Document:

EXHIBIT 4.3

<PAGE>

                     SUBSEQUENT CONTRACT TRANSFER AGREEMENT

                                     between

                          DVI RECEIVABLES CORP. XVIII,
                                   as Company

                                       and

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

                          Dated as of November 1, 2002

ALL RIGHTS IN AND TO THIS AGREEMENT ON THE PART OF DVI RECEIVABLES XVIII, L.L.C.
HAVE BEEN ASSIGNED AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF U.S. BANK
NATIONAL ASSOCIATION (AS SUCCESSOR TO U.S. BANK TRUST NATIONAL ASSOCIATION), AS
TRUSTEE, UNDER THE INDENTURE DATED AS OF NOVEMBER 1, 2002 FOR THE BENEFIT OF THE
PERSONS REFERRED TO THEREIN.

<PAGE>

<TABLE>
<CAPTION>
                                                           TABLE OF CONTENTS

                                                                                                                PAGE
<S>                                                                                                             <C>

                                                         ARTICLE I DEFINITIONS

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

                                       ARTICLE II PROCEDURES FOR PURCHASES OF ELIGIBLE CONTRACTS

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

                                 ARTICLE III REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

   Section 3.01         Organization and Good Standing............................................................5
   Section 3.02         Authorization.............................................................................5
   Section 3.03         Binding Obligation........................................................................5
   Section 3.04         No Violation..............................................................................6
   Section 3.05         No Proceedings............................................................................6
   Section 3.06         Approvals.................................................................................6
   Section 3.07         Ability to Perform........................................................................6
   Section 3.08         Equipment and Contracts...................................................................6
   Section 3.09         Principal Executive Office; Legal Name....................................................7
   Section 3.10         No Prior Assignments......................................................................7
   Section 3.11         Valid Sale; Fair Consideration............................................................8
   Section 3.12         Nonconsolidation..........................................................................8
   Section 3.13         Ordinary Course; No Insolvency............................................................9
   Section 3.14         Assets and Liabilities....................................................................9
   Section 3.15         Transfer Taxes............................................................................9
   Section 3.16         Ability to Pay Debts......................................................................9
   Section 3.17         Bulk Transfer Provisions..................................................................9

                                                   ARTICLE IV CONDITIONS TO PURCHASE

   Section 4.01         Representations and Warranties...........................................................10

                                              ARTICLE V FURTHER COVENANTS OF THE COMPANY

   Section 5.01         Books and Records........................................................................10
   Section 5.02         Preservation of Office...................................................................10
   Section 5.03         Liens....................................................................................10
   Section 5.04         No Bankruptcy Petition Against the Issuer or Managing Member.............................11
   Section 5.05         Protection of Right, Title and Interest..................................................11

                                                         i
<PAGE>

                                                 TABLE OF CONTENTS
                                                    (continued)

                                                                                                               PAGE

                                        ARTICLE VI REPRESENTATIONS AND COVENANTS OF THE ISSUER

   Section 6.01         Nonconsolidation.........................................................................11
   Section 6.02         No Bankruptcy Petition Against the Company...............................................12

                                                       ARTICLE VII SUBSTITUTION

   Section 7.01         Substitution.............................................................................12
   Section 7.02         Notice of Substitution...................................................................13
   Section 7.03         Contributor's and Company's Subsequent Obligations.......................................13
   Section 7.04         Usage of Predecessor Contracts in Calculation............................................14

                                                      ARTICLE VIII MISCELLANEOUS

   Section 8.01         Amendment................................................................................14
   Section 8.02         Effect of Invalidity of Provisions.......................................................15
   Section 8.03         Notices..................................................................................15
   Section 8.04         Entire Agreement.........................................................................15
   Section 8.05         Survival.................................................................................15
   Section 8.06         Consent to Service.......................................................................16
   Section 8.07         Jurisdiction Not Exclusive...............................................................16
   Section 8.08         Construction.............................................................................16
   Section 8.09         Further Assurances.......................................................................16
   Section 8.10         Third Party Beneficiaries................................................................16
   Section 8.14         Headings and Cross-References............................................................17
   Section 8.15         Costs and Expenses.......................................................................18
   Section 8.16         Confidential Information.................................................................18
   Section 8.17         Statutory References.....................................................................18
   Section 8.18         Execution in Counterparts................................................................18
   Section 8.19         Power of Attorney........................................................................18
</TABLE>

   EXHIBITS

   EXHIBIT A -  SUBSEQUENT CONTRACT TRANSFER FORM
   EXHIBIT B  - FORM OF RE-ASSIGNMENT OF ISSUER'S CERTIFICATE
   EXHIBIT C -  FORM OF OFFICER'S CERTIFICATE PURSUANT TO ARTICLE VII

                                                        ii

<PAGE>

         SUBSEQUENT CONTRACT TRANSFER AGREEMENT ("Agreement") dated as of
November 1, 2002, between DVI RECEIVABLES XVIII, L.L.C., a Delaware limited
liability company (the "Issuer"), and DVI RECEIVABLES CORP. XVIII, a Delaware
corporation (the "COMPANY").

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

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

         WHEREAS, pursuant to the Indenture (the "INDENTURE"), dated as of the
date hereof, by and between the Issuer and U.S. BANK NATIONAL ASSOCIATION (as
successor to U.S. Bank Trust National Association) (the "TRUSTEE"), the Issuer
intends to issue its Series 2002-2 Notes, which will be collateralized by a
pledge by the Issuer to the Trustee, on behalf of the Noteholders and the Swap
Provider of all of the Issuer's right, title and interest in, to and under the
Trust Property.

         WHEREAS, to facilitate the issuance of its Series 2002-2 Notes, the
Issuer and the Company desire to enter into this Agreement.

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

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01      DEFINITIONS.

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

<PAGE>

                                   ARTICLE II
                 PROCEDURES FOR PURCHASES OF ELIGIBLE CONTRACTS

         Section 2.01      TRANSFER.

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

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

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

         Section 2.02      SUBSTITUTE CONTRACTS.

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

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

                                       2
<PAGE>

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

         Section 2.03      INTENT OF PARTIES; SECURITY INTEREST.

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

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

         Section 2.05      GRANT OF SECURITY INTEREST.

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

                                       3
<PAGE>

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

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

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

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

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

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

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

                                       4
<PAGE>

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

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

                                  ARTICLE III
            REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY
            --------------------------------------------------------

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

         Section 3.01      ORGANIZATION AND GOOD STANDING.

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

         Section 3.02      AUTHORIZATION.

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

         Section 3.03      BINDING OBLIGATION.

         This Agreement has been, and each SCTF will be, duly and validly
executed and delivered by the Company and will constitute a legal, valid and
binding obligation of the Company, enforceable against the Company in accordance
with its respective terms, subject to

                                       5
<PAGE>

bankruptcy, insolvency and other laws of general application affecting the
rights of creditors and equitable principles (whether considered in a proceeding
at law or in equity).

         Section 3.04      NO VIOLATION.

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

         Section 3.05      NO PROCEEDINGS.

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

         Section 3.06      APPROVALS.

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

         Section 3.07      ABILITY TO PERFORM.

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

         Section 3.08      EQUIPMENT AND CONTRACTS.

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

         (a) the sale to the Issuer of the Company's interest in such
Contract(s) transferred on such date and the assignment of the Company's
security interest, or grant of a first priority perfected security interest, as
the case may be, in the Equipment related thereto pursuant to

                                       6
<PAGE>

Section 2.01, Section 2.02 or Section 2.05 hereof constitutes a valid transfer
of all of the Company's right, title and interest in such Company Assets or a
grant of a first-priority perfected (except for Equipment for which the Original
Equipment Cost is less than $25,000, with respect to which the Company shall be
deemed to have granted a valid security interest) security interest therein from
the Company in favor of the Issuer, free and clear of any and all claims,
charges, liens or security interests created by the Company or any of its
affiliates (other than the rights of each Obligor under the Contract to which
such Obligor is a party, claims, charges, liens or security interests to be
discharged on the Contribution Date related thereto and any liens for taxes,
assessments, and (x) governmental charges or levies not yet due and payable and
(y) liens imposed by law arising in the ordinary course of business which secure
obligations that are not yet due and payable, in the case of (x) and (y) to the
extent no enforcement, collection, execution, levy or foreclosure proceeding
shall have been commenced);

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

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

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

         Section 3.09      PRINCIPAL EXECUTIVE OFFICE; LEGAL NAME.

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

         Section 3.10      NO PRIOR ASSIGNMENTS.

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

                                       7
<PAGE>

         Section 3.11      VALID SALE; FAIR CONSIDERATION.

         This Agreement effects a valid assignment, transfer, contribution and
conveyance of the Company's interest in the Company Assets, enforceable against
creditors of the Company. The consideration received by the Transferor upon the
sale of the Company Assets to the Issuer is fair consideration having value
equivalent to or in excess of the value for such Company Assets.

         Section 3.12      NONCONSOLIDATION.

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

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

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

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

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

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

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

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

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

                                       8
<PAGE>

         Section 3.13      ORDINARY COURSE; NO INSOLVENCY.

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

         Section 3.14      ASSETS AND LIABILITIES.

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

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

         Section 3.15      TRANSFER TAXES.

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

         Section 3.16      ABILITY TO PAY DEBTS.

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

         Section 3.17      BULK TRANSFER PROVISIONS.

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

                                       9
<PAGE>

                                   ARTICLE IV
                             CONDITIONS TO PURCHASE

         Section 4.01      REPRESENTATIONS AND WARRANTIES.

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

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

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

                                   ARTICLE V
                        FURTHER COVENANTS OF THE COMPANY

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

         Section 5.01      BOOKS AND RECORDS.

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

         Section 5.02      PRESERVATION OF OFFICE.

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

         Section 5.03      LIENS.

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

                                       10
<PAGE>

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

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

         Section 5.05      PROTECTION OF RIGHT, TITLE AND INTEREST.

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

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

         (c) The Company shall not amend its certificate of incorporation
without the prior written consent of the Rating Agencies.

                                   ARTICLE VI
                   REPRESENTATIONS AND COVENANTS OF THE ISSUER

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

         Section 6.01      NONCONSOLIDATION.

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

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

                                       11
<PAGE>

         (b) the Issuer maintains separate company records and books of account
from Contributor and otherwise observes company formalities and has a separate
business office from the Company;

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

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

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

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

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

         Section 6.02      NO BANKRUPTCY PETITION AGAINST THE COMPANY.

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

                                  ARTICLE VII
                                  SUBSTITUTION

         Section 7.01      SUBSTITUTION.

         In the event that the Contributor or the Servicer contributes,
transfers, sells or assigns a Substitute Contract to the Company pursuant to
Section 7.01 of the Contribution and Servicing Agreement, the Company
simultaneously therewith, hereby sells, transfers, conveys and assigns any such
Substitute Contract and the security interest in the related Equipment to the
Issuer (or, in the case of Fair Market Value Leases, grant a valid security
interest in the related Equipment).

                                       12
<PAGE>

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

         Section 7.02      NOTICE OF SUBSTITUTION.

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

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

         Upon any substitution of Contracts in accordance with the provisions of
this Section 7, the Company's obligations hereunder with respect to the
Predecessor Contract shall cease but the Contributor and the Company shall each
thereafter have the same obligations with respect to the

                                       13
<PAGE>

Substitute Contract substituted as it has with respect to all other Contracts
subject to the terms hereof.

         Section 7.04      USAGE OF PREDECESSOR CONTRACTS IN CALCULATION.

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

                                  ARTICLE VIII
                                  MISCELLANEOUS

         Section 8.01      AMENDMENT.

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

         (b) This Agreement may also be amended from time to time by the Issuer
and the Company, with the consent of the Rating Agencies and the Majority of
Voting Rights, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement; PROVIDED,
HOWEVER, that no such amendment shall (a) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, collections of payments on
Contracts or payments that are required to be made on any Note without the
consent of the Holder of such Note, (b) reduce the aforesaid percentage required
to consent to any such amendment or (c) adversely affect in any material respect
the interests of the Trustee, any Noteholder or the Swap Provider without, in
each instance, the consent of each entity so affected.

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

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

                                       14
<PAGE>

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

         Section 8.02      EFFECT OF INVALIDITY OF PROVISIONS.

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

         Section 8.03      NOTICES.

         All demands, notices and communications hereunder shall be in writing,
personally delivered or mailed by certified mail-return receipt requested, or
delivered by courier, or delivered by facsimile to a facsimile and telephone
number provided by the relevant Person in writing, with subsequent telephone
confirmation of the receipt thereof, and shall be deemed to have been duly given
upon receipt (a) in the case of the Trustee, at the following address: 180 East
Fifth Street, St. Paul, Minnesota 55101, Attention: Structured Finance,
Facsimile: (651) 244-0089, (b) in the case of the Servicer, at the following
address: 2500 York Road, Jamison, Pennsylvania 18929, Attention: Securitization
Manager, Facsimile: (215) 488-5416, (c) in the case of the Issuer, 2500 York
Road, Jamison, Pennsylvania 18929, Attn: Securitization Manager, Facsimile (215)
488-5416, with a copy to the Servicer at the address set forth in clause (b)
above, (d) in the case of the Company at the following address: 2500 York Road,
Jamison, Pennsylvania 18929, Attention: Securitization Manager, Facsimile: (215)
488-5416, (e) in the case of the Rating Agencies, to the following addresses:
Fitch, Inc., 55 East Monroe Street, Chicago, Illinois 60603, Attention: Mr.
Joseph Tuczak, Facsimile: (312) 368-2069; and Moody's Investors Service, Inc.,
99 Church Street, 4th Fl., New York, New York 10007, Attention: ABS Monitoring
Department, Facsimile: (212) 553-3856 and (f) in the case of the Swap Provider,
at the contact information provided in the Swap Agreement, or at other such
respective address as shall be designated by such party in a written notice to
the other parties. Any notice required or permitted to be mailed to a Noteholder
shall be given by first class mail, postage prepaid, at the address of such
Holder as shown in the Note Register. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Noteholder receives such notice.

         Section 8.04      ENTIRE AGREEMENT.

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

         Section 8.05      SURVIVAL.

                                       15
<PAGE>

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

         Section 8.06      CONSENT TO SERVICE.

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

         Section 8.07      JURISDICTION NOT EXCLUSIVE.

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

         Section 8.08      CONSTRUCTION.

         The headings in this Agreement are for convenience only and are not
intended to influence its construction. References to Sections, Schedules and
Exhibits in this Agreement are to the Sections of and Schedules and Exhibits to
this Agreement. Any Schedules and Exhibits are hereby incorporated into and form
a part of this Agreement. In this Agreement, the singular includes the plural,
the plural the singular, the words "and" and "or" are used in the conjunctive or
disjunctive as the sense and circumstances may require and the word "including"
means "including, but not limited to." Unless otherwise stated in this
Agreement, in the computation of a period of time from a specified date to a
later specified date, the word "from" means "from and including" and the words
"to" and "until" each means "to but excluding".

         Section 8.09      FURTHER ASSURANCES.

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

         Section 8.10      THIRD PARTY BENEFICIARIES.

         Each Noteholder, the Swap Provider and the Trustee shall be an express
third party beneficiary of this Agreement. The obligations of the Company
hereunder may be assigned by the Issuer to the Trustee under the Indenture. The
Company acknowledges that the Issuer intends, pursuant to the Indenture, to
pledge the Company Assets, together with its respective rights under this
Agreement to the Trustee on the Closing Date, each Contribution Date and each
Substitution Date, with respect to each Contract and each Substitute Contract.
The Company acknowledges and consents to such conveyance and waives any further
notice thereof and covenants and agrees that the representations and warranties
of the Company contained in this Agreement and the rights of the Issuer
hereunder, are intended to benefit the Trustee, the Swap

                                       16
<PAGE>

Provider and each Securityholder. In furtherance of the foregoing, the Company
covenants and agrees to perform its duties and obligations hereunder, in
accordance with the terms hereof and for the benefit of the Trustee, the Swap
Provider and the Noteholders and that, notwithstanding anything to the contrary
in this Agreement, the Company shall be directly liable to the Trustee
(notwithstanding any failure by the Servicer or the Issuer to perform its duties
and obligations hereunder, or under the Indenture or Contribution and Servicing
Agreement), and that the Trustee may enforce the duties and obligations of the
Company under this Agreement against the Company for the benefit of the Swap
Provider and the Securityholder.

         Section 8.11      GOVERNING LAW.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS RULES REGARDING
CONFLICT OF LAWS.

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

         THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, EACH OF THE ISSUER AND THE COMPANY HEREBY
AGREED TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITH THE
STATE OF NEW YORK. EACH OF THE PARTIES HERETO IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, AND
EACH PARTY IRREVOCABLY HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON
CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY
OF THE AFOREMENTIONED COURTS AND CONSENT TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

         Section 8.13      WAIVER OF JURY TRIAL.

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

         Section 8.14      HEADINGS AND CROSS-REFERENCES.

                                       17
<PAGE>

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

         Section 8.15      COSTS AND EXPENSES.

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

         Section 8.16      CONFIDENTIAL INFORMATION.

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

         Section 8.17      STATUTORY REFERENCES.

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

         Section 8.18      EXECUTION IN COUNTERPARTS.

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

         Section 8.19      POWER OF ATTORNEY. The Company hereby grants to each
of the Issuer and the Trustee the power as its attorney-in-fact (i) to file UCC
financing statements in the appropriate offices evidencing the conveyance of the
Contracts and other Company Assets to the Issuer and (ii) in the event an event
of default exists under any Transaction Document, to do any and all other acts
as may be necessary or appropriate to effect the transaction contemplated
herein. The Company will execute any document or instrument deemed necessary by
the Issuer or the Trustee to effect or to evidence this power of attorney. All
costs associated with such filings or instructions shall be paid by the Company.

                            [Signature page follows]

<PAGE>

                                          SUBSEQUENT CONTRACT TRANSFER AGREEMENT

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

                                  DVI RECEIVABLES CORP. XVIII

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

                                  Address:          2500 York Road
                                                    Jamison, Pennsylvania 18929
                                  Attention:        Securitization Manager

                                  Telephone:        (215) 488-5042
                                  Facsimile:        (215) 488-5416

                                  DVI RECEIVABLES XVIII, L L C
                                  By:      DVI Receivables Corp  VIII,
                                           its managing member

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

                                  Address:          2500 York Road
                                                    Jamison, Pennsylvania 18929
                                  Attention:        Securitization Manager

                                  Telephone:        (215) 488-5042
                                  Facsimile:        (215) 488-5416

<PAGE>

                                    EXHIBIT A

                        SUBSEQUENT CONTRACT TRANSFER FORM
                        ---------------------------------

                                                                          [DATE]

         DVI RECEIVABLES CORP. XVIII, (the "COMPANY") and DVI RECEIVABLES XVIII,
L.L.C. (the "ISSUER"), pursuant to the Subsequent Contract Transfer Agreement,
dated as of November 1, 2002 (the "SCTA"), hereby confirm their understanding
with respect to the sale, transfer, assignment and conveyance by the Company to
the Issuer of those Contracts listed on Schedule 1 attached hereto (the
"CONTRACTS"), together with a first priority perfected (except with regard to
Equipment that had an Original Equipment Cost of less than $25,000) security
interest in all of the Company's right, title and interest in and to the related
Equipment (except for (i) such item of Equipment that had an Original Equipment
Cost of less than $25,000 and (ii) any ownership interest in such item of
Equipment, with respect to which the Company instead grants to the Issuer a
first priority perfected security interest therein), and other related property
described herein.

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

         The Company hereby confirms that:

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

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

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

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

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

         (6) Reserved;

                                      A-1
<PAGE>

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

         (8) The Contributor has delivered to the Trustee (i) amendments to, or
executed originals of, the UCC financing statements referred to in Section
1.01(d) of the Contribution and Servicing Agreement (the "CONTRIBUTION AND
SERVICING AGREEMENT"), dated as of November 1, 2002 between DVI Financial
Services Inc. and the Company, reflecting the addition of the Contract(s) and
(ii) an amendment to the Contract Schedule.

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

                            [signature page follows]

<PAGE>

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

                                          DVI RECEIVABLES CORP. XVIII

                                                   By:__________________________
                                                   Name:
                                                   Title:

                                          DVI RECEIVABLES XVIII, L.L.C.

                                                   By:      DVI RECEIVABLES
                                                            CORP. VIII,
                                                            its managing member

                                                   By:__________________________
                                                   Name:
                                                   Title:

<PAGE>

                                    EXHIBIT B

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

         DVI RECEIVABLES XVIII, L.L.C. (the "ISSUER") pursuant to the Subsequent
Contract Transfer Agreement, dated as of November 1, 2002, between the Issuer
and DVI RECEIVABLES CORP. XVIII (the "COMPANY") does hereby sell, transfer,
assign, deliver and otherwise convey to Company, without recourse,
representation or warranty, all of the Issuer's right, title and interest in and
to all of the Predecessor Contracts listed on Schedule A hereto and all security
and documents relating thereto.

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

                                        DVI RECEIVABLES XVIII, L.L.C.
                                        By:      DVI Receivables Corp. VIII,
                                                 its managing member

                                        By:_____________________________________
                                        Name:
                                        Title:

<PAGE>

                                    EXHIBIT C

              FORM OF OFFICER'S CERTIFICATE PURSUANT TO ARTICLE VII
              -----------------------------------------------------

                  The undersigned certifies that the undersigned is a duly
authorized officer of DVI RECEIVABLES CORP. XVIII (the "COMPANY"), and that, as
such the undersigned is authorized to execute and deliver this certificate on
behalf of the Company and further certifies pursuant to Section 7.02 of the
Subsequent Contract Transfer Agreement (the "AGREEMENT") dated as of November 1,
2002, between the Company and DVI RECEIVABLES XVIII, L.L.C. (the "ISSUER"), that
to his or her knowledge, the Company's transfer to the Issuer of those
Substitute Contracts listed in Schedule 1 attached hereto, together with all of
the Company's right, title and interest in and to the related Contracts (other
than the Company's Retained Interest) and the related Company Assets, is in
compliance with Article VII of the Agreement.

                  IN WITNESS WHEREOF, I have hereunto signed my name.

                                        DVI RECEIVABLES CORP. XVIII

                                        By:______________________________
                                        Name:
                                        Title:EXHIBIT 4.4

<PAGE>

                  LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                          DVI RECEIVABLES XVIII, L.L.C.

                          DATED AS OF OCTOBER 25, 2002

<PAGE>

<TABLE>
<CAPTION>
                                             LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                                                  OF

                                                     DVI RECEIVABLES XVIII, L.L.C

                                                           TABLE OF CONTENTS
<S>                                                                                                             <C>

ARTICLE I DEFINITIONS
         1.1      ACT.............................................................................................1
         1.2      AFFILIATE.......................................................................................1
         1.3      AGREEMENT.......................................................................................1
         1.4      ARTICLES........................................................................................1
         1.5      ASSIGNEE........................................................................................1
         1.6      CAPITAL CONTRIBUTION............................................................................1
         1.7      CLOSING.........................................................................................2
         1.8      COMPANY.........................................................................................2
         1.9      CONTRIBUTION AND SERVICING AGREEMENT............................................................2
         1.10     DISPOSITION (DISPOSE)...........................................................................2
         1.11     DISSOLUTION EVENT...............................................................................2
         1.12     DISTRIBUTION....................................................................................2
         1.13     DVI.............................................................................................2
         1.14     EFFECTIVE DATE..................................................................................2
         1.15     EVENT OF BANKRUPTCY.............................................................................2
         1.16     FISCAL YEAR.....................................................................................3
         1.17     INDENTURE.......................................................................................3
         1.18     INDEPENDENT DIRECTOR............................................................................3
         1.19     MANAGEMENT RIGHT................................................................................3
         1.20     MANAGING MEMBER.................................................................................3
         1.21     MEMBER..........................................................................................3
         1.22     MEMBERSHIP INTEREST.............................................................................3
         1.23     NOTES...........................................................................................4
         1.24     OFFICER.........................................................................................4
         1.25     ORGANIZATION....................................................................................4
         1.26     PERSON..........................................................................................4
         1.27     PRINCIPAL OFFICE................................................................................4
         1.28     PROCEEDING......................................................................................4
         1.29     PROPERTY........................................................................................4
         1.30     RELATED COMPANY.................................................................................4
         1.31     SCTA............................................................................................4
         1.32     TAX CHARACTERIZATION AND ADDITIONAL TAX TERMS...................................................4
         1.33     TERM............................................................................................5

                                                        -i-

<PAGE>

         1.34     UNIT............................................................................................5

ARTICLE II FORMATION
         2.1      ORGANIZATION....................................................................................5
         2.2      AGREEMENT.......................................................................................5
         2.3      NAME............................................................................................6
         2.4      TERM............................................................................................6
         2.5      REGISTERED AGENT AND OFFICE.....................................................................6
         2.6      PRINCIPAL OFFICE................................................................................6

ARTICLE III LIMITED PURPOSE; NATURE OF BUSINESS
         3.1      LIMITED BUSINESS PURPOSE........................................................................7

ARTICLE IV LIMITATIONS ON ACTIVITIES
         4.1      LIMITATIONS ON ACTIVITIES.......................................................................9

ARTICLE V ACCOUNTING AND RECORDS
         5.1      RECORDS TO BE MAINTAINED.......................................................................10
         5.2      REPORTS........................................................................................10
         5.3      TAX RETURNS AND REPORTS........................................................................11
         5.4      RECORDS TO BE KEPT SEPARATE....................................................................11

ARTICLE VI NAME AND ADDRESS OF MEMBER

ARTICLE VII RIGHTS AND DUTIES OF MEMBER
         7.1      LIABILITY OF MEMBER............................................................................11
         7.2      REPRESENTATIONS AND WARRANTIES.................................................................11
         7.3      CONFLICTS OF INTEREST..........................................................................12

ARTICLE VIII MANAGEMENT
         8.1      MANAGEMENT OF THE COMPANY......................................................................12
         8.2      AUTHORITY OF MANAGING MEMBER TO BIND THE COMPANY...............................................12
         8.3      ACTIONS OF THE MANAGING MEMBER.................................................................13
         8.4      COMPENSATION OF MANAGING MEMBER................................................................13
         8.5      MANAGING MEMBER'S STANDARD OF CARE.............................................................14
         8.6      RESIGNATION....................................................................................14
         8.7      PAYMENT OF LIABILITIES.........................................................................14

ARTICLE IX CONTRIBUTIONS
         9.1      MEMBERSHIP INTEREST............................................................................14

                                                       -ii-

<PAGE>

         9.2      CONTRIBUTIONS..................................................................................14
         9.3      WITHDRAWAL.....................................................................................14
         9.4      INTEREST.......................................................................................15
         9.5      NO PERSONAL LIABILITY..........................................................................15

ARTICLE X ALLOCATIONS AND DISTRIBUTIONS
         10.1     TAXABLE INCOME ALLOCATIONS.....................................................................15
         10.2     DISTRIBUTIONS..................................................................................15

ARTICLE XI TRANSFER OF MEMBERSHIP INTEREST
         11.1     COMPLIANCE WITH SECURITIES LAWS................................................................15
         11.2     TRANSFER OF ECONOMIC INTEREST..................................................................16
         11.3     TRANSFER OF MEMBERSHIP INTEREST................................................................16
         11.4     STATUS OF TRANSFEREE...........................................................................16
         11.5     DISSOLUTION OR BANKRUPTCY OF THE MEMBER........................................................17

ARTICLE XII DISSOLUTION AND WINDING UP
         12.1     DISSOLUTION....................................................................................17
         12.2     EFFECT OF DISSOLUTION..........................................................................18
         12.3     DISTRIBUTION OF ASSETS ON DISSOLUTION..........................................................18
         12.4     WINDING UP AND FILING ARTICLES OF DISSOLUTION..................................................19

ARTICLE XIII MISCELLANEOUS
         13.1     NOTICES........................................................................................19
         13.2     HEADINGS.......................................................................................19
         13.3     ENTIRE AGREEMENT...............................................................................19
         13.4     BINDING AGREEMENT..............................................................................19
         13.5     SAVING CLAUSE..................................................................................20
         13.6     COUNTERPARTS...................................................................................20
         13.7     GOVERNING LAW..................................................................................20
         13.8     NO MEMBERSHIP INTENDED FOR NONTAX PURPOSES.....................................................20
         13.9     NO RIGHTS OF CREDITORS AND THIRD PARTIES UNDER AGREEMENT.......................................20
         13.10    GENERAL INTERPRETIVE PRINCIPLES................................................................20
</TABLE>

                                                       -iii-

<PAGE>

                  LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                          DVI RECEIVABLES XVIII, L.L.C.

         This Limited Liability Company Operating Agreement of DVI Receivables
XVIII, L.L.C. (the "Company"), a Delaware limited liability company organized
pursuant to the Delaware Limited Liability Company Act, is entered into and
shall be effective as of October 25, 2002, by and between the Company and DVI
Receivables Corp. VIII, as the sole member of the Company.

                                   ARTICLE I
                                   DEFINITIONS

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

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

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

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

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

         1.5 ASSIGNEE. A transferee of the Membership Interest.

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

         1.7 CLOSING. The Closing as defined in that certain Indenture, dated
the date hereof, by and between the Company, DVI and the Purchaser (as defined
therein).

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

         1.9 CONTRIBUTION AND SERVICING AGREEMENT. That certain Contribution and
Servicing Agreement (as amended, supplemented, restated or otherwise modified
from time to time), dated as of November 1, 2002, by and between the Company and
DVI, as contributor and

<PAGE>

servicer.

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

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

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

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

         1.14 EFFECTIVE DATE. October 25, 2002.

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

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

         1.17 INDENTURE. That certain Indenture (as amended, supplemented,
restated or otherwise modified from time to time), dated as of November 1, 2002,
by and between the Company and U.S. Bank National Association (as successor to
U.S. Bank Trust National Association), as Trustee.

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

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

                                       2
<PAGE>

         1.20 MANAGING MEMBER. The Member, as set forth in Section 8.1.

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

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

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

         1.24 OFFICER. An individual appointed as an officer of the Company
pursuant to Section 8.1(c).

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

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

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

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

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

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

         1.31 SCTA. That certain Subsequent Contract Transfer Agreement, dated
as of November 1, 2002, by and between the Company and DVI Receivables Corp
XVIII.

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

                                       3
<PAGE>

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

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

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

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

                                   ARTICLE II
                                    FORMATION

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

         2.2 AGREEMENT. (a) For and in consideration of the mutual covenants
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, (i) the Company and DVI Receivables
Corp. VIII hereby agree to the terms and conditions of this Agreement, as it may
from time to time be amended and (ii) in exchange for the agreement of DVI
Receivables Corp. VIII to act as Managing Member of the Company, the Company
hereby issues, assigns, transfers and conveys all of its Membership Interests to
DVI Receivables Corp. VIII, and, prior to and at all times after the Effective
Date, the term "Member" shall be deemed to refer to DVI Receivables Corp. VIII,
its successors and assigns. It is the express intention of the Company and DVI
Receivables Corp. VIII that this Agreement shall be the sole source of agreement
of the parties, and, except to the extent a provision of this Agreement
expressly incorporates federal income tax rules by reference to sections of the
Code or Tax Regulations or is expressly prohibited or ineffective under the Act,
this Agreement shall govern, even when inconsistent with, or different than, the
provisions of the Act or any other law or rule, and to the extent any provision
of this Agreement is prohibited or ineffective under the Act, this Agreement
shall be deemed to be amended to the least extent necessary in order to make
this Agreement effective under the Act, in the event the Act is subsequently
amended or interpreted in such a way to make any provision of this Agreement
that was formerly invalid valid, such provision shall be considered to be valid
from the effective date of such interpretation or amendment.

                  (b) The Company has been formed by DVI Receivables Corp. VIII
         to serve as a special purpose entity in connection with securitization
         of certain financial assets of DVI Receivables Corp. VIII or its
         Affiliates. To facilitate the optimal securitization of the Contributed
         Property (as defined in the Contribution and Servicing Agreement), DVI
         has formed DVI Receivables Corp. XVIII to receive from DVI all
         Contributed Property

                                       4
<PAGE>

         pursuant to the Contribution and Servicing Agreement, and to transfer
         all such Contributed Property to the Company pursuant to the Subsequent
         Contract Transfer Agreement. To facilitate the optimal securitization
         of such assets, pursuant to the Funding Sale Agreement, the Company
         will also receive the Sold Company Assets (as defined in the Funding
         Sale Agreement) and, pursuant to the DVI XV Sale Agreement, the Company
         will receive the Sold Trust Property (as defined in the DVI XV Sale
         Agreement).

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

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

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

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

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

or at such other address as such person may designate by written notice to the
Managing Member. ARTICLE III....... LIMITED PURPOSE; NATURE OF BUSINESS

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

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

                  (b) To acquire, own, and hold one or more series of securities
         ("Pass-Through Securities") issued pursuant to one or more pooling
         agreements (each, a "Pooling Agreement"), and to issue one or more
         series of Pass-Through Securities; such Pass-Through Securities of each
         series (i) will represent ownership interests in various

                                       5
<PAGE>

         equipment finance contracts, the cash flow, income, payments and
         proceeds therefrom and any related property and/or collections in
         respect thereof, and (ii) may be structured to contain one or more
         classes of Pass-Through Securities, each class having the
         characteristics specified in the related Pooling Agreement; and to
         sell, transfer, assign, finance and refinance one or more Pass-Through
         Securities or classes of Pass-Through Securities of any series;

                  (c) To issue, acquire, own and hold one or more series of debt
         obligations ("Notes") pursuant to one or more indentures (each, an
         "Indenture"), which Notes are collateralized by equipment finance
         contracts or income, payments or proceeds therefrom ("Funding
         Agreements"), Pass-Through Securities or supplemental collateral
         (collectively, the "Collateral"); and to sell, transfer, assign and
         finance such Notes with Merrill Lynch, Pierce, Fenner & Smith
         Incorporated, Banc of America Securities LLC, Nomura Securities
         International, Inc. or Banc One Capital Markets, Inc. and such other
         organizations as either of them shall designate, at any time on or
         after November 1, 2002;

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

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

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

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

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

                                       6
<PAGE>

         Receivables"); and

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

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

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

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

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

                                   ARTICLE IV
                            LIMITATIONS ON ACTIVITIES

         4.1 Limitations on Activities. Notwithstanding any other provision of
this Agreement and any provision of law which otherwise so empowers the Company,
the Company shall not, and no Member shall have any right, power or authority to
cause the Company, without the unanimous affirmative vote of the Member's board
of directors, to perform any act in contravention of any of the following:

                  (a) The Company shall not

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

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

                                       7
<PAGE>

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

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

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

                      (iii) payment of capital distributions to the Member;

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

                  (d) The Company shall not commingle its funds and assets with
         those of any Related Company;

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

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

                  (g) The Company shall not dissolve even if it has no remaining
         Members if a personal representative of the last Member agrees in
         writing to continue the Company and to act as the Member hereunder
         until such time as another Member is effectively appointed hereunder
         or, in the event that no such personal representative shall agree, the
         Company shall make reasonable commercial efforts to cause the Trustee
         to act as interim Member until a replacement Member is effectively
         appointed; and

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

                                   ARTICLE V
                             ACCOUNTING AND RECORDS

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

                                       8
<PAGE>

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

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

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

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

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

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

         5.3 TAX RETURNS AND REPORTS. The Managing Member shall prepare and
timely file income tax returns of the Company in all jurisdictions where such
filings are required.

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

                                   ARTICLE VI
                           NAME AND ADDRESS OF MEMBER

         The name and address (or such other address as designated by the Member
to the Company from time to time) of the Member on and after the Closing shall
be:

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

                                  ARTICLE VII
                           RIGHTS AND DUTIES OF MEMBER

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

                                       9
<PAGE>

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

         7.3 CONFLICTS OF INTEREST.

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

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

                                  ARTICLE VIII
                                   MANAGEMENT

         8.1 Management of the Company.

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

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

                                       10
<PAGE>

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

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

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

                  (b) the entering into contracts;

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

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

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

                  (f) the indemnification of any Person;

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

                  (h) the amendment of any provision to this Agreement;
         provided, however, that no provision of Article III and Article IV
         hereof, or Sections 8.01, 8.06 and 5.04 of the SCTA shall be amended
         without the consent of the Independent Directors of the Member.

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

         8.4 COMPENSATION OF MANAGING MEMBER. The Managing Member shall be

                                       11
<PAGE>

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

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

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

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

                                   ARTICLE IX
                                  CONTRIBUTIONS

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

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

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

         9.4 INTEREST. The Member shall not be entitled to interest on any
Capital Contribution

                                       12
<PAGE>

or on any profits retained by the Company.

         9.5 NO PERSONAL LIABILITY. The Member shall not have any liability for
the obligations or liabilities of the Company except to the extent provided in
the Act.

                                   ARTICLE X
                          ALLOCATIONS AND DISTRIBUTIONS

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

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

                                   ARTICLE XI
                         TRANSFER OF MEMBERSHIP INTEREST

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

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

         The transferor shall have:

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

                  (b) furnished the Company with a written opinion of counsel,
         satisfactory in form and substance to counsel for the Company, that
         such transfer complies with applicable federal and state securities
         laws and this Agreement and that such transfer, for

                                       13
<PAGE>

         federal income tax purposes, will not cause the termination of the
         Company under Section 708(b) of the Code, cause the Company to be
         treated as an association taxable as a corporation for income tax
         purposes or otherwise adversely affect the Company or the Member; and

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

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

         11.3 TRANSFER OF MEMBERSHIP INTEREST.

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

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

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

         11.5 DISSOLUTION OR BANKRUPTCY OF THE MEMBER. Upon the dissolution or
adjudication of bankruptcy of the Member, the Member's successors or assigns
shall have all the rights of the Member for the purpose of settling or managing
the Member's estate.

                                  ARTICLE XII
                           DISSOLUTION AND WINDING UP

         12.1 DISSOLUTION. The Company shall be dissolved and its affairs wound
up, upon the

                                       14
<PAGE>

first to occur of any of the following events (each of which shall constitute a
Dissolution Event):

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

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

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

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

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

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

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

                                       15
<PAGE>

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

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

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

                  (c) then, to the Member.

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

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

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

                                  ARTICLE XIII
                                  MISCELLANEOUS

         13.1 NOTICES. Notices to the Member shall be sent to the Principal
Office of the Company. Any notice or other communication required or permitted
hereunder shall be in writing, and shall be deemed to have been given with
receipt confirmed if and when delivered

                                       16
<PAGE>

personally, given by prepaid telegram or mailed first class, postage prepaid,
delivered by courier, or sent by facsimile, to the Member at such address.

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

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

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

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

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

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

         13.8 NO MEMBERSHIP INTENDED FOR NONTAX PURPOSES. The Member has formed
the Company under the Act, and expressly does not intend hereby to form a
partnership, either general or limited, under the Delaware partnership laws.

         13.9 NO RIGHTS OF CREDITORS AND THIRD PARTIES UNDER AGREEMENT. This
Agreement is entered into between the Company and the Member for the exclusive
benefit of the Company, its Member, and their successors and assignees. This
Agreement is expressly not intended for the benefit of any creditor of the
Company or any other Person. Except and only to the extent provided by
applicable statute, no such creditor or any third party shall have any rights
under this Agreement or any agreement between the Company and the Member with
respect to any Capital Contribution or otherwise.

         13.10 GENERAL INTERPRETIVE PRINCIPLES. For purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires:

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

                  (b) accounting terms not otherwise defined herein have the
         meanings given to

                                       17
<PAGE>

         them in the United States in accordance with generally accepted
         accounting principles;

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

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

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

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

                            [Signature page follows]

                                       18
<PAGE>

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

                                          DVI Receivables Corp. VIII

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

                                          DVI Receivables XVIII, L.L.C.

                                          By:      DVI Receivables Corp. VIII
                                                   Its Managing Member

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

                                   LIMITED LIABILITY COMPANY OPERATING AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]