -ii-
<PAGE>   4

                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>
                                                                                PAGE
<S>             <C>                                                           <C>
Section 8.02.     Appointment of Successor.......................................42

Section 8.03.     Notification to Noteholders....................................43

Section 8.04.     Waiver of Past Defaults........................................43

                                   ARTICLE IX

                              OPTIONAL ACQUISITION

Section 9.01.     Optional Acquisition of All Contracts..........................44

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

Section 10.01.    Amendment......................................................44

Section 10.02.    Protection of Title to Trust Estate............................45

Section 10.03.    Notices........................................................46

Section 10.04.    Assignment.....................................................47

Section 10.05.    Limitations on Rights of Others................................47

Section 10.06.    Severability...................................................47

Section 10.07.    Separate Counterparts..........................................47

Section 10.08.    Headings.......................................................47

Section 10.09.    Governing Law..................................................47

Section 10.10.    Assignment to Trustee..........................................47

Section 10.11.    Nonpetition Covenants..........................................47

Section 10.12.    Limitation of Liability of Trustee.............................48

</TABLE>
                                     -iii-
<PAGE>   5

<TABLE>
<CAPTION>
                                                                                PAGE

<S>              <C>                                                           <C>
SCHEDULE A -      List of Contracts [Deemed Incorporated]........................A-1

SCHEDULE B -      Location of Contract Files.....................................B-1

SCHEDULE C -      Servicer's Certificate.........................................C-1

SCHEDULE D -      Officers' Certificate..........................................D-1

</TABLE>

                                      -iv-
<PAGE>   6

     TRANSFER AND SERVICING AGREEMENT dated as of __________ __, 2000, between
ADVANTA EQUIPMENT RECEIVABLES SERIES 2000-__ LLC, a Nevada limited liability
company (the "Issuer") and ADVANTA BANK CORP., a Utah corporation (the
"Transferor" or the "Servicer").

     WHEREAS Advanta Bank Corp. in the ordinary course of its business
originates and acquires equipment leases, loans and other financing
arrangements;

     WHEREAS, the Issuer desires to acquire from Advanta Bank Corp. a portfolio
of such leases, loans and other equipment financing arrangements as specified in
the List of Contracts delivered to the Issuer in connection with this Agreement
and to acquire all of the Transferor's right, title and interest in, to and
under the Contracts except for the Residual Interest in the equipment related to
such Contracts which Residual Interest will be retained by the Transferor;

     WHEREAS, the Transferor has agreed to transfer the contracts, but not any
Residual Interest related to such Contracts, to the Issuer on the term as set
forth in this Agreement; and

     WHEREAS, the Issuer has requested that Advanta Bank Corp. service the
Contracts and Advanta Bank Corp. has agreed to service the Contracts on the
terms set forth in this Agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     Section 1.01. Definitions. Whenever used in this Agreement, the following
words and phrases, unless the context otherwise requires, shall have the
following meanings:

     "Acquired Contract" means a Contract acquired as of the close of business
on the last day of a Collection Period by the Servicer pursuant to Section 4.07
or reacquired as of such time by the Transferor pursuant to Section 3.02.

     "Advance Payment" means, with respect to any Contract, any Scheduled
Payment or a portion thereof made by or on behalf of an Obligor which does not
become due until a subsequent Collection Period. Advance Payments shall be
"Collections" with respect to the Collection Period to which such Advance
Payment relates. Advance Payments do not include Prepayment Amounts.

     "Additional Principal" means, with respect to each Payment Date, an amount
equal to the Monthly Principal Amount less the Class A Monthly Principal Payment
Amount, the Class B Monthly Principal Payment Amount and the Class C Monthly
Principal Payment Amount for such date.

     "Affiliate" has the meaning assigned thereto in Section 1.01 of the
Indenture.
<PAGE>   7

     "Agreement" means this Transfer and Servicing Agreement, as the same may be
amended and supplemented from time to time.

     "Aggregate Contract Principal Balance" means, as of any Calculation Date,
the sum of the Contract Principal Balances of all Contracts as of such
Calculation Date.

     "Applicable Discount Rate" means ____%.

     "Available Funds" means, for any Payment Date, (i) all Collections for the
immediately preceding Collection Period, (ii) Servicer Advances made to cover
payments due in the immediately preceding Collection Period, (iii) all
Prepayment Proceeds received by the Servicer for the immediately preceding
Collection Period, (iv) available earnings on the Collection Account and Reserve
Account and (v) all amounts transferred from the Reserve Account and deposited
into the Collection Account for such Payment Date but not including Excluded
Amounts and not including any Residual Receipts.

     "Basic Documents" has the meaning assigned to such term in the Indenture.

     "Business Day" means any day other than a Saturday, a Sunday or a day on
which banking institutions or trust companies in New York, New York or Salt Lake
City, Utah, are authorized or obligated by law, regulation or executive order to
remain closed.

     "Calculation Date" means for any Payment Date, the last day of the
immediately preceding Collection Period. Amounts calculated from Calculation
Date balances shall be calculated from such balances as of the close of business
on the Calculation Date.

     "Class" means of the following classes of Notes: Class A-1, Class A-2,
Class A-3, Class A-4, Class B, Class C or Class D, as applicable.

     "Class A Monthly Principal Payment Amount" means, with respect to any
Payment Date on which all or a portion of the Class A-1 Notes remain outstanding
after giving effect to payments on such day, the Monthly Principal Amount, (b)
with respect to the Payment Date on which the outstanding principal of the Class
A-1 Notes is reduced to $0, the sum of (i) the amount necessary to reduce the
outstanding principal of the Class A-1 Notes to $0 and (ii) the amount necessary
to reduce the sum of the outstanding principal amount of the Class A-2 Notes,
the Class A-3 Notes and the Class A-4 Notes to the Class A Target Investor
Principal Amount or (c) on any subsequent Payment Date, the amount necessary to
reduce the sum of the outstanding principal amount of the Class A-2 Notes, the
Class A-3 and the Class A-4 Notes to the Class A Target Investor Principal
Amount.

     "Class A Percentage" means a fraction, expressed as a percentage, equal to
(i) the sum of the Class A-2 initial principal balance, the Class A-3 initial
principal balance and the Class A-4 initial principal balance by (ii) the
Initial Aggregate Contract Principal Balance minus the Class A-1 initial
principal balance and being approximately _______%.

     "Class A Target Principal Amount" means with respect to each Payment Date,
an amount equal to the product of (i) the Class A Percentage and (ii) the
Aggregate Contract Principal Balance as of the related Calculation Date.

                                       2
<PAGE>   8

     "Class A-1 Note" means a Class A-1 Note issued pursuant to the Indenture.

     "Class A-1 Note Interest" means with respect to any Payment Date, the sum
of (i) the product of (A) the Class A-1 Principal Balance immediately prior to
such Payment Date, (B) the actual number of days in the related Interest Period
divided by 360 and (C) the Class A-1 Interest Rate and (ii) the Class A-1
Overdue Interest from the preceding Payment Date; provided that on the first
Payment Date, the Class A-1 Interest shall be $___________.

     "Class A-1 Note Interest Rate" has the meaning assigned to such term in the
Indenture.

     "Class A-1 Note Pool Factor" means 1.0000000 as of the Closing Date, and as
of the close of business on the last day of a Collection Period thereafter means
a seven-digit decimal figure equal to the outstanding principal amount of the
Class A-1 Notes as of such date (after giving effect to payments in reduction of
the principal amount of the Class A-1 Notes on the immediately following Payment
Date) divided by the original outstanding principal amount of the Class A-1
Notes.

     "Class A-1 Noteholder" means a holder of a Class A-1 Note.

     "Class A-1 Overdue Interest" means, with respect to any Payment Date, the
sum of:

     (i)     the excess, if any, of any Class A-1 Note Interest due on such
             Payment Date over the Class A-1 Note Interest paid on such Payment
             Date; and

     (ii)    the product of (a) the amount of Class A-1 Overdue Interest due on
             the immediately preceding Payment Date and not paid on such
             immediately preceding Payment Date, (b) the actual number of days
             in the related Interest Period divided by 360 and (c) the Class A-1
             Interest Rate.

     "Class A-1 Principal Balance" means, as of any date of determination, an
amount equal to the initial Class A-1 principal balance of $ ______________ less
any principal payments previously made on the Class A-1 Notes.

     "Class A-2 Note" means a Class A-2 Note issued pursuant to the Indenture.

     "Class A-2 Note Interest" means, with respect to any Payment Date, the sum
of (i) the product of [ (A) the Class A-2 Principal Balance immediately prior to
such Payment Date and (B) one-twelfth of the Class A-2 Interest Rate] and (ii)
the Class A-2 Overdue Interest from the preceding Payment Date; provided that on
the first Payment Date, the Class A-2 Note Interest shall be $ ______________.

     "Class A-2 Note Interest Rate" has the meaning assigned to such term in the
Indenture.

     "Class A-2 Note Pool Factor" means 1.0000000 as of the Closing Date, and as
of the close of business on the last day of a Collection Period thereafter means
a seven-digit decimal figure equal to the outstanding principal amount of the
Class A-2 Notes as of such date (after

                                       3
<PAGE>   9

giving effect to payments in reduction of the principal amount of the Class A-2
Notes on the immediately following Payment Date) divided by the original
outstanding principal amount of the Class A-2 Notes.

     "Class A-2 Noteholder" means a holder of a Class A-2 Note.

     "Class A-2 Overdue Interest" means, with respect to any Payment Date, the
sum of:

     (i)     the excess, if any, of any Class A-2 Note Interest due on such
             Payment Date over the Class A-2 Note Interest paid on such Payment
             Date; and

     (ii)    the product of (a) the amount of Class A-2 Overdue Interest due on
             the immediately preceding Payment Date and not paid on such
             immediately preceding Payment Date and (b) one-twelfth of the Class
             A-2 Interest Rate.

     "Class A-2 Principal Balance" means, as of any date of determination, an
amount equal to the initial Class A-2 principal balance of $ __________ less any
principal payments previously made on the Class A-2 Notes.

     "Class A-3 Note" means a Class A-3 Note issued pursuant to the Indenture.

     "Class A-3 Note Interest" means, with respect to any Payment Date, the sum
of (i) the product of (A) the Class A-3 Principal Balance immediately prior to
such Payment Date and [(B) one-twelfth of the Class A-3 Interest Rate] and (ii)
the Class A-3 Overdue Interest from the Preceding Payment Date; provided that on
the first Payment Date, the Class A-3 Note Interest shall be $___________.

     "Class A-3 Note Interest Rate" has the meaning assigned to such term in the
Indenture.

     "Class A-3 Note Pool Factor" means 1.0000000 as of the Closing Date, and as
of the close of business on the last day of a Collection Period thereafter means
a seven-digit decimal figure equal to the outstanding principal amount of the
Class A-3 Notes as of such date (after giving effect to payments in reduction of
the principal amount of the Class A-3 Notes on the immediately following Payment
Date) divided by the original outstanding principal amount of the Class A-3
Notes.

     "Class A-3 Noteholder" means a holder of a Class A-3 Note.

     "Class A-3 Overdue Interest" means, with respect to any Payment Date, the
sum of:

     (i)     the excess, if any, of any Class A-3 Note Interest due on such
             Payment Date over the Class A-3 Note Interest paid on such Payment
             Date; and

     (ii)    the product of (a) the amount of Class A-3 Overdue Interest due on
             the immediately preceding Payment Date and not paid on such
             immediately preceding Payment Date and (b) one-twelfth of the Class
             A-3 Interest Rate.

                                       4
<PAGE>   10

     "Class A-3 Principal Balance" means, as of any date of determination, an
amount equal to the initial Class A-3 Principal Balance of $ _________ less any
principal payments previously made on the Class A-3 Notes.

     "Class A-4 Note" means a Class A-4 Note issued pursuant to the Indenture.

     "Class A-4 Note Interest" means, with respect to any Payment Date, the sum
of (i) the product of [ (A) the Class A-4 Principal Balance immediately prior to
such Payment Date and (B) one-twelfth of the Class A-4 Interest Rate] and (ii)
the Class A-4 Overdue Interest from the preceding Payment Date; provided that on
the first Payment Date, the Class A-4 Note Interest shall be $
______________.

     "Class A-4 Note Interest Rate" has the meaning assigned to such term in the
Indenture.

     "Class A-4 Note Pool Factor" means 1.0000000 as of the Closing Date, and as
of the close of business on the last day of a Collection Period thereafter means
a seven-digit decimal figure equal to the outstanding principal amount of the
Class A-4 Notes as of such date (after giving effect to payments in reduction of
the principal amount of the Class A-4 Notes on the immediately following Payment
Date) divided by the original outstanding principal amount of the Class A-4
Notes.

     "Class A-4 Noteholder" means a holder of a Class A-4 Note.

     "Class A-4 Overdue Interest" means, with respect to any Payment Date, the
sum of:

     (i)     the excess, if any, of any Class A-4 Note Interest due on such
             Payment Date over the Class A-4 Note Interest paid on such Payment
             Date; and

     (ii)    the product of (a) the amount of Class A-4 Overdue Interest due on
             the immediately preceding Payment Date and not paid on such
             immediately preceding Payment Date and (b) one-twelfth of the Class
             A-4 Interest Rate.

     "Class A-4 Principal Balance" means, as of any date of determination, an
amount equal to the initial Class A-4 Principal Balance of $ __________ less any
principal payments previously made on the Class A-4 Notes.

     "Class B Monthly Principal Payment Amount" means, an amount equal to (a)
for any Payment Date on which all or a portion of the Class A-1 Notes remain
outstanding after giving effect to payments on such day, $0, and (b) for any
subsequent Payment Date, the amount necessary to reduce the outstanding
principal amount of the Class B Notes to the Class B Target Principal Amount.

     "Class B Note" means a Class B Note issued pursuant to the Indenture.

     "Class B Note Interest" means, with respect to any Payment Date, the sum of
(i) the product of (A) the Class B Principal Balance immediately prior to such
Payment Date and (B) [one-twelfth of the Class B Interest Rate] and (ii) the
Class B Overdue Interest from the

                                       5
<PAGE>   11

preceding Payment Date; provided that on the first Payment Date, the Class B
Note Interest shall be $________________.

     "Class B Note Interest Rate" has the meaning assigned to such term in the
Indenture.

     "Class B Note Pool Factor" means 1.0000000 as of the Closing Date, and as
of the close of business on the last day of a Collection Period thereafter means
a seven-digit decimal figure equal to the outstanding principal amount of the
Class B Notes as of such date (after giving effect to payments in reduction of
the principal amount of the Class B Notes on the immediately following Payment
Date) divided by the original outstanding principal amount of the Class B Notes.

     "Class B Noteholder" means a holder of a Class B Note.

     "Class B Overdue Interest" means, with respect to any Payment Date, the sum
of:

     (i)     the excess, if any, of any Class B Note Interest due on such
             Payment Date over the Class B Note Interest paid on such Payment
             Date; and

     (ii)    the product of (a) the amount of Class B Overdue Interest due on
             the immediately preceding Payment Date and not paid on such
             immediately preceding Payment Date and (b) one-twelfth of the Class
             B Interest Rate.

     "Class B Percentage" means a fraction, expressed as a percentage, equal to
(i) the initial Class B Principal Balance or $_________ divided by (ii) the
Initial Aggregate Contact Principal Balance minus the Class A-1 Initial
Principal Balance, and being approximately _______%.

     "Class B Principal Balance" means as of any date, an amount equal to the
initial Class B principal balance less any principal payments previously made on
the Class B Notes.

     "Class B Target Principal Amount" means, with respect to each Payment Date,
an amount equal to the product of (i) the Class B Percentage and (ii) the
Aggregate Contract Principal Balance as of the related Calculation Date.

     "Class C Monthly Principal Payment Amount" means an amount equal to (a) for
any Payment Date on which all or a portion of the Class A-1 Notes remain
outstanding after giving effect to payments on such day, $0, and (b) for any
subsequent Payment Date, the amount necessary to reduce the outstanding
principal amount of the Class C Notes to the Class C Target Principal Amount.

     "Class C Note" means a Class C Note issued pursuant to the Indenture.

     "Class C Note Interest" means, with respect to any Payment Date, the sum of
(i) the product of (A) the Class C Principal Balance immediately prior to such
Payment Date and (B) [one-twelfth of the Class C Interest Rate] and (ii) the
Class C Overdue Interest from the preceding Payment Date; provided that on the
first Payment Date, the Class C Note Interest shall be $___________.

                                       6
<PAGE>   12

     "Class C Note Interest Rate" has the meaning assigned to such term in the
Indenture.

     "Class C Note Pool Factor" means 1.0000000 as of the Closing Date, and as
of the close of business on the last day of a Collection Period thereafter means
a seven-digit decimal figure equal to the outstanding principal amount of the
Class C Notes as of such date (after giving effect to payments in reduction of
the principal amount of the Class C Notes on the immediately following Payment
Date) divided by the original outstanding principal amount of the Class C Notes.

     "Class C Noteholder" means a holder of a Class C Note.

     "Class C Noteholders' Monthly Principal Payment Amount" means, an amount
equal to (a) for any Payment Date on which all or a portion of the Class A-1
Notes remain outstanding after giving effect to payments on such day, $0, and
(b) for any subsequent Payment Date, the amount necessary to reduce the
outstanding principal amount of the Class C Notes to the Class C Target
Principal Amount.

     "Class C Overdue Interest" means, with respect to any Payment Date, the sum
of:

     (i)     the excess, if any, of any Class C Note Interest due on such
             Payment Date over the Class C Note Interest paid on such Payment
             Date; and

     (ii)    the product of (a) the amount of Class C Overdue Interest due on
             the immediately preceding Payment Date and not paid on such
             immediately preceding Payment Date and (b) one-twelfth of the Class
             C Interest Rate.

     "Class C Percentage" means a fraction, expressed as a percentage, equal to
(i) the initial Class C principal balance or $_________ divided by (ii) the
Initial Aggregate Contact Principal Balance minus the Class A-1 initial
principal balance, and being approximately _______%.

     "Class C Principal Balance" means as of any date, an amount equal to the
initial Class C principal balance less any principal payments previously made on
the Class C Notes.

     "Class C Target Principal Amount" means, with respect to each Payment Date,
an amount equal to the product of (i) the Class C Percentage and (b) the
Aggregate Contract Principal Balance as of the related Calculation Date.

     "Class D Floor" means, with respect to each Payment Date, (i) ___% of the
Initial Aggregate Contract Principal Balance, plus (ii) the Cumulative Loss
Amount as of such Payment Date, minus (iii) the amount on deposit in the Reserve
Account after giving effect to payments and withdrawals on such Payment Date.

     "Class D Monthly Principal Payment Amount" means, an amount equal to (a)
for any Payment Date on which all or a portion of the Class A-1 Notes remain
outstanding after giving effect to payments on such day, $0, and (b) for any
subsequent Payment Date, the amount necessary to reduce the outstanding
principal amount of the Class D Notes to the greater of the Class D Target
Principal Amount and the Class D Floor.

                                       7
<PAGE>   13

            "Class D Note" means a Class D Note issued pursuant to the
Indenture.

            "Class D Noteholder" means a holder of a Class D Note.

            "Class D Percentage" means a fraction, expressed as a percentage,
equal of (i) the initial Class D Principal Balance divided by (ii) the Initial
Aggregate Contract Principal Balance minus the initial Class A-1 Principal
Balance and being approximately ____%.

            "Class D Principal Balance" means, as of any date, an amount equal
to the initial Class D principal balance less any principal payments previously
made on the Class D Notes.

            "Class D Target Principal Amount" means, with respect to each
Payment Date, an amount equal to the product of (i) the Class D Percentage and
(ii) the Aggregate Contract Principal Balance as of the related Calculation
Date.

     "Closing Date" means __________ __, 2000.

     "Collection Account" means the account designated as such, established and
maintained pursuant to Section 5.01.

     "Collection Period" means, with respect to the first Payment Date, the
calendar month ending on and including __________ __, 2000 and, with respect to
each subsequent Payment Date, the immediately preceding calendar month. Any
amount stated "as of the close of business on the last day of a Collection
Period" shall give effect to the following calculations as determined as of the
end of the day on such last day: (1) all applications of collections and (2) all
distributions to be made on the following Payment Date.

     "Collections" means all payments and other amounts received by the Servicer
in respect of a Contract and the Related Security other than Residual Receipts
and other than Excluded Amounts. Collections include, but are not limited to,
Scheduled Payments, Prepayment Proceeds, Offset Amounts, Recoveries and
Insurance Proceeds. Collections do not include Excluded Amounts and do not
include Residual Receipts.

     "Commission" means the Securities and Exchange Commission.

     "Contract" means the leases and other contracts and agreements contained on
the List of Contracts.

     "Contract Principal Balance" means as of any date of calculation with
respect to a Contract, the present value of the Scheduled Payments to become due
with respect to such Contract on or after the date of calculation (but in any
event on or prior to _______, 200_) (excluding Scheduled Payments previously due
and unpaid), discounted monthly at one-twelfth of the Applicable Discount Rate,
except that a Defaulted Contract has a Contract Principal Balance of $0.
Contracts which have been prepaid or otherwise terminated or released from the
Trust Estate shall also have a Contract Principal Balance of $0.

     "Contract Files" means with respect to each Contract, the following
documents:

                                       8
<PAGE>   14

     (i)     The executed original counterparts of the Contract;

     (ii)    A copy of any related broker agreement;

     (iii)   Copies of all documents (which may be in microfiche form or on the
             Servicer's computerized information system), if any, that the
             Transferor or the Servicer keeps on file for the benefit of the
             Transferor in accordance with the Transferor's or Servicer's
             customary procedures; and

     (iv)    Copies (together with all amendments, assignments, and
             continuations thereof and including evidence of filings with the
             appropriate office) of all UCC financing statements filed with
             respect to the Contracts, identifying the Obligor as debtor and the
             Transferor as secured party, if applicable.

     "Corporate Trust Office" has the meaning assigned to such term in Section
1.01 of the Indenture.

     "Credit and Collection Policy" means the credit and collection policies and
practices of the Servicer as the same may be modified from time to time in
accordance with the terms of this Agreement.

     "Cumulative Loss Amount" means the excess, if any, of (a) the remainder of
(i) the Outstanding Amount of the Notes minus (ii) the lesser of (A) the Monthly
Principal Amount and (B) Available Funds (after the payment of amounts described
in subsection _____ through ______ hereof) over (b) the Aggregate Contract
Principal Balance as of the related Calculation Date.

     "Cumulative Net Loss Ratio" means with respect to each Collection Period,
the percentage equivalent of a fraction, the numerator of which is the excess of
(x) the aggregate amount of the Contract Principal Balances (calculated as of
the date immediately before such Contract become a Defaulted Contract) of all
Contracts which become Defaulted Contracts during all prior Collection Periods
over (y) the aggregate amount of all Recoveries collected by the Servicer with
respect to such Collection Periods and the denominator of which is the Initial
Aggregate Contract Principal Balance.

     "Cut-Off Date" means, with respect to the Contracts _________, 2000.

     "Debtor Relief Laws" means the Bankruptcy Code of the United States of
America and all other applicable liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, receivership, insolvency, reorganization, suspension
of payments, readjustment of debt, marshalling of assets or similar debtor
relief laws of the United States or any state from time to time in effect,
affecting the rights of creditors generally.

     "Defaulted Contract" means any Contract (i) that is a Delinquent Contract
with respect to which an Obligor is contractually delinquent for 121 days or
more (without regard to any Servicer Advances or the application of any Security
Deposit) or (ii) as to which the Servicer has determined in accordance with its
customary servicing practices that eventual payment of the

                                       9
<PAGE>   15

remaining Scheduled Payments thereunder is unlikely or (iii) that has been
rejected by or on behalf of the Obligor in a bankruptcy proceeding.

     "Delinquent Contract" means, as of any date, a Contract as to which a
Scheduled Payment, or part thereof, remains unpaid for more than 60 days from
the original due date for such Scheduled Payment.

     "Determination Date" means, with respect to any Payment Date, the third
Business Day prior to such Payment Date.

     "Eligible Deposit Account" means either (a) a segregated account with an
Eligible Institution or (b) a segregated trust account with the corporate trust
department of a depository 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), having corporate trust powers and
acting as trustee for funds deposited in such account, so long as any of the
securities of such depository institution shall have a credit rating from each
Rating Agency in one of its generic rating categories which signifies investment
grade.

     "Eligible Institution" means (a) the corporate trust department of the
Trustee, so long as it is a paying agent under the Indenture, or such other
institution acceptable to the Rating Agencies, or (b) a depository institution
(excluding the Servicer or any of its Affiliates) 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) (i)(A) which has either (1)
a long-term unsecured debt rating of __________ or better by __________ and
__________ or better by __________ or (2) a short-term unsecured debt rating or
a certificate of deposit rating of __________ by __________ and __________or
better by __________, or any other long-term, short-term or certificate of
deposit rating acceptable to the Rating Agencies and (B) whose deposits are
insured by the FDIC or (ii)(A) the parent of which has a long-term or short-term
unsecured debt rating acceptable to the Rating Agencies and (B) whose deposits
are insured by the FDIC. If so qualified, the Trustee may be considered an
Eligible Institution for the purposes of clause (b) of this definition.

     "Eligible Investments" mean any instrument, security or security
entitlement evidencing any of the following:

     (a)  marketable obligations of the United States of America which are
backed by the full faith and credit of the United States of America;

     (b)  marketable obligations directly and fully guaranteed by the full faith
and credit of the United States of America;

     (c)  bankers' acceptances and certificates of deposit and other
interest-bearing obligations denominated in United States Dollars and issued by
any bank with capital, surplus and undivided profits aggregating at least
$100,000,000, the short-term securities of which are rated "A-1" by S&P, "P-1"
by Moody's and "F1" by Fitch (if rated by Fitch);

                                       10
<PAGE>   16

     (d)  repurchase obligations for underlying securities of the types
described in clauses (a), (b) and (c) above entered into with any bank of the
type described in clause (c) above;

     (e)  commercial paper rated at least "A-1+" by S&P, "P-1" by Moody's and
"F1" by Fitch (if rated by Fitch);

     (f)  freely redeemable shares in money market funds (including funds for
which the Trustee, any Noteholder or any affiliates of either of the foregoing
may act as sponsor or advisor or for which any of the foregoing Persons may
receive fee income) which money market funds are rated at least "AAm" or "AAm-g"
by S&P, "Aa1" by Moody's and "AA" by Fitch (if rated by Fitch); and

     (g)  demand deposits, time deposits or certificates of deposit (having
original maturities of no more than 365 days) of depository institutions or
trust companies incorporated under the laws of the United States of America or
any state thereof (or domestic branches of any foreign bank) and subject to
supervision and examination by federal or state banking or depository
institution authorities; provided that at the time such investment, or the
commitment to make such investment, is entered into, the short-term debt rating
of such depository institution or trust company shall be at least "A-1" by S&P,
"P-1" by Moody's and "F1" by Fitch (if rated by Fitch).

     Notwithstanding anything set forth in clauses (a) through (g) above, any
Eligible Investment must mature no later than the Business Day prior to the next
Payment Date.

     "Excluded Amounts" means (i) any payments received from an Obligor in
connection with any insurance premiums or fees, or Taxes or other charges
imposed by any Governmental Authority, (ii) any indemnity payments made by an
Obligor pursuant to any Contract and (iii) all Late Fees, extension fees, and
other incidental charges (from whatever source) collected with respect to any
Contract.

     "Eligible Contract" means a Contract which, as of the Closing Date or,
where indicated, the Cut-Off Date:

     (i)  (a) is with a Obligor whose billing address is in the United States or
its territories and possessions and requires all payments under such Contract to
be made in United States dollars and (b) is with a Obligor who, if a natural
person, is a resident of the United States or its territories and possessions
with legal capacity to contract or, if a corporation or other business
organization, is organized under the laws of the United States, its territories
or any political subdivision thereof and has its chief executive office in the
United States or its territories or possessions;

     (ii)  has not had any of its terms, conditions or provisions modified or
waived other than in compliance with the Credit and Collection Policy;

     (iii) the payments arising under the Contract constitute an account or
general intangible which is evidenced by a Contract that constitutes "chattel
paper" within the meaning of Section 9-105(b) of the UCC of all applicable
jurisdictions and for which there is only one

                                       11
<PAGE>   17

original of such Contract that constitutes "chattel paper" for purposes of the
UCC (other than those which are in the form of a loan which may be evidence by a
promissory note);

     (iv)  does not contravene any applicable federal, state and local laws and
regulations thereunder (including, without limitation, any law, rule and
regulation relating to truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices and privacy)
and, with respect to which no part of such Contract thereto is in violation of
any applicable law, rule or regulation;

     (v)   satisfies in all material respects all applicable requirements of the
Credit and Collection Policy;

     (vi)  as of the Cut-Off Date, the Contract is not a Defaulted Contract;

     (vii) (other than a Contract which is a loan in form), (a) contains "hell
or high water" provisions requiring the related Obligor to assume all risk of
loss or malfunction of the related Equipment, (b) makes the related Obligor
absolutely and unconditionally liable for all payments required to be made
thereunder, (c) is a triple-net lease and (d) is not cancelable at the option of
the Obligor;

     (viii) creates a valid and enforceable security or ownership interest in
favor of the Transferor in the related Equipment, if any;

     (ix)   has only one set of original documentation;

     (x)    is free and clear of any Adverse Claims, other than the claims
arising pursuant to the Indenture; provided, however, that nothing in this
clause (x) shall prevent or be deemed to prohibit Permitted Liens;

     (xi)   is in full force and effect in accordance with its terms and
contains enforceable provisions such that the right and remedies of the holder
thereof shall be adequate for realization against the Financed Equipment, if
any, thereunder and of the benefits of any security granted thereunder;

     (xii)  does not provide for the substitution, exchange, or addition of any
other items of Financed Equipment pursuant to such Contract which would result
in any reduction or extension of payments due thereunder;

     (xiii) by its terms is due and payable on or within 84 months of the
Closing Date and, in either event, has not had its payment terms extended other
than in compliance with the Credit and Collection Policy;

     (xiv)  is in substantially the form of one of the standard form contracts
that the Transferor uses or a form reviewed and accepted by the Transferor;

                                       12
<PAGE>   18

     (xv)  (a) does not preclude the pledge, transfer or assignment thereof, (b)
does not require the consent of the Obligor to the pledge, assignment or
transfer thereof, and (c) does not contain a confidentiality provision that
purports to restrict the ability of the Trustee to exercise its rights under the
Basic Documents with respect thereto, including, without limitation, its right
to review the Contract;

     (xvi)  was originated or purchased by the Originator in the ordinary course
of its business, (b) approved and purchased or funded in the ordinary course of
the Originator's business and (c) if purchased from a broker or vendor, has been
re-underwritten by the Originator in the ordinary course of the Originator's
business and in compliance with its underwriting policies;

     (xvii) either (a) is an account receivable representing all or part of the
sales price of merchandise, insurance and/or services within the meaning of
Section 3(c)(5) of the Investment Company Act of 1940, as amended, or (b)
represents a financial asset that converts to cash within a finite period of
time within the meaning of Rule 3a-7 promulgated under the Investment Company
Act of 1940, as amended;

     (xviii) relates to Financed Equipment which is located in the United States
of America, its territories or possessions;

     (xix)  it is not a consumer lease;

     (xx)   no adverse selection was used in selecting the Contract for transfer
to the Issuer;

     (xxi)  the information with respect to the Contract contained on the List
of Contracts delivered to the Trustee is true and correct in all material
respects; and

     (xxii) all filings necessary to evidence the conveyance or transfer of the
Contract to the Issuer have been made in all appropriate jurisdictions.

     "Final Scheduled Payment Date" means the __________ ____ Payment Date.

     "Fitch" means Fitch IBCA, Inc.

     "Financed Equipment" means all goods, equipment or other property which
secure the payment or performance of a Contract which were directly or
indirectly acquired with the proceeds of such Contract, or in the case of a
lease transaction, are leased by the Obligor in connection with such Contract.

     "Governmental Authority" means the United States of America, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

     "Holder" or "Noteholder" has the meaning assigned to such term in Section
1.01 of the Indenture.

                                       13
<PAGE>   19

     "Indenture" means the Indenture dated as of ________ __, 2000 between the
Issuer and the Trustee, as the same may be amended and supplemented from time to
time.

     "Initial Aggregate Contract Principal Balance" means the Aggregate Contract
Principal Balance as of the Cut-Off Date, which is $__________.

     "Insolvency Event" means, with respect to a specified Person, (a) the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property in an
involuntary case under any applicable Federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or ordering the
winding-up or liquidation of such Person's affairs, and such decree or order
shall remain unstayed and in effect for a period of 90 consecutive days; or (b)
the commencement by such Person of a voluntary case under any applicable Federal
or state bankruptcy, insolvency or other similar law now or hereafter in effect,
or the consent by such Person to the entry of an order for relief in an
involuntary case under any such law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for any
substantial part of its property, or the making by such Person of any general
assignment for the benefit of creditors, or the failure by such Person generally
to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

     "Insurance Policy" means any insurance policy maintained by an Obligor (or
on an Obligor's behalf by the Servicer) covering physical damage to any financed
equipment relating to any Contract or the related Obligor's ability to make
Scheduled Payments pursuant to such Contract.

     "Insurance Proceeds" means all payments made to the Servicer under an
Insurance Policy in respect of or in lieu of any amount that has or may become
due pursuant to any Contract, including any such amount received in respect of
any Scheduled Payment.

     "Interest Period," with respect to any interest which is calculated on the
basis of actual days elapsed means the period from and including one Payment
Date to but excluding the next following Payment Date, provided that the first
Interest Period will be the period from and including the Closing Date to but
excluding the first Payment Date.

     "Investment Earnings" means, with respect to any Payment Date, the
investment earnings (net of losses and investment expenses) on amounts on
deposit in the Trust Accounts to be deposited into the Collection Account on
such Payment Date pursuant to Section 5.01(b).

     "Issuer" means Advanta Equipment Receivables Series 2000-__ LLC and any
successors thereto.

     "Late Fees" means any interest or other amounts assessed by Advanta Bank
Corp. and paid by an Obligor in excess of the Scheduled Payment due to the
delinquency of such Scheduled Payment.

                                       14
<PAGE>   20

     "Lien" means a security interest, lien, charge, pledge, equity or
encumbrance of any kind with respect to any Contract other than mechanics' liens
and any liens which attach to such Contract by operation of law as a result of
any act or omission by the related Obligor.

     "Liquidation Proceeds" means, with respect to any Defaulted Contract, the
moneys collected in respect thereof, from whatever source (including any
Insurance Proceeds) during the Collection Period in which such Contract became a
Defaulted Contract, net of the sum of any amounts expended by the Servicer in
connection with such liquidation and any amounts required by law to be remitted
to the Obligor on such Defaulted Contract.

     "List of Contracts" as defined in the Indenture.

     "Monthly Class A-1 Note Interest" means, with respect to any Payment Date,
an amount equal to one-twelfth of the product of (a) the Class A-1 Note Interest
Rate and (b) the outstanding principal balance of the Class A-1 Notes as of the
close of business on the preceding Payment Date after giving effect to all
payments of principal made to the Class A-1 Noteholders on such preceding
Payment Date; provided, however, that with respect to the first Payment Date,
interest on the outstanding principal balance of the Class A-1 Notes will accrue
from and including the Closing Date to but excluding the _____ 2000 Payment Date
[and will be calculated on the basis of a 360-day year of twelve 30-day months.]

     "Monthly Class A-2 Note Interest" means, with respect to any Payment Date,
an amount equal to one-twelfth of the product of (a) the Class A-2 Note Interest
Rate and (b) the outstanding principal balance of the Class A-2 Notes as of the
close of business on the preceding Payment Date after giving effect to all
payments of principal made to the Class A-2 Noteholder on such preceding Payment
Date; provided, however, that with respect to the first Payment Date, interest
on the outstanding principal balance of the Class A-2 Notes will accrue from and
including the Closing Date to but excluding the __________ 2000 Payment Date
[and will be calculated on the basis of a 360-day year of twelve 30-day months.]

     "Monthly Class A-3 Note Interest" means, with respect to any Payment Date,
an amount equal to one-twelfth of the product of (a) the Class A-3 Note Interest
Rate and (b) the outstanding principal balance of the Class A-3 Notes as of the
close of business on the preceding Payment Date after giving effect to all
payments of principal made to the Class A-3 Noteholders on such preceding
Payment Date; provided, however, that with respect to the first Payment Date,
interest on the outstanding principal balance of the Class A-3 Notes will accrue
from and including the Closing Date to but excluding the _____ 2000 Payment Date
[and will be calculated on the basis of a 360-day year of twelve 30-day months.]

     "Monthly Class A-4 Note Interest" means, with respect to any Payment Date,
an amount equal to one-twelfth of the product of (a) the Class A-4 Note Interest
Rate and (b) the outstanding principal balance of the Class A-4 Notes as of the
close of business on the preceding Payment Date after giving effect to all
payments of principal made to the Class A-4 Noteholders on such preceding
Payment Date; provided, however, that with respect to the first Payment Date,
interest on the outstanding principal balance of the Class A-4 Notes will accrue
from and including the Closing Date to but excluding the _____ 2000 Payment Date
[and will be calculated on the basis of a 360-day year of twelve 30-day months.]

                                       15
<PAGE>   21

     "Monthly Class B Note Interest" means, with respect to any Payment Date, an
amount equal to one-twelfth of the product of (a) the Class B Note Interest Rate
and (b) the outstanding principal balance of the Class B Notes as of the close
of business on the preceding Payment Date after giving effect to all payments of
principal made to the Class B Noteholders on such preceding Payment Date;
provided, however, that with respect to the first Payment Date, interest on the
outstanding principal balance of the Class B Notes will accrue from and
including the Closing Date to but excluding the _____ 2000 Payment Date [and
will be calculated on the basis of a 360-day year of twelve 30-day months.]

     "Monthly Class C Note Interest" means, with respect to any Payment Date, an
amount equal to one-twelfth of the product of (a) the Class C Note Interest Rate
and (b) the outstanding principal balance of the Class C Notes as of the close
of business on the preceding Payment Date after giving effect to all payments of
principal made to the Class C Noteholders on such preceding Payment Date;
provided, however, that with respect to the first Payment Date, interest on the
outstanding principal balance of the Class C Notes will accrue from and
including the Closing Date to but excluding the _____ 2000 Payment Date [and
will be calculated on the basis of a 360-day year of twelve 30-day months.]

     "Monthly Principal Amount" means, with respect to any Payment Date, the
excess of (a) the aggregate outstanding principal amount of all Classes of Notes
as of the immediately preceding Payment Date after giving effect to all
principal payments on that day, over (b) the Aggregate Contract Principal
Balance as of the related Calculation Date.

     "Moody's" means Moody's Investors Service Inc.

     "Nonrecoverable Advances" means, with respect to any Contract, a Servicer
Advance which the Servicer has determined it will be unable to recover, in whole
or in part, with respect to such Contract.

     "Note Register" and "Note Registrar" have the meanings specified in Section
2.04 of the Indenture.

     "Noteholders' Class A-1 Interest Payment Amount" means, with respect to any
Payment Date, the sum of (a) the Monthly Class A-1 Note Interest for such
Payment Date and (b) the Class A-1 Overdue Interest for such Payment Date.

     "Noteholders' Class A-2 Interest Payment Amount" means, with respect to any
Payment Date, the sum of (a) the Monthly Class A-2 Note Interest for such
Payment Date and (b) the Class A-2 Overdue Interest for such Payment Date.

     "Noteholders' Class A-3 Interest Payment Amount" means, with respect to any
Payment Date, the sum of (a) the Monthly Class A-3 Note Interest for such
Payment Date and (b) the Class A-3 Overdue Interest for such Payment Date.

                                       16
<PAGE>   22

     "Noteholders' Class A-4 Interest Payment Amount" means, with respect to any
Payment Date, the sum of (a) the Monthly Class A-4 Note Interest for such
Payment Date and (b) the Class A-4 Overdue Interest for such Payment Date.

     "Noteholders' Class B Interest Payment Amount" means, with respect to any
Payment Date, the sum of (a) the Monthly Class B Note Interest for such Payment
Date and (b) the Noteholders' Class B Interest Carryover Shortfall for such
Payment Date.

     "Noteholders' Class C Interest Payment Amount" means, with respect to any
Payment Date, the sum of (a) the Monthly Class C Note Interest for such Payment
Date and (b) the Noteholders' Class C Interest Carryover Shortfall for such
Payment Date.

     "Notes" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes, the Class A-4 Notes, the Class B Notes, the Class C Notes and the Class D
Notes collectively.

     "Notes of a Class" or "Class of Notes" means all Notes included in Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes,
Class C Notes or Class D Notes, whichever is appropriate.

     "Obligor" with respect to any Contract means any Person which is an
obligor, lessee or guarantor thereof; provided, that in no event shall Advanta
Bank Corp. or the Transferor be construed to be the Obligor with respect to any
Contract due to the application of Section 3.02 or Section 4.07, as applicable.

     "Officers' Certificate" of any Person means a certificate on behalf of such
Person that is signed by any Vice President or more senior officer of such
Person and states that the certifications set forth in such certificate are
based upon the results of a due inquiry into the matters in question conducted
by or under the supervision of the signing officer and that the facts stated in
such certifications are true and correct to the best of the signing officer's
knowledge.

     "Offset Amount" means, in the event that (i) any Obligor requests that a
Security Deposit be applied as an offset against such Obligor's payment
obligations under a Contract or (ii) any Contract becomes a Defaulted Contract
and the Servicer demands that such Obligor remit to the Servicer an amount out
of the applicable Obligor's Security Deposit, an amount equal to the lesser of
(a) the amount of such Security Deposit and (b) the amount of all unpaid and
remaining Scheduled Payments as payment in respect of any unpaid Scheduled
Payments under the related Contract.

     "Opinion of Counsel" means one or more written opinions of counsel who may
be an employee of or counsel to the Transferor or the Servicer, which counsel
shall be acceptable to the Trustee and/or the Rating Agencies, as applicable.

     "Outstanding" has the meaning assigned to such term in Section 1.01 of the
Indenture.

     "Outstanding Amount" means the aggregate principal amount of all Notes, or
a Class of Notes, as applicable, Outstanding at the date of determination.

                                       17
<PAGE>   23

     "Payment Date" means _______, 2000 and the 15th day of each month
thereafter, or, if such day is not a Business Day, the next succeeding Business
Day.

     "Permitted Lien" means any Lien for federal, state, municipal or other
local Taxes and other governmental charges, so long as either (x) such Taxes or
governmental charges are not at the time due and payable or (y) the Transferor
is then contesting the validity of any such Taxes or charges in good faith by
appropriate proceedings that have staged the enforcement thereof and there has
been set aside on the appropriate entity's books any reserve that is required
under generally accepted accounting principles with respect to such Taxes or
charges.

     "Prepayment Amount" means with respect to any Contract: (a) the Contract
Principal Balance of such Contract (without any deduction for any security
deposit paid by the related Obligor, unless such security deposit has been
applied to the Contract Principal Balance pursuant to the Credit and Collection
Policy and deposited into the Collection Account) as of the date of reconveyance
of such Contract to the Issuer by the Trustee, plus (b) the product of (i) the
Contract Principal Balance as of the date of reconveyance and (ii) one-twelfth
of the Applicable Discount Rate.

     "Prepayment Proceeds" means all payments received in prepayment of a
Contract.

     "Principal Distribution Amount" means, with respect to any Payment Date,
the excess of (a) the aggregate outstanding principal amount of all Classes of
Notes as of the immediately preceding Payment Date after giving effect to all
principal payments on that preceding Payment Date, over (b) the Aggregate
Contract Principal Balance as of the related Calculation Date.

     "Rating Agencies" means _______________ and _______________. If no such
organization or successor is in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization or other comparable Person designated
by the Transferor, notice of which designation shall be given to the Trustee and
the Servicer.

     "Rating Agency Condition" means, with respect to any action, that each
Rating Agency shall have notified the Transferor, the Servicer, and the Trustee
in writing that such action will not result in a reduction or withdrawal of the
then current rating on any Class of Notes.

     "Recoveries" means all amounts received or recovered by the Servicer to be
applied against amount due on a Defaulted Contract; such amounts include, but
are not limited to (i) amounts received from the sale or other disposition of
the Financed Equipment or the sale of the Defaulted Contract, (ii) Insurance
Proceeds received as a result of the damage or destruction of the Financed
Equipment, or (iii) any other payments made by or on behalf of the defaulting
Obligor, including any amounts paid from a Security Deposit applied by the
Servicer as a Recovery.

     "Required Reserve Amount" means ___________________________.

     "Related Property" means all right, title and interest of the Transferor
in, to and under (a) the security interest in the Financed Equipment granted to
the Transferor, (b) any proceeds with respect to the Contracts from claims on
any physical damage, credit life or disability insurance

                                       18
<PAGE>   24

policies covering financed equipment or Obligors with respect to Financed
Equipment, as the case may be, and (c) the proceeds of any of the foregoing.

     "Reserve Account" means the account designated as such, established and
maintained pursuant to Section 5.01(a).

     "Reserve Account Initial Deposit" means the initial deposit by the
Transferor on the Closing Date of $__________.

     "Residual Interest" means the ownership interest, if any, in the Financial
Equipment and the Residual Receipts including, without limitation, the right to
receive and retain Residual Receipts as owner thereof.

     "Residual Receipts" means, with respect to any Collection Period, all
residual proceeds received by the Servicer, including, without limitation,
proceeds of the sale or re-lease of the Financed Equipment received by the
Servicer in the event the related Obligor does not purchase the Financed
Equipment at the end of the related Contract, any amounts collected by the
Servicer as judgments against a Obligor or others related to the failure of such
Obligor to pay any required amounts under the related Contract or to return the
Financed Equipment, including any amounts relating to a Security Deposit applied
by the Servicer as Residual Receipts, plus any other amounts which are received
by the Servicer and applied against the booked residual value of such Contract
in accordance with the Servicer's servicing standards during such Collection
Period, in each case as reduced by any reasonably incurred out-of-pocket
expenses incurred by the Servicer in enforcing such Contract or in liquidating
such Financed Equipment.

     "S&P" means Standard & Poor's Ratings Services.

     "Scheduled Payment" on a Contract means for any Contract, the stated
periodic payments (exclusive of any Excluded Amounts) set forth in the Contract
and due from the Obligor in the related Collection Period.

     "Servicer" means Advanta Bank Corp., as the servicer of the Contracts, and
each successor to Advanta Bank Corp. (in the same capacity) pursuant to Section
7.03 or 8.02.

     "Servicer Advance" means the amount, if any, which the Servicer at its
option advances with respect to Overdue Payments, in accordance with Section __
of this Agreement.

     "Servicer Default" means an event specified as such in Section 8.01.

     "Servicer's Certificate" means an Officers' Certificate of the Servicer
delivered pursuant to Section 4.09, substantially in the form of Schedule C or
in such other form that is acceptable to the Trustee and the Servicer.

     "Servicing Fee" means the fee payable to the Servicer for services rendered
during the respective Collection Period, determined pursuant to Section 4.08.

     "Servicing Fee Rate" means ___% per annum.

                                       19
<PAGE>   25

     "Tax" with respect to any Person means each tax, assessment or other
governmental charge or levy imposed upon such Person, its income, any
transaction in which it engages, or any of its properties, franchises or assets.

     "Transferor" means Advanta Bank Corp., a Utah corporation, and its
successors in interest to the extent permitted hereunder.

     "Trust Accounts" has the meaning assigned thereto in Section 5.01(b).

     "Trust Account Property" means the Trust Accounts, all monies, instruments,
securities, documents and other property held in or credited to any Trust
Account from time to time (whether in the form of deposit accounts, physical
property, book-entry securities, uncertificated securities, securities
entitlements or otherwise), including the Reserve Account Initial Deposit, and
all proceeds of the foregoing.

     "Trust Estate" means all money, instruments, documents, securities, general
intangibles and other property that are subject or intended to be subject to the
lien and security interest of the Indenture for the benefit of the Noteholders
(including, without limitation, all property and interests Granted (as defined
in the Indenture) to the Trustee), including all proceeds thereof.

     "Trust Officer" means, in the case of the Trustee, any Officer within the
Corporate Trust Office of the Trustee assigned to administer the Trustee's
duties under the Basic Documents.

     "Trustee" means ____________________, in its capacity as trustee under the
Indenture, its successors in interest and any successor trustee under the
Indenture.

     "UCC" has the meaning assigned thereto in Section 1.01 of the Indenture.

     Section 1.02. Other Definitional Provisions. (a) Capitalized terms used
herein and not otherwise defined herein have the meanings assigned to them in
the Indenture.

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

     (c)     As used in this Agreement and in any certificate or other document
             made or delivered pursuant hereto or thereto, accounting terms not
             defined in this Agreement or in any such certificate or other
             document, and accounting terms partly defined in this Agreement or
             in any such certificate or other document to the extent not
             defined, shall have the respective meanings given to them under
             generally accepted accounting principles. To the extent that the
             definitions of accounting terms in this Agreement or in any such
             certificate or other document are inconsistent with the meanings of
             such terms under generally accepted accounting principles, the
             definitions contained in this Agreement or in any such certificate
             or other document shall control.

     (d)     The words "hereof," "herein," "hereunder" and words of similar
             import when used in this Agreement shall refer to this Agreement as
             a whole and not to any

                                       20
<PAGE>   26

             particular provision of this Agreement; Section, Schedule and
             Exhibit references contained in this Agreement are references to
             Sections, Schedules and Exhibits in or to this Agreement unless
             otherwise specified; and the term "including" shall mean "including
             without limitation."

     (e)     The definitions contained in this Agreement are applicable to the
             singular as well as the plural forms of such terms and to the
             masculine as well as to the feminine and neuter genders of such
             terms.

     Section 1.03. Calculations. [For all purposes of this Agreement, interest
on the Class A-1 Notes will be calculated on the basis of actual days and a
360-day year. Interest on the Class A-2 Notes, Class A-3 Notes, Class A-4 Notes,
Class B Notes and Class C Notes will be calculated on the basis of a year of 360
days and twelve 30-day months.]

                                   ARTICLE II

                             CONVEYANCE OF CONTRACTS

     Section 2.01. Transfer of Conveyed Assets. In consideration of the Issuer's
delivery to or upon the order of the Transferor of $__________ and the increase
in the value of the Transferor's membership interest in the Issuer, the
Transferor does hereby sell, transfer, assign, set over, contribute, quitclaim,
and otherwise convey to the Issuer, without recourse (subject to the obligations
of the Transferor herein) all right, title and interest of the Transferor in and
to all accounts, general intangibles, instruments, chattel paper, documents,
money, letters of credit, advices of credit, deposit accounts, certificates of
deposit, investment property, goods and other property consisting of, arising
from or related to any of the following, whether now owned or hereafter
acquired:

     (a)     all right, title and interest of the Transferor, in and to the
             Contracts except the right to the Residual Interest and all moneys
             (including accrued interest) due or to become due, or received
             under the Contracts on or after the Cut-Off Date except Excluded
             Amounts and except any amounts received as Residual Receipts;

     (b)     the interest of the Transferor in the Trust Accounts and all
             monies, instruments, documents, securities and other property held
             in or credited thereto;

     (c)     the security interest, if any, of the Transferor in the Financed
             Equipment granted by Obligors pursuant to the Contracts;

     (d)     the interest of the Transferor in any proceeds with respect to the
             Contracts from claims on any physical damage, credit life or
             disability insurance policies covering financed equipment or
             Obligors with respect to financed equipment;

     (e)     the proceeds of any and all of the foregoing.

                                       21
<PAGE>   27

     Section 2.02. Closing. The conveyance of the Contracts shall take place at
the offices of Orrick, Herrington & Sutcliffe LLP, 3050 K Street, N.W.,
Washington, D.C. 20007, on the Closing Date, simultaneously with the issuance of
the Notes. Upon the acceptance by the Transferor of the Class D Note and the
proceeds of the sale of other Notes and upon the payment to the Transferor of
the net proceeds of the Notes, the ownership of each Contract transferred on
such date and the contents of the related Contract File is vested in the Issuer,
subject only to the lien of the Indenture. Notwithstanding the foregoing, the
assignment, transfer and conveyance set forth in Section 2.01 shall not
constitute and is not intended to result in the creation, or an assumption by
the Issuer of any obligation of the Transferor or any other Person in connection
with the Contracts or under any agreement or instrument relating thereto,
including any obligation to any Obligors or any Affiliate of or other Person to
whom the Transferor may delegate servicing duties or to insurers.

     Section 2.03. Books and Records.

     (a) In connection with the transfer, assignment, set-over and conveyance
     set forth in Section 2.01, the Transferor agrees to record and file, at its
     own expense, any financing statements (and continuation statements with
     respect to such financing statements when applicable) required to be filed
     with respect to the Contracts sold or to be sold by the Transferor
     hereunder, meeting the requirements of applicable state law in such manner
     and in such jurisdictions as are necessary under the applicable UCC to
     perfect the transfer and assignment of the Contracts to the Issuer, and to
     deliver a file-stamped copy of such financing statements or other evidence
     of such filings to the Issuer on or prior to the Closing Date (excluding
     such continuation and similar statements, which shall be delivered promptly
     after filing).

     (b) In connection with the sales and conveyances hereunder, the Transferor
     further agrees, at its own expense, on or prior to the Closing Date with
     respect to the Contracts to indicate on its books and records (including
     any computer files) that all of the Contracts have been sold to the Issuer
     pursuant to this Agreement. The Transferor further agrees not to alter the
     computer file designation referenced in this paragraph with respect to any
     Contract during the term of this Agreement unless and until such Contract
     becomes an Acquired Contract. The transfer of each Contract shall be
     reflected on the Transferor's balance sheets and other financial statements
     prepared in accordance with generally accepted accounting principles as a
     transfer of assets by the Transferor to the Issuer. The Transferor shall be
     responsible for maintaining, and shall maintain, a complete and accurate
     set of books and records and computer files for each Contract which shall
     be clearly marked to reflect the ownership of each Contract by the Issuer.

     Section 2.04. Grant of Security Interest. In the event that the Contracts
are held to continue to be property of the Transferor, then (i) this Agreement
also shall be deemed to be and hereby is a security agreement within the meaning
of the UCC, and (ii) the conveyance by the Transferor provided for in the
Agreement shall be deemed to be and hereby is a grant by the Transferor to the
Issuer of a security interest in and to all of the Transferor's right, title and
interest in, to and under all accounts, contract rights, general intangibles,
chattel paper, instruments, documents, money, deposit accounts, certificates of
deposit, goods, letters of credit, advices of credit, certificated securities
and uncertificated securities consisting of, arising from,

                                       22
<PAGE>   28

or relating to the Contracts and the Related Property, to secure the rights of
the Issuer under this Agreement and the obligations of the Transferor hereunder.
The Transferor and the Issuer shall, to the extent consistent with this
Agreement, take such actions (other than delivery of the original contracts) as
may be necessary to ensure that, if the conveyance of the Contracts and the
Related Property by the Transferor to the Issuer pursuant to this Agreement is
not deemed to be a sale, the security interest in the Contracts and the Related
Property created hereunder will be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term
of this Agreement.

                                   ARTICLE III

                                  THE CONTRACTS

     Section 3.01. Representations and Warranties of Transferor. The Transferor
makes the following representations and warranties as to the Contracts on which
the Issuer is deemed to have relied in acquiring the Contracts. Such
representations and warranties speak as of the execution and delivery of this
agreement, but shall survive the transfer and assignment of the Contracts to the
Issuer and the pledge thereof to the Trustee pursuant to the Indenture.

     (a) Title. It is the intention of the Transferor that the transfer and
     assignment herein contemplated constitute either (i) a sale of the
     Contracts or (ii) a grant of a perfected security interest therein from the
     Transferor to the Issuer and that the beneficial interest in and title to
     such Contracts not be part of the debtor's estate in the event of the
     filing of a bankruptcy petition by or against the Transferor under any
     bankruptcy law. No Contract has been sold, transferred, assigned or pledged
     by the Transferor to any Person other than the Issuer. Immediately prior to
     the transfer and assignment herein contemplated, the Transferor had good
     and marketable title to each Contract, free and clear of all Liens and
     rights of others and, immediately upon the transfer thereof, the Issuer
     shall have good and marketable title to each such Contract, free and clear
     of all Liens and rights of others or a first priority perfected security
     interest therein; and the transfer has been perfected, by the filing of
     appropriate financing statements pursuant to the UCC, under the UCC.

     (b) All Actions Taken. All actions (other than delivering the original
     Contract) necessary under the applicable UCC in any jurisdiction to be
     taken (i) to give the Issuer a first priority perfected security interest
     or ownership interest in the Contracts, and (ii) to give the Trustee a
     first priority perfected security interest therein (including, without
     limitation, UCC filings with the Nevada and Utah Secretaries of State) have
     been taken.

     (c) Location of Contract Files. The Contract Files are kept at the location
     specified in Schedule B hereto.

     (d) Eligible Contracts. Each of the Contracts is an Eligible Contract.

     (e) No Consents Required. All approvals, authorizations, consents, orders
     or other actions of any Person or of any Governmental Authority required in
     connection with the execution and delivery by the Transferor of this
     Agreement or any other Basic Document,

                                       23
<PAGE>   29
     the performance by the Transferor of the transactions contemplated by this
     Agreement or any other Basic Document and the fulfillment by the Transferor
     of the terms hereof or thereof, have been obtained or have been completed
     and are in full force and effect (other than approvals, authorizations,
     consents, orders or other actions which if not obtained or completed or in
     full force and effect would not have a material adverse effect on the
     Transferor or the Issuer or upon the collectibility of any Contract or upon
     the ability of the Transferor to perform its obligations under this
     Agreement).

     Section 3.02. Reacquisition by the Transferor Upon Breach.

     (a) The Transferor, the Servicer, or the Trustee, as the case may be, shall
inform the other parties to this Agreement, promptly, in writing, upon the
discovery of any breach of the Transferor's representations and warranties made
pursuant to Section 3.01. Unless any such breach shall have been cured by the
last day of the second month following the month of the discovery thereof by the
Transferor or receipt by the Transferor of written notice from the Trustee or
the Servicer of such breach, the Transferor shall be obligated to reacquire any
Receivable materially and adversely affected by any such breach as of such last
day (or, at the Transferor's option, as of the last day of the first month
following the month of the discovery).

     In consideration of the reacquisition of the Receivable, the Transferor
shall remit the Prepayment Amount in the manner specified in Section 5.03. The
sole remedy of each of the Issuer, the Trustee and the Noteholders with respect
to a breach of representations and warranties pursuant to Section 3.01 and the
agreement contained in this Section shall be to require the Transferor to
reacquire Receivables pursuant to this Section, subject to the conditions
contained herein. The Trustee shall have no duty to conduct any affirmative
investigation as to the occurrence of any condition requiring the reacquisition
of any Contract pursuant to this Section.

     (b) The Issuer shall execute such documents and instruments of transfer or
assignment and take other actions as shall reasonably be requested by the
Servicer to evidence the conveyance of such Receivable pursuant to this Section
3.02.

     Section 3.03. Duties of Servicer.

     (a)  Contract Files. The Servicer shall maintain such accurate and complete
          accounts, records and computer systems pertaining to each Contract
          File as shall enable itself and the Issuer to comply with this
          Agreement. In performing its duties, the Servicer shall act with
          reasonable care, using that degree of skill and attention that the
          Servicer exercises with respect to the contract files relating to all
          comparable contracts that the Servicer services for itself or others.
          The Servicer shall promptly report to the Issuer and the Trustee any
          failure on its part to maintain its accounts, records and computer
          systems as herein provided and promptly take appropriate action to
          remedy any such failure. Nothing herein shall be deemed to require an
          initial review or any periodic review by the Issuer or the Trustee.

     (b)  Access to Records. The Servicer shall notify the Trustee of any change
          in the location of its principal place of business in writing not
          later than 90 days after any such change. The Servicer shall make
          available to the Trustee, or duly

                                       24
<PAGE>   30

          authorized representatives, attorneys or auditors, a list of locations
          of the related accounts, records and computer systems maintained by
          the Servicer at such times as the Trustee shall instruct. The Trustee
          shall have access to such accounts, records and computer systems,
          after reasonable notice and during normal business hours.

     (c)  Safekeeping. The Servicer shall hold on behalf of the Issuer (i) all
          file stamped copies of UCC financing statements evidencing the
          security interest of Advanta Bank Corp. in Financed Equipment, and
          (ii) any and all documents, that Advanta Bank Corp. or the Transferor
          shall keep on file, in accordance with its customary procedures,
          relating to a Contract, an Obligor or Financed Equipment, and shall
          maintain such accurate and complete records pertaining to each
          Contract as shall enable the Issuer to comply with this Agreement.
          Upon instruction from the Trustee, the Servicer shall release any such
          UCC filing or other document to the Trustee, the Trustee's agent, or
          the Trustee's designee, as the case may be, at such place or places as
          the Trustee may designate, as soon as practicable.

                                   ARTICLE IV

                    ADMINISTRATION AND SERVICING OF CONTRACTS

     Section 4.01. Duties of Servicer. The Servicer, as agent for the Issuer (to
the extent provided herein), shall manage, service, administer and make
collections on the Contracts (other than Acquired Contracts) with reasonable
care, using that degree of skill and attention that the Servicer exercises with
respect to all comparable Contracts that it services for itself or others. The
Servicer's duties shall include calculating, billing, collection and posting of
all payments, responding to inquiries of Obligors on such Contracts,
investigating delinquencies, reporting tax information to Obligors (to the
extent required under the related Contracts), accounting for collections, and
furnishing monthly and annual statements to the Trustee with respect to
distributions. Subject to the provisions of Section 4.02, the Servicer shall
follow its customary standards, policies and procedures in performing its duties
as Servicer. Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Trustee and the Noteholders or any of them, any and all instruments
of satisfaction or cancellation, or partial or full release or discharge, and
all other comparable instruments, with respect to such Contracts or to the
Financed Equipment securing such Contracts. If the Servicer shall commence a
legal proceeding to enforce a Contract, the Issuer (in the case of a Contract
other than an Acquired Contract) shall thereupon be deemed to have automatically
assigned, solely for the purpose of collection, such Contract to the Servicer.
If in any enforcement suit or legal proceeding it shall be held that the
Servicer may not enforce a Contract on the ground that it shall not be a real
party in interest or a holder entitled to enforce such Contract, the Issuer
shall, at the Servicer's expense and direction, take steps to enforce such
Contract, including bringing suit in its name or the name of the Trustee or the
Noteholders. The Issuer shall upon the written request of the Servicer furnish
the Servicer with any powers of attorney and other documents reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

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<PAGE>   31

     Section 4.02. Collection of Contract Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Contracts as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
Contracts that it services for itself or others. In connection therewith, the
Servicer may grant extensions, rebates or adjustments on a Contract; provided,
however, that if the Servicer extends the date for final payment by the Obligor
of any Contract beyond the date one month prior to the Final Scheduled Payment
Date, it shall promptly acquire the Contract from the Issuer in accordance with
the terms of Section 4.07. The Servicer shall not agree to any reduction of the
underlying interest rate on any Contract or, subject to the foregoing, of the
amount of any Scheduled Payment on a Contract. Notwithstanding anything in this
Agreement to the contrary, any Recoveries with respect to a Contract shall be
paid to the Transferor, and any Defaulted Contracts shall be assigned by the
Trust to the Transferor, to the extent, in either case, that the Contract
Principal Balance of the Contract has been distributed as part of the Principal
Distribution Amount.

     Section 4.03. Realization upon Contracts. On behalf of the Issuer, the
Servicer shall use its customary servicing procedures, to repossess or otherwise
realize upon the Financed Equipment securing any Contract as to which the
Servicer shall have determined eventual payment in full is unlikely. The
Servicer shall follow such customary and usual practices and procedures as it
shall deem necessary or advisable in its servicing of comparable Contracts,
which may include selling the Financed Equipment at public or private sale. The
foregoing shall be subject to the provision that, in any case in which any item
of Financed Equipment shall have suffered damage, the Servicer shall not expend
funds in connection with the repair or the repossession of such Financed
Equipment unless it shall determine in its discretion that such repair and/or
repossession will increase the Liquidation Proceeds by an amount greater than
the amount of such expenses.

     Section 4.04. Servicer Advances. If an Obligor fails to remit its full
schedule payment on any Contract by the Calculation Date in the month in which
the payment is due, then no later than one Business Day preceding the following
Payment Date, the Servicer may, but is not required, to make a Servicer Advance
for such overdue Scheduled Payment in an amount equal to the Scheduled Payments,
or portion thereof, which were due but not received during the related
Collection Period (and not previously covered by an unreimbursed Servicer
Advance). On each Determination Date, the Servicer shall deliver to the Trustee
the Servicer's Certificate listing the aggregate amount of Scheduled Payments
not received for the immediately prior Collection Period as of the related
Calculation Date, together with a listing of which such unpaid Scheduled
Payments will not be the subject of a corresponding Servicer Advance. The
Servicer shall remit any Servicer Advances to the Collection Account.

     Section 4.05. Maintenance of Security Interests in Financed Equipment. The
Servicer shall, in accordance with its customary servicing procedures, take such
steps as are necessary to maintain perfection of the security interest created
by each Contract in the related Financed Equipment if the original Financed
Equipment had a cost greater than $25,000. The Servicer is hereby authorized to
take such steps as are necessary to re-perfect such security interest or to
maintain such perfected security interest on behalf of the Issuer and the
Trustee in the event of the relocation of Financed Equipment, or for any other
reason.

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<PAGE>   32

     Section 4.06. Covenants of Servicer. The Servicer shall not: (i) release
the financed equipment securing any Contract from the security interest granted
by such Contract in whole or in part except (A) in accordance with Section 4.03
above or (B) in the event of payment in full (including a prepayment) by the
Obligor thereunder; (ii) impair the rights of the Issuer, the Trustee or the
Noteholders in any Contract; or (iii) increase the number of Scheduled Payments
due under a Contract except in accordance with the terms thereof or the terms of
Section 4.02.

     Section 4.07. Acquisition by Servicer of Contracts upon Breach.

     (a) The Servicer shall inform the Trustee and the Transferor promptly, in
     writing, upon the discovery of any breach pursuant to Section 4.02, 4.05 or
     4.06. Unless the breach shall have been cured by the last day of the second
     month following such discovery (or, at the Transferor's election, the last
     day of the first following month), the Servicer shall acquire any Contract
     materially and adversely affected by such breach. If the Servicer takes any
     action pursuant to Section 4.02 that impairs the rights of the Issuer, the
     Trustee or the Noteholders in any Contract or as otherwise provided in
     Section 4.02, the Servicer shall acquire such Contract. In consideration of
     the acquisition of any such Contract pursuant to either of the two
     preceding sentences, the Servicer shall remit the Prepayment Amount in the
     manner specified in Section 5.03. Subject to Section 7.02, the sole remedy
     of any of the Issuer, Trustee and the Noteholders with respect to a breach
     pursuant to Section 4.02, 4.05 or 4.06 shall be to require the Servicer to
     acquire Contracts pursuant to this Section. The parties hereto intend that
     the Servicer will not intentionally breach or cause a breach pursuant to
     Section 4.02, 4.05 or 4.06 in order to provide direct or indirect assurance
     to the Transferor, the Trustee or the Noteholders, as applicable, against
     loss by reason of the bankruptcy or insolvency (or other credit condition)
     of, or default by, the Obligor on, or the uncollectibility of, any
     Contract.

     (b) The Issuer shall execute such documents and instruments of transfer or
     assignment and take other actions as shall reasonably be requested by the
     Servicer to evidence the conveyance of such Contract pursuant to this
     Section 4.07.

     Section 4.08. Servicing Fee. On each Payment Date, the Servicer shall be
entitled to receive the Servicing Fee in respect of the immediately preceding
Collection Period equal to the product of (a) one-twelfth of the Servicing Fee
Rate and (b) the Aggregate Contract Principal Balance as of the first day of
such preceding Collection Period. The Servicer shall also be entitled to any
Excluded Amounts with respect to Contracts, collected (from whatever source) on
the Contracts, which Excluded Amounts shall be paid to the Servicer pursuant to
Section 5.07.

     Section 4.09. Servicer's Certificate. On each Determination Date, the
Servicer shall deliver to the Trustee and the Issuer, a Servicer's Certificate
containing all information necessary to make the distributions pursuant to
Sections 5.04 and 5.05 for the Collection Period immediately preceding the date
of such Servicer's Certificate. The Trustee shall not be required to determine,
confirm or recalculate the information contained in the Servicer's Certificate.
Contracts to be acquired by the Servicer or to be reacquired by the Transferor
shall be identified by the Servicer by account number with respect to such
Contract as specified in Schedule A.

                                       27
<PAGE>   33

     Section 4.10. Annual Statement as to Compliance. The Servicer will deliver
to the Issuer and the Trustee, not later than 90 days after the end of each
fiscal year, an Officer's Certificate, dated as of the last day of such fiscal
year, stating that (a) a review of the activities of the Servicer during the
preceding 12-month period and of the Servicer's performance under this Agreement
has been made under such officer's supervision and (b) nothing has come to such
officer's attention to indicate that a Servicer Default (or an event which with
the giving of notice or passage of time, or both, would constitute a Servicer
Default) hereunder has occurred and is continuing on such last day of such
fiscal year or, if a Servicer Default or such other event has so occurred and is
continuing, specifying each such Servicer Default or such other event known to
such officer and the nature and status thereof, and the steps, if any, necessary
to remedy such Servicer Default or such other event.

     Section 4.11. Security Deposits. The Issuer acknowledges that the Security
Deposits are held by the Issuer on behalf of the Obligors and the Trustee. In
the event that (i) any Obligor requests that a Security Deposit be applied as an
offset against such Obligor's payment obligations under a Contract or (ii) any
Contract becomes a Defaulted Contract, the Servicer shall deliver to the Issuer
written demand that the Issuer remit to the Servicer, on the next Business Day,
out of the applicable Obligors's Security Deposit an amount equal to the Offset
Amount as payment in respect of any unpaid Scheduled Payments under the related
Contract. The Servicer shall deposit any Offset Amount so delivered to it into
the Collection Account no later than the end of the Collection Period in which
the Offset Amount is applied. The Servicer shall not be required to remit from
its own funds any Offset Amounts not received from the Issuer. The Servicer
shall notify the Issuer in writing of any demand it receives from an Obligor for
refund of such Obligor's Security Deposit at the end of the term of the related
Contract.

     In no event shall the Trustee or any Noteholder be liable to any Obligor
with respect to the Security Deposits. The Issuer shall indemnify and hold
harmless the Trustee and its officers, directors, agents and employees and the
Noteholders for any loss, cost and expense (including legal fees and expenses
incurred by such parties in connection with the prosecution of claims made in
connection therewith) suffered as a result of the Issuer's misappropriation or
misapplication of any Security Deposit received from an Obligor. This right of
indemnification shall survive the termination of this Agreement and any earlier
removal or resignation of the Trustee.

                                   ARTICLE V

                            DISTRIBUTIONS; ACCOUNTS;
                            STATEMENTS TO NOTEHOLDERS

     Section 5.01. Establishment of Trust Accounts

             (a)   (i) The Servicer, for the benefit of the Noteholders, shall
     establish and maintain in the name of the Trustee an Eligible Deposit
     Account (the "Collection Account"), bearing a designation clearly
     indicating that the funds deposited therein are held for the benefit of the
     Noteholders.

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<PAGE>   34

            (ii)   The Servicer, for the benefit of the Class A-1 Noteholders
     the Class A-2 Noteholders, the Class A-3 Noteholders, the Class A-4
     Noteholders, the Class B Noteholders and the Class C Noteholders, shall
     establish and maintain in the name of the Trustee an Eligible Deposit
     Account (the "Reserve Account"), bearing a designation clearly indicating
     that the funds deposited therein are held for the benefit of the Class A-1
     Noteholders, the Class A-2 Noteholders, the Class A-3 Noteholders, the
     Class A-4 Noteholders, the Class B Noteholders and the Class C Noteholders.

            (iii)  Funds on deposit in the Collection Account and the Reserve
     Account (collectively the "Trust Accounts") shall be invested by the
     Trustee in Eligible Investments selected by the Servicer; provided,
     however, it is understood and agreed that the Trustee shall not be liable
     for any loss arising from such investment in Eligible Investments. All such
     Eligible Investments shall be held by the Trustee for the benefit of the
     Noteholders; provided, however, that on each Payment Date all investment
     earnings (net of losses and investment expenses) on funds on deposit
     therein shall be deposited into the Collection Account and shall be deemed
     to constitute a portion of the Available Funds as directed in the Monthly
     Servicer Report. Other than as permitted by the Rating Agencies, funds on
     deposit in the Trust Accounts shall be invested in Eligible Investments
     that will mature so that such funds will be available at the close of
     business on the Business Day preceding the immediately following Payment
     Date; provided, however, that funds on deposit in Trust Accounts may be
     invested in Eligible Investments of the Trustee which may mature so that
     such funds will be available on the Payment Date. Notwithstanding the other
     provisions of this Agreement, the funds in the Collection Account or the
     Reserve Account may be invested in Eligible Investments that will not
     mature prior to the next Payment Date and are not to be sold to meet any
     shortfalls if the Rating Agency Condition is satisfied with respect to such
     investments. Funds deposited in a Trust Account on a Business Day which
     immediately precedes a Payment Date upon the maturity of any Eligible
     Investments are not required to be invested overnight, but if so invested,
     such investments must meet the conditions of the immediately preceding
     sentence.

             (b)   (i) The Trustee shall possess all right, title and interest
     in all monies, securities, instruments and other property on deposit from
     time to time in or credited to the Trust Accounts and in all proceeds
     thereof (including all income thereon) and all such monies, securities,
     instruments and other property (together with all earnings, dividends,
     distributions, income, issues, and profits relating thereto) shall be part
     of the Trust Estate. The Trust Accounts shall be under the sole dominion
     and control of the Trustee for the benefit of the Noteholders. If, at any
     time, any of the Trust Accounts ceases to be an Eligible Deposit Account,
     the Trustee (or the Servicer on its behalf) shall within 10 Business Days
     (or such longer period, not to exceed 30 calendar days, as to which each
     Rating Agency may consent) establish a new Trust Account as an Eligible
     Deposit Account and shall transfer any cash and/or any investments to such
     new Trust Account. So long as the Trustee is an Eligible Institution, any
     Trust Account may be maintained with it in an Eligible Deposit Account.

     Section 5.02. Collections. (a) Except as otherwise provided in this
Agreement, the Servicer and the Issuer shall deposit to the Collection Account
any Collections received by any

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<PAGE>   35

of them as soon as practicable (and, in any event, within two Business Days of
receipt and identification thereof) after their respective receipt thereof.
Notwithstanding anything else in this Agreement to the contrary, for so long as
Advanta Bank Corp. or an Affiliate thereof remains the Servicer and (x)
maintains a short-term debt rating of A-1 by S&P, P-1 by Moody's and F1 by Fitch
(if rated by Fitch) (or such other rating above A-1, P-1 or F1 (if rated by
Fitch), as the case may be), or (y) the Servicer has provided to the Trustee a
letter of credit covering collection risk of the Servicer, the Servicer and the
Issuer need not make the daily deposits of Collections into the Collection
Account as provided in the preceding sentence, but the Servicer may make a
single deposit in the Collection Account in immediately available funds not
later than 12:00 noon, New York City time, on the date which is the Business Day
immediately preceding each Payment Date following the Collection Period in which
the deposits were to have been made into the Collection Account.

     (b)     Furthermore, the Servicer is not required to deposit Advance
Payments into the Collection Account as received, but shall be required to
deposit Advance Payments or the appropriate portions thereof into the Collection
Account on the Business Day preceding the Payment Date following the Collection
Period in which such payment is due and owing.

     (c)     Notwithstanding the foregoing, the Trustee at the written direction
of the Servicer and/or the Servicer may deduct from amounts otherwise specified
for deposit to the Collection Account any amounts previously deposited by the
Trustee or the Servicer into the Collection but which are (i) subsequently
uncollectible as a result of dishonor of the instrument of payment for or on
behalf of the Obligor or (ii) later determined to have resulted from mistaken
deposits or which amounts were rebated to the Obligor.

     (d)     The Collection Account shall be under the sole dominion and control
of the Trustee for the benefit of the Noteholders; provided, however, that the
Trustee may conclusively rely on the information and instructions provided by
the Servicer in determining the amount of any withdrawals or payments to be made
from either such account for the purposes of carrying out the Trustee's duties
under this Agreement and the Indenture. Neither the Trustee nor the Servicer
shall have any right of setoff or banker's lien against, and no right to
otherwise deduct from, any funds held in the Collection Account for any amount
owed to it by the Servicer, the Obligors, the Trustee, or any Noteholder.

     (e)     The Trustee shall credit all net investment earnings on the
Collection Account, as collected, on a monthly basis to the Collection Account.

     Section 5.03. Additional Deposits. The Servicer and the Transferor shall
deposit or cause to be deposited in the Collection Account the Prepayment
Amounts with respect to Acquired Contracts and Prepayment Proceeds received from
Obligors as set forth in the immediately following sentence, and the Servicer
shall deposit in the Collection Account all amounts to be paid under Section
9.02 as set forth therein. The Servicer and the Transferor will deposit the
Prepayment Proceeds to the Collection Account as received, unless the Servicer
shall be permitted to make deposits monthly prior to each Payment Date pursuant
to Section 5.02, in which case such deposits shall be made in accordance with
such Section. The Servicer shall account for Prepayment Amounts paid by itself
and the Transferor separately.

                                       30

<PAGE>   36

     Section 5.04. Distributions.

     (a)     On or prior to each Determination Date, the Servicer shall
calculate all amounts required to determine the amounts to be paid as interest
and as principal on the notes and the amount, if any, to be deposited into the
Reserve Account.

     (b)     On the Payment Date, the Trustee (based solely on information
contained in the Servicer's Certificate) will be required to make the following
payments from the Available Funds (including amounts transferred from the
Reserve Account on such Payment Date) then on deposit in the Collection Account,
in the following order of priority:

     (i)     from the Available Funds, the fees and expenses of the Trustee then
due and payable (including legal fees and expenses);

     (ii)    from the Available Funds, to the Servicer, any Nonrecoverable
Advances;

     (iii)   from the Available Funds then remaining in the Collection Account
to the Servicer, the Servicing Fee then due;

     (iv)    from the Available Funds then remaining in the Collection Account,
to the Class A Noteholders, the Class A Note Interest for the related Interest
Accrual Period, pro rata based on interest due with respect to the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes;

     (v)     from the Available Funds then remaining in the Collection Account,
to the Class B Noteholders, the Class B Note Interest for the related Interest
Accrual Period;

     (vi)    from the Available Funds then remaining in the Collection Account,
to the Class C Noteholders, the Class C Note Interest for the related Interest
Accrual Period;

     (vii)    from Available Funds then remaining in the Collection Account,
until the Class A-1 Principal Balance has been reduced to zero, to the Class A-1
Noteholders, the Class A Principal Payment Amount; when the Class A-1 Principal
Balance has been reduced to zero, then until the Class A-2 Principal Balance has
been reduced to zero, to the Class A-2 Noteholders, the Class A Principal
Payment Amount; after the Class A-1 Principal Balance and the Class A-2
Principal Balance have been reduced to zero, then until the Class A-3 Principal
Balance has been reduced to zero, the Class A-3 Noteholders, the Class A
Principal Payment Amount; after the Class A-1 Principal Balance, the Class A-2
Principal Balance and the Class A-3 Principal Balance have been reduced to zero,
then until the Class A-4 Principal Balance has been reduced to zero, the Class
A-4 Noteholders, the Class A Principal Payment Amount;

     (viii)   until the Class B Principal Balance has been reduced to zero, to
the Class B Noteholders, from the Available Funds then remaining in the
Collection Account, the Class B Principal Payment Amount;

                                       31

<PAGE>   37

     (ix)   until the Class C Principal Balance has been reduced to zero, to the
Class C Noteholders, from the Available Funds then remaining in the Collection
Account, the Class C Principal Payment Amount;

     (x)    from the Available Funds then remaining in the Collection Account,
to the Reserve Account, the amount needed to increase the amount on deposit in
the Reserve Account to the Required Reserve Amount for such Payment Date;

     (xi)    then until the Class D Principal Balance has been reduced to zero,
to the Class D Noteholders, from the Available Fund then remaining in the
Collection Account, the Class D Monthly Principal Payment Amount;

     (xii)   if on such date the Class D Floor is greater than the Class D
Target Principal Amount, an amount equal to the Additional Principal for such
date shall be to the extent thereof, shall be paid sequentially to the Class A-2
Noteholders, Class A-3 Noteholders, Class B Noteholders, Class C Noteholders and
Class D Noteholders, in that order, until the principal amount of such Class has
been reduced to zero; and

     (xiii)  then to the Issuer any remaining Available Funds for the preceding
Collection Period on deposit in the Collection Account.

     (c)     All payments to Noteholders shall be made on each Payment Date to
each Noteholder of record on the related Record Date by check, or, if requested
in writing by such Noteholder, by wire transfer to the account designated in
writing delivered to the Trustee on or prior to the related Determination Date,
in immediately available funds, in amounts equal to such Noteholder's pro rata
share of such payment.

     Section 5.05. Reserve Account.

     (a)     On the Closing Date, the Transferor shall deposit the Reserve
Account Initial Deposit into the Reserve Account. The Servicer shall determine
the Specified Reserve Account Balance for each Payment Date.

     (b)     If the amount on deposit in the Reserve Account on any Payment Date
(after giving effect to all deposits or withdrawals therefrom on such Payment
Date) is greater than the Specified Reserve Account Balance for such Payment
Date, the Servicer shall instruct the Trustee to distribute the amount of such
excess to the Transferor; provided, however, that if, after giving effect to all
payments made on the Notes on such Payment Date, the Aggregate Contract
Principal Balance as of the end of the preceding Collection Period is less than
the sum of the outstanding principal balance the Notes, such excess amount shall
not be distributed to the Transferor and shall be retained in the Reserve
Account available for application in accordance with Sections 5.05(c) and (d).
Amounts properly distributed to the Transferor pursuant to this Section 5.05(b)
shall be deemed released from the Trust and the security interest therein
granted to the Trustee, and the Transferor shall in no event thereafter be
required to refund any such distributed amounts.

                                       32

<PAGE>   38

     (c)     In the event that the sum of the distributions to be made pursuant
to subsections 5.04(a)(i) through (ix) with respect to any Payment Date exceeds
the Available Funds otherwise available to be distributed in respect thereof on
such Payment Date, the Trustee shall withdraw from the Reserve Account on such
Payment Date, upon receipt of the instruction from the Servicer pursuant to
Section 5.04(b), to the extent of funds available therein, an amount equal to
such excess, and the Trustee shall use such amounts as Available Funds.

     (d)     Notwithstanding anything in this Section 5.05 to the contrary, if
an Event of Default under the Indenture occurs and the maturities of the Notes
are accelerated pursuant to Section 5.02 of the Indenture, amounts on deposit in
the Reserve Account shall be applied by the Trustee in accordance with Section
5.04(a) of the Indenture.

     Section 5.06. Statement to Noteholders. Provided that the Servicer shall
have delivered to the Trustee the Servicer's Certificate on the preceding
Determination Date containing all information necessary to enable the Trustee to
make all distributions pursuant to Section 5.04 (b) hereof, then on each Payment
Date, the Trustee will forward to each Rating Agency, and mail to each
Noteholder, a statement based solely on such Servicer's Certificate, not later
than such Payment Date, setting forth the following information (per $1,000 of
Class A-1 Initial Principal Balance, Class A-2 Initial Principal Balance, Class
A-3 Initial Principal Balance, Class A-4 Initial Principal Balance, Class B
Initial Principal Balance, Class C Initial Principal Balance (as the case may
be) as to (i) and (ii) below):

             (i)   The amount of such payment allocable to the Class A-1
     Principal Payment Amount, Class A-2 Principal Payment Amount, Class A-3
     Principal Payment Amount, Class B Principal Payment Amount, or the Class
     A-4 Principal Payment Amount, as applicable;

             (ii)  The amount of such payment allocable to such Class A-1 Note
     Interest, Class A-2 Note Interest, Class A-3 Note Interest, Class A-4 Note
     Interest, Class B Note Interest or Class C Note Interest, as applicable;

             (iii) The aggregate amount of fees and compensation received by
     the Servicer for the related Collection Period;

             (iv)  The aggregate Class A-1 Principal Balance, Class A-2
     Principal Balance, Class A-3 Principal Balance, Class A-4 Principal
     Balance, Class B Principal Balance and Class C Principal Balance, as
     applicable, and the Class A-1 Note Factor, Class A-2 Note Factor, Class A-3
     Note Factor, Class A-4 Note Factor, Class B Note Factor or Class C Note
     Factor, as applicable, after taking into account all distributions made on
     such Payment Date, the Aggregate Contract Principal Balance and the
     Collateral Factor;

             (v)   The total unreimbursed Servicer Advances with respect to the
     related Collection Period;

             (vi)  The aggregate Contract Principal Balance for all Contracts
     that became Defaulted Contracts during the related Collection Period,
     calculated immediately prior to the time such Contracts became Defaulted
     Contracts;

                                       33

<PAGE>   39

             (vii)  The amount on deposit in the Reserve Account;

             (viii) 31-60, 61-90 and greater than 90 days delinquencies as of
     the end of the related Collections Period; and

             (ix)   Prepayment Amounts received during the related Collection
     Period;

     provided, however, the Trustee may deliver a copy of the Servicer's
     Certificate to each Noteholder and Rating Agency in satisfaction of the
     requirement set forth in this Section.

     The Servicer and the Trustee shall furnish to each Noteholder, on written
request, such periodic, special or other reports or information not specifically
provided for herein, as shall be necessary, reasonable or appropriate with
respect to such Noteholder and at the expense of such requesting party all such
reports or information to be provided by and in accordance with such written
applicable instructions and directions as the Noteholder may reasonably require
and as the Servicer and the Trustee may reasonably be able to produce. A
Noteholder may, by written notice to the Trustee, waive receipt of any reports.
The Trustee's obligation under this provision shall only pertain to information
provided by the Servicer to the Trustee or otherwise in the Trustee's
possession.

                                   ARTICLE VI

                                 THE TRANSFEROR

     Section 6.01. Representations of Transferor. The Transferor makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Contracts. The representations speak as of the execution and
delivery of this Agreement and shall survive the transfer of the Contracts to
the Issuer and the pledge thereof to the Trustee pursuant to the Indenture.

     (a)     Organization and Good Standing. The Transferor is duly organized
     and validly existing as a corporation in good standing under the laws of
     the State of Utah with the power and authority to own its properties and to
     conduct its business as such properties are currently owned and such
     business is presently conducted, and had at all relevant times, and has,
     the power, authority and legal right to acquire and own the Contracts.

     (b)     Due Qualification. The Transferor is duly qualified to do business
     as a foreign corporation in good standing, and has obtained all necessary
     licenses and approvals, in all jurisdictions in which the failure to so
     qualify or to obtain any such license or approval would render any Contract
     unenforceable that would otherwise be enforceable by the Transferor.

     (c)     Power and Authority. The Transferor has the power and authority to
     execute and deliver this Agreement and to carry out its terms; the
     Transferor has full power and

                                       34

<PAGE>   40

     authority to transfer and assign the Contracts and other property to be
     transferred and assigned to and deposited with the Issuer and the
     Transferor has duly authorized such transfer and assignment to the Issuer
     by all necessary corporate action; and each of the execution, delivery and
     performance of this Agreement has been duly authorized by the Transferor by
     all necessary corporate action.

     (d)     FDIC Insurance. The deposits of the Transferor are insured by the
     Federal Deposit Insurance Corporation.

     (e)     Binding Obligation. This Agreement constitutes a legal, valid and
     binding obligation of the Transferor enforceable in accordance with its
     terms, except to the extent that such enforcement may be subject to
     bankruptcy, insolvency, reorganization, moratorium or other similar laws
     now or hereafter in effect relating to creditors' rights generally, and the
     remedy of specific performance and injunctive relief may be subject to
     certain equitable defenses and to the discretion of the court before which
     any proceeding therefor may be brought.

     (f)     No Violation. The consummation of the transactions contemplated by
     this Agreement and the fulfillment of the terms hereof do not (i) conflict
     with, result in any breach of any of the terms and provisions of, or
     constitute (with or without notice or lapse of time) a default under, the
     certificate of incorporation or by-laws of the Transferor, or any
     indenture, agreement or other instrument to which the Transferor is a party
     or by which it is bound; (ii) result in the creation or imposition of any
     Lien upon any of its properties pursuant to the terms of any such
     indenture, agreement or other instrument (other than pursuant to the Basic
     Documents); or (iii) violate any law or, to the best of the Transferor's
     knowledge, any order, rule or regulation applicable to the Transferor of
     any court or of any federal or state regulatory body, administrative agency
     or other governmental instrumentality having jurisdiction over the
     Transferor or its properties.

     (g)     No Proceedings. There are no proceedings or investigations pending,
     or to the Transferor's best knowledge, threatened, before any court,
     regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over the Transferor or its properties:
     (i) asserting the invalidity of this Agreement, the Indenture, the Notes or
     any of the other Basic Documents, (ii) seeking to prevent the issuance of
     the Notes or the consummation of any of the transactions contemplated by
     this Agreement, the Indenture or any of the other Basic Documents; (iii)
     seeking any determination or ruling that might materially and adversely
     affect the performance by the Transferor of its obligations under, or the
     validity or enforceability of, this Agreement, the Indenture, the Notes or
     any other of the Basic Documents or (iv) which might adversely affect the
     Federal or state income tax attributes of the Notes.

     Section 6.02. Liability of Transferor; Indemnities. The Transferor shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Transferor under this Agreement.

     (a)     The Transferor shall indemnify, defend and hold harmless the
     Issuer, the Trustee and their officers, directors and agents from and
     against any taxes that may at any time be

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<PAGE>   41

     asserted against the Issuer or the Trustee or their respective officers,
     directors, and agents with respect to the transfer of the Contracts to the
     Issuer or the issuance and original sale of the Notes, including any sales,
     gross receipts, general corporation, tangible personal property, privilege
     or license taxes and costs and expenses in defending against the same.

     (b)     The Transferor shall indemnify, defend and hold harmless the Issuer
     and the Trustee and their officers, directors, and agents from and against
     any loss, liability or expense incurred by reason of (i) the Transferor's
     willful misfeasance, bad faith or negligence in the performance of its
     duties under this Agreement, or by reason of reckless disregard of its
     obligations and duties under this Agreement and (ii) the Transferor's or
     the Issuer's violation or alleged violation of Federal or state securities
     laws in connection with the offering and sale of the Notes.

             Indemnification under this Section shall survive the resignation or
removal of the Trustee and the termination of this Agreement and shall include
reasonable fees and expenses of counsel and expenses of litigation. If the
Transferor shall have made any indemnity payments pursuant to this Section 6.02
and the Person to or on behalf of whom such payments are made thereafter shall
collect any of such amounts from others, such Person shall promptly repay such
amounts collected from others to the Transferor, without interest.

     Section 6.03. Merger or Consolidation of, or Assumption of the Obligations
of, Transferor. Any corporation (i) into which the Transferor may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Transferor shall be party, or (iii) succeeding to the business of the
Transferor substantially as a whole, which corporation in any of the foregoing
cases executes an agreement of assumption to perform every obligation of the
Transferor under this Agreement and all other Basic Documents, will be the
successor to the Transferor without the execution or filing of any document or
the taking of any further act on the part of any of the parties to this
Agreement, anything in this Agreement notwithstanding; provided, however, that
immediately after giving effect to such transaction, no representation or
warranty made pursuant to Section 6.01 shall have been breached.

     Section 6.04. Limitation on Liability of Transferor and Others. The
Transferor and any director or officer or employee or agent of the Transferor
may rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Transferor shall not be under any obligation to appear
in, prosecute or defend any legal action that shall not be incidental to its
obligations under this Agreement, and that in its opinion may involve it in any
expense or liability.

     Section 6.05. Transferor May Own Notes. The Transferor and any Affiliate
thereof may in its individual or any other capacity become the owner or pledgee
of Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4
Notes, the Class B Notes or the Class C Notes with the same rights as it would
have if it were not the Transferor or an Affiliate thereof, except as expressly
provided herein (including, without limitation, the definition of "Outstanding"
contained in the Indenture) or in any Basic Document. The Transferor agrees that
it shall not transfer any interest in Notes (including the Class D Notes) or any
rights hereunder without

                                       36

<PAGE>   42

delivering an Opinion of Counsel that such transfer will not [cause the Issuer
to be taxable as a corporation for federal income tax purposes.]

     Section 6.06. Tax Treatment. The Transferor has structured this Agreement,
the Indenture and any related agreement with the intention that the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class
B Notes [and the Class C Notes] qualify under applicable federal, state, and
local income and franchise tax law as indebtedness of the Transferor secured by
the Contracts and the Issuer shall be disregarded as a separate entity for such
purposes. The Transferor, the Servicer, and the Issuer agree to treat and to
take no action inconsistent with the treatment of the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes [and the
Class C Notes] (or any beneficial interest therein) as such indebtedness for
purposes of federal, state, and local income and franchise tax law and for
purposes of any other tax imposed on or measured by income.

                                  ARTICLE VII

                                  THE SERVICER

     Section 7.01. Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Contracts. The representations speak as of the execution and delivery of the
Agreement (or as of the date a Person (other than the Trustee) becomes Servicer
pursuant to Sections 7.03 and 8.02, in the case of a successor to the Servicer)
and shall survive the transfer of the Contracts to the Issuer and the pledge
thereof to the Trustee pursuant to the Indenture.

     (a)     Organization and Good Standing. The Servicer is a corporation duly
     organized, validly existing and in good standing under the laws of the
     state if Utah and has the corporate power and authority to own its
     properties and to conduct the business in which it is currently engaged,
     and had at all relevant times, and has, the power, authority and legal
     right to acquire, own, transfer and service the Contracts.

     (b)     Power and Authority. The Servicer has the power and authority to
     execute and deliver this Agreement and to carry out its terms; and the
     execution, delivery and performance of this Agreement have been duly
     authorized by the Servicer by all necessary corporate action.

     (c)     Binding Obligation. This Agreement constitutes a legal, valid and
     binding obligation of the Servicer enforceable in accordance with its
     terms, except that such enforcement may be subject to bankruptcy,
     insolvency, reorganization, moratorium or other similar laws now or
     hereafter in effect relating to creditors' rights generally, and the remedy
     of specific performance and injunctive relief may be subject to certain
     equitable defenses and to the discretion of the court before which any
     proceeding therefor may be brought.

     (d)     No Violation. The consummation of the transactions contemplated by
     this Agreement and the fulfillment of the terms hereof shall not conflict
     with, result in any

                                       37

<PAGE>   43

     breach of any of the terms and provisions of, nor constitute (with or
     without notice or lapse of time) a default under, the certificate of
     incorporation or by-laws of the Servicer, or any material indenture,
     agreement or other instrument to which the Servicer is a party or by which
     it is bound; nor result in the creation or imposition of any material Lien
     upon any of its properties pursuant to the terms of any such indenture,
     agreement or other instrument (other than this Agreement); nor violate any
     material law or, to the best of the Servicer's knowledge, any material
     order, rule or regulation applicable to the Servicer of any court or of any
     Federal or state regulatory body, administrative agency or other
     governmental instrumentality having jurisdiction over the Servicer or its
     properties.

     (e)     No Proceedings. To the Servicer's best knowledge, there are no
     proceedings or investigations pending, or threatened, before any court,
     regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over the Servicer or its properties:
     (i) asserting the invalidity of this Agreement, the Indenture, the Notes or
     any of the other Basic Documents; (ii) seeking to prevent the issuance of
     the Notes or the consummation of any of the transactions contemplated by
     this Agreement, the Indenture or any of the other Basic Documents; (iii)
     seeking any determination or ruling that might materially and adversely
     affect the performance by the Servicer of its obligations under, or the
     validity or enforceability of, this Agreement, the Indenture, the Notes or
     any of the other Basic Documents ; or (iv) relating to the Servicer and
     which might adversely affect the Federal or state income tax attributes of
     the Notes.

     (f)     No Consents Required. All approvals, authorizations, consents,
     orders or other actions of any Person or of any Governmental Authority
     required in connection with the execution and delivery by the Servicer of
     this Agreement or any other Basic Document, the performance by the Servicer
     of the transactions contemplated by this Agreement or any other Basic
     Document and the fulfillment by the Servicer of the terms hereof or
     thereof, have been obtained or have been completed and are in full force
     and effect (other than approvals, authorizations, consents, orders or other
     actions which if not obtained or completed or in full force and effect
     would not have a material adverse effect on the Servicer or the Issuer or
     upon the collectibility of any Contract or upon the ability of the Servicer
     to perform its obligations under this Agreement).

     Section 7.02. Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement.

     (a)     The Servicer shall indemnify, defend and hold harmless the Issuer,
     the Trustee, the Transferor and the Noteholders and any of the officers,
     directors and agents of the Issuer, the Trustee and the Transferor from and
     against any and all costs, expenses, losses, damages, claims and
     liabilities, arising out of or resulting from the use, ownership or
     operation by the Servicer or any Affiliate (other than the Transferor)
     thereof of any Financed Equipment.

     (b)     The Servicer shall indemnify, defend and hold harmless the Issuer,
     the Trustee and the Transferor and their respective officers, directors and
     agents from and against (i) any taxes that may at any time be asserted
     against any such Person with respect to the

                                       38

<PAGE>   44

     transactions contemplated herein, including any sales, gross receipts,
     general corporation, tangible personal property, privilege or license taxes
     (but, in the case of the Issuer or the Transferor, not including any taxes
     asserted with respect to, and as of the date of, the transfer of the
     Contracts to the Issuer or the issuance and original sale of the Notes, or
     Federal or other income taxes arising out of distributions on the Notes)
     and (ii) costs and expenses in defending against the same.

     (c)     The Servicer shall indemnify, defend and hold harmless the Issuer,
     the Trustee, the Transferor and the Noteholders and any of the officers,
     directors and agents of the Issuer, the Trustee and the Transferor from and
     against any and all costs, expenses, losses, claims, damages and
     liabilities to the extent that any such cost, expense, loss, claim, damage
     or liability arose out of, or was imposed upon any such Person through, the
     negligence, willful misfeasance or bad faith of the Servicer in the
     performance of its duties under this Agreement, or by reason of reckless
     disregard of its obligations and duties under this Agreement or on account
     of the failure of the Servicer to be qualified to do business as a foreign
     corporation or to have obtained a license or approval in any jurisdiction.

     (d)     The Servicer shall indemnify, defend and hold harmless the Trustee
     and their respective officers, directors, employees and agents (which are
     retained pursuant to the Indenture or this Agreement) from and against all
     costs, expenses, losses, claims, damages and liabilities arising out of or
     incurred in connection with the acceptance or performance of the trusts and
     duties herein, in the case of the Trustee, the Indenture, except to the
     extent that any such cost, expense, loss, claim, damage or liability is
     otherwise reimbursed.

     (e)     The Servicer shall pay any and all taxes levied or assessed upon
     all or any part of the Trust Estate, other than any taxes asserted with
     respect to, and as of the date of, the transfer of the Contracts to the
     Issuer or the Transferor or the issuance and original sale of the Notes, or
     Federal or other income taxes arising out of distributions on the Notes.

     For purposes of this Section, in the event of the termination of the rights
and obligations of Advanta Bank Corp. (or any successor thereto pursuant to
Section 7.03) as Servicer pursuant to Section 8.01, or a resignation by such
Servicer pursuant to this Agreement, such Servicer shall be deemed to be the
Servicer pending appointment of a successor Servicer (other than the Trustee)
pursuant to Section 8.02.

     Indemnification under this Section shall survive the resignation or removal
of the Trustee or the termination of this Agreement. Indemnification under this
Section shall include reasonable fees and expenses of counsel and expenses of
litigation if the indemnitee prevails in any action for which indemnification is
sought. If the Servicer shall have made any indemnity payments pursuant to this
Section and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person shall promptly repay such
amounts to the Servicer, without interest.

     Section 7.03. Merger or Consolidation of, or Assumption of the Obligations
of, Servicer. Any corporation (i) into which the Servicer may be merged or
consolidated, (ii)

                                       39

<PAGE>   45

resulting from any merger or consolidation to which the Servicer shall be a
party or (iii) succeeding to the business of the Servicer, shall be the
successor to the Servicer hereunder without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding, and such corporation in any of the foregoing cases
shall execute an agreement of assumption, in a form reasonably satisfactory to
the Trustee, agreeing to perform every obligation of the Servicer hereunder. Any
corporation succeeding to the business of the Servicer by merger, consolidation
or otherwise shall be a corporation organized and existing under the laws of the
United States or any State and have a tangible net worth of at least
$20,000,000. The Servicer shall provide prompt written notice of the
effectiveness of any such event to the Issuer and the Trustee.

     In addition to the provisions set forth in the preceding paragraph, if the
Servicer is Advanta Bank Corp. or an Affiliate thereof, the Servicer may
transfer all of its duties, obligations, rights and privileges as Servicer under
this Agreement to an Affiliate of Advanta Bank Corp. provided that (i) the then
Servicer shall give 30 days prior written notice of such change to the Trustee,
the Issuer and the entity assuming the servicer position shall execute an
agreement of assumption, in a form reasonably satisfactory to the Trustee
agreeing to perform every obligation of the Servicer hereunder and (ii) the
entity assuming the servicer position shall deliver to the Trustee written
evidence that the Rating Agency Condition has been satisfied. Upon the execution
and delivery to the Trustee of such written assumption and delivery of evidence
of the satisfaction of the Rating Agency Condition and delivery to the Trustee
of an Opinion of Counsel to the effect that all conditions precedent to such
assumption have been complied with and that such assumption is authorized and
permitted by this Agreement, the Affiliate of Advanta Bank Corp. shall become
the Servicer hereunder without any further act on the part of any of the parties
hereto and the entity serving as Servicer prior to such assumption shall be
relieved of all duties hereunder and shall cease to be the Servicer. Any
affiliate of Advanta Bank Corp. which becomes a Servicer under this paragraph
shall be required to have a tangible net worth of at least $20,000,000.

     Section 7.04. Limitation on Liability of Servicer and Others. No directors,
officers, employees or agents of the Servicer shall be under any liability to
the Trustee, the Issuer or any of the Noteholders, except as provided in this
Agreement, for any action taken or for refraining from the taking of any action
pursuant to this Agreement or for errors in judgment. The Servicer and any
director or officer or employee or agent of the Servicer may rely in good faith
on any document of any kind prima facie properly executed and submitted by any
Person respecting any matters arising hereunder. Except as provided herein, the
Servicer shall not be under any obligation to appear in, prosecute or defend any
legal action that is not incidental to its duties to service the Trust Estate in
accordance with this Agreement and that in its opinion may involve it in any
expense or liability; provided, however, that the Servicer may take any such
action that is reasonable and that may be necessary or desirable in respect of
this Agreement and the rights and duties of the parties hereto and the interests
of the Trustee hereunder. In the event the Servicer takes such action, the
reasonably incurred legal expenses and costs of such action and any liabilities
resulting therefrom shall be expenses, costs and liabilities of the Trust
Estate, and the Servicer shall be entitled to be reimbursed therefor in
accordance with the terms hereof.

     Section 7.05. Advanta Bank Corp. Not To Resign as Servicer. Except as
provided in Section 7.03, Advanta Bank Corp. shall not resign from the
obligations and duties hereby

                                       40

<PAGE>   46

imposed on it as Servicer under this Agreement except upon determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law (if it is also determined that such
determination may not be reversed). Notice of any such determination permitting
the resignation of Advanta Bank Corp. shall be communicated to the Trustee at
the earliest practicable time (and, if such communication is not in writing,
shall be confirmed in writing at the earliest practicable time) and any such
determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Trustee concurrently with or promptly after such notice. No
such resignation shall become effective until the Trustee or a successor
Servicer shall have assumed the responsibilities and obligations of Advanta Bank
Corp. in accordance with Section 8.02.

                                  ARTICLE VIII

                                     DEFAULT

     Section 8.01. Servicer Default. If any one of the following events (a
"Servicer Default") shall occur and be continuing:

     (a)     any failure by the Servicer (i) to deliver to the Trustee for
     deposit in any of the Trust Accounts any required payment or (ii) to direct
     the Trustee to make any required distribution therefrom in either case that
     shall continue unremedied for a period of five Business Days after written
     notice of such failure is received by the Servicer from the Trustee or
     after discovery of such failure by an officer of the Servicer; or

     (b)     failure on the part of the Servicer duly to observe or to perform
     in any material respect any other covenants or agreements of the Servicer
     set forth in this Agreement or any other Basic Document, which failure
     shall (i) materially and adversely affect the rights of holders of the
     investor notes and (ii) continues unremedied for a period of 60 days after
     the date on which written notice of such failure, requiring the same to be
     remedied, shall have been given (A) to the Servicer by the Trustee or (B)
     to the Servicer, and to the Trustee by the Holders of Class A-1 Notes,
     Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class
     C Notes evidencing not less than 25% of the Outstanding Amount of the Class
     A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes
     and Class C Notes; or

     (c)     an Insolvency Event occurs with respect to the Servicer;

then, and in each and every case, so long as the Servicer Default shall not have
been remedied, either the Trustee, or the Holders of Class A-1 Notes, Class A-2
Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C Notes
evidencing not less than 50% of the Outstanding Amount of the Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C
Notes, by notice then given in writing to the Servicer (and to the Trustee if
given by the Class A-1 Noteholders, Class A-2 Noteholders, Class A-3
Noteholders, Class A-4 Noteholders, Class B Noteholders or Class C Noteholders)
may terminate all the rights and obligations (other than the obligations set
forth in Section 7.02 hereof) of the Servicer under this Agreement (a "Servicer
Termination Event"). On or after the receipt by the Servicer of such

                                       41

<PAGE>   47

written notice, all authority and power of the Servicer under this Agreement,
whether with respect to the Notes or the Contracts or otherwise, shall, without
further action, pass to and be vested in the Trustee or such successor Servicer
as may be appointed under Section 8.02; and, without limitation, the Trustee is
hereby authorized and empowered to execute and deliver, on behalf of the
predecessor Servicer, as attorney-in-fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement of the Contracts and related
documents, or otherwise. The predecessor Servicer shall cooperate with the
successor Servicer and the Trustee in effecting the termination of the
responsibilities and rights of the predecessor Servicer under this Agreement,
including the transfer to the successor Servicer for administration by it of all
cash amounts that shall at the time be held by the predecessor Servicer for
deposit, or shall thereafter be received by it with respect to a Contract. All
reasonable costs and expenses (including reasonable attorneys' fees) incurred in
connection (x) with transferring the computer or other records to the successor
Servicer in the form requested and (y) amending this Agreement to reflect such
succession as Servicer pursuant to this Section shall be paid by the predecessor
Servicer upon presentation of reasonable documentation of such costs and
expenses. Upon receipt of notice in writing from the majority Noteholders or the
Servicer of the occurrence of a Servicer Default, the Trustee shall give notice
thereof to the Rating Agencies.

     Section 8.02. Appointment of Successor.

     (a)     Upon the Servicer's receipt of notice of termination, pursuant to
     Section 8.01 or the Servicer's resignation in accordance with the terms of
     this Agreement, the predecessor Servicer shall continue to perform its
     functions as Servicer under this Agreement, in the case of termination,
     only until the date specified in such termination notice or, if no such
     date is specified in a notice of termination, until receipt of such notice
     and, in the case of resignation, until the earlier of (x) the date 45 days
     from the delivery to the Trustee of written notice of such resignation (or
     written confirmation of such notice) in accordance with the terms of this
     Agreement and (y) the date upon which the predecessor Servicer shall become
     unable to act as Servicer, as specified in the notice of resignation and
     accompanying Opinion of Counsel. In the event of the Servicer's termination
     hereunder, the Trustee shall appoint a successor Servicer, and the
     successor Servicer shall accept its appointment by a written assumption in
     form acceptable to the Trustee (such acceptance not to be unreasonably
     withheld). In the event that a successor Servicer has not been appointed at
     the time when the predecessor Servicer has ceased to act as Servicer in
     accordance with this Section, pending the appointment of and acceptance by
     a successor Servicer, the Trustee without further action shall
     automatically be appointed and serve as the successor Servicer and the
     Trustee shall be entitled to the Servicing Fee and the Servicer's Yield.
     Notwithstanding the above, the Trustee shall, if it shall be legally unable
     so to act, appoint or petition a court of competent jurisdiction to
     appoint, any established institution who has demonstrated its capability to
     service the Contracts to the satisfaction of the Trustee, as the successor
     to the Servicer under this Agreement, having a net worth of not less than
     $20,000,000 and whose regular business shall include the servicing of
     Contracts comparable with the Contracts, as the successor to the Servicer
     under this Agreement.

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<PAGE>   48

     The Trustee, acting in its capacity as successor Servicer, and any
successor Servicer appointed by it, shall have no responsibility or obligation
(i) for any breach by any predecessor Servicer of any of its representations and
warranties, or (ii) any acts or omissions of Advanta Bank Corp. or any other
Servicer prior to its termination or resignation.

     (b)     Upon appointment, the successor Servicer (including the Trustee
     acting as successor servicer) shall be the successor in all respects to the
     predecessor Servicer and shall be subject to all the responsibilities,
     duties and liabilities arising thereafter relating thereto placed on the
     predecessor Servicer and shall be entitled to the Servicing Fee and the
     servicer's yield accruing or collected, as the case may be, after the
     successor Servicer becomes the Servicer, as set forth above, and all the
     rights granted to the predecessor Servicer by the terms and provisions of
     this Agreement.

     (c)     Subject to the Trustee's right to appoint a successor Servicer
     pursuant to Section 8.02(a) after the Trustee has become the Servicer
     pending the appointment of and acceptance by a successor Servicer, the
     Servicer may not resign unless it is prohibited from serving as such by
     law.

     (d)     Notwithstanding any other provision of this Agreement, neither the
     Trustee nor any successor Servicer shall be deemed in default, breach or
     violation of this Agreement as a result of the failure of Advanta Bank
     Corp. or any Servicer (i) to cooperate with the Trustee or any successor
     Servicer pursuant to Section 8.01, (ii) to deliver funds required to be
     deposited to any Trust Account, or (iii) to deliver files or records
     relative to the Contracts as may be requested by the Trustee or successor
     Servicer.

     Section 8.03. Notification to Noteholders. Upon any termination of, or
appointment of a successor to, the Servicer pursuant to this Article VIII, the
Trustee shall give prompt written notice thereof to the Noteholders and to the
Rating Agencies in the manner provided for in the Indenture.

     Section 8.04. Waiver of Past Defaults. The Holders of the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes
and the Class C Notes, evidencing not less than a majority of the Outstanding
Amount of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes, the Class B Notes and the Class C Notes may, on behalf of all
Noteholders, waive in writing any default by the Servicer in the performance of
its obligations hereunder and its consequences, except a default in making any
required deposits to or payments from any of the Trust Accounts in accordance
with this Agreement. Upon any such waiver of a past default, such default shall
cease to exist, and any Servicer 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
thereto.

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                                   ARTICLE IX

                              OPTIONAL ACQUISITION

     Section 9.01. Optional Acquisition of All Contracts. On any Payment Date
following any Calculation Date as of which the Aggregate Contract Principal
Balance is less than 10% of the Initial Aggregate Contract Principal Balance,
the Servicer shall have the option to require the Transferor to reacquire all of
the Contracts and the Transferor agrees, that if the Servicer elects to cause
the redemption of the remaining Notes, that the Transferor will reacquire all of
the remaining Contracts at a price sufficient to provide to the Issuer funds
sufficient to pay the redemption price and accrued interest to the redemption
date. Any such redemption of the Notes shall be as provided in Section 10.01 of
the Indenture.

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

     Section 10.01 Amendment. The Agreement may be amended by the Transferor,
the Servicer and the Issuer, with the consent of the Trustee, but without the
consent of any of the Noteholders, to cure any ambiguity, to correct or
supplement any provisions in this Agreement or for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions in
this Agreement or of modifying in any manner the rights of the Noteholders;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel delivered to the Trustee, adversely affect in any material respect the
interests of any Noteholder.

     This Agreement may also be amended from time to time by the Transferor, the
Servicer and the Issuer, with the consent of the Trustee, the consent of the
Holders of Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes, the Class B Notes and the Class C Notes evidencing not less than a
majority of the Outstanding Amount of the Class A-1 Notes, the Class A-2 Notes,
the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C
Notes 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 Noteholders; provided, however, that no such amendment
shall (a) increase or reduce in any manner the amount of, or accelerate or delay
the timing of, collections of payments on Contracts or distributions that shall
be required to be made for the benefit of the Noteholders or (b) reduce the
aforesaid portion of the Outstanding Amount of the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the
Class C Notes, the Holders of which are required to consent to any such
amendment, without the consent of the Holders of all the outstanding Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class
B Notes and the Class C Notes.

     Prior to the execution of any such amendment or consent, the Servicer shall
furnish written notification of the substance of such amendment or consent to
each of the Rating Agencies. Promptly after the execution of any such amendment
or consent, the Servicer shall furnish written notification of the substance of
such amendment or consent to the Trustee.

                                       44

<PAGE>   50

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

     Prior to the execution of any amendment to this Agreement the Trustee shall
be entitled to receive and rely upon an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement. The
Trustee may, but shall not be obligated to, enter into any such amendment which
affects the Trustee's, as applicable, own rights, duties or immunities under
this Agreement or otherwise.

     Section 10.02 Protection of Title to Trust Estate.

     (a)     The Transferor shall take all actions necessary (other than
     delivery of the original Contracts), and the Issuer shall cooperate with
     the Transferor, if applicable, to perfect, and maintain perfection of, the
     interests of the Issuer and the Trustee in the Contracts. In addition,
     without limiting the rights of the Trustee or the Issuer specified in the
     immediately preceding sentence, the Transferor shall execute and file and
     cause to be executed and filed such financing statements and continuation
     statements, all in such manner and in such places as may be required by law
     fully to perfect, maintain, and protect the interest of the Issuer and the
     interest of the Trustee in the Contracts and in the proceeds thereof. The
     Transferor shall deliver (or cause to be delivered) to the Trustee
     file-stamped copies of, or filing receipts for, any document filed as
     provided above, as soon as available following such filing.

     (b)     The Transferor shall not change its name, identity or corporate
     structure in any manner that would make any financing statement or
     continuation statement filed in accordance with paragraph (a) above or
     otherwise seriously misleading within the meaning of Section 9-402(7) of
     the UCC, unless it shall have given the Trustee at least five days' prior
     written notice thereof and, if applicable, shall have timely filed
     appropriate amendments to any and all previously filed financing statements
     or continuation statements (so that the interest of the Issuer or the
     Trustee is not adversely affected).

     (c)     Each of the Transferor and the Servicer shall have an obligation to
     give the Trustee at least 60 days' prior written notice of any relocation
     of its principal executive office if, as a result of such relocation, the
     applicable provisions of the UCC would require the filing of any amendment
     of any previously filed financing or continuation statement or of any new
     financing statement and shall promptly, if applicable, file any such
     amendment. The Servicer shall at all times maintain each office from which
     it shall service Contracts, and its principal executive office, within the
     United States of America.

     (d)     The Servicer shall maintain accounts and records as to each
     Contract accurately and in sufficient detail to permit (i) 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) and (ii)
     reconciliation between payments or Recoveries on (or with respect to) each
     Contract and the amounts from time to time deposited in the Collection
     Account in respect of such Contract.

                                       45

<PAGE>   51

     (e)     The Servicer shall maintain its contract management system so that,
     from and after the time of transfer under this Agreement of the Contracts,
     the Servicer's contract management system (including any backup archives)
     that refer to a Contract shall indicate clearly the interest of the Issuer
     (which interest has been acquired from the Transferor) and the Trustee in
     such Contract and that such Contract is owned by or has been pledged to the
     Issuer and has been pledged to the Trustee. Indication of the Issuer's
     interest (which interest has been acquired from the Transferor) and the
     Trustee's interest in a Contract shall be deleted from or modified on the
     Servicer's contract management system when, and only when, the related
     Contract shall have been paid in full or reacquired.

     (f)     If at any time the Transferor or the Servicer shall propose to
     sell, grant a security interest in, or otherwise transfer any interest in
     Contracts comparable with the Contracts, to any prospective purchaser,
     lender or other transferee, the Servicer shall give to such prospective
     purchaser, lender or other transferee computer tapes, records or printouts
     (including any restored from backup archives) that, if they shall refer in
     any manner whatsoever to any Contract, shall indicate clearly that such
     Contract has been transferred and is owned by or has been pledged to the
     Issuer and has been pledged to the Trustee.

     (g)     The Servicer shall permit the Trustee and its agents at any time
     following reasonable notice and during normal business hours to inspect,
     audit and make copies of and abstracts from the Servicer's records
     regarding any Contract.

     (h)     Upon reasonable request, the Servicer shall furnish to the Trustee,
     within five Business Days, a list of all Contracts (by contract number and
     name of Obligor) then held by the Trustee, together with a reconciliation
     of such list to the List of Contracts and to each of the Servicer's
     Certificates furnished before such request indicating Contracts removed
     from the lien of the Indenture.

     (i)     The Servicer shall deliver to the Trustee promptly after the
     execution and delivery of this Agreement and of each amendment thereto, an
     Opinion of Counsel either (A) stating that, in the opinion of such counsel,
     all actions (other than delivering the original Contracts) have been taken
     that are necessary fully to perfect the interests of the Trustee in the
     Contracts, and reciting the details of such action or referring to prior
     Opinions of Counsel in which such details are given, or (B) stating that,
     in the opinion of such counsel, no such action shall be necessary to
     perfect such interest.

Section 10.03. Notices. All demands, notices and communications upon or to the
Transferor, the Servicer, the Issuer, the Trustee or the Rating Agencies under
this Agreement shall be in writing, personally delivered or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given upon
receipt (a) in the case of the Transferor, to Advanta Bank Corp.,
__________________________________, (b) in the case of the Servicer, to Advanta
Bank Corp., ______________________________, (c) the case of the Issuer, to
Advanta Equipment Receivables Series 2000-__ LLC; (d) in the case of the
Trustee, Corporate Trust Office, (e) in the case of ________, to
________________________ and (f) in the case of ______________________, to
____________________________or, as

                                       46

<PAGE>   52

to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

     Section 10.04. Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 6.04 and 7.03 and as provided
in the provisions of this Agreement concerning the resignation of the Servicer,
this Agreement may not be assigned by the Transferor or the Servicer.

     Section 10.05. Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Transferor, the Servicer, the
Issuer, the Trustee and the Noteholders, and nothing in this Agreement, whether
express or implied, shall be construed to give to any other Person any legal or
equitable right, remedy or claim in the Trust Estate or under or in respect of
this Agreement or any covenants, conditions or provisions contained herein.

     Section 10.06. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 10.07. Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 10.08. Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

     Section 10.09. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS, REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 10.01. Assignment to Trustee. The Transferor hereby acknowledges
and consents to any mortgage, pledge, assignment and grant of a security
interest by the Issuer to the Trustee pursuant to the Indenture for the benefit
of the Noteholders of all right, title and interest of the Issuer in, to and
under the Contracts and the other property constituting the Trust Estate and/or
the assignment of any or all of the Issuer's rights and obligations hereunder to
the Trustee.

     Section 10.11. Nonpetition Covenants

     (a)     Notwithstanding any prior termination of this Agreement, the
     Servicer (in its capacity as Transferor or Servicer) and the Trustee shall
     not at any time with respect to the Issuer, acquiesce, petition or
     otherwise invoke or cause the Issuer to invoke the process of any court or
     government authority for the purpose of commencing or sustaining a case
     against the Issuer under any Federal or state bankruptcy, insolvency or
     similar law or appointing a receiver, liquidator, assignee, trustee,
     custodian, sequestrator

                                       47

<PAGE>   53

     or other similar official of the Issuer or any substantial part of its
     property, or ordering the winding up or liquidation of the affairs of the
     Issuer.

     (b)     Notwithstanding any prior termination of this Agreement, the
     Servicer, the Issuer and the Trustee shall not at any time with respect to
     the Transferor, acquiesce, petition or otherwise invoke or cause the
     Transferor to invoke the process of any court or government authority for
     the purpose of commencing or sustaining a case against the Transferor under
     any Federal or state bankruptcy, insolvency or similar law or appointing a
     receiver, liquidator, assignee, trustee, custodian, sequestrator or other
     similar official of the Transferor or any substantial part of its property,
     or ordering the winding up or liquidation of the affairs of the Transferor.

     Section 10.12. Limitation of Liability of Trustee

     (a)     Notwithstanding anything contained herein to the contrary, this
Agreement has been acknowledged and accepted by ____________________ not in its
individual capacity but solely as Trustee, and in no event shall
____________________ have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in any of
the certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer.

                           [Signature page to follow]

                                       48

<PAGE>   54

     IN WITNESS WHEREOF, the parties hereto have caused this Transfer and
Servicing Agreement to be duly executed by their respective officers as of the
day and year first above written.

                                        ADVANTA EQUIPMENT RECEIVABLES
                                          SERIES 2000-__ LLC

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

                                        ADVANTA BANK CORP.,
                                           Transferor and Servicer,

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

Acknowledged and Accepted:

-------------------------------,
not in its individual capacity
but solely as Trustee

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

              [Signature Page to Transfer and Servicing Agreement]

<PAGE>   55

                                                                      SCHEDULE A

                                List of Contracts

                              (Deemed Incorporated)

                                      A-1

<PAGE>   56

                                                                      SCHEDULE B

                           Location of Contract Files

                                      B-1

<PAGE>   57

                                                                      SCHEDULE C

                             Servicer's Certificate

                                (to be provided)

                                      C-1

<PAGE>   58

                                                                      SCHEDULE D

                              Officer's Certificate

                                (to be provided)

                                      D-1

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