Document:

AMENDED AND RESTATED
                     SUBSEQUENT CONTRACT TRANSFER AGREEMENT

                                     between

                           DVI RECEIVABLES CORP. XIV,
                                   as Company

                                       and

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

                          Dated as of December 1, 2000

_____________________________________________________________________________
ALL RIGHTS IN AND TO THIS AGREEMENT ON THE PART OF DVI RECEIVABLES XIV, L.L.C.
HAVE BEEN ASSIGNED AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF U.S. BANK
TRUST NATIONAL ASSOCIATION, AS TRUSTEE, UNDER THE AMENDED AND RESTATED INDENTURE
DATED AS OF DECEMBER 1, 2000 FOR THE BENEFIT OF THE PERSONS REFERRED TO THEREIN.
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                                TABLE OF CONTENTS

                                   ARTICLE I.
                                   DEFINITIONS

<S>      <C>               <C>                                                                                   <C>
         SECTION 1.01      DEFINITIONS............................................................................1

                                                    ARTICLE II.
                                  PROCEDURES FOR PURCHASES OF ELIGIBLE CONTRACTS

         SECTION 2.01      TRANSFER...............................................................................1
         SECTION 2.02      SUBSTITUTE CONTRACTS...................................................................2
         SECTION 2.03      INTENT OF PARTIES; SECURITY INTEREST...................................................2

                                                   ARTICLE III.
                                   REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         SECTION 3.01      ORGANIZATION AND GOOD STANDING.........................................................3
         SECTION 3.02      AUTHORIZATION..........................................................................3
         SECTION 3.03      BINDING OBLIGATION.....................................................................3
         SECTION 3.04      NO VIOLATION...........................................................................4
         SECTION 3.05      NO PROCEEDINGS.........................................................................4
         SECTION 3.06      APPROVALS..............................................................................4
         SECTION 3.07      ABILITY TO PERFORM.....................................................................4
         SECTION 3.08      EQUIPMENT AND CONTRACTS................................................................4
         SECTION 3.09      PRINCIPAL EXECUTIVE OFFICE.............................................................5
         SECTION 3.10      NO PRIOR ASSIGNMENTS...................................................................5
         SECTION 3.11      FAIR CONSIDERATION.....................................................................5
         SECTION 3.12      NONCONSOLIDATION.......................................................................6
         SECTION 3.13      ORDINARY COURSE; NO INSOLVENCY.........................................................6
         SECTION 3.14      ASSETS AND LIABILITIES.................................................................7
         SECTION 3.15      VALID SALE.............................................................................7
         SECTION 3.16      ABILITY TO PAY DEBTS...................................................................7
         SECTION 3.17      BULK TRANSFER PROVISIONS...............................................................7
         SECTION 3.18      TRANSFER TAXES.........................................................................7

                                                    ARTICLE IV.
                                              CONDITIONS TO PURCHASE

         SECTION 4.01      REPRESENTATIONS AND WARRANTIES.........................................................8

                                                    ARTICLE V.
                                             COVENANTS OF THE COMPANY

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         SECTION 5.01      BOOKS AND RECORDS......................................................................8
         SECTION 5.02      PRESERVATION OF OFFICE.................................................................8
         SECTION 5.03      LIENS..................................................................................9
         SECTION 5.04      NO BANKRUPTCY PETITION AGAINST THE ISSUER OR MANAGING MEMBER...........................9
         SECTION 5.05      PROTECTION OF RIGHT, TITLE AND INTEREST................................................9

                                                    ARTICLE VI.
                                         REPRESENTATIONS AND COVENANTS OF
                                                    THE ISSUER

         SECTION 6.01      NONCONSOLIDATION......................................................................10
         SECTION 6.02      NO BANKRUPTCY PETITION AGAINST THE COMPANY............................................10

                                                   ARTICLE VII.
                                                   SUBSTITUTION

         SECTION 7.01      SUBSTITUTION..........................................................................11
         SECTION 7.02      NOTICE OF SUBSTITUTION................................................................11
         SECTION 7.03      CONTRIBUTOR'S AND COMPANY'S SUBSEQUENT OBLIGATIONS.
                   ..............................................................................................11
         SECTION 7.04      USAGE OF PREDECESSOR CONTRACTS IN CALCULATION.........................................12

                                                   ARTICLE VIII.
                                                   MISCELLANEOUS

         SECTION 8.01      AMENDMENT.............................................................................12
         SECTION 8.02      EFFECT OF INVALIDITY OF PROVISIONS....................................................13
         SECTION 8.03      NOTICES...............................................................................13
         SECTION 8.04      ENTIRE AGREEMENT......................................................................13
         SECTION 8.05      SURVIVAL..............................................................................13
         SECTION 8.06      CONSENT TO SERVICE....................................................................14
         SECTION 8.07      JURISDICTION NOT EXCLUSIVE............................................................14
         SECTION 8.08      CONSTRUCTION..........................................................................14
         SECTION 8.09      FURTHER ASSURANCES....................................................................14
         SECTION 8.10      THIRD PARTY BENEFICIARIES.............................................................14
         SECTION 8.11      GOVERNING LAW.........................................................................15
         SECTION 8.12      CONSENT TO JURISDICTION; WAIVER OF OBJECTION TO
                  VENUE..........................................................................................15
         SECTION 8.13      WAIVER OF JURY TRIAL..................................................................15
         SECTION 8.14      HEADINGS AND CROSS-REFERENCES.........................................................15
         SECTION 8.15      COSTS AND EXPENSES....................................................................16
         SECTION 8.16      CONFIDENTIAL INFORMATION..............................................................16
         SECTION 8.17      STATUTORY REFERENCES..................................................................16

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         SECTION 8.18      EXECUTION IN COUNTERPARTS.............................................................16
                   EXHIBIT A SUBSEQUENT CONTRACT TRANSFER FORM
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                  AMENDED AND RESTATED SUBSEQUENT CONTRACT TRANSFER AGREEMENT
("AGREEMENT") dated as of December 1, 2000, between DVI RECEIVABLES XIV, L.L.C.,
a Delaware limited liability company (the "ISSUER"), and DVI RECEIVABLES CORP.
XIV, 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 Amended
and Restated Contribution and Servicing Agreement dated as of the date hereof,
between the Company and DVI Financial Services Inc. (the "CONTRIBUTOR").

                  WHEREAS, the Company desires to transfer to Issuer all
Contributed Property (other than any ownership interest in certain 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 Amended and Restated Indenture (the
"AMENDED AND RESTATED INDENTURE"), dated as of the date hereof, by and between
the Issuer and U.S. Bank Trust National Association (the "TRUSTEE"), the Issuer
intends to issue its Series 2001-1 Notes, which will be collateralized by a
pledge by the Issuer to the Trustee, on behalf of the Noteholders 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 2001-1
Notes, the Issuer and the Company desire to amend and restate this Agreement in
its entirety.

                  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 Amended and Restated Contribution and Servicing Agreement.

                                   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

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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 that are payable 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.

         (b) After giving effect to such transfer and sale, the ownership of
each such Contract transferred on the related Contribution Date shall be vested
in the Issuer. The Contract Files and any other documents relating to each
Contract shall be held in trust by the Trustee for the benefit of the
Noteholders pursuant to the terms of the Amended and Restated Indenture. The
Company agrees to take no action inconsistent with the ownership of any
Contract, to promptly indicate to all parties with a valid interest inquiring as
to the true ownership of each Contract, that each Contract has been transferred
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 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.

         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 Amended and Restated 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 Amended and Restated Contribution and Servicing Agreement.

         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 and subject to Finance Leases or Secured Equipment Notes, 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, (iii) Issuer shall have all of the

                                       -2-

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rights of a secured party with respect to the Company Assets pursuant to
applicable law and (iv) in the manner consistent with the Amended and Restated
Indenture, 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 and subject to Finance Leases or Secured
Equipment Notes. 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.

                                  ARTICLE III.
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company hereby makes the following representations and warranties
for the benefit of the Issuer, the Trustee and the Noteholders on which the
Issuer relies in purchasing and otherwise acquiring the Company Assets 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 Amended and Restated 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.

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

         SECTION 3.03      BINDING OBLIGATION.

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

                                       -3-

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         SECTION 3.04      NO VIOLATION.

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

         SECTION 3.05      NO PROCEEDINGS.

         The Company is not subject to any injunction, writ, action, suit,
restraining order or other order 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, regulatory body,
administrative agency or other tribunal or governmental instrumentality (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 Amended and Restated Contribution and Servicing
Agreement.

         SECTION 3.08      EQUIPMENT AND CONTRACTS.

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

         (a) the sale to the Issuer of the Company's interest in such
Contract(s) transferred on such date and the assignment of the Company's
security interest, or grant of a first priority perfected security interest, as
the case may be, in the Equipment related thereto pursuant to Section 2.01 or
Section 2.02 hereof constitutes a valid transfer of all of the Company's right,
title and interest in such

                                       -4-

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Company Assets or a grant of a first-priority perfected (except for Equipment
for which the Original Equipment Cost is less than $25,000 and subject to
Finance Leases or Secured Equipment Notes, 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;

         (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.

         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. 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, 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 Amended and Restated Contribution and Servicing Agreement
and not paid by the Contributor.

         SECTION 3.10      NO PRIOR ASSIGNMENTS.

         The Company has not pledged, assigned or encumbered or terminated, in
whole or in part, any of the Company Assets.

         SECTION 3.11      FAIR CONSIDERATION.

         The consideration received by the Company in connection with the
transfer and sale of the Company Assets constitutes reasonably equivalent value
and fair consideration for the Company Assets.

                                       -5-

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         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 Amended and Restated Contribution and
Servicing Agreement; and

         (g) the Company will cause 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.

         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

                                       -6-

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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      VALID SALE.

         This Agreement effects a valid assignment, transfer 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 constitutes reasonably equivalent value and fair
consideration for such Company Assets.

         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.

         SECTION 3.18      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

                                       -7-

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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).

                                   ARTICLE IV.
                             CONDITIONS TO PURCHASE

         SECTION 4.01      REPRESENTATIONS AND WARRANTIES.

         The obligation of the Issuer to purchase any Contracts on the Closing
Date 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.
                            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.

                                       -8-

<PAGE>

         SECTION 5.03      LIENS.

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

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

         The Company covenants and agrees it will not, prior to the date that is
one year and one day after the payment in full of all amounts owing pursuant to
the Transaction Documents, institute against, or join any other Person in
instituting against, any of the Issuer, 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(d) of the Amended and Restated Contribution and Servicing Agreement
seriously misleading within the meaning of Section 9-402(7) 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 such Contract have been sold to the
Issuer and pledged by the Issuer to the Trustee for the benefit of the
Noteholders.

         (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:

                                       -9-

<PAGE>

         SECTION 6.01      NONCONSOLIDATION.

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

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

         (b) the Issuer maintains separate company records and books of account
from Contributor and otherwise observes company formalities and has a separate
business office from the 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 6.01 shall survive the termination of this
Agreement.

                                      -10-

<PAGE>

                                  ARTICLE VII.
                                  SUBSTITUTION

         SECTION 7.01      SUBSTITUTION.

         In the event that the Contributor contributes and assigns a Substitute
Contract to the Company pursuant to Section 7.01 of the Amended and Restated
Contribution and Servicing Agreement, the Company hereby agrees to sell,
transfer, convey and assign any such Substitute Contract and the security
interest in the related Equipment to the Issuer. In addition, the Company hereby
agrees to take any action to facilitate the transfer of any Predecessor
Contract, including (i) delivery to the Contributor by the Company of an
instrument, substantially in the form of Exhibit D of the Amended and Restated
Contribution and Servicing Agreement, transferring to the Contributor, without
representation or warranty, all of the Company's right, title and interest in
and to the related Predecessor Contract, (ii) delivery to the Trustee of the
original, manually executed counterpart of each 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 (iii) 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.

         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 F
of the Amended and Restated Contribution and Servicing Agreement, certifying as
to compliance with the provisions of Section 7.01 hereof.

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

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

                                      -11-

<PAGE>

         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
either the Trustee or the Noteholders, 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 or any Noteholder 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 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.

                  (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,

                                      -12-

<PAGE>

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, or at other such respective address as
shall be designated by such party in a written notice to the other parties. Any
notice required or permitted to be mailed to a Noteholder shall be given by
first class mail, postage prepaid, at the address of such Holder as shown in the
Note Register. Any notice so mailed within the time prescribed in this Agreement
shall be conclusively presumed to have been duly given, whether or not the
Noteholder receives such notice.

         SECTION 8.04      ENTIRE AGREEMENT.

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

         SECTION 8.05      SURVIVAL.

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

                                      -13-

<PAGE>

         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.

         SECTION 8.10      THIRD PARTY BENEFICIARIES.

         Each Noteholder 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 Amended and Restated Indenture.
The Company acknowledges that the Issuer intends, pursuant to the Amended and
Restated 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, 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 and the Noteholder 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

                                      -14-

<PAGE>

and obligations hereunder, or under the Amended and Restated Indenture or
Amended and Restated 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 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.

         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.

                                      -15-

<PAGE>

         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 Amended and
Restated 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.

                                      -16-

<PAGE>

           AMENDED AND RESTATED SUBSEQUENT CONTRACT TRANSFER AGREEMENT

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

                                 DVI RECEIVABLES CORP. XIV

                                 By
                                    ---------------------------------------
                                       Name:  Matthew E. Goldenberg
                                       Title: Assistant Treasurer

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

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

                                 DVI RECEIVABLES XIV, L.L.C.

                                 By:  DVI  Receivables Corp. VIII,
                                      its managing member

                                 By
                                    ---------------------------------------
                                       Name:  Matthew E. Goldenberg
                                       Title: Assistant Treasurer

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

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

Consented to with respect to Section 8.01 only by:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

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

<PAGE>

                                    EXHIBIT A

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

                                                                          [DATE]

         DVI Receivables Corp. XIV, (the "Company") and DVI Receivables XIV,
L.L.C. ("the Issuer"), pursuant to the Amended and Restated Subsequent Contract
Transfer Agreement, dated as of December 1, 2000 (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 related to either a Finance Lease or a Secured
Equipment Note 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 related to either a
Finance Lease or a Secured Equipment Note 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") 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 Amended
and Restated 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 ______%);

                                       A-1

<PAGE>

         (6)      Reserved

         (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 Amended and Restated Contribution and Servicing Agreement (the
"Amended and Restated Contribution and Servicing Agreement"), dated as of
December 1, 2000 between Contributor 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 Amended and Restated Contribution and Servicing Agreement.

                            [Signature page follows]

                                       A-2

<PAGE>

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

                               DVI RECEIVABLES CORP. XIV
whew@www.com

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

                               DVI RECEIVABLES XIV, L.L.C.

                               By:  DVI  RECEIVABLES CORP. VIII, its managing
                               member

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

                                       A-3AMENDED AND RESTATED

                  LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                           DVI RECEIVABLES XIV, L.L.C.

                          Dated as of December 1, 2000

<PAGE>

       AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                           DVI RECEIVABLES XIV, L.L.C.

                                TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS

         1.1      ACT..........................................................1
         1.2      AFFILIATE....................................................1
         1.3      AGREEMENT....................................................1
         1.4      ARTICLES.....................................................1
         1.5      ASSIGNEE.....................................................1
         1.6      CAPITAL CONTRIBUTION.........................................1
         1.7      CLOSING......................................................1
         1.8      COMPANY......................................................1
         1.9      CONTRIBUTION AND SERVICING AGREEMENT.........................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..................................................2
         1.17     INDENTURE....................................................2
         1.18     INDEPENDENT DIRECTOR.........................................2
         1.19     MANAGEMENT RIGHT.............................................3
         1.20     MANAGING MEMBER..............................................3
         1.21     MEMBER.......................................................3
         1.22     MEMBERSHIP INTEREST..........................................3
         1.23     NOTES........................................................3
         1.24     OFFICER......................................................3
         1.25     ORGANIZATION.................................................3
         1.26     PERSON.......................................................3
         1.27     PRINCIPAL OFFICE.............................................3
         1.28     PROCEEDING...................................................3
         1.29     PROPERTY.....................................................3
         1.30     RELATED COMPANY..............................................3
         1.32     TAX CHARACTERIZATION AND ADDITIONAL TAX TERMS................4
         1.33     TERM.........................................................4

<PAGE>

         1.34     UNIT.........................................................4

                                   ARTICLE II
                                    FORMATION

         2.1      ORGANIZATION.................................................4
         2.2      AGREEMENT....................................................4
         2.3      NAME.........................................................5
         2.4      TERM.........................................................5
         2.5      REGISTERED AGENT AND OFFICE..................................5
         2.6      PRINCIPAL OFFICE.............................................5

                                   ARTICLE III
                       LIMITED PURPOSE; NATURE OF BUSINESS

         3.1      LIMITED BUSINESS PURPOSE.....................................6

                                   ARTICLE IV
                            LIMITATIONS ON ACTIVITIES

         4.1      LIMITATIONS ON ACTIVITIES....................................7

                                    ARTICLE V
                             ACCOUNTING AND RECORDS

         5.1      RECORDS TO BE MAINTAINED.....................................9
         5.2      REPORTS......................................................9
         5.3      TAX RETURNS AND REPORTS......................................9
         5.4      RECORDS TO BE KEPT SEPARATE..................................9

                                   ARTICLE VI
                           NAME AND ADDRESS OF MEMBER

                                   ARTICLE VII
                           RIGHTS AND DUTIES OF MEMBER

         7.1      LIABILITY OF MEMBER.........................................10
         7.2      REPRESENTATIONS AND WARRANTIES..............................10
         7.3      CONFLICTS OF INTEREST.......................................10

                                  ARTICLE VIII
                                   MANAGEMENT

         8.1      MANAGEMENT OF THE COMPANY...................................11
         8.2      AUTHORITY OF MANAGING MEMBER TO BIND THE COMPANY............11

<PAGE>

         8.3      ACTIONS OF THE MANAGING MEMBER..............................12
         8.4      COMPENSATION OF MANAGING MEMBER.............................12
         8.5      MANAGING MEMBER'S STANDARD OF CARE..........................12
         8.6      RESIGNATION.................................................13
         8.7      PAYMENT OF LIABILITIES......................................13

                                   ARTICLE IX
                                  CONTRIBUTIONS

         9.1      MEMBERSHIP INTEREST.........................................13
         9.2      CONTRIBUTIONS...............................................13
         9.3      WITHDRAWAL..................................................13
         9.4      INTEREST....................................................13
         9.5      NO PERSONAL LIABILITY.......................................13

                                    ARTICLE X
                          ALLOCATIONS AND DISTRIBUTIONS

         10.1     TAXABLE INCOME ALLOCATIONS..................................13
         10.2     DISTRIBUTIONS...............................................14

                                   ARTICLE XI
                         TRANSFER OF MEMBERSHIP INTEREST

         11.1     COMPLIANCE WITH SECURITIES LAWS.............................14
         11.2     TRANSFER OF ECONOMIC INTEREST...............................14
         11.3     TRANSFER OF MEMBERSHIP INTEREST.............................14
         11.4     STATUS OF TRANSFEREE........................................15
         11.5     DISSOLUTION OR BANKRUPTCY OF THE MEMBER.....................15

                                   ARTICLE XII
                           DISSOLUTION AND WINDING UP

         12.1     DISSOLUTION.................................................15
         12.2     EFFECT OF DISSOLUTION.......................................16
         12.3     DISTRIBUTION OF ASSETS ON DISSOLUTION.......................16
         12.4     WINDING UP AND FILING ARTICLES OF DISSOLUTION...............17

                                  ARTICLE XIII
                                  MISCELLANEOUS

         13.1     NOTICES.....................................................17
         13.2     HEADINGS....................................................17
         13.3     ENTIRE AGREEMENT............................................17
         13.4     BINDING AGREEMENT...........................................17
         13.5     SAVING CLAUSE...............................................17

<PAGE>

         13.6     COUNTERPARTS................................................18
         13.7     GOVERNING LAW...............................................18
         13.8     NO MEMBERSHIP INTENDED FOR NONTAX PURPOSES..................18
         13.9     NO RIGHTS OF CREDITORS AND THIRD PARTIES UNDER AGREEMENT....18
         13.10    GENERAL INTERPRETIVE PRINCIPLES.............................18

<PAGE>

                  LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                           DVI RECEIVABLES XIV, L.L.C.

         This Amended and Restated Limited Liability Company Operating Agreement
of DVI Receivables XIV, 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 initially as of December 1, 2000, and as
amended and restated on and as of May 10, 2001, 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 XIV, L.L.C., a limited liability
company formed under the laws of Delaware, and any successor limited liability
company.

<PAGE>

                                        2

         1.9 CONTRIBUTION AND SERVICING AGREEMENT. That certain Amended and
Restated Contribution and Servicing Agreement (as amended, supplemented,
restated or otherwise modified from time to time), dated of even date herewith,
by and between the Company and DVI, as contributor and servicer.

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

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

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

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

         1.14     EFFECTIVE DATE.  December 1, 2000.

         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 Amended and Restated Indenture (as
amended, supplemented, restated or otherwise modified from time to time), dated
of even date herewith, by and between the Company and 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,

<PAGE>

                                        3

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.

         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.

<PAGE>

                                        4

         1.31 SCTA. That certain Amended and Restated Subsequent Contract
Transfer Agreement, dated of even date herewith, by and between the Company and
DVI Receivables Corp XIV.

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

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

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

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

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

                                   ARTICLE II
                                    FORMATION

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

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

<PAGE>

                                        5

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.
XIV to receive from DVI all Contributed Property pursuant to the Contribution
and Servicing Agreement, and to transfer all such Contributed Property to the
Company pursuant to the Subsequent Contract Transfer Agreement.

         2.3      NAME.  The name of the Company is DVI Receivables XIV, 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) 488-5042

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

<PAGE>

                                        6

                                   ARTICLE III
                       LIMITED PURPOSE; NATURE OF BUSINESS

         3.1      LIMITED BUSINESS PURPOSE.  The business purpose to be
conducted or promoted by the Company is limited to the following activities and
none other:

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

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

                  (c) To issue, acquire, own and hold one or more series of debt
         obligations ("NOTES") pursuant to one or more indentures (each, an
         "INDENTURE"), which Notes are collateralized by equipment finance
         contracts or income, payments or proceeds therefrom ("FUNDING
         AGREEMENTS"), Pass-Through Securities or supplemental collateral
         (collectively, the "COLLATERAL"); and to sell, transfer, assign and
         finance such Notes with Merrill Lynch, Pierce, Fenner & Smith
         Incorporated or Banc One Capital Markets, Inc. and such other
         organizations as either of them shall designate, at any time on or
         after May 1, 2001;

                  (d) To establish one or more trusts ("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;

<PAGE>

                                        7

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

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

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

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

                  (k) 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

                  (l) 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:

<PAGE>

                                        8

                  (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;

                  (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

<PAGE>

                                        9

         make reasonable commercial efforts to cause the Trustee to act as
         interim Member until a replacement Member is effectively appointed;
         and

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

                        ARTICLE V ACCOUNTING AND RECORDS

         5.1      RECORDS TO BE MAINTAINED.  The Company shall maintain the
following records at the Principal Office:

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

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

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

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

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

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

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

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

<PAGE>

                                       10

                                   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.

         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 Company 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.

<PAGE>

                                       11

                                  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.

                  (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;

<PAGE>

                                       12

                  (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
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

<PAGE>

                                       13

standards set forth herein. The satisfaction of any indemnification and any
holding harmless shall be from and limited to Company 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 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.

<PAGE>

                                       14

         10.2 DISTRIBUTIONS. Distributions shall be made to the Member or its
designee in accordance with Section 3.04(b)(xii) 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 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

<PAGE>

                                       15

         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 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

<PAGE>

                                       16

         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.

         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 Company 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

<PAGE>

                                       17

         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 Company 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 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

<PAGE>

                                       18

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 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.

<PAGE>

                                       19
       AMENDED AND RESTATED LIMITED LIABILITY COMPANY OPERATING AGREEMENT

         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:  Assistant Treasurer

                                         DVI Receivables XIV, L.L.C.

                                         By:      DVI Receivables Corp. VIII
                                             -----------------------------------
                                                  Its Managing Member

                                         By:
                                             -----------------------------------
                                         Name:  Matthew E. Goldenberg
                                         Title:  Assistant Treasurer

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