Document:

<PAGE>

                                                                    EXHIBIT 10.2

                        INSURANCE AND INDEMNITY AGREEMENT
                            Dated as of May 26, 2005

                          AMBAC ASSURANCE CORPORATION,
                                   as Insurer,

                   TRIAD AUTOMOBILE RECEIVABLES TRUST 2005-A,
                                   as Issuer,

                          TRIAD FINANCIAL CORPORATION,
                             as Seller and Servicer,

                      TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                  as Depositor,

                                       and

                            JPMORGAN CHASE BANK, N.A.
                              as Indenture Trustee

                    Triad Automobile Receivables Trust 2005-A
                           Class A Asset Backed Notes

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                                                                    EXHIBIT 10.2

                                TABLE OF CONTENTS

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                                                   ARTICLE I

                                                  DEFINITIONS

Section 1.1   Defined Terms..............................................................................     1
Section 1.2   Other Definitional Provisions..............................................................     9

                                                  ARTICLE II

                                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 2.1   Representations and Warranties of the Seller and Servicer..................................    10
Section 2.2   Affirmative Covenants of Seller and Servicer...............................................    10
Section 2.3   Negative Covenants of the Seller and Servicer..............................................    14
Section 2.4   Representations and Warranties of the Insurer..............................................    15
Section 2.5   Representations and Warranties of the Depositor and the Issuer.............................    16
Section 2.6   Affirmative Covenants of the Depositor and the Issuer......................................    16
Section 2.7   Negative Covenants of the Depositor and the Issuer.........................................    20

                                                  ARTICLE III

                                        THE AMBAC POLICY; REIMBURSEMENT

Section 3.1   Issuance of the Ambac Policy...............................................................    21
Section 3.2   Payment of Fees and Premium................................................................    23
Section 3.3   Reimbursement Obligation...................................................................    24
Section 3.4   Indemnification............................................................................    24
Section 3.5   Payment Procedure..........................................................................    27
Section 3.6   Subrogation................................................................................    28

                                                  ARTICLE IV

                                              FURTHER AGREEMENTS

Section 4.1   Effective Date; Term of the Insurance Agreement............................................    28
Section 4.2   Further Assurances and Corrective Instruments..............................................    28
Section 4.3   Obligations Absolute.......................................................................    29
Section 4.4   Assignments; Reinsurance; Third-Party Rights...............................................    30
Section 4.5   Liability of the Insurer...................................................................    31
Section 4.6   Consent to Corporate Changes of Triad......................................................    31
Section 4.7   Rights and Remedies........................................................................    31
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                                                       ARTICLE V

                                                 DEFAULTS AND REMEDIES

Section 5.1   Defaults...................................................................................            33
Section 5.2   Remedies; No Remedy Exclusive..............................................................            34
Section 5.3   Waivers....................................................................................            34

                                                      ARTICLE VI

                                                     MISCELLANEOUS

Section 6.1   Amendments, Etc............................................................................            35
Section 6.2   Notices....................................................................................            35
Section 6.3   Severability...............................................................................            36
Section 6.4   Governing Law..............................................................................            37
Section 6.5   Consent to Jurisdiction....................................................................            37
Section 6.6   Consent of the Insurer.....................................................................            38
Section 6.7   Counterparts...............................................................................            38
Section 6.8   Headings...................................................................................            38
Section 6.9   Trial by Jury Waived.......................................................................            38
Section 6.10  Limited Liability..........................................................................            38
Section 6.11  Entire Agreement: Facsimile Signatures.....................................................            38
Section 6.12  Indenture Trustee..........................................................................            39
Section 6.13  Third-Party Beneficiary....................................................................            39
Section 6.14  No Proceedings.............................................................................            39
Section 6.15  Limitation of Owner Trustee Liability......................................................            39

EXHIBITS

EXHIBIT A Form of Ambac Policy ..........................................................................           A-1

EXHIBIT B Triad Automobile Receivables Trust 2005-A Consolidated
              Tangible Net Worth Calculation Pro-forma [________] [2004] ................................           B-1

EXHIBIT C Triad Automobile Receivables Trust 2005-A Consolidated
              Tangible Net Worth Calculation as of [_______] [2004] .....................................           C-1

EXHIBIT D Triad Automobile Receivables Trust 2005-A Tangible Net Worth Floor.............................           D-1

SCHEDULES

SCHEDULE A ..............................................................................................  Schedule A-1

SCHEDULE B ..............................................................................................  Schedule B-1

SCHEDULE C ..............................................................................................  Schedule C-1

SCHEDULE D ..............................................................................................  Schedule D-1
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                                                                    EXHIBIT 10.2

            INSURANCE AND INDEMNITY AGREEMENT (as it may be amended, modified or
supplemented from time to time, this "Insurance Agreement"), dated as of May 26,
2005, by and among AMBAC ASSURANCE CORPORATION, as Insurer (the "Insurer"),
TRIAD AUTOMOBILE RECEIVABLES TRUST 2005-A, as Issuer (the "Issuer"), TRIAD
FINANCIAL CORPORATION ("Triad"), as Seller and Servicer (the "Seller" and
"Servicer", respectively), TRIAD FINANCIAL SPECIAL PURPOSE LLC, as Depositor
(the "Depositor") and JPMORGAN CHASE BANK, N.A. as Indenture Trustee (the
"Indenture Trustee").

                             PRELIMINARY STATEMENTS

            A. The Indenture, dated as of May 26, 2005, by and between the
Issuer and the Indenture Trustee (the "Indenture"), provides for, among other
things, the issuance of the Triad Automobile Receivables Trust 2005-A Class A
Asset Backed Notes.

            B. The parties hereto desire that the Insurer issue the Ambac Policy
to the Indenture Trustee for the benefit of the Holders and to, among other
things, specify the conditions precedent thereto, the premium in respect thereof
and the indemnity, reimbursement, reporting and other obligations of the parties
hereto other than the Insurer in consideration thereof.

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

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.1 Defined Terms. Capitalized terms used in this Insurance
Agreement shall have the meanings set forth below. Unless the context clearly
requires otherwise, all capitalized terms used but not defined herein shall have
the respective meanings assigned to them in the Ambac Policy or, if not defined
therein, in the Indenture or, if not defined therein, in the Sale and Servicing
Agreement, or, if not defined therein, in the Purchase Agreement, each as
described below.

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

            "Ambac" means Ambac Assurance Corporation, a Wisconsin domiciled
stock insurance corporation.

            "Ambac Policy" means the Note Guaranty Insurance Policy No. AB0891BE
dated May 26, 2005, including any endorsements thereto, issued by the Insurer to
the Indenture Trustee with respect to the Class A Notes, for the benefit of the
Holders, in the form attached as Exhibit A to this Insurance Agreement.

                                        1
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            "Certificate" means the trust certificate evidencing the beneficial
interest of the Certificateholder in the Trust.

            "Charter Documents" means, with respect to any Transaction Party,
such entity's organizational documents, including its trust agreement,
certificate of trust, memorandum of association, articles of organization,
certificate or articles of incorporation, by-laws and/or operating agreement.

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

            "Class A-1 Notes" means the Class A-1 3.30% Asset Backed Notes,
issued pursuant to the Indenture and substantially in the form attached as an
Exhibit to the Indenture.

            "Class A-2 Notes" means the Class A-2 3.79% Asset Backed Notes,
issued pursuant to the Indenture and substantially in the form attached as an
Exhibit to the Indenture.

            "Class A-3 Notes" means the Class A-3 4.05% Asset Backed Notes,
issued pursuant to the Indenture and substantially in the form attached as an
Exhibit to the Indenture.

            "Class A-4 Notes" means the Class A-4 4.22% Asset Backed Notes,
issued pursuant to the Indenture and substantially in the form attached as an
Exhibit to the Indenture.

            "Closing Date" means May 26, 2005.

            "Collection Period" means, (i) with respect to the first
Distribution Date, the period beginning on the close of business on April 30,
2005 and ending on the close of business on May 31, 2005, and (ii) with respect
to each subsequent Distribution Date, the period beginning on the opening of
business on the first day of the immediately preceding calendar month and ending
on the close of business on the last day of the immediately preceding calendar
month. Any amount stated "as of the close of business on the last day of a
Collection Period" shall give effect to the following calculations as determined
as of the end of the day on such last day: (i) all applications of collections
and (ii) all distributions.

            "Consolidated Tangible Net Worth" means, at any date, the
consolidated Stockholders' Equity of an entity and its consolidated subsidiaries
less their consolidated Intangible Assets, all determined as of such date, and
calculated in accordance with the example set forth as Exhibit B. For purposes
of this definition "Intangible Assets" means the amount (to the extent reflected
in determining such consolidated stockholders' equity) of (i) all write-ups
(other than write-ups resulting from mark-to-market adjustments for foreign
currency or derivative contract positions and write-ups of assets of a going
concern business made within twelve months after the acquisition of such
business) subsequent to April 28, 2005 in the book value of any asset owned by
an entity or a consolidated subsidiary, and (ii) all unamortized debt discount
and expense, unamortized deferred charges, goodwill added to balance sheet
subsequent to April 28, 2005, patents, trademarks, service marks, trade names,
copyrights, organization or developmental expenses and other intangible items.
Intangible Assets shall not include any residual interest in any sales of
receivables or securitization, or any certificate or instrument representing
such residual interest, the values of which, calculated in accordance with GAAP,

                                       2
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shall be included in Stockholders' Equity. For purposes of this definition
"Stockholders' Equity" shall include GAAP retained earnings and any equity
securities such as common stock or common stock equivalents, including, but not
limited to, any non-coupon bearing instruments (other than in a liquidation
preference) such as preferred stock, convertible stock or convertible preferred
stock of Triad or its Successor. In addition, any coupon bearing stock
equivalent (cash, Pay-In-Kind security or combination thereof), preferred or
otherwise, will receive equity treatment (not to exceed 30% of total
consolidated Stockholders' Equity) so long as such instrument provides for the
ability to defer cash coupon payments for a period not to exceed five years and
the holder thereof is not entitled to commence bankruptcy, insolvency or similar
proceedings against Triad or its Successor. In the event of any dispute among
the parties, or any of them, regarding the calculation of Consolidated Tangible
Net Worth or the valuation of any assets included in such calculation, which
cannot be resolved by such parties, in good faith, within thirty (30) days of
all relevant requested information being supplied, the disputing parties shall,
within ten (10) Business Days, agree on a third party (such as an accounting or
investment banking firm) to furnish the results of such calculation within
thirty (30) days, such conclusion to be final and binding on the parties.
Notwithstanding any provision in this Agreement to the contrary, if the
valuation or other calculation made by such third party is 10% or more higher
than the number put forth by the party promoting the lower valuation or other
calculation, then the party promoting the lower valuation shall pay the costs of
the third party, provided that, notwithstanding the foregoing, if the valuation
or other calculation made by such third party is 10% or more higher than the
number put forth by the party promoting the lower valuation or other calculation
and is still less than the greater of (x) 7.25% of such entity's Total Assets
and (y) Tangible Net Worth Floor, then the party promoting such lower valuation
shall not be required to pay the costs of the third party. If the valuation or
other calculation by such third party is 10% or more lower than the number put
forth by the party promoting the higher valuation, then that party shall pay the
costs of the third party, even in the circumstance where such calculation
results in a valuation or other calculation greater than the greater of (x)
7.25% of such entity's Total Assets and (y) Tangible Net Worth Floor. In all
other cases, the costs of the third party shall be shared equally by the
disputing parties.

            "Cram Down Loss" means, for any Receivable (other than a Purchased
Receivable or a Liquidated Receivable), if a court of appropriate jurisdiction
in an insolvency proceeding issued an order reducing the amount owed on the
Receivable or otherwise modifying or restructuring the scheduled payments to be
made on the Receivable, an amount equal to the excess of the Receivable's
Principal Balance immediately prior to the order over the Receivable's Principal
Balance as reduced.

            "Cumulative Net Loss Ratio" means the ratio, expressed as a
percentage, computed by dividing: (a) the Cumulative Net Losses by (b) the
Original Pool Balance.

            "Cumulative Net Losses" means the aggregate principal balance of all
Net Liquidation Losses for each Collection Period from the Closing Date to and
including the then-current Collection Period.

            "Cut-off Date" means April 30, 2005.

                                       3
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            "Deemed Cured" means, as of a Determination Date, that no Spread Cap
Event shall have occurred and be continuing as of such Determination Date and
with respect to the two consecutively preceding Determination Dates.

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

            "Delinquency Rate" means, with respect to any Determination Date, a
fraction, expressed as a percentage, (a) the numerator of which is equal to the
aggregate Principal Balance of all Receivables, other than Liquidated
Receivables, for which all or more than 10% of a Scheduled Receivables Payment
was 60 or more days delinquent as of the last day of the related Collection
Period and (b) the denominator of which is equal to the Aggregate Principal
Balance as of the last day of the related Collection Period.

            "Depositor" has the meaning specified in the initial paragraph
hereof.

            "Determination Date" means, with respect to any Collection Period,
the 3rd Business Day preceding the Distribution Date in the next Collection
Period.

            "Distribution Date" means, with respect to each Collection Period,
the 12th day of the following Collection Period, of, if such day is not a
Business Day, the immediately following Business Day, commencing June 13, 2005.

            "Event of Default" has the meaning specified in Section 5.1 hereof

            "Fee Letter" means that certain letter agreement dated as of the
date hereof between the Issuer and the Insurer and acknowledged by the Indenture
Trustee setting forth certain fees and other matters referred to herein, as the
same may be amended or supplemented from time to time in accordance therewith
and with this Insurance Agreement.

            "Financed Vehicle" means an automobile or light-duty truck, together
with all accessions thereto, securing an Obligor's indebtedness under the
respective Receivable.

            "Holder" has the meaning given thereto in the Ambac Policy.

            "Indemnified Party" has the meaning specified in Section 3.4 hereof.

            "Indemnifying Party" has the meaning specified in Section 3.4
hereof.

            "Indenture" means the Indenture dated as of May 26, 2005 between the
Issuer and JPMorgan Chase Bank, N.A. as Indenture Trustee, as the same may be
amended or supplemented from time to time.

            "Information" has the meaning specified in Section 2.1(c) hereof.

            "Insolvency Proceeding" means any proceeding by or against any
person under any applicable reorganization, bankruptcy, liquidation,
rehabilitation, insolvency or other similar law now or hereafter in effect or
any proceeding in which a receiver, liquidator, conservator,

                                       4
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trustee or similar official shall have been, or may be, appointed or requested
for a person or any of its assets.

            "Insurance Agreement" has the meaning given such term in the initial
paragraph hereof.

            "Insurance Agreement Repurchase Event" means, with respect to any
Collection Period following six (6) months from the Closing Date, the repurchase
of more than five (5) Receivables.

            "Insurer" means Ambac and any successor thereto, as issuer of the
Ambac Policy.

            "Insurer Information" means the information furnished by the Insurer
in writing expressly for use in the Offering Document and is limited to the
information included under the headings "The Insurer" and "The Policy" in the
Prospectus Supplement.

            "Investment Company Act" means the Investment Company Act of 1940,
including, unless the context otherwise requires, the rules and regulations
thereunder, as amended from time to time.

            "Late Payment Rate" means the lesser of (a) the greater of (i) the
per annum rate of interest publicly announced from time to time by Citibank,
N.A. as its prime or base lending rate (any change in such rate of interest to
be effective on the date such change is announced by Citibank, N.A.), plus 2%
per annum and (ii) the then applicable highest rate of interest on the Class A
Notes and (b) the maximum rate permissible under applicable usury or similar
laws limiting interest rates. The Late Payment Rate shall be computed on the
basis of the actual number of days elapsed over a year of 360 days.

            "Liquidated Receivable" means, with respect to any Collection
Period, any Receivable with respect to which any of the following has occurred:
(i) 10% or more of any Scheduled Receivable Payment is 120 days or more past
due, except Receivables with respect to which the related Financed Vehicles have
been repossessed within such 120 days; (ii) the earlier of (A) 90 days have
elapsed since the Servicer repossessed the Financed Vehicle and (B) the sale of
the related Financed Vehicle; or (iii) the Servicer has determined in good faith
that all amounts it expects to be recovered have been received.

            "Material Adverse Effect" means, with respect to any event or
circumstance, a material adverse effect on (a) the business, financial
condition, operations or assets of the Issuer (considered separately) or the
Issuer, the Seller, the Servicer and the Depositor (taken as a whole), (b) the
ability of any Triad Party to perform its obligations under any Transaction
Document to which it is a party, (c) the validity, enforceability of, or
collectibility of, amounts payable by any Triad Party under any Transaction
Document to which it is a party, (d) the status, existence, perfection or
priority of the interest of the Issuer or of the Indenture Trustee in the Trust
Estate, (e) the validity, enforceability or collectibility of all or any portion
of the Trust Estate with an aggregate value of at least $500,000 or (f) the
ability of the Insurer to monitor the performance of the Receivables and
compliance of the Triad Parties with the Transaction Documents unless such
impediment results from an action or omission on the part of the Insurer.

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            "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

            "Net Liquidation Losses" means, with respect to any Determination
Date, the amount, if any, by which (a) the sum of (i) the Principal Balance of
all Receivables which became Liquidated Receivables during the related
Collection Period, and (ii) the aggregate of all Cram Down Losses that occurred
during such Collection Period, exceeds (b) the Net Liquidation Proceeds received
during the related Collection Period in respect of all Liquidated Receivables.

            "Net Liquidation Proceeds" means, with respect to a Liquidated
Receivable, (1) proceeds from the disposition of the underlying Financed
Vehicle; plus (2) any related insurance proceeds; plus (3) other monies received
from the Obligor that are allocable to principal and interest due under the
Receivable, minus (4) the Servicer's reasonable out-of-pocket costs, including
repossession and resale expenses not already deducted from the proceeds, and any
amounts required to be remitted to the Obligor by law.

            "Net Loss Rate" means, with respect to a Collection Period, the
fraction, expressed as a percentage, the numerator of which is equal to the
aggregate of the Net Liquidation Losses for such Collection Period and the
denominator of which is the Aggregate Principal Balance as of the first day of
such Collection Period.

            "Obligor" on a Receivable means the purchaser or co-purchaser(s) of
the Financed Vehicle and any other Person who owes payments under the
Receivable.

            "Offering Document" means, taken together, the Preliminary
Prospectus Supplement, dated May 10, 2005, the Preliminary Prospectus, dated May
10, 2005 the Prospectus Supplement, dated May 18, 2005 (the "Prospectus
Supplement"), and the Prospectus, dated May 18, 2005, of the Issuer, in respect
of the offering and sales of the Class A Notes, any amendment or supplement
thereto, and any other offering document in respect of the Class A Notes that
makes reference to the Ambac Policy.

            "Overcollateralization" means an amount equal to the difference
between (i) the total aggregate amount of the outstanding balances of all
previous, current and future receivables sold by Triad or its Successor that are
not recognized for accounting purposes on a GAAP balance sheet of Triad or its
Successor, less (ii) the total aggregate amount of outstanding balances of all
"AAA" rated insured securities and securities rated "BBB" or above issued for a
senior subordinate asset backed securitization transaction previously, currently
or hereafter issued by Triad or its Successor, that are not recognized for
accounting purposes on a GAAP balance sheet of Triad or its Successor.

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

            "Premium" means the premium payable in accordance with the Fee
Letter.

            "Principal Balance" means, for any Receivable as of any date of
determination, (i) the Amount Financed; minus (ii) the sum of (a) that portion
of all amounts received on or prior to

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that date and allocable to principal according to the Receivable's terms, and
(b) any Cram Down Losses for the Receivable accounted for as of that date.

            "Purchase Agreement" means the Purchase Agreement among Triad
Financial Special Purpose LLC and Triad, dated as of May 26, 2005, as such
Purchase Agreement may be amended or supplemented from time to time.

            "Purchased Receivable" means, with respect to any Collection Period,
a Receivable purchased as of the close of business on the last day of the
Collection Period by Triad or the servicer, as long as JPMorgan Chase Bank, N.A.
is not acting as servicer, as the result of a breach of a covenant or as an
exercise of its optional redemption right.

            "Rating Agencies" means Moody's and S&P.

            "Receivables" means each motor vehicle retail installment sale
contract, installment loan contract or note and security agreement listed on the
Schedule of Receivables attached as an Exhibit to the Sale and Servicing
Agreement.

            "Responsible Officer" means any Vice President, Assistant Vice
President, Assistant Treasurer, Assistant Secretary or any other officer of the
relevant Transaction Party responsible for the performance of such Transaction
Party's obligations under the Transaction Documents and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

            "Sale and Servicing Agreement" means the Sale and Servicing
Agreement, dated as of May 26, 2005, among the Issuer, the Depositor, Triad as
Servicer and Custodian, and the Indenture Trustee and Backup Servicer, as the
same may be amended or supplemented from time to time.

            "Scheduled Receivables Payment" means, with respect to any
Collection Period for any Receivable, the amount set forth in the Receivable as
required to be paid by the Obligor in the Collection Period. If, after the
Closing Date, the Obligor's obligation under a Receivable with respect to a
Collection Period is modified so as to differ from the amount specified in the
Receivable as a result of (i) the order of a court in an insolvency proceeding
involving the Obligor, (ii) pursuant to the Servicemembers Civil Relief Act or
(iii) modifications or extensions of the Receivable permitted by Section 4.2(b)
of the Sale and Servicing Agreement, the Scheduled Receivables Payment with
respect to such Collection Period will refer to the Obligor's payment obligation
with respect to the Collection Period as so modified.

            "Schedule of Receivables" means the schedule of all motor vehicle
retail installment sale contracts, installment loan contracts and note and
security agreements originally held as part of the Trust which is attached as a
Schedule to the Sale and Servicing Agreement.

            "Securities Act" means the Securities Act of 1933, including, unless
the context otherwise requires, the rules and regulations promulgated
thereunder, as amended from time to time.

                                       7
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            "Securities Exchange Act" means the Securities Exchange Act of 1934,
including, unless the context otherwise requires, the rules and regulations
promulgated thereunder, as amended from time to time.

            "Seller" has the meaning specified in the initial paragraph hereof.

            "Servicer" has the meaning specified in the recitals hereof.

            "Servicer Termination Event" has the meaning specified in Section
9.1 of the Sale and Servicing Agreement.

            "Servicing Policy and Procedures" means the policies and procedures
set forth on Schedule C to the Sale and Servicing Agreement, and any amendments
thereto.

            "S&P" means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., and any successor thereto.

            "Spread Cap Event" means, with respect to any Determination Date,
the occurrence of any of the following:

            (a) the Delinquency Rate with respect to such Determination Date
      shall exceed the rate provided for the related Collection Period as set
      forth in Schedule A; or

            (b) the Cumulative Net Loss Ratio with respect to such Determination
      Date shall exceed the rate provided for the related Collection Period as
      set forth in Schedule B;

provided that if the Spread Cap Event is Deemed Cured as of such Determination
Date, there shall be no Spread Cap Event on such Determination Date.

            "Successor" means, following the merger or a consolidation of Triad
with any other Person, or the conveyance, transfer or lease by Triad of all or
substantially all of its assets to another Person, or Triad's permitting any
other Person to become the successor to Triad's business, in each case, such
other Person.

            "Tangible Net Worth Floor" means, with respect to Triad, the
calculation set forth in Exhibit D attached hereto.

            "Total Assets" means, as of any date, the GAAP assets of Triad,
including any sold receivables not recognized for accounting purposes on a GAAP
balance sheet but serviced by Triad, less Overcollateralization, and excluding
Intangible Assets (as that term is defined in the definition of Consolidated
Tangible Net Worth).

            "Transaction" means the transactions contemplated by the Transaction
Documents.

            "Transaction Documents" means this Agreement, the Underwriting
Agreement, the Sale and Servicing Agreement, the Certificate of Trust, the Trust
Agreement, the Purchase

                                       8
<PAGE>

Agreement, the Indenture and all other documents and certificates delivered in
connection therewith except for the Ambac Policy.

            "Transaction Parties" means the Triad Parties and the Indenture
Trustee.

            "Triad" has the meaning specified in the recitals hereof.

            "Triad Party" means any of the Issuer, Triad, the Servicer, the
Depositor and the Holder of the Residual Certificate (collectively, the "Triad
Parties"); provided, however, that solely with respect to the definition of
"Triad Party" as such term is used in the Ambac Policy, "Triad Party" shall have
the meaning as specified therein.

            "Trigger Event" means, with respect to any Determination Date, the
occurrence of any of the following:

            (a) the Delinquency Rate with respect to such Determination Date
      shall exceed the rate provided for the related Collection Period, as set
      forth in Schedule C;

            (b) the Cumulative Net Loss Ratio with respect to such Determination
      Date shall exceed the rate provided for the related Collection Period, as
      set forth in Schedule D; or

            (c) the Consolidated Tangible Net Worth of Triad, or its Successor,
      is less than the greater of (x) 7.25% of its Total Assets and (y) the
      Tangible Net Worth Floor, as set forth in Exhibit D.

            "Trust Agreement" means the Trust Agreement dated as of April 15,
2005 among Triad, as Administrator, the Depositor and the Owner Trustee, as
amended and restated as of May 26, 2005 as the same may be amended and
supplemented from time to time.

            "Underwriter Information" means the information furnished by any
Underwriter in writing expressly for use in the Offering Document and included
in the third, fourth, sixth, seventh, eighth or ninth paragraphs under the
heading "Underwriting" in the Prospectus Supplement.

            "Underwriters" shall mean Citigroup Global Markets Inc. and Goldman,
Sachs & Co. as representatives of the several underwriters named in the
Underwriting Agreement.

            "Underwriting Agreement" means the Underwriting Agreement, dated May
18, 2005 among the Underwriters and the Depositor with respect to the offer and
sale of the Class A Notes, as amended, modified or supplemented from time to
time.

            Section 1.2 Other Definitional Provisions. The words "hereof,"
"herein" and "hereunder" and words of similar import when used in this Insurance
Agreement shall refer to this Insurance Agreement as a whole and not to any
particular provision of this Insurance Agreement, and Section, subsection,
Schedule and Exhibit references are to this Insurance Agreement unless otherwise
specified. The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms. The words
"include" and

                                       9
<PAGE>

"including" shall be deemed to be followed by the phrase "without limitation."
Where a representation, warranty or covenant herein begins with the words "as to
a Person only," such representation, warranty or covenant is given by and as to
such Person only.

                                   ARTICLE II

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

            Section 2.1 Representations and Warranties of the Seller and
Servicer. Triad hereby makes, to and for the benefit of the Insurer, each of the
representations and warranties made by it in each of the Transaction Documents
to which it is a party, including Section 3.1 of the Purchase Agreement and
Sections 4.6 and 8.1 of the Sale and Servicing Agreement. Such representations
and warranties are incorporated herein by this reference as if fully set forth
herein, and may not be amended except by an amendment complying with the terms
of the last sentence of Section 6.1 hereof. In addition, Triad represents and
warrants as of the Closing Date as follows:

            (a) The offer and sale of the Class A Notes by the Issuer comply in
all material respects with all requirements of law, including all registration
requirements of applicable securities laws and, without limiting the generality
of the foregoing, the Offering Document (other than the Underwriter Information
and the Insurer Information) does not contain any untrue statement of a material
fact and does not omit to state a material fact necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading.

            (b) The Indenture has been duly qualified under the Trust Indenture
Act of 1939, as amended; the Issuer is not required to be registered as an
"investment company" under the Investment Company Act; and neither the offer nor
the sale of the Class A Notes by the Issuer will be in violation of the
Securities Act or any other federal or state securities law. Triad shall satisfy
any of the information reporting requirements of the Securities Exchange Act
arising out of the Transaction to which it, the Depositor or the Issuer is
subject.

            (c) Neither the Transaction Documents nor any other information
relating to the Receivables, the Other Conveyed Property or any other asset in
the Trust Estate, the operations or financial condition of any of the Triad
Parties (collectively, the "Information"), as amended, supplemented or
superseded, furnished to the Insurer by such Triad Party contains any statement
of a material fact which was untrue or misleading in any material respect when
made. None of the Triad Parties has any knowledge of any circumstances that
could reasonably be expected to have a Material Adverse Effect. Since the
furnishing of the Information, there has been no change nor any development or
event involving a prospective change known to any of the Triad Parties that
would render any of the Transaction Documents untrue or misleading in any
material respect.

            Section 2.2 Affirmative Covenants of Seller and Servicer. Triad
hereby makes, to and for the benefit of the Insurer, all of the covenants made
by it in the Transaction Documents to which it is a party, including Section 4.5
of the Purchase Agreement and Section 4.6 of the Sale and Servicing Agreement.
Such covenants are hereby incorporated herein by this

                                       10
<PAGE>

reference as if fully set forth herein, and may not be amended except by an
amendment complying with the terms of the last sentence of Section 6.1. In
addition, Triad hereby agrees that during the term of this Insurance Agreement,
unless the Insurer shall otherwise expressly consent in writing:

            (a) Compliance with Agreements and Applicable Laws. It shall comply
with the terms and conditions of and perform its obligations under the
Transaction Documents to which it is a party and shall comply with any law, rule
or regulation applicable to it, except where the failure to comply with any such
law, rule or regulation is not reasonably likely to have a Material Adverse
Effect.

            (b) Existence. Except as otherwise expressly provided by the
Transaction Documents, it shall maintain its corporate existence and shall at
all times continue to be duly organized under the laws of the place of its
organization and duly qualified and duly authorized thereunder. Additionally, it
shall conduct its business in accordance with the terms of its Charter Documents
and shall maintain all licenses, permits, charters and registrations, except for
any such license, permit, charter or registration the failure of which to
maintain is not reasonably likely to have a Material Adverse Effect.

            (c) Notice of Material Events. It shall promptly (and, with respect
to item (ii) below, in any event not later than two (2) Business Days, and, with
respect to all other items not later than five (5) Business Days) following
receipt of actual knowledge by a Responsible Officer thereof inform the Insurer
in writing of the occurrence of any of the following:

            (i) the submission of any claim or the initiation of any legal
      process, litigation or administrative or judicial investigation, or
      disciplinary proceeding by or against it that would be reasonably likely
      to have a Material Adverse Effect or the promulgation of any proceeding or
      any proposed or final ruling in connection with any such litigation,
      investigation or proceeding which would reasonably likely to have a
      Material Adverse Effect;

            (ii) the occurrence of any Event of Default hereunder, any Default
      or Event of Default under the Indenture, any Servicer Termination Event,
      any Trigger Event or any Spread Cap Event;

            (iii) the commencement of any Insolvency Proceeding against any
      Transaction Party;

            (iv) any Person becoming a Successor; and

            (v) the receipt of written notice that (a) any license, permit,
      charter, registration or approval necessary and material for the conduct
      of its business is to be, or may be, suspended or revoked and such
      suspension or revocation would be reasonably likely to have a Material
      Adverse Effect or (b) it is to cease and desist any practice, procedure or
      policy employed by it in the conduct of its business, and such cessation
      would be reasonably likely to have a Material Adverse Effect.

                                       11
<PAGE>

            (d) Notice of Change. It shall give the Insurer not less than thirty
(30) days' prior written notice of any proposed change in its name, principal
place of business or jurisdiction of organization.

            (e) Access to Records; Discussions with Officers and Accountants. As
long as upon reasonable prior written notice of the Insurer, at any time, it
shall permit the Insurer or its authorized agents:

            (i) to inspect its books and its records as they may relate to the
      Transaction, the Receivables, the Other Conveyed Property or any other
      assets in the Trust Estate, as the case may be, or its obligations under
      the Transaction Documents;

            (ii) to discuss its affairs, finances and accounts with its
      principal executive officer and its principal financial officer; and

            (iii) to discuss its affairs, finances and accounts with its
      independent accountants, provided that one of its officers shall have the
      right to be present during such discussions.

            Such inspections and discussions shall be conducted during normal
business hours at Triad's cost and expense and shall not unreasonably disrupt
the business of the Seller or the Servicer. Absent an Event of Default
hereunder, any Default or Event of Default under the Indenture, a Servicer
Termination Event, a Trigger Event or an Insurance Agreement Repurchase Event,
the Insurer shall not conduct such inspections or discussions more often than
annually, unless otherwise mutually agreed by the Insurer and Triad. If,
however, an Event of Default hereunder or under the Indenture, a Servicer
Termination Event, a Trigger Event, a Spread Cap Event or an Insurance Agreement
Repurchase Event has occurred and is continuing, the Insurer may increase the
frequency of such audits to semi-annual, quarterly, or otherwise as it deems
appropriate. Without limiting the foregoing, upon the occurrence of a Trigger
Event an Event of Default hereunder or under the Indenture, a Servicer
Termination Event, a Spread Cap Event or an Insurance Agreement Repurchase
Event, Triad shall make its principal officers available to discuss the
Transaction with representatives of the Insurer within 15 days of receipt by
Triad of such a request from the Insurer.

            (f) Closing Documents. It shall provide or cause to be provided to
the Insurer an executed original copy of each Transaction Document executed by
it in connection with the closing of the Transaction within thirty (30) days of
the Closing Date.

            (g) Field Examination by Independent Public Accountants. Upon
reasonable prior written notice of the Insurer at any time, it shall permit
independent public accountants designated by the Insurer, from time to time to
conduct a field examination(s), and in connection therewith shall permit such
independent public accountants without limitation:

            (i) to inspect its books and records as they may relate to the
      Transaction, the Receivables, the Other Conveyed Property or any other
      assets in the Trust Estate, as the case may be, or its obligations under
      the Transaction Documents;

                                       12
<PAGE>

            (ii) to discuss its affairs, finances and accounts with its
      principal executive officer and its principal financial officer; and

            (iii) to discuss its affairs, finances and accounts with its
      independent accountants, provided that one of its officers shall have the
      right to be present during such discussions.

            Such inspections and discussions shall be conducted during normal
business hours at Triad's cost and expense and shall not unreasonably disrupt
the business of the Seller or the Servicer. Absent an Event of Default hereunder
or under the Indenture, a Servicer Termination Event, a Trigger Event, a Spread
Cap Event or an Insurance Agreement Repurchase Event, the Insurer shall not
conduct such inspections and discussion more often than annually, unless
otherwise mutually agreed by the Insurer and Triad. If, however, an Event of
Default hereunder or under the Indenture, a Servicer Termination Event, a
Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event has
occurred and is continuing, the Insurer may increase the frequency of such
audits to semi-annual, quarterly, or otherwise as it deems appropriate.

            (h) Financial Reporting. Triad shall provide or cause to be provided
to the Insurer the following:

            (i) Annual and Periodic Financial Statements; Other Reporting.
      Copies of the "Accountant's Report" required to be delivered pursuant to
      Section 4.11 of the Sale and Servicing Agreement and such notices,
      certificates, reports and other information delivered by Triad under the
      Transaction Documents, as and when required pursuant to such sections or
      agreements, and any other reporting or financial information required to
      be provided to the Insurer pursuant to the terms of the Transaction
      Documents, including, without limitation, financial projections, as and
      when required pursuant to such terms. Such statements will be provided no
      later than thirty (30) days following each fiscal quarter.

            (ii) Compliance Certificate. Together with the "Accountant's Report"
      required under Section 4.11 of the Sale and Servicing Agreement, a
      compliance certificate signed by its principal financial officer stating
      that to the best of such person's knowledge, (a) each Triad Party is in
      compliance with its obligations hereunder and under the other Transaction
      Documents, and (b) no Event of Default hereunder or under the Indenture or
      Servicer Termination Event exists and no event which but for the lapse of
      time or the giving of notice, or both, would constitute an Event of
      Default hereunder or under the Indenture or Servicer Termination Event or
      Trigger Event exists, or if an Event of Default hereunder or under the
      Indenture or Servicer Termination Event or other such event exists,
      stating the nature and status thereof (including all relevant financial
      and other information and amounts used in determining whether such Event
      of Default hereunder or under the Indenture or Servicer Termination Event
      or Trigger Event or other such event exists).

            (iii) S.E.C. Filings. Promptly after the filing thereof; copies of
      all registration statements and annual, quarterly or other regular reports
      which Triad or any subsidiary files with the Securities and Exchange
      Commission.

                                       13
<PAGE>

            (iv) Shareholders Statements and Reports. Promptly after the
      furnishing thereof to its shareholders, copies of all financial
      statements, reports and proxy statements so furnished.

            (v) Amendments to Servicing Policy and Procedure. Within ten (10)
      Business Days after the date of any material change or amendment to its
      Servicing Policy and Procedure, a true and complete copy of such change or
      amendment, and if requested by the Insurer, a copy of the Servicing Policy
      and Procedure then in effect. No such change or amendment shall become
      effective if the Insurer determines, in its sole discretion, that such
      change or amendment will have a Material Adverse Effect; provided that
      such change or amendment shall become effective and continue to be
      effective if the Insurer has not objected to such change or amendment
      within ten (10) Business Days of receipt of written notice thereof.

            (vi) Servicing Policy and Procedure. Within ninety (90) days after
      the end of each of its fiscal years, a true and complete copy of its
      Servicing Policy and Procedure then in effect.

            (i) Public Debt Ratings. Promptly, but in any event within five (5)
Business Days after the date of any change in its public debt ratings, if any, a
written certification of its public debt ratings after giving effect to such
change.

            (j) Compliance with Securities Laws. It shall comply with the
Securities Act and the Securities Exchange Act and the regulations thereunder so
as to permit the completion of the offer and sale of the Class A Notes as
contemplated by the Underwriting Agreement.

            (k) Disclosure Document. Each Offering Document delivered with
respect to the Class A Notes shall clearly disclose that the insurance provided
by the Ambac Policy is not covered by the property/casualty insurance security
fund specified in Article 76 of the New York Insurance Law.

            (l) Other Information. It shall provide to the Insurer such other
information (including non-financial information) in respect of the Receivables,
the Other Conveyed Property or the other assets in the Trust Estate, as the case
may be, the Transaction and the Transaction Documents and such other financial
or operating information in respect of itself, the Depositor, the Issuer or any
of their Affiliates, in each case, which the Insurer may from time to time
reasonably request.

            Section 2.3 Negative Covenants of the Seller and Servicer. Triad
hereby agrees that during the term of this Insurance Agreement, unless the
Insurer shall otherwise expressly consent in writing:

            (a) Impairment of Rights. It shall not take any action, or fail to
take any action, if such action or failure to take action (x) is reasonably
likely to have a Material Adverse Effect or (y) is reasonably likely to
interfere with the enforcement of any rights of the Insurer under or with
respect to any of the Transaction Documents. It shall give the Insurer written
notice of any such action or failure to act promptly prior to the date of
consummation of such

                                       14
<PAGE>

action or failure to act. It shall furnish to the Insurer all information
requested by it that is reasonably necessary to determine compliance with this
paragraph.

            (b) Amendments, Etc. It shall not modify, amend or waive, or consent
to any modification or amendment of, any of the terms, provisions or conditions
of the Transaction Documents to which it is a party without the prior written
consent of the Insurer thereto.

            (c) Change in Processing Bank. Except as provided in a Blocked
Account Agreement, it shall not permit a change in the Lockbox Account or any
Processing Bank designated in a Blocked Account Agreement without the prior
written consent of the Insurer, which consent shall not be unreasonably
withheld; provided, however, that without limiting the foregoing, it shall be
deemed reasonable for the Insurer to withhold its consent if the long term
senior unsecured debt of any new Processing Bank is not rated at least "A" by
S&P and "A2" by Moody's.

            Section 2.4 Representations and Warranties of the Insurer. The
Insurer represents and warrants to the Indenture Trustee (on behalf of the
Holders), the Issuer and each other Transaction Party as follows:

            (a) Organization and Licensing. The Insurer is a stock insurance
corporation duly organized, validly existing and in good standing under the laws
of the State of Wisconsin.

            (b) Corporate Power. The Insurer has the corporate power and
authority to issue the Ambac Policy and execute and deliver this Insurance
Agreement and to perform all of its obligations hereunder and thereunder.

            (c) Authorization; Approvals. All proceedings legally required for
the issuance of the Ambac Policy and the execution, delivery and performance of
this Insurance Agreement have been taken and all licenses, orders, consents or
other authorizations or approvals of the Insurer's Board of Directors or
stockholders or any governmental boards or bodies legally required for the
enforceability of the Ambac Policy have been obtained or are not material to the
enforceability of the Ambac Policy.

            (d) Enforceability. The Ambac Policy, when issued, will constitute,
and this Insurance Agreement constitutes, legal, valid and binding obligations
of the Insurer, enforceable in accordance with their respective terms, subject
to insolvency, reorganization, moratorium, receivership and other similar laws
affecting creditors' rights generally and by general principles of equity and
subject to principles of public policy limiting the right to enforce the
indemnification provisions contained therein and herein, insofar as such
provisions relate to indemnification for liabilities arising under federal
securities laws.

            (e) No Conflict. The execution by the Insurer of this Insurance
Agreement will not, and the satisfaction of the terms hereof will not, conflict
with or result in a breach of any of the terms, conditions or provisions of the
Certificate of Incorporation or By-Laws of the Insurer, or any restriction
contained in any contract, agreement or instrument to which the Insurer is a
party or by which it is bound or constitute a default under any of the foregoing
which would materially and adversely affect its ability to perform its
obligations under the Ambac Policy or this Insurance Agreement.

                                       15
<PAGE>

            (f) Accuracy of Information. The Insurer Information included in the
Offering Document is limited and does not purport to provide the scope of
disclosure required to be included in a prospectus with respect to a registrant
in connection with the offer and sale of securities of such registrant
registered under the Securities Act. Within such limited scope of disclosure,
however, as of the date of the Offering Document, the Insurer Information does
not contain an untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading.

            Section 2.5 Representations and Warranties of the Depositor and the
Issuer. Each of the Depositor and the Issuer hereby makes, to and for the
benefit of the Insurer, each of the representations and warranties made by the
Depositor or the Issuer, as the case may be, in the Transaction Documents to
which it is a party, including Section 3.2 of the Purchase Agreement and Section
7.1 of the Sale and Servicing Agreement (in the case of the Depositor). Such
representations and warranties are incorporated herein by this reference as if
fully set forth herein, and may not be amended except by an amendment complying
with the terms of Section 6.1 hereof. In addition, the Issuer represents and
warrants as of the Closing Date as follows:

            (a) Accuracy of Information. The information or statements contained
in the Transaction Documents furnished to the Insurer by it, as amended,
supplemented or superseded on or prior to the date hereof, taken as a whole,
does not, if restated at and as of the date hereof, contain any untrue statement
of a material fact or omit to state a material fact necessary to make such
information or statements not misleading in any material respect.

            (b) Compliance with Securities Laws. The Depositor will comply with
the Securities Act and the Securities Exchange Act and the regulations
thereunder so as to permit the completion of the offer and sale of the Class A
Notes as contemplated by the Underwriting Agreement. The offer and sale of the
Class A Notes by the Issuer will comply in all material respects with all
requirements of law, including all registration requirements of applicable
securities laws. Without limiting the foregoing, the Offering Document (other
than the Insurer Information and the Underwriter Information) does not contain
any untrue statement of a material fact and does not omit to state a material
fact necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading. Neither the offer nor
the sale of the Class A Notes by the Issuer has been or will be in violation of
the Securities Act or any other federal or state securities laws. The Depositor
will satisfy all applicable information reporting requirements of the Securities
Exchange Act arising out of the Transaction to which it or the Trust Estate are
subject. The Indenture has been duly qualified under the Trust Indenture Act of
1939, as amended.

            Section 2.6 Affirmative Covenants of the Depositor and the Issuer.
Each of the Depositor and the Issuer hereby makes, to and for the benefit of the
Insurer, all of the covenants of the Depositor or the Issuer, as the case may
be, set forth in the Transaction Documents to which it is a party, including the
covenants contained in Article IV of the Purchase Agreement and Section 7.2 of
the Sale and Servicing Agreement (in the case of the Depositor) and in Article
III of the Indenture (in the case of the Issuer). Such covenants are
incorporated herein by this reference, and may not be amended except by an
amendment complying with the terms of Section 6.1 hereof. In addition, each of
the Depositor and the Issuer hereby agrees that

                                       16
<PAGE>

during the term of this Insurance Agreement, unless the Insurer shall otherwise
expressly consent in writing:

            (a) Compliance with Agreements and Applicable Laws. It shall comply
with the terms and conditions of and perform its obligations under the
Transaction Documents to which it is a party and shall comply with any law, rule
or regulation applicable to it, except where the failure to comply with any such
law, rule or regulation is not reasonably likely to have a Material Adverse
Effect.

            (b) Existence. It shall maintain its existence as a limited
liability company or a statutory trust, as the case may be, under the laws of
the State of Delaware and shall at all times continue to be duly formed and
validly existing in good standing under the laws of the State of Delaware and
duly qualified and duly authorized thereunder and shall conduct its business in
accordance with the terms of its Charter Documents. The Issuer shall cause the
Receivables Files to be located at such location as specified in Section 3.3(c)
of the Sale and Servicing Agreement.

            (c) Access to Records; Discussions with Officers and Accountants.
Upon reasonable prior written notice of the Insurer, at any time, it shall
permit the Insurer or its authorized agents:

            (i) to inspect its books and records;

            (ii) to discuss its affairs, finances and accounts with its
      principal executive officer and its principal financial officer; and

            (iii) to discuss its affairs, finances and accounts with its
      independent accountants, provided that one of its officers and an officer
      of Triad shall have the right to be present during such discussions.

            Such inspections and discussions shall be conducted during normal
business hours at the cost and expense of Triad and shall not unreasonably
disrupt the Depositor's or Issuer's business, as the case may be. Absent an
Event of Default hereunder or under the Indenture, a Servicer Termination Event,
a Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event,
the Insurer shall not conduct such inspections or discussions more often than
annually, unless otherwise mutually agreed by the Insurer and Triad. If,
however, an Event of Default hereunder or under the Indenture, a Servicer
Termination Event, a Trigger Event, a Spread Cap Event or an Insurance Agreement
Repurchase Event has occurred and is continuing, the Insurer may increase the
frequency of such audits to semi-annual, quarterly, or otherwise as it deems
appropriate. Without limiting the foregoing, upon the occurrence of an Event of
Default hereunder or under the Indenture, a Servicer Termination Event, a
Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event,
the Depositor and the Issuer shall make their respective principal officers
available to discuss the Transaction with representatives of the Insurer within
15 days of receipt by the Depositor and the Issuer, as the case may be, of such
a request from the Insurer.

            (d) Notice of Material Events. It shall be obligated promptly (and,
with respect to item (ii) below, in any event not later than two (2) Business
Days, and with respect to

                                       17
<PAGE>

all other items below, not later than five (5) Business Days) following receipt
of actual knowledge by a Responsible Officer thereof to inform the Insurer in
writing of the occurrence of any of the following:

            (i) the submission of any claim or the initiation of any legal
      process, litigation or administrative or judicial investigation, or
      disciplinary proceeding by or against it that would be reasonably likely
      to have a Material Adverse Effect or the promulgation of any proceeding or
      any proposed or final ruling in connection with any such litigation,
      investigation or proceeding which would reasonably likely to have a
      Material Adverse Effect;

            (ii) the occurrence of an Event of Default hereunder, a Default or
      Event of Default under the Indenture, a Servicer Termination Event, a
      Trigger Event or a Spread Cap Event;

            (iii) the commencement of any Insolvency Proceeding against any
      Transaction Party; and

            (iv) the receipt of written notice that (a) any license, permit,
      charter, registration or approval necessary for the conduct of its
      business is to be, or may be, suspended or revoked and such suspension or
      revocation would be reasonably likely to have a Material Adverse Effect or
      (b) it is to cease and desist any practice, procedure or policy employed
      by it in the conduct of its business, and such cessation would be
      reasonably likely to have a Material Adverse Effect.

            (e) It shall give the Insurer not less than thirty (30) days' prior
written notice of any proposed change in its name, principal place of business
or jurisdiction of organization.

            (f) Field Examination by Independent Public Accountants. Upon
reasonable prior written notice of the Insurer at any time, it shall permit
independent public accountants designated by the Insurer, from time to time to
conduct a field examination(s), and in connection therewith shall permit such
independent public accountants, without limitation:

            (i) to inspect its books and records;

            (ii) to discuss its affairs, finances and accounts with its
      principal executive officer and its principal financial officer; and

            (iii) to discuss its affairs, finances and accounts with its
      independent accountants; provided that one of its officers and an officer
      of the Depositor or the Issuer, as the case may be, and one officer of
      Triad (if Triad is then the Servicer) shall have the right to be present
      during such discussions.

            Such inspections and discussions shall be conducted during normal
business hours at the cost and expense of Triad and shall not unreasonably
disrupt the business of the Depositor or the Issuer, as the case may be. Absent
an Event of Default hereunder or under the Indenture, a Servicer Termination
Event, a Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase
Event, the Insurer shall not conduct field examinations more often than
annually,

                                       18
<PAGE>

unless otherwise mutually agreed by the Insurer and Triad. If, however, an Event
of Default hereunder or under the Indenture, a Servicer Termination Event, a
Trigger Event, a Spread Cap Event or an Insurance Agreement Repurchase Event has
occurred and is continuing, the Insurer may increase the frequency of such
audits to semi-annual, quarterly, or otherwise as it deems appropriate.

            (g) Maintenance of Licenses. It shall maintain all licenses,
permits, charters and registrations, except for licenses, permits, charters and
registrations the failure of which to maintain is not reasonably likely to have
a Material Adverse Effect.

            (h) Financial Reporting. It shall provide or cause to be provided to
the Insurer, as soon as practicable and in any event within 90 days after the
end of each of its fiscal years, an annual balance sheet as at the end of such
fiscal year and the notes thereto, and the related statements of income and cash
flows and the respective notes thereto for such fiscal year, certified by its
principal financial officer.

            (i) Financial Statements. Its financial statements and books and
records will reflect its separate existence and will present fairly its
financial position.

            (j) Other Information. It shall provide to the Insurer such other
information (including non-financial information) in respect of the Receivables,
the Other Conveyed Property or the other assets in the Trust Estate, as the case
may be, the Transaction and the Transaction Documents and such other financial
or operating information in respect of itself and the Receivables which the
Insurer may from time to time reasonably request.

            (k) Operation. It shall:

            (i) manage its day-to-day business without the involvement of any
      other Transaction Party except as required or permitted by the Transaction
      Documents or in connection with certain administrative services provided
      to the Depositor by the Seller;

            (ii) act solely in its own name in the conduct of its business,
      including business correspondence and other communications, and shall
      conduct its business so as not to mislead others as to the identity of the
      entity with which they are concerned;

            (iii) ensure that, to the extent that it shares the same officers or
      other employees as any of its Affiliates, the salaries of and the expenses
      related to providing benefits to such officers and other employees shall
      be fairly allocated among such entities, and each such entity shall bear
      its fair share of the salary and benefit costs associated with all such
      common officers and employees;

            (iv) ensure that, to the extent that it jointly contracts with any
      of its Affiliates to do business with vendors or service providers or to
      share overhead expenses, the costs incurred in doing so shall be allocated
      fairly among such entities, and each such entity shall bear its fair share
      of such costs. To the extent that it contracts or does business with
      vendors or service providers when the goods and services provided are
      partially for the benefit of any other Person, the costs incurred in so
      doing shall be fairly allocated to or among such entities for whose
      benefit the goods and services are provided, and each such

                                       19
<PAGE>

      entity shall bear its fair share of such costs. All material transactions
      between the other Transaction Parties and its Affiliates shall only be on
      an arm's-length basis;

            (v) require that all of its full-time employees identify themselves
      as such and not as employees of Triad or any other Triad Party (including,
      without limitation, by means of providing appropriate employees with
      business or identification cards identifying such employees as its
      employees); and

            (vi) compensate all employees, consultants and agents directly, from
      its bank accounts, for services provided to it by such employees,
      consultants and agents, and, to the extent any of its employees,
      consultants or agents is also an employee, consultant or agent of Triad
      (or any Affiliate thereof), allocate the compensation of such employee,
      consultant or agent between itself and Triad (or any Affiliate thereof) on
      a basis which reflects the services rendered to itself and Triad (or such
      Affiliate thereof).

            (l) Special Purpose Entity. In addition, the Depositor shall:

            (i) ensure that its capital is adequate for the business and
      undertakings of the Depositor;

            (ii) other than activities in connection with the Transaction, be
      restricted from undertaking any activities other than purchasing
      automobile loans receivables and transferring the proceeds to other
      special-purpose entities in connection with the issuance of other
      asset-backed securities;

            (iii) have at least one director, manager or member that is a person
      who is not, and will not be, a director, officer, employee or holder of
      any equity securities of Triad or any of its affiliates or subsidiaries;

            (iv) not commingle its funds and assets with the funds of any other
      person; and

            (v) maintain (A) correct and complete minute books and records of
      account, and (B) minutes of the meetings and other proceedings of its
      board of managers, as provided in its limited liability company agreement.

            Section 2.7 Negative Covenants of the Depositor and the Issuer. Each
of the Depositor and the Issuer hereby agrees that during the term of this
Insurance Agreement, unless the Insurer shall otherwise expressly consent in
writing:

            (a) Impairment of Rights. It shall not take any action, or fail to
take any action, if such action or failure to take action (x) is reasonably
likely to have a Material Adverse Effect or (y) is reasonably likely to
interfere with the enforcement of any rights of the Insurer under or with
respect to any of the Transaction Documents. It shall give the Insurer written
notice of any such action or failure to act promptly prior to the date of
consummation of such action or failure to act. It shall furnish to the Insurer
all information requested by the Insurer that is reasonably necessary to
determine compliance with this paragraph.

                                       20
<PAGE>

            (b) Amendments, Etc. It shall not modify, amend or waive, or consent
to any modification, amendment or waiver of, any of the terms, provisions or
conditions of the Transaction Documents to which it is a party, or any of its
Charter Documents without the prior written consent of the Insurer.

            (c) Limitation on Mergers, Etc. It shall not consolidate with or
merge with or into any Person or liquidate or dissolve, or transfer all or
substantially all of its assets to any Person except, in the case of the Issuer,
by way of the grant of a lien to the Indenture Trustee pursuant to the
Transaction Documents, or, except as expressly permitted by the Transaction
Documents, transfer any of its assets to any Person.

            (d) Certain Other Limitations. It shall

            (i) not be named as an insured on the insurance policy held by
      another Triad Party or covering the property of any other Triad Party,
      except to the extent it shall bear its allocable share of the expense
      thereof, or enter into an agreement with the holder of such policy whereby
      in the event of a loss in connection with property not owned by the Issuer
      or the Depositor, as the case may be, proceeds are paid to it.

            (ii) be restricted from undertaking activities in connection with
      the issuance of the Class A Notes other than activities as set forth in
      its Charter Documents;

            (iii) not be involved in the day-to-day management of any of the
      other Triad Parties except as required by or permitted by the Transaction
      Documents or in connection with certain administrative services provided
      to the Depositor by the Seller;

            (iv) not incur, assume or guarantee any indebtedness except for such
      indebtedness as may be incurred by the Issuer in connection with the
      issuance of the Class A Notes, or as otherwise expressly permitted by the
      Insurer or the Transaction Documents;

            (v) not commingle its deposit accounts (and funds therein) or other
      assets with the deposit accounts (and funds therein) or other assets of
      any other entity;

            (vi) not act as an agent of any other Triad Party; and

            (vii) not form, or cause to be formed, any subsidiaries; provided
      that the Depositor may form other special purpose entities in connection
      with the issuance of other asset-backed securities to the extent the
      Insurer acts as an insurer in connection with such transactions.

                                  ARTICLE III

                         THE AMBAC POLICY; REIMBURSEMENT

            Section 3.1 Issuance of the Ambac Policy. The Insurer agrees to
issue the Ambac Policy on the Closing Date subject to satisfaction of the
conditions precedent set forth below:

                                       21
<PAGE>

            (a) Payment of Expenses. The applicable parties shall have been paid
their related fees and expenses payable in accordance with Sections 3.2(a) and
(b);

            (b) Receipt of Certain Documents. The Insurer shall have received a
complete copy of the Servicing Policy and Procedures then in effect certified by
the principal financial officer of Triad and of each Transaction Document fully
executed and delivered by each applicable Transaction Party;

            (c) Representations and Warranties; Certificate. The representations
and warranties of the Triad Parties set forth or incorporated by reference in
this Insurance Agreement and the representations and warranties set forth by the
Indenture Trustee in the Indenture are true and correct on and as of the Closing
Date as if made on the Closing Date, and the Insurer has received a certificate
of appropriate officers of the related Triad Party to that effect;

            (d) No Litigation, Etc. No suit, action or other proceeding,
investigation or injunction, or final judgment relating thereto, is pending or,
to any Transaction Party's knowledge, threatened before any court, governmental
or administrative agency or arbitrator in which it is sought to restrain or
prohibit or to obtain damages or other relief in connection with any of the
Transaction Documents or the consummation of the Transaction;

            (e) Legality. No statute, rule, regulation or order has been
enacted, entered or deemed applicable by any government or governmental or
administrative agency or court that would make the Transaction illegal or
otherwise prevent the consummation thereof,

            (f) No Event of Default. No Event of Default hereunder, Default or
Event of Default under the Indenture, Trigger Event, Servicer Termination Event,
Spread Cap Event or Insurance Agreement Repurchase Event has occurred;

            (g) Satisfaction of Conditions of the Underwriting Agreement. All
conditions in the Underwriting Agreement relating to the Underwriters'
obligation to offer and sell the Class A Notes have been fulfilled to the
satisfaction of the Insurer, with such satisfaction deemed to have occurred upon
issuance of the Ambac Policy. The Insurer has received copies of each of the
documents, and shall be entitled to rely on each of the documents, required to
be delivered to the Underwriters pursuant to the Underwriting Agreement;

            (h) Issuance of Ratings. The Insurer has received confirmation that
the Class A-1 Notes will be rated in the highest short-term rating category by
at least two nationally recognized statistical rating agencies, that the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes will be rated in the
highest long-term rating category by at least two nationally recognized
statistical rating agencies and that, without the benefit of the Ambac Policy,
the Class A Notes will have a shadow rating of at least "BBB" from S&P and
"Baa2" from Moody's;

            (i) Approvals, Etc. The Insurer has received true and correct copies
of all approvals, licenses and consents, if any, required in connection with the
Transaction;

            (j) Fee Letter. The Insurer, the Indenture Trustee and the Issuer
have executed the Fee Letter;

                                       22
<PAGE>

            (k) Certified Copies. The Insurer has received an executed copy of
each Transaction Document;

            (l) Opinions. The Insurer has received opinions of counsel to the
Issuer and Triad concerning the perfection of the Indenture Trustee's security
interest in the Trust Estate and other matters under the laws of the United
States, and has received copies of any opinions delivered to the Rating
Agencies, the Noteholders and the Indenture Trustee, in each case addressed to,
and in form and substance satisfactory to, the Insurer;

            (m) Satisfactory Documentation. The Insurer and its counsel have
determined that all documents, the Class A Notes and opinions to be delivered in
connection with the Class A Notes conform to the terms of the Indenture, the
Offering Document, the Underwriting Agreement, the Sale and Servicing Agreement,
the Purchase Agreement and this Insurance Agreement; and

            (n) Additional Items. The Insurer has received such other documents,
instruments, approvals or opinions in form and substance reasonably satisfactory
to the Insurer as are reasonably requested by the Insurer, including evidence
reasonably satisfactory to the Insurer that the conditions precedent, if any, in
the Transaction Documents have been satisfied.

            Section 3.2 Payment of Fees and Premium.

            (a) Legal and Accounting Fees. Triad shall pay or cause to be paid
on the Closing Date all reasonable legal fees, auditors' fees and disbursements
incurred by the Insurer in connection with the issuance of the Ambac Policy and
the Transaction Documents through the Closing Date. Additional fees of the
Insurer's counsel or auditors payable in connection with the Transaction
Documents incurred after the Closing Date shall be paid by Triad as provided in
Section 3.3 below.

            (b) Rating Agency Fees. Triad shall promptly pay the initial fees of
the Rating Agencies with respect to the Class A Notes and the transactions
contemplated hereby following receipt of a statement with respect thereto, and
shall pay or cause to be paid any subsequent fees of the Rating Agencies with
respect to, and directly allocable to, the Class A Notes. The Insurer shall not
be responsible for any fees or expenses of the Rating Agencies. The fees for any
other rating agency shall be paid by the party requesting such other rating
agency's rating.

            (c) Premium. In consideration of the issuance by the Insurer of the
Ambac Policy, the Issuer shall pay or cause to be paid the Premiums to the
Insurer as set forth in the Fee Letter in accordance with the Indenture and this
Insurance Agreement and from the funds specified by Section 5.7 of the Sale and
Servicing Agreement, commencing on the day the Ambac Policy is issued, until the
Ambac Policy has been terminated in accordance with its terms. The Premium paid
pursuant to the Indenture and the Sale and Servicing Agreement shall be
nonrefundable without regard to whether any Notice (as defined in the Ambac
Policy) is delivered to the Insurer requiring the Insurer to make any payment
under the Ambac Policy or any other circumstances relating to the Class A Notes
or provision being made for payment of the Class A Notes prior to maturity.

                                       23
<PAGE>

            Section 3.3 Reimbursement Obligation. (a) The Issuer agrees
absolutely and unconditionally to reimburse the Insurer for any amounts paid by
the Insurer under the Ambac Policy, plus the amount of any other due and payable
and unpaid Reimbursement Amounts (as defined in the Ambac Policy), which
reimbursement shall be due and payable, on the date that any such amount is paid
thereunder in an amount equal to the amounts so paid and all amounts previously
paid that remain unreimbursed, together (without duplication) with interest on
any and all amounts remaining unreimbursed (to the extent permitted by law, if
in respect of any unreimbursed amounts representing interest) from the date such
amounts became due until paid in full (after as well as before judgment), at a
rate of interest equal to the Late Payment Rate.

            (a) Each of the Issuer and Triad agrees, jointly and severally, to
pay to the Insurer, promptly, but in no event later than 30 days after demand
thereof, as follows: any and all charges, fees, costs and expenses, including
reasonable attorneys' and accountants' fees and expenses, that the Insurer may
pay or incur in connection with the Transaction Documents, including (i) the
enforcement, defense or preservation of any rights in respect of any of the
Transaction Documents, defending, monitoring or participating in any litigation
or proceeding (including any insolvency proceeding in respect of any Triad Party
or any Affiliate thereof) relating to any of the Transaction Documents, any
party to any of the Transaction Documents (in its capacity as such a party) or
the Transaction, the costs and fees of inspections by the Insurer or audits or
field examinations by accountants and the ongoing administration of the
Transaction pursuant to the Transaction Documents, or (ii) any amendment, waiver
or other similar action with respect to, or related to, any Transaction
Document, whether or not executed or completed.

            (b) Each of the Issuer and Triad agrees, jointly and severally, to
pay to the party to whom such amounts are owed on demand interest at the Late
Payment Rate on any and all amounts described in Sections 3.3(b) and 3.4 after
the date such amounts become due and payable until payment thereof in full.

            (c) The Insurer acknowledges that any amounts payable by the Issuer
pursuant to Sections 3.3(a), 3.3(b), 3.3(c) or 3.4(b) herein, are payable solely
from amounts that are available to make such payments pursuant to clause FOURTH
of Section 5.6(a) of the Indenture and Sections 5.7(a)(vi),(vii) or (x) of the
Sale and Servicing Agreement, as applicable.

            Section 3.4 Indemnification. (a) In addition to any and all of the
Insurer's rights of reimbursement, indemnification or subrogation, and to any
other rights of the Insurer pursuant hereto or under law or in equity, each of
Triad and the Depositor agrees, jointly and severally, to pay, and to protect,
indemnify and save harmless, the Insurer and its officers, directors,
shareholders, employees, agents and each Person, if any, who controls the
Insurer within the meaning of either Section 15 of the Securities Act or Section
20 of the Securities Exchange Act from and against, any and all claims, losses,
liabilities (including penalties), actions, suits, judgments, demands, damages,
costs or expenses (including reasonable fees and expenses of attorneys,
consultants and auditors and reasonable costs of investigations) of any nature
arising out of or relating to the transactions contemplated by the Transaction
Documents by reason of:

            (i) any statement, omission or action (other than of the Insurer
      with respect to the Insurer Information, or of the Underwriters with
      respect to the Underwriter

                                       24
<PAGE>

      Information) in connection with the offering, issuance, sale or delivery
      of any of the Class A Notes;

            (ii) the negligence, bad faith, willful misconduct, misfeasance,
      malfeasance or theft committed by any director, officer, employee or agent
      of any Triad Party in connection with the Transaction;

            (iii) the violation by any Triad Party of any domestic or foreign
      law, rule or regulation, or any judgment, order or decree applicable to
      them;

            (iv) the breach by any Triad Party of any representation, warranty
      or covenant under any of the Transaction Documents (without giving effect
      to any materiality qualifier or limitation therein);

            (v) the occurrence, in respect of Triad's duties as the Servicer,
      under any of the Transaction Documents of any Servicer Termination Event
      or any event which, with the giving of notice or the lapse of time or
      both, would constitute any Servicer Termination Event; or

            (vi) any untrue statement or alleged untrue statement of a material
      fact contained in the Offering Document or any omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein, in light of the circumstances
      under which they were made, not misleading, except insofar as such claims,
      losses, liabilities (including penalties), actions, suits, judgments,
      demands, damages, costs or expenses (including reasonable fees and
      expenses of attorneys, consultants and auditors and reasonable costs of
      investigations) arise out of or are based upon any untrue statement or
      omission in the Offering Document in the information with respect to (x)
      the Insurer Information and (y) the Underwriter Information.

            (b) In addition to any and all of the Insurer's rights of
reimbursement, indemnification or subrogation, and to any other rights of the
Insurer pursuant hereto or under law or in equity, the Issuer agrees to pay, and
to protect, indemnify and save harmless, the Insurer and its officers,
directors, shareholders, employees, agents and each Person, if any, who controls
the Insurer within the meaning of either Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act from and against, any and all claims,
losses, liabilities (including penalties), actions, suits, judgments, demands,
damages, costs or expenses (including reasonable fees and expenses of attorneys,
consultants and auditors and reasonable costs of investigations) of any nature
arising out of or relating to the transactions contemplated by the Transaction
Documents, including by reason of:

            (i) any statement, omission or action (other than of the Insurer
      with respect to the Insurer Information, or of the Underwriter with
      respect to the Underwriter Information) in connection with the offering,
      issuance, sale or delivery of any of the Class A Notes;

                                       25
<PAGE>

            (ii) the negligence, bad faith, willful misconduct, misfeasance,
      malfeasance or theft committed by any director, officer, employee or agent
      of any Transaction Party in connection with the Transaction;

            (iii) the violation by any Transaction Party of any domestic or
      foreign law, rule or regulation, or any judgment, order or decree
      applicable to them;

            (iv) the breach by any Transaction Party of any representation,
      warranty or covenant under any of the Transaction Documents (without
      giving effect to any materiality qualifier or limitation therein); or

            (v) any untrue statement or alleged untrue statement of a material
      fact contained in the Offering Document or any omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein, in light of the circumstances
      under which they were made, not misleading, except insofar as such claims,
      losses, liabilities (including penalties), actions, suits, judgments,
      demands, damages, costs or expenses (including reasonable fees and
      expenses of attorneys, consultants and auditors and reasonable costs of
      investigations) arise out of or are based upon any untrue statement or
      omission in the Offering Document in the information with respect to (x)
      the Insurer Information and (y) the Underwriter Information.

            (c) The Insurer agrees to pay, and to protect, indemnify and save
harmless each of Triad, the Depositor and the Issuer, and their respective
officers, directors, shareholders, employees, agents and each Person, if any,
who controls Triad, the Depositor and the Issuer, within the meaning of either
Section 15 of the Securities Act or Section 20 of the Securities Exchange Act
from and against, any and all claims, losses, liabilities (including penalties),
actions, suits, judgments, demands, damages, costs or expenses (including
reasonable fees and expenses of attorneys, consultants and auditors and
reasonable costs of investigations) of any nature arising out of or by reason of
any untrue statement or alleged untrue statement of a material fact contained in
the Insurer Information in any Offering Document or any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

            (d) If any action or proceeding (including any governmental
investigation) shall be brought or asserted against any Person (each, an
"Indemnified Party") in respect of which the indemnity provided in Section
3.4(a), (b) or (c) may be sought from Triad, the Depositor, the Issuer or the
Insurer, as the case may be (the "Indemnifying Party"), each such Indemnified
Party shall promptly notify the Indemnifying Party in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
expenses and legal fees; provided that failure to notify the Indemnifying Party
shall not relieve it from any liability it may have to such Indemnified Party
except to the extent that it shall be actually prejudiced thereby. The
Indemnified Party shall have the right to employ separate counsel in any such
action and to participate in the defense thereof at the expense of the
Indemnified Party and may assume the defense of any such action or claim in
reasonable cooperation with, and with the reasonable

                                       26
<PAGE>

cooperation of, the Indemnifying Party; provided, however, that the fees and
expenses of separate counsel to the Indemnified Party in any such proceeding
shall be at the expense of the Indemnifying Party if (i) the Indemnifying Party
has agreed to pay such fees and expenses, (ii) the Indemnifying Party shall have
failed to assume the defense of such action or proceeding or employ counsel
reasonably satisfactory to the Indemnified Party in any such action or
proceeding within a reasonable time after the commencement of such action or
(iii) the named parties to any such action or proceeding (including any
impleaded parties) include both the Indemnified Party and the Indemnifying
Party, and the Indemnified Party shall have been advised by counsel that there
may be one or more legal defenses available to it which are different from or
additional to those available to the Indemnifying Party (in which case, if the
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense of such action
or proceeding on behalf of such Indemnified Party, it being understood, however,
that the Indemnifying Party shall not, in connection with any one such action or
proceeding or separate but substantially similar or related actions or
proceedings in the same jurisdiction arising out of the same general allegations
or circumstances, be liable for the reasonable fees and expenses of more than
one separate firm of attorneys at any time for the Indemnified Parties, which
firm shall be designated in writing by the Indemnified Party). The Indemnifying
Party shall not be liable for any settlement of any such action or proceeding
effected without its written consent to the extent that any such settlement
shall be prejudicial to the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed, but, if settled with its written consent, or
if there is a final judgment for the plaintiff in any such action or proceeding
with respect to which the Indemnifying Party shall have received notice in
accordance with this subsection (d), the Indemnifying Party agrees to indemnify
and hold the Indemnified Parties harmless from and against any loss or liability
by reason of such settlement or judgment.

            (e) To provide for just and equitable contribution if the
indemnification provided by the Indemnifying Party is determined to be
unavailable or insufficient to hold harmless any Indemnified Party (other than
due to application of this Section), each Indemnifying Party shall contribute to
the losses incurred by the Indemnified Party on the basis of the relative fault
of the Indemnifying Party, on the one hand, and the Indemnified Party, on the
other hand. The relative fault of each Indemnifying Party, on the one hand, and
each Indemnified Party, on the other, shall be determined by reference to, among
other things, whether the breach or alleged breach is within the control of the
Indemnifying Party or the Indemnified Party, and the parties relative intent,
knowledge, access to information and opportunity to correct or prevent such
breach. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

            Section 3.5 Payment Procedure. In the event of any payment by the
Insurer for which reimbursement is sought under Section 3.3, the Issuer, Triad
and the Indenture Trustee agree to accept the voucher or other evidence of
payment as prima facie evidence of the propriety thereof and the liability, if
any, described in Section 3.3 therefor to the Insurer; provided, that with
respect to claims for reimbursement of amounts other than amounts paid by the
Insurer under the Ambac Policy and any interest thereon made to Triad under
Section 3.3(b), the Insurer will also provide appropriate supporting documents
to Triad for such claims. All

                                       27
<PAGE>

payments to be made to the Insurer under this Insurance Agreement shall be made
to the Insurer (to such account as shall be specified by the Insurer in writing)
by no later than 3:00 p.m. (New York time) on the date when due in lawful
currency of the United States of America in immediately available funds or as
the Insurer shall otherwise direct by written notice to the party making such
payment. In the event that the date of any payment to the Insurer or the
expiration of any time period hereunder occurs on a day that is not a Business
Day, then such payment or expiration of time period shall be made or occur on
the next succeeding Business Day with the same force and effect as if such
payment was made or time period expired on the scheduled date of payment or
expiration date.

            Section 3.6 Subrogation. The parties hereto acknowledge that, to the
extent of any payment made by the Insurer pursuant to the Ambac Policy, the
Insurer shall be fully subrogated to the extent of such payment and any interest
due thereon, to the rights of the Noteholders to any moneys paid or payable in
respect of the Class A Notes under the Transaction Documents or otherwise
subject to applicable law. The parties hereto agree to such subrogation and
further agree to execute such instruments and to take such actions as, in the
sole and reasonable judgment of the Insurer, are necessary to evidence such
subrogation and to perfect the rights of the Insurer to receive any such moneys
paid or payable in respect of the Class A Notes, under the Transaction Documents
or otherwise.

                                   ARTICLE IV

                               FURTHER AGREEMENTS

            Section 4.1 Effective Date; Term of the Insurance Agreement. This
Insurance Agreement shall take effect on the Closing Date and shall remain in
effect until the later of (a) such time as the Insurer is no longer subject to a
claim under the Ambac Policy and such policy has been surrendered to the Insurer
for cancellation and (b) such time as all amounts payable to the Insurer by the
Triad Parties hereunder or under the Transaction Documents and the Class A Notes
have been irrevocably paid and redeemed in full and such Class A Notes have been
cancelled; provided, however, that the provisions of Sections 3.2, 3.3 and 3.4
hereof shall survive any termination of this Insurance Agreement.

            Section 4.2 Further Assurances and Corrective Instruments. (a)
Unless an Insurer Event of Default has occurred and is continuing, or except as
the Indenture otherwise provides, none of the Indenture Trustee and none of the
other Transaction Parties shall grant any waiver of rights under any of the
Transaction Documents to which any of them is a party without the prior written
consent of the Insurer and any such waiver without prior written consent of the
Insurer shall be null and void and of no force or effect.

            (b) Each of the parties hereto agrees that it will, from time to
time, execute, acknowledge and deliver, or cause to be executed, acknowledged
and delivered, such supplements hereto and such further instruments and
agreements and take such further actions as the Insurer may reasonably request
and as may be required in the Insurer's reasonable judgment to effectuate the
intent and purpose of this Insurance Agreement and the other Transaction
Documents. Without limiting the foregoing, to the extent such authorization
shall be required by law, each Triad Party hereby authorizes the Indenture
Trustee and the Insurer, at the expense of

                                       28
<PAGE>

the Issuer, in the event the Issuer has failed to do so upon request (provided
that no such request shall be required if there exists any Insolvency
Proceeding), to execute and file financing statements covering the assets
covered by any purchase or transfer pursuant to the Transaction Documents or
owned by the Issuer in such jurisdictions as may be required to confirm title
thereto and perfect and maintain the lien thereon. In addition, each of the
parties hereto agrees to cooperate with the Rating Agencies in connection with
any review of the Transaction conducted during normal business hours and in a
manner that does not unreasonably disrupt the business of the Transaction
Parties, that may be undertaken by the Rating Agencies after the date hereof
upon prior written notice.

            (c) None of the Transaction Parties shall cause or permit the Issuer
to issue any notes or other evidences of indebtedness, or to otherwise incur any
indebtedness, other than the indebtedness represented by the Class A Notes or
other indebtedness expressly permitted under the Transaction Documents.

            (d) Each Transaction Party shall concurrently provide the Insurer,
as and when delivery thereof is required to be made pursuant to the Transaction
Documents, with copies of all reports, notices, requests and demands delivered
or required to be delivered by it pursuant to the Transaction Documents.

            Section 4.3 Obligations Absolute. (a) The obligations of the
Transaction Parties hereunder shall be absolute and unconditional and shall be
paid or performed strictly in accordance with this Insurance Agreement and the
other Transaction Documents under all circumstances irrespective of:

            (i) any lack of validity or enforceability of, or any amendment or
      other modifications of, or waiver with respect to, any of the Transaction
      Documents or the Class A Notes;

            (ii) any exchange or release of any other obligations hereunder;

            (iii) the existence of any claim, setoff, defense, reduction,
      abatement or other right that a Transaction Party which is a party to any
      of the Transaction Documents may have at any time against the Insurer or
      any other Person;

            (iv) any document presented in connection with the Ambac Policy
      proving to be forged, fraudulent, invalid or insufficient in any respect
      or any statement therein being untrue or inaccurate in any respect;

            (v) any payment by the Insurer under the Ambac Policy against
      presentation of a certificate or other document that does not strictly
      comply with the terms of the Ambac Policy;

            (vi) any failure of the Transaction Parties to receive the proceeds
      from the sale of the Class A Notes;

            (vii) any Insolvency Event with respect to any Transaction Party;
      and

                                       29
<PAGE>

            (viii) any other circumstances, other than payment in full, that
      might otherwise constitute a defense available to, or discharge of, such
      party in respect of any Transaction Document.

            (b) The Transaction Parties and any and all others who are now or
may become liable for all or any part of the obligations of the Transaction
Parties under this Insurance Agreement agree to be bound by this Insurance
Agreement and (i) to the extent permitted by law, waive and renounce any and all
redemption and exemption rights and the benefit of all valuation and
appraisement privileges against the indebtedness and obligations evidenced by
any Transaction Document or by any extension or renewal thereof; (ii) waive
presentment and demand for payment, notices of nonpayment and of dishonor,
protest of dishonor and notice of protest; (iii) waive all notices in connection
with the delivery and acceptance hereof and all other notices in connection with
the performance, default or enforcement of any payment hereunder, except as
required by the Transaction Documents; (iv) waive all rights of abatement,
diminution, postponement or deduction, all defenses, other than payment, and all
rights of setoff or recoupment arising out of any breach under any of the
Transaction Documents, by any party thereto or any beneficiary thereof, or out
of any obligation at any time owing to any of the Transaction Parties; (v) agree
that their liabilities hereunder shall be unconditional and without regard to
any setoff, counterclaim or the liability of any other Persons for the payment
hereof; (vi) agree that any consent, waiver or forbearance hereunder with
respect to an event shall operate only for such event and not for any subsequent
event; (vii) consent to any and all extensions of time that may be granted by
the Insurer with respect to any payment hereunder or other provisions hereof and
to the release of any security at any time given for any payment hereunder, or
any part thereof, with or without substitution, and to the release of any Person
or entity liable for any such payment; and (viii) consent to the addition of any
and all other makers, endorsers, guarantors and other obligors for any payment
hereunder, and to the acceptance of any and all other security for any payment
hereunder, and agree that the addition of any such obligors or security shall
not affect the liability of the parties hereto for any payment hereunder.

            (c) Nothing herein shall be construed as prohibiting any party
hereto from pursuing any rights or remedies it may have against any Person in a
separate legal proceeding.

            Section 4.4 Assignments; Reinsurance; Third-Party Rights. (a) This
Insurance Agreement shall be a continuing obligation of the parties hereto and
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. None of the Transaction Parties may
assign its rights under this Insurance Agreement, or delegate any of its duties
hereunder, without the prior written consent of the Insurer. Any assignments
made in violation of this Insurance Agreement shall be null and void.

            (b) The Insurer shall have the right to give participations in its
rights under this Insurance Agreement and to enter into contracts of reinsurance
with respect to the Ambac Policy upon such terms and conditions as the Insurer
may in its discretion determine; provided, however, that no such participation
or reinsurance agreement or arrangement shall relieve the Insurer of any of its
obligations hereunder or under the Ambac Policy, and provided, further, that any
reinsurer or participant will not have any rights against the Transaction
Parties or the Holders and that none of the Transaction Parties or the Holders
shall have any obligation to have

                                       30
<PAGE>

any communication or relationship with any reinsurer or participant in order to
enforce the obligations of the Insurer hereunder and under the Ambac Policy.

            (c) The Insurer shall be entitled to assign or pledge to any bank,
other lender or reinsurer providing liquidity or credit with respect to the
Transaction or the obligations of the Insurer in connection therewith, any
rights of the Insurer under the Transaction Documents or with respect to any
real or personal property or other interests pledged to the Insurer or in which
the Insurer has a security interest, in connection with the Transaction, subject
in each case to the liens granted pursuant to the Transaction Documents;
provided that no such bank or other lender shall thereby obtain any direct right
against Transaction Parties or the Holders, and further, provided; that no such
assignment or pledge shall give any assignee the right to exercise any
discretionary authority that the Transaction Documents provide shall be
exercisable by the Insurer or relieve the Insurer of any of its obligations
hereunder or under the Ambac Policy.

            (d) Except as provided herein with respect to participants and
reinsurers, nothing in this Insurance Agreement shall confer any right, remedy
or claim, express or implied, upon any Person not a party hereto, including any
Holders, other than the rights of the Insurer against the Transaction Parties
and all the terms, covenants, conditions, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties hereto and
their successors and permitted assigns. Neither the Indenture Trustee nor any
Holders shall have any right to payment from any Premiums paid or payable
hereunder or under the Indenture or from any amounts paid by the Issuer or Triad
pursuant to Sections 3.2, 3.3 or 3.4 hereof.

            Section 4.5 Liability of the Insurer. Neither the Insurer nor any of
its officers, directors or employees shall be liable or responsible for: (a) the
use that may be made of the Ambac Policy by the Indenture Trustee or any other
party or for any acts or omissions of the Indenture Trustee or any other party
in connection therewith; or (b) the validity, sufficiency, accuracy or
genuineness of documents delivered to the Insurer in connection with any claim
under the Ambac Policy, or of any signatures thereon, even if such documents or
signatures should in fact prove to be in any or all respects invalid,
insufficient, fraudulent or forged (unless the Insurer shall have actual
knowledge thereof.). In furtherance and not in limitation of the foregoing, the
Insurer may accept documents that appear on their face to be in order, without
responsibility for further investigation.

            Section 4.6 [Reserved].

            Section 4.7 Rights and Remedies. Each party to this Insurance
Agreement has acknowledged and agreed to, and hereby confirms its
acknowledgement and agreement to, the collateral sale and assignment by the
Seller to the Depositor, by the Depositor to the Issuer, and the pledge by the
Issuer to the Indenture Trustee, of all of its right, title and interest in, to
and under the Trust Estate, and the Transaction Documents and all of the
Issuer's rights, remedies, powers and privileges and all claims of the Issuer or
the Depositor, as the case may be, against the Seller, of the Issuer against the
Depositor and of the Issuer against the Depositor or the Seller, under or with
respect to the Transaction Documents (whether arising pursuant to the terms
thereof or otherwise available at law or in equity), including without
limitation (whether or not any of a Default or Event of Default under the
Indenture, an Event of Default hereunder, a Servicer Termination Event, a
Trigger Event or a Spread Cap Event has occurred and is

                                       31
<PAGE>

continuing) (i) the right of the Issuer at any time to enforce the Transaction
Documents against the Servicer, the Depositor or the Seller and the obligations
of the Servicer, the Seller and the Depositor thereunder and (ii) the right at
any time to give or withhold any and all consents, requests, notices,
directions, approvals, demands, extensions or waivers under or with respect to
any Transaction Document or the obligations in respect of the Issuer, the
Servicer, the Depositor or the Seller thereunder, all of which rights, remedies,
powers, privileges and claims may, notwithstanding any provision to the contrary
by any of the Transaction Documents, be exercised and/or enforced by the
Indenture Trustee in lieu of and in the place and stead of the Depositor and the
Issuer to the same extent as the Depositor or the Issuer would otherwise do, and
except to the extent a Transaction Document provides that the Insurer shall not
have such a right upon an Insurer Default that has occurred and is continuing,
neither the Depositor nor the Issuer may exercise any of the foregoing rights
without the prior written consent of the Insurer. Each party hereto further
acknowledges and agrees that, unless an Insurer Default has occurred and is
continuing, the Indenture Trustee will take or refrain from taking any action,
and exercise or refrain from exercising any rights under the Transaction
Documents in its capacity as Indenture Trustee pursuant to the written direction
of the Insurer; provided, however, that the obligations of the Indenture Trustee
to take or refrain from taking, or to exercise or refrain from exercising, any
such action or rights shall not apply to routine administrative tasks required
to be performed by the Indenture Trustee pursuant to the Transaction Documents
and shall be limited to those actions and rights that can be exercised or taken
(or not exercised or taken, as the case may be) in full compliance with the
provisions of the Transaction Documents and with applicable law.

                                       32
<PAGE>

                                    ARTICLE V

                              DEFAULTS AND REMEDIES

            Section 5.1 Defaults. The occurrence of any of the following events
shall constitute an "Event of Default" hereunder:

            (a) Any representation or warranty made by any of the Transaction
Parties hereunder or under the Transaction Documents, or in any certificate
furnished hereunder or under the Transaction Documents, prove to be untrue or
misleading in any material respect; provided, however, that if such Transaction
Party effectively cures any such defect in any representation or warranty under
any Transaction Document or certificate or report furnished under any
Transaction Document, within the time period specified in the related
Transaction Document as the cure period therefor, such defect shall not in and
of itself constitute an Event of Default;

            (b) (i) Any Transaction Party fails to pay or deposit when due any
amount required to be paid or deposited by it hereunder or under any other
Transaction Document and such failure has continued for a period of at least two
(2) Business Days or, if so specified in the applicable Transaction Document,
the applicable grace period set forth therein, or (ii) a legislative body has
enacted any law that declares or a court of competent jurisdiction finds or
rules that this Insurance Agreement or any other Transaction Document is not
valid and binding on the Transaction Parties hereto or thereto;

            (c) The occurrence and continuance of an Event of Default under the
Indenture or Servicer Termination Event under the Sale and Servicing Agreement;

            (d) Any failure on the part of any Transaction Party duly to observe
or perform in any material respect any other of the covenants or agreements on
the part of such Transaction Party contained in this Insurance Agreement or in
any other Transaction Document which continues unremedied beyond any cure period
provided therein, or, in the case of this Insurance Agreement, for a period of
30 days after the earlier of the date on which written notice of such failure,
requiring the same to be remedied, has been given to Triad by the Insurer (with
a copy to the Indenture Trustee) or by the Indenture Trustee (with a copy to the
Insurer), or a Responsible Officer of such Transaction Party has actual
knowledge thereof;

            (e) The entry of a decree or order by a court or agency or
supervisory authority having jurisdiction in the premises for appointment of a
conservator, receiver or liquidator or similar official for any Transaction
Party which is a party to any Transaction Document in any bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings or for the winding up or liquidation of its respective
affairs, and the continuance of any such decree or order unstayed and in effect
for a period of 30 consecutive days; or

            (f) The consent by any Transaction Party to the appointment of a
conservator or receiver or liquidator or similar official in any bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities, or
similar proceedings of or relating to such Transaction

                                       33
<PAGE>

Party or relating to all or substantially all of its respective property; or any
such Transaction Party admits in writing its inability to pay its debts
generally as they become due, files a petition to take advantage of any
applicable bankruptcy, insolvency or reorganization statute, make an assignment
for the benefit of its creditors or voluntarily suspends payment of its
obligations.

            Section 5.2 Remedies; No Remedy Exclusive. (a) Upon the occurrence
of an Event of Default hereunder, the Insurer may take whatever action at law or
in equity as may appear necessary or desirable in its judgment to collect the
amounts, if any, then due under this Insurance Agreement or any other
Transaction Document or to enforce performance and observance of any obligation,
agreement or covenant of the Transaction Parties under this Insurance Agreement
or any other Transaction Document, either in its own capacity or as Controlling
Party.

            (b) Unless otherwise expressly provided, no remedy herein conferred
or reserved is intended to be exclusive of any other available remedy, but each
remedy shall be cumulative and shall be in addition to other remedies given
under this Insurance Agreement or any other Transaction Document, or existing at
law or in equity. No delay or omission to exercise any right or power accruing
under this Insurance Agreement or any other Transaction Document upon the
happening of any event set forth in Section 5.1 shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In
order to entitle the Insurer to exercise any remedy reserved to the Insurer in
this Article, it shall not be necessary to give any notice, other than such
notice as may be required by this Article.

            (c) Each party to this Insurance Agreement hereby agrees that, in
addition to any other rights or remedies existing in its favor, it shall be
entitled to specific performance and/or injunctive relief in order to enforce
any of its rights or any obligation owed to it under the Transaction Documents.

            Section 5.3 Waivers. (a) No failure by the Insurer to exercise, and
no delay by the Insurer in exercising, any right hereunder shall operate as a
waiver thereof. The exercise by the Insurer of any right hereunder shall not
preclude the exercise of any other right, and the remedies provided herein to
the Insurer are declared in every case to be cumulative and not exclusive of any
remedies provided by law or equity.

            (b) The Insurer shall have the right, to be exercised in its
complete discretion, to waive any Event of Default hereunder, by a writing
setting forth the terms, conditions and extent of such waiver signed by the
Insurer and delivered to Triad and the Indenture Trustee. Unless such writing
expressly provides to the contrary, any waiver so granted shall extend only to
the specific event or occurrence which gave rise to the Event of Default so
waived and not to any other similar event or occurrence which occurs subsequent
to the date of such waiver.

                                       34
<PAGE>

                                   ARTICLE VI

                                  MISCELLANEOUS

            Section 6.1 Amendments, Etc. This Insurance Agreement may be
amended, modified, supplemented or terminated only by written instrument or
written instruments signed by the parties hereto. No consent of any reinsurer or
participant contracted with by the Insurer pursuant to Section 4.4(b) hereof
shall be required for any amendment, modification, supplement or termination
hereof. Triad agrees to provide a copy of any amendment to this Insurance
Agreement promptly to the Rating Agencies. No act or course of dealing shall be
deemed to constitute an amendment, modification, supplement or termination
hereof. Unless an Insurer Event of Default has occurred and is continuing, the
other Transaction Documents may be amended, modified or supplemented only with
the prior written consent of the Insurer and any amendment, modification or
supplement without such consent shall be null and void and of no force and
effect.

            Section 6.2 Notices. All demands, notices and other communications
to be given hereunder shall be in writing (except as otherwise specifically
provided herein) and shall be (i) mailed by prepaid registered or certified
mail, return receipt requested, or (ii) personally delivered by messenger or
overnight courier (with confirmation of receipt) and in either case telecopied
to the recipient as follows:

            (a)   To the Insurer:

                  Ambac Assurance Corporation
                  One State Street Plaza
                  New York, New York 10004
                  Attention:  Structured Finance Department -- ABS
                  Telecopy No.: 212-208-3547
                  Confirmation: 212-668-0340
                  with a copy to the attention of: Michael Babick, Vice
                                                     President
                                                   Telecopy No.: 212-363-1459
                                                   Confirmation: 212-208-3407

                  (in each case in which notice or other communication to the
                  Insurer refers to a Servicer Termination Event, an Event of
                  Default hereunder, a Default or Event of Default under the
                  Indenture, a Trigger Event or a Spread Cap Event, a claim on
                  the Ambac Policy or any event with respect to which failure on
                  the part of the Insurer to respond shall be deemed to
                  constitute consent or acceptance, then a copy of such notice
                  or other communication shall also be sent to the attention of
                  the general counsel of each of the Insurer and the Indenture
                  Trustee and shall be marked to indicate "URGENT MATERIAL
                  ENCLOSED.")

                                       35
<PAGE>

            (b)   To Triad:

                  Triad Financial Corporation
                  7711 Center Avenue, Suite 100
                  Huntington Beach, CA 92647
                  Attention: Mike L. Wilhelms, Chief Financial Officer
                  Telephone: 714-373-3800, extension 22284
                  Facsimile: 714-894-8617
                  with a copy to the attention of: Timothy O'Connor, General
                                                     Counsel
                                                   Telecopy No.: 714-934-6062

            (c)   To the Issuer:

                  Triad Automobile Receivables Trust 2005-A
                  in care of:                      Wilmington Trust Company, as
                                                   Owner Trustee
                                                   Rodney Square North
                                                   1100 North Market Street
                                                   Wilmington, DE 19890
                                                   Attention: Corporate Trust
                                                               Administration
                                                   Telephone: (302) 651-1000
                                                   Facsimile: (302) 636-4140
                  with a copy to the attention of: Triad Financial Corporation
                                                   7711 Center Avenue, Suite 100
                                                   Huntington Beach, CA 92647
                                                   Attention: Timothy O'Connor
                                                             General Counsel
                                                   Telecopy No.: 714-934-6062

            (d)   To the Indenture Trustee:

                  JPMorgan Chase Bank, N.A.
                  4 New York Plaza
                  6th Floor
                  New York, NY 10004
                  Attention: Worldwide Securities Services - Triad
                  Triad 2005-A
                  Phone: (212) 623-5600
                  Facsimile: (212) 623-5933

A party may specify an additional or different address or addresses by writing
mailed or delivered to the other parties as aforesaid. All such notices and
other communications shall be effective upon receipt.

            Section 6.3 Severability. In the event that any provision of this
Insurance Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the parties

                                       36
<PAGE>

hereto agree that such holding shall not invalidate or render unenforceable any
other provision hereof. The parties hereto further agree that the holding by any
court of competent jurisdiction that any remedy pursued by any party hereto is
unavailable or unenforceable shall not affect in any way the ability of such
party to pursue any other remedy available to it.

            Section 6.4 Governing Law. This Insurance Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without regard to conflicts of laws provisions.

            Section 6.5 Consent to Jurisdiction. (a) THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND ANY COURT IN THE STATE OF NEW YORK LOCATED
IN THE CITY AND COUNTY OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION, SUIT OR PROCEEDING BROUGHT AGAINST IT AND TO OR IN CONNECTION WITH
ANY OF THE TRANSACTION DOCUMENTS OR THE TRANSACTION OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT RELATING THERETO, AND THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING SHALL BE HEARD OR DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. THE PARTIES AGREE
THAT A FINAL NONAPPEALABLE JUDGMENT IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THE PARTIES HEREBY WAIVE AND AGREE NOT TO ASSERT BY WAY OF MOTION, AS A
DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT
IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT,
ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE
SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THE RELATED DOCUMENTS OR THE
SUBJECT MATTER THEREOF MAY NOT BE LITIGATED IN OR BY SUCH COURTS.

            (b) To the extent permitted by applicable law, the parties shall not
seek and hereby waive the right to any review of the judgment of any such court
by any court of any other nation or jurisdiction which may be called upon to
grant an enforcement of such judgment.

            (c) Service on any party hereto may be made by mailing or delivering
copies of the summons and complaint and other process which may be served in any
suit, action or proceeding to such party at its address listed in Section 6.2
herein. Such address may be changed by the applicable party or parties by
written notice to each of the other parties hereto.

            (d) Nothing contained in this Insurance Agreement shall limit or
affect any party's right to serve process in any other manner permitted by law
or to start legal proceedings relating to any of the Transaction Documents
against any other party or its properties in the courts of any jurisdiction.

                                       37
<PAGE>

            Section 6.6 Consent of the Insurer. In the event that the consent of
the Insurer is required under any of the Transaction Documents, the
determination whether to grant or withhold such consent shall be made by the
Insurer in writing and in its sole discretion except to the extent such consent
of the Insurer pursuant to the terms of the applicable Transaction Document may
not be unreasonably withheld, and without any implied duty towards any other
Person.

            Section 6.7 Counterparts. This Insurance Agreement may be executed
in counterparts by the parties hereto, and all such counterparts shall
constitute one and the same instrument.

            Section 6.8 Headings. The headings of Articles and Sections and the
Table of Contents contained in this Insurance Agreement are provided for
convenience only. They form no part of this Insurance Agreement and shall not
affect its construction or interpretation.

            Section 6.9 Trial by Jury Waived. Each party hereby waives, to the
fullest extent permitted by law, any right to a trial by jury in respect of any
litigation arising directly or indirectly out of, under or in connection with
any of the Transaction Documents or any of the transactions contemplated
thereunder. Each party hereto (a) certifies that no representative, agent or
attorney of any party hereto has represented, expressly or otherwise, that it
would not, in the event of litigation, seek to enforce the foregoing waiver and
(b) acknowledges that it has been induced to enter into the Transaction
Documents to which it is a party by, among other things, this waiver.

            Section 6.10 Limited Liability. No recourse under any Transaction
Document shall be had against, and no personal liability shall attach to, any
officer, employee, director, affiliate or shareholder of the Insurer or any
other party hereto, as such, by the enforcement of any assessment or by any
legal or equitable proceeding, by virtue of any statute or otherwise in respect
of any of the Transaction Documents (including the Class A Notes and the Ambac
Policy), it being expressly agreed and understood that each Transaction Document
is solely a corporate obligation of each party hereto, and that any and all
personal liability, either at common law or in equity, or by statute or
constitution, of every such officer, employee, director, affiliate or
shareholder for breaches of any party hereto of any obligations under any
Transaction Document is hereby expressly waived as a condition of and in
consideration for the execution and delivery of this Insurance Agreement.

            Section 6.11 Entire Agreement: Facsimile Signatures. This Insurance
Agreement, the Fee Letter and the Ambac Policy set forth the entire agreement
between the parties with respect to the subject matter hereof and thereof, and
supersede and replace any agreement or understanding that may have existed
between the parties prior to the date hereof in respect of such subject matter.
Execution and delivery of this Insurance Agreement by facsimile signature shall
constitute execution and delivery of this Insurance Agreement for all purposes
hereof with the same force and effect as execution and delivery of a manually
signed copy hereof.

                                       38
<PAGE>

            Section 6.12 Indenture Trustee. The Indenture Trustee hereby
acknowledges and agrees to perform all its obligations and duties pursuant to
the Transaction Documents to which it is a party thereto.

            Section 6.13 Third-Party Beneficiary. Subject to the provisions of
the Transaction Documents, each of the parties hereto agrees that the Insurer
shall have all rights of an intended third-party beneficiary in respect of each
of the Transaction Documents, including the right to enforce the respective
obligations of the parties thereunder.

            Section 6.14 No Proceedings. Each of the parties hereto agrees that
it will not institute against the Issuer or the Depositor any involuntary
proceeding or otherwise institute any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding or other proceeding under any federal or
state bankruptcy or similar law until the date which is one year and one day or,
if longer, the then applicable preference period plus one day, since the last
day on which any Class A Notes shall have been outstanding and all amounts
payable to the Insurer hereunder shall have been paid in full.

            Section 6.15 Limitation of Owner Trustee Liability. It is expressly
understood and agreed by the parties hereto that (a) this document is executed
and delivered by Wilmington Trust Company, not individually or personally, but
solely as Owner Trustee, in the exercise of the powers and authority conferred
and vested in it, pursuant to the Trust Agreement for Triad Automobile
Receivables Trust 2005-A, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust
Company but is made and intended for the purpose for binding only the Issuer,
(c) nothing herein contained shall be construed as creating any liability on
Wilmington Trust Company, individually or personally, to perform any covenant
either expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any person claiming by, through or
under the parties hereto, and (d) under no circumstances shall Wilmington Trust
Company be personally liable for the payment of any indebtedness or expenses of
the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this
Agreement or any other related documents.

            ANY PERSON WHO KNOWINGLY AND WITH INTENT TO DEFRAUD ANY INSURANCE
COMPANY OR OTHER PERSON FILES AN APPLICATION FOR INSURANCE OR STATEMENT OF CLAIM
CONTAINING ANY MATERIALLY FALSE INFORMATION, OR CONCEALS FOR THE PURPOSE OF
MISLEADING, INFORMATION CONCERNING ANY FACT MATERIAL THERETO, COMMITS A
FRAUDULENT INSURANCE ACT, WHICH IS A CRIME AND SHALL ALSO BE SUBJECT TO A CIVIL
PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS AND THE STATED VALUE OF THE CLAIM
FOR EACH SUCH VIOLATION.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       39
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this Insurance
Agreement, all as of the day and year first above mentioned.

                                         AMBAC ASSURANCE CORPORATION, as Insurer

                                         By: /s/ Michael Babick
                                             ---------------------------------
                                             Name:  Michael Babick
                                             Title: First Vice President

                                         TRIAD AUTOMOBILE RECEIVABLES
                                           TRUST 2005-A,
                                            as Issuer

                                         By: WILMINGTON TRUST COMPANY,
                                               not in its individual capacity,
                                               but solely as Owner Trustee

                                         By: /s/ Joann A. Rozell
                                             ---------------------------------
                                             Name:  Joann A. Rozell
                                             Title: Assistant Vice President

                                         TRIAD FINANCIAL SPECIAL PURPOSE
                                           LLC, as Depositor

                                         By: /s/ Mike L. Wilhelms
                                             ---------------------------------
                                             Name:  Mike L. Wilhelms
                                             Title:

                                         TRIAD FINANCIAL CORPORATION,
                                           as Seller and Servicer

                                         By: /s/ Mike L. Wilhelms
                                             ---------------------------------
                                             Name:  Mike L. Wilhelms
                                             Title:

                                       40
<PAGE>

                                   JPMORGAN CHASE BANK, N.A.
                                     not in its individual capacity, but solely
                                     as Indenture Trustee

                                   By: /s/ Michael A. Smith
                                       ---------------------------------
                                       Name:  Michael A. Smith
                                       Title: Vice President

                                       41Untitled Document

 Exhibit 4.3

 Resolution Number 14 of the General Meeting of the Shareholders of sanofi-aventis held on May 31, 2005 (Free translation. French original prevails.)

 FOURTEENTH RESOLUTION

  Delegation to the Board of Directors of authority to grant options to subscribe for or purchase shares 

      The General Meeting, voting on the quorum and majority conditions for Extraordinary Meetings, having reviewed the Directors’ Report and Statutory Auditors’ Special Report: 

      1. authorizes the Board of Directors, under articles L.225-177 to L.225-185 and L. 225-129-2 of the Commercial Code, to grant, on one or more occasions, in favor of members of the personnel to be chosen by the Board of Directors from among the employees and corporate officers of the company or of companies or groupings related to the company, on the terms specified in article L.225-180 of said Code, options giving entitlement to subscribe for new shares in the company to be issued in the form of an increase in its capital, and options giving entitlement to purchase shares in the company obtained by the company repurchasing its own shares on the terms laid down by the law; 

      2. resolves that options to subscribe for or purchase shares granted by virtue of the present authorization may not give entitlement to a total number of shares exceeding 2.5% of the share capital as of the day the decision is made by the Board of Directors, and that the aggregate par value of capital increases resulting from the exercise of options to subscribe for shares granted under the present delegation will count towards the overall ceiling specified in section 3 of the 9th resolution of the present meeting; 

      3. resolves that the price payable on the exercise of the options to subscribe for or purchase shares will be set in accordance with the law by the Board of Directors on the day the options are granted; such price may not be lower than the average of the first quoted prices of the company’s shares on the Euronext Eurolist during the twenty trading sessions preceding the day on which the options to subscribe for shares are granted. If the company carries out any of the transactions specified in article L.225-181 of the Commercial Code, the Board of Directors will, on the terms stipulated by the regulations then in force, take the necessary measures to protect the interests of the grantees by adjusting the number and price of the shares that may be obtained on exercise of options granted to grantees so as to take account of the impact of the transaction in question; 

      4. duly notes that the present delegation entails the express waiver by the shareholders, in favor of the grantees of options to subscribe for shares, of their preemptive rights relating to the shares that are to be issued as and when said options are exercised. The increase in the share capital resulting from the exercise of the options to subscribe for shares will be definitively completed by mere declaration that the option is exercised accompanied by the subscription form and full payment, which may be made in cash or by set-off of debts of the company; 

      5. consequently, confers full powers on the Board of Directors to implement the present authorization, and in particular to: 

 •  establish a list of grantees of options, showing the number of options granted to each; 

 

	•	   set the terms and conditions of the options, and in particular:
	 	 
	 -      	 the term of validity of the options, it being understood that the options must be exercised within a maximum period of 10 years; 
	 
	 -      	 the exercise date(s) or period(s) of the options, it being understood that the Board of Directors may (a) bring forward the exercise date(s) or period(s) of the options, (b) extend the exercisability of the options, or (c) amend the dates or periods during which shares obtained by exercise of options may not be transferred or converted into bearer shares; 
	 
	 -      	 any clauses prohibiting immediate resale of some or all of the shares provided that the period for which the shares must be retained may not exceed three years from exercise of the option; 
	 
	•	where appropriate, limit, suspend, restrict or prohibit the exercise of options or the transfer or conversion into bearer shares of shares obtained by the exercise of options during certain periods or with effect from certain events; such decision may relate to some or all of the options or shares or to some or all of the grantees;
	 
	•	decide on the date, which may be retrospective, from which the new shares resulting from the exercise of options to subscribe for shares will rank for dividend;

      6. resolves that the Board of Directors, with authority to subdelegate within the law, will have full powers to duly record the completion of capital increases to reflect the amount of shares actually subscribed by the exercise of options to subscribe for shares, amend the bylaws accordingly, and, at its sole discretion and as it sees fit, charge the costs of the capital increases against the share premium arising thereon and withhold from this premium the sums necessary to increase the legal reserve to one-tenth of the new share capital after each capital increase, and accomplish all formalities necessary for the listing of the securities thereby issued, make all declarations with the relevant bodies and generally do all that is necessary; 

      7. resolves that this authorization cancels with effect from this day any unused portion of any previous delegation to the Board of Directors of authority to grant options to subscribe for or purchase shares. It is granted for a period of twenty-six months from this day.

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