Document:

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                                                                    EXHIBIT 10.1
                                                                  EXECUTION COPY

                               PURCHASE AGREEMENT

                                     BETWEEN

                           TRIAD FINANCIAL CORPORATION
                                   ORIGINATOR

                                       AND

                       TRIAD FINANCIAL SPECIAL PURPOSE LLC
                                     SELLER

                           DATED AS OF AUGUST 1, 2002

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                                TABLE OF CONTENTS

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                                                                                          Page
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<S>                   <C>                                                                 <C>
ARTICLE I.            DEFINITIONS.......................................................    1

    SECTION 1.1       General...........................................................    1
    SECTION 1.2       Specific Terms....................................................    1
    SECTION 1.3       Usage of Terms....................................................    2
    SECTION 1.4       [Reserved]........................................................    2
    SECTION 1.5       No Recourse.......................................................    2
    SECTION 1.6       Action by or Consent of Noteholders and
                      Certificateholder.................................................    2
    SECTION 1.7       Material Adverse Effect...........................................    3

ARTICLE II.           CONVEYANCE OF THE RECEIVABLES  AND THE OTHER CONVEYED
                      PROPERTY..........................................................    3

    SECTION 2.1       Conveyance of the Receivables and the Other Conveyed
                      Property..........................................................    3

ARTICLE III.          REPRESENTATIONS AND WARRANTIES....................................    4

    SECTION 3.1       Representations and Warranties of Originator......................    4
    SECTION 3.2       Representations and Warranties of Seller..........................    5

ARTICLE IV.           COVENANTS OF SELLER...............................................    7

    SECTION 4.1       Protection of Title of Seller.....................................    7
    SECTION 4.2       Reserved..........................................................    8
    SECTION 4.3       Other Liens or Interests..........................................    8
    SECTION 4.4       Costs and Expenses................................................    9
    SECTION 4.5       Indemnification by Originator.....................................    9
    SECTION 4.6       Indemnification by the Seller.....................................    9

ARTICLE V.            REPURCHASES.......................................................   10

    SECTION 5.1       Repurchase of Receivables Upon Breach of Warranty.................   10
    SECTION 5.2       Reassignment of Purchased Receivables.............................   10
    SECTION 5.3       Waivers...........................................................   11

ARTICLE VI.           MISCELLANEOUS.....................................................   11

    SECTION 6.1       Liability of Originator and Seller................................   11
    SECTION 6.2       Merger or Consolidation of Originator or Seller...................   11
    SECTION 6.3       Limitation on Liability of Originator, and Seller and
                      Others............................................................   12
    SECTION 6.4       Originator May Own Notes or the Certificate.......................   12
    SECTION 6.5       Amendment.........................................................   12
    SECTION 6.6       Notices...........................................................   13
    SECTION 6.7       Merger and Integration............................................   14
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<TABLE>
<S>                   <C>                                                                  <C>
    SECTION 6.8       Severability of Provisions........................................   14
    SECTION 6.9       Intention of the Parties..........................................   14
    SECTION 6.10      Governing Law.....................................................   15
    SECTION 6.11      Counterparts......................................................   15
    SECTION 6.12      Conveyance of the Receivables and the Other Conveyed
                      Property to the Issuer............................................   15
    SECTION 6.13      Nonpetition Covenant..............................................   15
</TABLE>

SCHEDULES

Schedule A -- Schedule of Receivables
Schedule B -- Representations and Warranties from Originator as to the
              Receivables

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                               PURCHASE AGREEMENT

               THIS PURCHASE AGREEMENT, dated as of August 1, 2002, is between
Triad Financial Corporation, a California corporation, as Originator
("Originator"), and Triad Financial Special Purpose LLC, a Delaware limited
liability company, as Seller ("Seller").

               Seller has agreed to purchase from the Originator, and the
Originator, pursuant to this Agreement, is selling to Seller the Receivables and
Other Conveyed Property.

               In consideration of the premises and the mutual agreements
hereinafter contained, and for other good and valuable consideration, the
receipt of which is acknowledged, the Originator and the Seller, intending to be
legally bound, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

               SECTION 1.1 General. Capitalized terms used herein without
definition will have the respective meanings assigned to such terms in the Sale
and Servicing Agreement dated as of August 1, 2002, by and among the Seller,
Triad Financial Corporation, in its individual capacity, as Custodian and as
Servicer, Triad Automobile Receivables Trust 2002-A, as Issuer, and JPMorgan
Chase Bank, as Backup Servicer and Indenture Trustee.

               SECTION 1.2 Specific Terms. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, will have
the following meanings:

               "Agreement" means this Purchase Agreement and all amendments
hereof and supplements hereto.

               "Closing Date" means August 21, 2002.

               "Issuer" means Triad Automobile Receivables Trust 2002-A.

               "Other Conveyed Property" means all property described in Section
2.1(b), (c), (d), (e), (f) and (h) of the Sale and Servicing Agreement conveyed
by the Originator to the Seller pursuant to this Agreement other than the
Receivables, including all monies paid on or after the Cut-Off Date.

               "Owner Trustee" means Wilmington Trust Company, as Owner Trustee
appointed and acting pursuant to the Trust Agreement.

               "Receivables" means the Receivables listed on the Schedule of
Receivables attached hereto.

               "Related Documents" means the Notes, the Certificate, the Sale
and Servicing Agreement, the Indenture, the Trust Agreement, the Policy, the
Insurance Agreement and the Underwriting Agreement. The Related Documents to be
executed by any party are referred to

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herein as "such party's Related Documents," "its Related Documents" or by a
similar expression.

               "Repurchase Event" means the occurrence of a breach of any of the
Originator's representations and warranties hereunder including the
representations and warranties set forth in Schedule B or any other event which
requires the repurchase of a Receivable by the Originator under the Sale and
Servicing Agreement.

               "Sale and Servicing Agreement" means the Sale and Servicing
Agreement referred to in Section 1.1.

               "Schedule of Representations" means the Schedule of
Representations and Warranties attached hereto as Schedule B.

               "Schedule of Receivables" means the schedule of Receivables sold
and transferred pursuant to this Agreement which is attached hereto as Schedule
A.

               "Taxes" means any sales, gross receipts, personal property,
tangible or intangible personal property, privilege or license taxes (but not
including any (x) federal, state or other taxes, arising out of the ownership of
the Notes or the Certificate, (y) transfer taxes arising in connection with the
transfer of the Notes or the Certificate or (z) federal, state or other taxes
arising out of any fees paid to the indemnified parties pursuant to the
Transaction Documents).

               "Trustee" means JPMorgan Chase Bank, as trustee and any successor
trustee appointed and acting pursuant to the Indenture.

               SECTION 1.3 Usage of Terms. With respect to all terms used in
this Agreement, the singular includes the plural and the plural the singular;
words importing any gender include the other gender; references to "writing"
include printing, typing, lithography, and other means of reproducing words in a
visible form; references to agreements and other contractual instruments include
all subsequent amendments thereto or changes therein entered into in accordance
with their respective terms and not prohibited by this Agreement or the Sale and
Servicing Agreement; references to Persons include their permitted successors
and assigns; and the terms "include" or "including" mean "include without
limitation" or "including without limitation." The words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Article,
Section, Schedule and Exhibit references, unless otherwise specified, refer to
Articles and Sections of and Schedules and Exhibits to this Agreement.

               SECTION 1.4 [Reserved].

               SECTION 1.5 No Recourse. Without limiting the obligations of the
Originator or the Seller hereunder, no recourse may be taken, directly or
indirectly, under this Agreement or any certificate or other writing delivered
in connection herewith or therewith, against any stockholder, officer or
director, as such, of the Originator or the Seller, or of any predecessor or
successor of the Originator or the Seller.

               SECTION 1.6 Action by or Consent of Noteholders and
Certificateholder. Whenever any provision of this Agreement refers to action to
be taken, or consented to, by

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Noteholders or the Certificateholder, such provision will be deemed to refer to
the Certificateholder or Noteholder, as the case may be, of record as of the
Record Date immediately preceding the date on which such action is to be taken,
or consent given, by Noteholders or the Certificateholder. Solely for the
purposes of any action to be taken, or consented to, by Noteholders, any Note
registered in the name of the Seller, the Originator or any Affiliate thereof
will be deemed not to be outstanding; provided, however, that, solely for the
purpose of determining whether the Owner Trustee or the Indenture Trustee is
entitled to rely upon any such action or consent, only Notes or Certificates
that the Owner Trustee or the Indenture Trustee, respectively, knows to be so
owned will be so disregarded.

               SECTION 1.7 Material Adverse Effect. Whenever a determination is
to be made under this Agreement as to whether a given event, action, course of
conduct or set of facts or circumstances could or would have a material adverse
effect on the Noteholders or the Insurer (or any similar or analogous
determination), such determination will be made without taking into account the
funds available from claims under the Policy.

                                   ARTICLE II.

                          CONVEYANCE OF THE RECEIVABLES
                         AND THE OTHER CONVEYED PROPERTY

               SECTION 2.1 Conveyance of the Receivables and the Other Conveyed
Property.

                (a) Subject to the terms and conditions of this Agreement,
        Originator hereby sells, transfers, assigns and otherwise conveys to
        Seller without recourse (but without limitation of its obligations in
        this Agreement), and Seller hereby purchases, all right, title and
        interest of Originator in and to the Receivables and the Other Conveyed
        Property, including collections paid on or after the Cut-Off Date. It is
        the intention of Originator and Seller that the sale and assignment
        contemplated by this Agreement constitutes a sale and contribution of
        the Receivables and the Other Conveyed Property from Originator to
        Seller, conveying good title thereto free and clear of any liens, and
        the beneficial interest in and title to the Receivables and the Other
        Conveyed Property will not be part of Originator's estate in the event
        of the filing of a bankruptcy petition by or against Originator under
        any bankruptcy or similar law.

                (b) Simultaneously with the sale of the Receivables and the
        Other Conveyed Property to Seller, Seller has paid or caused to be paid
        to or upon the order of Originator an amount equal to net proceeds of
        the Class A Notes (less the initial deposit to the Spread Account) by
        wire transfer of immediately available funds and the remainder as a
        contribution to the capital of the Seller (a wholly-owned subsidiary of
        Originator).

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                                  ARTICLE III.

                         REPRESENTATIONS AND WARRANTIES

               SECTION 3.1 Representations and Warranties of Originator.
Originator makes the following representations and warranties as of the date
hereof, on which Seller relies in purchasing the Receivables and the Other
Conveyed Property, on which the Issuer will rely in purchasing the Receivables
and the Other Conveyed Property and on which the Insurer will rely in issuing
the Policy. Such representations are made as of the execution and delivery of
this Agreement, but will survive the sale, transfer and assignment of the
Receivables and the Other Conveyed Property hereunder, and the sale, transfer
and assignment thereof by Seller to the Issuer. Originator and Seller agree that
Seller will assign to Issuer all Seller's rights under this Agreement and that
the Indenture Trustee will thereafter be entitled to enforce this Agreement
against Originator in the Indenture Trustee's own name on behalf of the
Noteholders.

                (a) Schedule of Representations. The representations and
        warranties set forth on the Schedule of Representations with respect to
        the Receivables as of the date hereof, are true and correct.

                (b) Organization and Good Standing. Originator has been duly
        organized and is validly existing as a corporation in good standing
        under the laws of the State of California, with power and authority to
        own its properties and to conduct its business as such properties are
        currently owned and such business is currently conducted, and had at all
        relevant times, and now has, power, authority and legal right to
        acquire, own, transfer and sell the Receivables and the Other Conveyed
        Property to be transferred to Seller.

                (c) Due Qualification. Originator is duly qualified to do
        business as a foreign corporation in good standing, and has obtained all
        necessary licenses and approvals in all jurisdictions in which the
        ownership or lease of its property or the conduct of its business with
        respect to the Receivables requires such qualification.

                (d) Power and Authority. Originator has the power and authority
        to execute and deliver this Agreement and its Related Documents and to
        carry out its terms and their terms, respectively; Originator has full
        power and authority to sell and assign the Receivables and the Other
        Conveyed Property to be sold and assigned to Seller hereunder and has
        duly authorized such sale and assignment to Seller by all necessary
        corporate action; and the execution, delivery and performance of this
        Agreement and Originator's Related Documents have been duly authorized
        by Originator by all necessary corporate action.

                (e) Valid Sale; Binding Obligations. This Agreement and
        Originator's Related Documents have been duly executed and delivered,
        will effect a valid sale, transfer and assignment of the Receivables and
        the Other Conveyed Property to the Seller, enforceable against
        Originator and creditors of and purchasers from Originator; and this
        Agreement and Originator's Related Documents constitute legal, valid and
        binding obligations of Originator enforceable in accordance with their
        respective terms, except as enforceability may be limited by bankruptcy,
        insolvency, reorganization or

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        other similar laws affecting the enforcement of creditors' rights
        generally and by equitable limitations on the availability of specific
        remedies, regardless of whether such enforceability is considered in a
        proceeding in equity or at law.

                (f) No Violation. The consummation of the transactions
        contemplated by this Agreement and the Related Documents, and the
        fulfillment of the terms of this Agreement and the Related Documents,
        will not conflict with, result in any breach of any of the terms and
        provisions of, or constitute (with or without notice, lapse of time or
        both) a default under, the articles of incorporation or bylaws of
        Originator, or any indenture, agreement, mortgage, deed of trust or
        other instrument to which Originator is a party or by which it is bound,
        or result in the creation or imposition of any Lien upon any of its
        properties pursuant to the terms of any such indenture, agreement,
        mortgage, deed of trust or other instrument, other than this Agreement,
        the Sale and Servicing Agreement and the Indenture, or violate any law,
        order, rule or regulation applicable to Originator of any court or of
        any federal or state regulatory body, administrative agency or other
        governmental instrumentality having jurisdiction over Originator or any
        of its properties.

                (g) No Proceedings. There are no proceedings or investigations
        pending or, to Originator's knowledge, threatened against Originator,
        before any court, regulatory body, administrative agency or other
        tribunal or governmental instrumentality having jurisdiction over
        Originator or its properties (i) asserting the invalidity of this
        Agreement or any of the Related Documents, (ii) seeking to prevent the
        issuance of the Notes or the consummation of any of the transactions
        contemplated by this Agreement or any of the Related Documents, (iii)
        seeking any determination or ruling that might materially and adversely
        affect the performance by Originator of its obligations under, or the
        validity or enforceability of, this Agreement or any of the Related
        Documents or (iv) seeking to affect adversely the federal income tax or
        other federal, state or local tax characterization of, or seeking to
        impose any excise, franchise, transfer or similar tax upon, the transfer
        and acquisition of the Receivables and the Other Conveyed Property
        hereunder or under the Sale and Servicing Agreement.

                (h) True Sale. The Receivables are being transferred with the
        intention of removing them from Originator's estate pursuant to Section
        541 of the Bankruptcy Code, as the same may be amended from time to
        time.

               SECTION 3.2 Representations and Warranties of Seller. Seller
makes the following representations and warranties as of the date hereof, on
which Originator relies in transferring the Receivables and the Other Conveyed
Property to the Seller, on which the Issuer will rely in purchasing the
Receivables and on which the Insurer will rely in issuing the Policy. Such
representations are made as of the execution and delivery of this Agreement, but
will survive the sale, transfer and assignment of the Receivables and the Other
Conveyed Property hereunder, and the sale, transfer and assignment thereof to
the Issuer under the Sale and Servicing Agreement.

                (a) Organization and Good Standing. Seller has been duly
        organized and is validly existing as a limited liability company in good
        standing under the laws of the State of Delaware, with power and
        authority to own its properties and to conduct its

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        business as such properties are currently owned and such business is
        currently conducted, and had at all relevant times, and now has, power,
        authority and legal right to acquire, own and sell the Receivables and
        the Other Conveyed Property to be transferred to the Issuer.

                (b) Due Qualification. Seller is duly qualified to do business
        as a foreign limited liability company in good standing, and has
        obtained all necessary licenses and approvals in all jurisdictions in
        which the ownership or lease of its property or the conduct of its
        business requires such qualification.

                (c) Power and Authority. Seller has the power and authority to
        execute and deliver this Agreement and its Related Documents and to
        carry out its terms and their terms, respectively; and the execution,
        delivery and performance of this Agreement and Seller's Related
        Documents have been duly authorized by Seller by all necessary action.

                (d) Valid Sale; Binding Obligations. This Agreement and Seller's
        Related Documents have been duly executed and delivered, and this
        Agreement and Seller's Related Documents constitute legal, valid and
        binding obligations of Seller enforceable in accordance with their
        respective terms, except as enforceability may be limited by bankruptcy,
        insolvency, reorganization or other similar laws affecting the
        enforcement of creditors' rights generally and by equitable limitations
        on the availability of specific remedies, regardless of whether such
        enforceability is considered in a proceeding in equity or at law.

                (e) No Violation. The consummation of the transactions
        contemplated by this Agreement and the Related Documents, and the
        fulfillment of the terms of this Agreement and the Related Documents,
        will not conflict with, result in any breach of any of the terms and
        provisions of, or constitute (with or without notice, lapse of time or
        both) a default under, the limited liability company agreement of
        Seller, or any indenture, agreement, mortgage, deed of trust or other
        instrument to which Seller is a party or by which it is bound, or result
        in the creation or imposition of any Lien upon any of its properties
        pursuant to the terms of any such indenture, agreement, mortgage, deed
        of trust or other instrument, other than this Agreement, the Sale and
        Servicing Agreement and the Indenture, or violate any law, order, rule
        or regulation applicable to Seller of any court or of any federal or
        state regulatory body, administrative agency or other governmental
        instrumentality having jurisdiction over Seller or any of its
        properties.

                (f) No Proceedings. There are no proceedings or investigations
        pending or, to Seller's knowledge, threatened against Seller, before any
        court, regulatory body, administrative agency or other tribunal or
        governmental instrumentality having jurisdiction over Seller or its
        properties (i) asserting the invalidity of this Agreement or any of the
        Related Documents, (ii) seeking to prevent the issuance of the Notes or
        the consummation of any of the transactions contemplated by this
        Agreement or any of the Related Documents, (iii) seeking any
        determination or ruling that might materially and adversely affect the
        performance by Seller of its obligations under, or the validity or
        enforceability of, this Agreement or any of the Related Documents or
        (iv) seeking to affect adversely the federal income tax or other
        federal, state or local tax characterization

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        of, or seeking to impose any excise, franchise, transfer or similar tax
        upon, the transfer and acquisition of the Receivables and the Other
        Conveyed Property hereunder or under the Sale and Servicing Agreement.

               In the event of any breach of a representation and warranty made
by Seller hereunder, Originator covenants and agrees that it will not take any
action to pursue any remedy that it may have hereunder, in law, in equity or
otherwise, until a year and a day have passed since the date on which all notes,
certificates, pass-through certificates or other similar securities issued by
Seller, or a trust or similar vehicle formed by Seller, have been paid in full.
Originator and Seller agree that damages will not be an adequate remedy for such
breach and that this covenant may be specifically enforced by Issuer or by the
Indenture Trustee on behalf of the Noteholders and Owner Trustee on behalf of
the Certificateholder.

                                   ARTICLE IV.

                               COVENANTS OF SELLER

               SECTION 4.1 Protection of Title of Seller.

                (a) At or prior to the Closing Date, Originator will have filed
        or caused to be filed UCC-1 financing statements, (i) naming Originator
        as seller or debtor and naming Seller as purchaser or secured party,
        (ii) naming Seller as seller or debtor and the Issuer as purchaser or
        secured party, and (iii) naming Issuer as debtor and Indenture Trustee
        as secured party and describing the Receivables and the Other Conveyed
        Property being transferred as collateral, in such locations as are
        required in order to perfect the transfers and pledges thereof under the
        Related Documents. From time to time thereafter, Originator will execute
        and file such financing statements and cause to be executed and filed
        such continuation statements, all in such manner and in such places as
        may be required by law fully to preserve, maintain and protect the
        interest of Seller under this Agreement, of the Issuer under the Sale
        and Servicing Agreement and of the Indenture Trustee under the Indenture
        in the Receivables and the Other Conveyed Property and in the proceeds
        thereof. Originator will deliver (or cause to be delivered) to Seller,
        the Indenture Trustee and the Insurer file-stamped copies of, or filing
        receipts for, any document filed as provided above, as soon as available
        following such filing. In the event that Originator fails to perform its
        obligations under this subsection, Seller, Issuer or the Indenture
        Trustee may do so, at the expense of such Originator. In furtherance of
        the foregoing, the Originator hereby authorizes the Seller, the Issuer
        or the Indenture Trustee to file a record or records (as defined in the
        applicable UCC), including financing statements, in all jurisdictions
        and with all filing offices as each may determine, in its sole
        discretion, are necessary or advisable to perfect the security interest
        granted to the Seller pursuant to Section 6.9. Such financing statements
        may describe the collateral in the same manner as described herein or
        may contain an indication or description of collateral that describes
        such property in any other manner as such party may determine, in its
        sole discretion, is necessary, advisable or prudent to ensure the
        perfection of the security interest in the collateral granted to the
        Seller herein.

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                (b) Originator will not change its name, identity, state of
        incorporation or corporate structure in any manner that would, could or
        might make any financing statement or continuation statement filed by
        Originator (or by Seller, Issuer or the Indenture Trustee on behalf of
        Originator) in accordance with Section 4.1(a) seriously misleading
        within the meaning of Section 9-506 of the applicable UCC, unless they
        will have given Seller, Issuer, Insurer and the Indenture Trustee at
        least 60 days' prior written notice thereof, and will promptly file
        appropriate amendments to all previously filed financing statements and
        continuation statements.

                (c) Originator shall at all times maintain each office from
        which it services Receivables and its principal executive office within
        the United States of America.

                (d) Prior to the Closing Date, Originator has maintained
        accounts and records as to each Receivable accurately and in sufficient
        detail to permit (i) the reader thereof to know at any time as of or
        prior to the Closing Date, the status of such Receivable, including
        payments and recoveries made and payments owing (and the nature of each)
        and (ii) reconciliation between payments or recoveries on (or with
        respect to) each Receivable and the Principal Balance as of the Closing
        Date. Originator will maintain its computer systems so that, from and
        after the time of transfer under this Agreement of the Receivables to
        Seller, the conveyance of the Receivables by Seller to the Issuer,
        Originator's master computer records (including archives) that will
        refer to a Receivable indicate clearly that such Receivable has been
        transferred to the Seller and has been conveyed by Seller to Issuer.
        Indication of the Issuer's ownership of a Receivable will be deleted
        from or modified on Originator's computer systems when, and only when,
        the Receivable will become a Purchased Receivable or will have been paid
        in full.

                (e) If at any time Originator proposes to sell, grant a security
        interest in, or otherwise transfer any interest in any motor vehicle
        receivables to any prospective purchaser, lender or other transferee,
        Originator will give to such prospective purchaser, lender or other
        transferee computer tapes, records or print-outs (including any restored
        from archives) that, if they refer in any manner whatsoever to any
        Receivable (other than a Purchased Receivable), will indicate clearly
        that such Receivable has been sold by the Originator and is owned by the
        Issuer.

               SECTION 4.2 Reserved.

               SECTION 4.3 Other Liens or Interests. Except for the conveyances
hereunder, Originator will not sell, pledge, assign or transfer to any other
Person or grant, create, incur, assume or suffer to exist any Lien on the
Receivables or the Other Conveyed Property or any interest herein and Seller
will not sell, pledge, assign or transfer to any other Person, or grant, create,
incur, assume or suffer to exist any Lien on the Receivables or the Other
Conveyed Property or any interest therein, and Originator will defend the right,
title, and interest of Seller and the Issuer in and to the Receivables and the
Other Conveyed Property against all claims of third parties claiming through or
under Originator and Seller will defend the right, title, and interest of the
Issuer in and to the Receivables and the Other Conveyed Property against all
claims of third parties claiming through or under Seller.

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               SECTION 4.4 Costs and Expenses. Each of Originator and Seller
will pay all reasonable costs and disbursements in connection with the
performance of its obligations hereunder and under its Related Documents.

               SECTION 4.5 Indemnification by Originator. (a) Originator will
defend, indemnify and hold harmless Seller, the Issuer, the Indenture Trustee,
the Backup Servicer, the Owner Trustee, the Noteholders and the Insurer from and
against any and all costs, expenses, losses, damages, claims, and liabilities,
arising out of or resulting from: (i) any breach of any of Originator's
representations and warranties contained herein, (ii) the use, ownership or
operation by Originator or any affiliate thereof of a Financed Vehicle, (iii)
any action taken, or failed to be taken, by it in respect of the Receivables
other than in accordance with this Agreement or the Sale and Servicing Agreement
or (iv) the negligence (except for errors in judgment), willful misfeasance, or
bad faith of Originator in the performance of its duties under this Agreement or
by reason of reckless disregard of Originator's obligations and duties under
this Agreement.

               (b) Originator will defend, indemnify and hold harmless the
Issuer, the Indenture Trustee, the Backup Servicer, the Owner Trustee, the
Noteholders and the Insurer from and against any and all costs, expenses,
losses, damages, claims, and liabilities, arising out of or resulting from any
Taxes which may at any time be asserted against such Persons with respect to (i)
the conveyance or ownership of the Receivables or the Other Conveyed Property
hereunder, (ii) the conveyance or ownership of the Receivables under the Sale
and Servicing Agreement and (iii) the issuance and original sale of the Notes
and the issuance of the Certificate, and costs and expenses in defending against
the same, arising by reason of the acts to be performed by Originator under this
Agreement or imposed against such Persons.

               Indemnification under this Section 4.5 will include reasonable
fees and expenses of counsel and expenses of litigation and will survive payment
of the Notes and the Certificate and termination of this Agreement. The
indemnity obligations hereunder will be in addition to any obligation that
Originator may otherwise have.

               SECTION 4.6 Indemnification by the Seller. (a) The Seller will
defend, indemnify and hold harmless the Originator, the Issuer, the Indenture
Trustee, the Backup Servicer, the Owner Trustee, the Noteholders and the Insurer
from and against any and all costs, expenses, losses, damages, claims, and
liabilities, arising out of or resulting from: (i) any breach of any of the
Seller's representations and warranties contained herein, (ii) the use,
ownership or operation by the Seller or any affiliate thereof of a Financed
Vehicle, (iii) any action taken, or failed to be taken, by it in respect of the
Receivables other than in accordance with this Agreement or the Sale and
Servicing Agreement or (iv) the negligence (except for errors in judgment),
willful misfeasance, or bad faith of the Seller in the performance of its duties
under this Agreement or by reason of reckless disregard of the Seller's
obligations and duties under this Agreement.

               (b) Seller will defend, indemnify and hold harmless the Issuer,
the Indenture Trustee, the Backup Servicer, the Owner Trustee, the Noteholders
and the Insurer from and against any and all costs, expenses, losses, damages,
claims, and liabilities, arising out of or resulting from any Taxes which may at
any time be asserted against such Persons with respect to the transactions
contemplated by this Agreement, including (i) the conveyance or ownership of

                                       9
<PAGE>

the Receivables or the Other Conveyed Property hereunder, (ii) the conveyance or
ownership of the Receivables under the Sale and Servicing Agreement and (iii)
the issuance and original sale of the Notes and the issuance of the Certificate,
and costs and expenses in defending against the same, arising by reason of the
acts to be performed by Seller under this Agreement or imposed against such
Persons.

               Indemnification under this Section 4.6 will include reasonable
fees and expenses of counsel and expenses of litigation and will survive payment
of the Notes and the Certificate and termination of this Agreement. The
indemnity obligations hereunder will be in addition to any obligation that the
Seller may otherwise have.

                                   ARTICLE V.

                                   REPURCHASES

               SECTION 5.1 Repurchase of Receivables Upon Breach of Warranty.
Upon the occurrence of a Repurchase Event, Originator will, unless the breach
which is the subject of such Repurchase Event will have been cured in all
material respects, repurchase the Receivable relating thereto from the Issuer
and, simultaneously with the repurchase of the Receivable, Originator will
deposit the Purchase Amount in full, without deduction or offset, to the
Collection Account, pursuant to Section 3.2 of the Sale and Servicing Agreement.
It is understood and agreed that, except as set forth in Section 6.1, the
obligation of Originator to repurchase any Receivable, as to which a breach
occurred and is continuing, will, if such obligation is fulfilled, constitute
the sole remedy against Originator for such breach available to Seller, the
Issuer, the Insurer, the Backup Servicer, the Noteholders, the
Certificateholder, the Indenture Trustee on behalf of the Noteholders or the
Owner Trustee on behalf of the Certificateholder. This Section 5.1 is intended
to grant the Issuer and the Indenture Trustee a direct right against Originator
to demand performance hereunder, and in connection therewith, Originator waives
any requirement of prior demand against Seller with respect to such repurchase
obligation. Any such repurchase will take place in the manner specified in
Section 3.2 of the Sale and Servicing Agreement. Notwithstanding any other
provision of this Agreement or the Sale and Servicing Agreement to the contrary,
the obligation of Originator under this Section 5.1 will not terminate upon a
termination of Originator as Servicer under the Sale and Servicing Agreement and
will be performed in accordance with the terms hereof notwithstanding the
failure of the Servicer or Seller to perform any of their respective obligations
with respect to such Receivable under the Sale and Servicing Agreement.

               In addition to the foregoing and notwithstanding whether the
related Receivable will have been purchased by Originator, Originator will
indemnify the Seller, the Issuer, the Indenture Trustee, the Backup Servicer,
the Owner Trustee, the Insurer, the Noteholders and the Certificateholder from
and against all costs, expenses, losses, damages, claims and liabilities,
including reasonable fees and expenses of counsel, which may be asserted against
or incurred by any of them as a result of third party claims arising out of the
events or facts giving rise to such Repurchase Events.

               SECTION 5.2 Reassignment of Purchased Receivables. Upon deposit
in the Collection Account of the Purchase Amount of any Receivable repurchased
by Originator under

                                       10
<PAGE>

Section 5.1, the Issuer will take such steps as may be reasonably requested by
Originator in order to assign to Originator all of the Issuer's right, title and
interest in and to such Receivable and all security and documents and all Other
Conveyed Property conveyed to the Issuer directly relating thereto, without
recourse, representation or warranty, except as to the absence of Liens created
by or arising as a result of actions of the Issuer. Such assignment will be a
sale and assignment outright, and not for security. If, following the
reassignment of a Purchased Receivable, in any enforcement suit or legal
proceeding, it is held that Originator may not enforce any such Receivable on
the ground that it will not be a real party in interest or a holder entitled to
enforce the Receivable, the Issuer will, at the expense of Originator, take such
steps as Originator deems reasonably necessary to enforce the Receivable,
including bringing suit in the Issuer's name.

               SECTION 5.3 Waivers. No failure or delay on the part of Seller,
or the Issuer as assignee of Seller, in exercising any power, right or remedy
under this Agreement will operate as a waiver thereof, nor will any single or
partial exercise of any such power, right or remedy preclude any other or future
exercise thereof or the exercise of any other power, right or remedy.

                                   ARTICLE VI.
                                  MISCELLANEOUS

               SECTION 6.1 Liability of Originator and Seller. Each of
Originator and Seller will be liable in accordance herewith only to the extent
of the obligations in this Agreement specifically undertaken by each of
Originator, and Seller, respectively and the representations and warranties of
each of Originator and Seller, respectively.

               SECTION 6.2 Merger or Consolidation of Originator or Seller. Any
corporation, limited liability company or other entity (i) into which Originator
or Seller may be merged or consolidated, (ii) resulting from any merger or
consolidation to which Originator or Seller is a party or (iii) succeeding to
the business of Originator or Seller, in the case of Seller, which corporation,
limited liability company or other entity has a certificate of incorporation or
limited liability company agreement containing provisions relating to
limitations on business and other matters substantively identical to those
contained in Seller's limited liability company agreement, provided that in any
of the foregoing cases such corporation or other entity will execute an
agreement of assumption to perform every obligation of Originator or Seller, as
the case may be, under this Agreement and, whether or not such assumption
agreement is executed, will be the successor to Originator or Seller, as the
case may be, hereunder (without relieving Originator or Seller of their
responsibilities hereunder, if it survives such merger or consolidation) without
the execution or filing of any document or any further action by any of the
parties to this Agreement. Notwithstanding the foregoing, so long as no Insurer
Default has occurred and is continuing, Seller will not merge or consolidate
with any other Person or permit any other Person to become the successor to
Seller's business without the prior written consent of the Insurer. Originator
or Seller will promptly inform the other parties, the Issuer, the Indenture
Trustee, the Owner Trustee and, so long as no Insurer Default has occurred and
is continuing, the Insurer, of such merger, consolidation or purchase and
assumption. Notwithstanding the foregoing, as a condition to the consummation of
the transactions referred to in clauses (i), (ii) and (iii) above, (x)
immediately after giving effect to such transaction, no representation or
warranty made pursuant to Sections 3.1 (other then subsection (f) thereof in
connection with a change in control as provided in the Insurance Agreement) and
3.2 will have

                                       11
<PAGE>

been breached (for purposes hereof, such representations and warranties will be
true and correct as of the date of the consummation of such transaction) and
with respect to a transaction involving the Seller, no event that, after notice
or lapse of time, or both, would become an event of default under the Insurance
Agreement, has occurred and is continuing, (y) with respect to a transaction
involving the Seller, Seller will have delivered written notice of such
consolidation, merger or purchase and assumption to the Rating Agencies prior to
the consummation of such transaction and will have delivered to the Issuer, the
Insurer and the Indenture Trustee an Officer's Certificate and an Opinion of
Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section 6.2 and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, and (z) Originator or Seller, as applicable, will have
delivered to the Issuer and the Indenture Trustee an Opinion of Counsel,
stating, in the opinion of such counsel, either (A) all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary to preserve and protect the interest of the Issuer and the
Indenture Trustee in the Receivables and reciting the details of the filings or
(B) no such action will be necessary to preserve and protect such interest.

               SECTION 6.3 Limitation on Liability of Originator, and Seller and
Others. Originator, and Seller and any director, officer, employee or agent
thereof may rely in good faith on the advice of counsel or on any document of
any kind prima facie properly executed and submitted by any Person respecting
any matters arising under this Agreement. Originator, or Seller will not be
under any obligation to appear in, prosecute or defend any legal action that is
not incidental to its obligations under this Agreement or its Related Documents
and that in its opinion may involve it in any expense or liability.

               SECTION 6.4 Originator May Own Notes or the Certificate. Subject
to the provisions of the Sale and Servicing Agreement, Originator and any
Affiliate of Originator may in their individual or any other capacity become the
owner or pledgee of Notes or the Certificate with the same rights as they would
have if they were not Originator or an Affiliate thereof.

               SECTION 6.5 Amendment.

                (a) This Agreement may be amended by Originator and Seller with
        the prior written consent of the Insurer (so long as no Insurer Default
        has occurred and is continuing) but without the consent of the Indenture
        Trustee, the Owner Trustee, the Certificateholder or any of the
        Noteholders (i) to cure any ambiguity or (ii) to correct any provisions
        in this Agreement; provided, however, that such action will not, as
        evidenced by an Opinion of Counsel delivered to the Issuer, the Owner
        Trustee and the Indenture Trustee, adversely affect in any material
        respect the interests of any Certificateholder or Noteholder.

                (b) This Agreement may also be amended from time to time by
        Originator, and Seller, with the prior written consent of the Insurer
        (so long as no Insurer Default has occurred and is continuing) and with
        the consent of the Indenture Trustee and, if required, the
        Certificateholder and the Noteholders, in accordance with the Sale and
        Servicing Agreement, for the purpose of adding any provisions to or
        changing in any manner or eliminating any of the provisions of this
        Agreement, or of modifying in any manner the

                                       12
<PAGE>

        rights of the Certificateholder or Noteholders; provided, however, the
        Originator provides the Indenture Trustee with an Opinion of Counsel,
        (which may be provided by the Originator's internal counsel) that no
        such amendment will increase or reduce in any manner the amount of, or
        accelerate or delay the timing of, collections of payments on
        Receivables or distributions that will be required to be made on any
        Note or Certificate.

               (c) Prior to the execution of any such amendment or consent,
        Originator will have furnished written notification of the substance of
        such amendment or consent to each Rating Agency.

               (d) It will not be necessary for the consent of Certificateholder
        or Noteholders pursuant to this Section 6.5 to approve the particular
        form of any proposed amendment or consent, but it will be sufficient if
        such consent will approve the substance thereof. The manner of obtaining
        such consents and of evidencing the authorization of the execution
        thereof by Certificateholder or Noteholders will be subject to such
        reasonable requirements as the Indenture Trustee may prescribe,
        including the establishment of record dates. The consent of a Holder of
        a Certificate or a Note given pursuant to this Section or pursuant to
        any other provision of this Agreement will be conclusive and binding on
        such Holder and on all future Holders of such Certificate or Note and of
        any Certificate or Note issued upon the transfer thereof or in exchange
        thereof or in lieu thereof whether or not notation of such consent is
        made upon the Certificate or Note.

               SECTION 6.6 Notices.

               All demands, notices and communications hereunder will be in
writing and will be deemed to have been duly given to the addressee if mailed,
by first-class registered mail, postage prepaid service, confirmed facsimile
transmission, or a nationally recognized express courier, as follows:

               If to the Originator:

                      Triad Financial Corporation
                      7711 Center Avenue
                      Suite 100
                      Huntington Beach, California 92647
                      Attention: Chief Financial Officer

               With a separate copy to:

                      Attention: Vice President, Legal

                                       13
<PAGE>

               If to the Seller:

                      Triad Financial Special Purpose LLC
                      7711 Center Avenue
                      Suite 390
                      Huntington Beach, California 92647
                      Attention: Chief Financial Officer

or such other address as will be designated by a party in a written notice
delivered to the other party or to the Issuer, Owner Trustee or the Indenture
Trustee, as applicable. Any such demand, notice or communication hereunder will
be deemed to have been received on the date delivered to or received at the
premises of the addressee as evidenced by the date noted on the return receipt.

               SECTION 6.7 Merger and Integration. Except as specifically stated
otherwise herein, this Agreement and Related Documents set forth the entire
understanding of the parties relating to the subject matter hereof, and all
prior understandings, written or oral, are superseded by this Agreement and the
Related Documents. This Agreement may not be modified, amended, waived or
supplemented except as provided herein.

               SECTION 6.8 Severability of Provisions. If any one or more of the
covenants, provisions or terms of this Agreement will be for any reason
whatsoever held invalid, then such covenants, provisions or terms will be deemed
severable from the remaining covenants, provisions or terms of this Agreement
and will in no way affect the validity or enforceability of the other provisions
of this Agreement.

               SECTION 6.9 Intention of the Parties.

                (a) The execution and delivery of this Agreement will constitute
        an acknowledgment by Originator and Seller that they intend that the
        assignments and transfers herein contemplated constitute sales and
        assignments outright, and not for security, of the Receivables and the
        Other Conveyed Property, conveying good title thereto free and clear of
        any Liens, from Originator to Seller and that the Receivables and the
        Other Conveyed Property will not be a part of Originator's estate in the
        event of the bankruptcy, reorganization, arrangement, insolvency or
        liquidation proceeding, or other proceeding under any federal or state
        bankruptcy or similar law, or the occurrence of another similar event,
        of, or with respect to Originator. If such conveyance is determined to
        be made as security for a loan made by Seller, the Issuer, the
        Noteholders or the Certificateholder to the Originator the parties
        intend that Originator will have granted to Seller a security interest
        in all of Originator's right, title and interest, respectively, in and
        to:

                      (1) the Receivables and all moneys received thereon after
        the applicable Cutoff Date,

                      (2) the Other Conveyed Property conveyed to Seller by
        Originator pursuant to this Agreement including (a) an assignment of the
        security interests in the Financed Vehicles granted by Obligors pursuant
        to the Receivables, and any other

                                       14
<PAGE>

        interest of the Seller in such Financed Vehicles, (b) any proceeds and
        the right to receive any proceeds with respect to the Receivables from
        claims on any physical damage, credit life or disability insurance
        policies covering Financed Vehicles or Obligors and any proceeds from
        the liquidation of the Receivables, (c) the right to cause the related
        Dealer or a Third-Party Lender to repurchase Receivables pursuant to a
        Dealer Agreement or an Auto Loan Purchase and Sale Agreement,
        respectively, as a result of the breach of representation or warranty in
        the related Dealer Agreement or Auto Loan Purchase and Sale Agreement,
        respectively, (d) all rights, if any, to refunds for the costs of any
        Service Contracts on the related Financed Vehicles, (e) the related
        Receivables Files and (f) the proceeds of any and all of the foregoing,
        and

                      (3) all proceeds and investments with respect to items (1)
        and (2) above.

                (b) This Agreement will constitute a security agreement under
        applicable law.

               SECTION 6.10 Governing Law. This Agreement will be construed in
accordance with the laws of the State of New York without regard to the
principles of conflicts of laws thereof and the obligations, rights and remedies
of the parties under this Agreement will be determined in accordance with such
laws.

               SECTION 6.11 Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts will be deemed to be an original, and all of which counterparts
will constitute but one and the same instrument.

               SECTION 6.12 Conveyance of the Receivables and the Other Conveyed
Property to the Issuer. Originator acknowledges that Seller intends, pursuant to
the Sale and Servicing Agreement, to convey the Receivables and the Other
Conveyed Property, together with its rights under this Agreement, to the Issuer
on the date hereof. Originator acknowledges and consents to such conveyance and
pledge and waives any further notice thereof and covenants and agrees that the
representations and warranties of Originator contained in this Agreement and the
rights of Seller hereunder are intended to benefit the Insurer, the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders and the Certificateholder.
In furtherance of the foregoing, Originator covenants and agrees to perform its
duties and obligations hereunder, in accordance with the terms hereof for the
benefit of the Insurer, the Issuer, the Owner Trustee, the Indenture Trustee,
the Noteholders and the Certificateholder and that, notwithstanding anything to
the contrary in this Agreement, Originator will be directly liable to the
Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholder (notwithstanding any failure by the Servicer, or the Backup
Servicer to perform its respective duties and obligations hereunder or under
Related Documents) and that the Indenture Trustee may enforce the duties and
obligations of Originator under this Agreement against Originator for the
benefit of the Insurer, the Owner Trustee, the Indenture Trustee, the
Noteholders and the Certificateholder.

               SECTION 6.13 Nonpetition Covenant. Originator will not petition
or otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Seller or the Issuer
under any federal or state

                                       15
<PAGE>

bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the
Seller or the Issuer or any substantial part of their respective property, or
ordering the winding up or liquidation of the affairs of the Seller or the
Issuer.

                                       16
<PAGE>

               IN WITNESS WHEREOF, the parties have caused this Purchase
Agreement to be duly executed by their respective officers as of the day and
year first above written.

                                       TRIAD FINANCIAL CORPORATION,
                                          as Originator

                                       By /s/ MIKE L. WILHELMS
                                         ---------------------------------------
                                          Name: Mike L. Wilhelms
                                          Title: Chief Financial Officer

                                       TRIAD FINANCIAL SPECIAL PURPOSE LLC,
                                          as Seller

                                       By /s/ MIKE L. WILHELMS
                                         ---------------------------------------
                                          Name: Mike L. Wilhelms
                                          Title: Chief Financial Officer

Accepted:

JPMORGAN CHASE BANK,
as Indenture Trustee

By /s/ THOMAS VENUSTI
  -------------------------------------
Name: Thomas Venusti
Title: Trust Officer

                              [Purchase Agreement]

<PAGE>

                                                                      SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                      [On File with Dewey Ballantine LLP]

<PAGE>

                                                                      SCHEDULE B

                         REPRESENTATIONS AND WARRANTIES
                                OF THE ORIGINATOR

        1. Characteristics of Receivables. Each Receivable (A) was originated
(i) by Triad, (ii) by a Dealer and purchased by Triad from such Dealer under an
existing Dealer Agreement or pursuant to a Dealer Assignment with Triad and was
validly assigned by such Dealer to Triad pursuant to a Dealer Assignment, or
(iii) by a Third-Party Lender and purchased by Triad from such Third-Party
Lender under an existing Auto Loan Purchase and Sale Agreement or pursuant to a
Third-Party Lender Assignment with Triad and was validly assigned by such
Third-Party Lender to Triad pursuant to a Third-Party Lender Assignment, (B) was
originated by Triad, such Dealer or such Third-Party Lender for the retail sale
of a Financed Vehicle in the ordinary course of Triad's, the Dealer's or the
Third-Party Lender's business, in each case, in accordance with Triad's credit
policies and was fully and properly executed by the parties thereto, and Triad,
each Dealer and each Third-Party Lender had all necessary licenses and permits
to originate Receivables in the state where Triad, each such Dealer or each such
Third-Party Lender was located, (C) contains customary and enforceable
provisions such that the rights and remedies of the holder thereof adequate for
realization against the collateral security, (D) is a Receivable which provides
for level monthly payments (provided that the period in the first Collection
Period and the payment in the final Collection Period of the Receivable may be
minimally different from the normal period and level payment) that, if made when
due, will fully amortize the Amount Financed over the original term and (E) has
not been amended or collections with respect to which waived, other than as
evidenced in the Receivable File relating thereto.

        2. Fraud or Misrepresentation. Each Receivable was originated (i) by
Triad, (ii) by a Dealer and was sold by the Dealer to Triad, or (iii) by a
Third-Party Lender and was sold by the Third-Party Lender to Triad, and was
transferred by Triad to the Seller and by the Seller to the Issuer without any
fraud or misrepresentation on the part of Triad, the Seller, such Dealer or
Third-Party Lender in any case.

        3. Compliance with Law. All requirements of applicable federal, state
and local laws, and regulations thereunder (including, without limitation, usury
laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection
Practices Act, the Federal Trade Commission Act, the Moss-Magnuson Warranty Act,
the Federal Reserve Board's Regulations "B" and "Z" (including amendments to the
Federal Reserve's Official Staff Commentary to Regulation Z, effective October
1, 1998, concerning negative equity loans), the Soldiers' and Sailors' Civil
Relief Act of 1940, each applicable state Motor Vehicle Retail Installment Sales
Act, and state adaptations of the National Consumer Act and of the Uniform
Consumer Credit Code and other consumer credit laws and equal credit opportunity
and disclosure laws) in respect of the Receivables and the Financed Vehicles,
have been complied with in all material respects, and each Receivable and the
sale of the Financed Vehicle evidenced by each Receivable complied at the time
it was originated or made and now complies in all material respects with all
applicable legal requirements.

<PAGE>

        4. Origination. Each Receivable was originated in the United States and
the related Obligor is a resident of the United States.

        5. Binding Obligation. Each Receivable represents the genuine, legal,
valid and binding payment obligation of the Obligor thereon, enforceable by the
holder thereof in accordance with its terms, except (A) as enforceability may be
limited by bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditors' rights generally and by equitable limitations on the
availability of specific remedies, regardless of whether such enforceability is
considered in a proceeding in equity or at law and (B) as such Receivable may be
modified by the application after the applicable Cutoff Date of the Soldiers'
and Sailors' Civil Relief Act of 1940, as amended; and all parties to each
Receivable had full legal capacity to execute and deliver such Receivable and
all other documents related thereto and to grant the security interest purported
to be granted thereby.

        6. No Government Obligor. No Obligor is the United States of America or
any State or any agency, department, subdivision or instrumentality thereof.

        7. Obligor Bankruptcy. At the related Cutoff Date no Obligor had been
identified on the records of Triad as being the subject of a current bankruptcy
proceeding.

        8. Schedule of Receivables. The information set forth in the Schedule of
Receivables has been produced from the Electronic Ledger and was true and
correct in all material respects as of the close of business on the related
Cutoff Date.

        9. Marking Records. By the Closing Date, as applicable, the Originator
will have caused the portions of the Electronic Ledger relating to the
Receivables to be clearly and unambiguously marked to show that the Receivables
have been sold to the Seller by the Originator and sold by the Seller to the
Issuer in accordance with the terms of the Sale and Servicing Agreement.

        10. Computer Tape. The Computer Tape made available by the Originator to
the Trust on the Closing Date, as applicable, was complete and accurate as of
the related Cutoff Date and includes a description of the same Receivables that
are described in the Schedule of Receivables.

        11. Adverse Selection. No selection procedures adverse to the
Noteholders or the Insurer were utilized in selecting the Receivables from those
receivables owned by the Originator which met the selection criteria contained
in the Sale and Servicing Agreement.

        12. Chattel Paper. The Receivables constitute chattel paper within the
meaning of the UCC as in effect in the States of California, New York and
Delaware.

        13. One Original. There is only one original executed copy of each
Receivable.

        14. Receivable Files Complete. There exists a Receivable File pertaining
to each Receivable and such Receivable File contains (a) a fully executed
original of the Receivable, (b) in the case of retail installment sale
contracts, the original executed credit application, or a paper or electronic
copy thereof and (c) the original Lien Certificate or application therefor. Each
of

                                    SCH B-2
<PAGE>

such documents which is required to be signed by the Obligor has been signed by
the Obligor in the appropriate spaces. All blanks on any form have been properly
filled in and each form has otherwise been correctly prepared. The complete
Receivable File for each Receivable currently is in the possession of the
Custodian or in the possession of a third-party vendor.

        15. Receivables in Force. No Receivable has been satisfied, subordinated
or rescinded, and the Financed Vehicle securing each such Receivable has not
been released from the lien of the related Receivable in whole or in part. No
terms of any Receivable have been waived, altered or modified in any respect
since its origination, except by instruments or documents identified in the
Receivable File. No Receivable has been modified as a result of application of
the Soldiers' and Sailors' Civil Relief Act of 1940, as amended. All funds
payable to or on behalf of the Obligors with respect to the Receivables have
been fully disbursed.

        16. Lawful Assignment; No Consent Required. No Receivable was originated
in, or is subject to the laws of, any jurisdiction the laws of which would make
unlawful, void or voidable the sale, transfer and assignment of such Receivable
and the Other Conveyed Property under this Agreement. For the validity of the
sale, transfer and assignment of the Receivables and Other Conveyed Property to
Triad, the Seller, and the Trust, no consent by any Dealer, Third-Party Lender
or Obligor is required under any agreement or applicable law.

        17. Good Title. No Receivable has been sold, transferred, assigned or
pledged by the Dealer or Third-Party Lender, Triad or the Seller, as the case
may be, to any Person other than Triad, the Seller and the Issuer, as the case
may be. Immediately prior to the conveyance of the Receivables to the Seller
pursuant to this Agreement, as applicable, the Originator was the sole owner
thereof and had good title thereto, free of any Lien and, upon execution and
delivery of this Agreement by the Originator and the Seller will have good title
to and will be the sole owner of such Receivables, free of any Lien. No Dealer
or Third-Party Lender has an unpaid participation in, or other right to receive,
proceeds of any Receivable. The Originator has not taken any action to convey
any right to any Person that would result in such Person having a right to
payments received under the related Insurance Policies or the related Dealer
Agreements, Auto Loan Purchase and Sale Agreements, Dealer Assignments or
Third-Party Lender Assignments or to payments due under such Receivables.

        18. Security Interest in Financed Vehicle. Each Receivable created or
will create a valid, binding and enforceable first priority security interest in
favor of the Originator in the Financed Vehicle. The Lien Certificate and
original certificate of title for each Financed Vehicle show, or if a new or
replacement Lien Certificate is being applied for with respect to such Financed
Vehicle the Lien Certificate will be received within 180 days of the Closing
Date, as applicable, and will show the Originator as the original secured party
under each Receivable as the holder of a first priority security interest in
such Financed Vehicle. With respect to each Receivable for which the Lien
Certificate has not yet been returned from the Registrar of Titles, the
Originator has applied for or received written evidence from the related Dealer
or Third-Party Lender that such Lien Certificate showing the Originator as first
lienholder has been applied for and the Originator's security interest has been
validly assigned by the Originator to the Seller pursuant to this Agreement and
by the Seller to the Trust pursuant to the Sale and Servicing Agreement.
Immediately after the sale, transfer and assignment thereof by the Originator to
the Seller and by the Seller to the Trust, each Receivable will be secured by an
enforceable and

                                    SCH B-3
<PAGE>

perfected first priority security interest in the Financed Vehicle in favor of
the Indenture Trustee as secured party, which security interest is prior to all
other Liens upon and security interests in such Financed Vehicle which now exist
or may hereafter arise or be created (except, as to priority, for any lien for
taxes, labor or materials affecting a Financed Vehicle). As of the related
Cutoff Date there were no Liens or claims for taxes, work, labor or materials
affecting a Financed Vehicle which are or may be Liens prior or equal to the
Liens of the related Receivable.

        19. All Filings Made. All filings (including, without limitation, UCC
filings) required to be made by any Person, and actions required to be taken or
performed by any Person in any jurisdiction to give the Trust a first priority
perfected lien on, or ownership interest in, the Receivables and the proceeds
thereof and the Other Conveyed Property have been made, taken or performed.

        20. No Impairment. The Originator has not done anything to convey any
right to any Person that would result in such Person having a right to payments
due under the Receivable or otherwise to impair the rights of the Trust, the
Insurer, the Indenture Trustee and the Noteholders in any Receivable or the
proceeds thereof.

        21. Receivable Not Assumable. No Receivable is assumable by another
Person in a manner which would release the Obligor thereof from such Obligor's
obligations to Triad with respect to such Receivable.

        22. No Defenses. No Receivable is subject to any right of rescission,
setoff, counterclaim or defense and no such right has been asserted or
threatened with respect to any Receivable.

        23. No Default. There has been no default, breach, violation or event
permitting acceleration under the terms of any Receivable (other than payment
delinquencies of not more than 30 days and other defaults that will not have a
material adverse effect on the ability of the Obligor to make, nor the
enforceability of Obligor's obligation to make, Scheduled Receivables Payments
and will not have a material adverse effect on the validity or priority of
Originator's lien on the Financed Vehicle), and no condition exists or event has
occurred and is continuing that with notice, the lapse of time or both would
constitute a default, breach, violation or event permitting acceleration under
the terms of any Receivable, and there has been no waiver of any of the
foregoing. As of the related Cutoff Date no Financed Vehicle had been
repossessed by or at the direction of the Originator.

        24. Insurance. At the time of an origination of a Receivable by Triad or
a purchase of a Receivable by Triad from a Dealer or Third-Party Lender, each
Financed Vehicle covered by a comprehensive and collision insurance policy (i)
subject to maximum deductibles of $500 for collision coverage and $500 for
comprehensive coverage, (ii) naming Triad as loss payee and (iii) insuring
against loss and damage due to fire, theft, transportation, collision and other
risks generally covered by comprehensive and collision coverage. Each Receivable
requires the Obligor to maintain physical loss and damage insurance, naming
Triad and its successors and assigns as additional insured parties, and each
Receivable permits the holder thereof to obtain physical loss and damage
insurance at the expense of the Obligor if the Obligor fails to do so.

                                    SCH B-4
<PAGE>

No Financed Vehicle is insured under a policy of force-placed insurance on the
related Cutoff Date.

        25. Past Due. At the related Cutoff Date no Scheduled Receivable Payment
was more than 30 days past due.

        26. Remaining Principal Balance. At the related Cutoff Date the
Principal Balance of each Receivable set forth in the Schedule of Receivables is
true and accurate in all material respects.

        27. Certain Characteristics of Receivables. (A) Each Receivable had a
remaining maturity, as of the Cutoff Date, of not more than 72 months; (B) each
Receivable had an original maturity of not more than 72 months; (C) not more
than 41% of Receivables (calculated by Aggregate Principal Balance) will have an
original term to maturity of 72 months; (D) each Receivable had a remaining
Principal Balance as of the Cutoff Date of at least $5,000 and not more than
$50,000; and (E) each Receivable has an Annual Percentage Rate of at least 11%
and not more than 30%.

                                    SCH B-5<PAGE>

                                                                     EXHIBIT 4.2

                         VERTICAL HEALTH SOLUTIONS, INC.

                     KASHNER DAVIDSON SECURITIES CORPORATION

                                  UNDERWRITER'S

                                WARRANT AGREEMENT

                  UNDERWRITER'S WARRANT AGREEMENT dated as of _________, 2002 by
and between VERTICAL HEALTH SOLUTIONS, INC. (the "Company") and KASHNER DAVIDSON
SECURITIES CORPORATION ("Underwriter" or "Kashner")

                              W I T N E S S E T H:
                              -------------------

         WHEREAS, the Company proposes to issue to the Underwriter 160,000
warrants (each an "Underwriter's Warrant") each to purchase a Unit, each Unit
consisting of one share of the Company's common stock, par value $.001 per share
(the "Common Stock") and one warrant to purchase one share of Common Stock (the
"Public Warrants").

         WHEREAS, the Underwriter has agreed, pursuant to the underwriting
agreement (the "Underwriting Agreement") dated ______, 2002, by and between the
Underwriter and the Company, to act as the Underwriter in connection with the
Company's proposed public offering (the "Public Offering") of 1,600,000 units
(the "Offering Securities"); and

         WHEREAS, the Underwriter's Warrants to be issued pursuant to this
Agreement will be issued on the Closing Date (as such term is defined in the
Underwriting Agreement) by the Company to the Underwriter in consideration for,
and as part of, the Underwriter's compensation in connection with the
Underwriter acting as the Underwriter pursuant to the Underwriting Agreement;

         NOW, THEREFORE, in consideration of the premises, the payment by the
Underwriter to the Company of Ten Dollars ($10.00), the agreements herein set
forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         1.       Grant. The Holder (as defined in Section 3 below) is hereby
                  -----
granted the right to purchase, at any time from _________, 2003 until 5:00 p.m.,
New York time, _______, 2007, up to 160,000 Units at an initial purchase price
(subject to adjustment as provided in Section 8 hereof) of $8.25 per Unit (165%
of the per unit public offering price), subject to the terms and conditions of
this Agreement. The securities issuable, upon exercise of the Underwriter's
Warrant are sometimes referred to herein as the "Underwriter's Securities."

         2.       Warrant Certificates. The warrant certificate (the
                  --------------------
"Underwriter's Warrant Certificate") to be delivered pursuant to this Agreement
shall be in the form set forth in Exhibit A attached hereto and made a part
hereof, with such appropriate insertions, omissions, substitutions, and other
variations as required or permitted by this Agreement.

<PAGE>

         3.       Exercise of Underwriter's Warrant.
                  ---------------------------------

                  (a) The Underwriter's Warrant is exercisable during the term
set forth in Section 1 hereof payable by certified or cashier's check or money
order in lawful money of the United States. Upon surrender of Underwriters'
Warrant Certificate with the annexed Form of Election to Purchase duly executed,
together with payment of the Purchase Price (as hereinafter defined) for the
Underwriter's Securities (and such other amounts, if any, arising pursuant to
Section 4 hereof) at the Company's principal office currently located at 6925
112th Circle North Suite 102, Largo, Florida 33773 the registered holder of a
Underwriter's Warrant Certificate ("Holder" or "Holders") shall be entitled to
receive a certificate or certificates for the Underwriter's Securities so
purchased. The purchase rights represented by each Underwriter's Warrant
Certificate are exercisable at the option of the Holder or Holders thereof, in
whole or in part as to Underwriter's Securities. The Underwriter's Warrant may
be exercised to purchase all or any part of the Underwriter's Securities
represented thereby. In the case of the purchase of less than all the
Underwriters' Securities purchasable on the exercise of the Underwriters'
Warrant represented by a Underwriters' Warrant Certificate, the Company shall
cancel the Underwriters' Warrant Certificate represented thereby upon the
surrender thereof and shall execute and deliver a new Underwriters' Warrant
Certificate of like tenor for the balance of the Underwriters' Securities
purchasable thereunder.

                  (b) In lieu of the payment of cash upon exercise of the
Underwriters' Warrant as provided in Section 3(a), the Holder may exercise the
Underwriters' Warrant by surrendering the Underwriters' Warrant Certificate at
the principal office of the Company, accompanied by a notice stating (i) the
Holder's intent to effect such exercise by an exchange, (ii) Common Stock to be
issued upon the exchange, (iii) whether Underwriters' Warrants are to be
surrendered in connection with the exchange, and (iv) the date on which the
Holder requests that such exchange is to occur. The Purchase Price for the
Underwriters' Securities to be acquired in the exchange shall be paid by the
surrender as indicated in the notice, of Underwriters' Warrants, having a
"Value", as defined below, equal to the Purchase Price. "Value" as to each
Underwriters' Warrant shall mean the difference between the "Market Price", as
hereinafter defined, of a share of Common Stock and a Public Warrant and the
then Purchase Price for a Unit.

                  By way of example of the application of the formula, assume
that the Market Price of the Common Stock is $7.00 and the Market Price of a
public warrant is $1.00, the Purchase Price of the Underwriters' Warrant is
$6.00. On such assumptions, the Value of a Underwriters' Warrant is $2.00
($8.00-$6.00) and therefore for each three Underwriters' Warrants surrendered,
the Holder could acquire one share of Common Stock in the exchange.
Notwithstanding the example, the Holder shall not be limited to exchanging
Underwriters' Warrants for Common Stock or Warrants.

         The Warrant Exchange shall take place on the date specified in the
notice or if the date the notice is received by the Company is later than the
date specified in the notice, on the date the notice is received by the Company.

         4.       Issuance of Certificates. Upon the exercise of the
                  ------------------------
Underwriters' Warrant and payment of the Purchase Price therefor, the issuance
of certificates representing the Underwriters' Securities or other securities,
properties or rights underlying such Underwriters'

<PAGE>

Warrant, shall be made forthwith (and in any event within five (5) business days
thereafter) without further charge to the Holder thereof, and such certificates
shall (subject to the provisions of Sections 5 and 7 hereof) be issued in the
name of, or in such names as may be directed by, the Holder thereof; provided,
however, that the Company shall not be required to pay any tax which may be
payable in respect of any transfer involved in the issuance and delivery of any
such certificates in a name other than that of the Holder, and the Company shall
not be required to issue or deliver such certificates unless or until the person
or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid. The Underwriters' Warrant Certificates and the
certificates representing the Underwriters' Securities or other securities,
property or rights (if such property or rights are represented by certificates)
shall be executed on behalf of the Company by the manual or facsimile signature
of the then present Chairman or Vice Chairman of the Board of Directors or
President or Vice President of the Company, attested to by the manual or
facsimile signature of the then present Secretary or Assistant Secretary or
Treasurer or Assistant Treasurer of the Company. The Underwriters' Warrant
Certificates shall be dated the date of issuance thereof by the Company upon
initial issuance, transfer or exchange.

         5.       Restriction On Transfer of Underwriters' Warrant. The Holder
                  ------------------------------------------------
of an Underwriters' Warrant Certificate (and its Permitted Transferee, as
defined below), by its acceptance thereof, covenants and agrees that the
Underwriters' Warrant may be sold, transferred, assigned, hypothecated or
otherwise disposed of, in whole or in part, until _______, 2003 (one year
following the effective date of the Public Offering), only to officers and
partners of the Underwriters, or any Public Offering selling group member and
their respective officers and partners, ("Permitted Transferees"). Thereafter
the Underwriters' Warrant may be transferred, assigned, hypothecated or
otherwise disposed of in compliance with applicable law.

         6.       Purchase Price.
                  --------------

                  (a) Initial and Adjusted Purchase Price. Except as otherwise
                      -----------------------------------
provided in Section 8 hereof, the initial purchase price of the Underwriters'
Securities shall be $8.25 per Unit (165% of the per Unit public offering price).
The adjusted purchase price shall be the price which shall result from time to
time from any and all adjustments of the initial purchase price in accordance
with the provisions of Section 8 hereof.

                  (b) Purchase Price. The term "Purchase Price" herein shall
                      --------------
mean the initial purchase price or the adjusted purchase price, depending upon
the context.

         7.       Registration Rights.
                  -------------------

                  (a) Registration Under the Securities Act of 1933 as amended
                      --------------------------------------------------------
("Act"). The Underwriters' Warrant may have not been registered under the Act.
-------
The Underwriters' Warrant Certificates may bear the following legend:

                  "The securities represented by this certificate have not been
registered under the

<PAGE>

Securities Act of 1933 (the "Act"), and may not be offered for sale or sold
except pursuant to (i) an effective registration statement under the Act, or
(ii) an opinion of counsel, if such opinion and counsel shall be reasonably
satisfactory to counsel to the issuer, that an exemption from registration under
the Act is available".

                  (b) Demand Registration.   (1) At any time commencing on the
                      -------------------
first anniversary of and expiring on the fifth anniversary of the effective date
of the Company's Registration Statement relating to the Public Offering (the
"Effective Date"), the Holders of a Majority (as hereinafter defined) in
interest of the Underwriters' Warrant, or the Majority in interest of the
Underwriters' Securities (assuming the exercise of all of the Underwriters'
Warrant) shall have the right, exercisable by written notice to the Company, to
have the Company prepare and file with the U.S. Securities and Exchange
Commission (the "Commission"), on one (1) occasion, a registration statement on
Form SB-2, S-1 or other appropriate form, and such other documents, including a
prospectus, as may be necessary in the opinion of both counsel for the Company
and counsel for the Holders, in order to comply with the provisions of the Act,
so as to permit a public offering and sale, of the Underwriters' Securities by
such Holders and any other Holders of the Underwriters' Warrant and/or the
Underwriters' Securities who notify the Company within fifteen (15) business
days after receipt of the notice described in Section 7(b)(2). The Holders of
the Underwriters' Warrant may demand registration prior to exercising the
Underwriters' Warrant, and may pay such exercise price from the proceeds of such
public offering.

         (2) The Company covenants and agrees to give written notice of any
registration request under this Section 7(b) by any Holders to all other
registered Holders of the Underwriters' Warrant and the Underwriters' Securities
within ten (10) calendar days from the date of the receipt of any such
registration request.

         (3) For purposes of this Agreement, the term "Majority" in reference to
the Holders of the Underwriters' Warrant or Underwriters' Securities, shall mean
in excess of fifty percent (50%) of the then outstanding Underwriters' Warrant
or Underwriters' Securities that (i) are not held by the Company, an affiliate,
officer, creditor, employee or agent thereof or any of their respective
affiliates, members of their family, persons acting as nominees or in
conjunction therewith, or (ii) have not been resold to the public pursuant to a
registration statement filed with the Commission under the Act.

                  (c) Piggyback Registration. (1) If, at any time within the
                      ----------------------
period commencing on the first anniversary and expiring on the sixth anniversary
of the Effective Date, the Company should file a registration statement with the
Commission under the Act (other than in connection with a merger or other
business combination transaction or pursuant to Form S-8), it will give written
notice at least twenty (20) calendar days prior to the filing of each such
registration statement to the Underwriter and to all other Holders of the
Underwriters' Warrant and/or the Underwriters' Securities of its intention to do
so. If an Underwriter or other Holders of the Underwriters' Warrant and/or the
Underwriters' Securities notify the Company within fifteen (15) calendar days
after receipt of any such notice of its or their desire to include any

<PAGE>

Underwriters' Securities in such proposed registration statement, the Company
shall afford the Underwriter and such Holders of the Underwriters' Warrant
and/or Underwriters' Securities the opportunity to have any such Underwriters'
Securities registered under such registration statement. Notwithstanding the
provisions of this Section 7(c)(1) and the provisions of Section 7(d), the
Company shall have the right at any time after it shall have given written
notice pursuant to this Section 7(c)(1) (irrespective of whether a written
request for inclusion of any such securities shall have been made) to elect not
to file any such proposed registration statement, or to withdraw the same after
the filing but prior to the effective date thereof.

                  (2)  If the managing underwriter of an offering to which the
above piggyback rights apply, in good faith and for valid business reasons,
objects to such rights, such objection shall preclude such inclusion.

                  (d)  Covenants of the Company With Respect to Registration.
                       -----------------------------------------------------
In connection with any registrations under Sections 7(b) and 7(c) hereof, the
Company covenants and agrees as follows:

                       (1)  The Company shall use its best efforts to file a
registration statement within thirty (30) calendar days of receipt of any demand
therefor pursuant to Section 7(b); provided, however, that the Company shall not
be required to produce audited or unaudited financial statements for any period
prior to the date such financial statements are required to be filed in a report
on Form 10-KSB or Form 10-QSB, as the case may be. The Company shall use its
best efforts to have any registration statement declared effective at the
earliest possible time, and shall furnish each Holder desiring to sell
Underwriters' Securities such number of prospectuses as shall reasonably be
requested.

                       (2)  The Company shall pay all costs (excluding fees and
expenses of Holders' counsel and any underwriting discounts or selling fees,
expenses or commissions), fees and expenses in connection with any registration
statement filed pursuant to Sections 7(b) and 7(c) hereof including, without
limitation, the Company's legal and accounting fees, printing expenses, blue sky
fees and expenses.

                       (3)  The Company will use its best efforts to qualify or
register the Underwriters' Securities included in a registration statement for
offering and sale under the securities or blue sky laws of such states as
reasonably are requested by the Holders, provided that the Company shall not be
obligated to execute or file any general consent to service of process or to
qualify as a foreign corporation to do business under the laws of any such
jurisdiction.

                       (4)  The Company shall indemnify the Holders of the
Underwriters' Securities to be sold pursuant to any registration statement and
each person, if any, who controls such Holders within the meaning of Section 15
of the Act or Section 20(a) of the Securities Exchange Act of 1934 (the
"Exchange Act"), against all loss, claim, damage, expense or liability
(including all expenses reasonably incurred in investigating, preparing or
defending

<PAGE>

against any claim whatsoever) to which any of them may become subject under the
Act, the Exchange Act or otherwise, arising from such registration statement,
but only to the same extent and with the same effect as the provisions pursuant
to which the Company has agreed to indemnify the Underwriter contained in
Section 8 of the Underwriting Agreement.

                       (5)  The Holders of the Underwriters' Securities to be
sold pursuant to a registration statement, and their successors and assigns,
shall indemnify the Company, its officers and directors and each person, if any,
who controls the Company within the meaning of Section 15 of the Act or Section
20(a) of the Exchange Act, against all loss, claim, damage or expense or
liability to which they may become subject under the Act, the Exchange Act or
otherwise, arising from information furnished by or on behalf of such Holders,
or their successors or assigns, for specific inclusion in such registration
statement to the same extent and with the same effect as the provisions
contained in Section 8 of the Underwriting Agreement pursuant to which the
Underwriter has agreed to indemnify the Company.

                       (6)  Nothing contained in this Agreement shall be
construed as requiring the Holders to exercise their Underwriters' Warrant prior
to the initial filing of any registration statement or the effectiveness
thereof, provided that such Holders have made arrangements reasonably
satisfactory to the Company to pay the exercise price from the proceeds of such
offering.

                       (7)  The Company shall furnish to each Underwriter for
the offering, if any, such documents as such Underwriter may reasonably require.

                       (8)  The Company shall as soon as practicable after the
effective date of the registration statement, and in any event within 15 months
thereafter, make "generally available to its security holders" (within the
meaning of Rule 158 under the Act) an earnings statement (which need not be
audited) complying with Section 11(a) of the Act and covering a period of at
least 12 consecutive months beginning after the effective date of the
registration statement.

                       (9)  The Company shall deliver promptly to each Holder
participating in the offering requesting the correspondence described below and
any managing Underwriter copies of all correspondence between the Commission and
the Company, its counsel or auditors with respect to the registration statement
and permit each Holder and Underwriter to do such investigation, upon reasonable
advance notice, with respect to information contained in or omitted from the
registration statement as it deems reasonably necessary to comply with
applicable securities laws or rules of the National Association of Securities
Dealers, Inc. ("NASD"). Such investigation shall include access to books,
records and properties and opportunities to discuss the business of the Company
with its officers and independent auditors, all to such reasonable extent and at
such reasonable times and as often as any such Holder shall reasonably request.

                       (10) The Company shall enter into an underwriting
agreement with the managing underwriter selected for such underwriting by
Holders holding a Majority of

<PAGE>

the Underwriters' Securities requested to be included in such underwriting,
provided, however that such managing underwriter shall be reasonably acceptable
to the Company, except that in connection with an offering for which the Holders
have piggyback rights, the Company shall have the sole right to select the
managing underwriter or underwriters. Such underwriting agreement shall be
satisfactory in form and substance to the Company, a Majority of such Holders
(in respect of a registration under Section 7(b) only) and such managing
underwriter, and shall contain such representations, warranties and covenants by
the Company and such other terms as are customarily contained in agreements of
that type. The Holders shall be parties to any underwriting agreement relating
to an underwritten sale of their Underwriters' Securities. Such Holders shall
not be required to make any representations or warranties to or agreements with
the Company or the underwriters except as they may relate to such Holders and
their intended methods of distribution.

         8.       Adjustments to Purchase Price and Number of Securities.
                  ------------------------------------------------------

                  (a)  Computation of Adjusted Purchase Price.  Except as
                       --------------------------------------
hereinafter provided, in case the Company shall at any time after the date
hereof issue or sell any shares of Common Stock (other than the issuances
referred to in Section 8(g) hereof), including shares held in the Company's
treasury, for a consideration per share less than the "Market Price" (as defined
in Section 8(a)(6) hereof) per share of Common Stock on the date immediately
prior to the issuance or sale of such shares, or without consideration, then
forthwith upon any such issuance or sale, the Purchase Price of the Common Stock
shall (until another such issuance or sale) be reduced to the price (calculated
to the nearest full cent) determined by dividing (1) the product of (a) the
Purchase Price in effect immediately before such issuance or sale and (b) the
sum of (i) the total number of shares of Common Stock outstanding immediately
prior to such issuance or sale, and (ii) the number of shares determined by
dividing (A) the aggregate consideration, if any, received by the Company upon
such sale or issuance, by (B) the Market Price, and by (2) the total number of
shares of Common Stock outstanding immediately after such issuance or sale
provided, however, that in no event shall the Purchase Price be adjusted
pursuant to this computation to an amount in excess of the Purchase Price in
effect immediately prior to such computation, except in the case of a
combination of outstanding shares of Common Stock, as provided by Section 8(c)
hereof.

         For the purposes of this Section 8, the term "Purchase Price" shall
mean the Purchase Price of the Common Stock forming a part of the Underwriters'
Securities set forth in Section 6 hereof, as adjusted from time to time pursuant
to the provisions of this Section 8.

         For the purposes of any computation to be made in accordance with this
Section 8(a), the following provisions shall be applicable:

     (1) In case of the issuance or sale of shares of Common Stock (or of
other securities deemed hereunder to involve the issuance or sale of shares of
Common Stock) for a consideration part or all of which shall be cash, the amount
of the cash consideration therefor

<PAGE>

shall be deemed to be the amount of cash received by the Company for such shares
(or, if shares of Common Stock are offered by the Company for subscription, the
subscription price, or, if such securities shall be sold to Underwriters or
dealers for public offering without a subscription offering, the initial public
offering price) before deducting therefrom any compensation paid or discount
allowed in the sale, underwriting or purchase thereof by Underwriters or dealers
or others performing similar services, or any expenses incurred in connection
therewith.

     (2) In case of the issuance or sale (otherwise than as a dividend or other
distribution on any stock of the Company, and otherwise than on the exercise of
options, rights or warrants or the conversion or exchange of convertible or
exchangeable securities) of shares of Common Stock (or of other securities
deemed hereunder to involve the issuance or sale of shares of Common Stock) for
a consideration part or all of which shall be other than cash, the amount of the
consideration therefor other than cash shall be deemed to be the value of such
consideration as determined in good faith by the Board of Directors of the
Company.

     (3) Shares of Common Stock issuable by way of dividend or other
distribution on any stock of the Company shall be deemed to have been issued
immediately after the opening of business on the day following the record date
for the determination of stockholders entitled to receive such dividend or other
distribution and shall be deemed to have been issued without consideration.

     (4) The reclassification of securities of the Company other than shares
of Common Stock into securities including shares of Common Stock shall be deemed
to involve the issuance of such shares of Common Stock for a consideration other
than cash immediately prior to the close of business on the date fixed for the
determination of security holders entitled to receive such shares, and the value
of the consideration allocable to such shares of Common Stock shall be
determined as provided in Section 8(a)(2).

     (5) The number of shares of Common Stock at any one time outstanding shall
include the aggregate number of shares of Common Stock issued or issuable
(subject to readjustment upon the actual issuance thereof) upon the exercise of
options, rights or warrants and upon the conversion or exchange of convertible
or exchangeable securities.

     (6) As used herein in the phrase "Market Price" at any date shall be
deemed to be the last reported sale price, or, in the case no such reported sale
takes place on such day, the average of the last reported sales prices for the
last three (3) trading days, in either case as officially reported by the
principal securities exchange on which the Common Stock is listed or admitted to
trading, or, if the Common Stock is not listed or admitted to trading on any
national securities exchange, the average closing bid price as furnished by the
NASD through the NASD Automated Quotation System ("NASDAQ") or similar
organization if NASDAQ is no longer reporting such information, or if the Common
Stock is not quoted on NASDAQ, as determined in good faith by resolution of the
Board of Directors of the Company, based on the best information available to
it.

                  (b) Options, Rights, Warrant and Convertible and Exchangeable
                      ---------------------------------------------------------

<PAGE>

Securities. Except in the case of the Company issuing rights to subscribe for
----------
shares of Common Stock distributed to all the stockholders of the Company and
Holders of Underwriters' Warrant pursuant to Section 8(i) hereof, if the Company
shall at any time after the date hereof issue options, rights or warrants to
purchase shares of Common Stock, or issue any securities convertible into or
exchangeable for shares of Common Stock (other than the issuances referred to in
Section 8(g) hereof), (i) for a consideration per share less than the Market
Price (including the issuance thereof without consideration such as by way of
dividend or other distribution), or (ii) without consideration, the Purchase
Price in effect immediately prior to the issuance of such options, rights or
warrants, or such convertible or exchangeable securities, as the case may be,
shall be reduced to a price determined by making a computation in accordance
with the provisions of Section 8(a) hereof, provided that:

                       (1)  The aggregate maximum number of shares of Common
Stock issuable or that may become issuable under such options, rights or
warrants (assuming exercise in full even if not then currently exercisable or
currently exercisable in full) shall be deemed to be issued and outstanding at
the time such options, rights or warrants were issued, and for a consideration
equal to the minimum purchase price per share provided for in such options,
rights or warrants at the time of issuance, plus the consideration (determined
in the same manner as consideration received on the issue or sale of shares in
accordance with the terms of the Underwriters' Warrant), if any, received by the
Company for such options, rights or warrants; provided, however, that upon the
expiration or other termination of such options, rights or warrants, if any
thereof shall not have been exercised, the number of shares of Common Stock
deemed to be issued and outstanding pursuant to this Section 8(b)(1) (and for
the purposes of Section 8(a)(5) hereof) shall be reduced by such number of
shares as to which options, warrants and/or rights shall have expired or
terminated unexercised, and such number of shares shall no longer be deemed to
be issued and outstanding, and the Purchase Price then in effect shall forthwith
be readjusted and thereafter be the price which it would have been had
adjustment been made on the basis of the issuance only of shares actually issued
or issuable upon the exercise of those options, rights or warrants as to which
the exercise rights shall not be expired or terminated unexercised.

                       (2)  The aggregate maximum number of shares of Common
Stock issuable upon conversion or exchange of any convertible or exchangeable
securities (assuming conversion or exchange in full even if not then currently
convertible or exchangeable in full) shall be deemed to be issued and
outstanding at the time of issuance of such securities, and for a consideration
equal to the consideration (determined in the same manner as consideration
received on the issue or sale of shares of Common Stock in accordance with the
terms of the Underwriters' Warrant) received by the Company for such securities,
plus the minimum consideration, if any, receivable by the Company upon the
conversion or exchange thereof; provided, however, that upon the expiration or
other termination of the right to convert or exchange such convertible or
exchangeable securities (whether by reason or redemption or otherwise), the
number of shares deemed to be issued and outstanding pursuant to this Section
8(b)(2) (and for the purpose of Section 8(a)(5) hereof) shall be reduced by such
number of shares as to which the conversion or exchange rights shall have
expired or terminated unexercised, and

<PAGE>

such number of shares shall no longer be deemed to be issued and outstanding and
the Purchase Price then in effect shall forthwith be readjusted and thereafter
be the price which it would have been had adjustment been made on the basis of
the issuance only of the shares actually issued or issuable upon the conversion
or exchange of those convertible or exchangeable securities as to which the
conversion or exchange rights shall not have expired or terminated unexercised.

                       (3)  If any change shall occur in the price per share
provided for in any of the options, rights or warrants referred to in Section
8(b)(1), or in the price per share at which the securities referred to in
Section 8(b)(2) are convertible or exchangeable, and if a change in the Purchase
Price has not occurred by reason of the event giving rise to the change in the
price per share of such other options, rights, warrants, or convertible or
exchangeable securities, such options, rights or warrants or conversion or
exchange rights, as the case may be, to the extent not theretofore exercised,
the shall be deemed to have expired or terminated on the date when such price
change became effective in respect of shares not theretofore issued pursuant to
the exercise or conversion or exchange thereof, and the Company shall be deemed
to have issued upon such date new options, rights or warrants or convertible or
exchangeable securities at the new price in respect of the number of shares
issuable upon the exercise of such options, rights or warrants or the conversion
or exchange of such convertible or exchangeable securities.

                  (c)  Subdivision and Combination. In case the Company shall
                       ---------------------------
at any time issue any shares of Common Stock in connection with a stock dividend
in shares of Common Stock or subdivide or combine the outstanding shares of
Common Stock, the Purchase Price shall forthwith be proportionately decreased in
the case of a stock dividend or a subdivision or increased in the case of
combination.

                  (d)  Adjustment in Number of Securities. Upon each adjustment
                       ----------------------------------
of the Purchase Price pursuant to the provisions of this Section 8, the number
of Underwriters' Securities issuable upon the exercise of the Underwriters'
Warrant shall be adjusted to the nearest whole share by multiplying a number
equal to the Purchase Price in effect immediately prior to such adjustment by
the number of Underwriters' Securities issuable upon exercise of the
Underwriters' Warrant immediately prior to such adjustment and dividing the
product so obtained by the adjusted Purchase Price.

                  (e)  Definition of Common Stock. For the purpose of this
                       --------------------------
Agreement, the term "Common Stock" shall mean the class of stock designated as
Common Stock in the Certificate of Incorporation, of the Company as it may be
amended as of the date hereof.

                  (f)  Reclassification, Merger or Consolidation.  The Company
                       -----------------------------------------
will not merge, reorganize or take any other action which would terminate the
Underwriters' Warrant without first making adequate provision for the
Underwriters' Warrant. In case of any reclassification or change of the
outstanding shares of Common Stock issuable upon exercise of the outstanding
warrants (other than a change in par value to no par value, or from nor par
value to par value, or as a result of a subdivision or combination), or in case
of any consolidation of the

<PAGE>

Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger in which the Company
is the continuing corporation and which does not result in any reclassification
or change of the outstanding Common Stock except a change as a result of a
subdivision or combination of such shares or a change in par value, as
aforesaid), or in the case of a sale or conveyance to another corporation or
other entity of the property of the Company as an entirety or substantially as
an entirety, the Holders of each Underwriters' Warrant then outstanding or to be
outstanding shall have the right thereafter (until the expiration of such
Underwriters' Warrant) to purchase, upon exercise of such Underwriters' Warrant,
the kind and number of shares of stock and other securities and property
receivable upon such reclassification, change, consolidation, merger, sale or
conveyance as if the Holders were the owner of the shares of Common Stock
underlying the Underwriters' Warrant immediately prior to any such events at a
price equal to the product of (x) the number of shares issuable upon exercise of
the Underwriters' Warrant and (y) the Purchase Price in effect immediately prior
to the record date for such reclassification, change, consolidation, merger,
sale or conveyance, as if such Holders had exercised the Underwriters' Warrant.
In the event of a consolidation, merger, sale or conveyance of property, the
corporation formed by such consolidation or merger, or acquiring such property,
shall execute and deliver to the Holders a supplemental Underwriters' warrant
agreement to such effect. Such supplemental Underwriters' warrant agreement
shall provide for adjustments which shall be identical to the adjustment
provided for in this Section 8. The provisions of this Section 8(f) shall
similarly apply to successive consolidations or mergers.

                  (g)  No Adjustment of Purchase Price in Certain Cases.  No
                       ------------------------------------------------
adjustment of the Purchase Price shall be made:

                      (1)  Upon the issuance or sale of (i) the Underwriters'
Warrant or the securities underlying the Underwriters' Warrant, (ii) the
securities sold pursuant to the Public Offering (including those sold upon
exercise of the Underwriters' over-allotment option), or (iii) the shares
issuable pursuant to the options, warrants, rights, stock purchase agreements or
convertible or exchangeable securities outstanding or in effect on the date
hereof as described in the prospectus relating to the Public Offering.

                      (2)  If the amount of said adjustments shall aggregate
less than two ($.02) cents for one (1) share of Common Stock; provided, however,
that in such case any adjustment that would otherwise be required then to be
made shall be carried forward and shall be made at the time of and together with
the next subsequent adjustment which, together with any adjustment so carried
forward, shall aggregate at least two ($.02) cents for one (1) share of Common
Stock. In addition, Registered Holders shall not be entitled to cash dividends
paid by the Company prior to the exercise of any warrant or warrants held by
them.

         9.       Exchange and Replacement of Warrant Certificates.  Each
                  ------------------------------------------------
Underwriters' Warrant Certificate is exchangeable without expense, upon the
surrender thereof by the registered Holders at the principal executive office of
the Company, for a new Underwriters' Warrant Certificate of like tenor and date
representing in the aggregate the right to purchase the

<PAGE>

same number of Underwriters' Securities in such denominations as shall be
designated by the Holders thereof at the time of such surrender.

         10.      Loss, Theft etc. of Certificates.  Upon receipt by the
                  --------------------------------
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of any Underwriters' Warrant Certificate, and, in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory
to it, and reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of the Underwriters' Warrant
Certificates, if mutilated, the Company will make and deliver a new
Underwriters' Warrant Certificate of like tenor, in lieu thereof.

         11.      Elimination of Fractional Interests. The Company shall not
                  -----------------------------------
be required to issue certificates representing fractions of shares of Common
Stock upon the exercise of the Underwriters' Warrant, nor shall it be required
to issue scrip or pay cash in lieu of fractional interests; provided, however,
that if a Holder exercises all Underwriters' Warrant held of record by such
Holder the fractional interests shall be eliminated by rounding any fraction to
the nearest whole number of shares of Common Stock or other securities,
properties or rights.

         12.      Reservation and Listing of Securities. The Company shall
                  -------------------------------------
at all times reserve and keep available out of its authorized shares of Common
Stock, solely for the purpose of issuance upon the exercise of the Underwriters'
Warrant, such number of shares of Common Stock or other securities and
properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of Underwriters' Warrant and payment of
the Purchase Price therefor, all the shares of Common Stock issuable upon such
exercise shall be duly and validly issued, fully paid, non-assessable and not
subject to the preemptive rights of any stockholder. As long as the
Underwriters' Warrant shall be outstanding, the Company shall use its best
efforts to cause the Common Stock to be listed (subject to official notice of
issuance) on all securities exchanges on which the Common Stock issued to the
public in connection herewith may then be listed or quoted.

         13.      Notices to Underwriters' Warrant Holders. Nothing contained
                  ----------------------------------------
in this Agreement shall be construed as conferring upon the Holders the right to
vote or to consent or to receive notice as a stockholder in respect of any
meetings of stockholders for the election of directors or any other matter, or
as having any rights whatsoever as a stockholder of the Company. If, however, at
any time prior to the expiration of the Underwriters' Warrant and their
exercise, any of the following events shall occur:

                  (a)  the Company shall take a record of the holders of its
shares of Common Stock for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or
distribution payable otherwise than out of current or retained earnings, as
indicated by the accounting treatment of such dividend or distribution on the
books of the Company; or

                  (b)  the Company shall offer to all the holders of its Common
Stock

<PAGE>

any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option,
right or warrant to subscribe therefor; or

                  (c)  a dissolution, liquidation or winding up of the Company
(other than in connection with a consolidation or merger) or a sale of all or
substantially all of its property, assets and business as an entirety shall be
proposed; then, in any one or more of said events, the Company shall give
written notice of such event at least fifteen (15) calendar days prior to the
date fixed as a record date or the date of closing the transfer books for the
determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to
vote on such proposed dissolution, liquidation, winding up or sale. Such notice
shall specify such record date or the date of closing the transfer books, as the
case may be. Failure to give such notice or any defect therein shall not affect
the validity of any action taken in connection with the declaration or payment
of any such dividend, or the issuance of any convertible or exchangeable
securities, or subscription rights, options or warrants, or any proposed
dissolution, liquidation, winding up or sale.

         14.      Notices.  All notices, requests, consents and other
                  -------
communications hereunder shall be in writing and shall be deemed to have been
duly made when delivered, or five days after being mailed by registered or
certified mail, return receipt requested: If to the registered Holders of the
Underwriters' Warrant, to the address of such Holders as shown on the books of
the Company; or

                  (a)  If to the Company to 6925 112th Circle North Suite 102,
Largo, Florida 33773 or to such other address as the Company may designate by
notice to the Holders.

         15.      Supplements and Amendments. The Company and the Underwriter
                  --------------------------
may from time to time supplement or amend this Agreement without the approval of
any Holders of Underwriters' Warrant Certificates (other than the Underwriters)
in order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any provisions herein, or to
make any other provision in regard to matters or questions arising hereunder
which the Company and the Underwriters may deem necessary or desirable and which
the Company and the Underwriters deem shall not adversely affect the interests
of the Holders of Underwriters' Warrant Certificates.

         16.      Successors.  All the covenants and provisions of this
                  ----------
Agreement shall be binding upon and inure to the benefit of the Company, the
Underwriter, the Holders and their respective successors and assigns hereunder.

         17.      Termination.  This Agreement shall terminate at the close of
                  -----------
business on _______, 2007. Notwithstanding the foregoing, the indemnification
provisions of Section 7 shall survive such termination until the close of
business on the expiration of any applicable statue of limitations.

<PAGE>

         18.      Governing Law; Submission to Jurisdiction. This Agreement
                  -----------------------------------------
and each Underwriters' Warrant Certificate issued hereunder shall be deemed to
be a contract made under the laws of the State of New York and for all purposes
shall be construed in accordance with the laws of said state without giving
effect to the rules of said state governing the conflicts of laws.

         19.      Entire Agreement; Modification. This Agreement (including
                  ------------------------------
the Underwriting Agreement, to the extent portions thereof are referred to
herein) contains the entire understanding between the parties hereto with
respect to the subject matter hereof and thereof. This Agreement may not be
modified or amended except by a writing duly signed by the Company and the
Holders of a Majority in Interest of the Underwriters' Securities (for this
purpose, treating all then outstanding Underwriters' Warrants as if they had
been exercised).

         20.      Severability.  If any provision of this Agreement shall be
                  ------------
held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision of this Agreement.

         21.      Captions.   The caption headings of the Sections of this
                  --------
Agreement are for convenience of reference only and are not intended, nor should
they be construed as, a part of this Agreement and shall be given no substantive
effect.

         22.      Benefits of this Agreement. Nothing in this Agreement shall be
                  --------------------------
construed to give to any person or corporation other than the Company and the
Underwriter and any other registered Holders of the Underwriters' Warrant
Certificates or Underwriters' Securities any legal or equitable right, remedy or
claim under this Agreement; and this Agreement shall be for the sole and
exclusive benefit of the Company and the Underwriter and any other Holders of
the Underwriters' Warrant Certificates or Underwriters' Securities.

         23.      Counterparts.  This Agreement may be executed in any number
                  ------------
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and such counterparts shall together constitute but one and
the same instrument.

         24.      Binding Effect.  This Agreement shall be binding upon and
                  --------------
inure to the benefit of the Company, the Underwriters and their respective
successors and assigns and the Holders from time to time of the Underwriters'
Warrant Certificates or any of them.

                          [Signature on following page]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed, as of the day and year first above written.

                                           VERTICAL HEALTH SOLUTIONS, INC.

                                           By:
                                              ---------------------------------
                                              Name: Stephen Watters

                                           KASHNER DAVIDSON SECURITIES CORP.,

                                           By:
                                              ---------------------------------
                                              Name: Matthew Miester
                                              Title: CEO

<PAGE>

                                   Schedule A

                                       to

                         Underwriters' Warrant Agreement

                                     Between

                         VERTICAL HEALTH SOLUTIONS, INC.

                     KASHNER DAVIDSON SECURITIES CORPORATION

                                   Underwriter

Kashner Davidson Securities Corp.

<PAGE>

                         VERTICAL HEALTH SOLUTIONS, INC.
                         -------------------------------

                               WARRANT CERTIFICATE

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "ACT"), AND MAY NOT BE OFFERED FOR SALE OR SOLD
EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, OR
(ii) AN OPINION OF COUNSEL, IF SUCH OPINION AND COUNSEL SHALL BE REASONABLY
SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER
THE ACT IS AVAILABLE.

THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

                EXERCISABLE COMMENCING ___________, 2003 THROUGH
                  5:00 P.M., NEW YORK TIME ON __________, 2007

                                         Warrant covering 160,000 units

No. UW-1

                  This Warrant Certificate certifies that Kashner Davidson
Securities Corp. or registered assigns, is the registered holder of this Warrant
to purchase initially, at any time from _________, 2003, until 5:00 p.m., New
York time on ________, 2007 (the "Expiration Date"), up to 160,000 Units, each
Unit consisting of one share of Common Stock, $.001 par value (the "Common
Stock") of Vertical Health Solutions, Inc. ("Company") and one warrant to
purchase common stock at $6.25 per share, at a purchase price of $8.25 per Unit
(165% of the per share public offering price) (the "Purchase Price"), upon the
surrender of this Warrant Certificate and payment of the applicable Purchase
Price at an office or agency of the Company, but subject to the conditions set
forth herein and in the Underwriters' Warrant Agreement, dated as of ________,
2002, by and between the Company and Kashner Davidson Securities Corp. (the
"Warrant Agreement"). Payment of the Purchase Price shall be made by certified
or cashier's check or money order payable to the order of the Company or through
a cashless exercise by surrending the Warrant Certificate pursuant to the
Underwriter Agreement.

                  No Warrant may be exercised after 5:00 p.m., New York time, on
the Expiration Date, at which time all Warrant evidenced hereby, unless
exercised prior thereto, shall thereafter be void.

                  The Warrant evidenced by this Warrant Certificate is part of a
duly authorized issue of Warrants issued pursuant to the Warrant Agreement
between the Company and the

<PAGE>

Underwriter, which Warrant Agreement is hereby incorporated by reference in and
made a part of this instrument and is hereby referred to for a description of
the rights, limitation of rights, obligations, duties and immunities thereunder
of the Company and the holders (the words "holders" or "holder" meaning the
registered holders or registered holder) of the Warrant.

                  The Warrant Agreement provides that upon the occurrence of
certain events the Purchase Price and the type and/or number of the Company's
securities issuable upon the exercise of this Warrant, may, subject to certain
conditions, be adjusted. In such event, the Company will, at the request of the
holder, issue a new Warrant Certificate evidencing the adjustment in the
Purchase Price and the number and/or type of securities issuable upon the
exercise of the Warrant; provided, however, that the failure of the Company to
issue such new Warrant Certificates shall not in any way change, alter, or
otherwise impair, the rights of the holder as set forth in the Warrant
Agreement.

                  Upon due presentment for registration of transfer of this
Warrant Certificate at an office or agency of the Company, a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrant shall be issued to the transferee(s) in
exchange as provided herein, without any charge except for any tax or other
governmental charge imposed in connection with such transfer.

                  Upon the exercise of less than all of the Warrants evidenced
by this Certificate, the Company shall forthwith issue to the holder hereof a
new Warrant Certificate representing such number of unexercised Warrants.

                  The Company may deem and treat the registered holder(s) hereof
as the absolute owner(s) of this Warrant Certificate (notwithstanding any
notation of ownership or other writing hereon made by anyone), for the purpose
of any exercise hereof, and of any distribution to the holder(s) hereof, and for
all other purposes, and the Company shall not be affected by any notice to the
contrary.

                  All terms used in this Warrant Certificate which are defined
in the Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.

                  IN WITNESS WHEREOF, the undersigned has executed this
certificate this ___ day of _____, 2002.

                                       Vertical Health Solutions, Inc.

                                       By:
                                          -------------------------------
                                           Stephen Watters
                                           CEO

ATTEST:

By:
   ------------------------------

<PAGE>

                               FORM OF ASSIGNMENT
             (To be executed by the registered holder if such holder
                  desires to transfer the Warrant Certificate.)

                  FOR VALUE RECEIVED___________________________
hereby sells, assigns and transfers unto _____________________

                  (Please print name and address of transferee)

this Warrant Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint _____________________
Attorney, to transfer the within Warrant Certificate on the books of Vertical
Health Solutions, Inc. with full power of substitution.

Dated:
      --------------------

                                       Signature
                                                 ------------------------------

                                       (Signature must conform in all respects
to the name of holder as specified on the face of the Warrant Certificate.)

[Signature guarantee]
                                               --------------------------------
                                               (Insert Social Security or Other
                                                Identifying Number of Holders)

<PAGE>

                          FORM OF ELECTION TO PURCHASE

The undersigned hereby irrevocably elects to exercise the right, represented by
this Warrant Certificate, to purchase ______ units and herewith tenders in
payment for such securities a certified or cashier's check or money order
payable to the order of Vertical Health Solutions, Inc. in the amount of
$______, all in accordance with the terms hereof. The undersigned requests that
certificates for such securities be registered in the name of
___________________________ whose address is _____________________ and that such
certificates be delivered to _____________________________________ whose address
is __________________________________________________________.

Dated:

Signature
          ----------------------------------

(Signature must conform in all respects to the name of holder as specified on
the face of the Warrant Certificate.)

(Insert Social Security or Other
Identifying Number of Holders)

[Signature guarantee]

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