Document:

Exhibit 4.1

                         VELOCITY ASSET MANAGEMENT, INC.

                           CERTIFICATE OF DESIGNATIONS

     VELOCITY ASSET MANAGEMENT, INC., a Delaware corporation (the
"Corporation"), does hereby certify that:

     FIRST: That pursuant the Certificate of Amendment of the Certificate of
Incorporation duly filed on _____________ (the "Certificate"), Article FOURTH of
the Certificate states the Corporation is authorized to issue up to 10,000,000
shares of preferred stock in one or more series as may be determined from time
to time by the Board of Directors, each of such series to be distinctly
designated.

     SECOND: That pursuant to the authority so vested in the Board of Directors
by the Certificate, the Board of Directors by Unanimous Consent of Directors
effective as of ______________, approved and adopted the following resolutions:

          RESOLVED, that the number of shares of preferred stock, designated as
     Series A Stock, shall be 1,250,000 ("Series A Stock"), all of which the
     Corporation may issue;

          RESOLVED, that the rights and preferences of the Series A Stock set
     forth in Exhibit A attached hereto are hereby approved and such Exhibit A
     shall be filed with the Secretary of State of the State of Delaware.

     THIRD: That the said resolutions of the Board of Directors, and
authorization thereby of issuance of shares of the Series A Stock and the
determination of the rights and preferences of such preferred stock were duly
made by the Board of Directors pursuant to authority as aforesaid and in
accordance with Section 151 of the General Corporation Law of the State of
Delaware.

     WITNESS WHEREOF, the Corporation has made under its corporate seal and the
hands of its authorized officers, the foregoing certificate, and the said
President and Secretary have hereunto set their hands and caused the corporate
seal of the said corporation to be hereunto affixed this ___ day of __________,
2006.

                                        VELOCITY ASSET MANAGEMENT, INC.
                                        a Delaware Corporation

                                        -------------------------------------
                                        John C. Kleinert
                                        President and Chief Executive Officer

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ATTEST:

---------------------------
James J. Mastriani
Secretary
SEAL

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                                    Exhibit A
                                    ---------

     The following is a statement of the voting powers and the designations,
preferences, and other special rights, and the qualifications, limitations, or
restrictions, in respect of the Corporation's Series A Convertible Preferred
Stock, $0.001 par value per share ("Series A Stock").

A.   Terms of the Series A Stock.

     1. Designation and Number. A series of preferred stock, designated the
"Series A Stock", is hereby established. The number of authorized shares of
Series A Stock shall be 1,250,000.

     2. Maturity. The Series A Stock has no stated maturity and will not be
subject to any sinking fund or mandatory redemption.

     3. Rank. The Series A Stock will, with respect to dividend rights and
rights upon liquidation, dissolution or winding up of the Corporation, rank (a)
prior or senior to the Common Stock issued by the Corporation; (b) prior or
senior to all classes or series of preferred stock issued by the Corporation,
the terms of which specifically provide that such shares rank junior to the
Series A Stock with respect to dividend rights or rights upon liquidation,
dissolution or winding up of the Corporation, (c) on a parity with all classes
or series of shares of preferred stock issued by the Corporation, the terms of
which specifically provide that such shares rank on a parity with the Series A
Stock with respect to dividend rights or rights upon liquidation, dissolution or
winding up of the Corporation (the "Parity Shares") and (d) junior to all
existing and future indebtedness of the Corporation.

     4. Dividends.

          (a) Holders of Series A Stock shall be entitled to receive, when and
as authorized by the Board of Directors of the Corporation, or a duly authorized
committee thereof, and declared by the Corporation out of funds of the
Corporation legally available for payment, preferential cumulative cash
dividends at the rate of 10% per annum of the Liquidation Preference (as defined
below) per share (equivalent to a fixed annual amount of $1.00 per share). Such
dividends shall be cumulative from the date of original issue and shall be
payable in arrears on the last day of each month (or, if not a Business Day (as
defined below), the next succeeding Business Day, each a "Dividend Payment
Date") for the period ending on such Dividend Payment Date, commencing on the
date of issue. "Business Day" shall mean any day other than a Saturday, Sunday
or other day on which commercial banks in the City of New York are authorized or
required to close. The first dividend will be paid on June 30, 2006 with respect
to the period beginning on the date of issue and ending on June 30, 2006. Any
dividend payable on the Series A Stock for any partial dividend period will be
computed on the basis of twelve 30-day months and a 360-day year. Dividends will
be payable in arrears to holders of record as they appear on the share records
of the Corporation at the close of business on the applicable record date, which
shall be the first day of the calendar month in which the Dividend Payment Date

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occurs or such other date designated by the Board of Directors of the
Corporation for the payment of dividends that is not more than 30 nor less than
10 days prior to such Dividend Payment Date (each, a "Dividend Record Date").

          (b) No dividends on Series A Stock shall be authorized by the Board of
Directors of the Corporation or declared or paid or set apart for payment by the
Corporation at such time as the terms and provisions of any agreement of the
Corporation, including any agreement relating to its indebtedness, prohibits
such declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach
thereof or a default thereunder, or if such declaration or payment shall be
restricted or prohibited by law.

          (c) Notwithstanding the foregoing, dividends on the Series A Stock
will accrue whether or not the Corporation has earnings, whether or not there
are funds legally available for the payment of such dividends, whether or not
such dividends are declared and whether or not such dividends are prohibited by
agreement. Accrued but unpaid dividends on the Series A Stock will accumulate
and earn additional dividends at 10%, compounded monthly. Except as set forth in
the next sentence, no dividends will be declared or paid or set apart for
payment on any other class or series of preferred sock ranking, as to dividends,
on a parity with or junior to the Series A Stock (other than a dividend payable
in capital stock of the Corporation ranking junior to the Series A Convertible
Stock as to dividends and upon liquidation) for any period unless full
cumulative dividends have been or contemporaneously are declared and paid or
declared and a sum sufficient for the payment thereof is set apart for such
payment on the Series A Stock for all past dividend periods and the then current
dividend period. When dividends are not paid in full (or a sum sufficient for
such full payment is not so set apart) upon the Series A Stock and the shares of
any other class or series of preferred stock ranking on a parity as to dividends
with the Series A stock, all dividends declared upon the Series A Stock and any
other class or series of preferred stock ranking on a parity as to dividends
with the Series A Stock shall be declared pro rata so that the amount of
dividends declared per share of Series A Stock and such other class or series of
preferred stock, shall in all cases bear to each other the same ratio that
accrued dividends per share on the Series A Stock and such other class or series
of preferred stock (which shall not include any accrual in respect of unpaid
dividends for prior dividend periods if such preferred stock does not have a
cumulative dividend) bear to each other.

          (d) Except as provided in the immediately preceding paragraph, unless
full cumulative dividends on the Series A Stock have been or contemporaneously
are declared and paid or declared and a sum sufficient for the payment thereof
is set apart for payment for all past dividend periods and the then current
dividend period, no dividends (other than a dividend payable in capital stock of
the Corporation ranking junior to the Series A Stock as to dividends and upon
liquidation) shall be declared or paid or set aside for payment nor shall any
other distribution be declared or made upon the Common Stock, or any other class
or series of capital stock of the Corporation ranking junior to or on a parity
with the Series A Stock as to dividends or upon liquidation, nor shall the
Common Stock, or any other class or series of capital stock of the Corporation
ranking junior to or on a parity with the Series A Stock as to dividends or upon
liquidation be redeemed, purchased or otherwise acquired for any consideration
(or any moneys be paid to or made available for a sinking fund for the
redemption of any such shares) by the Corporation (except by conversion into or
exchange for any other class or series of capital stock of the Corporation

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ranking junior to the Series A Stock as to dividends). Holders of Series A Stock
shall not be entitled to any dividend, whether payable in cash, property or
stock, in excess of full cumulative dividends on the Series A Stock as provided
above. Any dividend payment made on the Series A Stock shall first be credited
against the earliest accrued but unpaid dividend due with respect to such shares
which remains payable.

     5. Liquidation Preference.

          (a) Upon any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, the holders of the Series A Stock
are entitled to be paid out of the assets of the Corporation legally available
for distribution to its shareholders a liquidation preference of $10.00 per
share (the "Liquidation Preference") in cash or property at its fair market
value as determined by the Board of Directors of the Corporation, plus an amount
equal to any accrued and unpaid dividends to the date of payment, but without
interest, before any distribution of assets is made to holders of the
Corporation's Common Stock or any other class or series of capital stock of the
Corporation that ranks junior to the Series A Stock as to liquidation rights.
The Corporation will promptly provide to the holders of the Series A Stock
written notice of any event triggering the right to receive such Liquidation
Preference. After payment of the full amount of the Liquidation Preference, plus
any accrued and unpaid dividends to which they are entitled, the holders of the
Series A Stock will have no right or claim to any of the remaining assets of the
Corporation. The consolidation or merger of the Corporation with or into any
other corporation, trust or entity or of any other corporation, trust or entity
with or into the Corporation, the sale, lease or conveyance of all or
substantially all of the property or business of the Corporation or a statutory
share exchange, shall not be deemed to constitute a liquidation, dissolution or
winding up of the Corporation, unless a liquidation, dissolution or winding up
of the Corporation is effected in connection with, or as a step in a series of
transactions by which, a consolidation or merger of the Corporation is effected.
In determining whether a distribution (other than upon voluntary or involuntary
liquidation) by dividend, redemption or other acquisition of shares of capital
stock of the Corporation or otherwise is permitted under Delaware law, no effect
shall be given to amounts that would be needed, if the Corporation were to be
dissolved at the time of the distribution, to satisfy the preferential rights
upon distribution of holders of shares of capital stock of the Corporation whose
preferential rights upon distribution are superior to those receiving the
distribution.

          (b) If upon any liquidation, dissolution or winding up of the
Corporation, the assets of the Corporation, or proceeds thereof, distributable
among the holders of Series A Stock shall be insufficient to pay in full the
above described preferential amount and liquidating payments on any other class
or series of Parity Shares, then such assets, or the proceeds thereof, shall be
distributed among the holders of Series A Stock and any such other Parity Shares
ratably in the same proportion as the respective amounts that would be payable
on such Series A Stock and any such other Parity Shares if all amounts payable
thereon were paid in full.

          (c) Upon any liquidation, dissolution or winding up of the
Corporation, after payment shall have been made in full to the holders of Series
A Stock and any Parity Shares, the holders of Common Stock shall be entitled to
receive any and all assets remaining to be paid or distributed, and the holders
of the Series A Stock and any Parity Shares shall not be entitled to share
therein.

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     6. Redemption.

          (a) The Corporation may, at its option, upon not less than 30 nor more
than 60 days' written notice, redeem the Series A Stock, in whole or in part, at
any time or from time to time, for cash at a redemption price equal to (i) 108%
of the Liquidation Preference per share on or after ______, 2009, (ii) 104% of
the Liquidation Preference per share on or after ________, 2011 and (iii) the
Liquidation Preference per share on or after ______, 2011, plus, in each case,
all accrued and unpaid dividends thereon to the date fixed for redemption (the
"Redemption Date"), without interest. No Series A Stock may be redeemed except
with assets legally available for the payment of the redemption price. Holders
of Series A Stock to be redeemed shall surrender such Series A Stock at the
place designated in such notice and shall be entitled to the redemption price
and any accrued and unpaid dividends payable upon such redemption following such
surrender. If notice of redemption of any of the Series A Stock has been given
and if the funds necessary for such redemption have been set aside, separate and
apart from other funds, by the Corporation in trust for the pro rata benefit of
the holders of any Series A Stock so called for redemption, then from and after
the Redemption Date dividends will cease to accrue on such Series A Stock, such
Series A Stock shall no longer be deemed outstanding and all rights of the
holders of such shares will terminate, except the right to receive the
redemption price. If less than all of the outstanding Series A Stock is to be
redeemed, the Series A Stock to be redeemed shall be selected pro rata (as
nearly as may be practicable without creating fractional shares) or by any other
equitable method determined by the Corporation.

          (b) Unless full cumulative dividends on all Series A Stock shall have
been or contemporaneously are declared and paid or declared and a sum sufficient
for the payment thereof set apart for payment for all past dividend periods and
the then current dividend period, no Series A Stock shall be redeemed unless all
outstanding Series A Stock is simultaneously redeemed and the Corporation shall
not purchase or otherwise acquire, directly or indirectly, any Series A Stock
(except by exchange for any other class or series of capital stock of the
Corporation ranking junior to the Series A Stock as to dividends and upon
liquidation); provided, however, that the foregoing shall not prevent the
purchase or acquisition of Series A Stock pursuant to a purchase or exchange
offer made on the same terms to holders of all outstanding Series A Stock. So
long as no dividends are in arrears, the Corporation shall be entitled at any
time and from time to time to repurchase any Series A Stock in open-market
transactions duly authorized by the Board of Directors of the Corporation and
effected in compliance with applicable laws.

          (c) Notice of redemption of the Series A Stock shall be given by
publication in a newspaper of general circulation in the City of New York, such
publication to be made once a week for two successive weeks commencing not less
than 30 nor more than 60 days prior to the Redemption Date. A similar notice
shall be mailed by the Corporation by first class mail, postage prepaid, not
less than 30 nor more than 60 days prior to the Redemption Date, addressed to
each holder of record of the Series A Stock to be redeemed at such holder's
address as the same appears on the share records of the Corporation. No failure
to give such notice or any defect therein or in the mailing thereof shall affect
the validity of the proceedings for the redemption of any Series A Stock except
as to the holder to whom notice was defective or not given. Each notice shall
state: (i) the Redemption Date; (ii) the redemption price; (iii) the number of

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shares of Series A Stock to be redeemed; and (iv) the place or places where the
Series A Stock is to be surrendered for payment of the redemption price.

          (d) Immediately prior to any redemption of Series A Stock, the
Corporation shall pay, in cash, any accumulated and unpaid dividends through the
Redemption Date, unless a Redemption Date falls after a Dividend Record Date and
prior to the corresponding Dividend Payment Date, in which case each holder of
Series A Stock at the close of business on such Dividend Record Date shall be
entitled to the dividend payable on such shares on the corresponding Dividend
Payment Date notwithstanding the redemption of such shares before such Dividend
Payment Date.

          (e) The Series A Stock has no stated maturity and will not be subject
to any sinking fund or mandatory redemption provisions.

          (f) Subject to applicable law and the limitation on purchases when
dividends on the Series A Stock are in arrears, the Corporation may, at any time
and from time to time, purchase any Series A Stock in the open market, by tender
or by private agreement.

          (g) All Series A Stock redeemed, purchased or otherwise acquired by
the Corporation in any manner whatsoever shall be retired and reclassified as
authorized but unissued preferred stock, without designation as to class or
series, and may thereafter be reissued as any class or series of preferred stock
in accordance with the applicable provisions of this Certificate of
Designations.

     7. Voting Rights.

          (a) Holders of the Series A Stock will not have any voting rights,
except as set forth below.

          (b) Whenever dividends on any Series A Stock shall be in arrears for
one day more than two consecutive fiscal quarters or three fiscal quarters,
whether or not consecutive, in any twelve month period (a "Preferred Dividend
Default"), the number of directors then constituting the Board of Directors of
the Corporation shall increase by two (if not already increased by reason of a
similar arrearage with respect to any Parity Preferred (as hereinafter
defined)). The holders of such Series A Stock (voting separately as a class with
all other classes or series of preferred stock ranking on a parity with the
Series A Stock as to dividends or upon liquidation and upon which like voting
rights have been conferred and are exercisable ("Parity Preferred")) will be
entitled to vote separately as a class, in order to fill the vacancies thereby
created, for the election of a total of two additional directors of the
Corporation (the "Preferred Stock Directors") at a special meeting called by the
holders of record of at least 20% of the Series A Stock or the holders of record
of at least 20% of any series of Parity Preferred so in arrears (unless such
request is received less than 90 days before the date fixed for the next annual
or special meeting of the shareholders) or at the next annual meeting of
shareholders, and at each subsequent annual meeting at which a Preferred Stock
Director is to be elected until up to twelve months after all dividends
accumulated on such Series A Stock and Parity Preferred for the past dividend
periods and the dividend for the then current dividend period shall have been
fully paid or declared and a sum sufficient for the payment thereof set aside
for payment. At least one of the Preferred Stock Directors shall meet

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"independence" standards mandated by the American Stock Exchange (the "AMEX"),
or such other exchange or inter-dealer market upon which the Series A Stock is
traded. In the event the directors of the Corporation are divided into classes,
each such vacancy shall be apportioned among the classes of directors to prevent
stacking in any one class and to ensure that the number of directors in each of
the classes of directors are as equal as possible. Within twelve months after
all accumulated dividends and the dividend for the then current dividend period
on the Series A Stock shall have been paid in full or declared and set aside for
payment in full, the holders thereof shall be divested of the foregoing voting
rights (subject to revesting in the event of each and every Preferred Dividend
Default) and, if all accumulated dividends and the dividend for the then current
dividend period have been paid in full or set aside for payment in full on the
Series A Stock and all series of Parity Preferred upon which like voting rights
have been conferred and are exercisable, the term of office of each Preferred
Stock Director so elected shall terminate within twelve months thereafter and
the number of directors then constituting the Board of Directors of the
Corporation shall decrease accordingly. Any Preferred Stock Director may be
removed at any time with or without cause by, and shall not be removed otherwise
than by the vote of, the holders of record of a majority of the outstanding
Series A Stock when they have the voting rights described above (voting
separately as a class with all series of Parity Preferred upon which like voting
rights have been conferred and are exercisable). So long as a Preferred Dividend
Default shall continue, any vacancy in the office of a Preferred Stock Director
may be filled by written consent of the Preferred Stock Director remaining in
office, or if none remains in office, by a vote of the holders of record of a
majority of the outstanding shares of Series A Stock when they have the voting
rights described above (voting separately as a class with all series of Parity
Preferred upon which like voting rights have been conferred and are
exercisable). The Preferred Stock Directors shall each be entitled to one vote
per director on any matter.

          (c) So long as any shares of Series A Stock remain outstanding, the
Corporation will not, without the affirmative vote or consent of the holders of
Series A Stock entitled to cast at least two-thirds of the votes entitled to be
cast by the holders of the Series A Stock, given in person or by proxy, either
in writing or at a meeting (voting separately as a class):

               (i) amend, alter or repeal the provisions of the Corporation's
Certificate of Incorporation or Certificate of Designations, whether by merger,
consolidation or otherwise (an "Event"), so as to materially and adversely
affect any right, preference, privilege or voting power of the Series A Stock or
the holders thereof; or

               (ii) authorize, create or issue, or increase the authorized or
issued amount of, any class or series of capital stock or rights to subscribe to
or acquire any class or series of capital stock or any class or series of
capital stock convertible into any class or series of capital stock, in each
case ranking senior to the Series A Stock with respect to payment of dividends
or the distribution of assets upon liquidation, dissolution or winding up, or
reclassify any shares of capital stock into any such shares;

provided, however, that with respect to the occurrence of any Event set forth
above, so long as the Series A Stock (or any equivalent class or series of stock
or shares issued by the surviving corporation, trust or other entity in any
merger or consolidation to which the Corporation became a party) remains

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outstanding with the terms thereof materially unchanged, the occurrence of any
such Event shall not be deemed to materially and adversely affect such rights,
preferences, privileges or voting power of holders of the Series A Stock; and
provided, further, that (i) any increase in the amount of the authorized
preferred stock or the creation or issuance of any other class or series of
preferred stock, (ii) any increase in the amount of the authorized shares of
such series, in each case ranking on a parity with or junior to the Series A
Stock with respect to payment of dividends or the distribution of assets upon
liquidation, dissolution or winding up or (iii) any merger or consolidation in
which the Corporation is not the surviving entity if, as a result of the merger
or consolidation, the holders of Series A Stock receive cash in the amount of
the Liquidation Preference in exchange for each of their shares of Series A
Stock, shall not be deemed to materially and adversely affect such rights,
preferences, privileges or voting powers.

          (d) So long as any shares of Series A Stock remain outstanding, the
Corporation will not, without the affirmative vote or consent of the holders of
Series A Stock entitled to cast a majority of the votes entitled to be cast by
the holders of the Series A Stock, given in person or by proxy, either in
writing or at a meeting (voting separately as a class) authorize, create or
issue, or increase the authorized or issued amount of, any class or series of
Parity Preferred or rights to subscribe to or acquire any class or series of
Parity Preferred or any class or series of capital stock convertible into any
class or series of Parity Preferred, or reclassify any shares of capital stock
into any such shares.

          (e) With respect to the exercise of the above described voting rights,
each share of Series A Stock shall have one vote per share, except that when any
other class or series of capital stock shall have the right to vote with the
Series A Stock as a single class, then the Series A Stock and such other class
or series of capital stock shall each have one vote per $10.00 of liquidation
preference.

          (f) The foregoing voting provisions will not apply if, at or prior to
the time when the act with respect to which such vote would otherwise be
required shall be effected, all outstanding Series A Stock shall have been
redeemed or called for redemption upon proper notice and sufficient funds shall
have been deposited in trust to effect such redemption.

          (g) Except as expressly stated herein, the Series A Stock shall not
have any relative, participating, optional or other special voting rights and
powers, and the consent of the holders thereof shall not be required for the
taking of any corporate action, including but not limited to, any merger or
consolidation involving the Corporation or a sale of all or substantially all of
the assets of the Corporation, irrespective of the effect that such merger,
consolidation or sale may have upon the rights, preferences or voting power of
the holders of the Series A Stock.

     8. Conversion.

          (a) Subject to and upon compliance with the provisions of this
subsection 8, a holder of Series A Stock shall have the right, at the holder's
option, at any time to convert such shares, in whole or in part, into the number
of authorized but previously unissued shares of Common Stock obtained by
dividing the aggregate Liquidation Preference of such shares by $_______, the
conversion price per share of Common Stock at which the Series A Stock is
convertible into shares of Common Stock, as such price may be adjusted pursuant
to paragraph (d) of this subsection 8 (the "Conversion Price") (as in effect at

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the time and on the date provided for in the last paragraph of paragraph (b) of
this subsection 8) by delivering such shares to be converted, such delivery to
be made in the manner provided in paragraph (b) of this subsection 8; provided,
however, that the right to convert shares called for redemption pursuant to
subsection 6 of this Section A shall terminate at the close of business on the
Business Day prior to the Redemption Date, unless the Corporation shall default
in making payment of any amounts payable upon such redemption under subsection 6
of this Section A.

          (b) The conversion rights of the holders of the Series A Stock are
subject to cancellation by the Corporation on or after _______, 2009 if, (i) for
at least 20 Trading Days (as defined below) within any period of 30 consecutive
Trading Days, including the last Trading Day of the period, the Current Market
Price (as defined below) of the Common Stock of the Corporation exceeds the
Conversion Price by more than 35% and (ii) the Common Stock is then traded on
the New York Stock Exchange, the Nasdaq National Market or the AMEX (a
"Conversion Cancellation Event"). Following the occurrence of a Conversion
Cancellation Event, the Corporation may, at its option, provide notice to the
respective holders of record of the Series A Stock at their respective addresses
as they appear on the share transfer records of the Corporation, via first class
mail, specifying a date upon which each such holder's conversion rights will be
deemed cancelled (a "Conversion Cancellation Notice"). The cancellation date
specified in the Conversion Cancellation Notice will be more than 30 days, but
less than 60 days, after the Conversion Cancellation Notice is mailed. The right
to convert Series A Stock for which any Conversion Cancellation Notice has been
issued will terminate at the close of business on the Business Day prior to the
cancellation date specified in the Conversion Cancellation Notice. "Trading Day"
shall mean any day on which the securities in question are traded on the AMEX,
or if such securities are not listed or admitted for trading on the AMEX, on the
principal national securities exchange on which such securities are listed or
admitted, or if not listed or admitted for trading on any national securities
exchange, on the Nasdaq National Market, or if such securities are not quoted on
the Nasdaq National Market, in the applicable securities market in which the
securities are traded. "Current Market Price" of the Common Stock of the
Corporation for any day shall mean the last reported sales price on such day or,
if no sale takes place on such day, the average of the reported closing bid and
asked prices on such day, in either case as reported on the AMEX or, if such
security is not listed or admitted for trading on the AMEX, on the principal
national securities exchange on which such security is listed or admitted for
trading or, if not listed or admitted for trading on any national securities
exchange, on the Nasdaq National Market or, if such security is not quoted on
the Nasdaq National Market, the average of the closing bid and asked prices on
such day in the over-the-counter market as reported by Nasdaq or, if bid and
asked prices for such security on such day shall not have been reported through
Nasdaq, the average of the bid and asked prices on such day as furnished by any
AMEX member firm regularly making a market in such security and selected for
such purpose by the Board of Directors of the Corporation or, if such security
is not so listed or quoted, as determined in good faith at the sole discretion
of the Board of Directors of the Corporation, which determination shall be
final, conclusive and binding.

          (c) In order to exercise the conversion right, the holder of the
Series A Stock to be converted shall deliver the certificate evidencing such
shares, duly endorsed or assigned to the Corporation or in blank, to the office
of the transfer agent of the Corporation, accompanied by written notice to the
Corporation that the holder thereof elects to convert such shares of Series A
Stock. Unless the shares issuable on conversion are to be issued in the same
name as the name in which such shares of Series A Stock are registered, each

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share surrendered for conversion shall be accompanied by instruments of
transfer, in form satisfactory to the Corporation, duly executed by the holder
or such holder's duly authorized agent and an amount sufficient to pay any
transfer or similar tax (or evidence reasonably satisfactory to the Corporation
demonstrating that such taxes have been paid).

          (d) Holders of Series A Stock exercising their conversion rights will
not be entitled to, nor will the Conversion Price be adjusted for, any
accumulated and unpaid dividends, whether or not in arrears, or for dividends on
the Common Stock issued upon conversion. Holders of Series A Stock at the close
of business on a Dividend Record Date will be entitled to receive the dividend
payable on such shares on the corresponding Dividend Payment Date
notwithstanding the conversion of such shares following such Dividend Record
Date and prior to such Dividend Payment Date. However, Series A Stock
surrendered for conversion during the period between the close of business on
any Dividend Record Date and ending with the opening of business on the
corresponding Dividend Payment Date (except shares converted after the issuance
of a notice of redemption with respect to a Redemption Date during such period
or coinciding with such Dividend Payment Date, which will be entitled to such
dividend on the Dividend Payment Date) must be accompanied by payment of an
amount equal to the dividend payable on such shares on such Dividend Payment
Date. A holder of Series A Stock on a Dividend Record Date who (or whose
transferee) tenders any such shares for conversion into Common Stock on such
Dividend Payment Date will receive the dividend payable by the Corporation on
such Series A Stock on such date, and the converting holder need not include
payment of the amount of such dividend upon surrender of Series A Stock for
conversion.

          (e) As promptly as practicable after the surrender of certificates for
Series A Stock as aforesaid, the Corporation shall issue and shall deliver at
such office to such holder, or on his written order, a certificate or
certificates for the number of full shares of Common Stock issuable upon the
conversion of such shares in accordance with the provisions of this subsection
8, and any fractional interest in respect of a share of Common Stock arising
upon such conversion shall be settled as provided in paragraph (f) of this
subsection 8. Each conversion shall be deemed to have been effected immediately
prior to the close of business on the date on which the certificates for Series
A Stock shall have been surrendered and such notice (and if applicable, payment
of an amount equal to the dividend payable on such shares as described above)
received by the Corporation as aforesaid, and the person or persons in whose
name or names any certificate or certificates for Common Stock shall be issuable
upon such conversion shall be deemed to have become the holder or holders of
record of the shares represented thereby at such time on such date, and such
conversion shall be at the Conversion Price in effect at such time and on such
date, unless the share transfer books of the Corporation shall be closed on that
date, in which event such person or persons shall be deemed to have become such
holder or holders of record at the opening of business on the next succeeding
day on which such share transfer books are open, but such conversion shall be at
the Conversion Price in effect on the date on which such certificates for Series
A Stock have been surrendered and such notice received by the Corporation.

          (f) No fractional shares or scrip representing fractions of Common
Stock shall be issued upon conversion of the Series A Stock. Instead of any

                                       9
<PAGE>

fractional interest in a share of Common Stock that would otherwise be
deliverable upon the conversion of a share of Series A Stock, the Corporation
shall pay to the holder of such share an amount in cash based upon the Current
Market Price of Common Stock on the Trading Day immediately preceding the date
of conversion. If more than one share of Series A Stock shall be surrendered for
conversion at one time by the same holder, the number of full shares of Common
Stock issuable upon conversion thereof shall be computed on the basis of the
aggregate number of shares of Series A Stock so surrendered.

          (g) The Conversion Price shall be adjusted from time to time as
follows:

               (i) If the Corporation shall (A) make a payment of dividends or
distributions to holders of any class or series of capital stock of the
Corporation in Common Stock, (B) subdivide its outstanding Common Stock into a
greater number of shares, (C) combine its outstanding Common Stock into a
smaller number of shares or (D) issue any shares of capital stock by
reclassification of its Common Stock, the Conversion Price shall be adjusted so
that the holder of any Series A Stock thereafter surrendered for conversion
shall be entitled to receive the number of shares of Common Stock that such
holder would have owned or have been entitled to receive after the happening of
any of the events described above had such shares been converted immediately
prior to the record date in the case of a dividend or distribution or the
effective date in the case of a subdivision, combination or reclassification. An
adjustment made pursuant to this paragraph (g)(i) shall become effective
immediately after the opening of business on the day next following the record
date (except as provided in paragraph (k) of this subsection 8) in the case of a
distribution and shall become effective immediately after the opening of
business on the day next following the effective date in the case of a
subdivision, combination or reclassification. Such adjustment(s) shall be made
successively whenever any of the events listed above shall occur.

               (ii) If the Corporation shall issue rights, options or warrants
to all holders of Common Stock entitling them (for a period expiring within 45
days after the record date fixed for such issuance) to subscribe for or purchase
Common Stock (or securities convertible into or exchangeable for Common Stock)
at a price per share less than the Fair Market Value (as defined below) per
share of Common Stock on the record date for the determination of shareholders
entitled to receive such rights, options or warrants, then the Conversion Price
shall be adjusted to equal the price determined by multiplying (A) the
Conversion Price in effect immediately prior to the opening of business on the
Business Day next following the date fixed for such determination by (B) a
fraction, the numerator of which shall be the sum of (I) the number of shares of
Common Stock outstanding on the close of business on the date fixed for such
determination and (II) the number of shares of Common Stock that could be
purchased at the Current Market Price on the date fixed for such determination
with the aggregate proceeds to the Corporation from the exercise of such rights,
options or warrants, and the denominator of which shall be the sum of (x) the
number of shares of Common Stock outstanding on the close of business on the
date fixed for such determination and (y) the number of additional shares of
Common Stock offered, for subscription or purchase pursuant to such rights,
options or warrants. Such adjustment shall be made successively whenever any
such rights, options or warrants are issued, and shall become effective
immediately after the opening of business on the day next following the record
date for any such rights, options or warrants issued (except as provided in
paragraph (k) of this subsection 8). In determining whether any rights, options

                                       10
<PAGE>

or warrants entitle the holders of Common Stock to subscribe for or purchase
Common Stock at less than the Fair Market Value, there shall be taken into
account any consideration received by the Corporation upon issuance and upon
exercise of such rights, options or warrants, the value of such consideration,
if other than cash, to be determined by the Chief Executive Officer of the
Corporation or the Board of Directors of the Corporation whose decision shall be
final, conclusive and binding. Any adjustment(s) made pursuant to this paragraph
(d)(ii) shall become effective immediately after the opening of business on the
Business Day next following such record date. Such adjustment(s) shall be made
successively whenever any of the events listed above shall occur. "Fair Market
Value" shall mean the number obtained, for the 30 Trading Days before, and
ending not later than, the earlier of the day in question and the day before the
"ex date" with respect to any issuance or distribution requiring such
computation, by dividing (a) the sum of the products for all sales of Common
Stock during such 30 Trading Day period of (i) the sales prices per share of
Common Stock as reported on the consolidated transaction reporting system
contemplated by Rule 11Aa3-1 of the Securities Exchange Act of 1934, as amended,
times (ii) the number of shares of Common Stock sold at such prices by (b) the
total number of shares of Common Stock sold during such 30 Trading Day period.
The term "ex date", when used with respect to any issuance or distribution,
means the first day on which the Common Stock trades the regular way, without
the right to receive such issuance or distribution, on the exchange or in the
market, as the case may be, used to determine that day's Current Market Price.
Appropriate adjustments shall be made during any 30 Trading Day period in the
event of any subdivision or combination of shares of Common Stock, whether by
stock split, stock dividend, recapitalization, reverse stock split or otherwise,
which occurs during such 30 Trading Day period.

               (iii) If the Corporation shall distribute to all holders of its
Common Stock any shares of capital stock of the Corporation (other than Common
Stock) or evidence of its indebtedness or assets (including securities, but
excluding cash distributions paid out of the total equity applicable to Common
Stock, less the amount of stated capital attributable to Common Stock,
determined on the basis of the most recent annual or quarterly consolidated cost
basis and current value basis and consolidated balance sheets of the Corporation
and its consolidated subsidiaries available at the time of the declaration of
the distribution) or rights or warrants to subscribe for or purchase any of its
securities (excluding those rights and warrants issued to all holders of Common
Stock entitling them for a period expiring within 45 days after the record date
referred to in paragraph (g)(ii) of this subsection 8 to subscribe for or
purchase Common Stock, which rights and warrants are referred to in and treated
under paragraph (g)(ii) of this subsection 8) (any of the foregoing being
hereinafter in this paragraph (g)(iii) called the "Securities"), then in each
case the Conversion Price shall be adjusted so that it shall equal the price
determined by multiplying (A) the Conversion Price in effect immediately prior
to the close of business on the date fixed for the determination of shareholders
entitled to receive such distribution by (B) a fraction, the numerator of which
shall be the Current Market Price per share of Common Stock on the record date
described in the immediately following paragraph less the then Fair Market Value
of the shares of capital stock or assets or evidences of indebtedness so
distributed or of such rights or warrants applicable to one share of Common
Stock, and the denominator of which shall be the Current Market Price per share
of Common Stock on the record date described in the immediately following
paragraph.

                                       11
<PAGE>

Such adjustment shall become effective immediately at the opening of business on
the Business Day next following (except as provided in paragraph (k) of this
subsection 8) the record date for the determination of shareholders entitled to
receive such distribution. For the purposes of this paragraph (g)(iii), the
distribution of a Security which is distributed not only to the holders of the
Common Stock on the date fixed for the determination of shareholders entitled to
such distribution of such Security, but also is distributed with each share of
Common Stock delivered to a person converting a share of Series A Stock after
such determination date, shall not require an adjustment of the Conversion Price
pursuant to this paragraph (g)(iii); provided that on the date, if any, on which
a person converting a share of Series A Stock would no longer be entitled to
receive such Security with a share of Common Stock (other than as a result of
the termination of all such Securities), a distribution of such Securities shall
be deemed to have occurred, and the Conversion Price shall be adjusted as
provided in this paragraph (g)(iii) (and such day shall be deemed to be "the
date fixed for the determination of the shareholders entitled to receive such
distribution" and "the record date" within the meaning of the two preceding
sentences). Such adjustment(s) shall be made successively whenever any of the
events listed above shall occur.

               (iv) No adjustment in the Conversion Price shall be required
unless such adjustment would require a cumulative increase or decrease of at
least 1% in such price; provided, however, that any adjustments that by reason
of this paragraph (g)(iv) are not required to be made shall be carried forward
and taken into account in any subsequent adjustment until made; and provided,
further, that any adjustment shall be required and made in accordance with the
provisions of this subsection 8 (other than this paragraph (g)(iv)) not later
than such time as may be required in order to preserve the tax-free nature of a
distribution to the holders of Common Stock. Notwithstanding any other
provisions of this subsection 8, the Corporation shall not be required to make
any adjustment to the Conversion Price (A) upon the issuance of any Common Stock
or options or rights to purchase Common Stock pursuant to any present or future
employee, director or consultant incentive or benefit plan or program of the
Corporation or any of its subsidiaries; (B) upon the issuance of any Common
Stock pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on shares of capital stock or indebtedness of the
Corporation and the investment of additional optional amounts in Common Stock
under any plan; (C) upon a change in the par value of the Common Stock of the
Corporation; or (D) for accumulated and unpaid dividends on shares of capital
stock of the Corporation. All calculations under this subsection 8 shall be made
to the nearest cent (with $.005 being rounded upward) or to the nearest
one-tenth of a share (with .05 of a share being rounded upward), as the case may
be.

          (h) If the Corporation shall be a party to any transaction (including
without limitation a merger, consolidation, statutory share exchange, tender
offer for all or substantially all of the Common Stock, sale of all or
substantially all of the Corporation's assets or recapitalization of the Common
Stock and excluding any transaction as to which paragraph (g)(i) of this
subsection 8 applies (each of the foregoing being referred to herein as a
"Transaction"), in each case as a result of which Common Stock shall be
converted into the right to receive shares, stock, securities or other property
(including cash or any combination thereof), each share of Series A Stock which
is not converted into the right to receive shares, stock, securities or other
property in connection with such Transaction shall thereafter be convertible
into the kind and amount of shares, stock, securities and other property
receivable (including cash or any combination thereof) upon the consummation of
such Transaction by a holder of that number of shares of Common Stock or

                                       12
<PAGE>

fraction thereof into which one share of Series A Stock was convertible
immediately prior to such Transaction, assuming such holder of Common Stock (i)
is not a person with which the Corporation consolidated or into which the
Corporation merged or which merged into the Corporation or to which such sale or
transfer was made, as the case may be (a "Constituent Person"), or an affiliate
of a Constituent Person and (ii) failed to exercise his or her rights of
election, if any, as to the kind or amount of such stock, securities and other
property (including cash) receivable upon consummation of such Transaction (each
a "Non-Electing Share") (provided that if the kind or amount of shares, stock,
securities and other property (including cash) receivable upon consummation of
such Transaction by each Non-Electing Share is not the same for each
Non-Electing Share, then the kind and amount of shares, stock, securities and
other property (including cash) receivable upon consummation of such Transaction
for each Non-Electing Share shall be deemed to be the kind and amount so
receivable per share by a plurality of the Non-Electing Shares). The Corporation
shall not be a party to any Transaction unless the terms of such Transaction are
consistent with the provisions of this paragraph (h), and it shall not consent
or agree to the occurrence of any Transaction until the Corporation has entered
into an agreement with the successor or purchasing entity, as the case may be,
for the benefit of the holders of the Series A Stock, that will require such
successor or purchasing entity, as the case may be, to make provision in its
certificate or articles of incorporation or other constituent documents to the
end that the provisions of this paragraph (h) shall thereafter correspondingly
be made applicable as nearly as may reasonably be, in relation to any shares of
stock or other securities or property thereafter deliverable upon conversion of
the Series A Stock. The provisions of this paragraph (h) shall similarly apply
to successive Transactions.

          (i) If:

               (i) the Corporation shall declare a distribution on the Common
Stock other than in cash out of the total equity applicable to Common Stock,
less the amount of stated capital attributable to Common Stock, determined on
the basis of the most recent annual or quarterly consolidated cost basis and
current value basis and consolidated balance sheets of the Corporation and its
consolidated subsidiaries available at the time of the declaration of the
distribution; or

               (ii) the Corporation shall authorize the granting to the holders
of the Common Stock of rights or warrants to subscribe for or purchase any
shares of any class or any other rights or warrants; or

               (iii) there shall be any reclassifications of the Common Stock
(other than an event to which paragraph (g)(i) of this subsection 8 applied) or
any consolidation or merger to which the Corporation is a party and for which
approval of any shareholders of the Corporation is required, or a statutory
share exchange involving the conversion or exchange of Common Stock into
securities or other property, or a self tender offer by the Corporation for all
or substantially all of its outstanding Common Stock, or the sale or transfer of
all or substantially all of the assets of the Corporation as an entity and for
which approval of any shareholder of the Corporation is required; or

                                       13
<PAGE>

               (iv) there shall occur the voluntary or involuntary liquidation,
dissolution or winding up of the Corporation; then the Corporation shall cause
to be filed with the transfer agent of the Corporation and shall cause to be
mailed to the holders of the Series A Stock at their addresses as shown on the
share records of the Corporation, as promptly as possible, but at least 15 days
prior to the applicable date hereinafter specified, a notice stating (A) the
record date as of which the holders of Common Stock of record to be entitled to
such distribution or grant of rights or warrants are to be determined, provided,
however, that no such notification need be made in respect of a record date for
a distribution or grant of rights unless the corresponding adjustment in the
Conversion Price would be an increase or decrease of at least 1%, or (B) the
date on which such reclassification, consolidation, merger, statutory share
exchange, sale, transfer, liquidation, dissolution or winding up is expected to
become effective, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their Common Stock for securities
or other property, if any, deliverable upon such reclassification,
consolidation, merger, statutory share exchange, sale, transfer, liquidation,
dissolution or winding up. Failure to give or receive such notice or any defect
therein shall not affect the legality or validity of the proceedings described
in subsection 8 of this Section A.

          (j) Whenever the Conversion Price is adjusted as herein provided, the
Corporation shall promptly file with the transfer agent of the Corporation an
officer's certificate setting forth the Conversion Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment,
which certificate shall be conclusive evidence of the correctness of such
adjustment absent manifest error. Promptly after delivery of such certificate,
the Corporation shall prepare a notice of such adjustment of the Conversion
Price, setting forth the adjusted Conversion Price and the effective date on
which such adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Price to the holder of each share of Series A Stock
at such holder's last address as shown on the share records of the Corporation.

          (k) In any case in which paragraph (g) of subsection 8 provides that
an adjustment shall become effective on the date next following the record date
for an event, the Corporation may defer until the occurrence of such event (I)
issuing to the holder of any Series A Stock converted after such record date and
before the occurrence of such event the additional Common Stock issuable upon
such conversion by reason of the adjustment required by such event over and
above the Common Stock issuable upon such conversion before giving effect to
such adjustment and (II) fractionalizing any Series A Stock and/or paying to
such holder any amount of cash in lieu of any fraction pursuant to paragraph (f)
of this subsection 8.

          (l) There shall be no adjustment of the Conversion Price in case of
the issuance of any shares of capital stock of the Corporation in a
reorganization, acquisition or other similar transaction except as specifically
set forth in this subsection 8. If any action or transaction would require
adjustment of the Conversion Price pursuant to more than one paragraph of this
subsection 8, only one adjustment shall be made, and such adjustment shall be
the amount of adjustment that has the highest absolute value.

          (m) If the Corporation shall take any action affecting the Common
Stock, other than an action described in this subsection 8, that in the opinion
of the Board of Directors of the Corporation would materially and adversely
affect the conversion rights of the holders of the Series A Stock, the
Conversion Price for the Series A Stock may be adjusted, to the extent permitted

                                       14
<PAGE>

by law, in such manner, if any, and at such time, as the Board of Directors of
the Corporation, in its sole discretion, may determine to be equitable under the
circumstances.

          (n) The Corporation covenants that it will at all times reserve and
keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued Common Stock, for the purpose of effecting conversion of
the Series A Stock, the full number of shares of Common Stock deliverable upon
the conversion of all outstanding Series A Stock not theretofore converted. For
purposes of this paragraph (n), the number of shares of Common Stock that shall
be deliverable upon the conversion of all outstanding Series A Stock shall be
computed as if at the time of computation all such outstanding shares were held
by a single holder.

          The Corporation covenants that any Common Stock issued upon conversion
of the Series A Stock shall be validly issued, fully paid and nonassessable.
Before taking any action that would cause an adjustment reducing the Conversion
Price below the then par value of the Common Stock deliverable upon conversion
of the Series A Stock, the Corporation will take any action that, in the opinion
of its counsel, may be necessary in order that the Corporation may validly and
legally issue fully paid and nonassessable Common Stock at such adjusted
Conversion Price.

          The Corporation shall use its reasonable best efforts to list the
Common Stock required to be delivered upon conversion of the Series A Stock,
prior to such delivery, upon each national securities exchange, if any, upon
which the outstanding Common Stock is listed at the time of such delivery.

          (o) The Corporation will pay any and all documentary stamp or similar
issue or transfer taxes payable in respect of the issue or delivery of Common
Stock or other securities or property on conversion of the Series A Stock
pursuant hereto; provided, however, that the Corporation shall not be required
to pay any tax that may be payable in respect of any transfer involved in the
issue or delivery of Common Stock or other securities or property in a name
other than that of the holder of the Series A Stock to be converted, and no such
issue or delivery shall be made unless and until the person requesting such
issue or delivery has paid to the Corporation the amount of any such tax or has
established, to the reasonable satisfaction of the Corporation, that such tax
has been paid.

          In addition to the foregoing adjustments, the Corporation shall be
entitled to make such reductions in the Conversion Price, in addition to those
required herein, as it in its discretion considers to be advisable in order that
any share distributions, subdivisions of shares, reclassification or combination
of shares, distribution of rights, options, warrants to purchase shares or
securities, or a distribution of other assets (other than cash distributions)
will not be taxable or, if that is not possible, to diminish any income taxes
that are otherwise payable because of such event.

     9. Certificate of Incorporation and Bylaws. The rights of all holders of
the Series A Stock and the terms of the Series A Stock are subject to the
provisions of this Certificate of Designations, the Certificate of Incorporation
and the Bylaws of the Corporation.

                                       15
<PAGE>

          B. Exclusion of Other Rights.Except as may otherwise be required by
law, the Series A Stock shall not have any voting powers, preferences or
relative, participating, optional or other special rights, other than those
specifically set forth in this Certificate of Designations (as such may be
amended from time to time) and in the Corporation's Certificate of
Incorporation. The Series A Stock shall have no preemptive or subscription
rights.

          C. Headings of Subdivisions. The headings of the various subdivisions
hereof are for convenience of reference only and shall not affect the
interpretation of any of the provisions hereof.

          D. Severability of Provisions. If any voting powers, preferences or
relative, participating, optional and other special rights of the Series A Stock
or qualifications, limitations or restrictions thereof set forth in this
Certificate of Designations (as such may be amended from time to time) is
invalid, unlawful or incapable of being enforced by reason of any rule of law or
public policy, all other voting powers, preferences and relative, participating,
optional and other special rights of Series A Stock and qualifications,
limitations and restrictions thereof set forth in this Certificate of
Designations (as so amended) which can be given effect without the invalid,
unlawful or unenforceable voting powers, preferences or relative, participating,
optional or other special rights of Series A Stock or qualifications,
limitations and restrictions thereof shall be given such effect. None of the
voting powers, preferences or relative participating, optional or other special
rights of the Series A Stock or qualifications, limitations or restrictions
thereof herein set forth shall be deemed dependent upon any other such voting
powers, preferences or relative, participating, optional or other special right
of Series A Stock or qualifications, limitations or restrictions thereof unless
so expressed herein.

                                       16Exhibit 4.2

                                     WARRANT

                                   TO PURCHASE

             100,000 SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK

                                       OF

                         VELOCITY ASSET MANAGEMENT, INC.

                           (Void after _______, 2011)

                                Warrant No. PA-1

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE THEREWITH. THIS
WARRANT AND THE PREFERRED SHARES PURCHASABLE HEREUNDER ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AS SET FORTH HEREIN.

     UNTIL _______________, 2007, NEITHER ANDERSON & STRUDWICK, INCORPORATED NOR
ANY ASSIGNEE OF ALL OR A PORTION OF THE RIGHTS PURSUANT TO THIS WARRANT MAY
SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE ANY OF ITS RIGHTS PURSUANT TO THIS
WARRANT OTHER THAN TO BONA FIDE OFFICERS OF ANDERSON & STRUDWICK, INCORPORATED.

     This certifies that Anderson & Strudwick, Incorporated ("A&S," and each of
A&S and any successor or assign being a "Holder"), for consideration of the
payment of the sum of $100.00, the sufficiency and receipt of which is hereby
acknowledged, is entitled to purchase from Velocity Asset Management, Inc., a
Delaware corporation (the "Company"), subject to the terms set forth below, up
to One Hundred Thousand (100,000), newly issued, fully paid and nonassessable
shares (the "Warrant Shares") (subject to adjustment as provided herein) of the
Company's Series A Convertible Preferred Stock, $.001 par value per share
("Series A Preferred Stock") for cash at a price of $12.00 per share (as
adjusted as provided herein, the "Exercise Price") or pursuant to the cashless
exercise terms in Section 1.2 at any time or from time to time after
____________, 2007 and expiring at 5:00 p.m. (Eastern Time) ________, 2011 (the
"Expiration Date") upon surrender to the Company at its principal office (or at
such other location as the Company may advise the Holder in writing) of this
Warrant properly endorsed with the Form of Subscription attached hereto duly
filled in and signed and, if the cashless exercise terms in Section 2.1 are not
utilized, upon payment in cash or by check of the aggregate Exercise Price for
the number of shares for which this Warrant is being exercised determined in
accordance with the provisions hereof. The Exercise Price is subject to
adjustment as provided in Section 3 of this Warrant and the right to purchase
the Warrant Shares and the number of Warrant Shares that may be purchased
hereunder are subject to the contingencies set forth in this Warrant.

<PAGE>

     This Warrant is subject to the following terms and conditions:

     1. Exercise, Issuance of Certificates, Reduction in Number of Warrant
Shares.

          1.1. General. Except as provided in Section 1.2, this Warrant is
exercisable at the option of the Holder of record hereof on or prior to the
Expiration Date, at any time or from time to time, for all or any part of the
Warrant Shares (but not for a fraction of a share) which may be purchased
hereunder, as that number may be adjusted pursuant to Sections 1.2 or 3 of this
Warrant. The Company agrees that the Warrant Shares purchased under this Warrant
shall be and are deemed to be issued to the Holder hereof as the record owner of
such Warrant Shares as of the close of business on the date on which this
Warrant shall have been surrendered, the completed and executed Form of
Subscription delivered, and payment of the Exercise Price in cash or by
certified check, or if applicable, submission of the cashless exercise
calculation pursuant to Section 1.2 for such Warrant Shares. Certificates for
the Warrant Shares so acquired, together with any other securities or property
(including any money) to which the Holder hereof is entitled upon such exercise,
shall be delivered to the Holder or its transferee designated in writing to the
Company by the Company at the Company's expense not later than ten (10) days
after the rights represented by this Warrant have been so exercised. In case of
a purchase of less than all the Warrant Shares which may be purchased under this
Warrant, the Company shall cancel this Warrant and promptly execute and deliver
to the Holder or its transferee designated in writing to the Company a new
Warrant or Warrants of like tenor for the balance of the Warrant Shares
purchasable under the Warrant surrendered upon such purchase. Each stock
certificate so delivered shall be registered in the name of such Holder. The
Company shall pay all documentary, stamp or similar issue or transfer taxes
payable in respect of the issue or delivery of the Warrant Shares, if any.

          1.2. Net Issue Exercise of Warrant. Notwithstanding any provisions
herein to the contrary, if the Fair Market Value (as defined below) of one share
of Series A Preferred Stock is greater than the Exercise Price (at the date of
calculation as set forth below), in lieu of exercising this Warrant for cash,
Holder may elect to receive shares of Series A Preferred Stock equal to the
value (as determined below) of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company
together with the properly endorsed Form of Subscription in which event the
Company shall issue to the Holder a number of shares of Series A Preferred Stock
computed using the following formula:

                                       2
<PAGE>

                            X  =   Y (A-B)
                                   -------
                                      A

Where

          X = the number of shares of Series A Preferred Stock to be issued to
Holder;

          Y = the number of shares of Series A Preferred Stock purchasable under
the Warrant or, if only a portion of the Warrant is being exercised, the portion
of the Warrant being canceled (at the date of such calculation);

          A = the Fair Market Value of one share of the Series A Preferred Stock
(at the date of such calculation); and

          B = Exercise Price (as adjusted to the date of such calculation).

     For the purposes of this Warrant, the term "Fair Market Value" of a share
of Series A Preferred Stock shall mean (a) if the Series A Preferred Stock is
then listed and traded on a national securities exchange, the average of the
closing prices for the ten (10) trading days immediately preceding the date on
which the Warrant Shares are deemed issued pursuant to Section 1.1; (b) if the
Series A Preferred Stock is not then listed and traded on any such securities
exchange, the average of the closing prices on the National Association of
Securities Dealers, Inc. Automated Quotation System ("NASDAQ") National Market
for the ten (10) trading days immediately preceding the date on which the
Warrant Shares are deemed issued pursuant to Section 1.1; (c) if the Series A
Preferred Stock is not then traded on a national securities exchange or on the
NASDAQ National Market but is otherwise traded over-the-counter, the average of
the highest bid and lowest asked prices on for the ten (10) trading days
immediately preceeding the date on which the Warrant Shares are deemed issued
pursuant to Section 1.1 as quoted on NASDAQ or an equivalent generally accepted
reporting service. If on any determination date, none of (a), (b) or (c) of the
preceding sentence applies, the Fair Market Value of a share of Series A
Preferred Stock shall be the fair market value of such share on such
determination date as determined by the Board of Directors in good faith. If the
Holder shall object to any determination by the Board of Directors of the Fair
Market Value of the Series A Preferred Stock, the Fair Market Value of a share
of Series A Preferred Stock shall be determined by an independent appraiser
retained by the Company and reasonably acceptable to the Holder, with the
expense to be borne by the Company if the Fair Market Value as determined by
such appraiser equals or exceeds the Fair Market Value as determined by the
Board of Directors, and by the Holder if the Fair Market Value as determined by
such appraiser is less than the Fair Market Value as determined by the Board of
Directors.

     2. Reservation of Shares. The Company hereby agrees that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant such
number of authorized but unissued Warrant Shares (and common stock into which
such Warrant Shares are convertible) as will be sufficient to permit the full
exercise of this Warrant. The Company covenants and agrees that all Warrant
Shares, and all shares of common stock issuable upon conversion of such Warrant
Shares, shall be duly authorized and, upon issuance in accordance herewith,
shall be validly issued, fully paid and nonassessable, and free of all liens,

                                       3
<PAGE>

security interests, charges and other encumbrances or restrictions upon sale and
free and clear of preemptive or similar rights, except for restrictions on
transfer provided for herein or under applicable federal and state securities
laws.

     3. Adjustment of Exercise Price and Number of Shares for Equity Events. The
Exercise Price and the total number of Warrant Shares shall be subject to
adjustment from time to time upon the occurrence of certain events described in
this Section 3.

          3.1. Dividends; Subdivision or Combination of Stock.

               (a) In the case the Company shall at any time after the date
hereof (i) declare a dividend or make a distribution on Series A Preferred Stock
payable in Series A Preferred Stock, (ii) subdivide or split the outstanding
Series A Preferred Stock, (iii) combine or reclassify the outstanding Series A
Preferred Stock into a smaller number of shares, or (iv) issue any shares of its
capital stock in a reclassification of Series A Preferred Stock (including any
such reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), the Exercise Price in effect at the time
of the record date for such dividend or distribution or of the effective date of
such subdivision, split, combination or reclassification shall be
proportionately adjusted so that the exercise of this Warrant after such time
shall entitle the holder to receive the aggregate number of shares of Series A
Preferred Stock or other securities of the Company (or shares of any security
into which such shares of Series A Preferred Stock have been reclassified
pursuant to clause 3.1(a)(iii) or 3.1(a)(iv) above) which, if this Warrant had
been exercised immediately prior to such time, such holder would have owned upon
such exercise and been entitled to receive by virtue of such dividend,
distribution, subdivision, split, combination or reclassification. Such
adjustment shall be made successively whenever any event listed above shall
occur.

               (b) In the event that, at any time as a result of the provisions
of this paragraph 3.1 the Holder of this Warrant upon subsequent exercise shall
become entitled to receive any shares of capital stock of the Company other than
Series A Preferred Stock, the number of such other shares so receivable upon
exercise of this Warrant shall thereafter be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions contained herein.

               (c) Upon each adjustment of the Exercise Price as a result of the
calculations made in paragraphs 3.1(a) hereof, the number of Warrant Shares for
which this Warrant is exercisable immediately prior to the making of such
adjustment shall thereafter evidence the right to purchase, at the adjusted
Exercise Price, that number of Warrant Shares obtained by (i) multiplying the
number of Warrant Shares covered by this Warrant immediately prior to this
adjustment of the number of Warrant Shares by the Exercise Price in effect
immediately prior to such adjustment of the Exercise Price and (ii) dividing the
product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price.

          3.2 Notice of Adjustment. Upon any adjustment of the Exercise Price or
any increase or decrease in the number of Warrant Shares, the Company shall give
written notice thereof, by first class mail postage prepaid, addressed to the
registered Holder of this Warrant at the address of such Holder as shown on the

                                       4
<PAGE>

books of the Company. The notice shall be prepared by the independent public
accountants then auditing the books of the Company and signed by the Company's
Chief Financial Officer and the Company's Secretary and shall state the Exercise
Price resulting from such adjustment and the adjusted number of Warrant Shares
purchasable at such price upon the exercise of this Warrant, setting forth in
reasonable detail the method of calculation and the facts requiring such
adjustment upon which such calculation is based. A copy of such notice shall be
kept in the custody of the Company's Secretary or Assistant Secretary at its
principal office and with its stock transfer agent.

     4. Consolidation, Merger, or Sale of Assets. In case of any consolidation
of the Company with, or merger of the Company into, any other person, any merger
of another person into the Company (other than a merger which does not result in
any reclassification, conversion, exchange or cancellation of outstanding shares
of Series A Preferred Stock) or any sale or transfer of all or substantially all
of the assets of the Company or of the person formed by such consolidation or
resulting from such merger or which acquires such assets, as the case may be,
the Holder shall have the right thereafter to exercise this Warrant for the kind
and amount of securities, cash and other property receivable upon such
consolidation, merger, sale or transfer by a holder of the number of shares of
Series A Preferred Stock for which this Warrant may have been exercised
immediately prior to such consolidation, merger, sale or transfer. Adjustments
for events subsequent to the effective date of such a consolidation, merger and
sale of assets shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant. In any such event, effective
provisions shall be made in the certificate or articles of incorporation of the
resulting or surviving corporation, in any contract of sale, conveyance, lease
or transfer, or otherwise so that the provisions set forth herein for the
protection of the rights of the Holder shall thereafter continue to be
applicable; and any such resulting or surviving corporation shall expressly
assume the obligation to deliver, upon exercise, such shares of stock, other
securities, cash and property. The provisions of this paragraph 4 shall
similarly apply to successive consolidations, mergers, sales, leases or
transfers.

     5. No Voting or Dividend Rights. Nothing contained in this Warrant shall be
construed as conferring upon the Holder hereof the right, prior to the exercise
of the Warrant, to vote or to consent to receive notice as a shareholder of the
Company on any other matters or any rights whatsoever as a shareholder of the
Company. No dividends or interest shall be payable or accrued in respect of this
Warrant or the interest represented hereby or the shares purchasable hereunder
until, and only to the extent that, this Warrant shall have been exercised.

     6. Compliance with Securities Act; Warrant Transfer; Disposition of Warrant
Shares or Common Stock.

          6.1 Compliance with Securities Act. The Holder of this Warrant,
acceptance hereof, agrees that this Warrant is being acquired for investment and
that it will not offer, sell, or otherwise dispose of this Warrant, any Warrant
Shares, or any shares of common stock to be issued upon conversion of the
Warrant Shares except under circumstances which will not result in a violation
of the Securities Act of 1933, as amended (the "Act"), or any applicable state
securities laws. All Warrant Shares and all shares of common stock issued upon

                                       5
<PAGE>

conversion of the Warrant Shares (unless registered under the Act) shall,
subject to Section 6.3 be stamped or imprinted with a legend in substantially
the following form:

     THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT") OR THE SECURITIES OR BLUE SKY LAWS OF ANY STATE. THEY MAY
NOT BE OFFERED OR SOLD IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF SUCH ACT.

UNTIL _______________, 2007, NEITHER ANDERSON & STRUDWICK, INCORPORATED NOR ANY
ASSIGNEE OF ALL OR A PORTION OF THE RIGHTS PURSUANT TO THIS WARRANT MAY SELL,
TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE ANY OF ITS RIGHTS PURSUANT TO THIS
WARRANT OTHER THAN TO BONA FIDE OFFICERS OF ANDERSON & STRUDWICK, INCORPORATED.

          6.2 Warrant Transfer. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors of the Company
and the successors and assigns of Holder. The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant,
and shall be enforceable by any such Holder. The Warrant may be sold,
transferred, assigned, pledged or hypothecated by A&S prior to ______________,
2007 only to bona fide officers of A&S, who in turn shall be subject to the same
restriction, contained in this Section 6.2.

          6.3 Disposition of Warrant Shares and Common Stock. With respect to
any offer, sale, or other disposition of the Warrant, any Warrant Shares, or of
any shares of common stock issued upon conversion of the Warrant Shares prior to
registration of such shares, the Holder hereof and each subsequent Holder of
this Warrant agrees to give written notice to the Company prior thereto,
describing briefly the manner thereof, together with a written opinion of such
Holder's counsel, if reasonably requested by the Company, to the effect that
such offer, sale or other disposition may be effected without registration under
the Act or any applicable state law then in effect of such Warrant, Warrant
Shares or common stock, as the case may be, or that such Warrant, Warrant Shares
or common stock are no longer subject to the restrictive legends referred to
herein. Promptly upon receiving such written notice and opinion, the Company, as
promptly as practicable, shall notify such Holder that such Holder may sell or
otherwise dispose of such Warrant, Warrant Shares or common stock, all in
accordance with the terms of the notice delivered to the Company. If a
determination has been made pursuant to this subparagraph 6.3 that the opinion
of the counsel for the Holder is not reasonably satisfactory to the Company, the
Company shall so notify the Holder promptly after such determination has been
made and provide a written legal opinion of the Company's outside counsel
explaining the reasons for such determination. Notwithstanding the foregoing,
such Warrant, Warrant Shares or common stock may be offered, sold or otherwise
disposed of in accordance with Rule 144 under the Act, provided that the Company
shall have been furnished with such information as the Company may request to
provide reasonable assurance that the provisions of Rule 144 have been
satisfied. Each certificate representing the Warrant, Warrant Shares or common

                                       6
<PAGE>

stock thus transferred (except a transfer pursuant to Rule 144) shall bear a
legend as to the applicable restrictions on transferability in order to insure
compliance with the Act, unless in the aforesaid opinion of counsel for the
Holder, such legend is not required in order to insure compliance with the Act.
If appropriate in the circumstances, the Company may issue stop transfer
instructions to its transfer agent in connection with such restrictions.

     7. Modification and Waiver. This Warrant and any provision hereof may be
amended, changed, waived, discharged, or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought.
Except as expressly provided herein, no failure or delay by either party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by law.

     8. Notices. Any notice, request, or other document required or required or
permitted to be given or delivered to the Holder hereof or the Company shall be
in writing and shall be given to the Holder or the Company at its address or
telecopier number set forth below or such other address or telecopier number as
either may from time to time provide to the other.

Company:      Velocity Asset Management, Inc.
              48 S. Franklin Turnpike
              3rd Floor
              Ramsey, New Jersey 07446
              Attention:  John C. Kleinert

Holder:       Anderson & Strudwick, Incorporated
              707 East Main Street
              20th Floor
              Richmond, Virginia 23219
              Attention: L. McCarthy Downs, III

     Each such notice, request or other document shall be effective (i) if given
by telecopy, when such telecopy is properly transmitted and the intended
recipient confirms receipt of such telecopy or (ii) if given by any other means,
when received at the address specified herein or, subsequently notified to the
other party in writing.

     9. Covenants of the Company. If at any time:

          9.1 the Company shall declare any dividend upon its Series A Preferred
Stock payable in stock or make any special dividend or other distribution to the
holders of its Series A Preferred Stock;

          9.2 the Company shall offer for subscription pro rata to the holders
of its Series A Preferred Stock any additional shares of stock of any class or
other rights;

                                       7
<PAGE>

          9.3 there shall be any capital reorganization or reclassification of
the capital stock of the Company, or consolidation or merger of the Company
with, or sale of all or substantially all of its assets to, another corporation;
or

          9.4 there shall be a voluntary or involuntary dissolution,
liquidation, or winding-up of the Company;

then, in any one or more of said cases, the Company shall give, by first class
mail, postage prepaid, addressed to the Holder of this Warrant at the address of
such Holder as shown on the books of the Company, (a) at least ten (10) days'
prior written notice of the date on which the books of the Company shall close
or a record shall be taken for such dividend, distribution, or subscription
rights or for determining rights to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation, or
winding-up, and (b) in the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation, or winding-up, at least
ten (10) days' prior written notice of the date when the same shall take place.
Any notice given in accordance with the foregoing clause (a) shall also specify,
in the case of any such dividend, distribution, or subscription rights, the date
on which the holders of Series A Preferred Stock shall be entitled thereto. Any
notice given in accordance with the foregoing clause (b) shall also specify the
proposed date of such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation, winding-up, or conversion, as the case may be.

     10. Governing Law. This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Delaware.

     11. Lost Warrants. The Company represents and warrants to the Holder hereof
that upon receipt of evidence reasonably satisfactory to the Company of the
loss, theft, destruction, or mutilation of this Warrant and, in the case of any
such loss, theft or destruction, upon receipt of an indemnity reasonably
satisfactory to the Company, or in the case of any such mutilation upon
surrender and cancellation of such Warrant, the Company, at its expense, will
make and deliver a new Warrant, of like tenor and date, in lieu of the lost,
stolen, destroyed or mutilated Warrant.

     12. Fractional Shares. No fractional shares or scrip representing
fractional shares shall be issued upon exercise of this Warrant and in lieu
thereof the Company shall pay the Holder an amount in cash equal to such
fraction multiplied by the Fair Market Value (as such term is defined in Section
1.2 hereof) of a Warrant Share on the date of exercise of this Warrant.

     13. No Impairment. The Company will not, by charter amendment or by
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the Holder against impairment. Upon the request of the Holder, the Company will
at any time during the period this Warrant is outstanding acknowledge in
writing, in form satisfactory to Holder, the continued validity of this Warrant
and the Company's obligations hereunder.

                                       8
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
by its officer, thereunto duly authorized as of this ______ day of ______, 2006.

                                  VELOCITY ASSET MANAGEMENT, INC.

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

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

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

Accepted as of the ____ day of ______, 2006

ANDERSON & STRUDWICK, INCORPORATED

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

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

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

                                       9
<PAGE>

                         VELOCITY ASSET MANAGEMENT, INC.

                              FORM OF SUBSCRIPTION

To Velocity Asset Management, Inc.:

     The undersigned, the holder of Warrant Number ______, hereby irrevocably
elects to exercise the purchase right represented by such Warrant, and to
purchase thereunder _________* shares of Series A Convertible Preferred Stock,
$.001 par value per share, of Velocity Asset Management, Inc. (the "Company").

     As payment therefor, the undersigned (mark one):

     ______ herewith makes a payment in cash or by check of U.S. $___________;
or

     ______ requests to utilize the cashless exercise provision in Section 1.2
of the Warrant Agreement to exercise.

     Further, the undersigned requests that the certificate or certificates for
such shares be issued in the name of and delivered to the undersigned. The
undersigned acknowledges and agrees that shares to be received by the
undersigned are subject to the restrictions on transfer set forth in the
Warrant.

                                        --------------------------------------
                                                    (Signature)

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

                                        --------------------------------------
                                                     (Address)

Dated:_________________________

     *Insert here the number of shares set forth on the face of the Warrant (or,
in the case of a partial exercise, the portion thereof as to which the Warrant
is being exercised), in either case without making any adjustment (which
adjustment will be made in the issuance of such Series A Convertible Preferred
Stock, other stock, securities, property, or cash) for additional shares of
Series A Convertible Preferred Stock or any other stock or other securities or
property or cash that, pursuant to the adjustment provisions of the Warrant, is
deliverable upon exercise.

                                       10
<PAGE>

                               FORM OF ASSIGNMENT

                  (To be signed only upon transfer of Warrant)

     For value received, the undersigned hereby sells, assigns and transfers
unto ________________ the right represented by Warrant Number ________ to
purchase ________ shares of Series A Convertible Preferred Stock, $.001 par
value per share, of Velocity Asset Management, Inc. to which the attached
Warrant related, and appoints ________________ as Attorney-in-Fact to transfer
such right on the books of Velocity Asset Management, Inc. with the full power
of substitution in the premises.

     The undersigned represents and warrants that the transfer of the attached
Warrant is permitted by the terms of the Warrant Agreement pursuant to which the
attached Warrant has been issued, and the transferee hereof, by acceptance of
this Assignment, agrees to be bound by the terms of the Warrant Agreement with
the same force and effect as if a signatory thereto.

                                        --------------------------------------
                                                    (Signature)

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

                                        --------------------------------------
                                                     (Address)

Dated:____________________________

                                        --------------------------------------
                                                    (Signature)

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

                                        --------------------------------------
                                                     (Address)

                                       11

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