Document:

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                                                                    EXHIBIT 10.3

                            PROCEEDS ESCROW AGREEMENT

         Agreement entered on the ___ day of ______________, 2001 by and among
Transition Auto Finance IV, Inc. ("Issuer"), Great Nation Investment Corporation
("Dealer"), and Texas Community Bank, a National Association, as defined by
Section 3(a)(6) of the Securities and Exchange Act of 1934, (the "Escrow
Agent").

         WHEREAS, with the assistance of Dealer, the Issuer proposes to offer
and sell up to $10,000,000 aggregate principal amount of its 9.0% Secured
Redeemable Promissory Notes (the "Notes") to be issued under a Trust Indenture
between the Issuer and Trust Management Inc. (the "Trustee").

         NOW, THEREFORE, the parties hereto hereby agree as follows:

         1. The Escrow Agent agrees to act as escrow agent in connection with
the offering and sale of Notes and, as such, to establish an appropriate account
and to receive the proceeds from the sale of the Notes for deposit therein until
the earlier of the termination of this Agreement or the termination of the
offering and sale of the Notes (the "Termination Date").

         2. Checks or other items for the payment of all or a part of the
purchase price of the Notes (all such items together with all proceeds thereof,
the "Escrowed Property") shall be payable to Escrow Agent, or endorsed by the
Dealer or Issuer to Texas Community Bank and delivered daily to Escrow Agent.
The Escrow Agent will credit the proceeds to an escrow cash account (the "Escrow
Account") to be held by it under the terms of this Agreement subject to Rule
15c2-4 under the Securities Act of 1934. All subscribers' checks or other items
for the payment of the purchase price of Notes shall be transmitted by Dealer to
the Escrow Agent by noon of the next business day upon receipt by Dealer.

         3. The Escrowed Property, together with all interest earned thereon,
shall be held by the Escrow Agent until the earlier of (a) the time that the
Escrow Agent has received proceeds from the sale of the Notes in the aggregate
principal amount of $250,000, or more, or (b) March 1, 2002, at which time the
escrow will terminate.

         4. Upon termination of the escrow, the Escrow Agent shall release the
Escrowed Property, together with all interest earned thereon to be distributed
to either (a) the Issuer, or such other party or parties, as required to carry
out the purpose of the Note offering if the minimum amount of the Notes have
been sold within the required time period described above, or (b) the
subscribers if the minimum amount of Notes have not been sold within such
period.

         5. If at any time to the completion of this escrow said Escrow Agent is
advised by the appropriate securities or state agency that the registration to
sell said notes has been revoked, said Escrow Agent shall thereupon return all
funds and the interest earned thereon to the respective subscribers.

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         6. Escrow Agent shall deposit all funds received in insured accounts
such that each Investor that deposits funds is insured to the maximum amount
allowed under FDIC regulations, irrespective of the aggregate amount of funds
received from all Investors. The Escrow Agent shall invest such collected funds
deposited in the Escrow Account in short term investments to the extent
permitted by the Texas Banking Commission, provided however, that any such funds
held subject to any minimum escrow contingency shall be invested subject to Rule
15c2-4. The Escrow Agent shall in no event be liable for any loss resulting from
any change in interest rates applicable to funds so invested.

         Interest on funds invested pursuant to this Section shall accrue from
the date of investment of such funds until such funds are released from escrow
pursuant to paragraph 4.

         7. The Escrow Agent's and Dealer's obligations and duties in
connections herewith are confined to those specifically enumerated in this
Agreement. The Escrow Agent and Dealer shall not be in any manner liable or
responsible for the sufficiency, correctness, genuineness or validity of any
instruments received by or deposited with them or with reference to the form of
execution thereof, or the identity, authority, or rights of any person
executing, delivering, or depositing same, and neither the Escrow Agent nor the
Dealer shall be liable for any loss that may occur by reason of forgery, false
representation or the exercise of their discretion in any particular manner or
for any other reason, except for their own gross negligence or willful
misconduct.

         8. The Escrow Agent shall receive compensation for its services from
Issuer as set forth in the separate schedule of fees as made a part hereof by
reference.

         9. The Escrow Agent may act pursuant to the written advice of counsel
with respect to any matter relating to this Escrow Agreement and shall not be
liable for any action taken or omitted in accordance with such advice.

         10. The Escrow Agent (and any other successor escrow agent) may at any
time resign as such by delivering all of the Escrowed Property to the successor
escrow agent jointly designated by the other parties hereto in writing, or to
any court of competent jurisdiction, whereupon the Escrow Agent shall be
discharged of and from any and all further obligations arising in connection
with this Escrow Agreement. The resignation of the Escrow Agent will take effect
on the earlier of (a) the appointment of a successor (including a court of
competent jurisdiction), or (b) the day which is thirty (30) days after the date
of delivery of its written notice of resignation to the other parties hereto. If
at that time the Escrow Agent has not received a designation of a successor
escrow agent, the Escrow Agent's sole responsibility after that time shall be to
safekeep the Escrowed Property until receipt of a designation of successor
escrow agent or a written disposition instruction by the Issuer and Dealer or a
final order of a court of competent jurisdiction.

         11. If any controversy arises between the parties hereto or with any
third person, the Escrow Agent shall not be required to determine the same or to
take any action but may await the settlement of any such controversy by final
appropriate legal proceeding, or otherwise as the Escrow Agent may require, or
the Escrow Agent may, in its discretion, institute such appropriate

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interpleader or other proceedings in connection therewith as it may deem proper,
notwithstanding anything in this Agreement to the contrary. In any such event,
the Escrow Agent shall not be liable for interest or damages to the Issuer or
subscribers. In the event Escrow Agent should institute, or be named as a party
in, any legal proceedings to determine the lawful owner of the Escrowed
Property, Escrow Agent shall be entitled to recover from the contending parties
to said legal proceedings, reasonable attorney's fees and expenses which shall
be incurred by Escrow Agent in said proceedings.

         12. This Escrow Agreement shall be binding upon and inure solely to the
benefit of the parties hereto and their respective successors and assigns,
heirs, administrators, and representatives and shall not be enforceable by or
inure to the benefit of any third party except as provided in Section 10 with
respect to a resignation by the Escrow Agent. No party may assign any of its
rights or obligations under this Escrow Agreement without the written consent of
the other parties. This Escrow Agreement shall be construed in accordance with
and governed by the laws of the State of Texas with regard to conflict of law
principals.

         13. This Escrow Agreement may only be modified in writing by all of the
parties hereto, and no waiver hereunder shall be effective unless in writing
signed by the party to be charged.

         IN WITNESS WHEREOF, the parties hereto have executed this agreement as
of the day and year first above written.

                                       DEALER:

                                       GREAT NATION INVESTMENT CORPORATION

                                       By:
                                          --------------------------------------
                                       Date:
                                            ------------------------------------
Attest:
       ---------------------------

                                       ISSUER:

                                       TRANSITION AUTO FINANCE IV, INC.

                                       By:
                                          --------------------------------------
                                       Date:
                                            ------------------------------------
Attest:
       ---------------------------

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<PAGE>

                                       ESCROW AGENT:
                                       TEXAS COMMUNITY BANK, A National
                                       Association

                                       By:
                                          --------------------------------------
                                       Date:
                                            ------------------------------------
Attest:
       ---------------------------

                                       4<PAGE>
                                                                    EXHIBIT 10.5

TRANSITION AUTO FINANCE IV, INC.                                    SUBSCRIPTION
$10,000,000 - 9.0% SECURED REDEEMABLE                                  AGREEMENT
PROMISSORY NOTES DUE             , 2006
                     ------------

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BY COMPLETING AND EXECUTING THIS PAGE, THE INVESTOR HEREBY (i) ACKNOWLEDGES
READING AND UNDERSTANDING THE MATERIAL ON THE REVERSE SIDE, AND (ii) REPRESENTS,
WARRANTS, ACKNOWLEDGES AND AGREES TO ALL PROVISIONS SET FORTH BELOW AND ON THE
REVERSE SIDE.

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Investment Amount $
                   -------------------------

1. INVESTOR TYPE:  (Check One)
(REFER TO THE SIGNATURE REQUIREMENTS IN SUBSCRIPTION INSTRUCTIONS ON REVERSE
SIDE)

[ ]  Individual               [ ]  IRA
[ ]  Joint Tenant with right  [ ]  Custodian, Uniform
     of survivorship               Gift to Minors
[ ]  Trust                    [ ]  Pension or Profit
[ ]  Corporation              [ ]  Keogh Plan
[ ]  General Partnership      [ ]  Other
                                         -----------

2. INVESTOR DATA - (Please Print)

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Name of Investor

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Social Security or Tax ID#

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2nd Investor Name

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2nd Investor Social Security #

RESIDENT ADDRESS OF INVESTOR:

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Street (Please do not use a P.O. Box)

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City & State                                                   Zip Code

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Home Phone                                        Business Phone

3. SPECIAL REGISTRATION DIRECTION - Please complete this section if the Note
should be registered in the name of an IRA, trustee or clearing broker (for the
benefit of the investor's account). An authorized representative of the
custodian, trustee or clearing broker must execute to evidence consent (see
instruction 1 on reverse hereof)

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Name of Custodian, Trustee or Clearing Brokerage Firm

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Address

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City & State                                                   Zip Code

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Tax ID #                                              Business Phone

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Signature of Authorized Representative of Custodian, Trustee or Clearing
Brokerage Firm

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Name and Title of Authorized Representative

                                   FOR USE OF
                        TRANSITION AUTO FINANCE IV, INC.

Amount $                    Acceptance Date:
        ---------                           --------

Investor #                  Investor State:
          --------                         ---------

<PAGE>

4. SPECIAL PAYMENT DIRECTIONS: Complete this section to direct payment checks
and Form 1099s to an address other than the residence address given in 2 above.
(Note: If the investment is made through an IRA, trustee or clearing broker,
payments must go to custodian, trustee or clearing broker unless other
authorization is attached hereto):

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Name

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Address

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City & State                                                            Zip Code

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Account No. (for payment to a designated account)

5. INVESTOR SUITABILITY: (Read Carefully and Initial) My income and net worth
meet both the minimum required suitability standards as stated in the
Prospectus, and (if applicable) the higher suitability standards applying to my
state of residence. (By signing, fiduciaries signing for beneficiaries represent
that the beneficiaries meet the applicable suitability standards.) IRA Investors
must initial, not the IRA Trustee.

    Investor's Initials              2nd Investor's Initials
---                              ---

6. SIGNATURES - signature must be identical to name of investor. Investment
advisors may not sign on behalf of the investor.

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Signature of Investor                                                       Date

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Print Name

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Signature of Second Investor                                                Date

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Print Name

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Home Phone                                        Business Phone

7. REGISTERED REPRESENTATIVE STATEMENT - I, the Registered Representative for
the foregoing investor, hereby represent that:

(1) I have reasonable grounds to believe, on the basis of information obtained
from the investor concerning his age, educational level, knowledge of
investment, investment objectives, other investments, financial situation, needs
and any other information known by me that (a) the investor is or will be in a
financial position appropriate to enable him to realize to a significant extent
the merits and risks described in the Prospectus, (b) the investor has a fair
market net worth sufficient to sustain the risks inherent in this investment,
including loss of investment and lack of liquidity, (c) the investor satisfies
both the minimum required suitability standards stated in the Prospectus and (if
applicable) the higher suitability standards for the investor's state of
residence, and (d) this investment is otherwise suitable for the investor;

(2) I will maintain on file documents indicating that Prospectus has been
delivered to the investor and disclosing the basis upon which the determination
of suitability was reached and have, prior to execution of this Subscription
Agreement, informed the investor of all pertinent facts relating to the
liquidity and marketability of the Notes during the term of the investment; and

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Registered Representative's Signature                                       Date

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Print Name                                                                 Phone

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Broker/Dealer Firm Name

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Address

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City & State                                                            Zip Code

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<PAGE>

                             SUBSCRIPTION AGREEMENT

         The investor(s) signatory hereto ("Subscriber") represents, warrants,
acknowledges and agrees as follows:

         1. Subscriber hereby subscribes for the principal amount of 9.0%
Secured Redeemable Promissory Notes (the "Note") issued by Transition Auto
Finance IV, Inc. ("Issuer"), as specified on the reverse side hereof, encloses
and hereby tenders the amount set forth on the reverse side hereof as full
payment for the Note for which he is subscribing, and hereby agrees, subject to
the Issuer's acceptance of his subscription, to become a Noteholder in an amount
equal to the amount tendered. Subscriber agrees that he may not revoke, cancel,
terminate or withdraw his subscription or his Subscription Agreement without the
prior written consent of the Issuer, and acknowledges that the Issuer may reject
his subscription for any reason whatsoever. The minimum investment is $5,000 (or
$2,000 for individual Retirement Accounts).

         2. Subscriber hereby acknowledges receipt of a copy of the current
Prospectus for Transition Auto Finance IV, Inc. 9.0% Secured Redeemable
Promissory Notes ("Prospectus") and understands that the Note being acquired
will be governed by the terms of the Indenture referenced in such Prospectus and
such other documents as may be referenced therein. Subscriber further
understands and agrees that, following Issuer's acceptance of his subscription,
he shall receive a Note that shall evidence his status as a Noteholder of
Issuer, such Note to be in the form specified in the Indenture. The information
set forth on the signature page hereof is true and accurate and Subscriber has
proper authority to execute this Subscription Agreement and make this
Investment.

         3. Subscriber hereby represents that this purchase is made for the
Subscriber's own account and not with a view toward distribution. Subscriber
understands that it is not anticipated that an active market will ever develop
for the Note, and that accordingly it may be impossible for Subscriber to
liquidate his investment in the Note, even in the event of an emergency. Any
transfer of the Note must comply with the requirements of the Prospectus, the
Note and with any additional requirements imposed by laws or by any governmental
authorities.

         4. Subscriber hereby acknowledges that the Escrow Agent's sole role in
the offering described in the Prospectus is that of escrow agent, and that the
Escrow Agent has not reviewed the Prospectus and makes no representations
whatsoever as to the nature of such offering or the compliance of such offering
with any applicable state or federal laws, rules or regulations. Subscriber also
understands that the Issuer (and not the Escrow Agent) will make all
computations regarding the amount of interest (if any) that will be paid to such
Subscriber with respect to his subscription payment.

         5. TAX REPRESENTATIONS: Under penalties of perjury, Subscriber hereby
certifies that (i) the number shown on this form and on the accompanying IRS
Work W-9 is Subscriber's correct taxpayer identification number, and (ii) that
Subscriber is not subject to backup withholding because (A) Subscriber has not
been notified that Subscriber is subject to backup withholding as a result of a
failure to report all interest or dividends or (B) the Internal Revenue Service
has notified Subscriber that Subscriber is no longer subject to backup

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<PAGE>

withholding. Under penalties of perjury, unless express written disclosure to
the contrary is delivered to the Issuer together with this form, Subscriber
certifies that Subscriber is not a non-resident alien individual, a foreign
partnership, a foreign corporation, or a foreign estate or trust, which would be
a foreign person within the meaning of Section 1441, 1146 and 7701(a) of the
Internal Revenue Code of 1986, as amended, and that Subscriber will notify the
Issuer before a change in Subscriber's foreign status.

                            SUBSCRIPTION INSTRUCTIONS

         1. Complete all applicable items and sign and date this Subscription
Agreement in the places indicated. Subscribers should use full names (not
initials). If you have previously subscribed for a Note in this offering and
wish to subscribe for an additional Note, please complete the entire
Subscription for the new Note. NO SUBSCRIPTION AGREEMENT WILL BE PROCESSED
UNLESS FULLY COMPLETED AND ACCOMPANIED BY THE APPROPRIATE PAYMENT. Parts 3 and 4
need not be completed unless the investor wishes to provide special payment
delivery instructions (Part 4) or to register his Note in the name of an IRA,
trustee or clearing brokerage firm. A separate IRS Form W-9 must be completed,
executed and submitted by the custodian, trustee or clearing brokerage firm.

         2. Make your subscription check payable to "Great Nation Investment
Corporation" for the amount entered under "Amount Enclosed" in the Subscription
Agreement. Mail or deliver your signed Subscription Agreement and your check to
your Registered Representative.

         3. Registered Representatives: Please forward signed Subscription
Agreements and checks to Great Nation Investment Corporation, 5408 A Bell
Street, Amarillo, Texas 79109, Attention: Mr. Pat Treat.

The following signature and other documentation requirements have been
established for the following forms of ownership of the Notes:

JOINT TENANTS AND TENANTS IN COMMON: The signatures of all joint tenants and
tenants in common investors are required unless a separate document, signed by
all parties and designating one a the agent of the other(s) for purposes of
signing the Subscription Agreement, accompanies the Subscription Agreement.

CORPORATION: The signature(s) of an officer(s) authorized to sign on behalf of
the Corporation is (are) required.

PARTNERSHIP: Specify whether the Subscriber is a general or limited partnership.
If it is a general partnership, the signatures of all partners are required. If
it is a limited partnership, the signatures of all general partners are
required.

TRUST: The Subscription Agreement must be signed by the trustee.

UNIFORM GIFTS TO MINORS ACT: The required signature is that of the custodian,
not of the parent (unless the parent has been designated as the custodian). Only
one child is permitted

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<PAGE>

in each investment under the Uniform Gifts to Minors Act.
Different requirements may apply in your state. Please consult your attorney for
information regarding these requirements.

If you have any questions regarding these requirements, please call TRANSITION
AUTO FINANCE IV, INC., at 214-360-9966.

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