Document:

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                                                                     EXHIBIT 4.1

                                TABLE OF CONTENTS

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                                                                                                                  PAGE
<S>     <C>                                                                                                       <C>
PRELIMINARY STATEMENT............................................................................................   1

ARTICLE 1   DESIGNATION..........................................................................................   1

         Section 2.1        Incorporation of Schedule 1, etc.....................................................   3
         Section 2.2        Defined Terms........................................................................   3

ARTICLE 3   SECURITY; REPORTS; COVENANT..........................................................................  35

         Section 3.1        Grant of Security Interest...........................................................  35
         Section 3.2        Reports..............................................................................  37

ARTICLE 4   INITIAL ISSUANCE AND INCREASES AND DECREASES OF
            SERIES 2002-1 INVESTED AMOUNT OF SERIES 2002-1 NOTE..................................................  38

         Section 4.1        Issuance in Definitive Form..........................................................  38
         Section 4.2        Procedure for Increasing the Invested Amount.........................................  38
         Section 4.3        Decreases............................................................................  40

ARTICLE 5   SERIES 2002-1 ALLOCATIONS............................................................................  41

         Section 5.1        Establishment of the Group IV Collection Account, Series 2002-1
                            Collection Account, Series 2002-1 Accrued Interest Account,
                            Series 2002-1 Excess Funding Account.................................................  41
         Section 5.2        Allocations with Respect to the Series 2002-1 Note...................................  42
         Section 5.3        Withdrawals from the Series 2002-1 Accrued Interest Account..........................  47
         Section 5.4        Payment of Note Interest and Carrying Charges........................................  49
         Section 5.5        Payment of Note Principal; Transfers to Budget Distribution Account..................  49
         Section 5.6        Servicer's or Budget's Failure to Make a Deposit or Payment..........................  51
         Section 5.7        Series 2002-1 Distribution Account...................................................  51
         Section 5.8        Draw on Letter of Credit.............................................................  52
         Section 5.9        Draw on the Demand Note..............................................................  53
         Section 5.10       Series 2002-1 Cash Collateral Account................................................  54

ARTICLE 6   AMORTIZATION EVENTS..................................................................................  56

         Section 6.1        Amortization Events..................................................................  56

ARTICLE 7   GENERAL..............................................................................................  58

Exhibit A         Form of Series 2002-1 Note
Exhibit B         List of Approved Manufacturers
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         Series 2002-1 Supplement, dated as of August 6, 2002 (as amended,
supplemented or otherwise modified from time to time in accordance with the
terms hereof and of the Base Indenture referred to below, this "Supplement"),
among Team Fleet Financing Corporation, a Delaware corporation ("TFFC" or the
"Issuer"), Budget Group, Inc. ("Budget"), a Delaware corporation formerly known
as Team Rental Group, Inc. ("Team"), as the Servicer (in such capacity, the
"Servicer"), Budget, as the holder of the Budget Interest (in such capacity, the
"Budget Interestholder") and Deutsche Bank Trust Company Americas, a banking
corporation organized and existing under the laws of the State of New York, as
Trustee (the "Trustee") under the Amended and Restated Base Indenture, dated as
of December 1, 1996, among TFFC, Team and the Trustee (as amended, supplemented
or otherwise modified from time to time, exclusive of Supplements creating a new
Series of Notes, the "Base Indenture" and, together with the Series 2002-1
Supplement, the "Indenture").

                              PRELIMINARY STATEMENT

         WHEREAS, the Base Indenture provides, among other things, that TFFC,
the Servicer and the Trustee may at any time and from time to time enter into a
supplement to the Base Indenture for the purpose of authorizing the issuance of
one or more Series of Notes.

              NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE 1

                                   DESIGNATION

         (a) There is hereby created a Series of Notes to be issued in one class
pursuant to the Base Indenture and this Supplement and such Series of Notes (as
defined below) shall be designated generally as the Variable Funding Rental Car
Asset Backed Note, Series 2002-1 and is referred to as the "Series 2002-1 Note."

         (b) The proceeds from the sale of and Increases in respect of the
Series 2002-1 Note shall be deposited in the Series 2002-1 Collection Account,
and such proceeds shall be available to TFFC and used (i) on and after the
Series 2002-1 Issuance Date, to finance the acquisition by the Issuer and the
Lessees of Financed Vehicles manufactured by certain Eligible Manufacturers and
Eligible Receivables and (ii) on and after the Series 2002-1 Issuance Date, to
acquire Lessor-Owned Vehicles manufactured by certain Eligible Manufacturers.

         (c) The Series 2002-1 Note is a Segregated Series of Notes (as more
fully described in the Base Indenture) and is hereby designated as a "Group IV
Series of Notes". Accordingly, the Series 2002-1 Note (and each other Group IV
Series of Notes) shall be secured solely by the Group IV Collateral and any
other collateral designated as security for the Series 2002-1 Note (and, as
applicable, any other Group IV Series of Notes) under this Supplement or any
other Supplement and will not be secured by any

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other collateral. The Issuer may from time to time issue additional Segregated
Series of Notes that the related Series Supplements will indicate are entitled
to share, together with the Series 2002-1 Note, the Group IV Collateral and any
other collateral designated as security for the Group IV Series of Notes under
this Supplement or any other related Series Supplement (the Series 2002-1 Note
and any such additional Segregated Series, each, a "Group IV Series of Notes"
and, collectively, the "Group IV Series of Notes"). Accordingly, all references
in this Supplement to "all" Series of Notes, and all references in this
Supplement to terms defined in the Base Indenture that contain references to
"all" Series of Notes, shall, unless the context otherwise requires, refer
solely to all Group IV Series of Notes.

         (d) If, notwithstanding the provisions of clause (c) above, the Series
2002-1 Note is deemed by any court to be secured by collateral other than the
Group IV Collateral and any other collateral designated as security for the
Series 2002-1 Note (and, as applicable, any other Series of Group IV Notes)
under this Supplement or any other Group IV Supplement ("Non-Group IV
Collateral"), then the interest of the Series 2002-1 Noteholders in such
Non-Group IV Collateral shall be subordinate in all respects to the interest of
the Noteholders of the Series (or the Trustee on behalf of the Noteholders of
the Series) to which such Non-Group IV Collateral was pledged by the terms of
the Indenture. The following shall govern the interpretation and construction of
the provisions of this Supplement: (i) this Supplement is intended to constitute
a subordination agreement under New York law and for purposes of Section 510(a)
of the Bankruptcy Code, (ii) the subordination provided for in this Supplement
is intended to and shall be deemed to constitute a "complete subordination"
under New York law, and, as such, shall be applicable whether or not the Issuer
or any Series 2002-1 Noteholder is a debtor in a case (a "bankruptcy case")
under the Bankruptcy Code (or any amended or successor version thereof), (iii)
(A) any reference to the Series 2002-1 Note shall include all obligations of the
Issuer now or hereafter existing under each such Series 2002-1 Note, whether for
principal, interest, fees, expenses or otherwise, and (B) without limiting the
generality of the foregoing, "interest" owing on the Series 2002-1 Note shall
expressly include any and all interest accruing after the commencement of any
bankruptcy case or other insolvency proceeding where the Issuer is the debtor,
notwithstanding any provision or rule of law (including, without limitation, 11
U.S.C. ss.ss. 502, 506(b) (1994) (or any amended or successor version thereof))
that might restrict the rights of any holder of an interest in the Series 2002-1
Note, as against the Issuer or any one else, to collect such interest, (iv)
"payments" prohibited under the subordination provisions of this Supplement
shall include any distributions of any type, whether cash, other debt
instruments, or any equity instruments, regardless of the source thereof, and
(v) the holder of any interest in the Series 2002-1 Note retains such holder's
right, under 11 U.S.C. ss. 1126 (1994) (or any amended or successor version
thereof), to vote to accept or reject any plan of reorganization proposed for
the Issuer, the Group IV Lessees or Budget in any subsequent bankruptcy of the
Issuer, the Group IV Lessees or Budget; provided, however, that, regardless of
any such vote or of the exercise of any other rights such holder (or its agents)
may have under the Bankruptcy Code, and without limiting the generality of the
other clauses of this clause (d), any distributions that such holder is to

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receive on account of such holder's interest in the Series 2002-1 Note under any
such plan of reorganization, from the Issuer, the Group IV Lessees or Budget,
from any collateral, from any guarantor, or from any other source shall be
subordinated in right of payment as set forth herein and shall instead be
distributed in the order of priority set forth herein.

                                    ARTICLE 2

                                   DEFINITIONS

         Section 2.1 Incorporation of Schedule 1, etc. All capitalized terms not
otherwise defined herein shall have the meaning set forth therefor in Schedule 1
to the Base Indenture, as amended, supplemented or otherwise modified from time
to time in accordance with the terms of the Base Indenture. All Article, Section
or Subsection references herein shall refer to Articles, Sections or Subsections
of the Base Indenture, except as otherwise provided herein. Unless otherwise
stated herein, as the context otherwise requires or if such term is otherwise
defined in the Base Indenture, each capitalized term used or defined herein
shall relate only to the Series 2002-1 Note and not to any other Series of Notes
issued by TFFC.

         Section 2.2 Defined Terms. The following words and phrases, unless
otherwise defined in the Series 2002-1 Note Purchase Agreement, shall have the
following meanings with respect to the Series 2002-1 Note and the definitions of
such terms are applicable to the singular as well as the plural form of such
terms and to the masculine as well as the feminine and neuter genders of such
terms:

         "Accounts" means the Collection Account, the Group IV Collection
Account, the Series 2002-1 Collection Account, the Series 2002-1 Distribution
Account, the Series 2002-1 Excess Funding Account and each collection account
for each other Group IV Series of Notes and, if established, the Series 2002-1
Cash Collateral Account.

         "Accrued Amounts" means, with respect to any Group IV Series of Notes
(or any class of such Series of Notes), on any date of determination, the sum of
(i) accrued and unpaid interest on the Notes of such Series of Notes (or the
applicable class thereof), (ii) the portion of the accrued and unpaid Monthly
Servicing Fee (and any Supplemental Servicing Fee) allocated to such Series of
Notes (or the applicable class thereof) pursuant to the Indenture on such date,
and (iii) the product of (A) all other accrued and unpaid fees and expenses of
the Issuer on such date, and (B) a fraction, the numerator of which is the
Invested Amount of such Series of Notes (or the applicable class thereof) on
such date and the denominator of which is the aggregate Invested Amount of all
Series of Notes including non-segregated Series of Notes) on such date.

         "Additional Distribution Date" has the meaning specified in Section
5.3(b)(ii).

         "Additional Fees" means, with respect to any Series 2002-1 Interest
Period, the aggregate amount of fees, if any, under the Note Purchase Agreement
then in effect

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which have accrued during such Series 2002-1 Interest Period and which are
payable by TFFC in respect of the Series 2002-1 Note, in each case solely to the
extent such fees are not included in the calculation of the Series 2002-1 Note
Rate for any Series 2002-1 Interest Period.

         "Additional Overcollateralization Amount" means, as of any date of
determination, an amount equal to (a) the Overcollateralization Portion on such
date divided by 85% (or a higher percentage upon Rating Agency Confirmation)
minus (b) the Overcollateralization Portion as of such date. Notwithstanding the
foregoing, the percentage referred to in clause (a) of the preceding sentence
shall be decreased as follows: (x) to 84% if the DB MTN Engagement has not
occurred on or before December 31, 2002; (y) to 83.5% on March 1, 2003; and (z)
to 82% on April 1, 2003.

         "Advance" has the meaning specified in the Series 2002-1 Note Purchase
Agreement.

         "Agent" means Deutsche Bank AG, New York Branch and its permitted
successors and/or assigns.

         "Aggregate Asset Amount" means, with respect to the Group IV Series of
Notes, for any date of determination, the sum, rounded to the nearest $100,000,
of (i) the Aggregate Group IV Type I Repurchase Asset Amount, (ii) the Aggregate
Group IV Type II Repurchase Asset Amount, (iii) the Aggregate Group IV
Non-Repurchase Vehicle Asset Amount and (iv) cash and Permitted Investments on
deposit in the Collection Account and Group IV Collection Account allocable to
the Group IV Series of Notes.

         "Aggregate Group IV Non-Repurchase Asset Amount" means, for any date of
determination, the sum, rounded to the nearest $100,000, of (i) the lesser of
(a) the Net Book Value of all Group IV Non-Repurchase Vehicles that are Eligible
Vehicles leased as of such date under the Group IV Master Lease and (b) the
Group IV Non-Repurchase Fleet Market Value for Group IV Vehicles that are
Eligible Vehicles leased as of such date under the Group IV Master Lease, plus
(ii) all Auction Receivables due with respect to the disposition of Group IV
Non-Repurchase Vehicles as of such date with respect to Group IV Non-Repurchase
Vehicles, other than any such amounts which have become Group IV Non-Repurchase
Losses, plus (iii) with respect to any Group IV Non-Repurchase Vehicles that
have been sold, any accrued and unpaid payments of Monthly Base Rent, Monthly
Supplemental Payments and Additional Base Rent under the Group IV Master Lease
with respect to such Group IV Non-Repurchase Vehicles (net of amounts set forth
in clause (ii) above), other than any such amounts which have become Group IV
Non-Repurchase Losses.

         "Aggregate Group IV Type I Repurchase Asset Amount" means, for any date
of determination, the sum (without duplication), rounded to the nearest
$100,000, of (i) the Net Book Value of all Group IV Type I Repurchase Vehicles
that are Eligible Vehicles leased under the Group IV Master Lease as of such
date and not turned in to the

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Manufacturer thereof pursuant to its Repurchase Program or not otherwise sold
for purposes of the Group IV Master Lease under the Related Documents, plus (ii)
all amounts receivable as of such date from Manufacturers under Repurchase
Programs with respect to Group IV Type I Repurchase Vehicles turned in to such
Manufacturers pursuant to any such Repurchase Program or delivered to an
authorized auction, pursuant to any Repurchase Program, other than any such
amounts which have become Group IV Type I Repurchase Losses, plus (iii) all
Auction Receivables due with respect to the disposition of Group IV Type I
Repurchase Vehicles as of such date from any Auction Dealer with respect to
Group IV Type I Repurchase Vehicles, other than any such amounts which have
become Group IV Type I Repurchase Losses, plus (iv) with regard to Group IV Type
I Repurchase Vehicles that have been turned in to the Manufacturer or otherwise
sold, any accrued and unpaid Monthly Base Rent, Monthly Supplemental Payments
and Additional Base Rent under the Group IV Master Lease with respect to such
Group IV Type I Repurchase Vehicles (net of amounts set forth in clauses (ii),
and (iii) above), other than any such amounts which have become Group IV Type I
Repurchase Losses.

         "Aggregate Group IV Type II Repurchase Asset Amount" means, for any
date of determination, the sum (without duplication), rounded to the nearest
$100,000, of (i) the lesser of (a) the Net Book Value of all Group IV Type II
Repurchase Vehicles that are Eligible Vehicles leased as of such date under the
Group IV Master Lease and not turned in to the Manufacturer thereof pursuant to
its Repurchase Program or not otherwise sold for purposes of the Group IV Master
Lease under the Related Documents and (b) the Group IV Type II Repurchase Fleet
Market Value for Group IV Vehicles that are Eligible Vehicles leased as of such
date under the Group IV Master Lease and not turned in to the Manufacturer
thereof pursuant to its Repurchase Program or not otherwise sold or deemed to be
sold under the Related Documents, plus (ii) all amounts receivable as of such
date from Manufacturers under Repurchase Programs with respect to Group IV Type
II Repurchase Vehicles turned in to such Manufacturers pursuant to any such
Repurchase Program or delivered to an authorized auction, pursuant to any
Repurchase Program, other than any such amounts which have become Group IV Type
II Repurchase Losses, plus (iii) all Auction Receivables due with respect to the
disposition of Group IV Type II Repurchase Vehicles as of such date from any
Auction Dealer with respect to Group IV Repurchase Vehicles, other than any such
amounts which have become Losses, plus (iv) with regard to Group IV Type II
Repurchase Vehicles that have been turned in to the Manufacturer or otherwise
sold, any accrued and unpaid Base Rent and Monthly Supplemental Payments under
the Group IV Master Lease with respect to such Group IV Type II Repurchase
Vehicles (net of amounts set forth in clauses (ii), and (iii) above), other than
any such amounts which have become Group IV Type II Repurchase Losses.

         "Aggregate Principal Balance" means, for any date of determination,
with respect to any Group IV Series of Notes, the aggregate unpaid principal
amount of such Group IV Series of Notes as of such date (without giving effect
to any reduction thereof ordered by a court in any insolvency or other similar
proceeding, including, without limitation, by reason of any cram-down, rejection
or other action).

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         "Amortization Commencement Date" means the date on which the Series
2002-1 Rapid Amortization Period commences.

         "Asset Amount Deficiency" with respect to the Series 2002-1 Note will
occur if, at any time, the Required Asset Amount exceeds the Aggregate Asset
Amount.

         "Auction Dealer" means a Manufacturer-approved auction dealer under an
Eligible Repurchase Program which is a guaranteed depreciation program.

         "Auction Receivable" means a legal, valid and binding receivable due
from an Auction Dealer or, with respect to Non-Repurchase Vehicles, another
dealer regularly used by the Servicer to TFFC or a Lessee in respect of Group IV
Vehicles sold at an auction conducted by or through or arranged by the
Manufacturer pursuant to its Eligible Repurchase Program which is a guaranteed
depreciation program or otherwise conducted or arranged in the case of
Non-Repurchase Vehicles.

         "Bankruptcy Code" means Bankruptcy Reform Act of 1978, as amended,  and
as codified as 11 U.S.C. ss.ss. 101 et. seq.

         "Bankruptcy Court" means the United States Bankruptcy Court for the
District of Delaware overseeing the Bankruptcy Proceeding.

         "Bankruptcy Order" means the order of the Bankruptcy Court authorizing
Budget and the other Group IV Lessees to enter into the Group IV Master Lease
and the other applicable Related Documents with respect to $750,000,000 of
permanent postpetition fleet financing by the Issuer, and as to which no stay
has been entered and which has not been reversed, modified, vacated or
overturned, and which is in form and substance satisfactory to the Agent in its
reasonable discretion; provided, however, that prior to the final hearing before
the Bankruptcy Court with respect to the foregoing and the entry of a final
order in connection therewith, the "Bankruptcy Order" shall mean an interim
order of the Bankruptcy Court.

         "Bankruptcy Proceeding" means the bankruptcy case or cases commenced by
the voluntary petition for relief under the Bankruptcy Code filed by Budget,
each of the Group IV Lessees and various other direct or indirect subsidiaries
of Budget with the United States Bankruptcy Court for the District of Delaware.

         "Base Amount" means, as of any date of determination, the sum of the
Net Book Values of all Financed Vehicles leased under the Financing Lease as of
such date, each such Net Book Value calculated as of the first day contained
within both the calendar month in which such date of determination occurs and
the Vehicle Term for the related Financed Vehicle, plus all accrued and unpaid
Monthly Base Rent thereunder as of such date.

         "Base Indenture" has the meaning set forth in the preamble.

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         "BRACC" means Budget Rent A Car Corporation, a Delaware corporation.

         "Budget" has the meaning set forth in the preamble.

         "Budget Interest" means the transferable indirect interest in TFFC's
assets held by the Budget Interestholder to the extent relating to the Group IV
Collateral, including the right to receive payments with respect to such
collateral in respect of the Budget Interest Amount.

         "Budget Interest Amount" means, on any date of determination, the
amount, if any, by which the Aggregate Asset Amount at the end of the day
immediately prior to such date of determination exceeds the Required Asset
Amount at the end of such day.

         "Budget Interest Percentage" means, on any date of determination, when
used with respect to Group IV Collections that are Principal Collections,
Recoveries, Losses and other amounts, an amount equal to one hundred percent
(100%) minus the sum of (i) the invested percentages for all outstanding Group
IV Series of Notes including all classes of such Series of Notes and (ii) the
available subordinated amount percentages for all Group IV Series of Notes that
provide for credit enhancement in the form of overcollateralization, in each
case as such percentages are calculated on such date with respect to Group IV
Collections that are Principal Collections, Recoveries, Losses and other
amounts, as applicable.

         "Budget Interestholder" means Budget, as holder of the Budget Interest,
or any permitted successor or assign.

         "Budget  Systems"  means Budget  Rent-A-Car  Systems,  Inc., a Delaware
corporation, and its successors.

         "Cash Liquidity Amount" means, at any time, the amount of funds, if
any, set aside by the Issuer in the Series 2002-1 Excess Funding Account as all
or a portion of the Series 2002-1 Liquidity Amount at such time.

         "Casualty Payment" has the meaning specified in Section 6 of the Group
IV Master Lease.

         "Closing Date" means August 6, 2002.

         "Collateral" means the Group IV Collateral and the Series 2002-1
Collateral.

         "Collections" means Group IV Collections and all other Series 2002-1
Collections.

         "Consolidated Subsidiary" means, at any time, with respect to Budget,
any Subsidiary or other entity the accounts of which would be consolidated with
those of Budget, in its consolidated financial statements as of such time.

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         "Credit Agreement" means the Debtor-in-Possession Credit Agreement,
dated as of August 7, 2002, among GECC Capital Markets Group, Inc., as lead
arranger, General Electric Capital Corporation, as administrative agent and
lender, Budget and certain other direct and indirect subsidiaries of Budget
signatories thereto, as borrowers, and certain other lenders signatories
thereto, as lenders.

         "Cumulative Disposition Losses" means, with respect to any
Determination Date, the product of (a) the aggregate Disposition Losses that
have occurred in the Related Months with respect to such Determination Date and
all prior Determination Dates in connection with the Series 2002-1 Note and (b)
the Series 2002-1 Invested Percentage (determined in accordance with clause (i)
of the definition thereof at any time during the Series 2002-1 Revolving Period
and determined in accordance with clause (ii) of the definition thereof at any
time during the Series 2002-1 Rapid Amortization Period).

         "Cumulative Recoveries" means, with respect to any Determination Date,
the product of (a) the aggregate Recoveries that relate to prior Disposition
Losses and have occurred in the Related Months with respect to such
Determination Date and all prior Determination Dates in connection with the
Series 2002-1 Note and (b) the Series 2002-1 Invested Percentage (determined in
accordance with clause (i) of the definition thereof at any time during the
Series 2002-1 Revolving Period and determined in accordance with clause (ii) of
the definition thereof at any time during the Series 2002-1 Rapid Amortization
Period).

         "Current Disposition Losses" means, with respect to any Determination
Date, the amount, if any, by which the Cumulative Disposition Losses with
respect to such Determination Date exceeds the Cumulative Disposition Losses
with respect to the immediately preceding Determination Date or, in the case of
the first Determination Date, Cumulative Disposition Losses since the Closing
Date.

         "Current Recoveries" means, with respect to any Determination Date, the
amount, if any, by which the Cumulative Recoveries with respect to such
Determination Date exceeds the Cumulative Recoveries with respect to the
immediately preceding Determination Date or in the case of the first
Determination Date, Cumulative Recoveries since the Closing Date.

          "Daily Interest Amount" means, for any day in a Series 2002-1 Interest
Period, an amount equal to (a) the product of (i) the Series 2002-1 Note Rate
for such Series 2002-1 Interest Period and (ii) the Aggregate Principal Balance
of the Series 2002-1 Note as of the close of business on such date, divided by
(b) 360.

         "DaimlerChrysler" means DaimlerChrysler Corporation.

         "DB MTN  Engagement"  means the issuance and funding of the Series 2002
MTNs with  Deutsche  Bank  Securities  Inc. or an  Affiliate  of  Deutsche  Bank
Securities Inc. as exclusive structuring agent,  placement agent and book-runner
in connection therewith.

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         "Decrease" means a Voluntary Decrease or a Mandatory Decrease, as
applicable.

         "Demand Note" means an intercompany demand note made on or after the
Series 2002-1 Issuance Date by Budget in favor of the Issuer with respect to the
Series 2002-1 Note.

         "Demand Note Amount" means the aggregate outstanding principal amount
of the Demand Note.

         "Deposit Date" has the meaning specified in Section 5.2 of this
Supplement.

         "Depreciation Charges" means, for purposes of the Group IV Master Lease
(a) with respect to any Group IV Type I Repurchase Vehicle, the scheduled
monthly depreciation charge set forth by the Manufacturer in its Repurchase
Program for such Vehicle with respect to such Vehicle and (b) with respect to
any Group IV Type II Repurchase Vehicle or Group IV Non-Repurchase Vehicle, the
monthly depreciation charge set forth in the related Depreciation Schedule;
provided, however, that for purposes of Group IV Type II Repurchase Vehicles and
Group IV Non-Repurchase Vehicles, Depreciation Charges shall be a rate that is
at least equal to 1.50% per month. If such charge is expressed as a percentage,
the Depreciation Charge for such Vehicle shall be such percentage multiplied by
the Capitalized Cost for such Vehicle calculated on a daily basis. For any
Vehicle not held for a full Related Month in the month of acquisition or
disposition, the Depreciation Charge shall be prorated by multiplying the
applicable Depreciation Charge by a fraction, the numerator of which is either
(a) in the case of an acquisition, the number of days from the date depreciation
commences (in accordance with the applicable Repurchase Program or Depreciation
Schedule) with respect to such Vehicle to the first day of the next month or (b)
in the case of a disposition, the number of days from the first day of such
month to the Turnback Date for such Vehicle and the denominator of which is, in
each case, the number of days in such month. For the month in which a Repurchase
Vehicle is turned back to the applicable Manufacturer, the Depreciation Charge
shall be prorated by multiplying the applicable depreciation amount by a
fraction, the numerator of which is the number of days from the first day of
such month to the Turnback Date for such Vehicle and the denominator of which is
the number of days in such month. In the event a Vehicle is sold to a third
party, the Depreciation Charge shall be prorated by multiplying the applicable
Depreciation Charge by a fraction, the numerator of which is the number of days
from the first day of such month to the date proceeds were received on the sale
of such Vehicle and the denominator of which is the number of days in such
month.

         "Depreciation Schedule" means, with respect to a Group IV Type II
Repurchase Vehicle or a Group IV Non-Repurchase Vehicle, a schedule of estimated
monthly depreciation prepared by the Servicer, and revised from time to time in
the Servicer's sole discretion.

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         "Determination Date" means the second Business Day prior to each
Distribution Date.

         "Disposition Date" means, with respect to any Group IV Repurchase
Vehicle, (i) if such Group IV Vehicle was sold at auction or returned to a
Manufacturer for repurchase, pursuant to the applicable Repurchase Program, the
Turnback Date for such Group IV Vehicle, or (ii) if such Group IV Vehicle was
sold to any Person (other than to a Manufacturer pursuant to such Manufacturer's
Repurchase Program or to a third party through an auction conducted by or
through or arranged by the Manufacturer pursuant to its Repurchase Program), the
date on which title to the Group IV Repurchase Vehicle was transferred in
connection with such sale or other disposition.

         "Disposition Losses" means the aggregate of (i) all Group IV Type I
Repurchase Losses defined in clauses (b), (c) and (d) of the definition thereof,
(ii) all Group IV Type II Repurchase Losses defined in clauses (b), (c), (d) and
(e) of the definition thereof and (iii) all Group IV Non-Repurchase Losses
defined in clauses (b) and (c) of the definition thereof.

         "Disposition Proceeds" means the net proceeds (other than the
Repurchase Price or Guaranteed Payments payable by the related Manufacturer
pursuant to an Eligible Repurchase Program) from the sale or disposition of
Group IV Vehicles to any Person, whether at auction or otherwise; provided,
however, that Disposition Proceeds shall not include Termination Payments.

         "Distribution Date" means, with respect to the Series 2002-1 Note, the
25th day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, commencing September 25, 2002.

         "Distributions" means (i) contributions, loans or other distributions
made by Budget to a profit sharing or pension plan not made in the ordinary
course of the operation of such Plan and (ii) all fees, rents and other
compensation or payments paid or made by Budget or its Subsidiaries to any
stockholder of Budget except for such fees, rents or other compensation or
payments paid or made in exchange for actual services rendered to Budget on an
arm's length basis by such stockholder.

         "Eligible Credit Enhancer" means (a) a commercial bank having total
assets in excess of $500,000,000, (b) a finance company, insurance company or
other financial institution that in the ordinary course of business enters into
transactions of a type similar to that entered into by the Initial Letter of
Credit Provider under the Credit Agreement and has total assets in excess of
$200,000,000, and with respect to which providing a Letter of Credit or becoming
an assignee of the obligations of the Letter of Credit Provider would not
constitute a prohibited transaction under Section 4975 of the Code or Section
406 of ERISA and (c) any other financial institution, in each case reasonably
satisfactory to the Agent, Budget and TFFC having a short-term rating of at
least "A-1" or its equivalent by a Rating Agency; provided, however, that any
Person who does not have a short-term rating from any Rating Agency shall be
deemed to have the required

                                       10
<PAGE>

rating set forth above if such Rating Agency confirms in writing that such
Person, if its short-term debt obligations were rated, would be assigned such
required rating; provided further that, notwithstanding the foregoing, Credit
Suisse First Boston shall be deemed to be reasonably satisfactory to the Agent
as an Eligible Credit Enhancer for all purposes hereunder.

         "Eligible Manufacturer" means an Eligible Type I Repurchase
Manufacturer, Eligible Type II Repurchase Manufacturer or an Eligible
Non-Repurchase Manufacturer.

         "Eligible Non-Repurchase Manufacturer" means each Manufacturer listed
as such on Exhibit B to this Supplement and each other Manufacturer that has
been approved as such by the Required Noteholders and each Enhancement Provider
for the Group IV Series of Notes and, if any Group IV Series of Notes is then
being rated by one or more Rating Agencies, has been approved by each such
Rating Agency or with respect to the addition of which as an Eligible
Non-Repurchase Manufacturer there has been obtained Rating Agency Confirmation.

         "Eligible Non-Repurchase Vehicle" means any Non-Repurchase Vehicle, (a)
which is owned by TFFC (or is a Texas Vehicle or a Hawaii Vehicle, in either
case, titled in TFFC's name) free and clear of all Liens other than Permitted
Liens, (b) the Manufacturer of which is an Eligible Non-Repurchase Manufacturer,
(c) which was, at the time of purchase or financing by TFFC, an Eligible
Repurchase Vehicle and (d) with respect to which (i) the Trustee is noted as the
first lienholder on the Certificate of Title therefor, (ii) such Certificate of
Title has been submitted to the appropriate state authorities for such notation
or (iii) for which the Lessee has commenced the process to note the lien of the
Trustee on such Certificate of Title within the time period specified in the
Group IV Master Lease; provided, however, if the actions provided in clauses (i)
or (ii) above are not sufficient in any state to cause the Trustee's Lien upon
such Group IV Vehicles to be a perfected first Lien, then in order for a Group
IV Vehicle titled in such state to be an "Eligible Non-Repurchase Vehicle", such
action as is required to cause the Trustee's Lien to be a perfected first Lien
shall have been taken by the Servicer.

         "Eligible Receivables" means Auction Receivables and other receivables
described, as the case may be, in clause (ii) of the definition of "Aggregate
Group IV Non-Repurchase Asset Amount," clauses (ii) and (iii) of the definition
of "Aggregate Group IV Type I Repurchase Asset Amount" and clauses (ii) and
(iii) of the definition of "Aggregate Group IV Type II Repurchase Asset Amount."

         "Eligible Repurchase Program" means, at any time, a Repurchase Program
(as defined in this Supplement) offered by an Eligible Type I Repurchase
Manufacturer or Eligible Type II Repurchase Manufacturer (a) pursuant to which
the Repurchase Price (or the price guaranteed to be received at an auction
conducted by or within the requirements established by such Manufacturer) is at
least equal to the Capitalized Cost of each Group IV Repurchase Vehicle, minus
all Depreciation Charges accrued with respect to such Group IV Vehicle prior to
the date that the Group IV Vehicle is submitted for repurchase or auction, minus
Excess Mileage Charges, minus Excess Damage Charges and minus

                                       11
<PAGE>

any other charges specified in such Repurchase Program, (b) that cannot be
amended or terminated with respect to any Group IV Vehicle after the purchase of
that Group IV Vehicle, and (c) with respect to any Group IV Repurchase Vehicle
of such Manufacturer that is leased or proposed to be leased under the Group IV
Master Lease, the benefits of which Repurchase Program have been collaterally
assigned to the Trustee pursuant to an Assignment Agreement acknowledged in
writing by such Manufacturer and applicable to the model year of such Group IV
Repurchase Vehicle, and TFFC (and the Trustee on behalf of TFFC) has been
provided with an opinion of counsel or officer's certificate reasonably
satisfactory to the Trustee that the Trustee and TFFC can enforce the applicable
Manufacturer's obligations thereunder; provided, however, that with respect to a
Repurchase Program for any model year beginning with 2003 and thereafter, (i)
the Agent shall have delivered its written approval thereof to TFFC, which
approval shall not be unreasonably withheld, and (ii) if there is a major change
to a Repurchase Program during a model year, the Agent shall have delivered its
written approval thereof to TFFC, which approval shall not be unreasonably
withheld; provided further that disapproval by the Agent of any Repurchase
Program for any model year beginning with 2003 or any major change to such a
Repurchase Program shall be deemed to be reasonable if the Agent has determined
that the leasing of Vehicles subject to such Repurchase Program or Repurchase
Program with such change, as the case may be, under the Group IV Master Lease
would cause the level of credit enhancement in respect of the Series 2002-1 Note
to be insufficient and the Agent has provided TFFC with its calculations
supporting such determination.

         "Eligible Repurchase Vehicle" means any Vehicle (a) which at the time
of purchase or financing by TFFC is eligible under an Eligible Repurchase
Program, (b) which is owned by TFFC or is a Texas Vehicle or Hawaii Vehicle, and
(c) with respect to which (i) TFFC is noted as the owner on the Certificate of
Title therefor and (ii) either (x) the Trustee is noted as the first lienholder
on the Certificate of Title therefor or (y) the Certificate of Title has been
submitted to the appropriate state authorities for such notation as lienholder;
provided, however, if the actions provided in clause (i) or (ii) are not
sufficient in any state to cause the Trustee's Lien upon such Group IV Vehicle
to be a perfected first Lien, then in order for a Group IV Vehicle titled in
such state to be an "Eligible Repurchase Vehicle," such action as is required to
cause the Trustee's Lien to be a perfected first Lien shall have been taken by
the Servicer.

         "Eligible Type I Repurchase Manufacturer" means each Manufacturer
listed as such on Exhibit B to this Supplement and any other Manufacturer (a)
that has an Eligible Repurchase Program, (b) has a long-term unsecured debt
rating of at least "BBB-" from Standard & Poor's and "Baa3" from Moody's, (c)
has been approved by each Enhancement Provider, if any, for the Group IV Series
of Notes and by the Series 2002-1 Note Purchaser and (d) with respect to which
Rating Agency Confirmation (for all Group IV Series of Notes) has been obtained
regarding the addition of such Manufacturer as an Eligible Type I Repurchase
Manufacturer; provided, however, that upon the occurrence of a Manufacturer
Event of Default with respect to such Manufacturer, such Manufacturer shall no
longer qualify as an Eligible Type I Repurchase Manufacturer.

                                       12
<PAGE>

         "Eligible Type I Repurchase Vehicle" means an Eligible Repurchase
Vehicle manufactured by an Eligible Type I Repurchase Manufacturer.

         "Eligible Type II Repurchase Manufacturer" means each Manufacturer
listed as such on Exhibit B to this Supplement and any other Manufacturer (a)
that has an Eligible Repurchase Program (without taking into account the
requirement in the definition of "Eligible Repurchase Program" that it be
offered by an Eligible Type I Repurchase Manufacturer or Eligible Type II
Repurchase Manufacturer), (b) has been approved by each Enhancement Provider, if
any, for the Group IV Series of Notes and by the Series 2002-1 Note Purchaser
and (c) with respect to which Rating Agency Confirmation (for all Group IV
Series of Notes) has been obtained regarding the addition of such Manufacturer
as an Eligible Type II Repurchase Manufacturer; provided, however, that upon the
occurrence of a Manufacturer Event of Default with respect to such Manufacturer,
such Manufacturer shall no longer qualify as an Eligible Type II Repurchase
Manufacturer.

         "Eligible Type II Repurchase Vehicle" means an Eligible Repurchase
Vehicle manufactured by an Eligible Type II Repurchase Manufacturer.

         "Eligible Vehicle" means, as of any date of determination, (a) any
Eligible Type I Repurchase Vehicle that is entitled to the benefits of its
applicable Repurchase Program as of such date, (b) any Eligible Type II
Repurchase Vehicle (i) the Type II Repurchase Vehicle Value of which if added to
the Aggregate Group IV Type II Repurchase Asset Amount would not cause such sum
to exceed the Maximum Type II Repurchase Vehicle Percentage of the Aggregate
Asset Amount as of such date, (ii) the Type II Repurchase Vehicle Value of which
if added to the sum of (x) the aggregate Type II Repurchase Vehicle Values of
all Eligible Type II Repurchase Vehicles manufactured by the same Manufacturer
and leased under the Group IV Master Lease as of such date plus (y) all Eligible
Receivables of such Manufacturer included in the Aggregate Group IV Type II
Repurchase Asset Amount as of such date, would not cause the portion of the
Aggregate Type II Repurchase Asset Amount allocable to Eligible Type II
Repurchase Vehicles of such Manufacturer to exceed the Maximum Manufacturer
Percentage applicable to such Manufacturer (including any limitation in
combination with another Manufacturer), if any, of the Aggregate Asset Amount as
of such date, and (iii) that is entitled to the benefits of its applicable
Repurchase Program as of such date, (c) any Eligible Non-Repurchase Vehicle (i)
the Non-Repurchase Vehicle Value of which if added to the Aggregate Group IV
Non-Repurchase Asset Amount would not cause such sum to exceed the Maximum
Non-Repurchase Vehicle Percentage of the Aggregate Asset Amount as of such date
and (ii) the Non-Repurchase Vehicle Value of which if added to the sum of (x)
the aggregate Non-Repurchase Vehicle Values of all Eligible Non-Repurchase
Vehicles manufactured by the same Manufacturer and leased under the Group IV
Master Lease as of such date plus (y) all Eligible Receivables of such
Manufacturer included in the Aggregate Group IV Non-Repurchase Asset Amount as
of such date, would not cause the portion of the Aggregate Group IV
Non-Repurchase Asset Amount allocable to Eligible Non-Repurchase Vehicles of
such Manufacturer to exceed the Maximum Manufacturer Percentage applicable to
such Manufacturer (including any

                                       13

<PAGE>

limitation in combination with another Manufacturer), if any, of the Aggregate
Asset Amount as of such date; provided, however, that any Financed Vehicle
satisfying the conditions set forth in the preceding clauses (a), (b) or (c), as
applicable, shall nevertheless not be deemed an "Eligible Vehicle" if the Net
Book Value thereof, if such Financed Vehicle is an Eligible Type I Repurchase
Vehicle, or the Type II Repurchase Vehicle Value thereof, if such Financed
Vehicle is an Eligible Type II Repurchase Vehicle, or the Non-Repurchase Vehicle
Value thereof, if such Financed Vehicle is an Eligible Non-Repurchase Vehicle,
when added to the sum of (1) the aggregate Net Book Values of all Group IV Type
I Repurchase Vehicles that are Financed Vehicles as of such date plus (2) the
aggregate Type II Repurchase Vehicle Values of all Group IV Type II Repurchase
Vehicles that are Financed Vehicles as of such date plus (3) the aggregate
Non-Repurchase Vehicle Values of all Group IV Non-Repurchase Vehicles that are
Financed Vehicles as of such date plus (4) all Eligible Receivables related to
Financed Vehicles included in the Aggregate Asset Amount as of such date, would
cause such sum to exceed the Maximum Financed Vehicle Percentage of the
Aggregate Asset Amount as of such date.

         "Enhancement Pro Rata Share" means, as of any date of determination,
with respect to amounts drawn under each Letter of Credit or withdrawn from the
Series 2002-1 Cash Collateral Account, the percentage equivalent of a fraction,
the numerator of which is the amount available to be drawn under such Letter of
Credit or withdrawn from the Series 2002-1 Cash Collateral Account (excluding
any earnings on investments of amounts on deposit therein to the extent such
earnings are excluded for purposes of determining availability of funds or
balances in the Series 2002-1 Cash Collateral Account pursuant to Section
5.10(b)(ii) of this Supplement), as applicable, on such date and the denominator
of which is the Series 2002-1 Letter of Credit Amount on such date; provided,
that only for purposes of calculating the Enhancement Pro Rata Share with
respect to any Letter of Credit Provider as of any date, if such Letter of
Credit Provider has not complied with its obligation to pay the Trustee the
amount of any draw under its Letter of Credit made prior to such date, the
available amount under such Letter of Credit Provider's Letter of Credit as of
such date shall be treated as reduced (for calculation purposes only) by the
amount of such unpaid demand and shall not be reinstated for purposes of such
calculation unless and until the date as of which such Letter of Credit Provider
has paid such amount to the Trustee and been reimbursed by Budget or a Lessee or
otherwise on behalf of Budget or a Lessee for such amount (provided that the
foregoing calculation shall not in any manner reduce the actual liability of
such Letter of Credit Provider in respect of any failure to pay any demand under
its Letter of Credit).

         "Excess Amounts" has the meaning specified in Section 5.2(d)(v) of this
Supplement.

         "Excluded Payments" means the following amounts payable to TFFC or a
Lessee pursuant to the Repurchase Programs: (i) all incentive payments payable
to TFFC or a Lessee to purchase Group IV Vehicles under the Repurchase Programs,
(ii) all amounts payable to TFFC or a Lessee as compensation for the preparation
by TFFC or a Lessee of newly delivered Group IV Vehicles under the Repurchase
Programs and (iii) all amounts

                                       14
<PAGE>

payable to TFFC or a Lessee in reimbursement for warranty work performed by
TFFC or a Lessee on the Group IV Vehicles under the Repurchase Programs.

         "Financing Lease" has the meaning specified in Annex B to the Group IV
Master Lease.

         "Financed Vehicle" means a Group IV Vehicle that is a Texas Vehicle or
Hawaii Vehicle financed by TFFC on or after the Lease Commencement Date under
the Financing Lease.

         "Ford" means Ford Motor Company.

         "Group IV Collateral" has the meaning specified in Section 3.1(a) of
this Supplement.

         "Group IV Collection Account" has the meaning specified in Section
5.1(a) of this Supplement.

         "Group IV Collections" means (a) all payments made under the Group IV
Master Lease, (b) all Disposition Proceeds, Repurchase Prices and Guaranteed
Payments in respect of Group IV Vehicles, (c) any insurance proceeds or other
payments with respect to the Group IV Vehicles and (d) all amounts earned on
Permitted Investments allocable to or arising out of investments of funds on
deposit in the Group IV Collection Account; provided that, in the case of
amounts in clauses (b) and (c), such amounts shall be allocated to the Group IV
Vehicles in accordance with the terms hereof and the Servicer's normal practices
and procedures for determining and allocating vehicle proceeds.

         "Group IV Interest Collections" means on any date of determination (a)
the aggregate amount of Group IV Collections in the Group IV Collection Account
which represent (i) Monthly Variable Rent, Monthly Finance Rent or Monthly
Supplemental Rent accrued under the Group IV Master Lease, or (ii) any amounts
earned on Permitted Investments in the Collection Account and the Group IV
Collection Account which constitute Group IV Collateral, and (b) amounts earned
on Permitted Investments in the Group IV Collection Account (or any subaccount
thereof), which, in the case of clauses (a)(ii) and (b) above, are available for
distribution on such date.

         "Group IV Invested Amount" means, as of any date of determination, an
amount equal to the aggregate of the Invested Amounts of all Group IV Series of
Notes.

         "Group IV Lessees" means Budget Systems and NYRAC and each other
Person, if any, that becomes a "Lessee" under the Group IV Master Lease from
time to time, and the respective successors and assigns of any of the foregoing.

         "Group IV Master Lease" means the Second Amended and Restated Master
Motor Vehicle Lease Agreement, Group IV, as amended and restated as of August 6,
2002 among TFFC, as lessor, Budget Systems, NYRAC and certain other subsidiaries

                                       15
<PAGE>

and affiliates of Budget that are permitted pursuant to the Bankruptcy Order and
are approved by the Series 2002-1 Note Purchaser (which approval shall not be
unreasonably withheld), as lessees, and Budget, as guarantor, as amended,
supplemented or otherwise modified from time to time.

         "Group IV Noteholder" means a Person in whose name a Note of any Group
IV Series of Notes is registered in the Note Register.

         "Group IV Non-Repurchase Fleet Market Value" means, as of any date of
determination, with respect to Group IV Non-Repurchase Vehicles, the sum as of
such date of the respective Fair Market Values of all Group IV Non-Repurchase
Vehicles.

         "Group IV Non-Repurchase Losses" means, with respect to any Related
Month, the sum (without duplication) of (a) any payment in respect of Monthly
Base Rent, Monthly Supplemental Payments, Additional Base Rent and Termination
Payments that becomes due to the Issuer under the Group IV Master Lease in
respect of Group IV Non-Repurchase Vehicles that is not paid to the Issuer prior
to the expiration of any grace period provided for in the Group IV Master Lease
for the making of such payment, but only to the extent that such grace period
expires during such Related Month, (b) the excess, if any, of (x) the Net Book
Values of all Group IV Non-Repurchase Vehicles which are Lessor-Owned Vehicles
sold or disposed of during the Related Month, calculated on the dates of the
respective sales or final dispositions thereof, over (y) the aggregate amount of
Disposition Proceeds and Termination Payments received during the Related Month
in respect thereof by the Issuer or the Trustee (including by deposit into the
Group IV Collection Account) and (c) with respect to Group IV Non-Repurchase
Vehicles any Auction Receivable in respect of Non-Repurchase Vehicles which is
not paid in full within five (5) Business Days after the applicable Turnback
Date, but only to the extent that such five (5) Business Day period expires
during such Related Month.

         "Group IV Non-Repurchase Percentage" means, on any date of
determination, the percentage equivalent of a fraction, the numerator of which
will be the Aggregate Group IV Non-Repurchase Asset Amount as of such date and
the denominator of which will be the Aggregate Asset Amount as of such date.

         "Group IV Non-Repurchase Recoveries" means, with respect to any Related
Month, the sum (without duplication) of all amounts received by the Issuer and
the Trustee (including by deposit into the Group IV Collection Account) from any
source (other than Enhancement) during such Related Month in respect of Group IV
Non-Repurchase Losses, as determined by the Servicer consistent with its methods
of tracking and allocating to vehicles and Series, Disposition Proceeds,
insurance proceeds and other proceeds of such Group IV Vehicles.

         "Group IV Non-Repurchase Vehicles" means the Eligible Non-Repurchase
Vehicles leased under the Group IV Master Lease.

                                       16
<PAGE>

         "Group IV Non-Type I Vehicles" means, as of any date of determination,
the Group IV Type II Repurchase Vehicles and Group IV Non-Repurchase Vehicles as
of such date.

         "Group IV Non-Type I Percentage" means, as of any date of
determination, the sum of (a) the Group IV Non-Repurchase Percentage as of such
date and (b) the Group IV Type II Repurchase Percentage as of such date.

         "Group IV Principal Collections" means all Group IV Collections other
than Group IV Interest Collections.

         "Group IV Repurchase Vehicle" means an Eligible Repurchase Vehicle
leased under the Group IV Master Lease.

         "Group IV Series of Notes" has the meaning specified in Article 1 of
this Supplement.

         "Group IV TFFC Agreements" has the meaning specified in Section
3.1(a)(i) of this Supplement.

         "Group IV Type I Repurchase Losses" means, with respect to any Related
Month, the sum of (without duplication) (a) the aggregate amount of payments in
respect of Monthly Base Rent, Monthly Supplemental Payments and Termination
Payments that have become due to the Lessor under the Group IV Master Lease in
respect of Group IV Type I Repurchase Vehicles that are not paid to TFFC or the
Trustee prior to the expiration of the respective grace periods, if any,
provided for in the Group IV Master Lease for the making of such payments, but
only if such grace periods, if any, expire (or, with respect to any payment for
which there is no grace period, only if such payment is due) during such Related
Month, (b) with respect to Group IV Type I Repurchase Vehicles any payment
required to be made by a Manufacturer under such Manufacturer's Repurchase
Program which is not made within 60 days after the applicable Turnback Date, but
only to the extent that such 60 day period expires during such Related Month,
(c) with respect to Group IV Type I Repurchase Vehicles any payment required to
be made by an Auction Dealer under a Repurchase Program which is not made within
five (5) Business Days after the applicable Turnback Date, but only to the
extent that such five (5) Business Day period expires during such Related Month
and (d) in the event that a Manufacturer Event of Default occurs with respect to
any Manufacturer, all payments that are required to be made (and have not yet
been made) by such Manufacturer to the Issuer with respect to Group IV Type I
Repurchase Vehicles that are Lessor-Owned Vehicles returned to such Manufacturer
or delivered to the authorized auction, as applicable, under such Manufacturer's
Repurchase Program, but only to the extent that the grace or other similar
period for the determination of such Manufacturer Event of Default expires
during such Related Month.

         "Group IV Type I Repurchase Recoveries" means, with respect to any
Related Month, the sum of (without duplication) all amounts received during such
Related Month

                                       17
<PAGE>

by TFFC or the Trustee (including deposits into the Group IV Collection Account)
from any source (other than Enhancement) in respect of Group IV Type I
Repurchase Losses, as determined by the Servicer consistent with its methods of
tracking and allocating to vehicles and Series, Disposition Proceeds, Guaranteed
Payments, Repurchase Prices, insurance proceeds and other proceeds of such Group
IV Vehicles.

         "Group IV Type I Repurchase Vehicle" means an Eligible Type I
Repurchase Vehicle leased under the Group IV Lease.

         "Group IV Type I Repurchase Percentage" means, as of any date of
determination, the percentage equivalent of a fraction, the numerator of which
is the Aggregate Group IV Type I Repurchase Asset Amount as of such date and the
denominator of which is the Aggregate Asset Amount as of such date.

         "Group IV Type II Repurchase Fleet Market Value" means, as of any date
of determination, with respect to Group IV Type II Repurchase Vehicles, the sum
as of such date of the respective Fair Market Values (determined as if such
Group IV Type II Repurchase Vehicles were Non-Repurchase Vehicles) of all such
Group IV Type II Repurchase Vehicles.

         "Group IV Type II Repurchase Losses" means, with respect to any Related
Month, the sum of (without duplication) (a) the aggregate amount of payments in
respect of Monthly Base Rent, Monthly Supplemental Payments and Termination
Payments that have become due to the Lessor under the Group IV Master Lease in
respect of Group IV Type II Repurchase Vehicles that are not paid to TFFC or the
Trustee prior to the expiration of the respective grace periods, if any,
provided for in the Group IV Master Lease for the making of such payments, but
only if such grace periods, if any, expire (or, with respect to any payment for
which there is no grace period, only if such payment is due) during such Related
Month, (b) the excess, if any, of (x) the Net Book Values of all Group IV Type
II Repurchase Vehicles which are Lessor-Owned Vehicles sold or disposed of
during the Related Month, calculated on the dates of the respective sales or
final dispositions thereof, over (y) the aggregate amount of Disposition
Proceeds and Termination Payments received during the Related Month in respect
thereof by the Issuer or the Trustee (including by deposit into the Group IV
Collection Account), (c) with respect to Group IV Type II Repurchase Vehicles
any payment required to be made by a Manufacturer under such Manufacturer's
Repurchase Program which is not made within 45 days after the applicable
Turnback Date, but only to the extent that such 45 day period expires during
such Related Month, (d) with respect to Group IV Type II Repurchase Vehicles any
payment required to be made by an Auction Dealer under a Repurchase Program
which is not made within five (5) Business Days after the applicable Turnback
Date, but only to the extent that such five (5) Business Day period expires
during such Related Month and (e) in the event that a Manufacturer Event of
Default occurs with respect to any Manufacturer, all payments that are required
to be made (and have not yet been made) by such Manufacturer to the Issuer with
respect to Group IV Type II Repurchase Vehicles that are Lessor-Owned Vehicles
returned to such Manufacturer under such Manufacturer's Repurchase Program, but
only to the extent that the grace or

                                       18
<PAGE>

other similar period for the determination of such Manufacturer Event of Default
expires during such Related Month.

         "Group IV Type II Repurchase Percentage" means, as of any date of
determination, the percentage equivalent of a fraction, the numerator of which
is the Aggregate Group IV Type II Repurchase Asset Amount as of such date and
the denominator of which is the Aggregate Asset Amount as of such date.

         "Group IV Type II Repurchase Recoveries" means, with respect to any
Related Month, the sum of (without duplication) all amounts received during such
Related Month by TFFC or the Trustee (including deposits into the Group IV
Collection Account) from any source (other than Enhancement) in respect of
Series Group IV Type II Repurchase Losses, as determined by the Servicer
consistent with its methods of tracking and allocating to vehicles and Series,
Disposition Proceeds, Guaranteed Payments, Repurchase Prices, insurance proceeds
and other proceeds of such Group IV Vehicles.

         "Group IV Type II Repurchase Vehicle" means an Eligible Type II
Repurchase Vehicle leased under the Group IV Lease.

         "Group IV Vehicles" means the Vehicles leased under the Group IV Master
Lease.

         "Hawaii Vehicle" means a Group IV Vehicle financed by TFFC on or after
the Lease Commencement Date for lease under Annex B of the Group IV Master Lease
in the State of Hawaii; provided, however, that, on any date after the Series
2002-1 Closing Date, the Group IV Vehicles leased under the Group IV Master
Lease for use in the State of Hawaii under Annex B of the Group IV Lease may be
converted by TFFC and the Group IV Lessees to a lease under Annex A of the Group
IV Master Lease upon (i) written notice to the Trustee specifying the date of
such transfer, (ii) the execution of appropriate documentation evidencing the
sale of such vehicles to TFFC and (iii) the appropriate adjustment of future
rent in respect of such vehicles under the Group IV Master Lease, and on and
after such specified date, such Vehicles shall no longer be referred to as
"Hawaii Vehicles" for the purposes of this Supplement and the other Related
Documents.

         "Hyundai" means Hyundai Motors America.

         "Increase" has the meaning specified in Section 4.2(a) of this
Supplement.

         "Increase Date" means the date on which an Increase occurs.

         "Initial Invested Amount" means the aggregate initial principal amount
of the Series 2002-1 Note, which is $0.

         "Initial  Letter of Credit  Provider"  means General  Electric  Capital
Corporation.

                                       19
<PAGE>

         "Interest Reset Date" means the first day of the applicable Series
2002-1 Interest Period.

         "Invested Amount" means, with respect to each Series of Notes, the
amount specified in the applicable supplement as the Invested Amount of such
Series.

         "Late Return Payment" has the meaning specified in Section 12 of the
Group IV Master Lease.

         "Lease Collateral" has the meaning specified in Section 2(b) of the
Group IV Master Lease.

         "Lease Commencement Date" has the meaning specified in the Group IV
Master Lease.

         "Lease Expiration Date" has the meaning specified in Section 3.4 of the
Group IV Master Lease.

         "Lease Event of Default" has the meaning specified in Section 17.1 of
the Group IV Master Lease.

          "Lessee Partial Wind-Down" has the meaning specified in Section 19 of
the Group IV Master Lease.

         "Lessor-Owned Vehicle" means any Eligible Repurchase Vehicle or
Eligible Non-Repurchase Vehicle other than a Financed Vehicle, that is acquired
by TFFC and leased by TFFC to any of the Lessees under Annex A to the Group IV
Master Lease.

         "Letter of Credit" means each irrevocable letter of credit, in form and
substance satisfactory to the Agent in its reasonable discretion, issued by an
Eligible Credit Enhancer for the benefit of the Trustee to provide support for
the Group IV Lessees' payment obligations under the Group IV Master Lease and
for the obligations of Budget under the Demand Note.

         "Letter of Credit Provider" means the Initial Letter of Credit Provider
and any permitted successors or assigns that is an Eligible Credit Enhancer or
any other Eligible Credit Enhancer substituted therefor or that otherwise issues
a Letter of Credit in accordance with the provisions of the Indenture and is
approved by the Agent, which approval shall not be unreasonably withheld.

         "Losses" means, as of any date, the sum of all (a) the Group Type I
Repurchase Losses, (b) the Group IV Type II Repurchase Losses and (c) the Group
IV Non-Repurchase Losses.

         "Mandatory Decrease" has the meaning specified in Section 4.3(a).

                                       20
<PAGE>

         "Manufacturer Event of Default" has the meaning specified in Section 18
of the Group IV Master Lease.

         "Manufacturer Receivable" means an amount due from a Manufacturer under
a Repurchase Program in respect of or in connection with a Group IV Repurchase
Vehicle being turned back to such Manufacturer.

         "Market Value Adjustment Percentage" means, with respect to Group IV
Non-Type I Vehicles, as of any Determination Date following the Series 2002-1
Issuance Date, the lower of (i) the lowest Measurement Month Average with
respect to Group IV Non-Type I Vehicles of any full Measurement Month within the
preceding 12 calendar months and (ii) a fraction expressed as a percentage, the
numerator of which equals the average of the aggregate Fair Market Value
(calculated, in the case of Group IV Type II Repurchase Vehicles, as if such
Group IV Type II Repurchase Vehicles were Non-Repurchase Vehicles) of Group IV
Non-Type I Vehicles leased under the Group IV Lease calculated as of the last
day of the Related Month and as of the last day of the two Related Months
precedent thereto and the denominator of which equals the average of the
aggregate Net Book Values of such Group IV Non-Type I Vehicles calculated as of
each such date.

         "Master Lease Advance" has the meaning specified in Section 2.1(a) of
the Group IV Master Lease.

         "Maximum Financed Vehicle Percentage" means, with respect to Group IV
Vehicles, eight percent (8%) or such higher percentage upon receipt by the
Issuer of Rating Agency Confirmation with respect to such higher percentage.

         "Maximum Lease Commitment" means, on any date of determination, the sum
of (i) the Series 2002-1 Maximum Invested Amount on such date, plus (ii) the
Series 2002-1 Available Subordinated Amount on such date, plus (iii) the
aggregate Net Book Values of all Group IV Vehicles leased under the Group IV
Master Lease as of such date which were acquired, financed, or refinanced with
funds other than proceeds of the Series 2002-1 Note or the Series 2002-1
Available Subordinated Amount, plus (iv) any amounts held in the Series 2002-1
Excess Funding Account that TFFC commits on or prior to such date to invest in
new Group IV Vehicles (as evidenced by an Officer's Certificate of TFFC) in
accordance with the terms of the Group IV Master Lease and the Indenture.

         "Maximum Manufacturer Percentage" means, with respect to any Eligible
Type I Repurchase Manufacturer or Eligible Type II Repurchase Manufacturer, the
percentage amount, if any, set forth on Exhibit B to this Supplement specified
for each Eligible Type I Repurchase Manufacturer or Eligible Type II Repurchase
Manufacturer with respect to Group IV Type I Repurchase Vehicles and Group IV
Type II Repurchase Vehicles and Eligible Receivables related thereto from such
Manufacturers, as applicable, which percentage amount represents the maximum
percentage of Group IV Type I Repurchase Vehicles and Group Type II Repurchase
Vehicles which are Eligible Vehicles permitted under the Group IV Master Lease
to be Group IV Type I Repurchase Vehicles or Group

                                       21
<PAGE>

IV Type II Repurchase Vehicles, as the case may be, manufactured by such
Manufacturer; provided that such percentages may be increased from time to time
solely upon receipt by the Issuer of Rating Agency Confirmation with respect to
such higher percentage.

         "Maximum Non-Repurchase Vehicle Percentage" means, with respect to the
Series 2002-1 Note, 3%.

         "Maximum Term" means, with respect to any Group IV Type I Repurchase
Vehicle, the Type I Maximum Term, with respect to any Group IV Type II
Repurchase Vehicle, the Type II Maximum Term and with respect to any Group IV
Non-Repurchase Repurchase Vehicle, the Non-Repurchase Maximum Term.

         "Maximum Type II Repurchase Vehicle Percentage" means, with respect to
the Series 2002-1 Note, 20%.

         "Measurement Month" with respect to any date, means, with respect to
Group IV Non-Type I Vehicles, each calendar month, or the smallest number of
consecutive calendar months, preceding such date in which (a) at least 250 Group
IV Non-Type I Vehicles were sold (whether at auction, in connection with
Repurchase Programs, or through other channels at market prices) and (b) at
least one-twelfth of the aggregate Net Book Value of the Group IV Non-Type I
Vehicles as of the last day of such calendar month or consecutive calendar
months were sold (whether at auction, in connection with Repurchase Programs, or
through other channels at market prices); provided, however, that no calendar
month included in a Measurement Month for Group IV Non-Type I Vehicles shall be
included in any other Measurement Month for such Group IV Non-Type I Vehicles.

         "Measurement Month Average" means, in the case of Group IV Non-Type I
Vehicles, with respect to any Measurement Month, the percentage equivalent of a
fraction, the numerator of which is the aggregate amount of Disposition Proceeds
in respect of all Group IV Non-Type I Vehicles sold (whether at auction, in
connection with Repurchase Programs, or otherwise) during such Measurement Month
and the denominator of which is the aggregate Net Book Value of such Vehicles on
the dates of their respective sales.

         "Minimum Liquidity Amount" means, (a) as of any date of determination
prior to the Amortization Commencement Date, an amount equal to 4.75% of the
Series 2002-1 Invested Amount as of such date and (b) on or after the
Amortization Commencement Date, zero.

         "Minimum Term" means, with respect to any Group IV Type I Repurchase
Vehicle, the Type I Minimum Term and, with respect to any Group IV Type II
Repurchase Vehicle, the Type II Minimum Term.

                                       22
<PAGE>

          "Monthly Base Rent" has the meaning specified in Section 9(a) of Annex
A and in 6(a) of Annex B to the Group IV Master Lease.

         "Monthly Finance Rent" has the meaning specified in Section 6(a) of
Annex B to the Group IV Master Lease.

         "Monthly Principal Allocation" has the meaning specified in Section
5.5(a).

         "Monthly Supplemental Payment" has the meaning specified in Section
6(b) of Annex B to the Group IV Master Lease.

         "Monthly Supplemental Rent" has the meaning specified in Section 4.3 to
the Group IV Master Lease.

         "Monthly Variable Rent" has the meaning specified in Section 9(a) of
Annex A to the Group IV Master Lease.

         "Moody's" means Moody's Investors Service, Inc.

         "Net Book Value" means, with respect to any Group IV Vehicle being
leased under the Group IV Master Lease (a) as of any date of determination
during the period from the Vehicle Lease Commencement Date for such Group IV
Vehicle to but excluding the Determination Date with respect to the Related
Month in which such Vehicle Lease Commencement Date occurs (such Determination
Date, the "Initial Determination Date" for such Group IV Vehicle), the
Capitalized Cost of such Group IV Vehicle, (b) as of the Initial Determination
Date for such Group IV Vehicle, (i) the Capitalized Cost for such Group IV
Vehicle minus (ii) the aggregate Depreciation Charges accrued with respect to
such Group IV Vehicle through the last day of the Related Month in which the
Vehicle Lease Commencement Date for such Group IV Vehicle occurred, or (c) as of
any Determination Date after the Initial Determination Date, (i) the Net Book
Value of such Group IV Vehicle as calculated on the immediately preceding
Determination Date minus (ii) the aggregate Depreciation Charges accrued with
respect to such Group IV Vehicle during the Related Month (through the last day
thereof). After the Initial Determination Date, on any day which is not a
Determination Date, the Net Book Value of a Group IV Vehicle shall be the Net
Book Value calculated for such Group IV Vehicle on the most recent Determination
Date.

         "Net Disposition Losses" means, with respect to any Determination Date,
the amount, if any, by which the Current Disposition Losses with respect to such
Determination Date exceeds the Current Recoveries with respect to such
Determination Date.

         "Nissan" means Nissan Motors Corporation in the U.S.A., Inc.

         "Non-Repurchase Maximum Term" has the meaning set forth in Section 3.3
of the Group IV Master Lease.

                                       23
<PAGE>

         "Non-Repurchase Vehicle Value" means, with respect to any Group IV
Non-Repurchase Vehicle, the lesser of (a) the Net Book Value of such Group IV
Non-Repurchase Vehicle and (b) the Fair Market Value (as defined in the Base
Indenture) of such Group IV Non-Repurchase Vehicle.

         "Non-Repurchase Vehicle" means, with respect to the Series 2002-1 Note,
a Vehicle which is not subject to an Eligible Repurchase Program at the time of
its leasing under the Group IV Master Lease.

         "Note Interest Shortfall" with respect to the Series 2002-1 Note, has
the meaning specified in Section 5.4.

         "NYRAC" means NYRAC, Inc., a New York corporation and its successors.

         "Officer's Certificate" with respect to the Series 2002-1 Note, means a
certificate signed by an Authorized Officer of TFFC, Budget or a Lessee, as the
case may be.

         "Operating Lease" has the meaning specified in Annex A to the Group IV
Master Lease.

         "Overcollateralization Portion" means, as of any date of determination,
an amount equal to the amount determined pursuant to clause (a) of the
definition of Series 2002-1 Minimum Credit Support Amount minus the Series
2002-1 Letter of Credit Amount as of such date.

         "Permitted Investments" means negotiable instruments or securities
maturing on or before the related Distribution Date represented by instruments
in bearer or registered or in book entry form which evidence (i) obligations the
full and timely payment of which is to be made by or is fully guaranteed by the
United States of America; (ii) demand deposits, time deposits in, or
certificates of deposit issued by, any depositary institution or trust company
incorporated under the laws of the United States of America or any state thereof
and subject to supervision and examination by Federal or State banking or
depositary institution authorities; provided, however, that at the time of the
investment or contractual commitment to invest therein, the certificates of
deposit or short-term deposits, if any, or long-term unsecured debt obligations
(other than such obligation whose rating is based on collateral or on the credit
of a Person other than such institution or trust company) of such depositary
institution or trust company shall have a credit rating from Standard & Poor's
of A-1 and from Moody's of at least P-1, in the case of certificates of deposit
or short-term deposits, or a rating from Standard & Poor's not lower than AA or
from Moody's not lower than Aa3, in the case of long-term unsecured debt
obligations; (iii) commercial paper having, at the time of the investment or
contractual commitment to invest therein, a rating from Standard & Poor's of at
least A-1 and from Moody's of at least P-1; (iv) demand deposits or time
deposits which are fully insured by the Federal Deposit Insurance Corporation;
(v) bankers, acceptances issued by any depositary institution or trust company
described in clause (ii) above; (vi) investments in money market funds rated AAm
or AAmG by Standard & Poor's or

                                       24
<PAGE>

otherwise approved in writing by Standard & Poor's and a comparable rating from
Moody's or otherwise approved in writing by Moody's; (vii) Eurodollar time
deposits having a credit rating from Standard & Poor's of at least A-1 and from
Moody's of P-1; (viii) repurchase agreements involving any of the Permitted
Investments described in clauses (i) and (vii) above and the certificates of
deposit described in clause (ii) above which are entered into with a depository
institution or trust company, having a commercial paper or short-term
certificate of deposit rating of at least A-1 by Standard & Poor's and P-1 by
Moody's; and (ix) any other instruments or securities approved in writing by the
Required Noteholders or, if any Group IV Series of Notes is then being rated by
one or more Rating Agencies, with respect to which the Rating Agencies confirm
in writing that such investment in such instruments or securities will not
adversely affect any ratings with respect to any Group IV Series of Notes.

         "Permitted Liens" has the meaning specified in Section 30.3 of the
Group IV Master Lease.

         "Principal Shortfall" has the meaning specified in Section 5.5(a) of
this Supplement.

         "Pro Rata Share" means, with respect to a Lessee, the ratio (expressed
as a percentage) of (i) the aggregate Net Book Value of Group IV Vehicles leased
by such Lessee divided by (ii) the aggregate Net Book Value of all Group IV
Vehicles leased under the Group IV Master Lease.

         "Rating Agencies" means, each nationally-recognized rating agency then
currently requested to rate the Series 2002-1 Note or, as the context requires,
any Group IV Series of Notes or class thereof.

         "Rating Agency Confirmation" means, with respect to the Series 2002-1
Note, written confirmation by (i) the Series 2002-1 Note Purchaser that it has
consented to the proposed action, amendment, waiver or modification, which
consent shall not be unreasonably withheld and (ii) each Rating Agency then
rating the Series 2002-1 Note, if any, that the proposed action, amendment,
waiver or modification will not result in the reduction or withdrawal of its
rating of the Series 2002-1 Note.

         "Recoveries" means, for any Related Month, the sum of (a) the Group IV
Type I Repurchase Recoveries, (b) the Group IV Type II Repurchase Recoveries and
(c) the Group IV Non-Repurchase Recoveries, in each case, with respect to such
Related Month.

         "Refinanced Vehicles" has the meaning specified in Section 2.1(b) of
the Group IV Master Lease.

         "Refinancing Schedule" has the meaning set forth in Section 2.1(b) of
the Group IV Master Lease.

                                       25
<PAGE>

         "Reinstatement Pro Rata Share" means, with respect to amounts to be
reimbursed to each Letter of Credit Provider or re-deposited into the Series
2002-1 Cash Collateral Account, the percentage equivalent of a fraction, the
numerator of which is the current unreimbursed amount drawn under such Letter of
Credit or withdrawn from the Series 2002-1 Cash Collateral Account, as
applicable, on such date and the denominator of which is the sum of (i) the
aggregate outstanding unreimbursed drawings under the Letters of Credit on such
date and (ii) the aggregate outstanding drawings from the Series 2002-1 Cash
Collateral Account on such date; provided that, for purposes of this (and only
this) definition, if any Letter of Credit is drawn pursuant to Section
5.10(b)(i), then the outstanding unreimbursed drawings under such Letter of
Credit shall be deemed to be $0.

         "Related Documents" means the Indenture, the Series 2002-1 Note, the
Assignment Agreements, the Group IV Master Lease the Series 2002-1 Note Purchase
Agreement, the Demand Note and the Letters of Credit.

         "Rent" has the meaning specified in Section 9(a) of Annex A and in
Section 6(a) of Annex B to the Group IV Master Lease.

         "Repurchase Price Interest" has the meaning specified in Section 11.4
of the Group IV Master Lease.

         "Repurchase Program" means a program pursuant to which a Manufacturer
has agreed with a Lessee, Budget or TFFC to repurchase or guarantee the auction
sale price of Group IV Vehicles manufactured by it or one of its Affiliates
during a specified time period.

         "Repurchase Program Payment Due Date" means, with respect to any
payment due from a Manufacturer or auction dealer in respect of a Group IV
Repurchase Vehicle disposed of pursuant to the terms of the related Repurchase
Program, the thirtieth (30th) day after the Disposition Date for such Group IV
Vehicle.

         "Required Asset Amount" at any time equals the sum of (a) the Aggregate
Principal Balance of all Group IV Series of Notes at such time and (b) an amount
equal to the excess of (i) the aggregate of the minimum credit support amounts
for all Group IV Series of Notes at such time over (ii) the Letter of Credit
Amount for all Group IV Series of Notes at such time.

         "Required Beneficiaries" means the Noteholders holding more than 50% of
the aggregate Invested Amount of all outstanding Group IV Series of Notes.

         "Required Letter of Credit Amount" means, with respect to any date of
determination, the greater of (i) the Series 2002-1 Minimum Credit Support
Amount less the Series 2002-1 Available Subordinated Amount on such date of
determination and (ii) the Minimum Liquidity Amount less the Cash Liquidity
Amount on such date of determination.

                                       26
<PAGE>

         "Required Noteholders" means Series 2002-1 Noteholders holding more
than 50% of the Series 2002-1 Invested Amount and the Series 2002-1 Note
Purchaser.

         "Restrictive Action" has the meaning specified in Section 6.1(h) of
this Supplement.

         "Secured Parties" has the meaning specified in the Series 2002-1 Note
Purchase Agreement.

         "Series 2002-1 Accrued Interest Account" has the meaning specified in
Section 5.1(b) of this Supplement.

         "Series 2002-1 Available Subordinated Amount" means for any date of
determination, the excess of (a) the sum of (i) the Series 2002-1 Available
Subordinated Amount for the preceding Determination Date (or, in the case of the
initial Determination Date, as of the Series 2002-1 Issuance Date), (ii) the
Series 2002-1 Available Subordinated Amount Incremental Recoveries for the
Related Month, (iii) any amounts on deposit in the Series 2002-1 Excess Funding
Account available for allocation to the Series 2002-1 Available Subordinated
Amount or to make payments on the Series 2002-1 Note and (iv) any other
additional amounts contributed by TFFC or Budget to the Series 2002-1 Collection
Account or otherwise for allocation to the Series 2002-1 Available Subordinated
Amount since the preceding Determination Date (or, in the case of the first
Determination Date, since the Series 2002-1 Issuance Date) pursuant to Section
5.2(d)(iii), over (b) the sum of (i) the Series 2002-1 Available Subordinated
Amount Incremental Losses for the Related Month and (ii) any amounts withdrawn
from the Series 2002-1 Collection Account and allocated to the Budget
Distribution Account; provided, however, that the Series 2002-1 Available
Subordinated Amount upon the issuance of the Series 2002-1 Note shall be $0.

         "Series 2002-1 Available Subordinated Amount Incremental Losses" means
for any Related Month, the sum of all Losses that became Losses during such
Related Month and which were allocated to the Series 2002-1 Available
Subordinated Amount pursuant to Section 5.2(c) hereof.

         "Series 2002-1 Available Subordinated Amount Incremental Recoveries"
means, for any Related Month, the sum of all Recoveries that became Recoveries
during such Related Month and which were allocated to the Series 2002-1
Available Subordinated Amount pursuant to Section 5.2(c) hereof.

         "Series 2002-1 Carrying Charges" means, as of any day, (i) the
aggregate of all Trustee fees, servicing fees (other than supplemental servicing
fees) and other fees and expenses and indemnity amounts, if any, payable by TFFC
or the Servicer under the Indenture, the Series 2002-1 Note Purchase Agreement
or the other Related Documents which have accrued with respect to the Series
2002-1 Note during the Related Month or, in the case of such servicing fees and
in the case of any commitment fees or other fees and expenses that are
calculated in respect of the related Series 2002-1 Interest Period

                                       27
<PAGE>

(however denominated) and arise under the Series 2002-1 Note Purchase Agreement,
that have accrued during the related Series 2002-1 Interest Period, plus (ii)
without duplication, all amounts payable by the Lessees pursuant to Section 15
of the Group IV Master Lease which have accrued during the Related Month.

         "Series 2002-1 Cash Collateral Account" means the special deposit
account established by the Trustee pursuant to Section 5.10(a) hereof for the
purpose of depositing amounts drawn under a Letter of Credit or other amounts to
be used for credit enhancement as specified in Section 5.10(a) hereof.

         "Series 2002-1 Cash Liquidity Account" has the meaning specified in
Section 5.1(b) of this Supplement.

         "Series 2002-1 Collateral" has the meaning specified in Section 3.1(b)
of this Supplement.

         "Series 2002-1 Collection Account" is defined in Section 5.1(a) of this
Supplement.

         "Series 2002-1 Collections" means the sum of (a) the Series 2002-1
Invested Percentage of all Group IV Collections constituting Group IV Principal
Collections and Recoveries and (b) all Series 2002-1 Interest Collections.

         "Series 2002-1 Credit Support Amount" means, for any date of
determination (as calculated by the Servicer), the sum of the Series 2002-1
Available Subordinated Amount on such date and the Series 2002-1 Letter of
Credit Amount on such date.

         "Series 2002-1 Credit Support Deficiency" means, with respect to any
date of determination, either (a) the amount, if any, by which the Series 2002-1
Minimum Credit Support Amount exceeds the Series 2002-1 Credit Support Amount or
(b) as the context requires, that the Series 2002-1 Minimum Credit Support
Amount exceeds the Series 2002-1 Credit Support Amount.

         "Series 2002-1 Distribution Account" has the meaning specified in
Section 5.7(a) of this Supplement.

         "Series 2002-1 Event of Default" means the occurrence and continuation
beyond any applicable grace and cure periods set forth therein of an event under
Section 8.1 of the Credit Agreement and such event has resulted in an automatic
or declared acceleration of the obligations under the Credit Agreement.

         "Series 2002-1 Excess Funding Account" has the meaning specified in
Section 5.1(b) of this Supplement.

          "Series 2002-1 Interest Allocation" has the meaning specified in
Section 5.2(a)(i) of this Supplement.

                                       28
<PAGE>

         "Series 2002-1 Interest Collections" means on any date of
determination, the Series 2002-1 Invested Percentage (as of such date) of the
Group IV Interest Collections.

         "Series 2002-1 Interest Period" means a period from and including a
Distribution Date to but excluding the next succeeding Distribution Date;
provided, however, that the initial Series 2002-1 Interest Period shall be from
the Series 2002-1 Issuance Date to but excluding the initial Distribution Date
with respect to the Series 2002-1 Note.

         "Series 2002-1 Invested Amount" means, when used with respect to any
date, an amount equal to (a) the Initial Invested Amount minus (b) the amount of
principal payments made to Series 2002-1 Noteholders and Decreases on or prior
to such date minus (c) all Losses allocated to the Series 2002-1 Invested Amount
on or prior to such date plus (d) all Recoveries allocated to the Series 2002-1
Invested Amount on or prior to such date plus (e) all Increases on or prior to
such date. The Series 2002-1 Invested Amount is the "Invested Amount" of Series
2002-1.

         "Series 2002-1 Invested Percentage" means, on any date of
determination:

                  (i) when used with respect to Group IV Principal Collections
         during the Series 2002-1 Revolving Period and when used with respect to
         Losses, Recoveries, cash on deposit in the Group IV Collection Account
         and other amounts at all times, the percentage equivalent of a
         fraction, the numerator of which shall be an amount equal to the sum of
         (x) the Series 2002-1 Invested Amount and (y) the Series 2002-1
         Available Subordinated Amount, in each case as of the end of the second
         preceding Related Month or, until the end of the second Related Month,
         as of the Series 2002-1 Issuance Date, and the denominator of which
         shall be the greater of (A) the Aggregate Asset Amount as of the end of
         the second preceding Related Month or, until the end of the second
         Related Month, as of the Series 2002-1 Issuance Date, and (B) as of the
         same date as in clause (A), the sum of the numerators used to determine
         (i) invested percentages for allocations with respect to Principal
         Collections (for all Group IV Series of Notes including all classes of
         such Series of Notes) and (ii) available subordinated amount
         percentages for allocations with respect to Principal Collections (for
         all Group IV Series of Notes that provide for credit enhancement in the
         form of overcollateralization); and

                  (ii) when used with respect to Group IV Principal Collections
         during the Series 2002-1 Rapid Amortization Period, the percentage
         equivalent of a fraction, the numerator of which shall be an amount
         equal to the sum of (x) the Series 2002-1 Invested Amount and (y) the
         Series 2002-1 Available Subordinated Amount, in each case as of the end
         of the Series 2002-1 Revolving Period, and the denominator of which
         shall be the greater of (A) the Aggregate Asset Amount as of the end of
         the second preceding Related Month and (B) as of the same date as in
         clause (A), the sum of the numerators used to determine (i) invested
         percentages for allocations with respect to Principal Collections (for
         all Group IV Series of Notes including all classes of such Series of
         Notes) and (ii) available

                                       29
<PAGE>

         subordinated amount percentages for allocations with respect to
         Principal Collections (for all Group IV Series of Notes that provide
         for credit enhancement in the form of overcollateralization).

                  (iii) when used with respect to Group IV Interest Collections,
         the percentage equivalent of a fraction the numerator of which shall be
         the Accrued Amounts with respect to the Series 2002-1 Note on such date
         of determination and the denominator of which shall be the aggregate
         Accrued Amounts with respect to the Group IV Series of Notes on such
         date of determination.

         "Series 2002-1 Investor Monthly Servicing Fee" means, on any
Distribution Date, one-twelfth of 1.0% of the Series 2002-1 Invested Amount as
of the preceding Distribution Date (or, in the case of the initial Distribution
Date, the Series 2002-1 Issuance Date).

         "Series 2002-1 Issuance Date" means August 6, 2002.

         "Series 2002-1 Lease Payment Deficit" means, for any Related Month, an
amount equal to (a) the excess, if any, of (i) the aggregate amount of payments
required to be made under the Group IV Master Lease with respect to the Related
Month, over (ii) the aggregate amount of payments actually made under the Group
IV Master Lease during the Related Month times (b) the Series 2002-1 Invested
Percentage (determined in accordance with clause (iii) of the definition thereof
in the case of Monthly Variable Rent or Monthly Finance Rent, as applicable, and
otherwise determined in accordance with clause (i) of the definition thereof at
any time during the Series 2002-1 Revolving Period and in accordance with clause
(ii) of the definition thereof at any time during the Series 2002-1 Rapid
Amortization Period).

         "Series 2002-1 Letter of Credit Amount" means, as of any date, the sum
of (a) the aggregate amount available to be drawn on such date under the
outstanding Letters of Credit, in each case as specified therein, and (b) if the
Series 2002-1 Cash Collateral Account has been established and funded, the
amount on deposit in the Series 2002-1 Cash Collateral Account on such date
(excluding any earnings on investments of amounts on deposit therein to the
extent such earnings are excluded for purposes of determining availability of
funds or balances in the Series 2002-1 Cash Collateral Account pursuant to
Section 5.10(b)(ii) of this Supplement). The Series 2002-1 Letter of Credit
Amount is the "Letter of Credit Amount" for the Series 2002-1 Note.

         "Series 2002-1 Letter of Credit Expiration Date" means, with respect to
any Letter of Credit, the date such Letter of Credit expires as set forth
therein.

         "Series 2002-1 Limited Liquidation Event of Default" means, so long as
such event or condition continues, any event or condition of the type specified
in Section 6.1 of this Supplement that continues beyond any cure period provided
for therein.

                                       30
<PAGE>

         "Series 2002-1 Liquidity Amount" means, as of any date of
determination, the sum of (a) the Series 2002-1 Letter of Credit Amount and (b)
the Cash Liquidity Amount, in each case, on such date.

         "Series 2002-1 Maximum Invested Amount"  means $750,000,000.

         "Series 2002 MTNs" means the rental car asset backed medium term notes
to be issued by TFFC or another Affiliate of Budget in a principal amount of at
least $750 million, rated by S&P and Moody's, the proceeds of which will, to the
extent necessary, be used to refinance the Series 2002-1 Note.

         "Series 2002-1 Minimum Credit Support Amount" means, with respect to
the Series 2002-1 Note on any day, the sum of (a) the Series 2002-1 Minimum Type
I Credit Support Amount, plus (b) the Series 2002-1 Minimum Non-Type I Credit
Support Amount, plus (c) the Additional Overcollateralization Amount on such
day.

         "Series 2002-1 Minimum Non-Type I Credit Support Amount" means, with
respect to the Series 2002-1 Note on any day, the product of (x) the Series
2002-1 Minimum Non-Type I Credit Support Percentage times (y) a dollar amount
equal to the product of (1) the Aggregate Principal Balance of the Series 2002-1
Note as of such date, minus the aggregate amount of cash and Permitted
Investments in the Series 2002-1 Collection Account on such date and (2) the
Group IV Non-Type I Percentage as of such date.

         "Series 2002-1 Minimum Non-Type I Credit Support Percentage" means,
with respect to any date of determination, the greater of (a) an amount equal to
(i) 100% minus (ii) an amount equal to (x) Market Value Adjustment Percentage as
of the most recent Determination Date minus (y) 15%, and (b) 15%.
Notwithstanding the foregoing, the percentage referred to in clause (a)(y) and
clause (b) of the preceding sentence shall be increased as follows: (x) to 16%
if the DB MTN Engagement has not occurred on or before December 31, 2002; (y) to
16.5% on March 1, 2003; and (z) to 18% on April 1, 2003.

         "Series 2002-1 Minimum Type I Credit Support Amount" means, with
respect to the Series 2002-1 Note on any day, the product of (x) the Series
2002-1 Minimum Type I Credit Support Percentage times (y) a dollar amount equal
to the product of (1) the Aggregate Principal Balance of the Series 2002-1 Note
as of such date, minus the aggregate amount of cash and Permitted Investments in
the Series 2002-1 Collection Account on such date and (2) the Group IV Type I
Repurchase Percentage as of such date.

         "Series 2002-1 Minimum Type I Credit Support Percentage" means 15%.
Notwithstanding the foregoing, such percentage shall be increased as follows:
(x) to 16% if the DB MTN Engagement has not occurred on or before December 31,
2002; (y) to 16.5% on March 1, 2003; and (z) to 18% on April 1, 2003.

                                       31
<PAGE>

         "Series 2002-1 Monthly Supplemental Servicing Fee" means, on any
Distribution Date, the product of (a) the Supplemental Servicing Fee accrued on
such date and (b) a fraction, the numerator of which shall be the Series 2002-1
Invested Amount on such Distribution Date and the denominator of which shall be
the sum (without duplication) of (i) the aggregate of the invested amounts for
all outstanding Series of Notes (including non-segregated Series) on such
Distribution Date plus (ii) the aggregate of all Budget Interest Amounts
(including available subordinated amounts, if any) for all outstanding Series of
Notes (including non-segregated Series).

         "Series 2002-1 Note" means the Variable Funding Rental Car Asset Backed
Note executed by TFFC and authenticated and delivered by or on behalf of the
Trustee, substantially in the form of Exhibit A.

         "Series 2002-1 Note Interest" means, with respect to any Distribution
Date, the sum of the Daily Interest Amounts for each day in the related Series
2002-1 Interest Period, plus all previously accrued and unpaid Series 2002-1
Note Interest (together with interest on such unpaid amounts, to the extent
permitted by law, at the Series 2002-1 Note Rate), plus all accrued Series
2002-1 Carrying Charges due to the Series 2002-1 Noteholders in respect of such
Series 2002-1 Interest Period (or any prior Series 2002-1 Interest Period) and
unpaid as of such Distribution Date.

         "Series 2002-1 Note Purchase Agreement" means the Series 2002-1 Note
Purchase Agreement, dated as of August 6, 2002, among TFFC, as borrower, Budget,
as servicer, the Series 2002-1 Note Purchaser and the Agent, as such agreement
may be amended, supplemented, amended and restated or otherwise modified from
time in accordance with the terms thereof.

         "Series 2002-1 Note Purchaser" has the meaning specified in the Series
2002-1 Note Purchase Agreement.

         "Series 2002-1 Note Rate" means, for any Series 2002-1 Interest Period,
the weighted average of the Eurodollar Rates applicable to the portion of the
Series 2002-1 Invested Amount comprised of the Eurodollar Tranche and the
weighted average of the Base Rates applicable to the portion of the Series
2002-1 Invested Amount comprised of the Base Rate Tranche; provided, however,
that the Series 2002-1 Note Rate will in no event be higher than the maximum
rate permitted by applicable law. Capitalized terms used in this definition not
otherwise defined herein shall have the meanings specified in the Series 2002-1
Note Purchase Agreement.

         "Series 2002-1 Noteholder" means a Person in whose name the Series
2002-1 Note is registered in the Note Register.

         "Series 2002-1 Principal Allocation" shall mean, on any date, the
amount allocated to Series 2002-1 Collections pursuant to clause (a) of the
definition thereof.

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<PAGE>

         "Series 2002-1 Rapid Amortization Period" means the period beginning on
the earlier of (x) the close of business on the Business Day immediately
preceding the day on which an Amortization Event is deemed to have occurred with
respect to the Series 2002-1 Note and (y) the Series 2002-1 Termination Date,
and ending upon the earlier to occur of (i) the date on which the Series 2002-1
Note is fully paid and (ii) the termination of the Indenture.

         "Series 2002-1 Required Demand Note Amount" means, on any date of
determination, four percent (4%) of the Series 2002-1 Invested Amount as of such
date.

         "Series 2002-1 Revolving Period" means the period from and including
the Series 2002-1 Issuance Date to the commencement of the Series 2002-1 Rapid
Amortization Period.

         "Series 2002-1 Termination Date" means the Commitment Termination Date,
as defined in the Note Purchase Agreement.

         "Servicer" means Budget Group, Inc. or any successor servicer
hereunder.

         "Termination Payments" has the meaning specified in Section 11.3 of the
Group IV Master Lease.

         "Termination Value" means, with respect to any Group IV Vehicle, as of
any date, an amount equal to (i) the Capitalized Cost of such Group IV Vehicle
minus (ii) all Depreciation Charges accrued with respect to such Group IV
Vehicle prior to such date.

         "Texas Vehicle" means a Group IV Vehicle financed by TFFC on or after
the Lease Commencement Date for lease under Annex B of the Group IV Master Lease
in the State of Texas; provided, however, that, on any date after the Closing
Date, the Group IV Vehicles leased under the Group IV Lease for use in the State
of Texas under Annex B of the Group IV Lease may be converted by TFFC and the
Group IV Lessees upon (i) written notice to the Trustee specifying the date of
such transfer, (ii) the execution of appropriate documentation evidencing the
sale of such vehicles to TFFC and (iii) the appropriate adjustment of future
rent in respect of such vehicles under the Group IV Master Lease, and on and
after such specified date, such Vehicles shall no longer be referred to as
"Texas Vehicles" for the purposes of this Supplement and the other Related
Documents.

         "TFFC Agreements" means the collective reference to the documents
referred to in clause (i) of the definition of TFFC Agreements in Schedule 1 to
the Indenture and the Group IV TFFC Agreements.

         "TFFC Obligations" means all principal and interest, at any time and
from time to time, owing by TFFC on the Series 2002-1 Note and all costs, fees
and expenses payable by, or obligations of, TFFC under the Indenture and the
Related Documents in respect of the Series 2002-1 Note.

                                       33
<PAGE>

         "Toyota" means Toyota Motor Sales, U.S.A., Inc.

         "Turnback Date" means, with respect to any Group IV Repurchase Vehicle,
the date on which such Group IV Vehicle is sold at auction or accepted for
return by a Manufacturer or its agent pursuant to its Repurchase Program and, in
each case, the Depreciation Charges cease to accrue pursuant to its Repurchase
Program.

         "Type I Maximum Term" has the meaning set forth in Section 3.1 of the
Group IV Master Lease.

         "Type I Minimum Term" has the meaning set forth in Section 3.1 of the
Group IV Master Lease.

         "Type II Maximum Term" has the meaning set forth in Section 3.2 of the
Group IV Master Lease.

         "Type II Minimum Term" has the meaning set forth in Section 3.3 of the
Group IV Master Lease.

         "Type II Repurchase Vehicle Value" means, with respect to any Group IV
Type II Repurchase Vehicle, the lesser of (a) the Net Book Value of such Group
IV Type II Repurchase Vehicle and (b) the Fair Market Value (as defined in the
Base Indenture) of such Group IV Type II Repurchase Vehicle (calculated as if
such Group IV Type II Repurchase Vehicle were a Non-Repurchase Vehicle (as
defined in the Base Indenture)).

         "Vehicle" means a passenger automobile, van, light truck (including
vans) or other type of vehicle approved by each Rating Agency, the Series 2002-1
Note Purchaser and the Letter of Credit Provider purchased or financed by TFFC.

         "Vehicle Lease Commencement Date" has the meaning specified in Section
3.2 of the Group IV Master Lease.

         "Vehicle Purchase Price" has the meaning specified in Paragraph 6 of
Annex A to the Group IV Master Lease.

         "Vehicle Term" has the meaning specified in Section 3.1 of the Group IV
Master Lease in respect of Group IV Type I Repurchase Vehicles, Section 3.2 of
the Group IV Master Lease in respect of Group IV Type II Repurchase Vehicles and
Section 3.3 of the Group IV Master Lease in respect of Group IV Non-Repurchase
Vehicles.

         "VFR" with respect to the Group IV Master Lease, is defined in
Paragraph 9 of Annex A to the Group IV Master Lease and in Paragraph 6 of Annex
B to the Group IV Master Lease.

         "Voluntary Decrease" has the meaning specified in Section 4.3(b).

                                       34
<PAGE>

                                    ARTICLE 3

                           SECURITY; REPORTS; COVENANT

         Section 3.1 Grant of Security Interest.

         (a) To secure the Group IV Series of Notes and the TFFC Obligations,
TFFC hereby pledges, assigns, conveys, delivers, transfers and sets over to the
Trustee, for the benefit of the Group IV Noteholders and the holder of the
Budget Interest (the Group IV Noteholders and the holder of the Budget Interest
being referred to in this Section 3.1 as the "Secured Parties"), and hereby
grants to the Trustee, for the benefit of the Secured Parties, a security
interest in all of TFFC's right, title and interest in and to all of the
following assets, property and interests of TFFC (other than as specified below)
whether now owned or hereafter acquired or created (all of the foregoing being
referred to as the "Group IV Collateral"):

                  (i) the rights of TFFC under the Group IV Master Lease
         (including rights against any guarantor of obligations of the Lessees
         thereunder) and any other agreements relating to the Group IV Vehicles
         to which TFFC is a party other than the Repurchase Programs
         (collectively, the "Group IV TFFC Agreements"), including, without
         limitation, all monies due and to become due to TFFC from Budget and
         the Lessees under or in connection with the Group IV TFFC Agreements,
         whether payable as rent, guaranty payments, fees, expenses, costs,
         indemnities, insurance recoveries, damages for the breach of any of the
         Group IV TFFC Agreements or otherwise, and all rights, remedies,
         powers, privileges and claims of TFFC against any other party under or
         with respect to the Group IV TFFC Agreements (whether arising pursuant
         to the terms of such Group IV TFFC Agreements or otherwise available to
         TFFC at law or in equity), including the right to enforce any of the
         Group IV TFFC Agreements as provided in the Indenture and to give or
         withhold any and all consents, requests, notices, directions,
         approvals, extensions or waivers under or with respect to the Group IV
         TFFC Agreements or the obligations of any party thereunder;

                  (ii) all Group IV Vehicles owned by TFFC or the Lessees as of
         the Series 2002-1 Issuance Date and all Group IV Vehicles acquired by
         TFFC or the Lessees or refinanced by TFFC during the term of the
         Indenture, and all Certificates of Title with respect to such Group IV
         Vehicles, (B) all Liens and property from time to time purporting to
         secure payment of any of the obligations or liabilities of the Lessees
         or Budget arising under or in connection with the Group IV Master
         Lease, together with all financing statements filed in favor of, or
         assigned to, TFFC describing any collateral securing such obligations
         or liabilities, and (C) all guarantees, insurance and other agreements
         or arrangements of whatever character from time to time supporting or
         securing payment of such obligations and liabilities of the Lessees or
         Budget pursuant to the Group IV Master Lease;

                                       35
<PAGE>

                  (iii) all right, title and interest of TFFC in, to and under
         any Repurchase Programs relating to, and all monies due and to become
         due in respect of, the Group IV Repurchase Vehicles purchased from the
         Manufacturers under or in connection with the Repurchase Programs
         whether payable as Group IV Repurchase Vehicle repurchase prices or
         guaranteed payments, auction sale prices, fees, expenses, costs,
         indemnities, insurance recoveries, damages for breach of the Repurchase
         Programs or otherwise;

                  (iv) (A) the Group IV Collection Account, (B) all funds on
         deposit therein or in the Collection Account allocable to Group IV
         Vehicles from time to time, (C) all certificates and instruments, if
         any, representing or evidencing any or all of the Collection Account
         and the Group IV Collection Account or the funds on deposit therein
         allocable to Group IV Vehicles from time to time, and (D) all Permitted
         Investments made at any time and from time to time with the moneys
         allocable to Group IV Vehicles in the Collection Account or the Group
         IV Collection Account (including in each case income thereon),
         including, without limitation, any and all accounts, certificates,
         instruments and investments constituting "investment property" as
         defined in the UCC as in effect from time to time in the State of New
         York; and

                  (v) all proceeds of any and all of the foregoing including,
         without limitation, payments under insurance (whether or not-the
         Trustee is the loss payee thereof) and cash, but not including (for the
         avoidance of doubt) payments under consumer rental agreements;

provided, however, the Group IV Collateral shall not include (x) any Excluded
Payments or (y) the Budget Distribution Account, any funds on deposit therein
from time to time, any certificates or instruments, if any, representing or
evidencing any or all of the Budget Distribution Account or the funds on deposit
therein from time to time, or any Permitted Investments made at any time and
from time to time with the moneys in the Budget Distribution Account (including
the income thereon).

         (b) To further secure the TFFC Obligations with respect to the Series
2002-1 Note (but not any other Series of Notes), TFFC hereby pledges, assigns,
conveys, delivers, transfers and sets over to the Trustee for the benefit of the
Series 2002-1 Noteholders (but not any other Series of Notes), and hereby grants
to the Trustee for the benefit of the Series 2002-1 Noteholders, a security
interest in all of TFFC's right, title and interest in and to all of the
following assets, property and interests in property, whether now owned or
hereafter acquired or created (all of the foregoing being referred to as the
"Series 2002-1 Collateral"):

                  (i)      the Series 2002-1  Collection  Account and the Series
         2002-1 Distribution Account;

                  (ii)     all funds on deposit in the Series 2002-1  Collection
         Account and the Series 2002-1 Distribution Account from time to time;

                                       36
<PAGE>

                  (iii) all certificates and instruments, if any, representing
         or evidencing any or all of the Series 2002-1 Collection Account and
         the Series 2002-1 Distribution Account or the funds on deposit therein
         from time to time;

                  (iv) all Permitted Investments made at any time and from time
         to time with moneys in the Series 2002-1 Collection Account or the
         Series 2002-1 Distribution Account;

                  (v)      the Letters of Credit

                  (vi)     the Demand Note;

                  (vii) (A) the Series 2002-1 Cash Collateral Account; (B) all
         funds on deposit therein from time to time; (C) all certificates and
         instruments, if any, representing or evidencing any or all of the
         Series 2002-1 Cash Collateral Account or the funds on deposit therein
         from time to time; and (D) all investments made at any time and from
         time to time with moneys in the Series 2002-1 Cash Collateral Account;
         and

                  (viii)   all  proceeds  of  any  and  all  of  the  foregoing,
         including, without limitation, cash.

         (c) The Trustee, on behalf of the Group IV Noteholders or the Series
2002-1 Noteholders, as applicable, acknowledges the foregoing grant, accepts the
trusts under this Supplement in accordance with the provisions of the Indenture
and this Supplement and agrees to perform its duties required in this Supplement
to the best of its abilities to the end that the interests of the Series 2002-1
Noteholders or, as applicable, the Group IV Noteholders may be adequately and
effectively protected. The Group IV Collateral shall secure the Notes included
in the Group IV Series of Notes. The Series 2002-1 Collateral shall secure the
Series 2002-1 Note.

         Section 3.2 Reports. Not later than the second business Day immediately
preceding each Distribution Date, the Servicer shall furnish to the Trustee and
each Series 2002-1 Noteholder a Monthly Servicer's Certificate and a Fleet
Report with respect to the Group IV Collateral.

         Section 3.3 Capitalization Demand Note. TFFC has been capitalized in
part by a Demand Note on the Closing Date in an initial amount of $110,000,000.
At all times while the Series 2002-1 Note is outstanding, TFFC shall maintain
the Demand Note in an amount at least equal to the Series 2002-1 Required Demand
Note Amount. TFFC shall not forgive, reduce, cancel or otherwise modify the
amount of the Demand Note or Budget's obligations thereunder except as expressly
provided in Section 5.9 of this Supplement.

                                       37
<PAGE>

                                    ARTICLE 4

                 INITIAL ISSUANCE AND INCREASES AND DECREASES OF
               SERIES 2002-1 INVESTED AMOUNT OF SERIES 2002-1 NOTE

         Section 4.1 Issuance in Definitive Form. Pursuant to Section 2.18 of
the Base Indenture, TFFC hereby consents to the issuance of the Series 2002-1
Note in the form of a Definitive Note. The Series 2002-1 Note shall be sold
pursuant to the Series 2002-1 Note Purchase Agreement in reliance on an
exemption from the registration requirements of the Securities Act, and shall be
issued in the form of one or more Definitive Notes, in fully registered form
without interest coupons, substantially in the form attached hereto as Exhibit
A, with such legends as may be applicable thereto, duly executed by TFFC and
authenticated by the Trustee as provided in Section 2.4 of the Base Indenture,
in an aggregate stated principal amount of up to $750,000,000.

         Section 4.2 Procedure for Increasing the Invested Amount.

         (a) Subject to satisfaction of the conditions precedent set forth in
subsection (b) of this Section 4.2 (as evidenced by an Officer's Certificate of
the Servicer delivered to the Trustee), on the Series 2002-1 Issuance Date, TFFC
may issue the Series 2002-1 Note in the stated amount described in Section 4.1,
the initial aggregate principal amounts of which will be equal to the Initial
Invested Amount. Such Series 2002-1 Note shall be issued to the Agent, as agent
for the Series 2002-1 Note Purchaser. On the Series 2002-1 Issuance Date and
thereafter on each Increase Date during the Series 2002-1 Revolving Period, TFFC
may, upon request by Budget under the Group IV Master Lease and upon prior
notice delivered by TFFC to the Agent and the Trustee in writing no later than
10:00 a.m. on the Business Day of such increase (such notice specifying the
applicable Increase Date), increase the Series 2002-1 Invested Amount (each such
increase referred to as an "Increase") by issuing, at par, additional Series
2002-1 Invested Amount of the Series 2002-1 Note in amounts that satisfy the
following requirements: (i) the portion of the Increase represented by
additional Series 2002-1 Invested Amount shall be such that the Series 2002-1
Credit Support Amount shall at least equal the Series 2002-1 Minimum Credit
Support Amount after giving effect to such Increase in the Series 2002-1
Invested Amount and the application of the proceeds thereof to leasing Group IV
Vehicles; (ii) application of the proceeds from such Increase to leasing Group
IV Vehicles shall not cause (a) the Aggregate Group IV Type II Repurchase Asset
Amount to exceed the Maximum Type II Repurchase Vehicle Percentage of the
Aggregate Asset Amount or (b) the Aggregate Group IV Non-Repurchase Asset Amount
to exceed the Maximum Non-Repurchase Vehicle Percentage of the Aggregate Asset
Amount; and (iii) no Asset Amount Deficiency will result from such Increase or
will otherwise exist. Satisfaction of the above conditions shall be evidenced by
the delivery of a certificate from the Servicer to such effect. Proceeds from
any Increase shall be deposited into the Series 2002-1 Collection Account and
allocated in accordance with Article 5 hereof. Upon each Increase, the Trustee
shall, or shall cause the Note Registrar to, indicate in the Note Register such
Increase.

                                       38
<PAGE>

         (b) The Series 2002-1 Invested Amount may be increased pursuant to
subsection (a) above only upon satisfaction of each of the following conditions
(as evidenced by an Officers' Certificate delivered by TFFC to the Trustee) with
respect to each proposed Increase:

                  (i)      The  amount  of such  Increase  shall  be equal to or
         greater than $100,000;

                  (ii) After giving effect to such Increase, the Series 2002-1
         Invested Amount shall not exceed the Series 2002-1 Maximum Invested
         Amount;

                  (iii) There shall not then exist, nor shall such Increase
         result in the occurrence of, (x) an Amortization Event with respect to
         the Series 2002-1 Note or a Series 2002-1 Limited Liquidation Event of
         Default, or (y) an event or occurrence, which, with the passing of time
         or the giving of notice thereof, or both, would become an Amortization
         Event with respect to the Series 2002-1 Note or a Series 2002-1 Limited
         Liquidation Event of Default;

                  (iv) All conditions precedent (1) to the acquisition of
         additional Group IV Vehicles under the Group IV Master Lease and (2) to
         the making of Advances under the Series 2002-1 Note Purchase Agreement
         shall have, in each case, been satisfied;

                  (v) TFFC (with respect to Lessor-Owned Vehicles) or the
         applicable Lessee (with respect to Financed Vehicles) shall have good
         and marketable title to each Group IV Vehicle purchased by it with the
         proceeds of the Series 2002-1 Note, free and clear of all Liens and
         encumbrances, other than any Permitted Liens. Each Repurchase Program
         shall be in full force and effect, and shall be enforceable against the
         related Manufacturer in accordance with its terms;

                  (vi) Each Lessee shall have granted to TFFC, for the benefit
         of the Trustee, and TFFC shall have granted to the Trustee, in each
         case for the benefit of the Series 2002-1 Noteholders, a first priority
         security interest in all Group IV Vehicles now or hereafter purchased,
         financed or refinanced by TFFC with the proceeds of the Series 2002-1
         Note or with any contributions of capital made by Budget in favor of
         TFFC;

                  (vii) TFFC shall have granted to the Trustee a first priority
         security interest in its right, title and interest in and to the Group
         IV Master Lease, the Group IV Collateral and the Series 2002-1
         Collateral;

                  (viii) The Trustee shall have received a copy of each
         Repurchase Program under which Group IV Vehicles will be or have been
         purchased and are proposed to be included in the Aggregate Asset Amount
         and an Officer's Certificate, dated the Series 2002-1 Issuance Date,
         and duly executed by an

                                       39
<PAGE>

         Authorized Officer of TFFC, certifying that each such copy is true,
         correct and complete as of the Series 2002-1 Issuance Date;

                  (ix) All representations and warranties set forth in Article 7
         of the Base Indenture (as modified by Article 7 hereof) and in Section
         28 of the Group IV Master Lease shall be true and correct on and as of
         the date of such Increase as if made on and with respect to the date of
         such Increase; and

                  (x) With respect to the initial Increase only, the Servicer
         shall have calculated the Series 2002-1 Available Subordinated Amount
         and the Trustee shall have confirmed receipt of such written
         calculation.

         Section 4.3 Decreases.

         (a) Mandatory Decreases. Whenever (i) the Series 2002-1 Credit Support
Amount is less than the Series 2002-1 Minimum Credit Support Amount, (ii) an
Asset Amount Deficiency exists, or (iii) the Aggregate Principal Balance of the
Series 2002-1 Note exceeds the Series 2002-1 Maximum Invested Amount, TFFC shall
pay down the Series 2002-1 Invested Amount of the Series 2002-1 Note by the
amount necessary, so that after giving effect to all Decreases of the Series
2002-1 Invested Amount on such date, no such deficiency or excess (as
applicable) shall exist (each reduction of the Series 2002-1 Invested Amount
pursuant to this Section 4.3(a), a "Mandatory Decrease"). Upon such discovery,
TFFC shall deliver notice of any such Mandatory Decreases to the Trustee.

         (b) Voluntary Decreases. Upon prior irrevocable notice delivered by
TFFC to the Agent and the Trustee in writing no later than 10:00 a.m. on the
Business Day of such reduction, TFFC may voluntarily prepay all or a portion of
the Series 2002-1 Invested Amount in accordance with the procedures set forth
herein (including, without limitation, in Section 5.5(c) hereof) and, as
applicable, in the Series 2002-1 Note Purchase Agreement (each reduction of the
Series 2002-1 Invested Amount pursuant to this Section 4.3(b), a "Voluntary
Decrease"); provided, that all Voluntary Decreases pursuant to this Section
4.3(b) shall be allocated such that (1) the Series 2002-1 Credit Support Amount
after giving effect to such Decrease is not less than the Series 2002-1 Minimum
Credit Support Amount. Each such Decrease shall be in a minimum principal amount
of $1,000,000 and increments of $100,000 in excess thereof.

         (c) Upon receipt by a Responsible Officer of the Trustee of written
notice that a Decrease has been completed, the Trustee shall, or shall cause the
Note Registrar to, indicate in the Note Register such Decrease. The amount of
any Decrease shall not exceed the amount on deposit in the Series 2002-1
Collection Account and available for distribution to Series 2002-1 Noteholders
in respect of principal on the Series 2002-1 Note on the date specified in the
related notice of Decrease referred to in clauses (a) and (b) above, as
applicable.

                                       40
<PAGE>

                                    ARTICLE 5

                            SERIES 2002-1 ALLOCATIONS

         Any provisions of Article 5 of the Base Indenture which allocate and
apply Collections shall continue to apply irrespective of the issuance of the
Series 2002-1 Note. Sections 5.1 through 5.5 of the Base Indenture shall be read
in their entirety as provided in the Base Indenture, provided that for purposes
of the Series 2002-1 Note, clause (d) of Section 5.2 of the Base Indenture shall
be modified, as it applies to the Series 2002-1 Note, as permitted by Section
12.1(f) of the Base Indenture and shall read as follows:

         (d) Sharing Collections. To the extent that Group IV Principal
Collections that are allocated to the Series 2002-1 Invested Percentage on a
Distribution Date are not needed to make payments of principal to Series 2002-1
Noteholders or required to be deposited in the Series 2002-1 Distribution
Account on such Distribution Date, such Principal Collections may, at the
written direction of the Servicer, be applied to cover principal payments due to
or for the benefit of Noteholders of other Group IV Series of Notes. Any such
reallocation will not result in a reduction of the Aggregate Principal Balance
or the Series 2002-1 Invested Amount.

         In addition, for purposes of Section 5.2(a) of the Base Indenture, the
Servicer, in its capacity as such under the Group IV Master Lease, shall (to the
extent practicable) cause all Collections allocable to Group IV Collateral in
accordance with the Indenture to be paid directly into the Group IV Collection
Account and all Collections allocable to the Series 2002-1 Collateral to be paid
directly into the Series 2002-1 Collection Account.

         Article 5 of the Base Indenture (except for Sections 5.1 through 5.5
thereof (which shall remain in addition to the provisions hereof) subject to the
proviso in the first paragraph of this Article 5 and subject to the immediately
preceding sentence) shall read in its entirety as follows and shall be
applicable only to the Series 2002-1 Note:

         Section 5.1 Establishment of the Group IV Collection Account, Series
2002-1 Collection Account, Series 2002-1 Accrued Interest Account, Series 2002-1
Excess Funding Account.

         (a) The Trustee acknowledges that it has established and maintains a
segregated trust account for the benefit of holders of Notes from the Group IV
Series of Notes (the "Group IV Collection Account"). The Trustee will also
establish and maintain a segregated trust account for the benefit of the Series
2002-1 Noteholders (the "Series 2002-1 Collection Account"). Amounts on deposit
in the Group IV Collection Account and the Series 2002-1 Collection Account
shall be invested in accordance with Sections 5.1(d) and (f) of the Base
Indenture.

         (b) The Trustee will establish and maintain two administrative
sub-accounts within the Series 2002-1 Collection Account, the Series 2002-1
Accrued Interest Account (such sub-account, the "Series 2002-1 Accrued Interest
Account") and the Series 2002-1

                                       41
<PAGE>

Excess Funding Account (such sub-account, the "Series 2002-1 Excess Funding
Account"). The Trustee will further divide the Series 2002-1 Excess Funding
Account by creating an additional administrative sub-account for the benefit of
the Series 2002-1 Noteholders and the Budget Interestholder (such sub-account,
the "Series 2002-1 Cash Liquidity Account").

         (c) All Group IV Collections shall initially be deposited into the
Collection Account and immediately thereafter shall be allocated to and
deposited in the Group IV Collection Account.

         (d) All Group IV Collections that are deposited on any Business Day in
the Group IV Collection Account and that are Series 2002-1 Collections shall on
each such Business Day be allocated to and deposited in the Series 2002-1
Collection Account. All amounts received in respect of the Series 2002-1
Collateral shall be allocated to and deposited in the Series 2002-1 Collection
Account.

         (e) Any amounts in the Group IV Collection Account not allocated to the
Series 2002-1 Collection Account or another series-specific collection account
under the supplements for the other Group IV Series of Notes shall be allocated
by the Trustee at the written direction of the Servicer to the Budget
Distribution Account in an amount equal to (x) the applicable Budget Interest
Percentage (as of such date) of the aggregate amount of Group IV Collections
that are Group IV Principal Collections received on such date, minus (y) any
amounts, other than Servicing Fees, which have been withheld by the Servicer
pursuant to Section 5.2(c) of the Base Indenture to the extent such amounts
withheld under Section 5.2(c) of the Base Indenture represent all or part of the
Budget Interest Amount.

         Section 5.2 Allocations with Respect to the Series 2002-1 Note. The
proceeds from the sale of the Series 2002-1 Note, together with any funds
deposited with TFFC by Budget, in its capacity as the Budget Interestholder,
will initially be delivered by or on behalf of TFFC to the Trustee and deposited
in the Series 2002-1 Collection Account and, concurrently with such deposit,
allocated by the Trustee to the Series 2002-1 Excess Funding Account. On each
Business Day on which Collections or the proceeds of any Increase are deposited
into the Group IV Collection Account and allocated to the Series 2002-1
Collection Account or deposited in the Series 2002-1 Collection Account (each
such date, a "Deposit Date"), the Servicer will direct the Trustee in writing to
allocate all amounts allocated to or deposited in the Series 2002-1 Collection
Account in accordance with the provisions of this Section 5.2.

         (a) Allocations During the Revolving Period. During the Series 2002-1
Revolving Period, the Servicer will direct the Trustee in writing to allocate,
prior to 1:00 p.m. (New York City time) on each Deposit Date, all amounts
deposited into the Series 2002-1 Collection Account as set forth below:

                  (i) allocate to the Series 2002-1 Accrued Interest Account,
         from the Series 2002-1 Interest Collections received on such date, an
         amount, as stated in

                                       42
<PAGE>

         such Servicer direction, equal to the Series 2002-1 Note Interest and
         all other Series 2002-1 Carrying Charges accrued and unpaid as of such
         date less any funds on deposit on such date in the Series 2002-1
         Accrued Interest Account (the "Series 2002-1 Interest Allocation");
         provided, however, that if on any Deposit Date the Series 2002-1
         Interest Collections allocated to the Series 2002-1 Collection Account
         on such date exceed the Series 2002-1 Interest Allocation as of such
         date, then the amount of such excess shall be (x) deposited into the
         Series 2002-1 Excess Funding Account (and further allocated to and
         deposited in the Series 2002-1 Cash Liquidity Account up to the amount
         by which the excess of the Minimum Liquidity Amount over the Letter of
         Credit Amount, if any, exceeds the Cash Liquidity Amount prior to such
         deposit) and (y) available on such Deposit Date for application in
         accordance with clauses (A) through (D) below; provided further that
         only amounts on deposit in the Series 2002-1 Excess Funding Account in
         excess of the Cash Liquidity Amount shall be available for application
         in accordance with clause (B) below;

                           (A) to the extent a Mandatory Decrease is required
                  under Section 4.3(a), allocate to the Series 2002-1
                  Distribution Account for the payment of the Series 2002-1
                  Invested Amount, the amount, as stated in such Servicer
                  direction, necessary for such Mandatory Decrease;

                           (B) make available to TFFC an amount, as stated in
                  such Servicer direction, equal to any Master Lease Advances
                  that are in accordance with the requirements of and conditions
                  precedent under the Group IV Master Lease;

                           (C) allocate to the Series 2002-1 Distribution
                  Account the amount, as stated in such Servicer direction, of
                  any Voluntary Decreases in the Series 2002-1 Invested Amount
                  to be made in accordance with Section 4.3(b) hereof; and

                           (D) the amounts remaining in the Series 2002-1 Excess
                  Funding Account on such Deposit Date after application
                  pursuant to clauses (A), (B), and (C) above shall be retained
                  on deposit and shall be available on such Deposit Date and/or
                  on future Deposit Dates for application in accordance with
                  this Section 5.2 or otherwise in accordance with this Article
                  5 (subject to any limitations relating to the amounts on
                  deposit in the Series 2002-1 Cash Liquidity Account herein);

                  (ii) allocate to the Series 2002-1 Excess Funding Account an
         amount equal to the Series 2002-1 Principal Allocation for such day for
         further allocation and application in accordance Section 5.2(d) of the
         Base Indenture (as modified above) and with clauses (A) through (D) of
         Section 5.2(a)(i) of this Supplement or otherwise in accordance with
         this Article 5.

                                       43
<PAGE>

         (b) Allocations During the Series 2002-1 Rapid Amortization Period.
During the Series 2002-1 Rapid Amortization Period, the Servicer will direct the
Trustee in writing to allocate all Series 2002-1 Collections prior to 1:00 p.m.
(New York City time) on any Deposit Date, as set forth below:

                  (i) allocate to the Series 2002-1 Accrued Interest Account the
         Series 2002-1 Interest Allocation as of such date; provided, however,
         that if on any Deposit Date the Series 2002-1 Interest Collections
         allocated to the Series 2002-1 Collection Account on such date exceed
         the Series 2002-1 Interest Allocation as of such date, then the amount
         of such excess shall be retained on deposit in the Series 2002-1
         Collection Account and shall be available on such Deposit Date for
         application in accordance with clause (ii) below; and

                  (ii) allocate to the Series 2002-1 Distribution Account an
         amount equal to the Series 2002-1 Principal Allocation for such day,
         which amount, plus any excess allocated to the Series 2002-1 Collection
         Account pursuant to clause (i) above, shall be used to make principal
         payments in respect of the Series 2002-1 Note.

         (c)      Additional  Allocations  for All Periods.  The  Servicer  will
direct the  Trustee  in  writing to  allocate  the  amounts  set forth  below as
follows:

                  (x) Monthly, for each Distribution Date, allocate to the
         Series 2002-1 Note an amount, as stated in such Servicer direction,
         equal to the Series 2002-1 Invested Percentage (as of such date) of the
         aggregate amount of Losses for the Related Month in the following
         manner:

                           (i) First, reduce the Series 2002-1 Available
                  Subordinated Amount by the amount of such Losses until the
                  Series 2002-1 Available Subordinated Amount has been reduced
                  to zero;

                           (ii) Second, to the extent of any such Losses
                  remaining after making the allocations, withdrawals and claims
                  under clause (i) above that constitute Net Disposition Losses
                  the Trustee shall make a claim under the Demand Note pursuant
                  to Section 5.9 of this Supplement in an amount equal to the
                  lesser of (A) the remaining amount of such Net Disposition
                  Losses and (B) the outstanding principal amount of the Demand
                  Note; and

                           (iii) Third, any such Losses remaining after making
                  the allocations, withdrawals and claims under clauses (i) and
                  (ii) above will be allocated, as stated in such Servicer
                  direction, to reduce the Series 2002-1 Invested Amount.

                  (y)      Monthly,  for each Distribution Date, allocate to the
         Series  2002-1 Note an amount,  as stated in such  Servicer  direction,
         equal to the Series 2002-1

                                       44
<PAGE>

         Invested Percentage (as of such date) of the aggregate amount of
         Recoveries for the Related Month in the following manner:

                           (i) First, allocate all such Recoveries to reinstate
                  the Series 2002-1 Invested Amount, to the extent the Series
                  2002-1 Invested Amount has been reduced pursuant to Section
                  5.2(c)(x)(iii) above;

                           (ii) Second, allocate all remaining Recoveries after
                  making the allocations in clause (i) above up to the amount
                  necessary to reinstate the Series 2002-1 Cash Collateral
                  Account, to the extent of any unreimbursed draws thereon;
                  provided that, if, on such day when an allocation is made to
                  reinstate the Series 2002-1 Cash Collateral Account and such
                  Series 2002-1 Cash Collateral Account has been funded pursuant
                  to clause (i) or (ii) of Section 5.10(a), any Letter of Credit
                  is outstanding, such remaining Recoveries shall be allocated,
                  after making the allocations in clause (i) above, to reinstate
                  such Letter of Credit or Letters of Credit and the Series
                  2002-1 Cash Collateral Account to the extent of the
                  Reinstatement Pro Rata Share with respect to each such Letter
                  of Credit and the Series 2002-1 Cash Collateral Account of any
                  unreimbursed draws thereon or withdrawals therefrom, as the
                  case may be, as of such date and, in each such case pursuant
                  to Section 5.8(e) of this Supplement; provided, however, that,
                  if any such outstanding Letter of Credit cannot be reinstated
                  pursuant to the terms thereof as of such date, Recoveries
                  allocated to such Letter of Credit pursuant to the immediately
                  preceding proviso shall instead be allocated to further
                  reinstate or fund, as the case may be, the Series 2002-1 Cash
                  Collateral Account; provided further, however, that if the
                  Letter of Credit referred to in the immediately preceding
                  proviso can be reinstated pursuant to the terms of such Letter
                  of Credit subsequent to the allocation of such funds to the
                  Series 2002-1 Cash Collateral Account referred to in the
                  immediately preceding proviso, such funds, at the written
                  direction of the Servicer, may be withdrawn from the Series
                  2002-1 Cash Collateral Account and allocated to reinstate such
                  Letter of Credit;

                           (iii) Third, allocate all remaining Recoveries after
                  making the allocations in clauses (i) and (ii) above up to the
                  amount, as stated in such Servicer direction, necessary to
                  reinstate the Series 2002-1 Available Subordinated Amount to
                  an amount equal to the excess of Series 2002-1 Minimum Credit
                  Support Amount over the Series 2002-1 Letter of Credit Amount
                  on such date; and

                           (iv) Fourth, the amounts remaining in the Series
                  2002-1 Collection Account on such Deposit Date after
                  application pursuant to clauses (i), (ii) and (iii) above
                  shall be available on such Deposit Date and/or on future
                  Deposit Dates for application in accordance with this Section
                  5.2 (including 5.2(d) below) or otherwise in accordance with
                  this Article 5.

                                       45
<PAGE>

         (d)      Allocation   Adjustments.    Notwithstanding   the   foregoing
provisions of this Section 5.2:

                  (i) provided the Series 2002-1 Rapid Amortization Period has
         not commenced, amounts in excess of the Cash Liquidity Amount on
         deposit in the Series 2002-1 Excess Funding Account, if any, that are
         not required to make payments under the Series 2002-1 Note pursuant
         hereto may, as and to the extent permitted in the related Supplements,
         be used to pay the principal amount of other Group IV Series of Notes
         that are then in amortization and, after such payment, any remaining
         funds in excess of the Cash Liquidity Amount, if any, may, on any day
         at TFFC's option, be (A) used to finance, refinance or acquire Group IV
         Vehicles, to the extent requested by any of the Lessees under the Group
         IV Master Lease, (B) loaned to Budget under the Demand Note or (C)
         transferred to the Budget Distribution Account, to the extent that the
         Budget Interest Amount equals or exceeds zero after giving effect to
         such payment and so long as no Series 2002-1 Credit Support Deficiency
         or Asset Amount Deficiency exists or would result from such transfer;
         provided, however, that, in the case of clauses (B) and (C) above, the
         Servicer furnishes to the Trustee an Officer's Certificate to the
         effect that such transfer will not cause any of the foregoing
         deficiencies to occur either on the date that such transfer is made or,
         in the reasonable anticipation of the Servicer, on the next
         Distribution Date and setting forth in reasonable detail the
         calculations supporting such certification. Funds in the Budget
         Distribution Account shall, at the option of TFFC, be available to
         finance or acquire Group IV Vehicles, to the extent requested by any of
         the Lessees under the Group IV Master Lease, or for distribution to the
         Budget Interestholder;

                  (ii) the Servicer shall not be entitled to withhold any
         amounts pursuant to Section 5.2(c) of the Base Indenture and the
         Trustee shall deposit amounts payable to Budget in the Collection
         Account pursuant to the provisions of Section 5.2 of the Base Indenture
         on each Deposit Date;

                  (iii) TFFC may, from time to time in its sole discretion,
         increase the Series 2002-1 Available Subordinated Amount by (A) (x)
         transferring funds to the Series 2002-1 Excess Funding Account or (y)
         allocating to the Series 2002-1 Available Subordinated Amount Eligible
         Vehicles theretofore allocated to the Budget Interest, if any, and (B)
         delivering to the Servicer and the Trustee an Officers' Certificate
         setting forth the amount of such transferred funds or the Net Book
         Value of such Eligible Vehicles, as the case may be, stating that such
         transferred funds or Eligible Vehicles, as applicable, shall be
         allocated to the Series 2002-1 Available Subordinated Amount and, in
         the case of Eligible Vehicles, affirming with respect to such Eligible
         Vehicles the representations and warranties set forth in Section 7.14
         of the Base Indenture; provided, however, TFFC shall have no obligation
         to so increase the Series 2002-1 Available Subordinated Amount;

                                       46
<PAGE>

                  (iv) in the event that the Series 2002-1 Credit Support Amount
         is reduced to less than the Series 2002-1 Minimum Credit Support
         Amount, an Amortization Event and a Series 2002-1 Limited Liquidation
         Event of Default shall be deemed to have occurred with respect to the
         Series 2002-1 Note; provided, however, the Issuer may prevent an
         Amortization Event from occurring if, within the applicable grace
         period after the occurrence of such Series 2002-1 Credit Support
         Deficiency, the Series 2002-1 Available Subordinated Amount is
         increased by an amount sufficient, in the aggregate, to eliminate such
         Series 2002-1 Credit Support Deficiency;

                  (v) if, on any Distribution Date during the Series 2002-1
         Revolving Period, a Mandatory Decrease shall be required under Section
         4.3(a) of this Supplement and the amounts allocated to the Series
         2002-1 Distribution Account under Section 5.2(a)(i)(A) are less than
         the amount of such required Decrease, then, in such event, any funds on
         deposit in the collection accounts or excess funding accounts for other
         Group IV Series of Notes issued and outstanding under the Indenture
         which amounts are not allocable to the Budget Interest and are in
         excess of the amounts necessary to be on deposit in each such account
         in order that (x) no Asset Amount Deficiency (as defined herein or,
         with respect to other Series, as defined in the Base Indenture) occur
         with respect to any such Series, (y) no shortfall in the required level
         of enhancement occur with respect to any such Series, including any
         portion of such enhancement that is required to be in liquid funds, and
         (z) no Amortization Event for any such Series or event that with the
         giving of notice or passage of time would become an Amortization Event
         occur with respect to any such Group IV Series of Notes (such excess
         funds being referred to herein as "Excess Amounts") shall, in each such
         case, be deposited into the Series 2002-1 Distribution Account as Group
         IV Principal Collections in an aggregate amount up to the amount of any
         such deficiency and shall be used, in accordance with Section 5.5, to
         reduce the Series 2002-1 Invested Amount; and

                  (vi) if, on any Distribution Date during the Series 2002-1
         Rapid Amortization Period, the Monthly Principal Allocation under
         Section 5.2(b)(ii) is insufficient to reduce the Series 2002-1 Invested
         Amount to zero, then, in such event, any funds constituting Excess
         Amounts shall, in each such case, be deposited into the Series 2002-1
         Distribution Account as Group IV Principal Collections in an aggregate
         amount up to the amount of any such deficiency and shall be used, in
         accordance with Section 5.5, to reduce the Series 2002-1 Invested
         Amount.

         Section 5.3 Withdrawals from the Series 2002-1 Accrued Interest
Account. On each Determination Date or Additional Distribution Date, as provided
below, the Servicer shall instruct the Trustee or the Paying Agent in writing to
withdraw, and on such Distribution Date or Additional Distribution Date, as
applicable, the Trustee or the Paying Agent, acting in accordance with such
written instructions, shall withdraw the amounts required to be withdrawn from
the Series 2002-1 Accrued Interest Account pursuant to Sections 5.3(a), (b) and
(c) below (after giving effect to the allocations on

                                       47
<PAGE>

such date pursuant to Section 5.2) in respect of all funds available from
Collections processed since the preceding Distribution Date and allocated to the
holders of the Series 2002-1 Note.

         (a) Successor Servicer Fees. On each Determination Date on which Budget
is not the Servicer, and before any deposits required to be made on the related
Distribution Date to the Series 2002-1 Distribution Account have been made, the
Servicer shall instruct the Trustee and the Paying Agent in writing as to the
amount to be withdrawn from the Series 2002-1 Accrued Interest Account to the
extent funds are available and processed since the preceding Distribution Date
in respect of an amount equal to (i) the Series 2002-1 Investor Monthly
Servicing Fee (and any Series 2002-1 Monthly Supplemental Servicing Fee) accrued
since the preceding Distribution Date, plus (ii) all accrued and unpaid Series
2002-1 Investor Monthly Servicing Fees (and any Series 2002-1 Monthly
Supplemental Servicing Fees) in respect of previous periods. On such
Distribution Date, the Trustee shall withdraw such amount from the Series 2002-1
Accrued Interest Account and remit such amount to the Servicer.

         (b)      Note Interest with respect to the Series 2002-1 Note.

                  (i) On each Determination Date, the Servicer shall instruct
         the Trustee and the Paying Agent in writing as to the amount to be
         withdrawn from the Series 2002-1 Accrued Interest Account, after making
         all distributions required to be made pursuant to Section 5.3(a), to
         the extent funds will be available and processed from but not including
         the preceding Distribution Date through the succeeding Distribution
         Date in respect of Series 2002-1 Note Interest and Series 2002-1
         Carrying Charges. On the Distribution Date related to such
         Determination Date, the Trustee shall withdraw from the Series 2002-1
         Accrued Interest Account the amount on deposit therein available for
         the payment of Series 2002-1 Note Interest and Series 2002-1 Carrying
         Charges and deposit such amount in the Series 2002-1 Distribution
         Account.

                  (ii) On any Business Day during a Series 2002-1 Interest
         Period (each such day, an "Additional Distribution Date"), the Servicer
         may instruct the Trustee in writing to withdraw from the Series 2002-1
         Accrued Interest Account, and on such Additional Distribution Date the
         Trustee, acting in accordance with such instructions, shall withdraw
         from the Series 2002-1 Accrued Interest Account, as directed in writing
         by the Servicer, all or a portion of the Series 2002-1 Note Interest
         that will be due on the first Distribution Date following such
         Additional Distribution Date to the extent that such amount does not
         exceed the aggregate amount of Series 2002-1 Interest Collections
         processed since the preceding Distribution Date and allocated to the
         Series 2002-1 Noteholders (less any portion thereof previously paid to
         the Series 2002-1 Noteholders during such period pursuant to this
         Section 5.3(b)) and shall deposit such amounts in the Series 2002-1
         Distribution Account.

                                       48
<PAGE>

         (c) Servicing Fee. On each Determination Date on which Budget is the
Servicer, the Servicer shall, after giving effect to all distributions required
to be made on the related Distribution Date pursuant to Sections 5.3(b) of this
Supplement, instruct the Trustee and the Paying Agent in writing as to the
amount to be withdrawn on such Distribution Date from the Series 2002-1
Collection Account to the extent funds are available and processed since the
preceding Distribution Date in respect of an amount equal to (i) the Series
2002-1 Investor Monthly Servicing Fee (and any Series 2002-1 Monthly
Supplemental Servicing Fee) accrued since the preceding Distribution Date, plus
(ii) all accrued and unpaid Series 2002-1 Investor Monthly Servicing Fees (and
any Series 2002-1 Monthly Supplemental Servicing Fees) in respect of previous
periods, minus (iii) the amount of any Series 2002-1 Investor Monthly Servicing
Fees (and Series 2002-1 Monthly Supplemental Servicing Fees) withheld by the
Servicer since the preceding Distribution Date pursuant to Section 5.2(c) of the
Base Indenture. On such Distribution Date, the Trustee shall withdraw such
amount from the Series 2002-1 Collection Account and remit such amount to the
Servicer.

         Section 5.4 Payment of Note Interest and Carrying Charges. On each
Distribution Date and Additional Distribution Date, the Paying Agent shall, in
accordance with Section 6.1 of the Base Indenture and the written instruction of
the Servicer received pursuant to Section 5.3(b) hereof, pay to the Series
2002-1 Noteholders from the Series 2002-1 Distribution Account the amount
deposited in the Series 2002-1 Distribution Account for the payment of Series
2002-1 Note Interest pursuant to Section 5.3(b) of this Supplement and, to the
extent that such amount is insufficient to pay all Series 2002-1 Note Interest
and Series 2002-1 Carrying Charges payable on such Distribution Date or
Additional Distribution Date (the amount of such insufficiency, a "Note Interest
Shortfall"), the Servicer shall instruct the Trustee in writing (a) to withdraw
from the Series 2002-1 Excess Funding Account (or the Series 2002-1 Cash
Liquidity Account sub-account thereof) the lesser of (i) the amount on deposit
in the Series 2002-1 Excess Funding Account (including any amount set aside in
the Series 2002-1 Cash Liquidity Account) and (ii) the amount of such Note
Interest Shortfall and (b) to the extent of any remaining Note Interest
Shortfall, to apply to pay such Note Interest Shortfall amounts on deposit in
the Series 2002-1 Distribution Account representing the proceeds of a
disbursement under the Letter of Credit, disbursements under the Letters of
Credit and/or a withdrawal from the Series 2002-1 Cash Collateral Account, as
the case may be, up to the lesser of (i) the remaining Note Interest Shortfall
and (ii) the proceeds of such disbursement, disbursements and/or withdrawal, as
applicable. Subject to Sections 2.15(c) and 6.1(b) of the Base Indenture, all
payments of interest and Series 2002-1 Carrying Charges, and all payments of
principal pursuant to Section 5.5 hereof, made to the Series 2002-1 Noteholder
shall be made by wire transfer to such account as the Series 2002-1 Noteholder
of record on the preceding Record Date shall specify from time to time by notice
to the Issuer and the Paying Agent.

         Section 5.5 Payment of Note Principal; Transfers to Budget Distribution
Account.

                                       49
<PAGE>

         (a) Commencing on the first Determination Date after the commencement
of the Series 2002-1 Rapid Amortization Period, the Servicer shall instruct the
Trustee and the Paying Agent in writing as to the amount of Collections
allocated to the Series 2002-1 Note during the Related Month pursuant to Section
5.2(b)(ii) of this Supplement (such amount, the "Monthly Principal Allocation").
Commencing on the first Distribution Date after the commencement of the Series
2002-1 Rapid Amortization Period, to the extent that the Monthly Principal
Allocation is insufficient to pay all principal due in respect of the Series
2002-1 Note on such Distribution Date (the amount of such insufficiency, a
"Principal Shortfall"), the Servicer shall instruct the Trustee in writing (a)
to withdraw from the Series 2002-1 Collection Account the lesser of (i) the
amount on deposit in the Series 2002-1 Collection Account and (ii) the amount of
such Principal Shortfall, (b) to the extent of any remaining Principal
Shortfall, to apply to the payment thereof Principal Collections with respect to
any other Group IV Series of Notes which pursuant to Section 5.2(d) of the Base
Indenture (as modified herein) are available on such Distribution Date to pay
principal of the Series 2002-1 Note (up to the amount of such Principal
Shortfall remaining) and (c) to the extent of any remaining Principal Shortfall,
to apply amounts on deposit in the Series 2002-1 Distribution Account
representing the proceeds of a claim made under the Demand Note pursuant to
Section 5.9 of this Supplement or of a disbursement under a Letter of Credit,
disbursements under the Letters of Credit and/or a withdrawal from the Series
2002-1 Cash Collateral Account, as the case may be, pursuant to Section 5.8 of
this Supplement up to the lesser of (i) the remaining Principal Shortfall and
(ii) the proceeds of such claim under the Demand Note or the proceeds of such
disbursement, disbursements and/or withdrawal, as applicable, remaining after
any application thereof pursuant to Section 5.4 of this Supplement. The entire
principal amount of the Series 2002-1 Note shall be due and payable on the
Series 2002-1 Termination Date.

         (b) On each Distribution Date occurring on or after the date a
withdrawal or application is made pursuant to Section 5.5(a) of this Supplement,
the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture and
the written instruction of the Servicer received pursuant to Section 5.5(a)
hereof, pay to the Series 2002-1 Noteholders the amount deposited in the Series
2002-1 Distribution Account for the payment of principal pursuant to Section
5.5(a) of this Supplement.

         (c) On (x) the Distribution Date on which, or immediately following the
date on which, an allocation is made pursuant to Section 5.2(a)(i)(A), or (y)
the Business Day specified in the notice of Decrease delivered pursuant to
Section 4.3(b), occurring on or after the date an allocation is made pursuant to
Section 5.2(a)(i)(C), the Paying Agent shall pay to the Series 2002-1
Noteholders pursuant to the written instruction of the Servicer the amount
deposited in the Series 2002-1 Distribution Account for the payment of principal
pursuant to such Section 5.2(a)(i)(A) or 5.2(a)(i)(C), as applicable.

         (d) On each Distribution Date, the Servicer shall, as applicable,
instruct the Trustee in writing to instruct the Paying Agent to transfer to the
Budget Distribution Account (i) all funds which are in the Group IV Collection
Account that have been allocated to the Budget Distribution Account as of such
Distribution Date and (ii) all

                                       50
<PAGE>

funds that were previously allocated to the Budget Distribution Account but not
transferred to the Budget Distribution Account. On the related Distribution
Date, the Trustee or Paying Agent shall, in accordance with the Servicer's
instructions, withdraw such funds from the Group IV Collection Account, as
applicable, and deposit them into the Budget Distribution Account.

         Section 5.6 Servicer's or Budget's Failure to Make a Deposit or
Payment. If the Servicer or Budget fails to make, or give notice or instructions
to make, any payment from or deposit to the Collection Account, the Group IV
Collection Account, the Series 2002-1 Collection Account or the Series 2002-1
Accrued Interest Account required to be made or given by the Servicer or Budget,
respectively, at the time specified in the Indenture (including applicable grace
periods), the Servicer shall, upon request of the Trustee, promptly provide the
Trustee with all information necessary to allow the Trustee, in the event it
elects to do so, to make such a payment. Such funds shall be applied by the
Trustee in the manner in which such payment or deposit should have been made by
the Servicer.

         Section 5.7 Series 2002-1 Distribution Account.

         (a) Establishment of the Series 2002-1 Distribution Account. The
Trustee shall establish and maintain in the name of the Trustee for the benefit
of the Series 2002-1 Noteholders, or cause to be established and maintained, an
account (the "Series 2002-1 Distribution Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Series 2002-1 Noteholders. The Series 2002-1 Distribution Account shall be
maintained (i) with a Qualified Institution, or (ii) as a segregated trust
account with the corporate trust department of a depository institution or trust
company having corporate trust powers and acting as trustee for funds deposited
in the Series 2002-1 Distribution Account. If the Series 2002-1 Distribution
Account is not maintained in accordance with the previous sentence, the Servicer
shall establish a new Series 2002-1 Distribution Account, within ten (10)
Business Days after obtaining knowledge of such fact, which complies with such
sentence, and transfer all cash and investments from the non-qualifying Series
2002-1 Distribution Account into the new Series 2002-1 Distribution Account.
Initially, the Series 2002-1 Distribution Account will be established with the
Trustee. The Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Series 2002-1 Distribution Account and in all
proceeds thereof. The Series 2002-1 Distribution Account Collateral shall be
under the sole dominion and control of the Trustee for the benefit of the Series
2002-1 Noteholders.

         (b) Administration of the Series 2002-1 Distribution Account. The
Servicer shall instruct the institution maintaining the Series 2002-1
Distribution Account in writing to invest funds on deposit in the Series 2002-1
Distribution Account at all times in Permitted Investments; provided, however,
that any such investment shall mature not later than the Business Day prior to
the Distribution Date following the date on which such funds were received,
unless any Permitted Investment held in the Series 2002-1 Distribution Account
is held with the Paying Agent, then such investment may mature on

                                       51
<PAGE>

such Distribution Date and such funds shall be available for withdrawal on or
prior to such Distribution Date. The Trustee shall hold, for the benefit of the
Series 2002-1 Noteholders and the Servicer, possession of the negotiable
instruments or securities evidencing the Permitted Investments described in
clause (i) of the definition thereof from the time of purchase thereof until the
time of maturity.

         (c) Earnings from Series 2002-1 Distribution Account. Subject to the
restrictions set forth above, the Servicer shall have the authority to instruct
the Trustee in writing with respect to the investment of funds on deposit in the
Series 2002-1 Distribution Account. All interest and earnings (net of losses and
investment expenses) on funds on deposit in the Series 2002-1 Distribution
Account shall be deemed to be on deposit and available for distribution.

         Section 5.8       Draw on Letter of Credit.

         (a) On or before the second Business Day prior to each Distribution
Date, the Servicer shall notify the Trustee pursuant to the Group IV Master
Lease of the amount of the Series 2002-1 Lease Payment Deficit.

         (b) On any Distribution Date on which a Series 2002-1 Lease Payment
Deficit exists as indicated in a notice delivered to the Trustee in accordance
with subsection (a) above or on the Monthly Servicer's Report, the Trustee
shall, by 1:00 p.m. (New York City time) on such Distribution Date, draw on each
outstanding Letter of Credit by presenting a draft in the amount equal to the
Enhancement Pro Rata Share with respect to drawings under such Letter of Credit
of the lesser of (i) the Enhancement Pro Rata Share with respect to drawings
under such Letter of Credit of the Series 2002-1 Lease Payment Deficit and (ii)
the amount available to be drawn under such Letter of Credit on such Business
Day accompanied by a Certificate of Credit Demand in the form of Annex A to such
Letter of Credit; provided that if the Series 2002-1 Cash Collateral Account has
been established and funded, the Trustee shall withdraw from the Cash Collateral
Account an amount equal to the Enhancement Pro Rata Share with respect to
withdrawals from the Series 2002-1 Cash Collateral Account of the lesser of (i)
the Enhancement Pro Rata Share with respect to withdrawals from the Series
2002-1 Cash Collateral Account of the Series 2002-1 Lease Payment Deficit and
(ii) the amount available to be withdrawn from the Series 2002-1 Cash Collateral
Account on such Business Day. The proceeds of such draw and/or withdrawal, as
the case may be, shall be deposited in the Series 2002-1 Distribution Account no
later than 4:00 p.m. (New York City time) on such Distribution Date.

         (c) On any Distribution Date on which Budget fails to make full and
timely payment under the Demand Note after receipt of a demand for payment
thereunder pursuant to Section 5.9 hereof, the Trustee may, by 1:00 p.m. (New
York City time) on such Distribution Date, draw on each outstanding Letter of
Credit by presenting a draft in the amount equal to the lesser of (i) the
Enhancement Pro Rata Share with respect to drawings under such Letter of Credit
of such unpaid amount under the Demand Note and (ii) the amount available to be
drawn under such Letter of Credit on such Business Day

                                       52
<PAGE>

accompanied by a Certificate of Credit Demand in the form of Annex A to such
Letter of Credit; provided that if the Series 2002-1 Cash Collateral Account has
been established and funded, the Trustee shall withdraw from the Cash Collateral
Account an amount equal to the Enhancement Pro Rata Share with respect to
withdrawals from the Series 2002-1 Cash Collateral Account of the lesser of (i)
the Enhancement Pro Rata Share with respect to withdrawals from the Series
2002-1 Cash Collateral Account of such unpaid amount under the Demand Note and
(ii) the amount available to be withdrawn from the Series 2002-1 Cash Collateral
Account on such Business Day. The proceeds of such draw and/or withdrawal, as
the case may be, shall be deposited in the Series 2002-1 Distribution Account no
later than 4:00 p.m. (New York City time) on such Distribution Date.

         (d) If there is more than one Letter of Credit on the date of any draw
on the Letters of Credit pursuant to the terms of this Series Supplement, the
Servicer shall instruct the Trustee, in writing, of the amount of the
Enhancement Pro Rata Share with respect to drawings under each such Letter of
Credit of the amount of such draw on the Letters of Credit on such date pursuant
to Section 5.8(b) or (c) of this Supplement, as the case may be. Such
instruction shall also include the amount, if any, to be withdrawn from the
Series 2002-1 Cash Collateral Account.

         (e) On any day when an allocation is made pursuant to Section
5.2(c)(y)(ii) of this Supplement, the Trustee shall, at the direction of the
Servicer, reinstate (or fund, as applicable) the Series 2002-1 Cash Collateral
Account by depositing funds therein and reinstate the applicable Letter of
Credit or Letters of Credit by reimbursing the applicable Letter of Credit
Provider or Letter of Credit Providers, as the case may be and, in each such
case, in the amount allocated for such purpose under such Section 5.2(c)(y)(ii)
on such day.

         (f) The Trustee hereby acknowledges and agrees that it will follow the
written instructions of the Servicer in connection with the reduction of any
Letter of Credit pursuant to the provisions of, and mechanics set forth in, the
applicable Letter of Credit and the related documentation for such Letter of
Credit, provided that (x) such reduction does not result in (ii) a Series 2002-1
Credit Support Deficiency or (ii) the Series 2002-1 Liquidity Amount being less
than the Minimum Liquidity Amount and (y) the aggregate commitment or exposure,
as the case may be, of each Letter of Credit Provider under the Letter of Credit
issued by it (and, if such Letter of Credit Provider has funded the Series
2002-1 Cash Collateral Account pursuant to clause (i) or (ii) of Section
5.10(a), under the Series 2002-1 Cash Collateral Account as a result of such
funding) shall be ratably reduced (which reduction, in the case of any funding
of the Series 2002-1 Cash Collateral Account, shall be made by returning the
amount of such reduction from the Series 2002-1 Cash Collateral Account to such
Letter of Credit Provider).

         Section 5.9 Draw on the Demand Note. On each Determination Date, the
Servicer shall determine the Net Disposition Losses with respect to such
Determination Date. In the event that Net Disposition Losses exist with respect
to such Determination Date, the Servicer shall, at or before 12:30 p.m. (New
York City time) on such

                                       53
<PAGE>

Determination Date, notify the Trustee in writing of the aggregate amount of
such Net Disposition Losses, and the Trustee shall, prior to 5:00 p.m. (New York
City time) on such date, as specified in such notice from the Servicer, transmit
to Budget a demand for payment (each, a "Demand Notice") under the Demand Note
in the amount of the lesser of (x) the outstanding amount of such Demand Note
and (y) the portion of such Net Disposition Losses with respect to such
Determination Date which, pursuant to Section 5.2(c)(x)(ii), are allocated to a
draw on the Demand Note, in each case such payment to be made on or prior to the
next succeeding Distribution Date by deposit of funds into the Series 2002-1
Distribution Account in the specified amount for application pursuant to Section
5.5(a) as necessary.

         Section 5.10 Series 2002-1 Cash Collateral Account.

         (a) Establishment of Series 2002-1 Cash Collateral Account. In the
event that (i) prior to the date which is 30 days prior to the applicable Series
2002-1 Letter of Credit Expiration Date under a Letter of Credit there shall not
have been appointed a successor Letter of Credit Provider or, in the
alternative, credit enhancement for the Lease payments to be made by the Lessees
and for Budget's obligations under the Demand Note shall not have otherwise been
provided, in each case, as permitted under the Indenture, (ii) the Trustee
receives notice from Budget or a Series 2002-1 Noteholder informing the Trustee
of the pending termination of a Letter of Credit or upon the downgrade of a
Letter of Credit Provider's short-term debt credit rating below "A-1" by
Standard & Poor's, "P-1" by Moody's or "F-1" by Fitch or (iii) the Issuer
otherwise obtains or provides for credit enhancement in the form of cash, then
the Trustee, at the written direction of the Servicer, shall establish and
maintain in the name of the Trustee for the benefit of the Secured Parties, or
cause to be established and maintained, an account (the "Series 2002-1 Cash
Collateral Account"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Secured Parties. The Series
2002-1 Cash Collateral Account shall be maintained (i) with a Qualified
Institution, or (ii) as a segregated trust account with the corporate trust
department of a depository institution or trust company having corporate trust
powers and acting as trustee for funds deposited in the Series 2002-1 Cash
Collateral Account.

         (b)      Deposits into the Series 2002-1 Cash Collateral Account.

                  (i) Upon the establishment of the Series 2002-1 Cash
         Collateral Account for the reasons set forth in clauses (i) and (ii) of
         Section 5.10(a) of this Supplement, the Trustee at the written
         direction of the Servicer, shall draw on the applicable Letter of
         Credit, and deposit in the Series 2002-1 Cash Collateral Account, an
         amount equal to the amount available to be drawn under such terminating
         Letter of Credit or Letter of Credit issued by such downgraded Letter
         of Credit Provider immediately prior to such draw. Once established,
         the Series 2002-1 Cash Collateral Account (other than to the extent
         such Series 2002-1 Cash Collateral Account has been established
         pursuant to Section 5.10(a)(iii) of this Supplement) will serve in all
         respects as a replacement for and equivalent of the applicable Letter
         of Credit.

                                       54
<PAGE>

                  (ii) Funds on deposit in the Series 2002-1 Cash Collateral
         Account may be invested in Permitted Investments by the Trustee at the
         written direction of Servicer; provided, however, that for purposes of
         determining the availability of funds or balances in the Series 2002-1
         Cash Collateral Account under the Base Indenture such investment
         earnings shall be excluded to the extent that the aggregate funds or
         balances in the Series 2002-1 Cash Collateral Account exceeds the
         excess of (x) the Required Letter of Credit Amount over (y) the
         aggregate amount available to be drawn under all Letters of Credit.
         Funds on deposit in the Series 2002-1 Cash Collateral Account (other
         than certain earnings on Permitted Investments as specified in the
         preceding sentence) shall be available to be applied against the Series
         2002-1 Lease Payment Deficits or unpaid amounts under the Demand Note
         pursuant to Sections 5.8(b) or (c) of this Supplement, respectively,
         until the Series 2002-1 Note has been paid in full. After all
         distributions required to be made on a Distribution Date have been
         made, the Trustee at the direction of the Servicer shall withdraw from
         the Series 2002-1 Cash Collateral Account an amount equal to the lesser
         of (a) the amount of investment earnings during the Related Month with
         respect to funds or balances on deposit in the Series 2002-1 Cash
         Collateral Account and (b) the amount by which the funds or balances on
         deposit in the Series 2002-1 Cash Collateral Account exceed the excess
         of (x) the Required Letter of Credit Amount over (y) the aggregate
         amount available to be drawn under all Letters of Credit, in each case
         on such date, and deposit such funds and balances so withdrawn into the
         Budget Distribution Account unless the Trustee has received written
         notice from a Letter of Credit Provider stating that Budget and/or the
         Lessees have not reimbursed such Letter of Credit Provider in full in
         respect of the draw made by the Trustee under its Letter of Credit to
         fund the Series 2002-1 Cash Collateral Account, in which case, the
         Trustee shall (and Budget on behalf of itself and the other Lessees
         hereby directs the Trustee to) pay over, on behalf of Budget and/or the
         Lessees, such funds and balances so withdrawn to such Letter of Credit
         Provider (or, in the case of more than one Letter of Credit Provider,
         the applicable pro rata share with respect to reimbursement to each
         such Letter of Credit Provider of such funds and balances so withdrawn
         based on the amount of unreimbursed outstanding drawings under each
         applicable Letter of Credit used to fund the Series 2002-1 Cash
         Collateral Account) in an amount not to exceed such unreimbursed amount
         as specified by each applicable Letter of Credit Provider in such
         written notice and the Trustee shall place any funds and balances so
         withdrawn in excess of such unreimbursed amount into the Budget
         Distribution Account. Upon full payment of principal of, accrued
         interest on, and other amounts due in respect of, the Series 2002-1
         Note, the Trustee at the direction of the Servicer shall withdraw the
         funds and balances on deposit in the Series 2002-1 Cash Collateral
         Account and pay over, on behalf of Budget and/or the Lessees, such
         funds and balances so withdrawn to the Letter of Credit Providers the
         applicable pro rata share of such funds and balances so withdrawn to
         each such Letter of Credit Provider based on the amount of unreimbursed
         outstanding drawings under each applicable Letter of Credit used to
         fund the Series 2002-1

                                       55
<PAGE>

         Cash Collateral Account in an amount not to exceed such unreimbursed
         amount for each applicable Letter of Credit Provider and the Trustee
         shall place any funds and balances so withdrawn in excess of such
         unreimbursed amount into the Budget Distribution Account.

         (iii) Upon the establishment of the Series 2002-1 Cash Collateral
Account for the reasons set forth in clauses (iii) of Section 5.10(a) of this
Supplement, the Issuer shall deposit or cause to be deposited the applicable
funds into the Series 2002-1 Cash Collateral Account.

         Section 5.11 Budget Distribution Account. On each Distribution Date,
the Servicer shall instruct the Trustee and Paying Agent to transfer to the
Budget Distribution Account (i) all funds in the Group IV Collection Account
allocable to Group IV Vehicles that have been allocated to the Budget
Distribution Account as of such Distribution Date and (ii) all funds that were
previously allocated to the Budget Distribution Account but not transferred to
the Budget Distribution Account.

                                    ARTICLE 6

                               AMORTIZATION EVENTS

         Section 6.1 Amortization Events. In addition to the Amortization Events
set forth in Section 9.1 of the Base Indenture (as modified by Article 7
hereof), subject to Section 5.2(d)(iv) hereof, the following shall be
Amortization Events with respect to the Series 2002-1 Note (without notice or
other action on the part of the Trustee or any holders of the Series 2002-1 Note
unless so specified; provided, however, that the Trustee shall have no liability
in connection with any action or inaction taken upon the occurrence of an
Amortization Event unless the Trustee has actual knowledge or has received
written notice of such Amortization Event):

         (a) TFFC defaults in the payment of any interest on any Series 2002-1
Note (or in any other payment on any Series 2002-1 Note (other than any payment
specified in Section 9.1(b) of the Base Indenture)) when the same becomes due
and payable and such default continues for a period of 3 Business Days.

         (b) a Series 2002-1 Credit Support Deficiency shall occur and exist for
more than two (2) Business Days unless during such two (2) Business Day period
the Issuer or the Servicer shall have cured the Series 2002-1 Credit Support
Deficiency in accordance with the terms and conditions of this Supplement;

         (c)      any  Related  Document  is not in full  force  and  effect  as
against TFFC or its  affiliates,  or TFFC,  Budget or the Servicer so asserts in
writing;

         (d)      a  "Lease  Event  of  Default"  shall  have  occurred  and  be
continuing under and as defined in the Group IV Master Lease;

                                       56
<PAGE>

         (e) TFFC or Budget shall have failed in any material respect to timely
and duly perform, or shall have breached any of its obligations,
representations, warranties or covenants under any of the Related Documents
(other than the Group IV Master Lease) and such failure to perform or breach, as
the case may be, continues for more than thirty (30) days after the date on
which the party in breach obtains written notice thereof; provided that, with
respect to a failure on the part of TFFC to perform under Section 8.01(e) of the
Note Purchase Agreement, Section 3.3 of this Supplement, or a breach of the
representation in clause (n) of Article 7 of this Supplement, such failure or
breach continues for more than fifteen (15) days after the date on which TFFC
obtains written notice thereof;

         (f)      TFFC fails to have at least one  independent  director  on its
Board of Directors at any time;

         (g) any judgment or order for the payment of money in excess of
$100,000 shall be rendered against TFFC that is not being contested and for
which adequate reserves have not been set aside and such judgment or order
continues for more than two (2) Business Days without such contest and setting
aside of adequate reserves;

         (h) the Collection Account (with respect to amounts allocated to any
Group IV Series of Notes), the Group IV Collection Account, Series 2002-1
Collection Account or the Series 2002-1 Accrued Interest Account shall be
subject to an injunction, estoppel or other stay or a Lien (other than Liens
permitted under the Related Documents) (each, a "Restrictive Action") for at
least two (2) Business Days;

         (i)      the entry of a final order by the Bankruptcy  Court adopting a
final plan of reorganization with respect to Budget and the Group IV Lessees;

         (j)      all  principal  and  interest in respect of the Series  2002-1
Note has not been paid in full as of the Series 2002-1 Termination Date;

         (k) a sale of all or substantially all of the assets of Budget Systems
or, on any date on which the aggregate Net Book Value of the Vehicles leased
under the Group IV Master Lease by NYRAC comprises twenty-five percent (25%) or
more of the aggregate Net Book Value of all Vehicles leased under the Group IV
Lease as of such date, NYRAC;

         (l)      an Asset Amount  Deficiency  exists and continues for a period
of two (2) Business Days;

         (m)      the occurrence of an Event of Bankruptcy with respect to TFFC;

         (n) unless (i) the inclusion of the Series 2002-1 Letter of Credit
Amount in the Series 2002-1 Credit Support Amount is not necessary for the
Series 2002-1 Credit Support Amount to equal or exceed the Series 2002-1 Minimum
Credit Support Amount, or (ii) the Series 2002-1 Cash Collateral Account shall
theretofore have been funded to

                                       57
<PAGE>

the full extent required to maintain the Series 2002-1 Minimum Credit Support
Amount, a Letter of Credit shall not be in full force and effect, there shall
have occurred an Event of Bankruptcy with respect to any Letter of Credit
Provider or any Letter of Credit Provider shall have repudiated its Letter of
Credit or refused to honor a proper draw thereon, and, in any such case, no
substitute credit enhancement shall have been obtained from an Eligible Credit
Enhancer in form and substance satisfactory to the Agent and such condition
continues to exist for a period of two (2) Business Days;

         (o) from and after the funding of the Series 2002-1 Cash Collateral
Account, the Series 2002-1 Cash Collateral Account shall be subject to a
Restrictive Action for at least two (2) Business Days;

         (p)      the Group IV Master Lease is terminated;

         (q)      the Series  2002-1  Liquidity  Amount is less than the Minimum
Liquidity Amount for at least two (2) Business Days; or

         (r) one or more Lessee Partial Wind-Down Events occur and are
continuing under Section 19 of the Group IV Lease in connection with any events
described in Section 17.1.5 of the Group IV Lease with respect to Lessees which,
in the aggregate, lease Group IV Vehicles having an aggregate Net Book Value
exceeding 10% of the Net Book Value of all Group IV Vehicles at the time of such
occurrence.

         In the case of (i) any event described in clauses (i), (k) or (m)
above, an Amortization Event with respect to the Series 2002-1 Note shall
immediately occur without any notice or other action on the part of the Trustee
with respect to the Series 2002-1 Note or any Series 2002-1 Noteholder, (ii) any
event described in clauses (a) through (h), (l), and (n) through (q) above,
either the Trustee, by written notice to TFFC and the Series 2002-1 Note
Purchaser, or the Series 2002-1 Note Purchaser, by written notice to TFFC and
the Trustee, may declare that an Amortization Event has occurred with respect to
the Series 2002-1 Note as of the date of the notice or (iii) any event described
in clause (j) above, the Series 2002-1 Note Purchaser, by written notice to TFFC
and the Trustee, may declare that an Amortization Event has occurred with
respect to the Series 2002-1 Note as of the date of the notice. Each
Amortization Event described above shall only be subject to waiver at the
written direction of the Series 2002-1 Note Purchaser.

                                    ARTICLE 7

                                     GENERAL

         (a) Repurchase. The Series 2002-1 Note shall be subject to repurchase
by TFFC at its option in accordance with Section 6.3 of the Base Indenture on
any Distribution Date. The repurchase price for the Series 2002-1 Note shall
equal the Aggregate Principal Balance of the Series 2002-1 Note (determined
after giving effect to any payments of principal and interest and any Increases
or Decreases as of such

                                       58
<PAGE>

Distribution Date), plus all accrued and unpaid interest on such Aggregate
Principal Balance through the date of purchase under this Section 7(a) plus any
other amounts then due and payable to the holders of such Series 2002-1 Note
pursuant to this Supplement, the Series 2002-1 Note Purchase Agreement and the
Series 2002-1 Note.

         (b) Payment of Rating Agency Fees. TFFC agrees and covenants with the
Servicer to pay all reasonable fees and expenses of the Rating Agencies and to
promptly provide all documents and other information that the Rating Agencies
may reasonably request.

         (c)      Exhibits.  The following  exhibits  attached hereto supplement
the exhibits included in the Indenture.

         Exhibit A:  Form of Series 2002-1 Note

         Exhibit B:  List of Approved Manufacturers

         (d) Ratification of Base Indenture. As supplemented by this Supplement,
the Base Indenture is in all respects ratified and confirmed and the Base
Indenture as so supplemented by this Series Supplement shall be read, taken, and
construed as one and the same instrument.

         (e) Counterparts. This Supplement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all of such counterparts shall together constitute but one and the same
instrument.

         (f) GOVERNING LAW. THIS SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE PROVISIONS
THEREOF REGARDING CONFLICTS OF LAWS), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAW.

         (g) Amendments. Subject to Article 12 of the Base Indenture, this
Supplement may be modified or amended from time to time by written agreement of
the parties hereto, but only with the written consent of the Required
Noteholders.

         (h) Discharge of Indenture. Notwithstanding anything to the contrary
contained in the Base Indenture, no discharge of the Indenture pursuant to
Section 11.1(b) of the Base Indenture will be effective as to the Series 2002-1
Note without the consent of the Required Noteholders.

         (i)      Base  Indenture  Defined  Terms.  With  respect  to the Series
2002-1  Note and each  other  Group IV Series of Notes,  references  in the Base
Indenture  (including  Schedule I thereto) or in any Related Document to (a) the
"Lease" shall be deemed to mean the Group IV Master Lease and (b) a "Lease Event
of  Default"  shall be  deemed  to mean a Lease  Event of  Default  under and as
defined in the Group IV Master Lease. In

                                       59
<PAGE>

addition, each of the capitalized terms listed in the first column below is
defined in Schedule 1 to the Base Indenture, as such term applies to any
Segregated Series (including Series 2002-1), by reference to the related
Supplement. Such terms are defined in this Series 2002-1 Supplement using the
corresponding capitalized terms set forth in the second column below opposite
such Base Indenture terms.

<TABLE>
<CAPTION>
                                                                   CORRESPONDING SERIES
           BASE INDENTURE TERMS                                   2002-1 SUPPLEMENT TERMS
           --------------------                                   -----------------------
<S>                                                     <C>
Aggregate Segregated Repurchase Asset Amount            Aggregate Group IV Repurchase Asset Amount

Invested Amount                                         Series 2002-1 Invested Amount

Limited Liquidation Event of Default                    Series 2002-1 Limited Liquidation Event of Default

Monthly Servicing Fee                                   Series 2002-1 Monthly Servicing Fee

Repurchase Vehicle                                      Group IV Repurchase Vehicle

Segregated Repurchase Vehicle                           Group IV Repurchase Vehicle

Vehicle                                                 Group IV Vehicle
</TABLE>

         (j)      Servicer.  The Servicer  represents  and warrants that it will
perform all of its servicing functions as set forth pursuant to Section 4 of the
Base Indenture.

         (k) Waiver of Conditions. The following conditions set forth in the
Base Indenture to the issuance of this Series of Notes are hereby revised with
respect to this Series of Notes constituting a Segregated Series, and shall not
be required in connection with the issuance of the Series 2002-1 Note:

                  (i) the Officer's Certificate required by Section 2.2(e)(i)
         and it shall not be a requirement to the issuance of the Series 2002-1
         Note that no Amortization Event, Asset Amount Deficiency, Enhancement
         Agreement Event of Default, Lease Event of Default, Lessee Partial
         Wind-Down Event, Manufacturer Event of Default, Potential Amortization
         Event, Potential Enhancement Agreement Event of Default, Potential
         Lease Event of Default, Potential Lessee Partial Wind-Down Event or
         Potential Manufacturer Event of Default exist with respect to any
         Series of Notes other than any Group IV Series of Notes or any Lease or
         Collateral other than the Group IV Master Lease or any Group IV
         Collateral;

                                       60
<PAGE>

                  (ii) the Opinions of Counsel regarding the State of Virginia
         tax characterization of the Series 2002-1 Note and the outstanding
         Notes of any Series required by Sections 2.2(f)(i)(x) and (y),
         respectively;

                  (iii) the Opinions of Counsel regarding State of Florida tax
         and other legal matters required by Section 2.2(f)(i)(z).

         (m) Additional Conditions. Section 2.2 of the Base Indenture is hereby
further revised with respect to this Series of Notes constituting a Segregated
Series of Notes, and shall include the following additional requirements to the
issuance of the Series 2002-1 Note:

                  (i)      The commencement of the Bankruptcy Proceeding;

                  (ii)     the Bankruptcy Court has entered the Bankruptcy Order
         in  form  and  substance  acceptable  to the  Agent  in its  reasonable
         discretion; and

                  (iii) no Amortization Event or Potential Amortization Event
         with respect to the Series 2002-1 Note has occurred and is continuing.

         (n)      Independent Director. TFFC represents and warrants that it has
two  "independent  directors"  on its  board of  directors  and  shall  have two
"independent   directors"   at  all  times  while  the  Series  2002-1  Note  is
outstanding.

         (o) Certain Amortization Events Not Applicable. The Amortization Events
set forth in clauses (d), (e), (g) and (h) of Section 9.1 of the Base Indenture
shall not apply to the Series 2002-1 Note. The Amortization Events set forth in
clauses (a), (b), (c) and (d) of Section 9.1 of the Base Indenture shall not
apply to the Series 2002-1 Note to the extent that any such Amortization Event
relates to any Series of Notes other than the Series 2002-1 Note.

         (p) Voting Rights Under Base Indenture. The Series 2002-1 Noteholder
hereby waives any and all voting rights it would otherwise have under the Base
Indenture to the extent such voting rights are shared with Noteholders of other
Series of Notes that are not Group IV Series of Notes or involve matters
relating to non-Group IV Collateral or Series of Notes other than Group IV
Series of Notes. In furtherance of the foregoing, the term "Required
Beneficiaries" shall be deemed to not include the Series 2002-1 Noteholder for
purposes of Article 9 of the Base Indenture and in connection with any voting
rights with respect to actions taken by, or matters that could have an impact
on, any Series of Notes that is not a Group IV Series of Notes. The Series
2002-1 Noteholder and other Group IV Noteholders shall be entitled to direct the
Trustee in connection with the exercise of remedies with respect to the Group IV
Collateral in accordance with the provisions of Article 9 of the Base Indenture
and the terms "Required Noteholders" and "Required Beneficiaries" shall be
deemed to have the meanings set forth herein in connection therewith.

                                       61
<PAGE>

         (q) Issuance of Notes by TFFC. In connection with the issuance of, and
solely with respect to, the Series 2002-1 Note as a Segregated Series of Notes,
this Series Supplement hereby amends and supersedes the provisions of Section
9.4 of the Base Indenture that provide that, upon an Amortization Event under
Section 9.1 of the Base Indenture, the Trustee shall instruct TFFC to cease
issuing Notes and the right of TFFC to issue Notes shall automatically
terminate. The Trustee and the Series 2002-1 Noteholder hereby acknowledge and
agree that the provisions of Section 9.4 of the Base Indenture described in the
preceding sentence are remedies applicable to outstanding Series of Notes with
respect to new Series of Notes sharing in the same collateral but shall not
apply to this Segregated Series of Notes.

         (r) The Servicer's Representations and Warranties. The representations
and warranties of the Servicer set forth in Section 4.3(f) of the Base Indenture
are hereby waived in respect of the Bankruptcy Proceeding relating to the Budget
or the Group IV Lessees and any claims that have been or may be brought, or
proceedings that have been or may be commenced, therein. All other
representations and warranties of the Servicer set forth in Section 4.3 of the
Base Indenture are made by the Servicer, in connection with the issuance of the
Series 2002-1 Note and where applicable, subject to the Bankruptcy Order. The
covenants of the Servicer set forth in Section 4.3 of the Base Indenture are
hereby modified in connection with the issuance of, and with respect to the
Series 2002-1 Note, to the extent compliance therewith is excused by the
Bankruptcy Code or an order of the Bankruptcy Court with respect to the
Servicer.

         (s)      Servicer  Default.  The Servicer  Default set forth in Section
4.16(a)(v) of the Base Indenture shall not apply to the Group IV Master Lease or
the Series 2002-1 Note.

         (t) No Refinancing. Until the Series 2002-1 Note has been paid in full,
TFFC hereby covenants and agrees that it will not use any proceeds of the Series
2002-1 Note or any other Group IV Series of Notes to refinance Eligible Vehicles
or Eligible Receivables, but shall only use such proceeds to purchase, or
finance the purchase of, new Eligible Vehicles for leasing under the Group IV
Master Lease and for any other purpose expressly permitted hereunder.

                                       62
<PAGE>

         IN WITNESS WHEREOF, TFFC, the Servicer, Budget, as Budget
Interestholder and the Trustee have caused this Supplement to be duly executed
by their respective officers thereunto duly authorized as of the day and year
first above written.

                                        TEAM FLEET FINANCING CORPORATION,
                                        as Issuer

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

                                        BUDGET GROUP, INC., as Servicer

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

                                       BUDGET GROUP, INC., as Budget
                                              Interestholder

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

                                        DEUTSCHE BANK TRUST COMPANY
                                              AMERICAS, as Trustee

                                       By:
                                            ------------------------------------
                                            Name:
                                            Title:
<PAGE>

                                                                       EXHIBIT A
                                                                       TO SERIES
                                                               2002-1 SUPPLEMENT

                              VARIABLE FUNDING NOTE

REGISTERED                                                    up to $750,000,000

No. A-

                       SEE REVERSE FOR CERTAIN CONDITIONS

                  THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES OR "BLUE SKY"
LAWS. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES FOR THE BENEFIT OF TEAM
FLEET FINANCING CORPORATION, A DELAWARE CORPORATION (THE "COMPANY"), THAT THIS
NOTE IS BEING ACQUIRED FOR ITS OWN ACCOUNT AND NOT WITH A VIEW TO DISTRIBUTION.
THIS NOTE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED, EXCHANGED OR OTHERWISE
PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE INDENTURE
REFERRED TO HEREIN.

                  THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AND
SUBJECT TO INCREASES AND DECREASES AS SET FORTH HEREIN AND IN THE INDENTURE.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.
<PAGE>

                        TEAM FLEET FINANCING CORPORATION

                  VARIABLE FUNDING RENTAL CAR ASSET BACKED NOTE, Series 2002-1

                  TEAM FLEET FINANCING CORPORATION, a Delaware corporation
(herein referred to as the "Company"), for value received, hereby promises to
pay to Deutsche Bank AG, New York Branch, as Agent, a Delaware corporation (the
"Noteholder"), or its registered assigns, the principal sum of up to SEVEN
HUNDRED FIFTY MILLION DOLLARS ($750,000,000) or, if less the aggregate unpaid
principal amount outstanding hereunder (whether or not shown on the schedule
attached hereto, which amount shall be payable in the amounts and at the times
set forth in the Indenture, provided, however, that the entire unpaid principal
amount of this Note shall be due on the Series 2002-1 Termination Date, which is
April 30, 2003 (unless extended in writing by the parties to the Indenture and
the Noteholder). The Company will pay interest on this Note at the Series 2002-1
Note Rate. Such interest shall be payable on each Distribution Date until the
principal of this Note is paid or made available for payment, to the extent
funds will be available from Series 2002-1 Collections processed from and
including the preceding Distribution Date to but excluding each such
Distribution Date in respect of (a) an amount equal to interest accrued for the
related Series 2002-1 Interest Period, which will be equal to the sum of the
products, for each day during the related Series 2002-1 Interest Period, of (i)
the Series 2002-1 Note Rate for such Series 2002-1 Interest Period and (ii) the
Series 2002-1 Aggregate Principal Balance as of the close of business on such
date divided by 360, plus (b) an amount equal to the amount of any accrued and
unpaid Note Interest Shortfall with respect to prior Series 2002-1 Interest
Periods, with interest on the amount of such Note Interest Shortfall at the
Series 2002-1 Note Rate for the related Series 2002-1 Interest Period. The
principal amount of this Note shall be subject to Increases and Decreases from
time to time, and accordingly, such principal amount is subject to prepayment at
any time. Notwithstanding the foregoing, prior to the Series 2002-1 Termination
Date and unless an Amortization Event shall have occurred with respect to the
Series 2002-1 Note, only interest payments on the outstanding principal amount
of the Note are required to be made to the holder hereof. Beginning on the first
Distribution Date following the occurrence of an Amortization Event, subject to
Decreases on any Business Day, the principal of this Note shall be paid in
installments on each subsequent Distribution Date to the extent of funds
available for payment therefor pursuant to the Indenture. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

                  The principal of and interest on this Note are payable in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. This Note does not
represent an interest in, or an obligation of, the Servicer or any affiliate of
the Servicer other than the Company.

                  Reference is made to the further provisions of this Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Note. Although a summary of certain provisions of
the Indenture are set forth below

                                       A-2
<PAGE>

and on the reverse hereof and made a part hereof, this Note does not purport to
summarize the Indenture and reference is made to the Indenture for information
with respect to the interests, rights, benefits, obligations, proceeds and
duties evidenced hereby and the rights, duties and obligations of the Servicer
and the Trustee. A copy of the Indenture may be requested from the Trustee by
writing to the Trustee at: Deutsche Bank Trust Company Americas (formerly known
as Bankers Trust Company), 60 Wall Street, New York, New York 10005, Attention:
Corporate Trust and Agency Group. To the extent not defined herein, the
capitalized terms used herein have the meanings ascribed to them in the
Indenture.

                  Unless the certificate of authentication hereon has been
executed by the Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                       A-3
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer.

Date: August 6, 2002                            TEAM FLEET FINANCING CORPORATION

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes of a series issued under the within-mentioned
Indenture.

                                                DEUTSCHE BANK TRUST COMPANY
                                                    AMERICAS, as Trustee

                                                By:
                                                   -----------------------------
                                                   Authorized Signature

                                       A-4
<PAGE>

                          REVERSE OF SERIES 2002-1 NOTE

                  This Note is one of a duly authorized issue of Notes of the
Company, designated as its Variable Funding Rental Car Asset Backed Note, Series
2002-1 (herein called the "Series 2002-1 Note"), all issued under (i) an Amended
and Restated Base Indenture, dated as of December 1, 1996 (such Base Indenture,
as the same may be amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof, is herein called the "Base Indenture"),
among the Company, Budget Group, Inc., a Delaware corporation formerly known as
Team Rental Group, Inc. ("Budget"), as servicer and as holder of the Budget
Interest, and Deutsche Bank Trust Company Americas (formerly known as Bankers
Trust Company), a New York banking corporation, as trustee (the "Trustee"), and
(ii) a Series 2002-1 Supplement, dated as of August 6, 2002 (the "Series 2002-1
Supplement"), among the Company, Budget and the Trustee. The Base Indenture and
the Series 2002-1 Supplement are referred to herein as the "Indenture". The
Series 2002-1 Note is subject to all terms of the Indenture. All terms used in
this Series 2002-1 Note that are defined in the Indenture, as amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, shall have the meanings assigned to them in or pursuant to the
Indenture, as so amended, supplemented or otherwise modified.

                  The Series 2002-1 Note, and all other Notes included in a
Group IV Series of Notes, are and will be equally and ratably secured by the
Group IV Collateral, and the Series 2002-1 Note is and will be equally and
ratably secured by the Series 2002-1 Collateral, in each case pledged as
security therefor as provided in the Indenture and the Series 2002-1 Supplement.

                  "Distribution Date" means the 25th day of each month, or, if
any such date is not a Business Day, the next succeeding Business Day,
commencing September 25, 2002.

                  As described above, the entire unpaid principal amount of this
Series 2002-1 Note shall be due and payable on the Series 2002-1 Termination
Date. Notwithstanding the foregoing, if an Amortization Event or Series 2002-1
Limited Liquidation Event of Default shall have occurred and be continuing with
respect to the Series 2002-1 Note then, in certain circumstances, principal on
the Series 2002-1 Note may be paid earlier, as described in the Indenture. All
principal payments on the Series 2002-1 Note shall be made pro rata to the
Series 2002-1 Noteholders entitled thereto.

                  Payments of interest on this Series 2002-1 Note due and
payable on each Distribution Date, together with the installment of principal
then due, if any, and any payments of principal made on any Business Day in
respect of any Decreases, to the extent not in full payment of this Series
2002-1 Note, shall be made by wire transfer to the Holder of record of this
Series 2002-1 Note (or any predecessor Series 2002-1 Note) on the Note Register
as of the close of business on each Record Date. Any reduction in the principal
amount of this Series 2002-1 Note (or any predecessor Series 2002-1 Note)

                                       A-5
<PAGE>

effected by any payments made on any date shall be binding upon all future
Holders of this Series 2002-1 Note and of any Series 2002-1 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not noted thereon. Final payment of principal (together with any accrued and
unpaid interest) on this Series 2002-1 Note will be paid to the Series 2002-1
Noteholder only upon presentation and surrender of this Series 2002-1 Note at
the Corporate Trust Office for cancellation by the Trustee.

                  The Company shall pay interest on overdue installments of
interest at the Series 2002-1 Note Rate to the extent lawful.

                  As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Series 2002-1 Note may be
registered on the Note Register upon surrender of this Series 2002-1 Note for
registration of transfer at the office or agency designated by the Company
pursuant to the Indenture, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar
duly executed by the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Series 2002-1 Notes of authorized denominations
and in the same aggregate principal amount will be issued to the designated
transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Series 2002-1 Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

                  Each Series 2002-1 Noteholder, by acceptance of the Series
2002-1 Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Trustee, the Company or
Budget on the Series 2002-1 Note or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, the
Company or Budget in its individual capacity, (ii) any owner of a beneficial
interest in the Company or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Trustee, the Company or Budget in its
individual capacity, any holder of a beneficial interest in the Company, Budget
or the Trustee or of any successor or assign of the Trustee or Budget in its
individual capacity, except (a) as any such Person may have expressly agreed and
(b) any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Company for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Series 2002-1 Note, subject to Section 13.17 of the Base Indenture.

                  Each Series 2002-1 Noteholder, by acceptance of the Series
2002-1 Note, covenants and agrees that by accepting the benefits of the
Indenture that such Series 2002-1 Noteholder will not for a period of one year
and one day following payment in full of the Series 2002-1 Note institute
against the Company, or join in any institution against the Company of, any
bankruptcy, reorganization, arrangement, insolvency or

                                       A-6
<PAGE>

liquidation proceedings under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Series 2002-1
Note, the Indenture or the Related Documents.

                  Prior to the due presentment for registration of transfer of
this Series 2002-1 Note, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name the Series 2002-1 Note (as of
the day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
the Series 2002-1 Note be overdue, and neither the Company, the Trustee nor any
such agent shall be affected by notice to the contrary.

                  It is the intent of the Company and each Series 2002-1
Noteholder that, for Federal, state and local income and franchise tax purposes,
the Series 2002-1 Note will evidence indebtedness of the Company secured by the
Collateral. Each Series 2002-1 Noteholder, by the acceptance of the Series
2002-1 Note, agrees to treat the Series 2002-1 Note for Federal, state and local
income and franchise tax purposes as indebtedness of the Company.

                  The Indenture permits in certain circumstances, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the
Series 2002-1 Note under the Indenture at any time by the Company with the
consent of the Holders of the Series 2002-1 Note representing more than 50% in
principal amount of the Outstanding Series 2002-1 Note which are affected by
such amendment or modification. The Indenture also contains provisions
permitting the Holders of Series 2002-1 Note representing specified percentages
of the Outstanding Series 2002-1 Note, on behalf of the Holders of the Series
2002-1 Note, to waive compliance by the Company with certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder
of the Series 2002-1 Note (or any predecessor Series 2002-1 Note) shall be
conclusive and binding upon such Holder and upon all future Holders of the
Series 2002-1 Note and of the Series 2002-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon the Series 2002-1 Note. The Indenture
also permits the Trustee to amend or waive certain terms and conditions set
forth in the Indenture without the consent of Holders of the Series 2002-1 Note.

                  The term "Company" as used in this Series 2002-1 Note includes
any successor to the Company under the Indenture.

                  The Series 2002-1 Note is issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations set
forth therein.

                  The Series 2002-1 Note and the Indenture shall be construed in
accordance with the law of the State of New York, without reference to its
conflict of law

                                       A-7
<PAGE>

provisions, and the obligations, rights and remedies of the parties hereunder
and thereunder shall be determined in accordance with such law.

                  No reference herein to the Indenture and no provision of the
Series 2002-1 Note or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
interest on the Series 2002-1 Note at the times, place, and rate, and in the
coin or currency herein prescribed, subject to any duty of the Company to deduct
or withhold any amounts as required by law, including any applicable U.S.
withholding taxes.

                                       A-8
<PAGE>

                             INCREASES AND DECREASES

<TABLE>
<CAPTION>
===========================================================================================
           UNPAID                                    SERIES
          PRINCIPAL                                  2002-1     INTEREST PERIOD  NOTATION
  DATE     AMOUNT     INCREASE   DECREASE   TOTAL   NOTE RATE   (IF APPLICABLE)   MADE BY
===========================================================================================
<S>       <C>         <C>        <C>        <C>     <C>         <C>              <C>

</TABLE>

                                       A-9
<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
     ---------------------------------------------------------------------------
                         (name and address of assignee)

the within Series 2002-1 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints ________________, attorney, to transfer said Series
2002-1 Note on the books kept for registration thereof, with full power of
substitution in the premises.

Dated:                                                                        *
       ----------------------------                -----------------------------
                                                          Signature
                                                          Guaranteed:

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

---------------
(*)/ NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Series 2002-1 Note in
every particular, without alteration, enlargement or any change whatsoever.

                                      A-10
<PAGE>

                                                                       EXHIBIT B
                                                                              TO

                                                        SERIES 2002-1 SUPPLEMENT

                         List of Approved Manufacturers

Eligible Type I Repurchase Manufacturers

Ford Motor Company
Toyota Motor Sales, U.S.A., Inc.
Daimler Chrysler Corporation

<TABLE>
<S>                                             <C>
Eligible Type II Repurchase Manufacturers       Maximum Manufacturer Percentage (if any)

Nissan Motors Corporation in the U.S.A., Inc.
Hyundai Motor America                                                10%*
KIA Motors America, Inc.                                              7%*
</TABLE>

*Hyundai Motor America and KIA Motors America, Inc. (combined)  15%

Eligible Non-Repurchase Manufacturers

Ford Motor Company
Toyota Motor Sales, U.S.A., Inc.
Daimler Chrysler Corporation
Nissan Motors Corporation in the U.S.A., Inc.
Hyundai Motor America
KIA Motors America, Inc.
<PAGE>

                                                                  EXECUTION COPY

                            SERIES 2002-1 SUPPLEMENT

                           dated as of August 6, 2002
                                     to the

                       AMENDED AND RESTATED BASE INDENTURE
                          dated as of December 1, 1996

                                      among

                        TEAM FLEET FINANCING CORPORATION,
                                   the Issuer

                               BUDGET GROUP, INC.
                                  the Servicer

                               BUDGET GROUP, INC.,
                            the Budget Interestholder

                                       and

                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                   the Trustee<PAGE>
                                                                     EXHIBIT 4.2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                       PAGE
<S>      <C>                                                                                           <C>
1.       DEFINITIONS....................................................................................2

2.       GENERAL AGREEMENT..............................................................................2
         2.1      Leasing of Group IV Vehicles..........................................................4
         2.2      Right of Lessees to Act as Lessor's Agent.............................................6
         2.3      Payment of Capitalized Cost by Lessor.................................................6
         2.4      Non-liability of Lessor...............................................................7
         2.5      Conditions Precedent..................................................................8

3.       TERM..........................................................................................12
         3.1      Vehicle Term: Group IV Type I Repurchase Vehicles....................................12
         3.2      Vehicle Term: Group IV Type II Repurchase Vehicles...................................13
         3.3      Vehicle Term:  Group IV Non-Repurchase Vehicles......................................14
         3.4      The "Lease Commencement Date"........................................................15

4.       RENT AND CHARGES..............................................................................15
         4.1      Payment of Rent......................................................................15
         4.2      Payment of Monthly Supplemental Payments.............................................15
         4.3      Payment of Supplemental Rent.........................................................15
         4.4      Payment of Termination Payments, Casualty Payments, and Late
                  Return Payments......................................................................16
         4.5      Late Payment.........................................................................16
         4.6      Prepayments..........................................................................16

5.       INSURANCE.....................................................................................16
         5.1      Personal Injury and Damage...........................................................16
         5.2      Delivery of Certificate of Insurance.................................................16
         5.3      Changes in Insurance Coverage........................................................16

6.       CASUALTY OBLIGATION...........................................................................17
         6.1      Casualty.............................................................................17

7.       VEHICLE USE...................................................................................17

8.       REGISTRATION; LICENSE; TRAFFIC SUMMONSES; PENALTIES
         AND FINES.....................................................................................18

9.       MAINTENANCE AND REPAIRS.......................................................................19

10.      VEHICLE WARRANTIES............................................................................19
</TABLE>

                                       i

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                       PAGE
<S>      <C>                                                                                           <C>
11.      VEHICLE RETURN GUIDELINES.....................................................................19
         11.1     Vehicle Turn-in-Condition............................................................19
         11.2     Return...............................................................................20
         11.3     Termination Payments.................................................................20
         11.4     Repurchase Price Interest............................................................20

12.      DISPOSITION PROCEDURE.........................................................................21

13.      ODOMETER DISCLOSURE REQUIREMENT...............................................................21

14.      REDESIGNATION OF VEHICLES.....................................................................21

15.      GENERAL INDEMNITY.............................................................................22
         15.1     Indemnity by the Lessees.............................................................22
         15.2     Reimbursement Obligation by the Lessee Group.........................................24
         15.3     Defense of Claims....................................................................24

16.      ASSIGNMENT....................................................................................25
         16.1     Right of the Lessor to Assign this Agreement.........................................25
         16.2     Limitations on the Right of the Lessee to Assign this Agreement......................25

17.      DEFAULT AND REMEDIES THEREFOR.................................................................25
         17.1     Lease Events of Default..............................................................25
         17.2     Effect of Lease Event of Default.....................................................27
         17.3     Rights of Lessor Upon Lease Event of Default or Limited
                  Liquidation Event of Default.........................................................28
         17.4     Rights of Trustee Upon Limited Liquidation Event of Default and
                  Non-Performance of Certain Covenants.................................................29
         17.5     Measure of Damages...................................................................30
         17.6     Application of Proceeds..............................................................31

18.      MANUFACTURER EVENTS OF DEFAULT................................................................32

19.      LESSEE PARTIAL WIND-DOWN EVENTS...............................................................33

20.      ELIGIBILITY WAIVER EVENTS.....................................................................33

21.      CERTIFICATION OF TRADE OR BUSINESS USE........................................................33

22.      SURVIVAL......................................................................................33

23.      ADDITIONAL LESSEES............................................................................34
</TABLE>

                                     ii
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                       PAGE
<S>      <C>                                                                                           <C>
24.      GUARANTY.......................................................................................35
         24.1     Guaranty..............................................................................35
         24.2     Scope of Guarantor's Liability........................................................35
         24.3     Lessor's Right to Amend this Agreement, Etc...........................................36
         24.4     Waiver of Certain Rights by Guarantor.................................................36
         24.5     Lessees' Obligations to Guarantor and Guarantor's Obligations to
                  Lessees Subordinated..................................................................37
         24.6     Guarantor to Pay Lessor's Expenses....................................................38
         24.7     Reinstatement.........................................................................39
         24.8     Pari Passu Indebtedness...............................................................39

25.      RIGHTS OF LESSOR ASSIGNED TO TRUSTEE...........................................................39

26.      RIGHT OF LESSEE TO DELEGATE RIGHTS AND OBLIGATIONS
         HEREUNDER TO GUARANTOR.........................................................................40

27.      MODIFICATION AND SEVERABILITY..................................................................40

28.      CERTAIN REPRESENTATIONS AND WARRANTIES.........................................................41
         28.1     Due Organization, Authorization, etc..................................................41
         28.2     Financial Information; Financial Condition............................................42
         28.3     Litigation............................................................................42
         28.4     Liens.................................................................................42
         28.5     Employee Benefit Plans................................................................43
         28.6     Investment Company Act................................................................43
         28.7     Regulations T, U and X................................................................43
         28.8     Business Locations; Trade Names; Principal Places of Business
                  Locations.............................................................................43
         28.9     Taxes.................................................................................43
         28.10    Governmental Authorization............................................................44
         28.11    Compliance with Laws..................................................................44
         28.12    Eligible Vehicles.....................................................................44
         28.13    Supplemental Documents True and Correct...............................................44
         28.14    Accuracy of Information...............................................................44

29.      CERTAIN AFFIRMATIVE COVENANTS..................................................................45
         29.1     Corporate Existence; Foreign Qualification............................................45
         29.2     Books, Records and Inspections........................................................45
         29.3     Insurance.............................................................................45
         29.4     Repurchase Programs...................................................................46
         29.5     Reporting Requirements................................................................46
         29.6     Taxes and Liabilities.................................................................49
</TABLE>

                                      iii

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                                       PAGE
<S>      <C>                                                                                           <C>
         29.7     Compliance with Laws..................................................................50
         29.8     Maintenance of Separate Existence.....................................................50
         29.9     Trustee as Lienholder.................................................................50

30.      CERTAIN NEGATIVE COVENANTS.....................................................................50
         30.1     Mergers, Consolidations...............................................................50
         30.2     Other Agreements......................................................................51
         30.3     Liens.................................................................................51
         30.4     Use of Vehicles.......................................................................51

31.      BANKRUPTCY PETITION AGAINST LESSOR.............................................................51

32.      SUBMISSION TO JURISDICTION.....................................................................52

33.      GOVERNING LAW..................................................................................52

34.      JURY TRIAL.....................................................................................52

35.      NOTICES........................................................................................53

36.      LIABILITY......................................................................................53

37.      TITLE TO REPURCHASE PROGRAMS IN LESSOR.........................................................53

38.      HEADINGS.......................................................................................54

39.      EXECUTION IN COUNTERPARTS......................................................................54

40.      EFFECTIVENESS..................................................................................54
</TABLE>

                                       iv
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                 PAGE
<S>                           <C>                                                <C>

ANNEX A                       OPERATING LEASE TERMS
ANNEX B                       FINANCING LEASE TERMS

SCHEDULE I                    LESSEES ON DATE OF EXECUTION OF LEASE
SCHEDULE II                   NOTICE ADDRESSES
SCHEDULE 28.8                 BUSINESS LOCATIONS
ATTACHMENT A-1                INFORMATION ON REFINANCED VEHICLES &
                              ELIGIBLE RECEIVABLES

ATTACHMENT A-2                GROUP IV VEHICLE ACQUISITION SCHEDULE
ATTACHMENT B                  FORM OF POWER OF ATTORNEY
ATTACHMENT C                  FORM OF JOINDER IN LEASE
</TABLE>

                                        v

<PAGE>

                        TEAM FLEET FINANCING CORPORATION,
                                    AS LESSOR

                               BUDGET GROUP, INC.,
                                  AS GUARANTOR

                         BUDGET RENT A CAR SYSTEMS, INC.

                      and those Subsidiaries and Affiliates
                              of Budget Group, Inc.
                           named on Schedule 1 hereto,
                                   AS LESSEES

                           SECOND AMENDED AND RESTATED
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP IV

                           Dated as of August 6, 2002

AS SET FORTH IN SECTION 25 HEREOF, THE LESSOR HAS ASSIGNED TO THE TRUSTEE (AS
DEFINED HEREIN) CERTAIN OF ITS RIGHT, TITLE AND INTEREST IN AND TO THIS LEASE.
TO THE EXTENT, IF ANY, THAT THIS LEASE CONSTITUTES CHATTEL PAPER (AS SUCH TERM
IS DEFINED IN THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE
JURISDICTION) NO SECURITY INTEREST IN THIS LEASE MAY BE CREATED THROUGH THE
TRANSFER OR POSSESSION OF ANY COUNTERPART OTHER THAN THE ORIGINAL EXECUTED
COUNTERPART, WHICH SHALL BE IDENTIFIED AS THE COUNTERPART CONTAINING THE RECEIPT
THEREFOR EXECUTED BY THE TRUSTEE ON THE SIGNATURE PAGE THEREOF.

<PAGE>

                 MASTER MOTOR VEHICLE LEASE AGREEMENT - GROUP IV

         This Second Amended and Restated Master Motor Vehicle Lease Agreement -
Group IV (this "Agreement" or "Lease"), dated as of August 6, 2002 by and among
TEAM FLEET FINANCING CORPORATION, a Delaware corporation ("Lessor"), BUDGET RENT
A CAR SYSTEMS, INC. ("Budget Systems"), a Delaware corporation, and those direct
or indirect Subsidiaries (the "Budget Subsidiaries") of Budget Group, Inc.
("Budget"), a Delaware corporation formerly known as Team Rental Group, Inc.
("Team") and those Affiliates (other than the Budget Subsidiaries) (such
Affiliates, the "Non-Budget Lessees") of Budget that are listed on Schedule 1
hereto and those that become party to this Agreement pursuant to the provisions
of Section 23 hereof (individually, each Budget Subsidiary and each Non-Budget
Lessee, a "Lessee" and, collectively, the "Lessees"), and BUDGET GROUP, INC., as
guarantor (Budget in such capacity, the "Guarantor"; the Guarantor, together
with the Lessees, is from time to time referred to as the "Lessee Group").

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

         WHEREAS, the Lessor (such capitalized term, together with all other
capitalized terms used herein, shall have the meaning assigned thereto in
Section 1) intends to purchase, finance the purchase of and refinance additional
Financed Vehicles that are Eligible Repurchase Vehicles and Eligible
Non-Repurchase Vehicles from one or more Manufacturers with (i) the proceeds
obtained by the issuance from time to time of Group IV Series of Notes and (ii)
certain other funds;

         WHEREAS, the Lessor has purchased or will purchase Lessor-Owned
Vehicles, and will finance the acquisition of Financed Vehicles, that are Group
IV Type I Repurchase Vehicles, Group IV Type II Repurchase Vehicles and Group IV
Non-Repurchase Vehicles from Manufacturers through dealers authorized by such
Manufacturers, at auctions conducted by automobile dealers not affiliated with
Budget, from Affiliates of Budget or through other vehicle sales;

         WHEREAS, the Lessor desires to lease to the Lessees, and the Lessees
desire to lease from the Lessor, Group IV Type I Repurchase Vehicles, Group IV
Type II Repurchase Vehicles and Group IV Non-Repurchase Vehicles so acquired,
financed or refinanced by the Lessor for use in the daily vehicle rental
businesses of the Lessees;

         WHEREAS, the parties hereto have entered into the Amended and Restated
Master Motor Vehicle Lease Agreement - Group IV, dated as of July 24, 2001 (the
"Prior Group IV Lease") and such parties desire to amend and restate the Prior
Group IV Lease in its entirety;

         WHEREAS, on July 29, 2002 (the "Petition Date"), each of Budget and the
Group IV Lessees filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code and each is entering into this Lease in its capacity as a debtor
and debtor-in-possession;

<PAGE>

         WHEREAS, no Vehicles were being leased under the Prior Group IV Lease
immediately prior to the execution of this Lease and this Lease is intended to
have the same effect as a new lease entered into after the commencement of the
Bankruptcy Proceedings;

         WHEREAS, the Guarantor has, pursuant to Section 24 hereof, guaranteed
the obligations of the Lessees under this Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises, and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

         1.       DEFINITIONS. Capitalized terms used herein (including the
preamble and the recitals hereto) and not otherwise defined herein shall have
the meanings ascribed to such terms in (a) the Definitions List (the
"Definitions List") attached as Schedule 1 to the Amended and Restated Base
Indenture, dated as of December 1, 1996, among the Lessor, Team (now known as
Budget) and Deutsche Bank Trust Company Americas, formerly known as Bankers
Trust Company, a New York banking corporation, as trustee, as such Definitions
List may be amended or modified from time to time in accordance with the
provisions of the Indenture, and (b) each Supplement to the Base Indenture
relating to a Series of Notes identified in such Supplement as being a Group IV
Series of Notes. Unless the context otherwise requires, terms defined in both
the Base Indenture and one or more of such Series Supplements shall have the
meanings assigned to such terms in the applicable Series Supplements.

         2.       GENERAL AGREEMENT

         (a)      As specified in the attachments hereto, the Lessees and the
Lessor intend that this Agreement be (i) an operating lease with respect to the
Lessor-Owned Vehicles and (ii) a financing arrangement with respect to the
Financed Vehicles.

         (b)      If, notwithstanding the intent of the parties to this
Agreement, this Agreement is characterized by any third party as a financing
arrangement or as otherwise not constituting a "true lease" with respect to the
Lessor-Owned Vehicles, then it is the intention of the parties that this
Agreement, as it applies to the Lessor-Owned Vehicles, shall constitute a
security agreement under applicable law. It is the intention of the parties that
this Agreement, as it applies to the Financed Vehicles, shall in all events
constitute a security agreement under applicable law. In furtherance thereof, as
collateral security for the prompt and complete payment and performance when due
(whether at stated maturity, by acceleration or otherwise) of all of the
obligations and liabilities of each Lessee to the Lessor hereunder, whether
direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred (including interest accruing after the Lease
Expiration Date and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding), which may arise under, out of, or in connection with, this
Agreement and any other document made, delivered or given in connection
herewith, whether on account of rent, principal, interest, reimbursement
obligations, fees, indemnities, costs or expenses

                                       2
<PAGE>

(including all fees and disbursements of counsel to the Lessor or the Trustee
that are required to be paid by such Lessee pursuant to the terms hereof), each
Lessee hereby grants to the Lessor a first priority security interest in all of
such Lessee's right, title and interest, if any, in and to all of the following
assets, property and interests in property, whether now owned or hereafter
acquired or created (the "Lease Collateral"):

                  (i)      the rights of such Lessee under this Agreement, as
         the same may be amended, modified or supplemented from time to time in
         accordance with its terms, and any other agreements related to or in
         connection with this Agreement to which such Lessee is a party (the
         "Lessee Agreements"), including, without limitation, (a) all monies due
         and to become due to such Lessee from the Guarantor and the Lessees
         under or in connection with the Lessee Agreements, whether payable as
         rent, guaranty payments, fees, expenses, costs, indemnities, insurance
         recoveries, damages for the breach of any of the Lessee Agreements or
         otherwise, (b) all rights, remedies, powers, privileges and claims of
         such Lessee against any other party under or with respect to the Lessee
         Agreements (whether arising pursuant to the terms of such Lessee
         Agreements or otherwise available to such Lessee at law or in equity),
         including the right to enforce any of the Lessee Agreements and to give
         or withhold any and all consents, requests, notices, directions,
         approvals, extensions or waivers under or with respect to the Lessee
         Agreements or the obligations of any party thereunder, (c) all Liens
         and property from time to time purporting to secure payment arising
         under or in connection with the Lessee Agreements, together with all
         financing statements filed in favor of, or assigned to, such Lessee
         describing any collateral securing such obligations or liabilities and
         (d) all guarantees, insurance and other agreements or arrangements of
         whatever character from time to time supporting or securing payment of
         such obligations and liabilities of such Lessee pursuant to the Lessee
         Agreements;

                  (ii)     all Lessor-Owned Vehicles leased by such Lessee from
         the Lessor pursuant to this Agreement which, notwithstanding that this
         Agreement is intended to convey only a leasehold interest in such
         Lessor-Owned Vehicles, are determined to be owned by such Lessee, and
         all Certificates of Title with respect to such Lessor-Owned Vehicles;

                  (iii)    all Financed Vehicles leased by such Lessee from the
         Lessor pursuant to this Agreement, and all Certificates of Title with
         respect to such Group IV Vehicles;

                  (iv)     all right, title and interest of such Lessee in, to
         and under any Repurchase Programs and all monies due and to become due
         thereunder in respect of (A) Lessor-Owned Vehicles leased under this
         Agreement which, notwithstanding that this Agreement is intended to
         convey only a leasehold interest in such Lessor-Owned Vehicles, are
         determined to be owned by such Lessee, and (B) Financed Vehicles leased
         under this Agreement, in each case, whether payable as Repurchase
         Prices or Guaranteed Payments;

                                       3
<PAGE>

                  (v)      the Collection Account (to the extent of funds and
         other items therein described in clauses (a), (b) and (c) below), the
         Group IV Collection Account and each other collection account
         established pursuant to a Series Supplement with respect to a Group IV
         Series of Notes; (a) all funds on deposit therein allocable to Group IV
         Vehicles from time to time; (b) all certificates and instruments, if
         any, representing or evidencing any or all of such accounts or the
         funds on deposit therein allocable to Group IV Vehicles from time to
         time; and (c) all investments made at any time and from time to time
         with the moneys allocable to Group IV Vehicles in such accounts
         (including income thereon, including, without limitation, any and all
         such accounts, certificates, instruments and investments constituting
         "investment property" as defined in the UCC as in effect from time to
         time in the State of New York);

                  (vi)     all additional property that may from time to time
         hereafter be subjected to the grant and pledge under this Agreement, as
         the same may be modified or supplemented from time to time, by such
         Lessee or by anyone on its behalf; and

                  (vii)    all proceeds of any and all of the foregoing
         including, without limitation, payments under insurance (whether or not
         the Lessor is the loss payee thereof) and cash, but not including (for
         the avoidance of doubt) payments under consumer rental agreements.

         2.1      Leasing of Group IV Vehicles(a) . (a) From time to time,
subject to the terms and provisions hereof, the Lessor agrees to lease to each
Lessee, and each Lessee agrees to lease from the Lessor, subject to the terms
hereof, the Group IV Type I Repurchase Vehicles, Group IV Type II Repurchase
Vehicles and Group IV Non-Repurchase Vehicles constituting the Refinanced
Vehicles and each additional Lessor-Owned Vehicle and Financed Vehicle
identified in certain vehicle orders (each, a "Group IV Vehicle Order") produced
from time to time by a Lessee, listing Eligible Repurchase Vehicles and Eligible
Non-Repurchase Vehicles ordered by such Lessee from Eligible Manufacturers or
dealers, for itself or as agent for the Lessor, pursuant to the terms of any
applicable Repurchase Program or otherwise. Subject to the conditions precedent
set forth in Section 2.5 hereof and to compliance with the terms of the related
Series Supplements, the Lessor shall make available to the applicable Lessee (i)
financing for the Financed Vehicles and (ii) Lessor-Owned Vehicles for lease to
the Lessees hereunder in an aggregate amount (each such financing or
Lessor-Owned Vehicle made available, a "Master Lease Advance").

         (b)      With respect to (i) the refinancing of any other Eligible
Repurchase Vehicle or Eligible Non-Repurchase Vehicle (including, without
limitation, any Group IV Vehicles previously subject to any other Leases and
refinanced pursuant to this Agreement, the "Refinanced Vehicles"), and/or (ii)
the refinancing of Eligible Receivables, each applicable Lessee shall make
available to the Lessor a schedule as set forth in Attachment A-1 hereto
containing information concerning the Refinanced Vehicles and the Eligible
Receivables, of a scope agreed upon by the Lessor (a "Refinancing Schedule").

                                       4
<PAGE>

         (c)      With respect to any lease of Group IV Vehicles, not described
in (b) above, each applicable Lessee shall make available to the Lessor a
schedule containing the information with respect to such Group IV Vehicles as is
set forth in Attachment A-2 hereto (each, a "Group IV Vehicle Acquisition
Schedule"), or in such form as is otherwise requested by the Lessor. In
addition, each Lessee leasing Vehicles pursuant to such Group IV Vehicle Order
agrees to provide such other information regarding such Vehicles as the Lessor
may require from time to time.

         (d)      The Lessees and the Lessor acknowledge that concurrently with
the execution and delivery of this Agreement, the Lessees specified on Schedule
1 hereto have made available to the Lessor Group IV Vehicle Orders to lease
Eligible Repurchase Vehicles currently owned by the Lessor pursuant to this
Agreement, together with the required Group IV Vehicle Acquisition Schedules or
Refinancing Schedule, as the case may be, in respect of such Group IV Vehicle
Orders.

         (e)      The Lessor and the Lessees each acknowledge that either
concurrently with the execution and delivery of this Agreement or after the date
of this Agreement on not less than one Business Day's written notice to the
Lessor and the Trustee, any Lessee may request that the Lessor purchase, or
finance the Lessee's purchase of, an Eligible Type II Repurchase Vehicle or an
Eligible Non-Repurchase Vehicle from a licensed independent automobile dealer
through an auction or other vehicle sale (each, an "Auction Acquired Vehicle")
for a purchase price equal to the Capitalized Cost of such Auction Acquired
Vehicle, in which event such Lessee shall, immediately upon the consummation of
such sale, lease such Auction Acquired Vehicle from the Lessor pursuant to this
Agreement (each such transaction is referred to as an "Auction Sale
Transaction"). In connection with each Auction Sale Transaction, to evidence the
conveyance of the Auction Acquired Vehicles from the applicable dealer to the
Lessor (in the case of Lessor-Owned Vehicles) or the applicable Lessee (in the
case of Financed Vehicles), the applicable Lessee shall make available to (or,
upon request by the Lessor, deliver to) the Lessor the following:

                  (i)      a Group IV Vehicle Order (including a Group IV
         Vehicle Acquisition Schedule) with respect to all Auction Acquired
         Vehicles covered by such Auction Sale Transaction;

                  (ii)     the original Certificate of Title for each Auction
         Acquired Vehicle together with a completed application to retitle such
         Auction Acquired Vehicle in the name of the Lessor and to have noted
         thereon the Trustee's security interest in such Auction Acquired
         Vehicle pursuant to the Indenture; and

                  (iii)    a bill of sale, substantially in the form attached
         hereto as Attachment D (each, an "Auction Bill of Sale"), conveying
         title to the Auction Acquired Vehicles, and copies of any certificate
         given by the related auction house or dealer, as applicable, regarding
         the absence of liens and/or the ownership of each such Group IV
         Vehicle.

                                       5
<PAGE>

Notwithstanding the foregoing provisions of this Section 2.1(e), the Lessor
shall not acquire any Auction Acquired Vehicle for which it does not have a new
Certificate of Title if, after giving effect to such acquisition, the aggregate
Net Book Value of all such Auction Acquired Vehicles without a new Certificate
of Title would exceed 5% of the Aggregate Asset Amount. Other than Auction Sale
Transactions complying with the provisions of this Section 2.1, the Lessor shall
not purchase any Eligible Type II Repurchase Vehicles or Eligible Non-Repurchase
Vehicles for leasing or financing under this Agreement from any independent
dealer at an auction. After any purchase or financing of Group IV Vehicles by
the Lessor at auction, such Group IV Vehicles will be subject to all the terms
and conditions of this Agreement.

         (f)      The Lessor shall lease to the Lessees, and the Lessees shall
lease from the Lessor, only Group IV Vehicles that are Eligible Vehicles. This
Agreement, together with any other related documents attached to this Agreement
or submitted with a Group IV Vehicle Order or Refinancing Schedule, including
without limitation any documents in connection with an Eligible Repurchase
Program (collectively, the "Supplemental Documents"), will constitute the entire
agreement regarding the leasing of Vehicles by the Lessor to the Lessees
hereunder.

         2.2      Right of Lessees to Act as Lessor's Agent. The Lessor agrees
that any member of the Lessee Group may act as the Lessor's agent in placing
Group IV Vehicle Orders on behalf of the Lessor, as well as filing claims on
behalf of the Lessor for damage in transit, and other Manufacturer delivery
claims related to the Group IV Vehicles leased hereunder; provided, however,
that the Lessor may hold the Lessee Group liable for losses due to such member
of the Lessee Group's actions in performing as the Lessor's agent hereunder. In
addition, the Lessor agrees that each Lessee may make arrangements for delivery
of Group IV Vehicles to a location selected by the relevant Lessee at such
Lessee's expense. Each Lessee agrees to accept Group IV Non-Repurchase Vehicles
as produced and delivered, subject to the right of such Lessee to reject any
such Group IV Non-Repurchase Vehicles damaged in transit or not conforming to
the related Group IV Vehicle Order. Each Lessee agrees to accept Group IV
Repurchase Vehicles as produced and delivered except each Lessee will have the
option to reject any Group IV Repurchase Vehicle that may be rejected pursuant
to the terms of the applicable Repurchase Program. The relevant Lessee, acting
as agent for the Lessor, shall be responsible for pursuing any rights of the
Lessor with respect to the return of any Group IV Repurchase Vehicle to the
Manufacturer pursuant to the preceding two sentences. Any member of the Lessee
Group that places a Group IV Vehicle Order for a Group IV Repurchase Vehicle
pursuant to this Agreement agrees that all Group IV Repurchase Vehicles ordered
as provided herein shall be ordered utilizing the procedures consistent with the
applicable Eligible Repurchase Program.

         2.3      Payment of Capitalized Cost by Lessor

         (a)      Upon invoicing of any Group IV Vehicle by the Manufacturer or
other seller thereof, the Lessor shall make a Master Lease Advance hereunder to
pay to the Manufacturer, dealer or other seller of such Group IV Vehicle (or to
reimburse the applicable Lessee for) the costs and expenses incurred by the
Lessor or such Lessee, as

                                       6
<PAGE>

applicable, in connection with the acquisition of such Group IV Vehicle as
established by the invoice delivered in connection with such Group IV Vehicle
(the "Capitalized Cost"). The relevant Lessee shall be responsible for all
damage in transit and shall pay all applicable costs and expenses of freight,
packing, handling, storage, shipment and delivery of such Group IV Vehicle to
the extent that the same have not been included within the Capitalized Cost;
provided that solely in the case of any Refinanced Vehicle and any Eligible
Receivable, the Lessor shall make Master Lease Advances to pay to the applicable
owner thereof (x) the aggregate Net Book Value, Type II Repurchase Vehicle Value
or Non-Repurchase Vehicle Value (as applicable) as of the Vehicle Lease
Commencement Date of the Refinanced Vehicles and (y) the face amount of the
Eligible Receivables being refinanced on the Vehicle Lease Commencement Date.

         (b)      Each Master Lease Advance made by the Lessor (i) with respect
to a Group IV Type I Repurchase Vehicle, shall be in an amount not exceeding the
Net Book Value of such Group IV Type I Repurchase Vehicle, (ii) with respect to
a Group IV Type II Repurchase Vehicle, shall be in an amount not exceeding the
Type II Repurchase Vehicle Value of such Group IV Type II Repurchase Vehicle and
(iii) with respect to a Non-Repurchase Vehicle, shall be in an amount not
exceeding the Non-Repurchase Vehicle Value of such Non-Repurchase Vehicle. The
aggregate amount of Master Lease Advances outstanding at any time shall not
exceed the Maximum Lease Commitment at such time.

         2.4      Non-liability of Lessor. The Lessor shall not be liable to any
of the Lessees for any failure or delay in obtaining Group IV Vehicles or making
delivery thereof. AS BETWEEN THE LESSOR AND EACH LESSEE, ACCEPTANCE FOR LEASE OF
THE GROUP IV VEHICLES SHALL CONSTITUTE SUCH LESSEE'S ACKNOWLEDGMENT AND
AGREEMENT THAT SUCH LESSEE HAS FULLY INSPECTED SUCH GROUP IV VEHICLES, THAT THE
GROUP IV VEHICLES ARE IN GOOD ORDER AND CONDITION AND ARE OF THE MANUFACTURE,
DESIGN, SPECIFICATIONS AND CAPACITY SELECTED BY THE LESSEE, THAT SUCH LESSEE IS
SATISFIED THAT THE SAME ARE SUITABLE FOR THIS USE AND THAT THE LESSOR IS NOT A
MANUFACTURER, AN AGENT OF A MANUFACTURER, OR OTHERWISE ENGAGED IN THE SALE OR
DISTRIBUTION OF GROUP IV VEHICLES, AND HAS NOT MADE AND DOES NOT HEREBY MAKE ANY
REPRESENTATION, WARRANTY OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO
MERCHANTABILITY, CONDITION, QUALITY, DURABILITY OR SUITABILITY OF THE VEHICLE IN
ANY RESPECT OR IN CONNECTION WITH OR FOR THE PURPOSES OR USES OF SUCH LESSEE, OR
ANY WARRANTY THAT THE LEASED VEHICLES WILL SATISFY THE REQUIREMENTS OF ANY LAW
OR ANY CONTRACT SPECIFICATION, OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT
OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO AND AS
BETWEEN THE LESSOR AND SUCH LESSEE, SUCH LESSEE AGREES TO BEAR ALL SUCH RISKS AT
ITS SOLE COST AND EXPENSE. EACH LESSEE SPECIFICALLY WAIVES ALL RIGHTS TO MAKE
CLAIMS AGAINST THE LESSOR AND ANY LEASED VEHICLE FOR BREACH OF ANY WARRANTY OF
ANY KIND WHATSOEVER AND, AS TO THE LESSOR, SUCH LESSEE LEASES

                                       7
<PAGE>

THE VEHICLES "AS IS." The Lessor shall not be liable for any failure or delay in
delivering any Vehicle ordered for lease pursuant to this Agreement, or for any
failure to perform any provision hereof, resulting from fire or other casualty,
natural disaster, riot, strike or other labor difficulty, governmental
regulation or restriction, or any cause beyond the Lessor's direct control. IN
NO EVENT SHALL THE LESSOR BE LIABLE FOR ANY INCONVENIENCES, LOSS OF PROFITS OR
ANY OTHER CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, WHATSOEVER OR HOWSOEVER
CAUSED, WHETHER RESULTING FROM ANY DEFECT IN OR ANY THEFT, DAMAGE, LOSS OR
FAILURE OF ANY VEHICLE, OR OTHERWISE AND THERE SHALL BE NO ABATEMENT OF RENT
BECAUSE OF THE SAME.

         2.5      Conditions Precedent. The agreement of the Lessor to make
available any Master Lease Advance for the acquisition of any Lessor-Owned
Vehicle for lease to a Lessee and to make available any Master Lease Advance for
the acquisition of any Texas Vehicles and Hawaii Vehicles or the refinancing of
any Refinanced Vehicle for lease to a Lessee, is subject to the terms and
conditions of the Indenture and to the following conditions precedent as of the
Vehicle Lease Commencement Date for such Vehicle:

                  (a)      Limitations on the Acquisition of Certain Vehicles.
         Unless waived by the Required Noteholders as specified in the related
         Series Supplements:

                           (i)      the quotient (expressed as a percentage)
                  obtained by dividing (x) the aggregate Non-Repurchase Vehicle
                  Value of all Group IV Non-Repurchase Vehicles leased under
                  this Agreement as of such date (after giving effect to the
                  inclusion of such Vehicle under this Agreement) by (y) the
                  greater of (A) the Aggregate Asset Amount as of such date
                  (after giving effect to the inclusion of such Vehicle under
                  this Agreement) and (B) the sum of the Group IV Invested
                  Amount as of such date plus the available subordinated amounts
                  for all Group IV Series of Notes as of such date, shall not
                  exceed the Maximum Non-Repurchase Vehicle Percentage (if any)
                  for any Group IV Series of Notes;

                           (ii)     the quotient (expressed as a percentage)
                  obtained by dividing (x) the aggregate Type II Repurchase
                  Vehicle Value of all Group IV Type II Repurchase Vehicles
                  leased under this Agreement (after giving effect to the
                  inclusion of such Vehicle under this Agreement) by (y) the
                  greater of (A) the Aggregate Asset Amount as of such date
                  (after giving effect to the inclusion of such Vehicle under
                  this Agreement) and (B) the sum of the Group IV Invested
                  Amount as of such date plus the available subordinated amounts
                  for all Group IV Series of Notes as of such date, shall not
                  exceed the Maximum Type II Repurchase Vehicle Percentage (if
                  any) for any Group IV Series of Notes;

                           (iii)    the quotient (expressed as a percentage)
                  obtained by dividing (x) the aggregate Net Book Value of all
                  Group IV Type I Repurchase Vehicles, the Type II Repurchase
                  Vehicle Value of all Group IV Type II Repurchase Vehicles and
                  the Non-Repurchase Vehicle Value

                                       8
<PAGE>

                  of Group IV Non-Repurchase Vehicles manufactured by the same
                  Manufacturer and leased under this Agreement as of such date
                  after giving effect to the inclusion of such Vehicle under
                  this Agreement) by (y) the greater of (A) the Aggregate Asset
                  Amount as of such date (after giving effect to the inclusion
                  of such Vehicle under this Agreement) and (B) the sum of the
                  Group IV Invested Amount as of such date plus the available
                  subordinated amounts for all Group IV Series of Notes as of
                  such date, shall not exceed the Maximum Manufacturer
                  Percentage (if any) for such Manufacturer;

                           (iv)     if the Maximum Non-Repurchase Vehicle
                  Percentage, the Maximum Type II Repurchase Vehicle Percentage
                  or the Maximum Manufacturer Percentage for any Group IV Series
                  of Notes has (as calculated in clause (i), (ii) or (iii)
                  above, as applicable) been exceeded on or prior to such date
                  prior to giving effect to the inclusion of such Vehicle (the
                  amount of such excess, the "Excess"), such Excess shall not
                  increase after giving effect to the inclusion of such Vehicle;

                           (v)      after giving effect to the inclusion of such
                  Vehicle under this Agreement, the (A) credit support amount
                  for any Group IV Series of Notes shall not be less than the
                  minimum credit support amount for such Series and (B) the
                  Letter of Credit Amount for any Group IV Series of Notes shall
                  not be less than the required letter of credit amount for such
                  Series; and

                           (vi)     after giving effect to the inclusion of such
                  Vehicle under this Agreement, there shall not be a failure or
                  violation of any other conditions, requirements, or
                  restrictions with respect to the leasing of Eligible Vehicles
                  under this Agreement as is specified in the related Series
                  Supplement.

                  (b)      No Default. No Potential Lease Event of Default or
         Lease Event of Default shall have occurred and be continuing on such
         date or would result from the making of such Master Lease Advance or
         the lease of such Vehicle.

                  (c)      Leases of Refinanced Vehicles. Only in connection
         with the leasing of Refinanced Vehicles and related Eligible
         Receivables on or after the Lease Commencement Date, to evidence the
         refinancing of such Refinanced Vehicles and related Eligible
         Receivables and the conveyance of a security interest in such
         Refinanced Vehicles and related Eligible Receivables to the Trustee,
         the applicable Lessees shall have made available to the Lessor on or
         prior to the applicable Vehicle Lease Commencement Date the following:

                           (i)      a Refinancing Schedule concerning such
                  Refinanced Vehicles and related Eligible Receivables being
                  refinanced on such Vehicle Lease Commencement Date;

                                       9
<PAGE>

                           (ii)     unless such Vehicle has been previously
                  liened to the Trustee, a report of the results of a search of
                  the appropriate records of the county (as applicable) and
                  state in which each such Lessee's principal place of business
                  is located and which such Lessee has been organized, which, in
                  each case, shall show no Liens or other security interests
                  (other than Permitted Liens) with respect to such Vehicles and
                  the related Repurchase Programs or, in the event that such
                  search reveals any non-permitted Lien or security interest,
                  there shall be delivered to the Lessor and the Trustee a
                  termination of such Lien or security interest together with
                  appropriate UCC termination statements or UCC partial releases
                  thereof;

                           (iii)    unless such Vehicle has been previously
                  liened to the Trustee, confirmation from each lender holding a
                  security interest in any such Refinanced Vehicle or Eligible
                  Receivable stating unconditionally (A) that, if any sums are
                  to be paid to such lender in connection with the lease of such
                  Refinanced Vehicle and the refinancing of the related Eligible
                  Receivables, such lender has been paid the full amount due to
                  it in connection with such refinancing and (B) that any Lien
                  or security interest of such lender in such Refinanced Vehicle
                  and/or Eligible Receivables, as applicable, has been released;

                           (iv)     unless such Vehicle has been previously
                  liened to the Trustee, a fully executed assignment agreement
                  granting and assigning to the Trustee (to the extent not
                  already granted and assigned) a first priority security
                  interest in each such Refinanced Vehicle and Eligible
                  Receivable, the related Repurchase Programs, if any, and any
                  other Group IV Collateral relating to such Refinanced Vehicles
                  and Eligible Receivables; and

                           (v)      unless such Vehicle has been previously
                  liened to the Trustee, delivery to the Lessor for filing in
                  the appropriate filing office fully executed UCC-1 Financing
                  Statements necessary to perfect (if not already perfected) the
                  interests of the Trustee in such Refinanced Vehicles and
                  Eligible Receivables; and

                           (vi)     an Officer's Certificate stating that all
                  the conditions precedent under this Agreement to the leasing
                  of such Refinanced Vehicles and financing of such Eligible
                  Receivables under this Agreement have been satisfied,
                  including a representation that each such receivable is an
                  Eligible Receivable and that the Lien of the Trustee (or a
                  nominee) has been noted on the Certificate of Title for each
                  such Vehicle or such other actions to cause the Trustee's Lien
                  to be a perfected first Lien have been taken by the Servicer.

                  (d)      Leases of Financed Vehicles. Only in connection with
         each lease of a Financed Vehicle after the Lease Commencement Date, to
         evidence the

                                       10
<PAGE>

         acquisition or financing of such Financed Vehicle by the Lessor and the
         conveyance of a security interest in such Financed Vehicles to the
         Trustee, the Lessee thereof shall have delivered to the Lessor on or
         prior to the applicable Vehicle Lease Commencement Date, a Group IV
         Vehicle Order (including a Group IV Vehicle Acquisition Schedule) with
         respect to all Financed Vehicles to be leased to such Lessee by the
         Lessor on the date specified therein.

                  (e)      Leases of Lessor-Owned Vehicles. Only in connection
         with the lease of any Lessor-Owned Vehicle to be leased on or after the
         Lease Commencement Date, to evidence the leasing of such Lessor-Owned
         Vehicle under this Agreement, the applicable Lessee shall have
         delivered to the Lessor on or prior to the applicable Vehicle Lease
         Commencement Date, the following:

                           (i)      a Group IV Vehicle Order (including a Group
                  IV Vehicle Acquisition Schedule) with respect to all
                  Lessor-Owned Vehicles to be leased to such Lessee by the
                  Lessor on the Vehicle Lease Commencement Date; and

                           (ii)     UCC termination statements terminating, or
                  UCC partial releases releasing, any security interests and
                  other Liens (other than Permitted Liens) in favor of any
                  Person with respect to each Lessor-Owned Vehicle identified in
                  such Group IV Vehicle Order (and any related Repurchase
                  Programs).

                  (f)      Eligible Vehicle. Each Vehicle to be leased hereunder
         on such date shall be an Eligible Vehicle.

                  (g)      Repurchase Vehicles. If such Vehicle is to be leased
         as a Group IV Repurchase Vehicle, the Lessor shall have delivered to
         the Trustee (i) a fully executed Assignment Agreement covering such
         Vehicle, (ii) the related Repurchase Program (which shall be an
         Eligible Repurchase Program), and (iii) any other Group IV Collateral
         relating to such Vehicle.

                  (h)      Series Supplement. The leasing of such Group IV
         Vehicle shall not be prohibited by the provisions of a Series
         Supplement for a Group IV Series of Notes.

                  (i)      Other Conditions. The applicable Lessee shall have
         complied with the applicable provisions of Sections 2.1 and 2.3 of this
         Agreement.

         Each Lessee hereby agrees that each such delivery of a Group IV Vehicle
Order or Refinancing Schedule shall be deemed hereunder to constitute a
representation and warranty by it, to and in favor of the Lessor and the
Trustee, that all the conditions precedent to the acquisition and leasing of the
Vehicles identified in such Group IV Vehicle Order or Refinancing Schedule have
been satisfied as of the date of such Group IV Vehicle Order or Refinancing
Schedule.

                                       11
<PAGE>

         3.       TERM.

         3.1      Vehicle Term: Group IV Type I Repurchase Vehicles. The
"Vehicle Lease Commencement Date" for each Group IV Type I Repurchase Vehicle
and Eligible Receivable shall mean the day referenced as such in the Group IV
Vehicle Acquisition Schedule or Refinancing Schedule with respect to such Group
IV Type I Repurchase Vehicle or Eligible Receivable but in no event beyond the
date that funds are expended by the Lessor to acquire such Group IV Type I
Repurchase Vehicle or Eligible Receivable. The "Vehicle Term" with respect to
each Group IV Type I Repurchase Vehicle shall extend from the Vehicle Lease
Commencement Date through the earliest of (i) the Turnback Date for such Group
IV Repurchase Vehicle, (ii) the date the Vehicle is sold to a third party
through any means other than an auction conducted by or through or arranged by
the Manufacturer pursuant to its Repurchase Program and the funds in respect of
such sale are received by the Trustee in the Group IV Collection Account (from
such third party or from any member of the Lessee Group on behalf of such third
party), (iii) if such Vehicle becomes a Casualty, the date funds in the amount
of the Net Book Value thereof are received by the Trustee in the Group IV
Collection Account from or on behalf of the applicable Lessee, (iv) the date
that such Vehicle is purchased by the applicable Lessee pursuant to paragraph 6
or 7 of Annex A or paragraph 8 of Annex B and the Vehicle Purchase Price in the
case of Vehicles purchased pursuant to Annex A, or the Net Book Value of the
applicable Vehicles in the case of Vehicles purchased pursuant to Annex B with
respect to such purchase (and any unpaid Monthly Base Rent, Monthly Variable
Rent, Monthly Finance Rent, and Monthly Supplemental Rent with respect to such
Vehicle) is received by the Trustee in the Group IV Collection Account and (v)
the maximum vehicle lease term of the Operating Lease and the Financing Lease,
as applicable, as specified in, respectively, paragraph 5 of each of Annex A and
Annex B to this Agreement (the earliest of such five dates being referred to as
the "Vehicle Lease Expiration Date" for such Group IV Type I Repurchase
Vehicle). The Lessor and each Lessee agree that each Lessee shall use its
commercially reasonable efforts to deliver each Group IV Type I Repurchase
Vehicle to the related Manufacturer or the designated auction site, as
applicable, under a Repurchase Program (unless a Manufacturer Event of Default
has occurred with respect to such Manufacturer) (a) not prior to the end of the
minimum holding period specified in the related Repurchase Program (prior to
which the Lessor may not deliver such Group IV Type I Repurchase Vehicle without
penalty (the "Type I Minimum Term")) and (b) not later than the end of the
maximum holding period (after which the Lessor may not return such Group IV Type
I Repurchase Vehicle which is a Lessor-Owned Vehicle without penalty (the "Type
I Maximum Term")); provided, however, that the Lessee may dispose of a Group IV
Type I Vehicle other than in accordance with the applicable Repurchase Program
only if the Disposition Proceeds will be greater than the amounts payable in
respect of such Vehicle under the Repurchase Program, and provided further, that
if for any reason, a Lessee fails to deliver a Group IV Type I Repurchase
Vehicle which is a Lessor-Owned Vehicle to the applicable Manufacturer or
designated auction site during the time period between the expiration of the
Type I Minimum Term and the expiration of the Type I Maximum Term, such Lessee
shall be obligated to (x) purchase such Group IV Type I Repurchase Vehicle from
the Lessor on the first Due Date after the expiration of the Type I Maximum Term
for an amount equal to the Vehicle Purchase Price with respect to such Group IV
Repurchase

                                       12
<PAGE>

Vehicle or (y) redesignate such Group IV Type I Repurchase Vehicle as a Group IV
Non-Repurchase Vehicle in accordance with Section 14 hereof. Each Lessee will
pay the equivalent of the Rent for the Type I Minimum Term for Group IV Type I
Repurchase Vehicles which are Lessor-Owned Vehicles and are returned before the
Type I Minimum Term, regardless of actual usage, unless a Vehicle is a Casualty
which will be treated in accordance with Section 6 hereof or unless the Lessor
immediately leases such Group IV Type I Repurchase Vehicle to another Lessee
under this Agreement or to a lessee under another Lease relating to another
Series under the Base Indenture.

         3.2      Vehicle Term: Group IV Type II Repurchase Vehicles. The
"Vehicle Lease Commencement Date" for each Group IV Type II Repurchase Vehicle
shall mean the day referenced as such in the Group IV Vehicle Acquisition
Schedule or Refinancing Schedule with respect to such Group IV Type II
Repurchase Vehicle but in no event beyond the date that funds are expended by
the Lessor to acquire such Group IV Type II Repurchase Vehicle. The "Vehicle
Term" with respect to each Group IV Type II Repurchase Vehicle shall extend from
the Vehicle Lease Commencement Date through the earliest of (i) the Turnback
Date for such Group IV Type II Repurchase Vehicle, (ii) the date the Vehicle is
sold to a third party through any means other than an auction conducted by or
through or arranged by the Manufacturer pursuant to its Repurchase Program and
the funds in respect to such sale are received by the Trustee in the Group IV
Collection Account (from such third party or from any member of the Lessee Group
on such third party), and such funds equal or exceed the Type II Repurchase
Vehicle Value of such Group IV Type II Repurchase Vehicle, (iii) if the Group IV
Type II Repurchase Vehicle becomes a Casualty, the date funds in the amount of
the Type II Repurchase Vehicle Value thereof are received by the Trustee in the
Group IV Collection Account from or on behalf of the applicable Lessee, (iv) the
date that the Group IV Type II Repurchase Vehicle is purchased by the applicable
Lessee pursuant to paragraph 6 or 7 of Annex A or paragraph 8 of Annex B and the
Vehicle Purchase Price, in the case of Vehicles purchased pursuant to Annex A,
or Net Book Value of the applicable Vehicle, in the case of Vehicles purchased
pursuant to Annex B, with respect to such purchase (and any unpaid Monthly Base
Rent, Monthly Variable Rent, Monthly Finance Rent and Monthly Supplemental Rent
with respect to such Group IV Type II Repurchase Vehicle) is received by the
Trustee and (v) the maximum vehicle lease term of the Operating Lease and the
Financing Lease, as applicable, as specified in, respectively, paragraph 5 of
each of Annex A and Annex B to this Agreement (the earliest of such five dates
being referred to as the "Vehicle Lease Expiration Date") for such Group IV Type
II Repurchase Vehicle. The Lessor and each Lessee agree that each Lessee shall
use its commercially reasonable efforts to deliver each Group IV Type II
Repurchase Vehicle to the related Manufacturer or the designated auction site,
as applicable, under a Repurchase Program (unless a Manufacturer Event of
Default has occurred with respect to such Manufacturer) (a) not prior to the end
of the minimum holding period specified in the related Repurchase Program (prior
to which the Lessor may not deliver such Group IV Type II Repurchase Vehicle
without penalty (the "Type II Minimum Term")) and (b) not later than the end of
the maximum holding period (after which the Lessor may not return such Group IV
Type II Repurchase Vehicle which is a Lessor-Owned Vehicle without penalty (the
"Type II Maximum Term")); provided, however, that the Lessee may dispose of a
Group IV Type II Vehicle other than in accordance with the applicable

                                       13
<PAGE>

Repurchase Program only if the Disposition Proceeds will be greater than the
amounts payable in respect of such Vehicle under the Repurchase Program, and
provided further, that if for any reason, a Lessee fails to deliver a Group IV
Type II Repurchase Vehicle which is a Lessor-Owned Vehicle to the applicable
Manufacturer or designated auction site during the time period between the
expiration of the Type II Minimum Term and the expiration of the Type II Maximum
Term, such Lessee shall be obligated to (x) purchase such Group IV Repurchase
Vehicle from the Lessor on the first Due Date after the expiration of the Type
II Maximum Term for an amount equal to the Vehicle Purchase Price with respect
to such Group IV Type II Repurchase Vehicle, (y) dispose of such Group IV Type
II Repurchase Vehicle promptly and in a commercially reasonable manner so as to
maximize proceeds from the disposition of such Vehicle or (z) redesignate such
Group IV Type II Repurchase Vehicle as a Group IV Non-Repurchase Vehicle in
accordance with Section 14 hereof; and in any event pay the Late Return Payment
specified in Section 12. Each Lessee will pay the equivalent of the Rent for the
Type II Minimum Term for Group IV Type II Repurchase Vehicles which are
Lessor-Owned Vehicles and are returned before the Type II Minimum Term,
regardless of actual usage, unless a Vehicle is a Casualty which will be treated
in accordance with Section 6 hereof or unless the Lessor immediately leases such
Group IV Type II Repurchase Vehicle to another Lessee under this Agreement or to
a lessee under another Lease relating to another Series under the Base
Indenture.

         3.3      Vehicle Term: Group IV Non-Repurchase Vehicles. The "Vehicle
Lease Commencement Date" for each Group IV Non-Repurchase Vehicle shall mean the
day referenced as such in the Group IV Vehicle Acquisition Schedule or
Refinancing Schedule with respect to such Group IV Non-Repurchase Vehicle but in
no event beyond the date that funds are expended by the Lessor to acquire such
Group IV Non-Repurchase Vehicle. The "Vehicle Term" with respect to each Group
IV Non-Repurchase Vehicle shall extend from the Vehicle Lease Commencement Date
through the earliest of (i) if the Group IV Non-Repurchase Vehicle is sold to a
third party, the date such Vehicle is sold to such third party and funds in
respect of such sale are received by the Trustee in the Group IV Collection
Account (from such third party or from any member of the Lessee Group on behalf
of such third party) and such funds equal or exceed the Non-Repurchase Vehicle
Value of such Group IV Non-Repurchase Vehicle, (ii) if the Group IV
Non-Repurchase Vehicle becomes a Casualty, the date funds in the amount of the
Non-Repurchase Vehicle Value thereof are received by the Trustee in the Group IV
Collection Account from or on behalf of the applicable Lessee, (iii) the date
that the Group IV Non-Repurchase Vehicle is purchased by the applicable Lessee
pursuant to paragraph 6 or 7 of Annex A or paragraph 8 of Annex B and the
Vehicle Purchase Price, in the case of Vehicles purchased pursuant to Annex A,
or Net Book Value of the applicable Vehicle, in the case of Vehicles purchased
pursuant to Annex B, with respect to such purchase (and any unpaid Monthly Base
Rent, Monthly Variable Rent, Monthly Finance Rent and Monthly Supplemental Rent
with respect to such Group IV Non-Repurchase Vehicle) is received by the Trustee
and (iv) the maximum vehicle lease term of the Operating Lease and the Financing
Lease, as applicable, as specified in, respectively, paragraph 5 of each of
Annex A and Annex B to this Agreement (the earliest of such four dates being
referred to as the "Vehicle Lease Expiration Date"); provided, however, that the
Lessees shall use commercially reasonable efforts to dispose of each Group IV
Non-Repurchase Vehicle

                                       14
<PAGE>

(a) within twenty-four (24) months after the date of the original new dealer
invoice for such Vehicle or, where no such invoice exists, the date such Vehicle
was first put into service, or (b) within such longer period with respect to
which Rating Agency Confirmation has been obtained or, if no Rating Agency is
then currently requested to rate any Group IV Series of Notes, approved by
Noteholders of the Group IV Series of Notes holding more than 50% of the
aggregate Invested Amounts of all outstanding Group IV Series (the "Majority
Group IV Noteholders") (such period described in clauses (a) and (b) above, the
"Non-Repurchase Maximum Term"). If a Group IV Vehicle's age is unknown as of its
Vehicle Lease Commencement Date, such age (in months) shall be the lesser of (i)
the number obtained by dividing the number of miles on the odometer of such
Group IV Vehicle at the Vehicle Lease Commencement Date by 1500 and (ii) the
number of months in the period commencing on September 1 of the calendar year
prior to the model year of such Group IV Vehicle through the Vehicle Lease
Commencement Date for such Group IV Vehicle.

         3.4      The "Lease Commencement Date" shall mean the earlier of (i)
the date of the issuance of the Series 2002-1 Notes as the first Group IV Series
of Notes issued in connection with this Second Amended and Restated Master Motor
Vehicle Lease Agreement - Group IV or (ii) the date of the Vehicle Lease
Commencement Date for the first Vehicle leased by a Lessee hereunder. The "Lease
Expiration Date" shall mean the later of (i) the date of the payment in full of
all Series of Notes included in the Group IV Series of Notes and all outstanding
Carrying Charges and (ii) the Vehicle Lease Expiration Date for the last Group
IV Vehicle leased by a Lessee hereunder. The "Term" of this Agreement shall mean
the period commencing on the Lease Commencement Date and ending on the Lease
Expiration Date.

         4.       RENT AND CHARGES. Each Lessee will pay Rent on a monthly basis
as set forth in this Section 4:

         4.1      Payment of Rent. On each Due Date, each Lessee shall pay to
the Lessor the aggregate of all Rent that has accrued during the Related Month
with respect to the Vehicles leased by such Lessee under this Agreement, as
provided in the related Lease Annexes.

         4.2      Payment of Monthly Supplemental Payments. On each Due Date,
each Lessee shall pay to the Lessor the Monthly Supplemental Payments that have
accrued during the Related Month with respect to the Financed Vehicles leased by
such Lessee under this Agreement, as provided in paragraphs 6 and 8 of Annex B
to this Agreement.

         4.3      Payment of Supplemental Rent. On each Due Date, each Lessee
shall pay to the Lessor such Lessee's pro rata share (on the basis of the
aggregate Net Book Value of Group IV Vehicles leased by such Lessee during the
Related Month) of the Monthly Supplemental Rent due on such Due Date. "Monthly
Supplemental Rent" with respect to each Due Date shall equal (x) the accrued
interest on all Outstanding Notes included in the Group IV Series of Notes for
the Related Month, plus (y) the Carrying Charges for the Related Month allocable
to any Group IV Series of Notes, minus (z) the aggregate of

                                       15
<PAGE>

all Monthly Variable Rent and Monthly Finance Rent accrued with respect to the
Related Month for all Group IV Vehicles leased hereunder.

         4.4      Payment of Termination Payments, Casualty Payments, and Late
Return Payments. On each Due Date, each Lessee shall pay to the Lessor all
Casualty Payments, Termination Payments and Late Return Payments that have
accrued with respect to the Group IV Vehicles leased by such Lessee under this
Agreement, as provided in, respectively, Sections 6.1, 11.3 and 12.

         4.5      Late Payment. In the event the relevant Lessee fails to remit
payment of any amount due on or before the Due Date, the amount not paid will be
considered delinquent and such Lessee will pay a late charge equal to the VFR
plus 1%, times the delinquent amount for the period from the Due Date until such
delinquent amount is received by the Trustee.

         4.6      Prepayments. To the extent provided in Paragraph 6(d) of
Annex B, a Lessee may prepay to the Lessor, in whole or in part, the Rent or
other payments accrued during the Related Month with respect to any Group IV
Vehicles leased by such Lessee under this Agreement.

         5.       INSURANCE. Budget represents that it shall at all times
maintain insurance coverage for each Lessee that is a Budget Subsidiary in
accordance with the applicable state law requirements and other requirements as
set forth below. Each Non-Budget Lessee represents that it shall at all times
maintain insurance coverage for itself in full force and effect in accordance
with the appropriate states' requirements and other requirements as set forth
below. Budget, each Lessee that is a Budget Subsidiary and each Non-Budget
Lessee agree that the Lessor shall be entitled to the benefits of any such
insurance at all times during the term of this Lease.

         5.1      Personal Injury and Damage. Subject to applicable state and
other requirements, Budget and each Non-Budget Lessee may self-insure against
personal injury and damage claims arising from the use of the Vehicles as well
as damage to Group IV Vehicles.

         5.2      Delivery of Certificate of Insurance. Within 10 days after (i)
the Closing Date with respect to each Series of Notes included in the Group IV
Series of Notes or (ii) with respect to any additional party becoming a "Lessee"
hereunder pursuant to the provisions of Section 23 hereof, within 10 days after
such party becomes a "Lessee," hereunder), Budget, on behalf of the Lessees that
are Budget Subsidiaries, and each Non-Budget Lessee shall deliver to the Lessor
a certificate of insurance naming the Lessor and the Trustee as additional
insured as to the items referenced by Section 5.1 hereinabove or a written
statement to the effect that such Lessee is self insuring. Such insurance shall
not be changed or canceled except as provided below in Section 5.3.

         5.3      Changes in Insurance Coverage. No changes shall be made in any
of the foregoing insurance unless the prior written consent of the Lessor and
the Trustee are first obtained. The Lessor may grant or withhold its consent to
any proposed change in such

                                       16
<PAGE>

insurance in its sole discretion. The Trustee shall be required to grant its
consent to any proposed change in such insurance upon compliance with the
following conditions:

                  (i)      The Guarantor or the applicable Non-Budget Lessee
         shall deliver not less than 30 days prior written notice of any
         proposed change in such insurance to the Trustee and each Rating
         Agency, which notice shall contain a certification of a reputable
         insurance broker that is not affiliated with any member of the Lessee
         Group that the insurance program maintained by Budget, on behalf of the
         Lessees that are Budget Subsidiaries, and by each Non-Budget Lessee
         (after the taking effect of such proposed change) comports with
         industry standards for Persons engaged in the business of renting
         similar vehicles and having net worth and operating income similar to
         that of such member of the Lessee Group; and

                  (ii)     So long as a Rating Agency is then currently
         requested to rate any Group IV Series of Notes or any class thereof,
         the Guarantor shall furnish to the Trustee a letter from each Rating
         Agency with respect to the outstanding Notes in the Group IV Series of
         Notes to the effect that such proposed change in insurance will not
         cause a reduction in or a withdrawal of such rating.

         6.       CASUALTY OBLIGATION.

         6.1      Casualty. If a Group IV Vehicle becomes a Casualty, then the
Lessee that is leasing such Group IV Vehicle will (i) promptly notify the Lessor
thereof and (ii) in the case of a Lessor-Owned Vehicle, promptly, but in no
event later than the first Due Date after the end of the Related Month in which
such Group IV Vehicle becomes a Casualty (other than a Casualty in respect of
which a Late Return Payment is payable under Section 12), pay to the Lessor the
Net Book Value of each such Group IV Vehicle (such payment, a "Casualty
Payment"). Upon payment by the Lessee to the Lessor of the Casualty Payment for
any Group IV Vehicle that has become a Casualty (i) the Lessor shall cause title
to such Group IV Vehicle to be transferred to the relevant Lessee to facilitate
liquidation of such Group IV Vehicle by the Lessee, (ii) such Lessee shall be
entitled to any physical damage insurance proceeds applicable to such Group IV
Vehicle, and (iii) the Lien of the Trustee on such Group IV Vehicle shall be
released by the Servicer.

         7.       VEHICLE USE. So long as no Lease Event of Default or Limited
Liquidation Event of Default with respect to any Group IV Series of Notes has
occurred and so long as no Lessee Partial Wind-Down Event has occurred with
respect to the relevant Lessee (subject, however, to Paragraph 7 of Annex A),
such Lessee may use Group IV Vehicles leased hereunder in the regular course of
business of such Lessee. Such use shall be confined primarily to the states of
the United States, with limited use in Canada and Mexico; provided, however,
that the principal place of business or rental office of such Lessee with
respect to the Group IV Vehicles is located in the United States. The relevant
Lessee shall promptly and duly execute, deliver, file and record all such
documents, statements, filings and registrations, and take such further actions
as the Lessor, the Servicer or the Trustee shall from time to time reasonably
request in order to

                                       17
<PAGE>

establish, perfect and maintain the Lessor's title to and interest in the Group
IV Vehicles and the related Certificates of Title as against such Lessee or any
third party in any applicable jurisdiction and to establish, perfect and
maintain the Trustee's Lien on the Group IV Vehicles and the related
Certificates of Title as a perfected first Lien in any applicable jurisdiction.
Each Lessee may, at the relevant Lessee's sole expense, change the place of
principal location of any Group IV Vehicles. Notwithstanding the foregoing, no
change of location shall be undertaken unless and until (i) all actions
necessary to maintain the Lien of the Trustee on such Group IV Vehicles and the
related Certificates of Title shall have been taken and (ii) all legal
requirements applicable to such Group IV Vehicles shall have been met or
obtained. Following a Lease Event of Default, Lessee Partial Wind-Down Event,
Limited Liquidation Event of Default with respect to any Group IV Series of
Notes or, with respect to the Group IV Repurchase Vehicles, a Manufacturer Event
of Default, and upon the Lessor's request, the relevant Lessee shall advise the
Lessor in writing where all Group IV Vehicles leased by such Lessee as of such
date are principally located. The Lessee shall not knowingly use any Group IV
Vehicles, or knowingly permit the same to be used, for any unlawful purpose.
Each Lessee shall use reasonable precautions to prevent loss or damage to Group
IV Vehicles. Each Lessee shall comply with all applicable statutes, decrees,
ordinances and regulations regarding acquiring, titling, registering, leasing,
insuring and disposing of Group IV Vehicles and shall take reasonable steps to
ensure that drivers of such Group IV Vehicles are duly licensed to drive in
accordance with applicable law. Each Lessee and the Lessor agree that each
Lessee shall perform, at its own expense, such Vehicle preparation and
conditioning services with respect to Group IV Vehicles purchased by the Lessor
from the Manufacturers as are customary. The Lessor, the Trustee or any
authorized representative of the Lessor or the Trustee may during reasonable
business hours from time to time, without disruption of each Lessee's business,
subject to applicable law, inspect Group IV Vehicles and registration
certificates, Certificates of Title and related documents covering Group IV
Vehicles wherever the same shall be located. Group IV Vehicles leased hereunder
may be subleased by the applicable Lessee to any other Lessee listed on Schedule
1 to this Agreement or added as a Lessee pursuant to Section 23 of this
Agreement; provided, however, that neither the original Lessee nor the Guarantor
shall be released from any of its obligations in respect of any Group IV Vehicle
so subleased.

         8.       REGISTRATION; LICENSE; TRAFFIC SUMMONSES; PENALTIES AND FINES.
The Lessee Group, at its expense, shall be responsible for proper registration
and licensing of Group IV Vehicles, and titling of Group IV Vehicles in the name
of the Lessor, in each case with the Lien of the Trustee noted thereon, and,
where required, shall have Group IV Vehicles inspected by any appropriate
Governmental Authority; provided, however, that notwithstanding the foregoing,
all Certificates of Title shall at all times remain in the custody of the
Servicer in accordance with the provisions of the Base Indenture. The Lessee
leasing such Group IV Vehicle shall be responsible for the payment of all
registration fees, title fees, license fees, traffic summonses, penalties,
judgments and fines incurred with respect to any Group IV Vehicle during the
Vehicle Term for such Group IV Vehicle or imposed during the Vehicle Term for
such Group IV Vehicle by any Governmental Authority or any court of law or
equity with respect to Group IV Vehicles in connection with the relevant
Lessee's operation of Group IV Vehicles, and the Lessor, in its discretion, may,
but shall not be obligated to, pay any

                                       18
<PAGE>

such amounts on the Lessee's behalf if the Lessee's failure to pay the same
interferes with the free transferability or saleability of such Group IV Vehicle
or impairs the ability to transfer clear title to such Group IV Vehicle; and any
such amounts paid by the Lessor will be reimbursed within 30 days of the Lessor
notifying such Lessee of such payment. The Lessor agrees to execute a power of
attorney in the form of Attachment B hereto (each, a "Power of Attorney"), and
such other documents as may be necessary in order to allow the Lessees to title,
register and dispose of the Lessor-Owned Vehicles and the Texas Vehicles and
Hawaii Vehicles; provided, however, that possession of all Certificates of Title
shall at all times remain with the applicable Servicer in accordance with the
provisions of the Indenture and each Lessee acknowledges and agrees that, with
respect to the Lessor-Owned Vehicles, it has no right, title or interest in or
with respect to any Certificate of Title. Notwithstanding anything herein to the
contrary, the Lessor may terminate such Power of Attorney as provided in Section
19 hereof.

         9.       MAINTENANCE AND REPAIRS. Each Lessee shall pay for all
maintenance and repairs to keep Group IV Vehicles in good working order and
condition, and will maintain Group IV Vehicles as required in order to keep the
Manufacturer's warranty in force, and in the case of Group IV Repurchase
Vehicles, shall comply with all requirements of the related Repurchase Program
to the extent necessary to maintain the eligibility of such Group IV Vehicles.
Each Lessee will return Group IV Vehicles to an authorized Manufacturer facility
or the relevant Lessee's Manufacturer authorized warranty station for warranty
work. Each Lessee will comply with any Manufacturer's recall of any Group IV
Vehicle. Each Lessee will pay, or cause to be paid, all usual and routine
expenses incurred in the use and operation of Group IV Vehicles including, but
not limited to, fuel, lubricants, and coolants. Any such expenses not paid by,
or on behalf of, the relevant Lessee may, after 30 days notice to such Lessee,
be paid by the Lessor and any expenses incurred by the Lessor on such Lessee's
behalf for maintenance, repair, operation or use of Group IV Vehicles by such
Lessee will be promptly reimbursed (in any event no later than the next monthly
Due Date following such notice) by such Lessee to the Lessor in the amount paid
by the Lessor. No Lessee shall make any material alterations to any Group IV
Vehicles without the prior consent of the Lessor. Any improvements or additions
to any Lessor-Owned Vehicle shall become and remain the property of the Lessor,
except that any addition to such a Group IV Vehicle made by the relevant Lessee
shall remain the property of such Lessee if it can be disconnected from the
Group IV Vehicle without impairing the functioning or resale value thereof,
other than any function or value provided by such addition or improvement.

         10.      VEHICLE WARRANTIES. If a Group IV Vehicle is covered by a
Manufacturer's warranty, each Lessee, during the Vehicle Term, shall have the
right to make any claims under such warranty which the Lessor could make and to
receive related proceeds directly. As provided in Section 2.4, the Lessor makes
no warranty or representation whatsoever, express or implied, with respect to
any Group IV Vehicle.

         11.      VEHICLE RETURN GUIDELINES.

         11.1     Vehicle Turn-in-Condition. As used herein "vehicle turn-in
condition" with respect to each Group IV Repurchase Vehicle will be determined
in accordance with

                                       19
<PAGE>

the related Repurchase Program. Group IV Repurchase Vehicles not meeting the
applicable Repurchase Program's vehicle turn-in condition guidelines will,
unless redesignated as Group IV Non-Repurchase Vehicles in accordance with
Section 14 hereof, be purchased by the relevant Lessee in accordance with the
Casualty procedure set forth in Section 6.1.

         11.2     Return. Each Lessee will return each Group IV Repurchase
Vehicle (other than a Group IV Type II Repurchase Vehicle disposed of in the
manner described in the third succeeding sentence hereto or a Casualty and other
than Group IV Repurchase Vehicles from Manufacturers with respect to which a
Manufacturer Event of Default has occurred and is continuing) to the nearest
related Manufacturer official auction or other facility designated by such
Manufacturer at the relevant Lessee's sole expense prior to the expiration of
the Type I Maximum Term or Type II Maximum Term, as applicable, for such Group
IV Vehicle. Each Lessee agrees that the Group IV Repurchase Vehicles will be in
vehicle turn-in condition as specified in the applicable Repurchase Program. Any
rebates or credits applicable to the unexpired term of any license plates for a
Group IV Repurchase Vehicle shall inure to the benefit of the relevant Lessee.
Each Lessee agrees to use commercially reasonable efforts to dispose of each
Group IV Non-Repurchase Vehicle, each Group IV Type II Repurchase Vehicle not
returned to a Manufacturer and each Group IV Repurchase Vehicle from a
Manufacturer with respect to which a Manufacturer Event of Default has occurred
and is continuing (a) in a manner most likely to maximize proceeds from such
disposition and consistent with industry practice and (b) prior to the
expiration of the Non-Repurchase Maximum Term for such Group IV Non-Repurchase
Vehicle, the Type I Maximum Term for such Group IV Type I Repurchase Vehicle or
the Type II Maximum Term for such Group IV Type II Repurchase Vehicle, as
applicable. The Lessee shall not return Group IV Repurchase Vehicles to any
Manufacturer with respect to which a Manufacturer Event of Default has occurred
and is continuing.

         11.3     Termination Payments. Upon receipt of (i) payment of the
Repurchase Price or Guaranteed Payment with respect to each Group IV Repurchase
Vehicle from the Manufacturer (or the receipt of payment of the Repurchase Price
of each Group IV Repurchase Vehicle through an auction conducted by or through a
Manufacturer), the Lessor will charge the relevant Lessee for any Excess Damage
Charges, Excess Mileage Charges or early turnback surcharges as determined by
the Manufacturer or its agent in accordance with the applicable Repurchase
Program or (ii) the net proceeds from the sale of any Group IV Repurchase
Vehicle, the Lessor will charge the relevant Lessee for any damage charges or
mileage charges as determined by the Lessor in its reasonable judgment (any such
charges in (i) or (ii) are referred to as a "Termination Payment"). The
provisions of this Section 11.3 will survive the expiration or earlier
termination of the Term.

         11.4     Repurchase Price Interest. The applicable Lessee shall pay to
the Lessor, as part of the Monthly Base Rent, interest accrued at a rate equal
to the VFR on the Repurchase Price of each Group IV Repurchase Vehicle for the
period between the Turnback Date for such Group IV Vehicle and receipt of such
Repurchase Price by the

                                       20
<PAGE>

Lessor from the Manufacturer ("Repurchase Price Interest"). The provisions of
this Section 11.4 will survive the expiration or earlier termination of the
Term.

         12.      DISPOSITION PROCEDURE. Each Lessee will comply with the
requirements of law and, with respect to Group IV Repurchase Vehicles, the
requirements of the Repurchase Programs in connection with, among other things,
the delivery of Certificates of Title and documents of transfer signed as
necessary in connection with the sale of any Group IV Vehicle to a third party
or the return of any Group IV Repurchase Vehicle in accordance with an Eligible
Repurchase Program. In addition, with respect to the return of a Group IV
Repurchase Vehicle to a Manufacturer or the delivery of a Group IV Repurchase
Vehicle to an authorized auction site, the Lessee thereof shall also deliver a
signed Condition Report and signed odometer statement to be submitted with such
Group IV Repurchase Vehicle and accepted by the Manufacturer or its agent at the
time of Group IV Repurchase Vehicle return or delivery, as applicable. If a
Group IV Repurchase Vehicle (other than a Vehicle that becomes a Casualty prior
to the end of the applicable Vehicle Term) is not returned to the Manufacturer
and accepted by the Manufacturer, or delivered to (and accepted by) an
authorized auction site, prior to the expiration of the Type I Maximum Term or
Type II Maximum Term, as applicable, with respect to such Group IV Repurchase
Vehicle, the relevant Lessee shall, unless such Group IV Repurchase Vehicle has
been redesignated as a Group IV Non-Repurchase Vehicle in accordance with
Section 14 hereof or, in the case of a Group IV Type II Repurchase Vehicle,
otherwise sold in accordance with Section 3.2 hereof, purchase such Group IV
Repurchase Vehicle for the appropriate Vehicle Purchase Price (or Net Book Value
in the case of a Vehicle leased under Annex B) and pay the Lessor such amount
(such amount, the "Late Return Payment") within fifteen (15) days after the end
of the Type I Maximum Term or Type II Maximum Term, as applicable, (together
with any Repurchase Price Interest accrued from the last day of the Type I
Maximum Term or Type II Maximum Term, as applicable, to the date that such
payment is received by the Lessor).

         13.      ODOMETER DISCLOSURE REQUIREMENT. Each Lessee agrees to comply
with all requirements of law and, with respect to Group IV Repurchase Vehicles,
all Repurchase Program requirements in connection with the transfer of ownership
of any Group IV Vehicle by the Lessor, including, without limitation, the
submission of any required odometer disclosure statement at the time of any such
transfer of ownership.

         14.      REDESIGNATION OF VEHICLES

         (a)      Upon a Group IV Repurchase Vehicle's becoming ineligible for
repurchase by its Manufacturer or for sale in accordance with applicable
Repurchase Program procedures, due to physical damage, repair charges or accrued
mileage, in each case in excess of that permitted under the related Repurchase
Program, or due to any failure or inability to return such Group IV Vehicle to
the Manufacturer or the designated auction site prior to the expiration of the
Maximum Term, or due to any other event or circumstance, the Servicer may
designate such Vehicle as a Group IV Non-Repurchase Vehicle if such Group IV
Vehicle, as a Group IV Non-Repurchase Vehicle, will be an Eligible
Non-Repurchase Vehicle and an Eligible Vehicle and if either (a) such

                                       21
<PAGE>

designation meets the applicable conditions of Section 2.5 hereof or (b) the
Noteholders holding the requisite Invested Amount of each applicable Series of
Notes included in the Group IV Series of Notes waive, in each case as and to the
extent permitted under the related Series Supplement, the requirements of
Section 2.5 as applied to this Section 14 and all such other conditions,
requirements or restrictions with respect to which a failure or violation has
occurred; provided, in each case, that (x) any additional Monthly Base Rent due
with respect to each such Group IV Vehicle, relating to the decrease, if any, of
the Net Book Value of such Group IV Vehicle under the newly applicable
Depreciation Schedule, shall be paid by the applicable Lessee on the next
succeeding Due Date, and (y) the minimum level of Enhancement required under the
applicable Series Supplement, after giving effect to such designation, shall be
satisfied on the date of designation.

         (b)      The Servicer may designate a Group IV Non-Repurchase Vehicle
as a Group IV Repurchase Vehicle if such Group IV Vehicle, as a Group IV
Repurchase Vehicle, will be an Eligible Repurchase Vehicle and if either (a)
such designation meets the applicable conditions of Section 2.5 hereof or (b)
the Noteholders holding the requisite Invested Amount of each applicable Series
of Notes included in the Group IV Series of Notes waive, in each case as and to
the extent permitted under the related Series Supplement, the requirements of
Section 2.5 as applied to this Section 14 and all such other conditions,
requirements or restrictions with respect to which a failure or violation has
occurred; provided, however, that (i) the Capitalized Cost, Net Book Value and
Depreciation Charges with respect to such Vehicle shall be recalculated as of
the date of such redesignation as if such Group IV Vehicle were a Group IV
Repurchase Vehicle at the time of the initial related Vehicle Lease Commencement
Date, and (ii) the related Manufacturer has acknowledged such designation. Upon
any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor
shall advance to the applicable Manufacturer the difference (if any) between the
original Capitalized Cost of such Vehicle and the Capitalized Cost of such
Vehicle upon redesignation, to the extent that such amount is then due and
payable to the Manufacturer, which amount shall be deemed to be part of the
Capitalized Cost of such Vehicle and (y) the applicable Lessee shall be entitled
to a credit against the Monthly Base Rent due on the next succeeding Due Date in
an amount equal to the excess (if any) of the Net Book Value of such Vehicle
upon such redesignation over the Net Book Value of such Vehicle immediately
prior to such redesignation.

         15.      GENERAL INDEMNITY.

         15.1     Indemnity by the Lessees. Each member of the Lessee Group
agrees jointly and severally to indemnify and hold harmless the Lessor and the
Lessor's directors, officers, agents and employees (collectively, the
"Indemnified Persons"), against any and all claims, demands and liabilities of
whatsoever nature and all costs and expenses relating to or in any way arising
out of:

                  15.1.1   the ordering, delivery, acquisition, title on
         acquisition, rejection, installation, possession, titling, retitling,
         registration, re-registration, custody by the Lessee Group of title and
         registration documents, use, nonuse, misuse, operation, deficiency,
         defect, transportation, repair, control or disposition of any

                                       22
<PAGE>

         Group IV Vehicle leased hereunder or to be leased hereunder pursuant to
         a request by the relevant Lessee. The foregoing shall include, without
         limitation, any liability (or any alleged liability) of the Lessor to
         any third party arising out of any of the foregoing, including, without
         limitation, all legal fees, costs and disbursements arising out of such
         liability (or alleged liability);

                  15.1.2   all (i) federal, state, county, municipal, foreign or
         other fees and taxes of whatsoever nature, including but not limited to
         license, qualification, registration, franchise, sales, use, gross
         receipts, ad valorem, business, property (real or personal), excise,
         motor vehicle, and occupation fees and taxes, and all federal, state
         and local income taxes (including any taxes which are payable by the
         Lessor as a result of it being a member of the consolidated Lessee
         Group), and penalties and interest thereon, whether assessed, levied
         against or payable by the Lessor or otherwise, with respect to any
         Group IV Vehicle or the acquisition, purchase, sale, rental, use,
         operation, control, ownership or disposition of any Group IV Vehicle or
         measured in any way by the value thereof or by the business of,
         investment in, or ownership by the Lessor with respect thereto and (ii)
         documentary, stamp, filing, recording, mortgage or other taxes, if any,
         which may be payable by the Lessor in connection with this Agreement or
         the other Related Documents;

                  15.1.3   any violation by the relevant member of the Lessee
         Group of this Agreement or of any Related Documents to which such
         member of the Lessee Group is a party or by which it is bound or any
         laws, rules, regulations, orders, writs, injunctions, decrees,
         consents, approvals, exemptions, authorizations or licenses of any
         governmental or public body or authority and all other requirements
         having the force of law applicable at any time to any Group IV Vehicle
         or any action or transaction by such member of the Lessee Group with
         respect thereto or pursuant to this Agreement;

                  15.1.4   all-out-of-pocket costs of the Lessor (including the
         fees and out-of-pocket expenses of counsel for the Lessor) in
         connection with the execution, delivery and performance of this
         Agreement and the other Related Documents, including, without
         limitation, overhead expenses and any and all fees of the Trustee, all
         fees payable in connection with any Enhancement for the benefit of the
         Holders of Notes included in the Group IV Series of Notes, any and all
         fees of the Servicer under the Indenture (to the extent attributable to
         any Group IV Series of Notes), fees, if any, payable to the Rating
         Agencies in connection with their rating of any Group IV Series of
         Notes or any class thereof and any underwriting or placement agency
         fees, if any, incurred in connection with the sale of any Group IV
         Series of Notes or any class thereof;

                  15.1.5   all out-of-pocket costs and expenses (including
         reasonable attorneys, fees and legal expenses) incurred by the Lessor,
         the Trustee or the Holders of Notes included in the Group IV Series of
         Notes in connection with the administration, enforcement, waiver or
         amendment of this Agreement and any

                                       23
<PAGE>

         other Related Documents and all indemnification obligations of the
         Lessor under the Related Documents; and

                  15.1.6   all costs, fees, expenses, damages and liabilities
         (including, without limitation, the fees and out-of-pocket expenses of
         counsel) in connection with, or arising out of, any claim made by any
         third party against the Lessor for any reason (including, without
         limitation, with respect to Group IV Repurchase Vehicles in connection
         with any audit or investigation conducted by a Manufacturer under its
         Repurchase Program).

         15.2     Reimbursement Obligation by the Lessee Group. Each member of
the Lessee Group shall forthwith upon demand reimburse the Lessor for any sum or
sums expended with respect to any of the foregoing, or shall pay such amounts
directly upon request from the Lessor; provided, however, that, if so requested
by the relevant member of the Lessee Group, the Lessor shall submit to such
member of the Lessee Group a statement documenting any such demand for
reimbursement or prepayment. To the extent that the relevant member of the
Lessee Group in fact indemnifies the Lessor under the indemnity provisions of
this Agreement, such member of the Lessee Group shall be subrogated to the
Lessor's rights in the affected transaction and shall have a right to determine
the settlement of claims therein. The foregoing indemnity as contained in this
Section 15 shall survive the expiration or earlier termination of this Agreement
or any lease of any Group IV Vehicle hereunder.

         15.3     Defense of Claims. Defense of any claim referred to in this
Section 15 for which indemnity may be required shall, at the option and request
of the Indemnified Person, be conducted by the relevant member of the Lessee
Group. The relevant member of the Lessee Group will inform the Indemnified
Person of any such claim and of the defense thereof and will provide copies of
material documents relating to any such claim or defense to such Indemnified
Person upon request. Such Indemnified Person may participate in any such defense
at its own expense provided such participation does not interfere with the
relevant member of the Lessee Group's assertion of such claim or defense. The
relevant member of the Lessee Group agrees that no Indemnified Person will be
liable to such member of the Lessee Group for any claim caused directly or
indirectly by the inadequacy of any Group IV Vehicle for any purpose or any
deficiency or defect therein or the use or maintenance thereof or any repairs,
servicing or adjustments thereto or any delay in providing or failure to provide
such or any interruption or loss of service or use thereof or any loss of
business, all of which shall be the risk and responsibility of such member of
the Lessee Group. The rights and indemnities of each Indemnified Person
hereunder are expressly made for the benefit of, and will be enforceable by,
each Indemnified Person notwithstanding the fact that such Indemnified Person is
either no longer a party to (or entitled to receive the benefits of) this
Agreement, or was not a party to (or entitled to receive the benefits of) this
Agreement at its outset. Except as otherwise set forth herein, nothing herein
shall be deemed to require the relevant member of the Lessee Group to indemnify
the Lessor for any of the Lessor's acts or omissions which constitute gross
negligence or willful misconduct. This general indemnity shall not affect any
claims of the type discussed

                                       24
<PAGE>

above which the relevant member of the Lessee Group may have against the
Manufacturer.

         16.      ASSIGNMENT.

         16.1     Right of the Lessor to Assign this Agreement. The Lessor shall
have the right to finance the acquisition and ownership of Group IV Vehicles by
selling or assigning its right, title and interest in moneys due from each
Lessee and any third party under this Agreement; provided, however, that any
such sale or assignment shall be subject to the rights and interest of the
relevant Lessee in such Vehicles, including but not limited to such Lessee's
right of quiet and peaceful possession of the Lessor-Owned Vehicles as set forth
in Section 12 of Annex A to this Agreement, and under this Agreement.

         16.2     Limitations on the Right of the Lessee to Assign this
Agreement. No Lessee shall, except as provided in the Indenture, without prior
written consent of the Lessor and the Trustee at the written direction of the
Required Beneficiaries, assign this Agreement or any of its rights hereunder to
any other party; provided, however, the relevant Lessee may rent vehicles under
the terms of such Lessee's normal daily rental programs. Any purported
assignment in violation of this Section 16.2 shall be void and of no force or
effect. Nothing contained herein shall be deemed to restrict the right of any
Lessee to acquire or dispose of, by purchase, lease, financing, or otherwise,
motor vehicles that are not subject to the provisions of this Agreement.

         17.      DEFAULT AND REMEDIES THEREFOR.

         17.1     Lease Events of Default. Any one or more of the following will
constitute an event of default (a "Lease Event of Default") as that term is used
herein:

                  17.1.1   Payment Default. There occurs (i) a default in the
         payment of any Monthly Base Rent and the continuance thereof for a
         period of two Business Days, (ii) a default in the payment of any
         Monthly Variable Rent, Monthly Finance Rent, Monthly Supplemental Rent
         or Monthly Supplemental Payment, and the continuance thereof for five
         Business Days or (iii) a default and continuance thereof for five
         Business Days after notice thereof by the Lessor or the Trustee to the
         Lessee Group, of the payment of any amount payable under this Agreement
         (other than amounts described in clause (i) or (ii) above);

                  17.1.2   Unauthorized Assignment. Any assignment or transfer
         of this Agreement by any member of the Lessee Group occurs unless
         consented to by the Lessor and the Trustee at the written direction of
         the Required Beneficiaries;

                  17.1.3   Breach of Contract. Subject to the provisions of
         Section 19 hereof regarding Lessee Partial Wind-Down Events, the
         failure of the Lessee Group to observe or perform any other material
         covenant, condition, agreement or provision hereof (other than one
         described in Section 17.1.1 or 17.1.2), including, but not limited to,
         usage and maintenance, and such default continues for more than thirty
         (30) days after the earlier to occur of (a) the date a Responsible
         Officer

                                       25
<PAGE>

         of the Lessee obtains knowledge of such default or (b) the date written
         notice thereof is delivered by the Lessor or the Trustee to such
         Lessee; provided, however, that if such failure cannot reasonably be
         cured within such thirty (30) day period, no Lease Event of Default
         shall result therefrom so long as, within such thirty (30) day period,
         such Lessee (i) commences to cure same, (ii) delivers written notice to
         the Lessor and the Trustee notifying the Lessor and the Trustee of such
         default and setting forth the steps such Lessee intends to take in
         order to cure such default and (iii) thereafter diligently prosecutes
         such cure to completion and completely cures such default on or before
         the fiftieth (50th) day after the earlier of the dates set forth in
         clause (a) and clause (b) above;

                  17.1.4   Breach of Representation or Warranty. Subject to the
         provisions of Section 19 hereof regarding Lessee Partial Wind-Down
         Events, if any representation or warranty made by the Lessee Group
         herein proves untrue in any material respect as of the date of the
         issuance or making thereof and is not cured within 30 days after notice
         thereof from the Lessor or the Trustee to the Lessee Group;

                  17.1.5   Bankruptcy Related Events. Subject to the provisions
         of Section 19 hereof regarding Lessee Partial Wind-Down Events, (i) the
         entry of an order in the current case in Bankruptcy Court with respect
         to the Guarantor or any Group IV Lessee converting such case from a
         Chapter 11 case to a Chapter 7 case or Budget or any affiliate thereof
         shall file any pleading requesting any such relief; (ii) the
         appointment, in such case, of a responsible officer, chapter 11
         trustee, or an examiner with powers beyond the duty to investigate and
         report, as set forth in section 1106(a)(3) and (4) of the Bankruptcy
         Code or (iii) the filing by the Guarantor or any affiliate thereof of a
         motion for the Bankruptcy Court to enter an order, or the entry of an
         order with the Bankruptcy Court, in either case without the express
         prior written consent of the Group IV Noteholders, to revoke, reverse,
         stay, modify, supplement or amend the order of the Bankruptcy Court
         authorizing the entry into this Lease by the Guarantor and each Group
         IV Lessee and two (2) Business Days elapse without the withdrawal,
         dismissal or stay of such motion or order, as the case may be;

                  17.1.6   Invalidity of Group IV Related Documents. All or any
         material portion of this Lease shall at any time and for any reason not
         be in full force and effect or be declared to be null and void, or a
         proceeding shall be commenced by a Group IV Lessee or the Guarantor, or
         by any governmental authority having jurisdiction over the Group IV
         Lessee or the Guarantor, as applicable, seeking to establish the
         invalidity or unenforceability thereof (exclusive of questions of
         interpretation of any provision thereof);

                  17.1.7   Required Credit Support Amount. The credit support
         amount for any Group IV Series of Notes shall be less than the Minimum
         Credit Support Amount for such Series and such condition shall continue
         to exist for more than two Business Days;

                                       26
<PAGE>

                  17.1.8   Credit Agreement Event. So long as the Series 2002-1
         Note is outstanding, a Series 2002-1 Event of Default has occurred and
         is continuing.

                  17.1.9   The Bankruptcy Order. The Related Documents and the
         Bankruptcy Order shall, for any reason, cease to create a valid Lien on
         any of the Group IV Collateral purported to be covered thereby or such
         Lien shall cease to be a perfected, first priority Lien pursuant to
         section 364 of the Bankruptcy Code against the Group IV Collateral of
         any of the Group IV Lessees (or an application or motion shall be filed
         by any of Budget or the Group IV Lessees for the approval of an order
         of the Bankruptcy Court which would result in such Lien ceasing to be a
         perfected, first priority Lien pursuant to section 364 of the
         Bankruptcy Code against the Group IV Collateral of any of the Group IV
         Lessees), or the Bankruptcy Court Order as it relates to any material
         provision of any Related Document purported to be covered thereby
         shall, for any reason, cease to be valid and binding on each of Budget
         and the Group IV Lessees party thereto or any of Budget or any of the
         Group IV Lessees shall so state in writing; provided that, if either
         (x) the Lien on the Group IV Collateral referred to above shall cease
         to be a perfected, first priority Lien pursuant to section 364 of the
         Bankruptcy Code against the Group IV Collateral of any of the Group IV
         Lessees or (y) the Bankruptcy Order is no longer valid or binding on
         any of Budget or the Group IV Lessees, as a result of an order of the
         Bankruptcy Court entered subsequent to the Bankruptcy Court Order, two
         (2) Business Days elapse without the withdrawal, dismissal or stay of
         such subsequent order.

                  17.1.10  Lift Stay Motion or Order. A motion is filed, or
         consented to in writing, by Budget or either Group IV Lessee with the
         Bankruptcy Court for entry of an order, or the entry by the Bankruptcy
         Court of an order, in either case without the express written consent
         of the Agent or the Series 2002-1 Note Purchaser, granting relief from
         the automatic stay under Section 362 of the Bankruptcy Code that (i)
         permits a pre-petition secured party to foreclose on assets of Budget
         or any Group IV Lessee which have a value in excess of $35 million in
         the aggregate or (ii) permits the Trustee to enforce its rights and
         remedies in respect of a failure to make Rent payments due under a
         Lease and, in either case, two (2) Business Days elapse without the
         withdrawal, dismissal or stay of such motion or order, as the case may
         be; provided, however, that any motion for an order, or any order,
         granting Liens or other relief from the automatic stay under Section
         362 of the Bankruptcy Code entered into on or prior to the date hereof
         in connection with Budget's or the Group IV Lessees'
         debtor-in-possession financing shall not constitute an Event of Default
         hereunder.

         17.2     Effect of Lease Event of Default. If (i) a Lease Event of
Default described in Section 17.1.1, 17.1.2, 17.1.5, 17.1.6 (to the extent that
all or a material portion of this Lease shall at any time and for any reason not
be in full force and effect or be declared null and void), 17.1.7 or 17.1.8
shall occur, then the Monthly Base Rent, Casualty Payments, the Monthly
Supplemental Payments (calculated as if all Financed Vehicles had become a
Casualty for the Related Month), the Monthly Variable Rent and Monthly Finance
Rent (calculated as if the full amount of interest, principal and other charges

                                       27
<PAGE>

under all Outstanding Group IV Series of Notes were then due and payable in
full), the Monthly Supplemental Rent (calculated as if the full amount of
interest, principal and other charges under all Outstanding Group IV Series of
Notes were then due and payable in full) and, with respect to Group IV
Non-Repurchase Vehicles and Group IV Type II Repurchase Vehicles, the Additional
Base Rent, if any, shall, automatically, without further action by the Lessor or
the Trustee, become immediately due and payable or (ii) any other Lease Event of
Default or any Limited Liquidation Event of Default, in each case, with respect
to any outstanding Group IV Series of Notes shall occur, the Lessor or the
Trustee (provided a Responsible Officer of the Trustee has actual knowledge or
has received written notice of such Lease Event of Default or any Limited
Liquidation Event of Default) may declare the Rent (calculated as described in
clause (i) above) to be due and payable, whereupon such Rent (as so calculated)
shall, subject to Section 17.5, become immediately due and payable.

         17.3     Rights of Lessor Upon Lease Event of Default or Limited
Liquidation Event of Default. If a Lease Event of Default or Limited Liquidation
Event of Default (in each case, with respect to any outstanding Group IV Series
of Notes) shall occur, then, the Lessor at its option may:

                  (i)      Proceed by appropriate court action or actions,
         either at law or in equity, to enforce performance by the Lessee Group
         (or such member(s) thereof against which the Lessor determines to
         exercise its remedies hereunder) of the applicable covenants and terms
         of this Agreement or to recover damages for the breach hereof
         calculated in accordance with Section 17.5; or

                  (ii)     By notice in writing to the Lessee Group (or such
         member(s) thereof against which the Lessor determines to exercise its
         remedies hereunder), terminate this Agreement in its entirety (or in
         respect only of the applicable member(s) thereof) and/or the right of
         possession hereunder of the Lessee Group (or the applicable member(s)
         thereof) as to the Group IV Vehicles, and the Lessor may direct
         delivery by the Lessee Group (or the applicable member(s) thereof) of
         documents of title to the Group IV Vehicles, whereupon all rights and
         interests of the Lessee Group (or the applicable member(s) thereof) to
         the Group IV Vehicles will cease and terminate (but the Lessee Group
         (or the applicable member(s) thereof) will remain liable hereunder as
         herein provided; provided, however, the Lessee Group's liability will
         be calculated in accordance with Section 17.5); and thereupon, the
         Lessor or its agents may peaceably enter upon the premises of the
         applicable Lessee(s) or other premises where the Group IV Vehicles may
         be located and take possession of them and thenceforth hold, possess
         and enjoy the same free from any right of the Lessee Group (or the
         applicable member(s) thereof), or their successors or assigns, to use
         the Group IV Vehicles for any purpose whatsoever, and the Lessor will,
         nevertheless, have a right to recover from the Lessee Group (or the
         applicable member(s) thereof) any and all amounts which under the terms
         of Section 17.2 (as limited by Section 17.5) of this Agreement may be
         then due. The Lessor will provide the Lessee Group (or the applicable
         member(s) thereof) with written notice of the place and time of the
         sale of such Group IV Vehicles at least five days prior to the proposed
         sale, which

                                       28
<PAGE>

         shall be deemed commercially reasonable, and any Lessee may purchase
         the Group IV Vehicle(s) at the sale. Each and every power and remedy
         hereby specifically given to the Lessor will be in addition to every
         other power and remedy hereby specifically given or now or hereafter
         existing at law, in equity or in bankruptcy and each and every power
         and remedy may be exercised from time to time and simultaneously and as
         often and in such order as may be deemed expedient by the Lessor;
         provided, however, that the measure of damages recoverable against the
         Lessees will in any case be calculated in accordance with Section 17.5.
         All such powers and remedies will be cumulative, and the exercise of
         one will not be deemed a waiver of the right to exercise any other or
         others. No delay or omission of the Lessor in the exercise of any such
         power or remedy and no renewal or extension of any payments due
         hereunder will impair any such power or remedy or will be construed to
         be a waiver of any default or any acquiescence therein. Any extension
         of time for payment hereunder or other indulgence duly granted to the
         Lessee Group (or the applicable member(s) thereof) will not otherwise
         alter or affect the Lessor's rights or the obligations hereunder of the
         Lessee Group (or the applicable member(s) thereof). The Lessor's
         acceptance of any payment after it will have become due hereunder will
         not be deemed to alter or affect the Lessor's rights hereunder with
         respect to any subsequent payments or defaults herein; or

                  (iii)    By notice in writing to the Lessee Group (or such
         member(s) thereof against which the Lessor determines to exercise its
         remedies hereunder), terminate the Power of Attorney.

         17.4     Rights of Trustee Upon Limited Liquidation Event of Default
and Non-Performance of Certain Covenants.

                  (i)      If a Limited Liquidation Event of Default or a
         Manufacturer Event of Default (in each case, with respect to any
         outstanding Group IV Series of Notes), shall have occurred and be
         continuing, the Lessor and the Trustee, to the extent provided in the
         Indenture, shall have the rights against the Guarantor, each Lessee,
         each Manufacturer in connection with any Manufacturer Event of Default
         and the Group IV Collateral provided in the Indenture (including,
         without limitation, in connection with a Manufacturer Event of Default,
         the rights granted under Section 9.3 of the Base Indenture) upon a
         Limited Liquidation Event of Default with respect to any outstanding
         Group IV Series of Notes, including the right to take possession of all
         Group IV Vehicles immediately from the Lessees.

                  (ii)     With respect to Group IV Repurchase Vehicles, if the
         Guarantor or any Lessee shall default in the due performance and
         observance of any of its obligations under Section 29.3, 29.4,
         29.5(iv), 29.8, 30.3 or 30.4 hereof, and such default shall continue
         unremedied for a period of 30 days after notice thereof shall have been
         given to the Guarantor by the Lessor, the Lessor or the Trustee, as
         assignee of the Lessor's rights hereunder, shall have the ability to
         exercise all rights, remedies, powers, privileges and claims of the
         Guarantor or any Lessee against the Manufacturers under or in
         connection with the Repurchase Programs

                                       29
<PAGE>

         with respect to (i) Group IV Repurchase Vehicles that the Guarantor or
         any Lessee has determined to turn back to the Manufacturers under such
         Repurchase Programs and (ii) whether or not the Guarantor or any Lessee
         shall then have determined to turn back such Group IV Repurchase
         Vehicles, any such Group IV Repurchase Vehicles for which the
         applicable Repurchase Period will end within one week or less.

                  (iii)    Upon a default in the performance (after giving
         effect to any grace periods provided herein) by the Guarantor or any
         Lessee of its obligations hereunder to keep the Group IV Vehicles free
         of Liens (other than Permitted Liens and the Lien in favor of the
         Trustee) and to maintain the Trustee's Lien perfected on the Group IV
         Collateral, the Trustee shall have the right to take actions reasonably
         necessary to correct such default with respect to the subject Group IV
         Vehicles including the execution of UCC financing statements with
         respect to Repurchase Programs and other general intangibles, and the
         completion of Vehicle Perfection and Documentation Requirements on
         behalf of the Guarantor or the Lessee, as applicable.

                  (iv)     Upon the occurrence of a Limited Liquidation Event of
         Default with respect to any outstanding Group IV Series of Notes, the
         Guarantor and each Lessee will return any Group IV Repurchase Vehicles
         to the related Manufacturer in accordance with the instructions of the
         Lessor.

                  (v)      Upon the occurrence of a Limited Liquidation Event of
         Default with respect to any outstanding Group IV Series of Notes, the
         Lessor shall have the right to dispose of (x) those Group IV Repurchase
         Vehicles not accepted by the related Manufacturer under the applicable
         Repurchase Program pursuant to clause (iv) above and (y) all Group IV
         Non-Repurchase Vehicles and to direct the Guarantor or the applicable
         Lessee to dispose of such Group IV Vehicles in accordance with its
         instructions. In addition, the Lessor shall have all of the rights,
         remedies, powers, privileges and claims vis-a-vis the Guarantor or any
         Lessee, necessary or desirable to allow the Trustee to exercise the
         rights, remedies, powers, privileges and claims given to the Trustee
         pursuant to Section 9.2 and, Section 9.3 (in each case, with respect to
         any Group IV Collateral) of the Base Indenture and the Guarantor and
         each Lessee acknowledges that it has hereby granted to the Lessor all
         of the rights, remedies, powers, privileges and claims granted to the
         Trustee pursuant to Article 9 of the Base Indenture (with respect to
         any Group IV Collateral) and that, under certain circumstances set
         forth in the Base Indenture, the Trustee may act in lieu of the Lessor
         in the exercise of such rights, remedies, powers, privileges and
         claims.

         17.5     Measure of Damages. If a Lease Event of Default or Limited
Liquidation Event of Default (in each case, with respect to any outstanding
Group IV Series of Notes) occurs and the Lessor or the Trustee exercises the
remedies granted to the Lessor or the Trustee under this Article 17, the amount
that the Lessor shall be permitted to recover shall be equal to:

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<PAGE>

                  (i)      all Rent under this Agreement (calculated as provided
         in Section 17.2); plus

                  (ii)     any damages and expenses, including reasonable
         attorneys' fees and expenses (and including net after-tax losses of
         federal and state income tax benefits to which the Lessor would
         otherwise be entitled under this Agreement), which the Lessor or the
         Trustee will have sustained by reason of the Lease Event of Default or
         Limited Liquidation Event of Default, together with reasonable sums for
         such attorneys' fees and such expenses as will be expended or incurred
         in the seizure, storage, rental or sale of the Vehicles or in the
         enforcement of any right or privilege hereunder or in any consultation
         or action in such connection; plus

                  (iii)    all other amounts due and payable under this
         Agreement; plus

                  (iv)     interest on amounts due and unpaid under this
         Agreement at the VFR plus 1% from time to time computed from the date
         of the Lease Event of Default or Limited Liquidation Event of Default
         or the date payments were originally due the Lessor under this
         Agreement or from the date of each expenditure by the Lessor which is
         recoverable from the Lessees pursuant to this Section 17, as
         applicable, to and including the date payments are made by the Lessees;
         minus

                  (v)      an amount equal to all sums realized by the Lessor or
         the Trustee from the liquidation of the Group IV Vehicles leased
         hereunder (either by receipt of payment from the Manufacturers under
         Repurchase Programs, from sales of Group IV Vehicles to third parties,
         or otherwise); provided, however, if an Eligible Repurchase Vehicle is
         turned back to the Manufacturer under the applicable Repurchase Program
         and accepted for repurchase by such Manufacturer (as evidenced by a
         Condition Report indicating that such Group IV Repurchase Vehicle
         conforms to the requirements for repurchase under such Repurchase
         Program) the Lessor and the Trustee shall be deemed to have received on
         account of this clause (v) an amount equal to the Net Book Value of
         such Group IV Repurchase Vehicle (less (a) any Termination Payments and
         (b) Repurchase Price Interest (calculated assuming that payment of the
         Repurchase Price will be received on the 60th day after the Turnback
         Date)) payable in respect of such Group IV Repurchase Vehicle).

         17.6     Application of Proceeds. The proceeds of any sale or other
disposition pursuant to Section 17.3 or 17.4 shall be applied in the following
order: (i) to the reasonable costs and expenses incurred by the Lessor in
connection with such sale or disposition, including any reasonable costs
associated with repairing any Group IV Vehicles, and reasonable attorneys' fees
in connection with the enforcement of this Agreement, (ii) to the payment of
outstanding Rent (such payments to be applied first to outstanding Monthly
Variable Rent and Monthly Finance Rent, then to outstanding Monthly Supplemental
Rent, then to outstanding Monthly Base Rent, and then, with respect to proceeds
related to any Group IV Type II Repurchase Vehicles or Group IV

                                       31
<PAGE>

Non-Repurchase Vehicles, to outstanding Additional Base Rent), (iii) to the
payment of all other amounts due hereunder, and (iv) any remaining amounts to
the Lessor, or such Person(s) as may be lawfully entitled thereto.

         18.      MANUFACTURER EVENTS OF DEFAULT. Upon the occurrence of any of
the following events (each, a "Manufacturer Event of Default") with respect to
any Manufacturer (subject to the provisions of Section 20 hereof regarding
Eligibility Waiver Events), the relevant Lessee on behalf of the Lessor (a)
shall no longer place Group IV Vehicle Orders from such Manufacturer (each, a
"Defaulting Manufacturer") for (x) any additional Group IV Vehicles in the event
of any Manufacturer Event of Default arising under Section 18.1 or 18.3, (y) any
additional Group IV Repurchase Vehicles in the event of any Manufacturer Event
of Default arising under Section 18.2, 18.4(i) or 18.5 and (z) any additional
Group IV Non-Repurchase Vehicles in the event of any Manufacturer Event of
Default arising under Section 18.4(ii) and (b) shall cancel any Group IV Vehicle
Order with such Defaulting Manufacturer to which a VIN has not been assigned as
of the date such Manufacturer Event of Default occurs:

         18.1     The failure of such Manufacturer to pay any amount when due
pursuant to the related Repurchase Program with respect to a Repurchase Vehicle
(whether Group IV Repurchase Vehicles or otherwise) turned in to such
Manufacturer or delivered to an authorized auction site pursuant to the related
Repurchase Program; provided, however, that (a) in the case of an Eligible Type
I Repurchase Manufacturer, such failure continues for more than sixty (60) days
following the Turnback Date such that the aggregate of any such amounts not paid
for more than 60 days are in the aggregate in excess of $40,000,000 in respect
of Group IV Vehicles and (b) in the case of an Eligible IV Type II Repurchase
Manufacturer, such failure continues for more than forty-five (45) days
following the Turnback Date such that the aggregate of any such amounts not paid
for more than 45 days are in the aggregate in excess of $10,000,000 in respect
of Group IV Vehicles or such higher amount determined by the Rating Agencies (or
the Required Noteholders of any Group IV Series of Notes that is not rated),
and, in all cases, net of amounts that are the subject of a good faith dispute
as evidenced in writing by either a member of the Lessee Group or the
Manufacturer questioning the accuracy of the amounts paid or payable in respect
of certain Repurchase Vehicles tendered for repurchase, or delivered to an
authorized auction site, under a Repurchase Program.

         18.2     The termination of such Manufacturer's Repurchase Program
(subject to the provisions of Section 20 hereof regarding Eligibility Waiver
Events).

         18.3     The occurrence of an Event of Bankruptcy with respect to such
Manufacturer.

         18.4     Such Manufacturer is no longer (i) an Eligible Type I
Repurchase Manufacturer or Eligible Type II Repurchase Manufacturer in the case
of Group IV Repurchase Vehicles, or (ii) Eligible Non-Repurchase Manufacturer,
in the case of Group IV Non-Repurchase Vehicles.

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<PAGE>

         18.5     The Repurchase Program of such Manufacturer shall no longer be
an Eligible Repurchase Program (subject, in each case, to the provisions of
Section 20 hereof regarding Eligibility Waiver Events).

         19.      LESSEE PARTIAL WIND-DOWN EVENTS. Upon the occurrence of any of
the events described in Sections 17.1.3, 17.1.4, or 17.1.5 with respect to any
member (such member, the "Defaulting Lessee") of the Lessee Group other than the
Guarantor (a "Lessee Partial Wind-Down Event"), then such Defaulting Lessee
shall (a) no longer place Group IV Vehicle Orders for additional Group IV
Vehicles and (b) shall cancel Group IV Vehicle Orders for Vehicles; provided,
however, that if a Group IV Vehicle Order has been placed for a Lessor-Owned
Vehicle and the related Manufacturer has assigned a VIN as of the date such
Lessee Partial Wind-Down Event occurs, then such Group IV Vehicle Order will not
be canceled. In the case of a Lessee Partial Wind-Down Event, the Lessor may (i)
exercise any right or remedy in respect only of such Defaulting Lessee provided
for pursuant to the provisions of Section 17.3 or 17.4 hereof and (ii) terminate
the Power of Attorney with respect to such Defaulting Lessee.

         20.      ELIGIBILITY WAIVER EVENTS. In the event that a Manufacturer
Event of Default occurs by reason of an event stated in Section 18.2 or 18.5 (a
"Manufacturer Wind-Down Event"), then if (i) the Series Supplement for any Group
IV Series of Notes outstanding under the Indenture provides for the right of all
or less than all of the Noteholders to waive such Manufacturer Wind-Down Event
and (ii) the Required Noteholders in respect of each Group IV Series of Notes
waives such Manufacturer Wind-Down Event, the Lessees may continue to place
Vehicle Orders for the purchase of Group IV Repurchase Vehicles or Group IV
Non-Repurchase Vehicles from such Defaulting Manufacturer through this
Agreement; provided, however, the total Net Book Value of all Group IV
Repurchase Vehicles leased hereunder through any Defaulting Manufacturer shall
not exceed the Maximum Manufacturer Percentage, if any, for the Defaulting
Manufacturer of the Net Book Value of all Group IV Repurchase Vehicles leased
under this Agreement; and, provided, further, that in the event a Lessee seeks
any such waiver of a Manufacturer Wind-Down Event such Lessee shall in
connection therewith propose a Maximum Defaulting Manufacturer Percentage for
such Defaulting Manufacturer and the resulting Maximum Manufacturer Percentage,
if any, for the Defaulting Manufacturer shall equal that percentage of the
proposed Maximum Defaulting Manufacturer Percentage which corresponds to the
percentage of Group IV Noteholders which consent to such waiver. Any such waiver
by any such Required Noteholders shall be referred to as an "Eligibility Waiver
Event."

         21.      CERTIFICATION OF TRADE OR BUSINESS USE. Each Lessee hereby
warrants and certifies, under penalties of perjury, that (1) such Lessee intends
to use the Lessor-Owned Vehicles leased by such Lessee hereunder in a trade or
business of such Lessee, and (2) such Lessee has been advised that it will not
be treated as the owner of such Lessor-Owned Vehicles for federal income tax
purposes.

         22.      SURVIVAL. In the event that, during the term of this
Agreement, any member of the Lessee Group becomes liable for the payment or
reimbursement of any obligations, claims or taxes pursuant to any provision
hereof, such liability will continue,

                                       33
<PAGE>

notwithstanding the expiration or termination of this Agreement, until all such
amounts are paid or reimbursed by such Lessee.

         23.      ADDITIONAL LESSEES. Any Affiliate of or direct or indirect
Subsidiary of the Guarantor (each, a "Guarantor Subsidiary") shall, with the
consent of the Guarantor, have the right to become a "Lessee" under and pursuant
to the terms of this Agreement by complying with the provisions of this Section
23. In the event a Guarantor Subsidiary desires to become a "Lessee" under this
Agreement, then the Guarantor and such party shall execute and deliver to the
Lessor and the Trustee:

                  (i)      a Joinder in Lease Agreement in the form attached
         hereto as Attachment C (each, a "Joinder in Lease");

                  (ii)     the certificate of incorporation for such party, duly
         certified by the Secretary of State of the jurisdiction of such party's
         incorporation, together with a copy of the by-laws of such party, duly
         certified by a Secretary or Assistant Secretary of such party;

                  (iii)    copies of resolutions of the Board of Directors of
         such party authorizing or ratifying the execution, delivery and
         performance, respectively, of those documents and matters required of
         it with respect to this Agreement, duly certified by the Secretary or
         Assistant Secretary of such party;

                  (iv)     a certificate of the Secretary or Assistant Secretary
         of such party certifying the names of the individual or individuals
         authorized to sign the Joinder in Lease and the other Related Documents
         to be executed by it, together with samples of the true signatures of
         each such individual;

                  (v)      a good standing certificate for such party in the
         jurisdiction of its incorporation and the jurisdiction of its principal
         place of business;

                  (vi)     a written search report from a Person satisfactory to
         the Lessor and the Trustee listing all effective financing statements
         that name such party as debtor or assignor, and that are filed in the
         jurisdictions in which filings were made pursuant to clause (vii)
         below, together with copies of such financing statements, and tax and
         judgment Lien search reports from a Person satisfactory to the Lessor
         and the Trustee showing no evidence of Liens filed against such party
         that purport to affect any Group IV Vehicles leased hereunder or any
         Collateral under the Indenture;

                  (vii)    evidence of the filing of proper financing statements
         on Form UCC-1 naming such party, as debtor, the Lessor as assignor and
         the Trustee as secured party covering the collateral described in
         Section 2(b) hereof;

                  (viii)   an Officers' Certificate and an opinion of counsel
         each stating that such joinder by such party complies with this Section
         23 and that all conditions precedent herein provided for relating to
         such transaction have been complied with or waived in accordance
         herewith;

                                       34
<PAGE>

                  (ix)     Rating Agency Confirmation under and as defined in
         the related Series Supplement with respect to such party becoming a
         "Lessee" under this Agreement shall have been obtained with respect to
         each Group IV Series of Notes; and

                  (x)      any additional documentation that the Lessor or the
         Trustee may require to evidence the assumption by such party of the
         obligations and liabilities set forth in this Agreement.

Upon satisfaction of the foregoing conditions and receipt by such Guarantor
Subsidiary of the applicable Joinder in Lease executed by the Lessor, such
Guarantor Subsidiary shall for all purposes be deemed to be a "Lessee" for
purposes of this Agreement (including, without limitation, the Guaranty) and
shall be entitled to the benefits and subject to the liabilities and obligations
of a Lessee hereunder.

         24.      GUARANTY.

         24.1     Guaranty. In order to induce the Lessor to execute and deliver
this Agreement and to lease Group IV Vehicles to the Lessees, and in
consideration thereof, the Guarantor hereby (i) unconditionally and irrevocably
guarantees to the Lessor the obligations of the Lessees (including, without
limitation, any additional Lessees pursuant to Section 23) to make any payments
required to be made by them under this Agreement, (ii) agrees to cause the
Lessees to duly and punctually perform and observe all of the terms, conditions,
covenants, agreements and indemnities of the Lessees under this Agreement, and
(iii) agrees that, if for any reason whatsoever, any Lessee fails to so perform
and observe such terms, conditions, covenants, agreements and indemnities, the
Guarantor will duly and punctually perform and observe the same (the obligations
referred to in clauses (i) through (iii) above are collectively referred to as
the "Guaranteed Obligations"). The liabilities and obligations of the Guarantor
under the guaranty contained in this Section 24 (this "Guaranty") will be
absolute and unconditional under all circumstances. This Guaranty shall be a
guaranty of payment and not of collection, and the Guarantor hereby agrees that
it shall not be required that the Lessor or the Trustee assert or enforce any
rights against any of the Lessees or any other person before or as a condition
to the obligations of the Guarantor pursuant to this Guaranty.

         24.2     Scope of Guarantor's Liability. The Guarantor's obligations
hereunder are independent of the obligations of the Lessees, any other guarantor
or any other Person, and the Lessor may enforce any of its rights hereunder
independently of any other right or remedy that the Lessor may at any time hold
with respect to this Agreement or any security or other guaranty therefor.
Without limiting the generality of the foregoing, the Lessor may bring a
separate action against the Guarantor without first proceeding against any of
the Lessees, any other guarantor or any other Person, or any security held by
the Lessor, and regardless of whether the Lessees or any other guarantor or any
other Person is joined in any such action. The Guarantor's liability hereunder
shall at all times remain effective with respect to the full amount due from the
Lessees hereunder. The Lessor's rights hereunder shall not be exhausted by any
action taken by the Lessor until all Guaranteed Obligations have been fully paid
and performed. The liability of the

                                       35
<PAGE>

Guarantor hereunder shall be reinstated and revived, and the rights of the
Lessor shall continue, with respect to any amount at any time paid on account of
the Guaranteed Obligations which shall thereafter be required to be restored or
returned by the Lessor upon the bankruptcy, insolvency or reorganization of any
of the Lessees, any other guarantor or any other Person, or otherwise, all as
though such amount had not been paid.

         24.3     Lessor's Right to Amend this Agreement, Etc. The Guarantor
authorizes the Lessor, at any time and from time to time without notice and
without affecting the liability of the Guarantor hereunder, to: (a) alter the
terms of all or any part of the Guaranteed Obligations and any security and
guaranties therefor including without limitation modification of times for
payment and rates of interest; (b) accept new or additional instruments,
documents, agreements, security or guaranties in connection with all or any part
of the Guaranteed Obligations; (c) accept partial payments on the Guaranteed
Obligations; (d) waive, release, reconvey, terminate, abandon, subordinate,
exchange, substitute, transfer, compound, compromise, liquidate and enforce all
or any part of the Guaranteed Obligations and any security or guaranties
therefor, and apply any such security and direct the order or manner of sale
thereof (and bid and purchase at any such sale), as the Lessor in its discretion
may determine; (e) release any Lessee, any guarantor or any other Person from
any personal liability with respect to all or any part of the Guaranteed
Obligations; and (f) assign its rights under this Guaranty in whole or in part.

         24.4     Waiver of Certain Rights by Guarantor. The Guarantor hereby
waives each of the following to the fullest extent allowed by law:

                  (a)      any defense based upon:

                           (i)      the unenforceability or invalidity of any
                  security or other guaranty for the Guaranteed Obligations or
                  the lack of perfection or failure of priority of any security
                  for the Guaranteed Obligations;

                           (ii)     any act or omission of the Lessor or any
                  other Person that directly or indirectly results in the
                  discharge or release of any of the Lessees or any other Person
                  or any of the Guaranteed Obligations or any security therefor;
                  provided that the Guarantor's liability in respect of this
                  Guaranty shall be released to the extent the Lessor
                  voluntarily releases such Lessee or other Person from any
                  obligations with respect to any of the foregoing; or

                           (iii)    any disability or any other defense of any
                  Lessee or any other Person with respect to the Guaranteed
                  Obligations, whether consensual or arising by operation of law
                  or any bankruptcy, insolvency or debtor-relief proceeding, or
                  from any other cause;

                  (b)      any right (whether now or hereafter existing) to
         require the Lessor, as a condition to the enforcement of this Guaranty,
         to:

                           (i)      accelerate the Guaranteed Obligations;

                                       36
<PAGE>

                           (ii)     give notice to the Guarantor of the terms,
                  time and place of any public or private sale of any security
                  for the Guaranteed Obligations; or

                           (iii)    proceed against any Lessee, any other
                  guarantor or any other Person, or proceed against or exhaust
                  any security for the Guaranteed Obligations;

                  (c)      all rights of subrogation, all rights to enforce any
         remedy that the Lessor now or hereafter has against any Lessee or any
         other Person, and any benefit of, and right to participate in, any
         security now or hereafter held by the Lessor with respect to the
         Guaranteed Obligations;

                  (d)      presentment, demand, protest and notice of any kind,
         including without limitation notices of default and notice of
         acceptance of this Guaranty;

                  (e)      all suretyship defenses and rights of every nature
         otherwise available under New York law and the laws of any other
         jurisdiction; and

                  (f)      all other rights and defenses the assertion or
         exercise of which would in any way diminish the liability of the
         Guarantor hereunder.

         24.5     Lessees' Obligations to Guarantor and Guarantor's Obligations
to Lessees Subordinated. Until all of the Guaranteed Obligations have been paid
in full, the Guarantor agrees that all existing and future debts, obligations
and liabilities of the Lessees to the Guarantor or the Guarantor to any of the
Lessees (hereinafter collectively referred to as "Subordinated Debt") shall be
and hereby are expressly subordinated to the prior payment in full of the
Guaranteed Obligations, and the payment of any Subordinated Debt is expressly
deferred in right of payment to the prior payment in full of the Guaranteed
Obligations. For purposes of this Section 24.5, to the extent the Guaranteed
Obligations consist of the obligation to pay money, the Guaranteed Obligations
shall not be deemed paid in full unless and until paid in full in cash.

         (a)      Upon any distribution of assets of the Guarantor or any Lessee
upon any dissolution, winding up, liquidation or reorganization of such Lessee,
whether in bankruptcy, insolvency, reorganization or receivership proceedings,
or upon an assignment for the benefit of creditors or any other marshaling of
the assets and liabilities of the Guarantor or such Lessee, or otherwise:

                           (i)      first, the holders of the Guaranteed
                  Obligations shall be entitled to receive payment in full of
                  the Guaranteed Obligations before the Guarantor or the Lessee,
                  as the case may be, is entitled to receive any payment on
                  account of the Subordinated Debt;

                           (ii)     any payment by, or distribution of assets
                  of, the Guarantor or such Lessee of any kind or character,
                  whether in cash, property or securities, to which such Lessee
                  or the Guarantor would be entitled except for this
                  subordination shall be paid or delivered by the Person making
                  such

                                       37
<PAGE>

                  payment or distribution, whether a trustee in bankruptcy, a
                  receiver or liquidating trustee, or otherwise, directly to the
                  Trustee, for the benefit of the holders of the Guaranteed
                  Obligations to be held as additional security for the
                  Guaranteed Obligations in an interest bearing account until
                  the Guaranteed Obligations have been paid in full; and

                           (iii)    if, notwithstanding the foregoing, any
                  payment by, or distribution of assets of, the Guarantor or
                  such Lessee of any kind or character, whether in cash,
                  property or securities, in respect of any Subordinated Debt
                  shall be received by such Lessee or the Guarantor before the
                  Guaranteed Obligations are paid in full, such payment or
                  distribution shall be held in trust in an interest bearing
                  account of the Guarantor or such Lessee, as appropriate, and
                  immediately paid over in kind to the holders of the Guaranteed
                  Obligations until the Guaranteed Obligations have been paid in
                  full in accordance with the priorities specified in clause (i)
                  above.

         (b)      The Guarantor authorizes and directs each Lessee and each
Lessee authorizes and directs the Guarantor to take such action as may be
necessary or appropriate to effectuate and maintain the subordination provided
herein.

         (c)      No right of any holder of the Guaranteed Obligations to
enforce the subordination herein shall at any time or in any way be prejudiced
or impaired by any act or failure to act on the part of the Guarantor, any
Lessee, the Lessor or any other Person or by any noncompliance by the Guarantor,
any Lessee, the Lessor or any other Person with the terms, provisions and
covenants hereof or of the Related Documents regardless of any knowledge thereof
that any such holder of the Guaranteed Obligations may have or be otherwise
charged with.

         (d)      Nothing express or implied herein shall give any Person other
than the Lessees, the Lessor, the Trustee and the Guarantor any benefit or any
legal or equitable right, remedy or claim hereunder.

         (e)      If the Guarantor shall institute or participate in any suit,
action or proceeding against any Lessee or any Lessee shall institute or
participate in any suit, action or proceeding against the Guarantor, in
violation of the terms hereof, such Lessee or the Guarantor, as the case may be,
may interpose as a defense or dilatory plea this subordination, and the holders
of the Guaranteed Obligations are irrevocably authorized to intervene and to
interpose such defense or plea in their name or in the name of such Lessee or
the Guarantor, as the case may be.

         24.6     Guarantor to Pay Lessor's Expenses. The Guarantor agrees to
pay to the Lessor, on demand, all costs and expenses, including attorneys' and
other professional and paraprofessional fees, incurred by the Lessor in
exercising any right, power or remedy conferred by this Guaranty, or in the
enforcement of this Guaranty, whether or not any action is filed in connection
therewith. Until paid to the Lessor, such amounts shall bear interest,
commencing with the Lessor's demand therefor, at the VFR plus 1%.

                                       38
<PAGE>

         24.7     Reinstatement. This Guaranty shall continue to be effective or
be reinstated, as the case may be, if at any time payment of any of the amounts
payable by any Lessee under this Agreement is rescinded or must otherwise be
restored or returned by the Lessor, upon an event of bankruptcy, dissolution,
liquidation or reorganization of any member of the Lessee Group or upon or as a
result of the appointment of a receiver, intervenor or conservator of, or
trustee or similar officer for, any member of the Lessee Group or any
substantial part of their respective property, or otherwise, all as though such
payment had not been made.

         24.8     Pari Passu Indebtedness. The Guarantor (i) represents and
warrants that, as of the date hereof, the obligations of the Guarantor under
this Guaranty will rank pari passu with any existing unsecured indebtedness of
the Guarantor and (ii) covenants and agrees that from and after the date hereof
the obligations of the Guarantor under this Guaranty will rank pari passu with
any unsecured indebtedness of the Guarantor incurred after the date hereof.

         25.      RIGHTS OF LESSOR ASSIGNED TO TRUSTEE. Notwithstanding anything
to the contrary contained in this Agreement, each member of the Lessee Group
acknowledges that the Lessor has assigned all of its rights under this Agreement
to the Trustee for the benefit of the Holders of Notes included in the Group IV
Series of Notes. Accordingly, each member of the Lessee Group agrees that:

                  (i)      Subject to the terms of the Indenture, the Trustee
         shall have all the rights, powers, privileges and remedies of the
         Lessor hereunder and the Guarantor's and the relevant Lessee's
         obligations hereunder shall not be subject to any claim or defense
         which the Guarantor or such Lessee may have against the Lessor (other
         than the defense of payment actually made). Specifically, each member
         of the Lessee Group agrees that, upon the occurrence of an Amortization
         Event with respect to any Group IV Series of Notes or, subject to the
         provisions of Section 19 hereof, a Lessee Partial Wind-Down Event or,
         with respect to Group IV Repurchase Vehicles, subject to the provisions
         of Section 20, a Manufacturer Event of Default, the Trustee may
         exercise (for and on behalf of the Lessor) any right or remedy against
         any member of the Lessee Group provided for herein and no member of the
         Lessee Group will interpose as a defense that such claim should have
         been asserted by the Lessor;

                  (ii)     Upon the delivery by the Trustee of any notice to any
         member of the Lessee Group stating that a Manufacturer Event of
         Default, an Amortization Event or Lessee Partial Wind-Down Event (in
         each case, with respect to any outstanding Group IV Series of Notes)
         with respect to such Lessee has occurred, then such member of the
         Lessee Group, will, if so requested by the Trustee, treat the Trustee
         or the Trustee's designee for all purposes as the Lessor hereunder and
         in all respects comply with all obligations under this Agreement that
         are asserted by the Trustee as the successor to the Lessor hereunder,
         irrespective of whether such member of the Lessee Group has received
         any such notice from the Lessor; provided, however, the Trustee shall
         in no event be liable to any Lessee for any

                                       39
<PAGE>

         action taken by it in its capacity as successor to the Lessor other
         than actions that constitute negligence or willful misconduct;

                  (iii)    Each member of the Lessee Group acknowledges that
         pursuant to the Indenture the Lessor has irrevocably authorized and
         directed such member of the Lessee Group to, and each such member of
         the Lessee Group shall, make payments of Rent hereunder (and any other
         payments hereunder) directly to the Trustee for deposit in the Group IV
         Collection Account established by the Trustee for receipt of such
         payments pursuant to the Indenture and such payments shall discharge
         the obligation of such member of the Lessee Group to the Lessor
         hereunder to the extent of such payments. Upon written notice to the
         relevant member of the Lessee Group of a sale or assignment by the
         Trustee of its right, title and interest in moneys due under this
         Agreement to a successor Trustee, such member of the Lessee Group shall
         thereafter make payments of all Rent (and any other payments hereunder)
         to the party specified in such notice; and

                  (iv)     Upon request made by the Trustee at any time, each
         member of the Lessee Group will take such actions as are requested by
         the Trustee to assist the Trustee in maintaining the Trustee's
         perfected security interest in the Group IV Vehicles leased under this
         Agreement, the Certificates of Title with respect thereto, the Group IV
         Collateral pursuant to the Indenture and the collateral granted to the
         Lessor pursuant to Section 2(b) (such grant of collateral to be
         effective as of the date of this Agreement, but only, with respect to
         the Operating Lease, in the event that this Agreement is
         recharacterized as described in such Section 2(b)).

         26.      RIGHT OF LESSEE TO DELEGATE RIGHTS AND OBLIGATIONS HEREUNDER
TO GUARANTOR. If and for so long as the Guarantor is acting as the Servicer
under the Indenture, any Lessee shall be permitted to delegate to the Guarantor
(acting in such capacity) its rights and obligations under this Agreement,
including, without limitation, its servicing rights and obligations under
Sections 8 and 9 hereof. No such delegation of rights or obligations shall,
however, operate in any manner to release any such delegating Lessee from any of
its obligations under this Agreement.

         27.      MODIFICATION AND SEVERABILITY. (a) The terms of this Agreement
will not be waived, altered, modified, amended, supplemented or terminated in
any manner whatsoever except by written instrument signed by the Lessor and each
Lessee and consented to in writing by the Trustee, each Enhancement Provider
with respect to any Group IV Series of Notes and, if the Series 2002-1 Notes are
still outstanding, each Series 2002-1 Noteholder. If any part of this Agreement
is not valid or enforceable according to law, all other parts will remain
enforceable. The Lessor shall provide prompt written notice to each Rating
Agency, and to any Noteholder for each Group IV Series of Notes in respect of
which no Rating Agency is then currently requested to provide ratings, of any
such waiver, modification or amendment. Notwithstanding the foregoing provisions
of this Section 27, the Lessor, the Lessees and the Guarantor may, at any time
and from time to time, without the consent of the Trustee, any Noteholders or
any Enhancement Provider, enter into any amendment, supplement or

                                       40
<PAGE>

other modification to this Agreement to cure any apparent ambiguity or to
correct or supplement any provision in this Agreement that may be inconsistent
with any other provision herein; provided, however, that (i) any such action
shall not have a materially adverse effect on the interests of any Enhancement
Provider for a Group IV Series of Notes based upon an Opinion of Counsel and an
Officers' Certificate of the Lessor and each Lessee addressed to the Trustee and
(ii) a copy of such amendment, supplement or other modification is furnished to
the Trustee, each Enhancement Provider with respect to any Group IV Series of
Notes in accordance with the notice provisions of the related Series Supplement
not later than ten days prior to the execution thereof by the Lessor, the
Lessees and the Guarantor.

         (b)      Notwithstanding anything to the contrary in the foregoing
clause (a) or in the Base Indenture, this Agreement may be amended without the
consent of the Noteholders of any Group IV Series of Notes to provide for the
leasing of vehicles under this Agreement of a type not provided for as of the
Lease Commencement Date; provided that (i) the Lessor shall have delivered to
the Trustee Rating Agency Confirmation for any outstanding Group IV Series of
Notes with respect to such amendments, (ii) no Amortization Event with respect
to any outstanding Group IV Series of Notes then exists or will result from such
amendment or from the leasing of such vehicles under this Agreement and (iii)
each Enhancement Provider with respect to any outstanding Group IV Series of
Notes shall have consented in writing to such amendments and to the leasing of
such vehicles under this Agreement. The Servicer shall deliver to the Trustee
and, so long as the Series 2002-1 Note is outstanding, the Agent an Officer's
Certificate stating that the conditions of this Section 27(b) have been
satisfied with respect to any amendment under this Section 27(b).

         28.      CERTAIN REPRESENTATIONS AND WARRANTIES. Each Lessee represents
and warrants to the Lessor and the Trustee as to itself, as to each other Lessee
and as to the Group IV Vehicles leased by it hereunder (except that any Person
becoming a Lessee hereunder pursuant to Section 23 hereof does not represent and
warrant as to any Lessee that is not an Affiliate thereof), and the Guarantor
represents and warrants to the Lessor and the Trustee as to itself and as to
each Lessee, that as of the date hereof (and, with respect to each Group IV
Series of Notes issued after the date hereof, the Closing Date with respect to
such Series of Notes and, with respect to each Person becoming a Lessee
hereunder pursuant to Section 23 hereof, as of the date of such joinder):

         28.1     Due Organization, Authorization, etc. The Guarantor and each
Lessee is a corporation duly organized and validly existing and in good standing
under the laws of the jurisdiction of its incorporation and is duly qualified
and in good standing in each jurisdiction where, because of the nature of its
activities or properties, the failure so to qualify would have a Material
Adverse Effect on such Lessee or the Guarantor, as applicable. The execution,
delivery and performance by the Guarantor and each Lessee of this Agreement and
the other Related Documents to be executed and delivered by it are within its
corporate powers, have been duly authorized by all necessary corporate action
(including, without limitation, shareholder approval, if required), other than
the entry of the Bankruptcy Order, have received all necessary governmental and
other

                                       41
<PAGE>

consents and approvals (if any shall be required), and do not and will not
contravene or conflict with, or create a default, breach, Lien or right of
termination or acceleration under, any Requirement of Law or Contractual
Obligation binding upon it, other than such default, breach, Lien or right of
termination or acceleration which does not have a Material Adverse Effect on the
Guarantor or such Lessee, as applicable. Upon entry of the Bankruptcy Order,
this Agreement and each other Related Document to be executed and delivered by
it are (or when executed and delivered will be) the legal, valid, and binding
obligations of the Guarantor or such Lessee, enforceable against the Guarantor
or such Lessee, as the case may be, in accordance with their respective terms,
subject to bankruptcy, insolvency and other laws affecting the enforcement of
creditors' rights. Each Lessee (other than the Non-Budget Lessees) is a direct
or indirect Subsidiary of the Guarantor.

         28.2     Financial Information; Financial Condition. All balance
sheets, all statements of operations, of stockholders' equity and of cash flow,
and other financial data (other than projections and the financial statements
referred to below) which have been or shall hereafter be furnished to the Lessor
or the Trustee for the purposes of or in connection with this Agreement or the
Related Documents have been and will be prepared in accordance with GAAP and do
and will present fairly the financial condition of the entities involved as of
the dates thereof and the results of their operations for the periods covered
thereby. Such financial data include the following financial statements and
reports which have been furnished to the Lessor and the Trustee on or prior to
such Closing Date, the audited consolidated balance sheets of Budget and each
Non-Budget Lessee as of December 31, 2001 (or, if later, as of December 31 of
the most recently ended calendar year), and the related statements of
operations, stockholders' deficit and cash flows for the fiscal year ending on
such date.

         28.3     Litigation. Except for claims which are fully covered by
insurance provided by a Person who is not an Affiliate of Budget and for which
adequate reserves have been set aside in accordance with GAAP, no claims,
litigation (including, without limitation, derivative actions), arbitration,
governmental investigation or proceeding or inquiry is pending or, to the best
of the Guarantor's or such Lessee's knowledge, threatened against the Guarantor
or any Lessee which would, if adversely determined, have a Material Adverse
Effect on the Guarantor or such Lessee, as applicable.

         28.4     Liens. The Group IV Vehicles leased under this Agreement are
free and clear of all Liens other than (i) Permitted Liens, (ii) Liens in favor
of the Trustee and (iii) subordinate Liens that may have been granted to
debtor-in-possession lenders pursuant to an order of the Bankruptcy Court
entered on or prior to the date of this Lease. The Trustee has obtained, and
will continue to obtain, as security for the liabilities under the Indenture and
the Group IV Series of Notes, a first priority perfected Lien on all Group IV
Vehicles leased under this Agreement. Except as otherwise permitted under the
Indenture, all Vehicle Perfection and Documentation Requirements with respect to
all Group IV Vehicles leased under this Agreement on or after the date hereof
have and will continue to be satisfied.

                                       42
<PAGE>

         28.5     Employee Benefit Plans. (a) During the twelve consecutive
month period prior to the date hereof (or, with respect to each Series of Notes
included in the Group IV Series of Notes after the date hereof, the Closing Date
with respect to such Series of Notes): (i) except for any termination of a
Pension Plan in connection with an acquisition or merger by the Guarantor, which
termination is made in conjunction with the offering by the Guarantor of a
successor Pension Plan, no steps have been taken by the Guarantor or any Lessee
to terminate any Pension Plan and (ii) no contribution failure has occurred with
respect to any Pension Plan sufficient to give rise to a Lien under Section
302(f)(1) of ERISA in connection with such Pension Plan; (b) no condition exists
or event or transaction has occurred with respect to any Pension Plan which
could result in the incurrence by the Guarantor or any Lessee or any member of
the Controlled Group of fines, penalties or liabilities for ERISA violations,
which in the case of any of the events referred to in clause (a) above or this
clause (b) would have a Material Adverse Effect upon the Guarantor or such
Lessee, as applicable, and (c) neither the Guarantor nor any Lessee has any
material contingent liability with respect to any post-retirement benefits under
a Welfare Plan, other than liability for continuation coverage described in
Subtitle B of Part 6 of Title I of ERISA and liabilities which would not have a
Material Adverse Effect upon the Guarantor or such Lessee, as applicable.

         28.6     Investment Company Act. Neither the Guarantor nor any Lessee
is an "investment company" or a company "controlled" by an "investment company,"
within the meaning of the Investment Company Act of 1940, as amended.

         28.7     Regulations T, U and X. Neither the Guarantor nor any Lessee
is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulations T, U and X of the Board of Governors of the
Federal Reserve System).

         28.8     Business Location; Trade Names; Principal Places of Business
Locations. Schedule 28.8 lists each of the locations where each Lessee and the
Guarantor maintains a chief executive office, principal place of business, or
its material books and records with respect to its obligations under this
Agreement; and Schedule 28.8 also lists each Lessee's and the Guarantor's legal
name, each name under or by which each Lessee and the Guarantor conducts its
business, each state in which each Lessee and the Guarantor conducts business
and each state in which each Lessee and the Guarantor has its principal place of
business.

         28.9     Taxes. Each of the Guarantor and each Lessee has filed all tax
returns that are required to be filed by it, and has paid or provided adequate
reserves for the payment of all taxes, including, without limitation, all
payroll taxes and federal and state withholding taxes, and all assessments
payable by it that have become due after the Petition Date, other than those
that are not yet delinquent or are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves have been established,
and are being maintained, in accordance with GAAP. As of the Closing Date with
respect to each Series of Notes included in Group IV, there is no ongoing
material audit (other than routine sales tax audits and other routine audits)
or, to the Guarantor's or any Lessee's knowledge, material tax liability for any
period for which returns have been

                                       43
<PAGE>

filed or were due other than those contested in good faith by appropriate
proceedings and with respect to which adequate reserves have been established
and are being maintained in accordance with GAAP.

         28.10    Governmental Authorization. The Guarantor and each Lessee has
all licenses, franchises, permits and other governmental authorizations
necessary for all businesses presently carried on by it (including owning and
leasing the real and personal property owned and leased by it), except where
failure to obtain such licenses, franchises, permits and other governmental
authorizations would not have a Material Adverse Effect on the Guarantor or such
Lessee, as applicable.

         28.11    Compliance with Laws. The Guarantor and each Lessee: (i) is
not in violation of any Requirement of Law, which violation would have a
Material Adverse Effect on the Guarantor or such Lessee, as applicable, and to
the best knowledge of the Guarantor and the Lessees, no such violation has been
alleged, (ii) has filed in a timely manner all reports, documents and other
materials required to be filed by it with any Governmental Authority (and the
information contained in each of such filings is true, correct and complete in
all material respects), except where failure to make such filings would not have
a Material Adverse Effect on the Guarantor or such Lessee, as applicable, and
(iii) has retained all records and documents required to be retained by it
pursuant to any Requirement of Law, except where failure to retain such records
would not have a Material Adverse Effect on the Guarantor or such Lessee, as
applicable.

         28.12    Eligible Vehicles. Each Group IV Repurchase Vehicle is or will
be, as the case may be, on the Vehicle Lease Commencement Date with respect to
such Group IV Repurchase Vehicle, an Eligible Repurchase Vehicle. Each Group IV
Non-Repurchase Vehicle is or will be, as the case may be, on the Vehicle Lease
Commencement Date with respect to such Group IV Non-Repurchase Vehicle, an
Eligible Non-Repurchase Vehicle or an Eligible Repurchase Vehicle, as the case
may be.

         28.13    Supplemental Documents True and Correct. All information
contained in any Group IV Vehicle Order, Refinancing Schedule or other
Supplemental Document which has been submitted, or which may hereafter be
submitted by a Lessee to the Lessor is, or will be, true, correct and complete.

         28.14    Accuracy of Information. All certificates, reports,
statements, documents and other written information furnished to the Lessor or
the Trustee by the Guarantor or any Lessee pursuant to any provision of any
Related Document, or in connection with or pursuant to any amendment or
modification of, or waiver under, any Related Document, shall, at the time the
same are so furnished, be complete and correct in all material respects to the
extent necessary to give the Lessor or the Trustee, as the case may be, true and
accurate knowledge of the subject matter thereof, and the furnishing of the same
to the Lessor or the Trustee, as the case may be, shall constitute a
representation and warranty by the Guarantor and such Lessee made on the date
the same are furnished to the Lessor or the Trustee, as the case may be, to the
effect specified herein.

                                       44
<PAGE>

         Each of the foregoing representations and warranties will be deemed to
be remade as of the Closing Date with respect to each Group IV Series of Notes.

         29.      CERTAIN AFFIRMATIVE COVENANTS. Each Lessee covenants and
agrees as to itself and as to each other Lessee (except that any Person becoming
a Lessee hereunder pursuant to Section 23 hereof does not covenant and agree as
to any Lessee that is not an Affiliate thereof), and the Guarantor covenants and
agrees as to itself and as to each Lessee that, until the expiration or
termination of this Agreement, and thereafter until the obligations of such
Lessee or the Guarantor under this Agreement and the Related Documents are
satisfied in full, unless at any time the Lessor and the Trustee shall otherwise
expressly consent in writing, it will (and, in the case of the Guarantor, will
cause each Lessee to):

         29.1     Corporate Existence; Foreign Qualification. Except to the
extent excused by the Bankruptcy Code or an order of the Bankruptcy Court, do
and cause to be done at all times all things necessary to (i) maintain and
preserve the corporate existence of the Guarantor and each Lessee (it being
understood that subject to Section 30.1(a) each Budget Subsidiary shall remain a
direct or indirect wholly-owned Subsidiary of the Guarantor); (ii) be, and
ensure that each Lessee is, duly qualified to do business and in good standing
as a foreign corporation in each jurisdiction where the nature of its business
makes such qualification necessary and the failure to so qualify would have a
Material Adverse Effect on the Guarantor or such Lessee, as applicable; and
(iii) comply with all Contractual Obligations and Requirements of Law binding
upon it, except to the extent that the failure to comply therewith would not, in
the aggregate, have a Material Adverse Effect on the Guarantor or such Lessee,
as applicable.

         29.2     Books, Records and Inspections. (i) Maintain complete and
accurate books and records with respect to the Group IV Vehicles leased by it
under this Agreement; (ii) at any time and from time to time during regular
business hours, and with reasonable prior notice from the Lessor or the Trustee,
permit the Lessor or the Trustee (or such other person who may be designated
from time to time by the Lessor or the Trustee), or its agents or
representatives to examine and make copies of all books, records and documents
in the possession or under the control of the Guarantor or such Lessee relating
to the Group IV Vehicles leased under this Agreement including, without
limitation, with respect to Group IV Repurchase Vehicles leased hereunder, in
connection with the Trustee's satisfaction of any requests of a Manufacturer
performing an audit under its Repurchase Program; and (iii) permit the Lessor or
the Trustee (or such other person who may be designated from time to time by the
Lessor or the Trustee), or its agents or representatives to visit the office and
properties of the Guarantor or such Lessee for the purpose of examining such
materials, and to discuss matters relating to the Group IV Vehicles leased
hereunder or the Guarantor's or such Lessee's performance under this Agreement
with any of the officers or employees of the Guarantor or such Lessee having
knowledge of such matters.

         29.3     Insurance. The Guarantor, on behalf of each Budget Subsidiary,
and each Non-Budget Lessee, on its own behalf, subject to applicable state and
other requirements, may self-insure against personal injury and damage claims
arising from the use of the

                                       45
<PAGE>

Group IV Vehicles as well as damage to Group IV Vehicles. All self-insurance
maintained by any member of the Lessee Group shall be maintained in a
financially prudent manner.

         29.4     Repurchase Programs. With respect to each Group IV Repurchase
Vehicle leased by each Lessee hereunder (a) unless previously purchased by such
Lessee pursuant to this Agreement, redesignated as a Group IV Non-Repurchase
Vehicle pursuant to Section 14 hereof or, in the case of any Group IV Type II
Repurchase Vehicle, otherwise disposed of outside the applicable Repurchase
Program in accordance with 3.2, turn in such Group IV Repurchase Vehicle to the
relevant Manufacturer within the Repurchase Period therefor, (b) dispose of such
Group IV Repurchase Vehicle under the applicable Repurchase Program according to
its historical practice and in accordance with the requirements of such
Repurchase Program, and (c) comply with all of its (and the Lessor's)
obligations under the applicable Repurchase Program.

         29.5     Reporting Requirements. (a) Furnish, or cause to be furnished
to the Lessor (and the Lessor shall, in the case of clauses (i), (ii) and (iii)
below, forward a copy of the same to each Rating Agency as shall so request in
writing):

                  (i)      Audit Report. (a) As soon as available and in any
         event within 110 days after the end of each fiscal year of the
         Guarantor, a copy of the consolidated balance sheet of the Guarantor
         and its Subsidiaries as at the end of such fiscal year, together with
         the related statements of earnings, stockholders' equity and cash flows
         for such fiscal year, prepared in reasonable detail and in accordance
         with GAAP certified by independent certified public accountants of
         recognized national standing as shall be selected by the Guarantor; and
         (b) as soon as available and in any event within one hundred ten days
         after the end of each fiscal year of any Non-Budget Lessee, a copy of
         the consolidated balance sheet of such Non-Budget Lessee and its
         Subsidiaries as at the end of such fiscal year, together with the
         related statements of earnings, stockholders' equity and cash flows for
         such fiscal year, prepared in reasonable detail and in accordance with
         GAAP certified by independent certified public accountants of
         recognized national standing as shall be selected by such Non-Budget
         Lessee.

                  (ii)     Quarterly Statements. (a) As soon as available, but
         in any event within 45 days after the end of each fiscal quarter
         (except the fourth fiscal quarter) of the Guarantor, copies of the
         unaudited consolidated balance sheet of the Guarantor and its
         Subsidiaries as at the end of such fiscal quarter and the related
         unaudited statements of earnings, stockholders' equity and cash flows
         for the portion of the fiscal year through such fiscal quarter (and as
         to the statements of earnings for such fiscal quarter) in each case
         setting forth in comparative form the figures for the corresponding
         periods of the previous fiscal year, prepared in reasonable detail and
         in accordance with GAAP applied consistently throughout the periods
         reflected therein and certified by the chief financial or accounting
         officer of the Guarantor as presenting fairly the financial condition
         and results of operations of the Guarantor and its Subsidiaries
         (subject to normal year-end adjustments); and (b) as soon as available,
         but in any event within 45 days after

                                       46
<PAGE>

         the end of each fiscal quarter (except the fourth fiscal quarter) of
         any Non-Budget Lessee, copies of the unaudited consolidated balance
         sheet of such Non-Budget Lessee and its Subsidiaries as at the end of
         such fiscal quarter and the related unaudited statements of earnings,
         stockholders' equity and cash flows for the portion of the fiscal year
         through such fiscal quarter (and as to the statements of earnings for
         such fiscal quarter) in each case setting forth in comparative form the
         figures for the corresponding periods of the previous fiscal year,
         prepared in reasonable detail and in accordance with GAAP applied
         consistently throughout the periods reflected therein and certified by
         the chief financial or accounting officer of such Non-Budget Lessee as
         presenting fairly the financial condition and results of operations of
         such Non-Budget Lessee and its Subsidiaries (subject to normal year-end
         adjustments).

                  (iii)    Amortization Events; Lease Events of Default;
         Wind-Down Events. As soon as possible but in any event within two
         Business Days after the Guarantor or any Lessee has knowledge of the
         occurrence of any Amortization Event, Lease Event of Default, Potential
         Lease Event of Default, Potential Amortization Event, Manufacturer
         Event of Default, Potential Manufacturer Event of Default, Lessee
         Partial Wind-Down Event or Potential Lessee Partial Wind-Down Event, in
         each case, with respect to any outstanding Group IV Series of Notes or
         Group IV Collateral, as applicable, a written statement of an
         Authorized Officer describing such event and the action that the
         Guarantor or a Lessee, as the case may be, proposes to take with
         respect thereto;

                  (iv)     Monthly Vehicle Statements. On or before the third
         Business Day prior to each Due Date, a monthly vehicle statement (each,
         a "Monthly Vehicle Statement") in a form acceptable to the Lessor,
         which shall specify (i) the vehicle identification numbers (the "VIN")
         for the Group IV Vehicles leased hereunder during the Related Month by
         such Lessee, (ii) the Capitalized Cost for Group IV Vehicles that are
         Lessor-Owned Vehicles or Auction Acquired Vehicles, (iii) the Net Book
         Value of Group IV Type I Repurchase Vehicles as of the end of the
         Related Month, (iv) the Type II Repurchase Vehicles Value of Group IV
         Type II Repurchase Vehicles as of the end of the Related Month, (v) the
         Non-Repurchase Vehicle Value of Group IV Non-Repurchase Vehicles as of
         the end of the Related Month, (vi) the VINs for those Group IV Vehicles
         that have been turned back to Manufacturers pursuant to the applicable
         Repurchase Program during the Related Month and the Repurchase Prices
         therefor and those Group IV Vehicles that have been delivered to a
         designated auction site pursuant to the applicable Repurchase Program
         and the Guaranteed Payments therefor, or that have been otherwise sold
         during the Related Month, (vii) those Vehicles that have become
         Casualties during the Related Month and their respective Casualty
         Payment amounts or Termination Values, as applicable (as calculated
         immediately prior to the event causing such Group IV Vehicles to become
         Casualties), (viii) the amount of Disposition Proceeds in respect of
         Group IV Vehicles sold during the Related Month, (ix) the Repurchase
         Prices received during the Related Month and any Guaranteed Payments
         received pursuant to a Repurchase Program during the Related Month, (x)
         the aggregate Depreciation Charges for all Vehicles

                                       47
<PAGE>

         continuing in the possession of the Lessees, (xi) the total amount of
         Monthly Base Rent, Monthly Variable Rent, Monthly Finance Rent,
         Additional Base Rent, Monthly Supplemental Payments and Termination
         Payments being paid hereunder on such date, (xii) information with
         respect to each Lessee necessary for the Servicer to compute the
         Aggregate Group IV Non-Repurchase Asset Amount, the Group IV
         Non-Repurchase Fleet Market Value, compute the Aggregate Group IV Type
         II Repurchase Asset Amount, the Group IV Type II Repurchase Fleet
         Market Value, and the Aggregate Group IV Type I Repurchase Asset
         Amount, each with respect to each Series of Notes included in Group IV
         as of the end of the Related Month, (xi) any other charges owing from,
         and credits due to, the Lessee submitting such Statement under this
         Agreement, (xii) the percentages calculated pursuant to Sections
         2.5(a)(i) through (iii) as of the last day of the Related Month, and
         (xiii) all prepayments of Rent received during the Related Month from
         Guaranteed Payments, Repurchase Prices and Disposition Proceeds
         received by the Lessor during the Related Month from the Manufacturers,
         auctions and other Persons, as the case may be;

                  (v)      Group IV Type II Repurchase Vehicle Report. Reports
         of independent public accountants as follows: On or before the second
         Determination Date immediately following March 31, June 30, September
         30 and December 31, of each year, beginning with September 30, 2002,
         the Servicer shall cause a firm of nationally recognized independent
         public accountants (who may also render other services to the Servicer
         and which is acceptable to the Rating Agencies, or, if no Rating Agency
         is then currently rating any Group IV Series of Notes, to the Required
         Beneficiaries with respect to the outstanding Series of Group IV Notes)
         furnish a report (the "Group IV Type II Repurchase Report") to the
         Lessor, the Trustee and any Rating Agencies then rating any Group IV
         Series of Notes (A) to the effect that they have performed certain
         agreed upon procedures with respect to (i) the calculation of
         Disposition Proceeds and Termination Payments obtained from the sale or
         other disposition of all Group IV Type II Repurchase Vehicles (other
         than Casualties) sold or otherwise disposed of outside of the
         applicable Repurchase Program during each Related Month in such period
         and compared such calculations of Disposition Proceeds and Termination
         Payments with the corresponding amounts set forth in the Daily Reports
         prepared by the Servicer pursuant to Section 4.4(a) of the Indenture,
         (ii) the calculation of the Measurement Month Average for each
         Measurement Month if applicable to any outstanding Group IV Series of
         Notes in such period and compared such amounts with the corresponding
         amounts set forth in the Monthly Servicer's Certificate prepared by the
         Servicer pursuant to Section 4.4(b) of the Indenture and (iii) the
         calculation of the Net Book Value of all Group IV Type II Repurchase
         Vehicles and the Group IV Type II Repurchase Fleet Market Value for the
         Related Month and compared such amounts with the corresponding amounts
         set forth in the Monthly Servicer's Certificate prepared by the
         Servicer, and that on the basis of such comparison such accountants are
         of the opinion that such amounts are in agreement, except for such
         exceptions as they believe to be immaterial and such other exceptions
         as shall be set forth in such report or (B) in such other form as each
         Rating Agency then rating any Group IV Series of Notes

                                       48
<PAGE>

         or, if no Rating Agency is then currently rating any Group IV Series of
         Notes, the Required Beneficiaries with respect to the outstanding
         Series of Group IV Notes, shall have expressly agreed to accept;

                  (vi)     On the 25th of each month, a data file containing the
         following information for each Vehicle leased hereunder the Group IV
         Lease: (i) VIN, (ii) the applicable manufacturer's or dealer's
         "In-Service Date" or date on which depreciation begins for purposes of
         calculating the price at which the manufacturer or dealer will
         repurchase the vehicle, (iii) the Vehicle Lease Commencement Date, (iv)
         the state in which such Vehicle is registered, (v) Manufacturer, (vi)
         model year, (vii) delivery date, (viii) model name, (ix) titleholder,
         (x) lienholder, (xi) Capitalized Cost, (xii) Net Book Value as of such
         date, (xiii) mileage as of such date, (xiv) Repurchase Program, if any,
         (xv) Repurchase or Non-Repurchase, (xvi) finance source and (xvii)
         depreciation rate;

                  (vii)    Monthly Notice of Claims. Monthly, provide to the
         Lessor and Moody's (so long as Moody's is then currently requested to
         rate any of the Group IV Series of Notes), a report of any lawsuits
         filed against the Lessor naming the Lessor as defendant in such action;

                  (viii)   Notice of Final Judgment. Promptly, provide to the
         Lessor and Moody's (so long as Moody's is then currently requested to
         rate any of the Group IV Series of Notes), notice of any final judgment
         rendered against the Lessor; and

                  (ix)     Other. Promptly, from time to time, such other
         information, documents, or reports respecting the Group IV Vehicles
         leased under this Agreement or the condition or operations, financial
         or otherwise, of the Guarantor or the Lessees as the Lessor or the
         Trustee may from time to time reasonably request in order to protect
         the interests of the Lessor or the Trustee under or as contemplated by
         this Agreement or any other Related Document.

         (b)      Budget shall furnish, or cause to be furnished to the Series
2002-1 Noteholders: (i) cash flow and any other financial projections or
information (as specifically agreed to by Budget and the Agent) as and when such
projections are prepared and are available or when such other information is
available; and (ii) as and when delivered to the Agent and the Lenders under the
Credit Agreement (as such terms are defined therein), those financial
statements, notices, projections and other information set forth in paragraphs
(a), (b), (c) and (d) of Annex E to the Credit Agreement.

         29.6     Taxes and Liabilities. Except to the extent excused by the
Bankruptcy Code or an order of the Bankruptcy Court, pay when due all taxes,
assessments and other material (determined on a consolidated basis) liabilities
(including, without limitation, taxes, titling fees and registration fees
payable with respect to Group IV Vehicles) or as contested in good faith and by
appropriate proceedings with respect to which adequate reserves have been
established, and are being maintained, in accordance with GAAP if and so long as
forfeiture of any part of the Group IV Vehicles leased under this

                                       49
<PAGE>

Agreement will not result from the failure to pay any such taxes, assessments or
other material liabilities during the period of any such contest.

         29.7     Compliance with Laws. Except to the extent excused by the
Bankruptcy Code or an order of the Bankruptcy Court, comply with all
Requirements of Law related to its businesses if the failure so to comply would
have a Material Adverse Effect on the Guarantor or such Lessee, as applicable.

         29.8     Maintenance of Separate Existence. The Guarantor and each
Lessee acknowledges its receipt of a copy of that certain opinion letter issued
by Latham & Watkins, dated August 6, 2002, and addressing the issue of
substantive consolidation as it may relate to the Guarantor, each Lessee and the
Lessor. The Guarantor and each Lessee hereby agrees to maintain in place all
policies and procedures, and take and continue to take all action, described in
the factual assumptions set forth in such opinion letter and relating to such
Person.

         29.9     Trustee as Lienholder. Concurrently with each leasing of a
Group IV Vehicle under this Agreement, the Servicer shall indicate on its
computer records that the Trustee as assignee of the Lessor is the holder of a
Lien on such Group IV Vehicle pursuant to the terms of the Base Indenture.

         30.      CERTAIN NEGATIVE COVENANTS. Until the expiration or
termination of this Agreement and thereafter until the obligations of each
Lessee and the Guarantor are paid in full, the Guarantor and each Lessee agrees
that, unless at any time the Lessor and the Trustee shall otherwise expressly
consent in writing, it will not (and, in the case of the Guarantor, will not
permit any Lessee to):

         30.1     Mergers, Consolidations. Be a party to any merger or
consolidation, other than: (i) a merger or consolidation of any Subsidiary of
the Guarantor into or with the Guarantor (provided, however, that the Guarantor
is the surviving corporation) or any merger or consolidation of any Subsidiary
of the Guarantor with or into another Subsidiary of the Guarantor, and (ii) a
merger or consolidation of the Guarantor or any Subsidiary into or with another
entity if:

         (a)      the corporation formed by such consolidation or into or with
which the Guarantor or such Subsidiary is merged shall be a corporation
organized and existing under the laws of the United States of America or any
State or the District of Columbia, and, if the Guarantor or such Subsidiary is
not the surviving entity, shall expressly assume, by an agreement supplement
hereto executed and delivered to the Trustee, the performance of every covenant
and obligation of the Guarantor or such Subsidiary hereunder and under all other
Related Documents;

         (b)      the Guarantor or such Subsidiary has delivered to the Trustee
an officer's certificate and an Opinion of Counsel each stating that such
consolidation or merger and such supplemental agreement comply with this Section
30.1 and that all conditions precedent herein provided for relating to such
transaction have been complied with; and

                                       50
<PAGE>

         (c)      Rating Agency Confirmation shall have been obtained with
respect to such assignment and succession.

         30.2     Other Agreements. Enter into any agreement containing any
provision which would be violated or breached by the performance of its
obligations hereunder or under any instrument or document delivered or to be
delivered by it hereunder or in connection herewith.

         30.3     Liens. Create or permit to exist any Lien with respect to any
Group IV Vehicle leased hereunder now or hereafter existing or acquired, except
Liens in favor of the Lessor or the Trustee or the Secured Parties, subordinate
Liens that may have been granted to debtor-in-possession lenders pursuant to an
order of the Bankruptcy Court entered on or prior to the date of this Lease and
the following Liens to the extent such liens in the aggregate would not
materially adversely affect the interests of the Lessor or the Trustee or the
Secured Parties under this Agreement or the Base Indenture or the likelihood of
payment of Rent hereunder or the Notes thereunder (herein collectively called
the "Permitted Liens"): (i) Liens for current taxes not delinquent or for taxes
being contested in good faith and by appropriate proceedings, and with respect
to which adequate reserves have been established, and are being maintained, in
accordance with GAAP, (ii) Liens, including judgment liens, arising in the
ordinary course of business being contested in good faith and by appropriate
proceedings, and with respect to which adequate reserves have been established,
and are being maintained, in accordance with GAAP, (iii) Liens incurred in the
ordinary course of business in connection with worker's compensation,
unemployment insurance or other forms of governmental insurance or benefits, and
(iv) mechanics', materialmen's, landlords', warehousemen's and carriers' Liens,
and other Liens imposed by law, securing obligations arising in the ordinary
course of business that are being contested in good faith and by appropriate
proceedings and with respect to which adequate reserves have been established,
and are being maintained, in accordance with GAAP.

         30.4     Use of Vehicles. Knowingly use or allow the Group IV Vehicles
to be used in any manner that would (i) make any Group IV Repurchase Vehicle
ineligible for repurchase, or for the guarantee by the related Manufacturer of
the resale price thereof, under an Eligible Repurchase Program (subject to the
provisions of Section 19 regarding Eligibility Waiver Events), except with
respect to the permitted redesignation of Group IV Repurchase Vehicles as, Group
IV Non-Repurchase Vehicles pursuant to Section 14(a) hereof, or (ii) subject
Group IV Vehicles to confiscation.

         31.      BANKRUPTCY PETITION AGAINST LESSOR. The Guarantor and each
Lessee hereby covenants and agrees that, prior to the date which is one year and
one day after the payment in full of all Series of Notes (whether in Group IV or
otherwise), it will not institute against, or join any other Person in
instituting against, the Lessor any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other similar proceeding under the laws
of the United States or any state of the United States. In the event that the
Guarantor or any Lessee takes action in violation of this Section 31, the Lessor
agrees, for the benefit of the Noteholders, that it shall file an answer with
the bankruptcy court or otherwise properly contest the filing of such a petition
by the

                                       51
<PAGE>

Guarantor or any such Lessee against the Lessor or the commencement of such
action and raise the defense that the Guarantor or any such Lessee has agreed in
writing not to take such action and should be estopped and precluded therefrom
and such other defenses, if any, as its counsel advises that it may assert. The
provisions of this Section 31 shall survive the termination of this Agreement.

         32.      SUBMISSION TO JURISDICTION. The Lessor and the Trustee may
enforce any claim arising out of this Agreement in any state or federal court
having subject matter jurisdiction, including, without limitation, any state or
federal court located in the State of New York. For the purpose of any action or
proceeding instituted with respect to any such claim, the Guarantor and each
Lessee hereby irrevocably submits to the jurisdiction of such courts. Each
Lessee hereby irrevocably designates the Guarantor to receive for and on behalf
of such Lessee service of process in New York. The Guarantor and each Lessee
further irrevocably consents to the service of process out of said courts by
mailing a copy thereof, by registered mail, postage prepaid, to the Guarantor or
such Lessee, as the case may be, and agrees that such service, to the fullest
extent permitted by law, (i) shall be deemed in every respect effective service
of process upon it in any such suit, action or proceeding and (ii) shall be
taken and held to be valid personal service upon and personal delivery to it.
Nothing herein contained shall affect the right of the Trustee and the Lessor to
serve process in any other manner permitted by law or preclude the Lessor or the
Trustee from bringing an action or proceeding in respect hereof in any other
country, state or place having jurisdiction over such action. The Guarantor and
each Lessee hereby irrevocably waives, to the fullest extent permitted by law,
any objection which it may have or hereafter have to the laying of the venue of
any such suit, action or proceeding brought in any such court located in the
State of New York and any claim that any such suit, action or proceeding brought
in such a court has been brought in an inconvenient forum.

         33.      GOVERNING LAW. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES. Whenever possible each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement. All obligations of the
Guarantor and each Lessee and all rights of the Lessor or the Trustee expressed
herein shall be in addition to and not in limitation of those provided by
applicable law or in any other written instrument or agreement.

         34.      JURY TRIAL. EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT TO WHICH IT IS A
PARTY, OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM ANY
RELATIONSHIP EXISTING IN CONNECTION WITH

                                       52
<PAGE>

THIS AGREEMENT OR ANY RELATED TRANSACTION, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

         35.      NOTICES. All notices, requests and other communications to any
party hereunder shall be in writing (including facsimile transmission or similar
writing) and shall be given to such party, addressed to it, at its address or
telephone number set forth on Schedule II, or at such other address or telephone
number as such party may hereafter specify for the purpose by notice to the
other party. In each case, a copy of all notices, requests and other
communications that are sent by any party hereunder shall be sent to the Trustee
and Budget, and a copy of all notices, requests and other communications that
are sent by any Lessee or the Guarantor to the Guarantor or any other Lessee
that pertain to this Agreement shall be sent to the Lessor and the Trustee.
Copies of notices, requests and other communications delivered to the Trustee
and/or the Lessor pursuant to the foregoing sentence shall be sent to the
following addresses:

                  TRUSTEE:     Deutsche Bank Trust Company Americas
                               60 Wall Street
                               New York, New York  10005
                               Attention:       Corporate Trust and Agency
                                                Group/Structured Finance
                               Telephone:       (201) 593-6895
                               Telecopier:      (201) 593-6443

                  LESSOR:      Team Fleet Financing Corporation
                               4225 Naperville Road
                               Lisle, Illinois  60535-3662
                               Attention:       William Johnson
                               Telephone:       (630) 955-7600
                               Telecopier:      (630) 955-7799

Each such notice, request or communication shall be effective when received at
the address specified below. Copies of all notices must be sent by first class
mail promptly after transmission by facsimile.

         36.      LIABILITY. Each member of the Lessee Group shall be held
jointly and severally liable for all of the obligations of each other member of
the Lessee Group hereunder.

         37.      TITLE TO REPURCHASE PROGRAMS IN LESSOR. Each Lessee, by its
execution hereof, acknowledges and agrees that (i) the Lessor is the sole owner
and holder of all right, title and interest in and to the Repurchase Programs
and (ii) such Lessee has no right, title or interest in any Repurchase Program.
To confirm the foregoing, each Lessee, by its execution hereof, hereby assigns
and transfers to the Lessor any rights that such Lessee may have in respect of
any Repurchase Programs.

                                       53
<PAGE>

         38.      HEADINGS. Section headings used in this Agreement are for
convenience of reference only and shall not affect the construction of this
Agreement.

         39.      EXECUTION IN COUNTERPARTS. This Agreement may be executed in
any number of counterparts and by different parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together, shall
constitute one and the same Agreement.

         40.      EFFECTIVENESS. This Agreement shall become effective
concurrently with the issuance of the Series 2002-1 Note as the first Group IV
Series of Notes issued in connection with this Second Amended and Restated
Master Motor Vehicle Lease Agreement - Group IV.

                                       54
<PAGE>

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

                                 LESSOR:

                                 TEAM FLEET FINANCING
                                 CORPORATION

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

                                 LESSEES:

                                 BUDGET RENT-A-CAR SYSTEMS, INC.
                                 NYRAC, INC.

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

                                 GUARANTOR:

                                 BUDGET GROUP, INC.

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

RECEIVED THIS AUGUST __, 2002

DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Trustee

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

<PAGE>
                                                                         ANNEX A

                                      ANNEX

                                     TO THE

                           SECOND AMENDED AND RESTATED
                  MASTER MOTOR VEHICLE LEASE AGREEMENT GROUP IV

                           Dated as of August 6, 2002

                                      among

                        TEAM FLEET FINANCING CORPORATION,
                                    as Lessor

                               BUDGET GROUP, INC.,
                                  as Guarantor

                                       and

                         BUDGET RENT A CAR SYSTEMS, INC.

           and those Subsidiaries and Affiliates of Budget Group, Inc.
                         named on Schedule 1 as Lessees

<PAGE>

         1.       Scope of Annex. This Annex A shall apply only to the
acquisition, leasing and servicing of the Lessor-Owned Vehicles by the Lessor
pursuant to the Agreement, as supplemented by this Lease Annex (collectively,
the "Operating Lease").

         2.       General Agreement. With respect to the Lessor-Owned Vehicles,
the Lessees and the Lessor intend that the Agreement, as supplemented by this
Lease Annex, is an operating lease and that the relationship between the Lessor
and the Lessees pursuant thereto and hereto shall always be only that of lessor
and lessees, and the Lessees hereby declare, acknowledge and agree that the
Lessor has title to and is the owner of the Lessor-Owned Vehicles. The Lessees
shall not acquire by virtue of the Lease any right, equity, title or interest in
or to any Lessor-Owned Vehicles, except the right to use the same under the
terms of the Operating Lease. The parties agree that the Operating Lease is a
"true lease" for all legal, accounting, tax and other purposes and agree to
treat the Operating Lease, as it applies to the Lessor-Owned Vehicles, as an
operating lease for all purposes, including tax, accounting and otherwise. The
parties will file all federal, state and local tax returns and reports in a
manner consistent with the preceding sentence.

         3.       Operating Lease Commitment. (1) The Lessor shall, from time to
time on or after the Lease Commencement Date and prior to the Lease Expiration
Date, subject to the terms and conditions of the Agreement, refinance
Lessor-Owned Vehicles that are Refinanced Vehicles and purchase Lessor-Owned
Vehicles identified in Group IV Vehicle Orders placed by a Lessee for a purchase
price equal to the Capitalized Cost thereof, and simultaneously therewith, the
Lessor shall under the Operating Lease enter into operating leases with the
related Lessee with respect to such Group IV Vehicles; provided, that the
aggregate Net Book Value of Lessor-Owned Vehicles leased hereunder on any date
shall not exceed (a) the Maximum Lease Commitment, less (b) the Base Amount as
of such date with respect to the Financing Lease.

         4.       Reserved.

         5.       Maximum Vehicle Lease Term. The maximum Vehicle lease term of
the Operating Lease as it relates to each Lessor-Owned Vehicle leased hereunder
shall be from the Vehicle Lease Commencement Date to the date that is
twenty-four (24) months from the Vehicle Lease Commencement Date; provided that
notwithstanding the period stated above, the maximum Vehicle lease term for any
Vehicle or type of Vehicle may be such longer period with respect to which
Rating Agency Confirmation has been obtained. On the occurrence of such date for
a Group IV Vehicle not previously disposed of, the applicable Lessee shall, (a)
on behalf of the Lessor, promptly dispose of such Group IV Vehicle in accordance
with the terms hereof and in accordance with any instructions of the Lessor for
such disposition, (b) in each case, provide that Disposition Proceeds be paid
directly to the Collection Account for the benefit of the Group IV Noteholders
and (c) pay to the Trustee, in accordance with this Operating Lease, any other
amounts unpaid and owing from such Lessee under the Lease in respect of such
Vehicle.

         6.       Lessee's Rights to Purchase Vehicles. The related Lessee will
have the option, exercisable during the Vehicle Term with respect to any
Lessor-Owned Vehicle

<PAGE>

leased hereunder, to purchase any Lessor-Owned Vehicles leased under this
Agreement at a purchase price equal to the greater of (a) the applicable Net
Book Value or (b) the Fair Market Value of the Group IV Vehicle (such greater
amount, the "Vehicle Purchase Price", with respect to Group IV Vehicles), in
which event such Lessee will pay the Vehicle Purchase Price to the Lessor on or
before the Due Date next succeeding such purchase by the Lessee plus all accrued
and unpaid Monthly Base Rent and Monthly Variable Rent with respect to such
Vehicle through the date of such purchase. In addition, each Lessee will have
the option, exercisable with respect to any Manufacturer Receivable related to a
Lessor-Owned Vehicle which was leased by such Lessee under this Agreement, to
purchase such Manufacturer Receivable for a price equal to the amount due from
the Manufacturer under such Manufacturer Receivable, in which event the Lessee
will pay such amount to the Trustee on or before the Distribution Date next
succeeding such purchase by the Lessee. Upon receipt of such purchase price by
the Trustee, the Lessor, at the request of the Lessee, shall cause title to any
such Group IV Vehicle or Manufacturer Receivable, as applicable, to be
transferred to the applicable Lessee, and the Lien of the Trustee on such Group
IV Vehicle shall be released thereby.

         7.       Vehicle Disposition. The Lessees agree that, with respect to
Lessor-Owned Vehicles, each Lessee shall use its commercially reasonable efforts
to return each Group IV Repurchase Vehicle (other than any such Group IV
Repurchase Vehicle that has been redesignated as a Group IV Non-Repurchase
Vehicle pursuant to Section 14 at the Lease or, in the case of a Group IV Type
II Repurchase Vehicle, is otherwise disposed of in accordance with Section 3.2
of the Lease) to the related Manufacturer (a) not prior to the end of the Type I
Minimum Term or Type II Minimum Term, as applicable, for such Vehicle, and (b)
not later than the end of the Type I Maximum Term or Type II Maximum Term, as
applicable, for such Vehicle; provided, however, if for any reason, a Lessee
fails to deliver such a Group IV Repurchase Vehicle to the applicable
Manufacturer for repurchase by the Manufacturer in accordance with the
applicable Repurchase Program, during the time period between the expiration of
the Type I Minimum Term of Type II Minimum Term, as applicable, and the
expiration of the Type I Maximum Term or Type II Maximum Term, as applicable,
such Lessee shall be obligated to purchase such Group IV Repurchase Vehicle as
provided in Section 12 of the Agreement, redesignate such Group IV Vehicle as a
Group IV Non-Repurchase Vehicle in accordance with Section 14 of the Lease or,
in the case of a Group IV Type II Repurchase Vehicle, dispose of such Group IV
Type II Repurchase Vehicle promptly and in a commercially reasonable manner so
as to maximize proceeds from the disposition of such Vehicle. Each Lessee shall,
with respect to Lessor-Owned Vehicles leased by it hereunder, pay the equivalent
of the Rent for the Minimum Term for Group IV Repurchase Vehicles returned
before the expiration of the Minimum Term, regardless of actual usage, unless
such a Group IV Repurchase Vehicle is a Casualty, which will be handled in
accordance with Section 6 of the Agreement. All Disposition Proceeds due from
the disposition of Group IV Repurchase Vehicles pursuant to this Section shall
be due and payable to the Lessor. The Lessor and the Lessees agree, with respect
to Lessor-Owned Vehicles, that the Lessees shall use commercially reasonable
efforts to dispose of (a) each Group IV Type II Repurchase Vehicle in the manner
most likely to maximize proceeds from such disposition by either (x) using its
commercially reasonable efforts to return each Group IV Type II Repurchase
Vehicle to the related Manufacturer not prior to

                                     Annex A
                                       2
<PAGE>

the end of the Type II Minimum Term for such Vehicle, or (y) using its
commercially reasonable efforts to otherwise dispose of each Group IV Type II
Repurchase Vehicle in a commercially reasonable manner consistent with industry
practice and applicable requirements of law, in either case (x) or (y) prior to
the expiration of the applicable Type II Maximum Term for such Group IV Type II
Repurchase Vehicle and (b) each Group IV Non-Repurchase Vehicle (x) in a
commercially reasonable manner, consistent with industry practice and applicable
requirements of law, and that is most likely to maximize proceeds from such
disposition and (y) prior to the expiration of the Non-Repurchase Maximum Term
for such Group IV Non-Repurchase Vehicle. Each Lessee shall use commercially
reasonable efforts to cause all proceeds from the disposition of Group IV
Vehicles pursuant to this Section to be paid directly to the Collection Account
for immediate deposit into the Group IV Collection Account; provided that, to
the extent that any Lessee receives any such proceeds directly, it shall deliver
such proceeds to the Trustee within five (5) days of receipt thereof for deposit
into the Collection Account for immediate deposit into the Group IV Collection
Account.

         8.       Lessor's Right to Cause Vehicles to be Sold. Notwithstanding
anything to the contrary contained in the Agreement, the Lessor shall have the
right, at any time after the date forty-five (45) days prior to the expiration
of the Type I Maximum Term, Type II Maximum Term or Non-Repurchase Maximum Term,
as applicable, for any Group IV Vehicle leased under this Annex A, to require
that the Lessee thereof, and the Lessee shall have the obligation to (a) deliver
such Group IV Vehicle to the Manufacturer for repurchase (if such Group IV
Vehicle is a Group IV Repurchase Vehicle) or (b) exercise commercially
reasonable efforts to arrange for the sale of such Vehicle to a third party for
price (i) greater than the Net Book Value thereof (if such Group IV Vehicle is a
Group IV Type I Repurchase Vehicle), (ii) at least equal to the Type II
Repurchase Vehicle Value (if such Group IV Vehicle is a Group IV Type II
Repurchase Vehicle) or (iii) at least equal to the Non-Repurchase Vehicle Value
thereof (if such Group IV Vehicle is a Group IV Non-Repurchase Vehicle). If a
sale of the Vehicle to a third party is arranged by the Lessee prior to the
expiration of such Type I Maximum Term, Type II Maximum Term or Non-Repurchase
Maximum Term, as applicable, in accordance with the foregoing, then the Lessee
shall deliver the Group IV Vehicle to the purchaser thereof, the Lien of the
Trustee on the Certificate of Title of such Group IV Vehicle shall be released,
and the Lessee shall cause to be delivered to the Lessor the funds paid for such
Vehicle by the purchaser. If the Lessee is unable to arrange for a sale of a
Group IV Type I Repurchase Vehicle on or before the 30th day prior to the
expiration of such Type I Maximum Term or a Group IV Type II Repurchase Vehicle
on or before the 30th day prior to the expiration of such Maximum Type II Term,
then the Lessee shall cease attempting to arrange for such a sale and shall
return such Group IV Repurchase Vehicle to the applicable Manufacturer, purchase
such Group IV Vehicle as herein provided or, in the case of a Group IV Type II
Repurchase Vehicle and if applicable, arrange for the sale of such Group IV Type
II Repurchase Vehicle at auction with commercially reasonable efforts to
maximize the sale price. If the Lessee is unable to arrange for a sale of a
Group IV Non-Repurchase Vehicle for an amount in excess of the Non-Repurchase
Vehicle Value thereof prior to the end of the applicable Non-Repurchase Maximum
Term, then the Lessee shall cease attempting to arrange for such sale and shall
arrange for the sale of such Group IV Vehicle at auction with commercially
reasonable efforts to maximize the

                                     Annex A
                                       3
<PAGE>

sale price. In no event may any Group IV Type I Repurchase Vehicle be sold
pursuant to this paragraph 8 (other than pursuant to a Repurchase Program)
unless the funds to be paid to the Lessor arising out of such sale exceed the
Net Book Value of such Group IV Type I Repurchase Vehicle less reasonably
predictable Excess Mileage Charges, Excess Damage Charges and other similar
charges imposed by the Manufacturer.

         9.       Calculation of Rent. Rent shall be due and payable on a
monthly basis as set forth in this paragraph 9:

                  (a)      Certain Definitions. As used herein the following
         terms have the following meanings:

                                    "Additional Base Rent" with respect to the
                           Group IV Type II Repurchase Vehicles and Group IV
                           Non-Repurchase Vehicles leased hereunder, with
                           respect to each Due Date shall equal the amount, if
                           any, by which (a) 100% of the current aggregate Net
                           Book Value of such Group IV Type II Repurchase
                           Vehicles or Group IV Non-Repurchase Vehicles owned by
                           the Lessor exceeds (b) the three (3) month rolling
                           average of the Fair Market Value of such Group IV
                           Type II Repurchase Vehicles or Group IV
                           Non-Repurchase Vehicles, as applicable, for the
                           preceding three (3) calendar months.

                                    "Monthly Base Rent" with respect to each Due
                           Date and each Lessor-Owned Vehicle leased under this
                           Agreement during the Related Month shall be the sum
                           of all Depreciation Charges that have accrued with
                           respect to such Group IV Vehicle during the Related
                           Month.

                                    "Monthly Variable Rent" with respect to each
                           Due Date and each Lessor-Owned Vehicle leased under
                           this Agreement on any day during the Related Month
                           shall equal the sum of (a) an amount equal to the Net
                           Book Value of such Group IV Vehicle, with respect to
                           each Group IV Type I Repurchase Vehicle, the Type II
                           Repurchase Vehicle Value of such Vehicle, with
                           respect to each Group IV Type II Repurchase Vehicle,
                           or the Non-Repurchase Vehicle Value of such Vehicle,
                           with respect to each Group IV Non-Repurchase Vehicle,
                           during the Related Month multiplied by the VFR for a
                           one year interest period, multiplied by a fraction,
                           the numerator of which shall be 30 and the
                           denominator of which shall be 360 and (b) the product
                           of (i) an amount equal to (x) the sum of all Carrying
                           Charges for each Group IV Series of Notes for the
                           Related Month less (y) any accrued earnings on
                           Permitted Investments in the Group IV Collection
                           Account which are accrued through the last Business
                           Day of the Related Month and maturing by the next
                           Distribution Date and (ii) a fraction, the numerator
                           of which is the Net Book Value of such Group IV

                                     Annex A
                                       4
<PAGE>

                           Vehicle, with respect to each Group IV Type I
                           Repurchase Vehicle, the Type II Repurchase Vehicle
                           Value of such Group IV Vehicle, with respect to each
                           Group IV Type II Repurchase Vehicle or the
                           Non-Repurchase Vehicle Value of such Group IV
                           Vehicle, with respect to each Group IV Non-Repurchase
                           Vehicle, and the denominator of which is the sum of
                           the Net Book Values of all Group IV Type I Repurchase
                           Vehicles, Type II Repurchase Vehicle Values of all
                           Group IV Type II Repurchase Vehicles and
                           Non-Repurchase Vehicle Values of all Group IV
                           Non-Repurchase Vehicles. In the event the Vehicle
                           Lease Commencement Date occurs with respect to such
                           Group IV Vehicle on a day other than the last day of
                           a Related Month, the Monthly Variable Rent for such
                           Group IV Vehicle for such initial month shall be
                           equal to the product of (a) the Monthly Variable Rent
                           otherwise payable with respect to such Group IV
                           Vehicle, multiplied by (b) a fraction the numerator
                           of which is the number of days in such Related Month
                           from, after and including such Vehicle Lease
                           Commencement Date through and including the last day
                           of such Related Month and the denominator of which is
                           360. In the event the Vehicle Lease Expiration Date
                           occurs with respect to such Vehicle on a day other
                           than the last day of the Related Month, the Monthly
                           Variable Rent for such Vehicle for such final month
                           shall be equal to the product of (a) the Monthly
                           Variable Rent otherwise payable with respect to such
                           Group IV Vehicle for the Related Month, multiplied by
                           (b) a fraction the numerator of which is the number
                           of days in such Related Month from, after and
                           including the first day of such Related Month through
                           and including the Vehicle Lease Expiration Date and
                           the denominator of which is 360.

                                    "Rent", with respect to Lessor-Owned
                           Vehicles, means Monthly Base Rent, Monthly Variable
                           Rent and Additional Base Rent.

                                    "VFR" for any period with respect to any
                           Group IV Series of Notes, is an interest rate equal
                           to (i) the amount of interest accrued during such
                           period with respect to all Group IV Series of Notes
                           divided by (ii) the average daily Invested Amounts of
                           all such Group IV Series of Notes during such period.

                  (b)      Payment of Rent.  On each Due Date:

                           (i)      Monthly Base Rent. Each Lessee shall pay to
                  the Lessor all Monthly Base Rent that has accrued during the
                  Related Month with respect to each Group IV Vehicle leased
                  hereunder by such Lessee;

                           (ii)     Monthly Variable Rent. Each Lessee shall pay
                  to the Lessor all Monthly Variable Rent that has accrued
                  during the Related

                                     Annex A
                                        5
<PAGE>

                  Month with respect to each Group IV Vehicle leased hereunder
                  by such Lessee; and

                           (iii)    Additional Base Rent. Each Lessee shall pay
                  to the Lessor such Lessee's Pro Rata Share of an amount equal
                  to the monthly Additional Base Rent that has accrued during
                  the Related Month with respect to the Group IV Type II
                  Repurchase Vehicles and Group IV Non-Repurchase Vehicles
                  leased hereunder by such Lessee.

         10.      Net Lease. THE OPERATING LEASE SHALL BE A NET LEASE, AND THE
LESSEE'S OBLIGATION TO PAY ALL RENT AND OTHER SUMS HEREUNDER SHALL BE ABSOLUTE
AND UNCONDITIONAL, AND SHALL NOT BE SUBJECT TO ANY ABATEMENT OR REDUCTION FOR
ANY REASON WHATSOEVER. The obligations and liabilities of the Lessees hereunder
shall in no way be released, discharged or otherwise affected (except as may be
expressly provided herein including, without limitation, the right of each
Lessee to reject Group IV Vehicles pursuant to Section 2.2 of the Agreement) for
any reason, including without limitation: (i) any defect in the condition,
merchantability, quality or fitness for use of the Group IV Vehicles or any part
thereof; (ii) any damage to, removal, abandonment, salvage, loss, scrapping or
destruction of or any requisition or taking of the Group IV Vehicles or any part
thereof; (iii) any restriction, prevention or curtailment of or interference
with any use of the Group IV Vehicles or any part thereof; (iv) any defect in or
any Lien on title to the Group IV Vehicles or any part thereof; (v) any change,
waiver, extension, indulgence or other action or omission in respect of any
obligation or liability of the relevant Lessee or the Lessor; (vi) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to the relevant Lessee, the Lessor
or any other Person, or any action taken with respect to the Operating Lease by
any trustee or receiver of any Person mentioned above, or by any court; (vii)
any claim that the relevant Lessee has or might have against any Person,
including without limitation the Lessor; (viii) any failure on the part of the
Lessor to perform or comply with any of the terms hereof or of any other
agreement; (ix) any invalidity or unenforceability or disaffirmance of the
Operating Lease or any provision hereof or any of the other Related Documents or
any provision of any thereof, in each case whether against or by the relevant
Lessee or otherwise; (x) any insurance premiums payable by the relevant Lessee
with respect to the Group IV Vehicles; or (xi) any other occurrence whatsoever,
whether similar or dissimilar to the foregoing, whether or not the relevant
Lessee shall have notice or knowledge of any of the foregoing and whether or not
foreseen or foreseeable. The Operating Lease shall be noncancelable by the
Lessees and, except as expressly provided herein, each Lessee, to the extent
permitted by law, waives all rights now or hereafter conferred by statute or
otherwise to quit, terminate or surrender the Operating Lease, or to any
diminution or reduction of Rent payable by such Lessee hereunder. All payments
by each Lessee made hereunder shall be final (except to the extent of
adjustments provided for herein), absent manifest error and, except as otherwise
provided herein, no Lessee shall seek to recover any such payment or any part
thereof for any reason whatsoever, absent manifest error. If for any reason
whatsoever the Operating Lease shall be terminated in whole or in part by
operation of law or otherwise except as expressly provided herein, each Lessee
shall nonetheless pay an amount equal to each

                                    Annex A
                                       6

<PAGE>

Rent payment at the time and in the manner that such payment would have become
due and payable under the terms of the Operating Lease as if it had not been
terminated in whole or in part. All covenants and agreements of each Lessees
herein shall be performed at its cost, expense and risk unless expressly
otherwise stated.

         11.      Liens. Except for Permitted Liens, each Lessee shall keep all
Group IV Vehicles leased by it free of all Liens arising during the Term. Upon
the Vehicle Lease Termination Date for each Group IV Vehicle leased hereunder
should any such Lien exist the Lessor may, in its discretion, remove such Lien
and any sum of money that may be paid by the Lessor in release or discharge
thereof, including attorneys' fees and costs, will be paid by the Lessee upon
demand by the Lessor. The Lessor may grant security interests in the Group IV
Vehicles without consent of the relevant Lessee; provided, however, that if any
such Liens would interfere with the rights of such Lessee under this Agreement,
the Lessor must obtain the prior written consent of such Lessee. Each Lessee
acknowledges that the granting of Liens and the taking of other actions pursuant
to the Base Indenture and the Related Documents does not interfere with the
rights of such Lessee under this Agreement.

         12.      Non-Disturbance. So long as a Lessee satisfies its obligations
hereunder, its quiet enjoyment, possession and use of the Group IV Vehicles
leased by it hereunder will not be disturbed during the Term subject, however,
to paragraph 8 of this Annex A to the Lease and except that the Lessor and the
Trustee each retains the right, but not the duty, to inspect the Group IV
Vehicles without disturbing the ordinary conduct of the Lessee's business. Upon
the request of the Lessor or the Trustee, from time to time, each Lessee will
make reasonable efforts to confirm to the Lessor and the Trustee the location,
mileage and condition of each Group IV Vehicle leased by it hereunder and to
make available for the Lessor's or the Trustee's inspection within a reasonable
time period, not to exceed forty-five (45) days, such Group IV Vehicles at the
location where such Group IV Vehicles are normally domiciled. Further, each
Lessee will, during normal business hours and with a notice of three (3)
Business Days, make its records pertaining to the Group IV Vehicles available to
the Lessor or the Trustee for inspection at the location where the Lessee's
records are normally domiciled.

         13.      Certain Risks of Loss Borne by Lessees. Upon delivery of a
Group IV Vehicle to a Lessee, as between the Lessor and the Lessees, such Lessee
assumes and bears the risk of loss, damage, theft, taking, destruction,
attachment, seizure, confiscation or requisition and all other risks and
liabilities with respect to such Group IV Vehicle, including personal injury or
death and property damage, arising with respect to such Group IV Vehicle due to
the manufacture, purchase, acceptance, rejection, delivery, leasing, subleasing,
possession, use, inspection, registration, operation, condition, maintenance,
repair or storage of such Group IV Vehicle, howsoever arising.

         14.      Title. This is an agreement to lease only, and title to the
Lessor-Owned Vehicles will at all times remain in the Lessor's name. The Lessees
will not have any rights or interest in such Group IV Vehicles whatsoever other
than the rights of possession and use of such Group IV Vehicles as provided by
this Agreement. In addition, each Lessee, by its execution hereof, acknowledges
and agrees that (i) the

                                     Annex A
                                        7
<PAGE>

Lessor is the sole owner and holder of all right, title and interest in and to
the Repurchase Programs as they relate to the Lessor-Owned Vehicles leased
hereunder and (ii) the Lessee has no right, title or interest in any Repurchase
Program as it relates to any Lessor-Owned Vehicle leased hereunder. To confirm
the foregoing, each Lessees, by its execution hereof, hereby assigns and
transfers to the Lessor any rights that such Lessee may have in respect of any
Repurchase Programs as they relate to the Lessor-Owned Vehicles leased by it
hereunder.

                                      * * *

                                     Annex A
                                        8
<PAGE>
                                                                         ANNEX B

                                      ANNEX

                                     TO THE

                           SECOND AMENDED AND RESTATED
                  MASTER MOTOR VEHICLE LEASE AGREEMENT GROUP IV

                           Dated as of August 6, 2002

                                      among

                        TEAM FLEET FINANCING CORPORATION,
                                    as Lessor

                               BUDGET GROUP, INC.,
                                  as Guarantor

                                       and

                         BUDGET RENT A CAR SYSTEMS, INC.

           and those Subsidiaries and Affiliates of Budget Group, Inc.

                         named on Schedule 1 as Lessees

<PAGE>

         1.       Scope of Annex. This Annex B shall apply only to the
acquisition or financing, leasing and servicing of the Financed Vehicles by the
Lessor pursuant to the Agreement, as supplemented by this Lease Annex
(collectively, the "Financing Lease").

         2.       General Agreement. With respect to the Financed Vehicles, the
Lessees and the Lessor each intend that the Agreement, as supplemented by this
Lease Annex, constitute a financing arrangement and that the relationship
between the Lessor and the Lessees pursuant thereto and hereto shall always be
only that of lessor and lessee, and the Lessor hereby declares, acknowledges and
agrees that the ownership of each Financed Vehicle leased hereunder rests solely
with the Lessee thereof subject to the security interest granted hereunder to
the Lessor.

         3.       Financing Lease Commitment. Subject to the terms and
conditions of the Financing Lease, upon execution and delivery of the Financing
Lease, the Lessor shall (i) on or after the Lease Commencement Date and prior to
the Lease Expiration Date purchase, finance or refinance Financed Vehicles and
other Refinanced Vehicles identified in Refinancing Schedules for a purchase
price equal to the aggregate Net Book Value thereof, and (ii) from time to time
on or after the Lease Commencement Date and prior to the Lease Expiration Date
purchase all other Financed Vehicles identified in Group IV Vehicle Orders
placed by the Lessees for a purchase price equal to the Capitalized Cost
thereof, and in each case simultaneously therewith enter into this Financing
Lease with the Lessees with respect to the Financed Vehicles, as the case may
be; provided, that the aggregate outstanding Base Amount of the Financing Lease
shall not on any date exceed (a) the Maximum Lease Commitment, less (b) the sum
of (x) the sum of the Net Book Values of Lessor-Owned Vehicles leased under the
Operating Lease on such date, each such Net Book Value calculated as of the
first day contained within both the calendar month in which such date of
determination occurs and the Vehicle Term for the related Lessor-Owned Vehicle,
plus (y) accrued and unpaid Monthly Base Rent under the Operating Lease as of
such date.

         4.       Reserved.

         5.       Maximum Vehicle Lease Term. The maximum vehicle lease term of
the Financing Lease as it relates to each Financed Vehicle leased hereunder
shall be from the Vehicle Lease Commencement Date to the date that is sixty (60)
months from the Vehicle Lease Commencement Date. On the occurrence of such date,
each Lessee shall pay to the Lessor, in accordance with this Financing Lease,
any amounts unpaid and owing under the Lease in respect of such Group IV
Vehicle.

         6.       Calculation of Rent and Monthly Supplemental Payment. Rent and
the Monthly Supplemental Payment shall be due and payable on a monthly basis as
set forth in this Paragraph 6:

                  (a)      Certain Definitions. As used herein the following
         terms have the following meanings:

<PAGE>

                                    "Additional Base Rent" with respect to the
                           Group IV Type II Repurchase Vehicles and Group IV
                           Non-Repurchase Vehicles leased hereunder, with
                           respect to each Due Date shall equal the amount, if
                           any, by which (a) 100% of the current aggregate Net
                           Book Value of such Group IV Type II Repurchase
                           Vehicles or Group IV Non-Repurchase Vehicles financed
                           under this Financing Lease exceeds (b) the three (3)
                           month rolling average of the Fair Market Value of
                           such Group IV Type II Repurchase Vehicles or Group IV
                           Non-Repurchase Vehicles, as applicable, for the
                           preceding three (3) calendar months.

                                    "Monthly Base Rent" with respect to each Due
                           Date and each Financed Vehicle leased under this
                           Agreement on any day during the Related Month shall
                           be the sum of all Depreciation Charges that have
                           accrued with respect to such Group IV Vehicle during
                           the Related Month.

                                    "Monthly Finance Rent" with respect to each
                           Due Date and each Group IV Vehicle subject to this
                           Agreement shall equal the sum of (a) an amount equal
                           to the Net Book Value of such Group IV Vehicle, with
                           respect to each Group IV Type I Repurchase Vehicle,
                           the Type II Repurchase Vehicle Value of such Vehicle,
                           with respect to each Group IV Type II Repurchase
                           Vehicle or the Non-Repurchase Vehicle Value of such
                           Group IV Vehicle with respect to each Group IV
                           Non-Repurchase Vehicle, during the Related Month
                           multiplied by the VFR for a one year interest period,
                           multiplied by a fraction, the numerator of which
                           shall be 30 and the denominator of which shall be 360
                           and (b) the product of (i) an amount equal to (x) the
                           sum of all Carrying Charges for each Group IV Series
                           of Notes for the Related Month less (y) any accrued
                           earnings on Permitted Investments in the Group IV
                           Collection Account which are accrued through the last
                           Business Day of the Related Month and maturing by the
                           next Distribution Date and (ii) a fraction, the
                           numerator of which is the Net Book Value of such
                           Group IV Vehicle, with respect to each Group IV Type
                           II Repurchase Vehicle, the Type II Repurchase Vehicle
                           Value of such Group IV Vehicle, with respect to each
                           Group IV Type II Repurchase Vehicle or the Group IV
                           Non-Repurchase Vehicle Value of such Group IV
                           Vehicle, with respect to each Group IV Non-Repurchase
                           Vehicle and the denominator of which is the sum of
                           the Net Book Values of all Group IV Type I Repurchase
                           Vehicles, Type II Repurchase Vehicle Values of all
                           Group IV Type II Repurchase Vehicles and
                           Non-Repurchase Vehicle Values of all Group IV
                           Non-Repurchase Vehicles. In the event the Vehicle
                           Lease Commencement Date occurs with respect to such
                           Group IV Vehicle on a day other than the last day of
                           a Related Month, the Monthly Finance Rent for such
                           Group IV

                                     Annex B
                                        2
<PAGE>

                           Vehicle for such initial month shall be equal to the
                           product of (a) the Monthly Finance Rent otherwise
                           payable with respect to such Group IV Vehicle,
                           multiplied by (b) a fraction the numerator of which
                           is the number of days in such Related Month from,
                           after and including such Vehicle Lease Commencement
                           Date through and including the last day of such
                           Related Month and the denominator of which is 30. In
                           the event the Vehicle Lease Expiration Date occurs
                           with respect to such Group IV Vehicle on a day other
                           than the last day of the Related Month, the Monthly
                           Finance Rent for such Group IV Vehicle for such final
                           month shall be equal to the product of (a) the
                           Monthly Finance Rent otherwise payable with respect
                           to such Group IV Vehicle for the Related Month,
                           multiplied by (b) a fraction the numerator of which
                           is the number of days in such Related Month from,
                           after and including the first day of such Related
                           Month through and including the Vehicle Lease
                           Expiration Date and the denominator of which is 30.

                                    "Monthly Supplemental Payment" with respect
                           to each Due Date and all Group IV Vehicles that were
                           leased under this Financing Lease on any day during
                           the Related Month shall be an amount equal to the sum
                           of (i) the aggregate Termination Values (each as of
                           the date on which such Financed Vehicle is no longer
                           an Eligible Vehicle, becomes a Casualty or is sold,
                           as applicable) of all the Financed Vehicles financed
                           under this Finance Lease at any time during such
                           Related Month that, without double counting, while so
                           financed are no longer Eligible Repurchase Vehicles
                           or Eligible Non-Repurchase Vehicles have suffered a
                           Casualty or are sold by the Lessee (it being
                           understood that the Lessee has agreed to sell
                           Financed Vehicles only in a manner consistent with
                           the provisions hereof and of the Related Documents)
                           to any Person (including the Lessee) other than to a
                           Manufacturer pursuant to such Manufacturer's
                           Repurchase Program or to a third party pursuant to an
                           Auction conducted through a Manufacturer's Repurchase
                           Program, in each case, during the Related Month, plus
                           (ii) the aggregate Termination Values (each as of the
                           applicable Disposition Date) of all the Financed
                           Vehicles financed under this Finance Lease that while
                           so financed were returned by the Lessee to a
                           Manufacturer or designated auction pursuant to a
                           Repurchase Program with respect to which either (x)
                           the Repurchase Price or the Guaranteed Payment and
                           Disposition Proceeds have been paid by such
                           Manufacturer and/or the related auction dealers
                           during the Related Month or (y) a Manufacturer Event
                           of Default has occurred during the Related Month or
                           (z) the 60th day after the Turnback Date with respect
                           thereto has occurred during the related Month and the
                           Repurchase Price or Guaranteed Payment has not been
                           received, plus (iii) the aggregate face amount of all
                           the Manufacturer Receivables financed under this
                           Finance Lease with

                                     Annex B
                                        3
<PAGE>

                           respect to which either (x) the Repurchase Price or
                           the Guaranteed Payment and Disposition Proceeds have
                           been paid by such Manufacturer and/or the related
                           auction dealers during the Related Month or (y) a
                           Manufacturer Event of Default has occurred during the
                           Related Month or (z) the 60th day after the Turnback
                           Date with respect thereto has occurred during the
                           related Month and the Repurchase Price or Guaranteed
                           Payment has not been received, plus (iv) the
                           aggregate amount of all Auction Receivables financed
                           under this Finance Lease relating to Non-Repurchase
                           Vehicles with respect to which (x) the amount thereof
                           has been paid by the related Auction Dealer during
                           the Related Month or (y) the 5th day after the sale
                           of the related Vehicle at auction has occurred during
                           the Related Month and the amount of the related
                           Auction Receivable has not been received, minus (iv)
                           any amounts received by the Lessor or the Trustee, or
                           deposited into the Collection Account and allocated
                           to the Group IV Series of Notes, during the Related
                           Month representing (a) Repurchase Prices and
                           Guaranteed Payments for repurchases or dispositions
                           of Financed Vehicles or (b) the sales proceeds for
                           sales of Financed Vehicles financed at the time of
                           such sale under this Finance Lease to a third party
                           other than to a Manufacturer. Solely for determining
                           the amounts payable hereunder with respect to a
                           Financed Vehicle that is a Group IV Repurchase
                           Vehicle that became a Casualty as a result of such
                           Group IV Repurchase Vehicle being held beyond the
                           Maximum Term applicable thereto (other than, in each
                           case, a Group IV Repurchase Vehicle that has been
                           redesignated as a Group IV Non-Repurchase Vehicle in
                           accordance with Section 14 of the Lease), such Group
                           IV Vehicle will be deemed to have become a Casualty
                           upon the date the Maximum Term expires.

                                    "Rent", with respect to Financed Vehicles,
                           means Monthly Base Rent, Monthly Finance Rent,
                           Monthly Supplemental Rent, Additional Base Rent and
                           Monthly Supplemental Payments.

                                    "VFR" for any period with respect to any
                           Group IV Series of Notes, is an interest rate equal
                           to (i) the amount of interest accrued during such
                           period with respect to all Group IV Series of Notes
                           divided by (ii) the average daily Invested Amounts of
                           all such Group IV Series of Notes during such period.

                  (b)      Payment of Rent. On each Due Date:

                           (i)      Monthly Base Rent. Each Lessee shall pay to
                  the Lessor all Monthly Base Rent that has accrued during the
                  Related Month with respect to each Group IV Vehicle leased
                  hereunder by such Lessee;

                                     Annex B
                                        4
<PAGE>

                           (ii)     Monthly Finance Rent. Each Lessee shall pay
                  to the Lessor all Monthly Finance Rent that has accrued during
                  the Related Month with respect to each Group IV Vehicle leased
                  hereunder by such Lessee;

                           (iii)    Additional Base Rent. Each Lessee shall pay
                  to the Lessor such Lessee's Pro Rata Share of an amount equal
                  to the monthly Additional Base Rent that has accrued during
                  the Related Month with respect to the Group IV Type II
                  Repurchase Vehicles and Group IV Non-Repurchase Vehicles
                  leased hereunder by such Lessee; and

                           (iv)     Monthly Supplemental Payments. Each Lessee
                  shall pay to the Lessor the Monthly Supplemental Payments that
                  have accrued during the Related Month with respect to all
                  Group IV Vehicles that were leased under the Finance Lease on
                  any day during the Related Month; provided, however, that in
                  the event that the Monthly Supplemental Payment accrued during
                  a Related Month is a negative dollar amount, such amount may
                  be netted against other payments to be paid on such Due Date
                  pursuant to this Paragraph 6.

                  (c)      On the expiration of the Term of the Lease, any
         remaining Base Amount, plus all other amounts payable by the Lessees
         under the Financing Lease shall be immediately due and payable.

                  (d)      A Lessee may from time to time prepay the Base Amount
         of the Financing Lease with respect to a Financed Vehicle leased by it
         hereunder, in whole or in part, on any date, provided that such Lessee
         shall give the Lessor and the Trustee not less than one (1) Business
         Day's prior notice of any prepayment, specifying the date and amount of
         such prepayment, and the Financed Vehicles to which such prepayment
         relates.

         7.       Risk of Loss Borne by Lessees. Upon delivery of each Financed
Vehicle to the Lessee thereof, as between the Lessor and the Lessee thereof, the
Lessee assumes and bears the risk of loss, damage, theft, taking, destruction,
attachment, seizure, confiscation or requisition with respect to such Group IV
Vehicle, however caused or occasioned, and all other risks and liabilities,
including personal injury or death and property damage, arising with respect to
such Group IV Vehicle or the manufacture, purchase, acceptance, rejection,
ownership, delivery, leasing, subleasing, possession, use, inspection,
registration, operation, condition, maintenance, repair, storage, sale, return
or other disposition of such Group IV Vehicle, howsoever arising.

         8.       Mandatory Repurchase of Texas Vehicles and Hawaii Vehicles.
Prior to the Vehicle Lease Expiration Date with respect to each Texas Vehicle or
Hawaii Vehicle (other than a Vehicle Lease Expiration Date arising in connection
with the purchase of such Group IV Vehicle pursuant to this Paragraph 8) and,
prior to the expiration of the Type I Maximum Term, Type II Maximum Term or
Non-Repurchase Maximum Term, applicable thereto, the Lessee thereof shall
purchase such Texas Vehicle or Hawaii Vehicle (including any such Group IV
Vehicle which has become a Casualty) at a

                                     Annex B
                                        5
<PAGE>

purchase price equal to the Net Book Value of such Group IV Vehicle calculated
as of the date of purchase (or, in the case of a Casualty, at a purchase price
equal to the Monthly Supplemental Payments accruing in respect of such Casualty
during the Related Month in which such Group IV Vehicle became a Casualty),
which shall be payable to the Trustee (together with all accrued and unpaid Rent
and other payments due and payable on such Due Date with respect to such Texas
Vehicle or Hawaii Vehicle through the date of such purchase) on or prior to the
Due Date next succeeding such purchase by the Lessee. The Lessor shall cause
title to each Texas Vehicle or Hawaii Vehicle to be transferred to the Lessee
thereof, and the Servicer shall cause the Trustee to cause its Lien to be
removed from the Certificate of Title for such Group IV Vehicle, concurrently
with or promptly after such purchase price for such Texas Vehicle or Hawaii
Vehicle, as applicable, (and any such unpaid Rent and payments) is paid by the
Lessee to the Trustee. Notwithstanding anything to the contrary in this
Agreement, no Texas Vehicle or Hawaii Vehicle may be sold or otherwise disposed
of (other than pursuant to Section 17.3 of the Agreement), including by return
to its Manufacturer pursuant to a Repurchase Program, prior to its purchase by
the Lessee thereof pursuant to and in accordance with this Paragraph 8.

         9.       Lessee's Rights to Purchase Manufacturer Receivables. In
addition, each Lessee will have the option, exercisable with respect to any
Manufacturer Receivable related to a Financed Vehicle which was leased by such
Lessee under this Agreement, to purchase such Manufacturer Receivable for a
price equal to the amount due from the Manufacturer under such Manufacturer
Receivable, in which event the Lessee will pay such amount to the Trustee on or
before the Distribution Date next succeeding such purchase by the Lessee. Upon
receipt of such funds by the Trustee, the Lessor, at the request of the Lessee,
shall cause title to any such Manufacturer Receivable to be transferred to the
Lessee, and the Lien of the Trustee in such Manufacturer Receivable will
automatically be released concurrently with or promptly after the purchase price
for such Manufacturer Receivable (and any unpaid Monthly Base Rent, unpaid
Monthly Variable Rent and other unpaid charges, payments and amounts relating
thereto) is paid by the Lessee to the Trustee.

                                      * * *

                                     Annex B
                                        6
<PAGE>
                                                                      Schedule I

                    LESSEES AS OF SERIES 2002-1 CLOSING DATE

1.       BUDGET RENT-A-CAR SYSTEMS, INC.

2.       NYRAC, INC.

<PAGE>

                                                                     Schedule II

                                NOTICE ADDRESSES

    BUDGET RENT-A-CAR SYSTEMS, INC.
    Address:          4225 Naperville Road
                      Lisle, IL

    Attention:        William Johnson
    Telephone:        630-955-7600
    Telecopier:       630-955-7799

    NYRAC, INC.

    Address:          4225 Naperville Road
                      Lisle, IL

    Attention:        William Johnson
    Telephone:        630-955-7600
    Telecopier:       630-955-7799

<PAGE>

                                                                   Schedule 28.8

                               BUSINESS LOCATIONS

    BUDGET RENT-A-CAR SYSTEMS, INC.

    Address:          4225 Naperville Road
                      Lisle, IL

    Attention:        William Johnson
    Telephone:        630-955-7600
    Telecopier:       630-955-7799

    NYRAC, INC.

    Address:          4225 Naperville Road
                      Lisle, IL

    Attention:        William Johnson
    Telephone:        630-955-7600
    Telecopier:       630-955-7799

    BUDGET GROUP, INC.

    Address:          4225 Naperville Road
                      Lisle, IL

    Attention:        William Johnson
    Telephone:        630-955-7600
    Telecopier:       630-955-7799

<PAGE>

                                 ATTACHMENT A-1
                                       TO
                           SECOND AMENDED AND RESTATED
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP IV

         INFORMATION ON REFINANCED VEHICLES AND ELIGIBLE RECEIVABLES

Refinanced Vehicles

1.       Vehicle Model
2.       Vehicle Identification Number (last eight digits) (VIN)
3.       Vehicle Lease Commencement Date
4.       Capitalized Cost
5.       Monthly Base Rent
6.       State of Title and Registration
7.       Lienholder
8.       Amount to pay off existing indebtedness

Eligible Receivables

1.       identity of obligor
2.       amount of receivable
3.       date of origination of receivable
4.       vehicle identification number (VIN) of vehicles to which receivable
         relates (grouped by obligor)

         The [Lessee]/[Servicer] hereby represents and warrants that: (a) all
the conditions precedent under the Group IV Master Lease to the leasing of such
Refinanced Vehicles and financing of such Eligible Receivables under the Group
IV Master Lease have been satisfied, (b) each such receivable is an Eligible
Receivable, and (c) the Lien of the Trustee has been noted on the Certificate of
Title for each such Vehicle or such other actions to cause the Trustee's Lien to
be a perfected first Lien have been taken by the Servicer.

<PAGE>

                                 ATTACHMENT A-2
                                       TO
                           SECOND AMENDED AND RESTATED
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP IV

                      GROUP IV VEHICLE ACQUISITION SCHEDULE

                                  Vehicle Order

1.       Vehicle Model
2.       Vehicle Identification Number (last eight digits) (VIN)
3.       Vehicle Lease Commencement Date
4.       Capitalized Cost
5.       Monthly Base Rent
6.       State of Title and Registration

<PAGE>

                                  ATTACHMENT B
                                       TO
                           SECOND AMENDED AND RESTATED
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP IV

                            FORM OF POWER OF ATTORNEY

         KNOW ALL MEN BY THESE PRESENTS, that Team Fleet Financing Corporation
does hereby make, constitute and appoint _________________________ its true and
lawful Attorney(s)-in-fact for it and in its name, stead and behalf, to execute
any and all documents pertaining to the titling of motor vehicles in the name of
Team Fleet Financing Corporation, the noting of the Lien of Deutsche Bank Trust
Company Americas (formerly known as Bankers Trust Company), as trustee, as the
first lienholder on certificates of title, the correction of any such
certificate of title, the licensing and registration of motor vehicles and the
transfer of title to the Manufacturer and to __________. This power is limited
to the foregoing and specifically does not authorize the creation of any liens
or encumbrances on any of said motor vehicles.

         The powers and authority granted hereunder shall, unless sooner
terminated, revoked or extended, cease five years from the date of execution as
set forth below.

<PAGE>

         IN WITNESS WHEREOF, Team Fleet Financing Corporation has caused this
instrument to be executed on its behalf by its [Secretary] this _____ day of
__________, 20__.

                                            TEAM FLEET FINANCING CORPORATION

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

                                      B-2
<PAGE>

State of
         ---------------------------   )
County of                              )
          --------------------------   )

         Subscribed and sworn before me, a notary public, in and for said county
and state, this __________ day of __________, 20___.

                                    --------------------------------------------
                                                 Notary Public

                                    My Commission Expires:
                                                           ---------------------

                                      B-3
<PAGE>

                                  ATTACHMENT C
                                       TO
                           SECOND AMENDED AND RESTATED
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP IV

                            FORM OF JOINDER IN LEASE

         THIS JOINDER IN LEASE AGREEMENT (this "Joinder") is executed as of
_______________ ___, 20___, by _______________, a ________________________
______________ ("Joining Party"), and delivered to Team Fleet Financing
Corporation, a Delaware corporation ("TFFC"), as lessor pursuant to the Second
Amended and Restated Master Motor Vehicle Lease Agreement Group IV, dated as of
August 6, 2002 (as amended, supplemented or otherwise modified from time to time
in accordance with the terms thereof, the "Lease"), among TFFC, Budget Rent A
Car Systems, Inc. and those direct or indirect Subsidiaries and other Affiliates
of Budget Group, Inc. ("Budget"), a Delaware corporation formerly known as Team
Rental Group, Inc., that are listed on Schedule 1 to the Lease and those that
become party to the Lease pursuant to the provisions of Section 23 thereof and
those additional parties that are not direct or indirect Subsidiaries or other
Affiliates of Budget that become parties to the Lease pursuant to the provisions
of Section 23 thereof (individually, a "Lessee" and, collectively, the
"Lessees"), and Budget, as guarantor. Capitalized terms used herein but not
defined herein shall have the meanings provided for in the Lease.

                                R E C I T A L S:
                                 - - - - - - - -

         [WHEREAS, the Joining Party is a direct or indirect Subsidiary or other
Affiliate of Budget; and]

         WHEREAS, the Joining Party desires to become a "Lessee" under and
pursuant to the Lease.

         NOW, THEREFORE, the Joining Party agrees as follows:

                                      C-1
<PAGE>

                               A G R E E M E N T:
                                - - - - - - - - -

         1.       The Joining Party hereby represents and warrants to and in
favor of TFFC and the Trustee that (i) [the Joining Party is a direct or
indirect Subsidiary or Affiliate of Budget, (ii)] all of the conditions required
to be satisfied pursuant to Section 23 of the Lease in respect of the Joining
Party becoming a Lessee thereunder have been satisfied, and (iii) all of the
representations and warranties contained in Section 28 of the Lease with respect
to the Lessees are true and correct as applied to the Joining Party as of the
date hereof.

         2.       The Joining Party hereby agrees to assume all of the
obligations of a "Lessee" under the Lease and agrees to be bound by all of the
terms, covenants and conditions therein.

         3.       The Joining Party acknowledges its receipt of a copy of that
certain opinion letter issued by Latham & Watkins, dated August 6, 2002, and
addressing the issue of substantive consolidation as it may relate to the
Guarantor, each Lessee and the Lessor. The Joining Party hereby agrees to
maintain in place all policies and procedures, and take and continue to take all
action, described in the factual assumptions set forth in such opinion letter
and relating to the Lessees or such Joining Party.

         4.       By its execution and delivery of this Joinder, the Joining
Party hereby becomes a Lessee for all purposes under the Lease. By its execution
and delivery of this Joinder, TFFC acknowledges that the Joining Party is a
Lessee for all purposes under the Lease.

                                      C-2
<PAGE>

         IN WITNESS WHEREOF, the Joining Party has caused this Joinder to be
duly executed as of the day and year first above written.

                                           [Name of Joining Party]

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

Accepted and Acknowledged by:

TEAM FLEET FINANCING CORPORATION

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

Consented to by:

BUDGET GROUP, INC.

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

                                      C-3

<PAGE>

                                  ATTACHMENT D
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP IV

                              FORM OF BILL OF SALE

         IN CONSIDERATION OF the payment of $_______________, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, [SELLER], a [state of incorporation] corporation (the "Seller"),
does hereby sell, assign, transfer, convey, grant, bargain, set over, release,
deliver and confirm unto Team Fleet Financing Corporation, a Delaware
corporation (the "Buyer"), its successors and assigns, forever, the entire
right, title and interest of the Seller in, to and under all the Group IV
Vehicles listed and described in Schedule I attached hereto (the "Vehicles"),
the Seller's interest in Repurchase Programs with respect to the Vehicles, all
moneys due or to become due and all amounts received or receivable with respect
thereto and all proceeds thereof (collectively, the "Transferred Assets").
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Amended and Restated Base Indenture dated
as of December 1, 1996, as supplemented or amended by that certain Series
Supplement dated August 6, 2002 among the Buyer, Budget Group, Inc. ("Budget"),
a Delaware corporation, as Servicer and Budget Interestholder, and Deutsche Bank
Trust Company Americas, formerly know as Bankers Trust Company, a New York
Banking Corporation, as the Trustee (the "Trustee").

         The Seller hereby constitutes and appoints the Buyer, its successors
and assigns, the true and lawful attorney of the Seller, with full power of
substitution, in the name of the Buyer or in the name of the Seller, but for the
benefit and at the expense of the Buyer, to collect, demand and receive any and
all Transferred Assets, to collect any accounts receivable included in the
Transferred Assets and to endorse in the name of the Seller any checks or drafts
received in payment thereof and to enforce by appropriate proceedings any claim,
right or title of any kind in or to the Transferred Assets. The foregoing shall
include, without limitation, the right to change the holder of title on the
certificates of title included within the Transferred Assets. The Seller
acknowledges that the foregoing powers are coupled with an interest and shall be
irrevocable by the Seller for any reason.

         From and after the date hereof, upon request of the Buyer, the Seller,
at its own expense, shall do such further and other acts and execute such
further and other agreements, assignments, bills of sale, certificates
(including Certificates of Title), powers, instruments and other documents as
the Buyer may deem necessary, desirable or appropriate to vest in the Buyer or
further assure to the Buyer all right, title and interest of the Seller in, to
and under the Transferred Assets.

                                      D-1
<PAGE>

         IN WITNESS WHEREOF, the Seller has executed this Bill of Sale as of
_______________, 20___.

                                                [SELLER]

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

                                      D-2

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

                                                                            PAGE

                                                                      SCHEDULE 1
                                                                 TO BILL OF SALE

                                    VEHICLES

               VIN                                 NET BOOK
                                                   VALUE

               ---------------                     ------------------
               Total:                              $
                                                   ==================

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