Document:

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                                                                   EXHIBIT 4.31

                            SERIES 2000-1 SUPPLEMENT

                         dated as of February 25, 2000
                                     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

                             BANKERS TRUST COMPANY,
                                  the Trustee

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         Series 2000-1 Supplement, dated as of February 25, 2000 (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 Bankers Trust Company, 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").

                             PRELIMINARY STATEMENT

         WHEREAS, Sections 2.2 and 12.1 of the Base Indenture provide, 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.

         WHEREAS, all conditions precedent as set forth in such Sections with
respect to entering into a supplement to the Base Indenture have been
satisfied.

         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 2000-1 and is referred to as the "Series
2000-1 Note."

         (b) The proceeds from the sale of and Increases in respect of the
Series 2000-1 Note shall be deposited in the Series 2000-1 Collection Account,
and such proceeds shall be available to TFFC and used (i) on and after the
Series 2000-1 Issuance Date, to finance the acquisition by the Issuer and the
Lessees of, or to refinance, Financed Vehicles and Eligible Receivables and
(ii) on and after the Series 2000-1 Issuance Date, to acquire Lessor-Owned
Vehicles manufactured by certain Eligible Manufacturers.

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         (c) The Series 2000-1 Note is a Segregated Series of Notes (as more
fully described in the Base Indenture) and is hereby designated as a "Group II
Series of Notes". Accordingly, the Series 2000-1 Note (and each other Group II
Series of Notes) shall be secured solely by the Group II Collateral and any
other collateral designated as security for the Series 2000-1 Note (and, as
applicable, any other Group II Series of Notes) under this Supplement or any
other Supplement and will not be secured by any 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 2000-1 Note, the Group II Collateral and any other collateral
designated as security for the Group II Series of Notes under this Supplement
or any other related Series Supplement (the Series 2000-1 Note and any such
additional Segregated Series, each, a "Group II Series of Notes" and,
collectively, the "Group II 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 II Series of Notes.

         (d) If, notwithstanding the provisions of clause (c) above, the Series
2000-1 Note is deemed by any court to be secured by collateral other than the
Group II Collateral and any other collateral designated as security for the
Series 2000-1 Note (and, as applicable, any other Series of Group II Notes)
under this Supplement or any other Supplement ("Non-Group II Collateral"), then
the interest of the Series 2000-1 Noteholders in such Non-Group II Collateral
shall be subordinate in all respects to the interest of the Noteholders of the
Series to which such Non-Group II 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 2000-1 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 2000-1 Note shall
include all obligations of the Issuer now or hereafter existing under each such
Series 2000-1 Note, whether for principal, interest, fees, expenses or
otherwise, and (B) without limiting the generality of the foregoing, "interest"
owing on the Series 2000-1 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 2000-1 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 2000-1 Note retains such

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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 in any subsequent bankruptcy of the Issuer; 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 receive on account of such holder's
interest in the Series 2000-1 Note under any such plan of reorganization, from
the Issuer, 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 2000-1 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 Bridge Loan Agreement then in effect, shall have the
following meanings with respect to the Series 2000-1 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 II Collection
Account, the Series 2000-1 Collection Account, the Series 2000-1 Distribution
Account and each collection account for each other Group II Series of Notes.

         "Accrued Amounts" means, with respect to any Group II 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.

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

         "Additional Fees" means, with respect to any Series 2000-1 Interest
Period, the aggregate amount of fees, if any, under the Bridge Loan Agreement
then in effect which have accrued during such Series 2000-1 Interest Period and
which are payable by TFFC in respect of the Series 2000-1 Note, in each case
solely to the extent such fees are not included in the calculation of the
Series 2000-1 Note Rate for any Series 2000-1 Interest Period.

         "Advance" has the meaning specified in the Bridge Loan Agreement.

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

         "Aggregate Principal Balance" means, for any date of determination the
aggregate unpaid principal amount of the Outstanding Series 2000-1 Note as of
such date.

         "Aggregate Group II 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 II Repurchase Vehicles leased under the
Group II Master Lease as of such date 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 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 Losses, plus
(iii) all Auction Receivables due with respect to the disposition of Group II
Repurchase Vehicles as of such date from any Auction Dealer with respect to
Group II Repurchase Vehicles, other than any such amounts which have become
Losses, plus (iv) the aggregate amount of Eligible Receivables as of such date,
other than any such amounts which have become Losses, plus (v) with regard to
Group II Repurchase Vehicles that have been turned in to the Manufacturer or
otherwise sold, any accrued and unpaid Base Rent under the Group II Master
Lease with respect to such Group II Repurchase Vehicles (net of amounts set
forth in clauses (ii), (iii) and (iv) above), other than any such amounts which
have become Losses.

         "Asset Amount Deficiency" with respect to the Series 2000-1 Notes
shall mean a Series 2000-1 Asset Amount Deficiency and with respect to any
other Group II Series of Notes, shall have the meaning specified in the related
Series Supplement.

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

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         "Auction Receivable" means a legal, valid and binding receivable due
from an Auction Dealer to TFFC or a Lessee in respect of Group II 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.

         "Base Amount" means, as of any date of determination, the sum of the
Net Book Values of all Financed Vehicles leased under the Finance 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.

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

         "Bridge Loan Agreement" means the Bridge Loan Agreement, dated as of
February 25, 2000, among TFFC, as borrower, Budget, as servicer and Credit
Suisse First Boston, New York Branch, as lender, as such agreement may be
amended, supplemented, amended and restated or otherwise modified from time in
accordance with the terms thereof.

         "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 II
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 II 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
II Series of Notes including all classes of such Series of Notes and (ii) the
available subordinated amount percentages for all Group II 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 II
Collections that are Principal Collections, Recoveries, Losses and other
amounts, as applicable.

         "Budget Interestholder" means Budget, as owner of all outstanding
capital stock of TFFC or any permitted successor or assign.

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

         "Collateral" means the Group II Collateral, the Series 2000-1
Collateral.

         "Collections" means Group II Collections and all other Series 2000-1
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.

         "Daily Interest Amount" means, for any day in a Series 2000-1 Interest
Period, an amount equal to (a) the product of (i) the Series 2000-1 Note Rate
for such Series 2000-1 Interest Period and (ii) the aggregate unpaid principal
amount of the Series 2000-1 Note as of the close of business on such date,
divided by (b) 360.

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

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

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

         "Disposition Date" means, with respect to any Group II Repurchase
Vehicle, (i) if such Group II Vehicle was sold at auction or returned to a
Manufacturer for repurchase, pursuant to the applicable Repurchase Program, the
date on which such Group II Vehicle was sold at auction or accepted for return
by such Manufacturer or its agent and, in each case, the Depreciation Charges
ceased to accrue pursuant to such Repurchase Program, or (ii) if such Group II
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 II Repurchase Vehicle
was transferred in connection with such sale.

         "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 II Vehicles to any Person, whether at auction or otherwise; provided,
however, that Disposition Proceeds shall not include Termination Payments.

         "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.

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         "Distribution Date" means, with respect to the Series 2000-1 Note, the
25th day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, commencing March 27, 2000.

         "Eligible Manufacturer" means an Eligible Repurchase Manufacturer.

         "Eligible Receivable" means a legal, valid and binding receivable (a)
due from any Eligible Repurchase Manufacturer or Auction Dealer under an
Eligible Repurchase Program to TFFC, a Lessee or a creditor of TFFC or such
Lessee, (b) in respect of a Group II Repurchase Vehicle purchased by such
Eligible Repurchase Manufacturer or sold at an auction pursuant to an Eligible
Repurchase Program, which absent such purchase or sale, would have constituted
an Eligible Repurchase Vehicle with respect to which either (i) the Lien of the
Trustee was noted on the Certificate of Title at the time of purchase or
refinancing or (ii) such Group II Vehicle was (x) owned by and titled in the
name of a Lessee prior to the date such Person became a Lessee pursuant to
Section 23 of the Group II Master Lease and (y) refinanced by TFFC under the
Group II Master Lease pursuant to the initial Vehicle Order of such Lessee
thereunder, and (c) the right to payments in respect of which has been assigned
by the payee thereof to the Trustee for the benefit of the Secured Parties;
provided that no amount receivable from an Eligible Repurchase Manufacturer or
Auction Dealer under an Eligible Repurchase Program shall be an Eligible
Receivable if such amount remains unpaid more than ten (10) days after (i) the
Repurchase Program Payment Due Date in respect of such Group II Vehicle, in the
case of amounts receivable from an Eligible Repurchase Manufacturer or (ii) the
Disposition Date in respect of such Group II Vehicle, in the case of amounts
due from an Auction Dealer.

         "Eligible Repurchase Manufacturer" means each Manufacturer listed on
Exhibit B to this Supplement and any other Manufacturer that (a) has an
Eligible Repurchase Program, (b) has been approved by each Enhancement
Provider, if any, for the Group II Series of Notes and (c) with respect to
which Rating Agency Confirmation (for all Group II Series of Notes) the
addition of such Manufacturer as an Eligible 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 Repurchase Manufacturer.

         "Eligible Repurchase Program" means, at any time, a Repurchase Program
(as defined in this Supplement) offered by an Eligible 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 II
Vehicle, minus all Depreciation Charges accrued with respect to such Group II
Vehicle prior to the date that the Group II Vehicle is submitted for repurchase
or auction, minus Excess Mileage Charges, minus Excess Damage Charges and minus
any other charges specified in such Repurchase Program, (b) that cannot be
amended or terminated with respect to any Group II Vehicle after the purchase
of that Group II Vehicle, and (c) with respect to any Group II Repurchase
Vehicle of such Manufacturer that is leased or proposed to be leased under the
Group II Master Lease, the benefits of which Repurchase Program

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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 II 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 2000 and thereafter, if any Group II Series of Notes is then being rated
by Standard & Poor's or Moody's, TFFC shall have received (i) confirmation by
Standard & Poor's or Moody's, as the case may be, that the acquisition of Group
II Vehicles pursuant to such Repurchase Program will not result in the
reduction or withdrawal of any rating issued by Standard & Poor's or Moody's in
respect of such Series of Notes, and (ii) if there is a major change to a
Repurchase Program during a model year, Rating Agency Confirmation that the
acquisition of Group II Vehicles pursuant to such Repurchase Program will not
result in a reduction or withdrawal of any rating issued by each Rating Agency
in respect of such Series of Notes.

         "Eligible Repurchase Vehicle" means any automobile, van or light truck
(a) which at the time of purchase or financing by TFFC is eligible under an
Eligible Repurchase Program, (b) which is owned by TFFC (other than a
Refinanced Vehicle), and (c) with respect to which either (i) the Trustee is
noted as the first lienholder on the Certificate of Title therefor or (ii) the
Certificate of Title has been submitted to the appropriate state authorities
for such notation; 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 II Vehicle to be a perfected first Lien, then in order for a Group II
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.

         "Enhancement Percentage" means (for purposes of determining the Series
2000-1 Required Asset Amount) on any day, 15%.

         "Excess Amounts" has the meaning specified in Section 5.2(d)(vi) 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 II 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 II Vehicles under the
Repurchase Programs and (iii) all amounts payable to TFFC or a Lessee in
reimbursement for warranty work performed by TFFC or a Lessee on the Group II
Vehicles under the Repurchase Programs.

         "Finance Lease" has the meaning specified in Annex B to the Group II
Master Lease.

         "Financed Vehicle" means an Eligible Repurchase Vehicle that is (a)
acquired by a Lessee and financed by TFFC on or after the Lease Commencement
Date under the Finance Lease, (b) a Refinanced Vehicle, (c) a Texas Vehicle or
(d) a Hawaii Vehicle.

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

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

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

         "Group II Interest Collections" means on any date of determination (a)
the aggregate amount of Group II Collections in the Group II Collection Account
which represent (i) Monthly Variable Rent, Monthly Finance Rent or Monthly
Supplemental Rent accrued under the Group II Master Lease, or (ii) any amounts
earned on Permitted Investments in the Collection Account and the Group II
Collection Account which constitute Group I Collateral, and (b) amounts earned
on Permitted Investments in the Group II 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 II Invested Amount" means, as of any date of determination, an
amount equal to the aggregate of the Invested Amounts of all Group II Series of
Notes.

         "Group II Master Lease" means the Master Motor Vehicle Lease
Agreement, Group II, dated as of February 25, 2000, among TFFC, as lessor,
certain subsidiaries and affiliates of Budget and certain non-affiliates of
Budget, as lessees, and Budget, as guarantor, as amended, supplemented or
otherwise modified from time to time.

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

         "Group II Repurchase Vehicle" means a passenger automobile, van or
light truck that is leased under the Group II Master Lease and is subject to an
Eligible Repurchase Program at the time of its leasing under the Group II
Master Lease.

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

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

         "Group II Vehicles" means Group II Repurchase Vehicles.

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         "Hawaii Vehicle" means a Group II Vehicle acquired by TFFC on or after
the Lease Commencement Date for lease in the State of Hawaii.

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

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

         "Initial Fleet" means the Group II Vehicles owned and titled in the
name of TFFC or a Lessee on, and leased under the Group II Master Lease as of,
the Series 2000-1 Issuance Date.

         "Initial Invested Amount" means the aggregate initial principal amount
of the Series 2000-1 Note, which is $25,000,000.

         "Interest Reset Date" means the first day of the applicable Series
2000-1 Interest Period.

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

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

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

         "Lender" means Credit Suisse First Boston, New York Branch, as lender
under the Bridge Loan Agreement, and its successors and assigns in such
capacity.

         "Lessor-Owned Vehicle" means any Eligible 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 II Master Lease.

         "Losses" means, on any date of determination, the sum of all Series
2000-1 Repurchase Losses.

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

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

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

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         "Maximum Lease Commitment" means, on any date of determination, the
sum of (i) the maximum face amount of the Series 2000-1 Note, plus (ii) the
Series 2000-1 Available Subordinated Amount on such date, plus the aggregate
Net Book Values of all Group II Vehicles leased under the Group II Master Lease
as of such date which were acquired, financed, or refinanced with funds other
than proceeds of the Series 2000-1 Note or the Series 2000-1 Available
Subordinated Amount, plus (iv) any amounts held in the Budget Distribution
Account that TFFC commits on or prior to such date to invest in new Group II
Vehicles (as evidenced by an Officers' Certificate of TFFC) in accordance with
the terms of the Group II Master Lease and the Indenture.

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

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

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

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

         "Net Book Value" means, with respect to any Group II Vehicle being
leased under the Group II Master Lease (a) as of any date of determination
during the period from the Vehicle Lease Commencement Date for such Group II
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 II Vehicle), the
Capitalized Cost of such Group II Vehicle, (b) as of the Initial Determination
Date for such Group II Vehicle, (i) the Capitalized Cost for such Group II
Vehicle minus (ii) the aggregate Depreciation Charges accrued with respect to
such Group II Vehicle through the last day of the Related Month in which the
Vehicle Lease Commencement Date for such Group II Vehicle occurred, or (c) as
of any Determination Date after the Initial Determination Date, (i) the Net
Book Value of such Group II Vehicle as calculated on the immediately preceding
Determination Date minus (ii) the aggregate Depreciation Charges accrued with
respect to such Group II 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 II Vehicle shall be the Net
Book Value calculated for such Group II Vehicle on the most recent
Determination Date.

         "Note Interest Shortfall" with respect to the Series 2000-1 Note, has
the meaning specified in Section 5.4.

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

                                     -11-
<PAGE>   13

         "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 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 A-1 and from Moody's of at
least 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 A-1 by Standard & Poor's and at least P-1 by
Moody's; and (ix) any other instruments or securities approved in writing by
the Requisite Noteholders or, if any Group II 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 II Series of Notes
or the Commercial Paper Notes (if any).

         "Permitted Liens" is defined in Section 29.3 of the Group II 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 II Vehicles
leased by such Lessee divided by (ii) the aggregate Net Book Value of all Group
II Vehicles leased under the Group II Master Lease.

         "Rating Agencies" means, each nationally-recognized rating agency then
currently requested to rate the Series 2000-1 Note or, as the context requires,
any Group II Series of Notes or class thereof.

                                     -12-
<PAGE>   14

         "Rating Agency Confirmation" means on any date written confirmation by
each Rating Agency that the proposed action, amendment, waiver or modification
will not result in a downgrading or withdrawal of the then current rating of
the Series 2000-1 Note (or, if the context requires, any Group II Series of
Notes or any class thereof); provided, however, that if no Rating Agency is
then currently rating the Series 2000-1 Note (or, if the context requires, any
Group II Series of Notes) at the request of the Issuer or Budget, the written
approval of such proposed action, amendment, waiver or modification by the
Requisite Noteholders shall constitute Rating Agency Confirmation for all
purposes hereof.

         "Recoveries" means, for any Related Month, the sum of Series 2000-1
Repurchase Recoveries.

         "Refinanced Vehicles" has the meaning specified in Section 2.1 of the
Group II Master Lease.

         "Related Documents" means the collective reference to the documents
referred to in clause (i) of the definition of Related Documents in Schedule 1
to the Base Indenture, the Group II Master Lease and the Bridge Loan Agreement.

         "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 II 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 II
Repurchase Vehicle disposed of pursuant to the terms of the related Repurchase
Program, the thirtieth (30th) day after the Disposition Date for such Group II
Vehicle.

         "Required Asset Amount" means with respect to the Series 2000-1 Note,
at any date of determination, the sum of (i) the Invested Amounts for all Group
II Series of Notes that do not provide for Enhancement in the form of
overcollateralization plus (ii) with respect to all Group II Series of Notes
that provide for Enhancement in the form of overcollateralization, the sum of
(a) the Invested Amounts for all such Series of Notes, plus (b) the available
subordinated amounts required to be maintained as part of the minimum
enhancement amount for all such Series of Notes.

         "Requisite Noteholders" means Series 2000-1 Noteholders holding more
than 50% of the Series 2000-1 Invested Amount.

         "Series 2000-1 Accrued Interest Account" has the meaning specified in
Section 5.1(b) of this Supplement.

                                     -13-
<PAGE>   15

         "Series 2000-1 Aggregate Asset Amount" means, with respect to the
Series 2000-1 Note, for any date of determination, an amount, rounded to the
nearest $100,000, equal to the sum of (a) the Series 2000-1 Invested Percentage
of the Aggregate Group II Repurchase Asset Amount, plus (b) cash and Permitted
Investments on deposit in the Series 2000-1 Collection Account and on deposit
in the Collection Account and Group II Collection Account allocable to the
Series 2000-1 Note.

         "Refinancing Schedule" has the meaning set forth in Section 2.1 of the
Group II Lease.

         "Series 2000-1 Asset Amount Deficiency" with respect to the Series
2000-1 Note will occur if, at any time, the Series 2000-1 Required Asset Amount
exceeds the Series 2000-1 Aggregate Asset Amount.

         "Series 2000-1 Available Subordinated Amount" means for any date of
determination, the excess of (a) the sum of (i) the Series 2000-1 Available
Subordinated Amount for the preceding Determination Date (or, in the case of
the initial Determination Date, as of the Series 2000-1 Issuance Date), (ii)
the Series 2000-1 Available Subordinated Amount Incremental Recoveries for the
Related Month and (iii) any other additional amounts contributed by TFFC or
Budget to the Series 2000-1 Collection Account or otherwise for allocation to
the Series 2000-1 Available Subordinated Amount since the preceding
Determination Date (or, in the case of the first Determination Date, since the
Series 2000-1 Issuance Date) pursuant to Section 5.2(d)(iv), over (b) the sum
of (i) the Series 2000-1 Available Subordinated Amount Incremental Losses for
the Related Month and (ii) any amounts withdrawn from the Series 2000-1
Collection Account and allocated to the Budget Distribution Account; provided,
however, that the Series 2000-1 Available Subordinated Amount for the period
from the Series 2000-1 Issuance Date to the first Determination Date shall be
$3,750,000.

         "Series 2000-1 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 2000-1 Available
Subordinated Amount pursuant to Section 5.2(c) hereof.

         "Series 2000-1 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 2000-1
Available Subordinated Amount pursuant to Section 5.2(c) hereof.

         "Series 2000-1 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 Bridge Loan Agreement
or the other Related Documents which have accrued with respect to the Series
2000-1 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 2000-1 Interest Period (however
denominated) and arise under the Bridge Loan Agreement, that have accrued
during the related Series

                                     -14-
<PAGE>   16

2000-1 Interest Period, plus (ii) without duplication, all amounts payable by
the Lessees pursuant to Section 14 of the Group II Master Lease which have
accrued during the Related Month.

         "Series 2000-1 Collateral" has the meaning specified in Section 3.1(b)
of this Supplement.

         "Series 2000-1 Collections" means the sum of (a) the Series 2000-1
Invested Percentage of all Group II Collections constituting Group II Principal
Collections and Recoveries and (b) all Series 2000-1 Interest Collections.

         "Series 2000-1 Collection Account" is defined in Section 5.1(a) of
this Supplement.

         "Series 2000-1 Credit Support Amount" means, for any date of
determination, the Series 2000-1 Available Subordinated Amount on such date.

         "Series 2000-1 Credit Support Deficiency" means, with respect to any
date of determination, either (a) the amount, if any, by which the Series
2000-1 Minimum Credit Support Amount exceeds the Series 2000-1 Credit Support
Amount or (b) as the context requires, that the Series 2000-1 Minimum Credit
Support Amount exceeds the Series 2000-1 Credit Support Amount.

         "Series 2000-1 Distribution Account" has the meaning specified in
Section 5.7(a) of this Supplement.

         "Series 2000-1 Interest Allocation" has the meaning specified in
Section 5.2(a)(i) of this Supplement.

         "Series 2000-1 Interest Collections" means on any date of
determination, the Series 2000-1 Invested Percentage (as of such date) of the
Group II Interest Collections.

         "Series 2000-1 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 2000-1 Interest Period shall be from
the Series 2000-1 Issuance Date to but excluding the initial Distribution Date
with respect to the Series 2000-1 Notes.

         "Series 2000-1 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 2000-1 Noteholders and Decreases on or
prior to such date minus (c) all Losses allocated to the Series 2000-1 Invested
Amount on or prior to such date plus (d) all Recoveries allocated to the Series
2000-1 Invested Amount on or prior to such date plus (e) all Increases on or
prior to such date.

                                     -15-
<PAGE>   17

         "Series 2000-1 Invested Percentage" means, on any date of
determination:

                  (i) when used with respect to Principal Collections during
         the Series 2000-1 Revolving Period and when used with respect to
         Losses, Recoveries, cash on deposit in the 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 2000-1 Invested Amount and (y) the Series 2000-1 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 2000-1 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 2000-1 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 II 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 II Series of Notes that provide for credit
         enhancement in the form of overcollateralization); and

                  (ii) when used with respect to Principal Collections, during
         the Series 2000-1 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 2000-1 Invested Amount and (y) the Series 2000-1
         Available Subordinated Amount, in each case as of the end of the
         Series 2000-1 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 II 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 II
         Series of Notes that provide for credit enhancement in the form of
         overcollateralization).

                  (iii) when used with respect to Group II Interest
         Collections, the percentage equivalent of a fraction the numerator of
         which shall be the Accrued Amounts with respect to the Series 2000-1
         Notes on such date of determination and the denominator of which shall
         be the aggregate Accrued Amounts with respect to the Group II Series
         of Notes on such date of determination.

         "Series 2000-1 Investor Monthly Servicing Fee" means, on any
Distribution Date, one-twelfth of 1.0% of the Series 2000-1 Invested Amount as
of the preceding Distribution Date (or, in the case of the initial Distribution
Date, the Series 2000-1 Issuance Date).

         "Series 2000-1 Issuance Date" means February 25, 2000.

                                     -16-
<PAGE>   18

         "Series 2000-1 Limited Liquidation Event of Default" means, so long as
such event or condition continues, (a) any event or condition of the type
specified in Section 6(a) of this Supplement that continues for thirty (30)
days (without double counting the one (1) Business Day cure period provided for
in said Section 6(a)); provided, however, that such event or condition shall
not constitute a Series 2000-1 Limited Liquidation Event of Default if (i)
within such thirty (30) day period, TFFC or Budget shall have contributed a
portion of the Budget Interest to the Series 2000-1 Available Subordinated
Amount sufficient to cure the Series 2000-1 Credit Support Deficiency and (ii)
the Requisite Noteholders shall have consented to such cure in writing or (b)
all principal and interest of the Series 2000-1 Note is not paid in full on or
before the Series 2000-1 Termination Date.

         "Series 2000-1 Maximum Invested Amount" shall have the meaning set
forth in Section 4.1 hereof.

         "Series 2000-1 Minimum Credit Support Amount" means, as of any date,
with respect to the Series 2000-1 Note on any day, 15% of the product of a
dollar amount equal to (1) the Aggregate Principal Balance of the Series 2000-1
Notes as of such date, minus (2) the aggregate amount of cash and Permitted
Investments in the Series 2000-1 Collection Account on such date.

         "Series 2000-1 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 2000-1
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 2000-1 Noteholder" means a Person in whose name the Series
2000-1 Note is registered in the Note Register.

         "Series 2000-1 Note Interest" means, with respect to any Distribution
Date, the sum of the Daily Interest Amounts for each day in the related Series
2000-1 Interest Period, plus all previously accrued and unpaid Series 2000-1
Note Interest (together with interest on such unpaid amounts, to the extent
permitted by law, at the Series 2000-1 Note Rate), plus all accrued Series
2000-1 Carrying Charges due to the Series 2000-1 Noteholders in respect of such
Series 2000-1 Interest Period (or any prior Series 2000-1 Interest Period) and
unpaid as of such Distribution Date.

         "Series 2000-1 Note Rate" has the meaning specified in the Bridge Loan
Agreement. The Lender will notify the Trustee and the Servicer in writing on
each Determination Date regarding the Series 2000-1 Note Rate for the related
Series 2000-1 Interest Period.

                                     -17-
<PAGE>   19

         "Series 2000-1 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. A definitive Series 2000-1
Note shall have such insertions and deletions as are necessary or appropriate
to give effect to the provisions of Section 2.18 of the Base Indenture.

         "Series 2000-1 Principal Allocation" shall mean, on any date, the
amount allocated to Series 2000-1 Collections pursuant to clause (a) of the
definition thereof.

         "Series 2000-1 Rapid Amortization Period" means the period beginning
at 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 2000-1 Note and ending upon the earlier to occur of (i) the date on
which the Series 2000-1 Note is fully paid and (ii) the termination of the
Indenture.

         "Series 2000-1 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 and Monthly Supplement Payments that have become
due to the Lessor under the Group II Master Lease in respect of Group 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
II 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
amounts owed by each Manufacturer under an Eligible Repurchase Program with
respect to Group II Repurchase Vehicles that are Lessor-Owned Vehicles or with
respect to Eligible Receivables, to the extent, in either case, that any such
amount remains unpaid after 90 days from the Turnback Date for the related
Group II Vehicle, but only if such 90-day period expires during such Related
Month and (c) the amounts owed by each Auction Dealer in connection with an
Eligible Repurchase Program with respect to Group II Repurchase Vehicles that
are Lessor-Owned Vehicles, to the extent that any such amount remains unpaid
more than 10 days after the sale of the related Vehicle, but only if such
10-day period expires during such Related Month.

         "Series 2000-1 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
Collection Account) from any source (other than Enhancement) in respect of
Series 2000-1 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 II Vehicles.

         "Series 2000-1 Required Asset Amount" means, at any time, the quotient
of (a) the Aggregate Principal Balance of the Series 2000-1 Notes at such time
divided by (b) an amount equal to (i) one hundred percent minus (ii) the
Enhancement Percentage at such time.

                                     -18-
<PAGE>   20

         "Series 2000-1 Revolving Period" means the period from and including
the Series 2000-1 Issuance Date to the commencement of the Series 2000-1 Rapid
Amortization Period.

         "Series 2000-1 Termination Date" means the June 2001 Distribution Date.

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

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

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

         "Texas Vehicle" means a Group II Vehicle acquired by TFFC on or after
the Lease Commencement Date for lease in the State of Texas.

         "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 II TFFC Agreements.

         "TFFC Obligations" means all principal and interest, at any time and
from time to time, owing by TFFC on the Series 2000-1 Note and all costs, fees
and expenses payable by, or obligations of, TFFC under the Indenture and the
Related Documents.

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

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

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

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

                                     -19-
<PAGE>   21
                                                                   EXHIBIT 4.31

                                   ARTICLE 3

                          SECURITY; REPORTS; COVENANT

         Section 3.1 Grant of Security Interest.

         (a) To secure the Group II 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 II Noteholders and the holder of the
Budget Interest (the Group II 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 II Collateral"):

                  (i) the rights of TFFC under the Group II Master Lease
         (including rights against any guarantor of obligations of the Lessees
         thereunder) and any other agreements relating to the Group II Vehicles
         to which TFFC is a party other than the Repurchase Programs
         (collectively, the "Group II 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 II TFFC Agreements,
         whether payable as rent, guaranty payments, fees, expenses, costs,
         indemnities, insurance recoveries, damages for the breach of any of
         the Group II 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 II TFFC Agreements (whether arising pursuant
         to the terms of such Group II TFFC Agreements or otherwise available
         to TFFC at law or in equity), including the right to enforce any of
         the Group II 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 II
         TFFC Agreements or the obligations of any party thereunder;

                  (ii) (A) all Group II Repurchase Vehicles owned by TFFC or
         the Lessees as of the Series 2000-1 Issuance Date and all Group II
         Repurchase 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 II 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 II 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 II Master Lease;

                                     -20-
<PAGE>   22

                  (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 II Repurchase Vehicles purchased from the
         Manufacturers under or in connection with the Repurchase Programs
         whether payable as Group II 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 Collection Account and the Group II Collection
         Account, (B) all funds on deposit therein allocable to Group II
         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 II Collection Account or the funds on deposit therein
         allocable to Group II 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 II Vehicles in the Collection Account or the
         Group II 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 II 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
2000-1 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 2000-1 Noteholders (but not any other Series of Notes), and hereby
grants to the Trustee for the benefit of the Series 2000-1 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 2000-1 Collateral"):

                  (i) the Series 2000-1 Collection Account and the Series
         2000-1 Distribution Account;

                  (ii) all funds on deposit in the Series 2000-1 Collection
         Account and the Series 2000-1 Distribution Account from time to time;

                                     -21-
<PAGE>   23

                  (iii) all certificates and instruments, if any, representing
         or evidencing any or all of the Series 2000-1 Collection Account and
         the Series 2000-1 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 2000-1 Collection Account or the
         Series 2000-1 Distribution Account; and

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

         (c) The Trustee, on behalf of the Group II Noteholders or the Series
2000-1 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 2000-1 Noteholders or, as applicable, the Group II Noteholders may be
adequately and effectively protected. The Group II Collateral shall secure the
Notes included in the Group II Series of Notes. The Series 2000-1 Collateral
shall secure the Series 2000-1 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 2000-1 Noteholder a Monthly Servicer's Certificate and
a Fleet Report with respect to the Group II Collateral.

                                   ARTICLE 4

                INITIAL ISSUANCE AND INCREASES AND DECREASES OF
              SERIES 2000-1 INVESTED AMOUNT OF SERIES 2000-1 NOTE

         Section 4.1. Issuance in Definitive Form. Pursuant to Section 2.18 of
the Base Indenture, upon request by the Lender, TFFC hereby consents to the
issuance of the Series 2000-1 Note in the form of a Definitive Note. The Series
2000-1 Note shall be sold to the Lender 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 $270,000,000 (the "Series 2000-1
Maximum Invested Amount").

         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 2000-1 Issuance Date,
TFFC may issue the Series 2000-1 Note in the stated amount described in

                                     -22-
<PAGE>   24

Section 4.1, the initial aggregate principal amounts of which will be equal to
the Initial Invested Amount. Such Series 2000-1 Note shall be issued to the
Lender. On the Series 2000-1 Issuance Date and thereafter on each Increase Date
during the Revolving Period, TFFC may, upon request by Budget under the Group
II Master Lease and upon not less than one Business Day's prior written notice
by TFFC to the Lender (such notice specifying the applicable Increase Date),
increase the Series 2000-1 Invested Amount (each such increase referred to as
an "Increase") by issuing, at par, additional Series 2000-1 Invested Amount of
the Series 2000-1 Note in amounts that satisfy the following requirements: (i)
the portion of the Increase represented by additional Series 2000-1 Invested
Amount shall be such that the Series 2000-1 Credit Support Amount shall at
least equal the Series 2000-1 Minimum Credit Support Amount after giving effect
to such Increase in the Series 2000-1 Invested Amount and the application of
the proceeds thereof to leasing Group II Vehicles; and (ii) no Series 2000-1
Asset Amount Deficiency will result from such Increase. 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 2000-1 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.

         (b) The Series 2000-1 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 2000-1
         Invested Amount shall not exceed the Series 2000-1 Maximum Invested
         Amount;

                  (iii) There shall not then exist, nor shall such Increase
         result in the occurrence of, (x) an Amortization Event, a Liquidation
         Event of Default or a Series 2000-1 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, a Liquidation Event of Default or a Series 2000-1
         Limited Liquidation Event of Default;

                  (iv)  All conditions precedent (1) to the acquisition of
         additional Group II Vehicles under the Group II Master Lease and (2)
         to the making of Advances under the Bridge Loan 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 II Vehicle purchased by it with the
         proceeds of the Series 2000-1 Note, free and clear of all Liens and
         encumbrances, other than any Permitted Liens. Each Repurchase Program
         shall be in full force

                                     -23-
<PAGE>   25

         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 2000-1 Noteholders, a first
         priority security interest in all Group II Vehicles now or hereafter
         purchased, financed or refinanced by TFFC with the proceeds of the
         Series 2000-1 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
         II Master Lease, the Group II Collateral and the Series 2000-1
         Collateral;

                  (viii) The Trustee shall have received a copy of each
         Repurchase Program under which Group II 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 2000-1 Issuance
         Date, and duly executed by an Authorized Officer of TFFC, certifying
         that each such copy is true, correct and complete as of the Series
         2000-1 Issuance Date;

                  (ix)   All representations and warranties set forth in Article
         7 of the Base Indenture and in Section 27 of the Group II 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 2000-1 Available Subordinated Amount
         and the Trustee shall have confirmed receipt of such written
         calculation.

         Section 4.3 Decreases.

         (a) Mandatory Decreases. Whenever the Series 2000-1 Credit Support
Amount is less than the Series 2000-1 Minimum Credit Support Amount, then, on
the Distribution Date immediately following discovery of such deficiency, TFFC
shall decrease the Series 2000-1 Invested Amount of the Series 2000-1 Note by
the amount necessary, so that after giving effect to all Decreases of the
Series 2000-1 Invested Amount on such Distribution Date, no such deficiency
shall exist (each reduction of the Series 2000-1 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 at least one Business Day's prior
irrevocable notice to the Lender and the Trustee in writing, TFFC may
voluntarily prepay, on any Distribution Date during the Series 2000-1 Revolving
Period, all or a portion of the Series 2000-1 Invested Amount in accordance
with the procedures set forth herein (including, without limitation, in Section
5.5(c) hereof) and, as

                                     -24-
<PAGE>   26

applicable, in the Bridge Loan Agreement (each reduction of the Series 2000-1
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 2000-1 Credit Support Amount after giving
effect to such Decrease is not less than the Series 2000-1 Minimum Credit
Support Amount. Each such Decrease shall be in a minimum principal amount of
$100,000.

         (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 2000-1
Collection Account and available for distribution to Series 2000-1 Noteholders
in respect of principal on the Series 2000-1 Note on the date specified in the
related notice of Decrease referred to in clauses (a) and (b) above, as
applicable.

                                   ARTICLE 5

                           SERIES 2000-1 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
2000-1 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 2000-1 Note, clause (d) of Section 5.2 of the Base Indenture shall
be modified, as it applies to the Series 2000-1 Note, as permitted by Section
12.1(f) of the Base Indenture and shall read as follows:

         (d) Sharing Collections. To the extent that Principal Collections that
are allocated to the Series 2000-1 Note on a Distribution Date are not needed
to make payments of principal to Series 2000-1 Noteholders or required to be
deposited in the Series 2000-1 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 II Series of Notes. Any such reallocation will not result in a
reduction of the Aggregate Principal Balance or in the Invested Amount of the
Series 2000-1 Note.

         In addition, for purposes of Section 5.2(a) of the Base Indenture, the
Servicer, in its capacity as such under the Group II Master Lease, shall (to
the extent practicable) cause all Collections allocable to Group II Collateral
in accordance with the Indenture to be paid directly into the Collection
Account and all Collections allocable to the Series 2000-1 Collateral to be
paid directly into the Series 2000-1 Collection Account.

                                     -25-
<PAGE>   27

         Article 5 of the Base Indenture (except for Sections 5.1 through 5.5
thereof, 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 2000-1 Note:

         Section 5.1 Establishment of the Group II Collection Account, Series
2000-1 Collection Account and Series 2000-1 Accrued Interest 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 II
Series of Notes (the "Group II Collection Account"). The Trustee will also
establish and maintain a segregated trust account for the benefit of the Series
2000-1 Noteholders (the "Series 2000-1 Collection Account"). Amounts on deposit
in the Group II Collection Account and the Series 2000-1 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 an administrative
sub-account within the Series 2000-1 Collection Account (such sub-account, the
"Series 2000-1 Accrued Interest Account").

         (c) All Group II Collections shall initially be deposited into the
Collection Account and, on each Business Day, shall be allocated to and
deposited in the Group II Collection Account.

         (d) All Group II Collections that are deposited on any Business Day in
the Group II Collection Account and that are Series 2000-1 Collections shall on
each such Business Day be allocated to and deposited in the Series 2000-1
Collection Account. All amounts received in respect of the Series 2000-1
Collateral shall be allocated to and deposited in the Series 2000-1 Collection
Account.

         (e) Any amounts in the Group II Collection Account not allocated to
the Series 2000-1 Collection Account or another series-specific collection
account under the supplements for the other Group II 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 II Collections
that are Principal Collections received on such date, minus (y) any amounts,
other than Servicing Fees, which have been withheld by the Master 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; and

         Section 5.2 Allocations with Respect to the Series 2000-1 Note. The
proceeds from the sale of the Series 2000-1 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 in the
Series 2000-1 Collection Account. On each Business Day on which Collections or
the proceeds of any Increase are deposited into the Group II Collection Account
and allocated to the Series 2000-1 Collection Account or deposited in the
Series 2000-1 Collection Account (each such date, a "Deposit

                                     -26-
<PAGE>   28

Date"), the Servicer will direct the Trustee in writing to allocate all amounts
allocated to or deposited in the Series 2000-1 Collection Account in accordance
with the provisions of this Section 5.2.

         (a) Allocations During the Revolving Period. During the Series 2000-1
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 2000-1 Collection Account as set forth below:

                  (i)   allocate to the Series 2000-1 Accrued Interest Account,
         from the Series 2000-1 Interest Collections received on such date, an
         amount, as stated in such Servicer direction, equal to the Series
         2000-1 Note Interest and all other Series 2000-1 Carrying Charges
         accrued and unpaid as of such date less any funds on deposit on such
         date in the Series 2000-1 Accrued Interest Account (the "Series 2000-1
         Interest Allocation"); provided, however, that if on any Deposit Date
         the Series 2000-1 Interest Collections allocated to the Series 2000-1
         Collection Account on such date exceed the Series 2000-1 Interest
         Allocation as of such date, then the amount of such excess shall be
         retained on deposit in the Series 2000-1 Collection Account and shall
         be available on such Deposit Date for application in accordance with
         clauses (ii) through (v) below;

                  (ii)  to the extent a Mandatory Decrease is required under
         Section 4.3(a), allocate to the Series 2000-1 Distribution Account for
         the payment of the Series 2000-1 Invested Amount, the amount, as
         stated in such Servicer direction, necessary for such Mandatory
         Decrease;

                  (iii) 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 II Master Lease;

                  (iv)  allocate to the Series 2000-1 Distribution Account the
         amount, as stated in such Servicer direction, of any Voluntary
         Decreases in the Series 2000-1 Invested Amount to be made in
         accordance with Section 4.3(b) hereof;

                  (v)   the amounts remaining in the Series 2000-1 Collection
         Account on such Deposit Date after application pursuant to clauses
         (i), (ii), (iii) and (iv) 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.

         (b) Allocations During the Series 2000-1 Rapid Amortization Period.
During the Series 2000-1 Rapid Amortization Period, the Servicer will direct
the Trustee in writing to allocate all Series 2000-1 Collections prior to 1:00
p.m. (New York City time) on any Deposit Date, as set forth below:

                                     -27-
<PAGE>   29

                  (i)  allocate to the Series 2000-1 Accrued Interest Account
         or retain on deposit in the Series 2000-1 Collection Account for
         application in accordance with clause (ii) below, as and to the extent
         provided in Section 5.2(a)(i) above;

                  (ii) allocate to the Series 2000-1 Collection Account an
         amount equal to the Series 2000-1 Principal Allocation for such day,
         which amount shall be used to make principal payments in respect of
         the Series 2000-1 Note; and

         (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 2000-1 Note an amount, as stated in such Servicer direction,
         equal to the Series 2000-1 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 2000-1 Available
                  Subordinated Amount by the amount of such Losses until the
                  Series 2000-1 Available Subordinated Amount has been reduced
                  to zero; and

                           (ii) Second, any such Losses remaining after making
                  the allocations, withdrawals and claims under clause (i)
                  above will be allocated, as stated in such Servicer
                  direction, to reduce the Series 2000-1 Invested Amount.

                  (y) Monthly, for each Distribution Date, allocate to the
         Series 2000-1 Note an amount, as stated in such Servicer direction,
         equal to the Series 2000-1 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 2000-1 Invested Amount, to the extent
                  the Series 2000-1 Invested Amount has been reduced pursuant
                  to Section 5.2(c)(x)(ii) above;

                           (ii)  Second, allocate all remaining Recoveries
                  after making the allocations in clause (i) above up to the
                  amount, as stated in such Servicer direction, necessary to
                  reinstate the Series 2000-1 Available Subordinated Amount to
                  the Series 2000-1 Required Subordinated Amount; and

                           (iii) Third, the remainder of such Recoveries after
                  making the allocations in (i) and (ii) above shall constitute
                  profits of TFFC.

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

                                     -28-
<PAGE>   30

                  (i)    provided the Series 2000-1 Rapid Amortization Period
         has not commenced, amounts retained in the Series 2000-1 Collection
         Account that are not required to make payments under the Series 2000-1
         Note pursuant hereto may, as and to the extent permitted in the
         related Supplements, be used to pay the principal amount of other
         Group II Series of Notes that are then in amortization and, after such
         payment, any remaining funds may, at TFFC's option, be (A) used to
         finance, refinance or acquire Group II Vehicles, to the extent
         Eligible Vehicles have been requested by any of the Lessees under the
         Group II Master Lease or (B) transferred, on any Distribution Date, 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 2000-1 Credit Support Deficiency or
         Series 2000-1 Asset Amount Deficiency exists or would result
         therefrom; provided, however, that funds remaining after the
         application of such funds to the payment of the principal amount of
         other Group II Series of Notes that are in amortization and to the
         financing, refinancing or acquisition of Group II Vehicles may be
         transferred to the Budget Distribution Account on a day other than a
         Distribution Date if 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. Funds in the Team
         Distribution Account shall, at the option of TFFC, be available to
         finance, refinance or acquire Group II Vehicles, to the extent
         Eligible Vehicles have been requested by any of the Lessees under the
         Group II Master Lease, or for distribution to the Budget
         Interestholder (including any advances made under the Subordinated
         Note);

                  (ii)   in the event that the Servicer is not Budget or an
         Affiliate of Budget or if a Servicer Default has occurred and is
         continuing, 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) any amounts withheld by the Servicer and not deposited
         in the Collection Account pursuant to Section 5.2(c) of the Base
         Indenture shall be deemed to be deposited in the Collection Account
         and allocated to the Group II Collection Account and the Series 2000-1
         Collection Account, as applicable, on the date such amounts are
         withheld for purposes of determining the amounts to be allocated
         pursuant to this Section 5.2;

                   (iv)  TFFC may, from time to time in its sole discretion,
         increase the Series 2000-1 Available Subordinated Amount by (A) (x)
         transferring funds to the Series 2000-1 Collection Account or (y)
         allocating to the Series 2000-1 Available Subordinated Amount Eligible
         Vehicles theretofore allocated to the Budget Interest, 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 2000-1 Available Subordinated

                                     -29-
<PAGE>   31

         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 (and an Opinion of Counsel to
         the same effect); provided, however, TFFC shall have no obligation to
         so increase the Series 2000-1 Available Subordinated Amount;

                  (v) in the event that the Series 2000-1 Credit Support Amount
         is reduced to less than the Series 2000-1 Minimum Credit Support
         Amount, an Amortization Event and a Series 2000-1 Limited Liquidation
         Event of Default shall be deemed to have occurred with respect to the
         Series 2000-1 Note only if, after any applicable grace period, either
         the Trustee, by written notice to the Issuer, or the Required
         Noteholders, by written notice to the Issuer and the Trustee, declare
         that an Amortization Event has occurred; provided, however, (i) the
         Issuer may prevent an Amortization Event from occurring if, within one
         (1) Business Day after the occurrence of such Series 2000-1 Credit
         Support Deficiency, the Series 2000-1 Available Subordinated Amount is
         increased by an amount sufficient, in the aggregate, to eliminate such
         Series 2000-1 Credit Support Deficiency; provided, however, the amount
         of such contribution (together with the sum of the amounts of all
         prior contributions) shall not exceed the Series 2000-1 Available
         Subordinated Amount Maximum Increase, and (ii) the Issuer may prevent
         a Series 2000-1 Limited Liquidation Event of Default from occurring if
         within the thirty (30) day period after the occurrence of such Series
         2000-1 Credit Support Deficiency, (x) the Series 2000-1 Available
         Subordinated Amount is increased by an amount sufficient to eliminate
         such Series 2000-1 Credit Support Deficiency and (y) the Rating Agency
         Confirmation condition is satisfied;

                  (vi) if, on any Distribution Date during the Series 2000-1
         Revolving Period, a Mandatory Decrease shall be required under Section
         4.3(a) of this Supplement and the amounts allocated to the Series
         2000-1 Invested Amount under Section 5.2(a)(ii) 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 II 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 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 II Series of Notes (such
         amounts as are set forth in clauses (i) and (ii) of this subparagraph
         (G) being referred to herein as "Excess Amounts") shall, in each such
         case, be deposited into the Series 2000-1 Distribution Account as
         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 2000-1 Invested Amount; and

                                     -30-
<PAGE>   32

                  (vii) if, on any Distribution Date during the Series 2000-1
         Rapid Amortization Period, the Monthly Principal Allocation under
         Section 5.2(b)(ii) is insufficient to reduce the Series 2000-1
         Invested Amount to zero, then, in such event, any funds constituting
         Excess Amounts shall, in each such case, be deposited into the Series
         2000-1 Distribution Account as 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 2000-1 Invested
         Amount.

         Section 5.3 Payments from the Series 2000-1 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 2000-1 Accrued Interest Account pursuant to Sections 5.3(a), (b) and
(c) below (after giving effect to the allocations on 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
2000-1 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 2000-1 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 2000-1 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 2000-1
Investor Monthly Servicing Fee (and any Series 2000-1 Monthly Supplemental
Servicing Fee) accrued since the preceding Distribution Date, plus (ii) all
accrued and unpaid Series 2000-1 Investor Monthly Servicing Fees (and any
Series 2000-1 Monthly Supplemental Servicing Fees) in respect of previous
periods, minus (iii) the amount of any Series 2000-1 Investor Monthly Servicing
Fees (and Series 2000-1 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 2000-1 Accrued Interest Account and remit such amount to
the Servicer.

         (b) Note Interest with respect to the Series 2000-1 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 2000-1
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 2000-1 Note Interest and Series 2000-1
Carrying Charges. On the Distribution Date related to such Determination Date,
the Trustee shall withdraw from the Series 2000-1 Accrued Interest Account the
amount on deposit therein available for the payment of Series 2000-1 Note
Interest and Series 2000-1 Carrying Charges and deposit such amount in the
Series 2000-1 Distribution Account.

                                     -31-
<PAGE>   33

                  (ii) On any Business Day during a Series 2000-1 Interest
         Period (each such day, an "Additional Distribution Date"), the
         Servicer may instruct the Trustee in writing to withdraw from the
         Series 2000-1 Accrued Interest Account, and on such Additional
         Distribution Date the Trustee, acting in accordance with such
         instructions, shall withdraw from the Series 2000-1 Accrued Interest
         Account, as directed in writing by the Servicer, all or a portion of
         the Series 2000-1 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
         Interest Collections processed since the preceding Distribution Date
         and allocated to the Series 2000-1 Noteholders (less any portion
         thereof previously paid to the Series 2000-1 Noteholders during such
         period pursuant to this Section 5.2(e)) and shall pay such amounts to
         the Series 2000-1 Noteholders in accordance with Section 6.1 of the
         Base Indenture.

         (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(a) and (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 2000-1
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
2000-1 Investor Monthly Servicing Fee (and any Series 2000-1 Monthly
Supplemental Servicing Fee) accrued since the preceding Distribution Date, plus
(ii) all accrued and unpaid Series 2000-1 Investor Monthly Servicing Fees (and
any Series 2000-1 Monthly Supplemental Servicing Fees) in respect of previous
periods, minus (iii) the amount of any Series 2000-1 Investor Monthly Servicing
Fees (and Series 2000-1 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 2000-1 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
2000-1 Noteholders from the Series 2000-1 Distribution Account the amount
deposited in the Series 2000-1 Distribution Account for the payment of Series
2000-1 Note Interest pursuant to Section 5.3(b) of this Supplement and, to the
extent that such amount is insufficient to pay all Series 2000-1 Note Interest
and Series 2000-1 Carrying Charges payable on such Distribution Date (the
amount of such insufficiency, a "Note Interest Shortfall"), the Servicer shall
instruct the Trustee in writing to withdraw from the Series 2000-1 Collection
Account the lesser of (i) the amount on deposit in the Series 2000-1 Collection
Account and (ii) the amount of such Note Interest Shortfall. Subject to
Sections 2.15(c) and 6.1(b) of the Base Indenture, all payments of interest and
Series 2000-1 Carrying Charges, and all payments of principal pursuant to
Section 5.5 hereof, made to the Series 2000-1 Noteholder shall be made by wire
transfer to such account as the Series 2000-1 Noteholder of record on the
preceding Record Date shall specify from time to time by notice to the Issuer
and the Paying Agent.

                                     -32-
<PAGE>   34

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

         (a) Commencing on the first Determination Date after the commencement
of the Series 2000-1 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 2000-1 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 2000-1 Rapid Amortization Period, to the extent that the Monthly
Principal Allocation is insufficient to pay all principal due in respect of the
Series 2000-1 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 2000-1 Collection Account the lesser of (i) the
amount on deposit in the Series 2000-1 Collection Account and (ii) the amount
of such Principal Shortfall and (b) to the extent of any remaining Principal
Shortfall, to apply to the payment thereof Principal Collections with respect
to any other Group II 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 2000-1 Note (up to the amount of such Principal
Shortfall remaining). The entire principal amount of the Series 2000-1 Note
shall be due and payable on the Series 2000-1 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 2000-1 Noteholders the amount
deposited in the Series 2000-1 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)(ii), 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)(iv), the Paying Agent shall pay to the Series 2000-1
Noteholders pursuant to the written instruction of the Servicer the amount
deposited in the Series 2000-1 Distribution Account for the payment of
principal pursuant to such Section 5.2(a)(ii) or 5.2(a)(iv), 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 II Collection
Account 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. On the related Distribution Date, the Trustee or Paying Agent shall,
in accordance with the Servicer's instructions, withdraw such funds from the
Group II Collection Account, as applicable, and deposit them into the Budget
Distribution Account.

                                     -33-
<PAGE>   35

         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 II Collection Account, the Series 2000-1 Collection Account or the
Series 2000-1 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 2000-1 Distribution Account.

         (a) Establishment of the Series 2000-1 Distribution Account. The
Trustee shall establish and maintain in the name of the Trustee for the benefit
of the Series 2000-1 Noteholders, or cause to be established and maintained, an
account (the "Series 2000-1 Distribution Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Series 2000-1 Noteholders. The Series 2000-1 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 2000-1 Distribution Account. If the Series 2000-1
Distribution Account is not maintained in accordance with the previous
sentence, the Servicer shall establish a new Series 2000-1 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 2000-1 Distribution Account into the new Series
2000-1 Distribution Account. Initially, the Series 2000-1 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
2000-1 Distribution Account and in all proceeds thereof. The Series 2000-1
Distribution Account Collateral shall be under the sole dominion and control of
the Trustee for the benefit of the Series 2000-1 Noteholders.

         (b) Administration of the Series 2000-1 Distribution Account. The
Servicer shall instruct the institution maintaining the Series 2000-1
Distribution Account in writing to invest funds on deposit in the Series 2000-1
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 2000-1 Distribution Account
is held with the Paying Agent, then such investment may mature on 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 2000-1 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.

                                     -34-
<PAGE>   36

         (c) Earnings from Series 2000-1 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 2000-1 Distribution Account. All interest and earnings (net of
losses and investment expenses) on funds on deposit in the Series 2000-1
Distribution Account shall be deemed to be on deposit and available for
distribution.

                                   ARTICLE 6

                              AMORTIZATION EVENTS

         In addition to the Amortization Events set forth in Section 9.1 of the
Base Indenture, subject to Section 5.2(a)(v) hereof, the following shall be
Amortization Events with respect to the Series 2000-1 Note (without notice or
other action on the part of the Trustee or any holders of the Series 2000-1
Note) and shall not be subject to waiver:

         (a) A Series 2000-1 Credit Support Deficiency shall occur and exist for
more than one (1) Business Day unless during such one (1) Business Day period
the Issuer or the Servicer shall have cured the Series 2000-1 Credit Support
Deficiency in accordance with the terms and conditions of this Supplement;

         (b) if all principal and interest of the Series 2000-1 Note is not
paid in full on or before June 30, 2000;

         (c) any Related Document is not in full force and effect, or the
Issuer, Budget or the Servicer so asserts in writing;

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

         (e) an "Event of Default" shall have occurred and be continuing under
and as defined in the Bridge Loan Agreement.

                                   ARTICLE 7

                                    GENERAL

         (a) Repurchase. The Series 2000-1 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 2000-1 Note shall
equal the Aggregate Principal Balance of the Series 2000-1 Note

                                     -35-
<PAGE>   37

(determined after giving effect to any payments of principal and interest and
any Increases or Decreases as of such Distribution Date), plus accrued and
unpaid interest on such Aggregate Principal Balance.

         (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 2000-1 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. This Supplement may be modified or amended from time
to time in accordance with the terms of the Base Indenture; provided, however,
that if, pursuant to the terms of the Base Indenture or this Supplement, the
consent of the Required Noteholders is required for an amendment or
modification of this Supplement, such requirement shall be satisfied if such
amendment or modification is consented to by Noteholders representing more than
50% of the aggregate outstanding principal amount of the Series 2000-1 Note.

         (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 2000-1
Note without the consent of the Required Noteholders.

         (i) Base Indenture Defined Terms. 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

                                     -36-
<PAGE>   38

Series 2000-1), by reference to the related Supplement. Such terms are defined
in this Series 2000-1 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                                          2000-1 SUPPLEMENT TERMS
        --------------------                                          -----------------------

<S>                                                         <C>
Aggregate Segregated Repurchase Asset                       Aggregate Group II Repurchase Asset Amount
Amount

Monthly Servicing Fee                                       Series 2000-1 Monthly Servicing Fee

Repurchase Vehicle                                          Group II Repurchase Vehicle

Segregated Repurchase Vehicle                               Group II Repurchase Vehicle

Vehicle                                                     Group II Vehicle
</TABLE>

                                     -37-
<PAGE>   39

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

                                   TEAM FLEET FINANCING CORPORATION,
                                   as Issuer

                                   By:  /s/ Mark Bobek
                                      -----------------------------------------
                                      Name: Mark Bobek
                                      Title: President

                                   BUDGET GROUP, INC., as Servicer

                                   By:  /s/ Sheri Young
                                      -----------------------------------------
                                      Name: Sheri Young
                                      Title: Vice President

                                   BUDGET GROUP, INC., as Budget Interestholder

                                   By:  /s/ Mark Bobek
                                      -----------------------------------------
                                      Name: Mark Bobek
                                      Title: Vice President, Treasurer

                                   BANKERS TRUST COMPANY, as Trustee

                                   By:  /s/ Franco Talavera
                                      -----------------------------------------
                                      Name: Franco B. Talavera
                                      Title: Assistant Vice President
<PAGE>   40
                                                                      EXHIBIT A
                                                                             TO
                                                       SERIES 2000-1 SUPPLEMENT

                         FORM OF VARIABLE FUNDING NOTE

REGISTERED                                                         $__________

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>   41

                        TEAM FLEET FINANCING CORPORATION

          VARIABLE FUNDING RENTAL CAR ASSET BACKED NOTE, SERIES 2000-1

                TEAM FLEET FINANCING CORPORATION, a Delaware corporation
(herein referred to as the "Company"), for value received, hereby promises to
pay to Credit Suisse First Boston, New York Branch, a Swiss banking corporation
(the "Noteholder"), or its registered assigns, the principal sum of up to TWO
HUNDRED SEVENTY MILLION DOLLARS ($270,000,000) or, if less the aggregate unpaid
principal amount shown on the schedule attached hereto (and any continuation
thereof), 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 2000-1 Termination Date, which
is the June 2001 Distribution Date (unless extended in writing by the parties
to the Indenture and the Noteholder). The Company will pay interest on this
Note at the Series 2000-1 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 2000-1
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 2000-1 Interest Period, which will be
equal to the sum of the products, for each day during the related Series 2000-1
Interest Period, of (i) the Series 2000-1 Note Rate for such Series 2000-1
Interest Period and (ii) the Series 2000-1 Invested Amount 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
2000-1 Interest Periods, with interest on the amount of such Note Interest
Shortfall at the Series 2000-1 Note Rate for the related Series 2000-1 Interest
Period. The principal amount of this Note shall be subject to Increases and
Decreases on any Distribution Date, and accordingly, such principal amount is
subject to prepayment at any time. Notwithstanding the foregoing, prior to the
Series 2000-1 Termination Date and unless an Amortization Event shall have
occurred, 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 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

                                      A-2
<PAGE>   42

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: Bankers Trust Company, 4 Albany Street,
New York, New York 10006, 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>   43

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

Date: February 25, 2000                    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.

                                               BANKERS TRUST COMPANY,
                                                 as Trustee

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

                                      A-4
<PAGE>   44

                         REVERSE OF SERIES 2000-1 NOTE

                This Note is one of a duly authorized issue of Notes of the
Company, designated as its Variable Funding Rental Car Asset Backed Notes,
Series 2000-1 (herein called the "Series 2000-1 Notes"), 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 Bankers Trust Company, a New York banking
corporation, as trustee (the "Trustee"), and (ii) a Series 2000-1 Supplement,
dated as of February 25, 2000 (the "Series 2000-1 Supplement"), among the
Company, Budget and the Trustee. The Base Indenture and the Series 2000-1
Supplement are referred to herein as the "Indenture". The Series 2000-1 Note is
subject to all terms of the Indenture. All terms used in this Series 2000-1
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 2000-1 Note, and all other Notes included in a Group
I Series of Notes, are and will be equally and ratably secured by the Group I
Collateral, and the Series 2000-1 Note is and will be equally and ratably
secured by the Series 2000-1 Collateral, in each case pledged as security
therefor as provided in the Indenture and the Series 2000-1 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 March 27, 2000.

                As described above, the entire unpaid principal amount of this
Series 2000-1 Note shall be due and payable on the Series 2000-1 Termination
Date. Notwithstanding the foregoing, if an Amortization Event, Liquidation
Event of Default or Series 2000-1 Limited Liquidation Event of Default shall
have occurred and be continuing then, in certain circumstances, principal on
the Series 2000-1 Note may be paid earlier, as described in the Indenture. All
principal payments on the Series 2000-1 Note shall be made pro rata to the
Series 2000-1 Noteholders entitled thereto.

                Payments of interest on this Series 2000-1 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 2000-1 Note,
shall be made by wire transfer to the Holder of record of this Series 2000-1
Note (or any predecessor Series 2000-1 Note) on the Note Register as of the
close of business on each Record Date. Any reduction in the principal amount of
this Series 2000-1 Note (or any predecessor Series 2000-1 Note) effected by any
payments made on any date shall be binding upon all future Holders of this
Series 2000-1 Note and of any Series 2000-1 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

                                      A-5
<PAGE>   45

(together with any accrued and unpaid interest) on this Series 2000-1 Note will
be paid to the Series 2000-1 Noteholder only upon presentation and surrender of
this Series 2000-1 Note at the Corporate Trust Office for cancellation by the
Trustee.

                The Company shall pay interest on overdue installments of
interest at the Series 2000-1 Note Rate to the extent lawful.

                As provided in the Indenture and subject to certain limitations
set forth therein, the transfer of this Series 2000-1 Note may be registered on
the Note Register upon surrender of this Series 2000-1 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 2000-1 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 2000-1 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 2000-1 Noteholder, by acceptance of the Series
2000-1 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 2000-1 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 2000-1 Note, subject to Section 13.17 of the Base Indenture.

                Each Series 2000-1 Noteholder, by acceptance of the Series
2000-1 Note, covenants and agrees that by accepting the benefits of the
Indenture that such Series 2000-1 Noteholder will not for a period of one year
and one day following payment in full of the Series 2000-1 Note institute
against the Company, or join in any institution against the Company of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under any United States Federal or state bankruptcy or similar law in
connection with any obligations relating to the Series 2000-1 Note, the
Indenture or the Related Documents.

                                      A-6
<PAGE>   46

                Prior to the due presentment for registration of transfer of
this Series 2000-1 Note, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name the Series 2000-1 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 2000-1 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 2000-1
Noteholder that, for Federal, state and local income and franchise tax purposes
only, the Series 2000-1 Note will evidence indebtedness of the Company secured
by the Collateral. Each Series 2000-1 Noteholder, by the acceptance of the
Series 2000-1 Note, agrees to treat the Series 2000-1 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 2000-1 Note under the Indenture at any time by the Company with the
consent of the Holders of the Series 2000-1 Note representing more than 50% in
principal amount of the Outstanding Series 2000-1 Note which are affected by
such amendment or modification. The Indenture also contains provisions
permitting the Holders of Series 2000-1 Note representing specified percentages
of the Outstanding Series 2000-1 Note, on behalf of the Holders of the Series
2000-1 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 2000-1 Note (or any predecessor Series 2000-1 Note) shall
be conclusive and binding upon such Holder and upon all future Holders of the
Series 2000-1 Note and of the Series 2000-1 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 2000-1 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 2000-1 Note.

                The term "Company" as used in this Series 2000-1 Note includes
any successor to the Company under the Indenture.

                The Series 2000-1 Note is issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations set
forth therein.

                The Series 2000-1 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 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 2000-1 Note or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to

                                      A-7
<PAGE>   47

pay the principal of and interest on the Series 2000-1 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>   48

                            INCREASES AND DECREASES

<TABLE>
<CAPTION>
==================================================================================================================
    DATE         UNPAID       INCREASE       DECREASE       TOTAL      SERIES     INTEREST PERIOD  NOTATION MADE
               PRINCIPAL                                               2000-1     (IF APPLICABLE)        BY
                 AMOUNT                                               NOTE RATE
==================================================================================================================
<S>            <C>            <C>            <C>            <C>       <C>         <C>              <C>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

==================================================================================================================
</TABLE>

                                      A-9
<PAGE>   49

                                   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 2000-1 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints ___________, attorney, to transfer said Series 2000-1
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 2000-1 Note in
every particular, without alteration, enlargement or any change whatsoever.

                                     A-10
<PAGE>   50

                                                                      EXHIBIT B
                                                                             TO
                                                       SERIES 2000-1 SUPPLEMENT

                         List of Approved Manufacturers

         Ford Motor Company
         Saab Cars USA, Inc.
         Toyota Motor Sales USA, Inc.

<PAGE>   51

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                 PAGE

<S>          <C>                                                                                                 <C>

                                            PRELIMINARY STATEMENT

                                                  ARTICLE 1
                                                 DESIGNATION

                                                  ARTICLE 2
                                                 DEFINITIONS

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

                                                  ARTICLE 3
                                        SECURITY; REPORTS; COVENANT

Section 3.1  Grant of Security Interest.........................................................................   22
Section 3.2  Reports............................................................................................   24

                                                  ARTICLE 4
                                INITIAL ISSUANCE AND INCREASES AND DECREASES OF
                              SERIES 2000-1 INVESTED AMOUNT OF SERIES 2000-1 NOTE

Section 4.1. Issuance in Definitive Form........................................................................   24
Section 4.2  Procedure for Increasing the Invested Amount.......................................................   25
Section 4.3  Decreases..........................................................................................   26

                                                 ARTICLE 5
                                        SERIES 2000-1 ALLOCATIONS

Section 5.1  Establishment of the Group II Collection Account, Series 2000-1 Collection
        Account and Series 2000-1 Accrued Interest Account......................................................   28
Section 5.2  Allocations with Respect to the Series 2000-1 Note.................................................   29
Section 5.3  Payments from the Series 2000-1 Accrued Interest Account...........................................   33
Section 5.4  Payment of Note Interest and Carrying Charges......................................................   35
Section 5.5  Payment of Note Principal; Transfers to Budget Distribution Account................................   35
Section 5.6  Servicer's or Budget's Failure to Make a Deposit or Payment........................................   36
Section 5.7  Series 2000-1 Distribution Account.................................................................   36
</TABLE>

<PAGE>   52

                               TABLE OF CONTENTS
                                   CONTINUED

                                                                           PAGE

                                   ARTICLE 6
                              AMORTIZATION EVENTS

                                   ARTICLE 7
                                    GENERAL

Exhibit A      - Form of Series 2000-1 Note
Exhibit B      - List of Approved Manufacturers

                                     A-ii<PAGE>   1

                                                                   EXHIBIT 4.32

                       TEAM FLEET FINANCING CORPORATION,
                                   AS LESSOR

                              BUDGET GROUP, INC.,
                                  AS GUARANTOR

                        BUDGET RENT A CAR SYSTEMS, INC.

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

                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group II

                         Dated as of February 25, 2000

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>   2

                MASTER MOTOR VEHICLE LEASE AGREEMENT - Group II

         This Master Motor Vehicle Lease Agreement - Group II (this
"Agreement"), dated as of February 25, 2000, 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., those Affiliates
(other than the Budget Subsidiaries) and non-Affiliates, (such Affiliates and
non-Affiliates the "Non-Budget Lessees") of Budget Group, Inc. and will finance
the acquisition of Financed Vehicles, 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. ("Budget"), a
Delaware corporation formerly known as Team Rental Group, Inc. ("Team"), 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 refinance the Initial Fleet and to purchase, finance the
purchase of and refinance additional Financed Vehicles that are Eligible
Repurchase Vehicles from one or more Manufacturers with (i) the proceeds
obtained by the issuance from time to time of Group II 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
II 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 II Repurchase Vehicles so acquired,
financed or refinanced by the Lessor for use in the daily vehicle rental
businesses of the Lessees; and

         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:

<PAGE>   3

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                             PAGE

<S>                                                                                          <C>
1.       DEFINITIONS .........................................................................  3

2.       GENERAL AGREEMENT ...................................................................  3
         2.1   Leasing of Group II Vehicles...................................................  5
         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 ................................................................................ 11
         3.1   Vehicle Term: Group II Repurchase Vehicles .................................... 11
         3.2   The "Lease Commencement Date" ................................................. 12

4.       RENT AND CHARGES .................................................................... 13
         4.1   Payment of Rent ............................................................... 13
         4.2   Payment of Monthly Supplemental Payments ...................................... 13
         4.3   Payment of Supplemental Rent .................................................. 13
         4.4   Payment of Termination Payments, Casualty Payments, and Late Return
               Payments ...................................................................... 13
         4.5   Late Payment .................................................................. 13
         4.6   Prepayments ................................................................... 13

5.       INSURANCE ........................................................................... 14
         5.1   Personal Injury and Damage .................................................... 14
         5.2   Delivery of Certificate of Insurance .......................................... 14
         5.3   Changes in Insurance Coverage ................................................. 14

6.       CASUALTY OBLIGATION ................................................................. 15
         6.1   Casualty ...................................................................... 15

7.       VEHICLE USE ......................................................................... 15

8.       REGISTRATION; LICENSE; TRAFFIC SUMMONSES; PENALTIES AND
               FINES ......................................................................... 16

9.       MAINTENANCE AND REPAIRS ............................................................. 16
</TABLE>

<PAGE>   4

<TABLE>
<S>                                                                                            <C>
10.      VEHICLE WARRANTIES .................................................................. 17

11.      VEHICLE RETURN GUIDELINES ........................................................... 17
         11.1  Vehicle Turn-in-Condition ..................................................... 17
         11.2  Return ........................................................................ 17
         11.3  Termination Payments .......................................................... 18
         11.4  Repurchase Price Interest ..................................................... 18

12.      DISPOSITION PROCEDURE ............................................................... 18

13.      ODOMETER DISCLOSURE REQUIREMENT ..................................................... 18

14.      [RESERVED.] ......................................................................... 19

15.      GENERAL INDEMNITY ................................................................... 19
         15.1  Indemnity by the Lessees ...................................................... 19
         15.2  Reimbursement Obligation by the Lessee Group .................................. 20
         15.3  Defense of Claims ............................................................. 20

16.      ASSIGNMENT .......................................................................... 21
         16.1  Right of the Lessor to Assign this Agreement .................................. 21
         16.2  Limitations on the Right of the Lessee to Assign this Agreement ............... 21

17.      DEFAULT AND REMEDIES THEREFOR. ...................................................... 21
         17.1  Lease Events of Default ....................................................... 21
         17.2  Effect of Lease Event of Default .............................................. 23
         17.3  Rights of Lessor Upon Lease Event of Default, Liquidation Event of Default
                  or Limited Liquidation Event of Default .................................... 23
         17.4  Rights of Trustee Upon Liquidation Event of Default, Limited Liquidation
                  Event of Default and Non-Performance of Certain Covenants................... 25
         17.5  Measure of Damages ............................................................ 26
         17.6  Application of Proceeds ....................................................... 27

18.      MANUFACTURER EVENTS OF DEFAULT ...................................................... 27

19.      LESSEE PARTIAL WIND-DOWN EVENTS ..................................................... 27

20.      RESERVED ............................................................................ 28

21.      CERTIFICATION OF TRADE OR BUSINESS USE .............................................. 28
</TABLE>

                                      -ii-

<PAGE>   5

<TABLE>
<S>                                                                                            <C>
22.      SURVIVAL............................................................................. 28

23.      ADDITIONAL LESSEES................................................................... 28

24.      GUARANTY............................................................................. 29
         24.1  Guaranty....................................................................... 29
         24.2  Scope of Guarantor's Liability................................................. 30
         24.3  Lessor's Right to Amend this Agreement, Etc.................................... 30
         24.4  Waiver of Certain Rights by Guarantor.......................................... 31
         24.5  Lessees' Obligations to Guarantor and Guarantor's Obligations to Lessees
                  Subordinated................................................................ 32
         24.6  Guarantor to Pay Lessor's Expenses............................................. 33
         24.7  Reinstatement.................................................................. 33
         24.8  Pari Passu Indebtedness........................................................ 34

25.      RIGHTS OF LESSOR ASSIGNED TO TRUSTEE................................................. 34

26.      RIGHT OF LESSEE TO DELEGATE RIGHTS AND OBLIGATIONS HEREUNDER TO GUARANTOR............ 35

27.      MODIFICATION AND SEVERABILITY........................................................ 35

28.      CERTAIN REPRESENTATIONS AND WARRANTIES............................................... 36
         28.1  Due Organization, Authorization, etc........................................... 36
         28.2  Financial Information; Financial Condition..................................... 36
         28.3  Litigation..................................................................... 37
         28.4  Liens.......................................................................... 37
         28.5  Employee Benefit Plans......................................................... 37
         28.6  Investment Company Act......................................................... 38
         28.7  Regulations T, U and X......................................................... 38
         28.8  Business Locations; Trade Names; Principal Places of Business Locations........ 38
         28.9  Taxes.......................................................................... 38
         28.10 Governmental Authorization..................................................... 38
         28.11 Compliance with Laws........................................................... 39
         28.12 Eligible Vehicles.............................................................. 39
         28.13 Supplemental Documents True and Correct........................................ 39
         28.14 Accuracy of Information........................................................ 39

29.      CERTAIN AFFIRMATIVE COVENANTS........................................................ 39
         29.1  Corporate Existence; Foreign Qualification..................................... 40
         29.2  Books, Records and Inspections................................................. 40
</TABLE>

                                     -iii-

<PAGE>   6

<TABLE>
<S>                                                                                            <C>
         29.3  Insurance...................................................................... 40
         29.4  Repurchase Programs............................................................ 40
         29.5  Reporting Requirements......................................................... 41
         29.6  Taxes and Liabilities.......................................................... 43
         29.7  Compliance with Laws........................................................... 43
         29.8  Maintenance of Separate Existence.............................................. 43
         29.9  Trustee as Lienholder.......................................................... 43

30.      CERTAIN NEGATIVE COVENANTS........................................................... 44
         30.1  Mergers, Consolidations........................................................ 44
         30.2  Other Agreements............................................................... 44
         30.3  Liens.......................................................................... 44
         30.4  Use of Vehicles................................................................ 45
         30.5  Restrictions on Distributions.................................................. 45

31.      BANKRUPTCY PETITION AGAINST LESSOR................................................... 45

32.      SUBMISSION TO JURISDICTION........................................................... 45

33.      GOVERNING LAW........................................................................ 46

34.      JURY TRIAL........................................................................... 46

35.      NOTICES.............................................................................. 46

36.      LIABILITY............................................................................ 47

37.      HEADINGS............................................................................. 47

38.      EXECUTION IN COUNTERPARTS............................................................ 47

39.      EFFECTIVENESS........................................................................ 47
</TABLE>

ANNEX A              OPERATING LEASE TERMS
ANNEX B              FINANCING LEASE TERMS

SCHEDULE I           LESSEES AS OF SERIES 2000-1 CLOSING DATE
SCHEDULE II          NOTICE ADDRESSES
SCHEDULE 28.8        BUSINESS LOCATIONS
ATTACHMENT A-1       SCHEDULE OF INITIAL FLEET

                                     -iv-

<PAGE>   7

ATTACHMENT A-2       GROUP II VEHICLE ACQUISITION SCHEDULE
ATTACHMENT B         FORM OF POWER OF ATTORNEY
ATTACHMENT C         FORM OF JOINDER IN LEASE
ATTACHMENT D         FORM OF BILL OF SALE

                                      -v-

<PAGE>   8

         1. DEFINITIONS. Certain capitalized terms used herein (including the
preamble and the recitals hereto) 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 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 Base
Indenture, and (b) each Supplement to the Base Indenture relating to a Series
of Notes identified in such Supplement as being a Group II 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 (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
         "Group II 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 Group II Lessee Agreements,
         whether payable as rent, guaranty payments, fees, expenses, costs,
         indemnities, insurance recoveries, damages for the breach of any of
         the Group II Lessee

                                      -3-
<PAGE>   9

         Agreements or otherwise, (b) all rights, remedies, powers, privileges
         and claims of such Lessee against any other party under or with
         respect to the Group II Lessee Agreements (whether arising pursuant to
         the terms of such Agreements or otherwise available to such Lessee at
         law or in equity), including the right to enforce any of the Group II
         Lessee Agreements and to give or withhold any and all consents,
         requests, notices, directions, approvals, extensions or waivers under
         or with respect to the Group II 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
         Group II 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 Group II
         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 II 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;

                  (v) the Collection Account, the Group II Collection Account
         and each other collection account established pursuant to a Series
         Supplement with respect to any Group II Series of Notes; (a) all funds
         on deposit therein allocable to Group II 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 II Vehicles from time to time; and (c) all
         investments made at any time and from time to time with the moneys
         allocable to Group II 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

                                      -4-
<PAGE>   10

                  (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 II Vehicles. (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 II Repurchase Vehicles constituting the Initial Fleet, the Refinanced
Vehicles and each additional Lessor-Owned Vehicle and Financed Vehicle
identified in certain vehicle orders (each, a "Group II Vehicle Order")
produced from time to time by a Lessee, listing Eligible 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 (other than Texas Vehicles and Hawaii Vehicles) and (ii)
Lessor-Owned Vehicles, Texas Vehicles and Hawaii Vehicles for lease to the
Lessees hereunder (each such financing or Lessor-Owned Vehicle made available,
a "Master Lease Advance").

         (b) With respect to (i) any lease of Group II Vehicles in the Initial
Fleet, (ii) the refinancing of any other Eligible Repurchase Vehicle owned by
the Lessor or any Lessee (collectively, together with any Group II Vehicles in
the Initial Fleet to be leased under this Agreement (including, without
limitation, any Group II Vehicles previously subject to any other Leases and
refinanced pursuant to this Agreement), the "Refinanced Vehicles"), and/or
(iii) 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").

         (c) With respect to any lease of Group II 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 II Vehicles as is set
forth in Attachment A-2 hereto (each, a "Group II Vehicle Acquisition
Schedule"), or in such form as is otherwise requested by the Lessor. In
addition, each Lessee leasing Vehicles pursuant to such Group II 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 II Vehicle Orders to lease
Eligible Repurchase Vehicles currently owned by the Lessor pursuant to this
Agreement, together with the required Group II Vehicle Acquisition Schedules or
Refinancing Schedule, as the case may be, in respect of such Group II Vehicle
Orders.

         (e) The Lessor shall lease to the Lessees, and the Lessees shall lease
from the Lessor only Group II Vehicles that are Eligible Repurchase Vehicles.
This Agreement, together with any other

                                      -5-
<PAGE>   11

related documents attached to this Agreement or submitted with a Group II
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
II 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 II 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 II Vehicles to a location selected by the relevant Lessee at such
Lessee's expense. Each Lessee agrees to accept Group II Repurchase Vehicles as
produced and delivered except each Lessee will have the option to reject any
Group II 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 II Repurchase Vehicle to the Manufacturer pursuant
to the preceding sentence. Any member of the Lessee Group that places a Group
II Vehicle Order for a Group II Repurchase Vehicle pursuant to this Agreement
agrees that all Group II 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 II 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 II Vehicle (or to reimburse the applicable Lessee
for) the costs and expenses incurred by the Lessor or such Lessee, as
applicable, in connection with the acquisition of such Group II Vehicle as
established by the invoice delivered in connection with such Group II Vehicle
(the "Capitalized Cost"); provided that solely in the case of the Initial
Fleet, any other 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 as of the Vehicle Lease Commencement Date of the
Initial Fleet and/or the Refinanced Vehicles, as applicable, and (y) the face
amount of the Eligible Receivables being refinanced on the Vehicle Lease
Commencement Date. 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 II Vehicle to the extent
that the same have not been included within the Capitalized Cost.

         (b) Each Master Lease Advance made by the Lessor with respect to a
Repurchase Vehicle shall be in an amount not exceeding the Net Book Value of
such Repurchase Vehicle. The aggregate amount of Master Lease Advances
outstanding at any time shall not exceed the Maximum Lease Commitment.

                                      -6-
<PAGE>   12

         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 II Vehicles or making
delivery thereof. AS BETWEEN THE LESSOR AND EACH LESSEE, ACCEPTANCE FOR LEASE
OF THE Group II VEHICLES SHALL CONSTITUTE SUCH LESSEE'S ACKNOWLEDGMENT AND
AGREEMENT THAT SUCH LESSEE HAS FULLY INSPECTED SUCH Group II VEHICLES, THAT THE
Group II 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 II 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 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 under this
Agreement 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 Base 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:

                                      -7-
<PAGE>   13

                           (i) the quotient (expressed as a percentage) obtained
                  by dividing (x) the aggregate Net Book Value of all Group II
                  Repurchase Vehicles manufactured by any 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 Group II 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 II
                  Invested Amount as of such date plus the available
                  subordinated amounts for all Group II Series of Notes as of
                  such date, shall not exceed the Maximum Manufacturer
                  Percentage (if any) for any Group II Series of Notes;

                           (ii) if the Maximum Manufacturer Percentage for any
                  Group II Series of Notes (as calculated in clause (i), above)
                  has 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;

                           (iii) after giving effect to the inclusion of such
                  Vehicle under this Agreement, (A) the Credit Support Amount
                  for any Group II Series of Notes shall not be less than the
                  Minimum Credit Support Amount for such related Series and (B)
                  the Letter of Credit Amount for any Group II Series of Notes
                  shall not be less than the Required Letter of Credit Amount
                  for such Series; and

                           (iv) 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 Initial Fleet and other Refinanced Vehicles.
         Only in connection with the leasing of Refinanced Vehicles (including
         the Initial Fleet) 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;

                                      -8-
<PAGE>   14

                           (ii) 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, which 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; provided that, with respect only to
                  Refinanced Vehicles and Eligible Receivables to be leased
                  hereunder on the Series 2000-1 Issuance Date, the Lessee
                  shall have until the close of business on March 10, 2000 to
                  deliver such report and terminations or partial releases;

                           (iii) 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; provided that, with respect
                  only to Refinanced Vehicles and Eligible Receivables to be
                  leased hereunder on the Series 2000-1 Issuance Date, the
                  Lessee shall have until the close of business on March 10,
                  2000 to deliver such confirmation and release;

                           (iv) 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 II
                  Collateral relating to such Refinanced Vehicles and Eligible
                  Receivables;

                           (v)  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;

                           (vi)  with respect to any Vehicle in the Initial
                  Fleet, if the Trustee is not noted as lienholder on the
                  Certificate of Title for such Vehicle, delivery to the
                  Trustee of a Lienholder Nominee Agreement executed and
                  delivered by the named lienholder;

                           (vii)  with respect to any Vehicle in the Initial
                  Fleet, if the Lessor is not noted as the titleholder on the
                  Certificate of Title for such Vehicle, delivery to the
                  Trustee of a Vehicle Title Nominee Agreement executed and
                  delivered by the named titleholder; and

                                      -9-
<PAGE>   15

                           (viii) 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 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 II Vehicle Order (including a Group II 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 (other than Vehicles in the
         Initial Fleet) 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 II Vehicle Order (including a Group II
                  Vehicle Acquisition Schedule) with respect to all
                  Lessor-Owned Vehicles to be leased to such Lessee by the
                  Lessor on the Lease Commencement Date;

                           (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 II 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. The Lessor (if such Vehicle is a
         Lessor-Owned Vehicle, a Texas Vehicle or a Hawaii Vehicle) or the
         applicable Lessee (if such Vehicle is a Financed Vehicle other than a
         Texas Vehicle or a Hawaii Vehicle) 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 II Collateral relating to such
         Vehicle.

                                     -10-
<PAGE>   16

                  (h)  Series Supplement.  The leasing of such Group II Vehicle
         shall not be prohibited by the provisions of a Series Supplement for a
         Group II 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 II
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 II Vehicle Order or Refinancing Schedule
have been satisfied as of the date of such Group II Vehicle Order or
Refinancing Schedule.

         3.  TERM.

         3.1 Vehicle Term: Group II Repurchase Vehicles. The "Vehicle Lease
Commencement Date" for each Group II Repurchase Vehicle and Eligible Receivable
shall mean the day referenced as such in the Group II Vehicle Acquisition
Schedule or Refinancing Schedule with respect to such Group II Repurchase
Vehicle or Eligible Receivable but in no event beyond the date that funds are
expended by the Lessor to acquire such Group II Repurchase Vehicle or Eligible
Receivable. The "Vehicle Term" with respect to each Group II Repurchase Vehicle
shall extend from the Vehicle Lease Commencement Date through the earliest of
(i) the Turnback Date for such Group 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 of such sale are received by the
Trustee in the Group II 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 II Collection Account from the
applicable Lessee, (iv) the date that such Vehicle is purchased by the
applicable Lessee pursuant to paragraph 6 or 7 of Annex A and the Vehicle
Purchase Price with respect to such purchase (and any unpaid Monthly Base Rent
and Monthly Variable Rent with respect to such Vehicle) is received by the
Trustee in the Group II 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"). The Lessor and each Lessee agree that each Lessee
shall use its commercially reasonable efforts to deliver each Group II
Repurchase Vehicle to the related Manufacturer or the designated auction site,
as applicable, (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 II Repurchase Vehicle without penalty (the "Minimum Term")) and (b)
not later than the end of the maximum holding period (after which the Lessor
may not return such Group II Repurchase Vehicle which is a Lessor-Owned Vehicle
without penalty (the "Maximum Term")); provided, however, if for any reason, a
Lessee fails to deliver a Group II Repurchase Vehicle which is a Lessor-Owned
Vehicle to the applicable Manufacturer or designated auction site during the

                                     -11-
<PAGE>   17

time period between the expiration of the Minimum Term and the expiration of
the Maximum Term, such Lessee shall be obligated to purchase such Group II
Repurchase Vehicle from the Lessor on the first Due Date after the expiration
of the Maximum Term for an amount equal to the Vehicle Purchase Price with
respect to such Group II Repurchase Vehicle. Each Lessee will pay the
equivalent of the Rent for the Minimum Term for Group II Repurchase Vehicles
which are Lessor-Owned Vehicles and are returned before the 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 II Repurchase Vehicle to another Lessee under this Agreement
or to a lessee under another Lease relating to another Series under the Base
Indenture.

         3.2 The "Lease Commencement Date" shall mean the earlier of (i) the
date of the issuance of the Series 2000-1 Notes as the first Group II Series of
Notes 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 II Series of Notes and all outstanding Carrying Charges
and (ii) the Vehicle Lease Expiration Date for the last Group II 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 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 II 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 II Series of Notes for
the Related Month, plus (y) the Carrying Charges for the Related Month
allocable to any Group II Series of Notes, minus (z) the aggregate of all
Monthly Variable Rent and Monthly Finance Rent accrued with respect to the
Related Month for all Group II 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

                                     -12-
<PAGE>   18

Late Return Payments that have accrued with respect to the Group II 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
product of (a) the VFR plus 1% and (b) 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 9(b)(iii) of Annex
A and 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 II Vehicles leased by such Lessee under this Agreement.

         5. INSURANCE. Budget represents that it shall at all times maintain
insurance coverage for each Lessee 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 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 II 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 II
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, 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 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

                                     -13-
<PAGE>   19

         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, 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 II 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 II 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 II Vehicle becomes a Casualty, then the Lessee
that is leasing such Group II 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 II Vehicle becomes a Casualty, pay to the Lessor the Net Book Value
of each such Group II Vehicle that is a Group II Repurchase Vehicle (such
payment, a "Casualty Payment"). Upon payment by the Lessee to the Lessor of the
Casualty Payment for any Group II Vehicle that has become a Casualty (i) if
such Vehicle is a Lessor-Owned Vehicle, the Lessor shall cause title to such
Group II Vehicle to be transferred to the relevant Lessee to facilitate
liquidation of such Group II Vehicle by the Lessee, (ii) such Lessee shall be
entitled to any physical damage insurance proceeds applicable to such Group II
Vehicle, and (iii) the Lien of the Trustee on such Group II Vehicle shall be
released by the Servicer.

         7.  VEHICLE USE. So long as no Lease Event of Default, Liquidation
Event or Limited Liquidation Event of Default 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 II
Vehicles leased hereunder in the regular course of business of such Lessee.
Such use shall be confined primarily to 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 II 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 establish,
perfect and maintain the Lessor's title to and interest in the Group II
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 II 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 II Vehicles.

                                     -14-
<PAGE>   20

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 II Vehicles and the related Certificates of Title shall have been taken
and (ii) all legal requirements applicable to such Group II Vehicles shall have
been met or obtained. Following a Lease Event of Default, Lessee Partial
Wind-Down Event, or, with respect to the Group II 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 II Vehicles leased by
such Lessee as of such date are principally located. The Lessee shall not
knowingly use any Group II 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 II Vehicles. Each Lessee shall comply with all
applicable statutes, decrees, ordinances and regulations regarding acquiring,
titling, registering, leasing, insuring and disposing of Group II Vehicles and
shall take reasonable steps to ensure that drivers of such Group II 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 II 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 II Vehicles and
registration certificates, Certificates of Title and related documents covering
Group II Vehicles wherever the same shall be located. Group II 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
II 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 II Vehicles, and titling of Group II Vehicles in the name of
the Lessor (in the case of Lessor-Owned Vehicles, Texas Vehicles and Hawaii
Vehicles) or the applicable Lessee (in the case of all Financed Vehicles other
than Texas Vehicles and Hawaii Vehicles), in each case with the Lien of the
Trustee noted thereon, and, where required, shall have Group II 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 II 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 II
Vehicle during the Vehicle Term for such Group II Vehicle or imposed during the
Vehicle Term for such Group II Vehicle by any Governmental Authority or any
court of law or equity with respect to Group II Vehicles in connection with the
relevant Lessee's operation of Group II Vehicles, and the Lessor, in its
discretion, may, but shall not be obligated to, pay any 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 II Vehicle or impairs the
ability to transfer clear title to such Group II 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

                                     -15-
<PAGE>   21

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 Base
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 II Vehicles in good working order and condition, and
will maintain Group II Vehicles as required in order to keep the Manufacturer's
warranty in force, and in the case of Group II Repurchase Vehicles, shall
comply with all requirements of the related Repurchase Program to the extent
necessary to maintain the eligibility of such Group II Vehicles. Each Lessee
will return Group II 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 II Vehicle.
Each Lessee will pay, or cause to be paid, all usual and routine expenses
incurred in the use and operation of Group II 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 II 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 II
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 II Vehicle made by the relevant Lessee
shall remain the property of such Lessee if it can be disconnected from the
Group II 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 II 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 II Vehicle.

         11.  VEHICLE RETURN GUIDELINES.

         11.1 Vehicle Turn-in-Condition. As used herein "vehicle turn-in
condition" with respect to each Group II Repurchase Vehicle will be determined
in accordance with the related Repurchase Program. Group II Repurchase Vehicles
not meeting the applicable Repurchase Program's vehicle turn-in condition
guidelines will be purchased by the relevant Lessee in accordance with the
Casualty procedure set forth in Section 6.1.

                                     -16-
<PAGE>   22

         11.2 Return. Each Lessee will return each Group II Repurchase Vehicle
(other than a Casualty) 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 Maximum Term for such Group II Vehicle.
Each Lessee agrees that the Group II 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 II Repurchase Vehicle shall inure to the benefit of the relevant Lessee.

         11.3 Termination Payments. Upon receipt of (i) payment of the
Repurchase Price or Guaranteed Payment with respect to each Group II Repurchase
Vehicle from the Manufacturer (or the receipt of payment of the Repurchase
Price of each Group II 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 II
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 II Repurchase Vehicle for the
period between the Turnback Date for such Group II Vehicle and receipt of such
Repurchase Price by the 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 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 II Vehicle to a third party or the return of any Group II Repurchase
Vehicle in accordance with an Eligible Repurchase Program. In addition, with
respect to the return of a Group II Repurchase Vehicle to a Manufacturer or the
delivery of a Group II 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 II Repurchase Vehicle and accepted by
the Manufacturer or its agent at the time of Group II Repurchase Vehicle return
or delivery, as applicable. If a Group II Repurchase Vehicle 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 Maximum
Term with respect to such Group II Repurchase Vehicle, the relevant Lessee
shall purchase such Group II Repurchase Vehicle for the appropriate Vehicle
Purchase Price and pay the Lessor such amount (such amount, the "Late Return
Payment") within 15 days after the end of the Maximum Term (together with any
Repurchase Price Interest accrued from the last day of the Maximum Term to the
date that such payment is received by the Lessor).

                                     -17-
<PAGE>   23

         13. ODOMETER DISCLOSURE REQUIREMENT. Each Lessee agrees to comply with
all requirements of law and all Repurchase Program requirements in connection
with the transfer of ownership of any Group II 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.  [RESERVED.]

         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 Group II 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 II Vehicle or the acquisition, purchase, sale, rental, use,
         operation, control, ownership or disposition of any Group II 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 IIs 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

                                     -18-
<PAGE>   24

         Group II 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 II Series of Notes, any and all
         fees of the Servicer under the Base Indenture (to the extent
         attributable to any Group II Series of Notes), fees, if any, payable
         to the Rating Agencies in connection with their rating of any Group II
         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
         II 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 II Series of
         Notes in connection with the administration, enforcement, waiver or
         amendment of this Agreement and any 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 II 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 IIn fact indemnities 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 II 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

                                     -19-
<PAGE>   25

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 II 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 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 II 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 Base Indenture, without prior
written consent of the Lessor and the Trustee, 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:

                                     -20-
<PAGE>   26

                  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 IIn 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 unauthorized assignment
         or transfer of this Agreement by any member of the Lessee Group
         occurs;

                  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 material
         covenant, condition, agreement or provision hereof (other than one
         described in Section 17.1.1, 17.1.2 or 17.1.9), including, but not
         limited to, usage and maintenance, and such default continues for more
         than 30 days after the earlier to occur of (a) the date a Responsible
         Officer 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 30 day period, no Lease Event of
         Default shall result therefrom so long as, within such 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 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  Event of Bankruptcy.  Subject to the provisions of
         Section 19 hereof regarding Lessee Partial Wind-Down Events, an Event
         of Bankruptcy occurs with respect to any member of the Lessee Group;

                  17.1.6 Default Under Another Lease. A Lease Event of Default
         occurs under the Amended and Restated Motor Vehicle Lease Agreement,
         dated as of December 1, 1996, the Motor Vehicle Lease Agreement,
         Series 1997-1, dated as of April 1, 1997, the Motor Vehicle Lease
         Agreement, Series 1997-2, dated as of April 29, 1997, the Amended and
         Restated

                                     -21-
<PAGE>   27

         Master Motor Vehicle Lease Agreement Group I, dated as of June 19,
         1998 or any other Lease with respect to which Budget is a guarantor;

                  17.1.7  Required Credit Support Amount.  The Credit Support
         Amount for any Group II 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 one Business Day; or

                  17.1.8 Letter of Credit Reimbursement Agreement. An event of
         default occurs under the Letter of Credit Reimbursement Agreement for
         any Group II Series of Notes which continues beyond any applicable
         cure period specified in such Letter of Credit Reimbursement
         Agreement.

                  17.1.9  Release of Liens on Refinanced Vehicles.  Any
         condition precedent specified in the proviso to Section 2.5(c)(ii) or
         the proviso to Section 2.5(c)(iii) is not satisfied on or before the
         close of business on March 10, 2000.

         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, 17.1.7 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 under all Outstanding
Group II 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 II Series of Notes were then due and
payable in full) 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 Liquidation Event of Default shall occur, the Lessor or the
Trustee 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, Liquidation Event
of Default or Limited Liquidation Event of Default. If a Lease Event of
Default, Limited Liquidation Event of Default or Liquidation Event of Default
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) following the occurrence of a Lease

                                     -22-
<PAGE>   28

         Event of Default, 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 II Vehicles, and the Lessor may direct
         delivery by the Lessee Group (or the applicable member(s) thereof) of
         documents of title to the Group II Vehicles, whereupon all rights and
         interests of the Lessee Group (or the applicable member(s) thereof) to
         the Group II 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 II 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 II 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 at least five days prior to the proposed sale, which
         shall be deemed commercially reasonable, and any Lessee may purchase
         the Group II 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.

                                     -23-
<PAGE>   29

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

                  (i) If a Liquidation Event of Default, a Limited Liquidation
         Event of Default or a Manufacturer Event of Default, shall have
         occurred and be continuing, the Lessor and the Trustee, to the extent
         provided in the Base Indenture, shall have the rights against the
         Guarantor, each Lessee, each Manufacturer in connection with any
         Manufacturer Event of Default and the Collateral provided in the Base
         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 Liquidation Event of Default or Limited
         Liquidation Event of Default, including the right to take possession
         of all Group II Vehicles immediately from the Lessees.

                  (ii) With respect to Group II 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 with respect to (i) Group II
         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 II Repurchase Vehicles, any such Group II
         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 II Vehicles free of
         Liens and to maintain the Trustee's Lien perfected on the Group II
         Collateral, the Trustee shall have the right to take actions
         reasonably necessary to correct such default with respect to the
         subject Group II 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 Liquidation Event of Default or
         Limited Liquidation Event of Default, the Guarantor and each Lessee
         will return any Group II Repurchase Vehicles to the related
         Manufacturer in accordance with the instructions of the Lessor.

                  (v) Upon the occurrence of a Liquidation Event of Default or
         Limited Liquidation Event of Default, the Lessor shall have the right
         to dispose of those Group II Repurchase Vehicles not accepted by the
         related Manufacturer under the applicable Repurchase Program pursuant
         to

                                     -24-
<PAGE>   30

         clause (iv) above. 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 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 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, Liquidation Event
of Default or Limited Liquidation Event of Default 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:

                  (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, Liquidation
         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, Liquidation 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 II Vehicles leased hereunder
         (whether by receipt of payment from the Manufacturers under Repurchase
         Programs, from sales of Group II Vehicles to third parties, or
         otherwise).

         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

                                     -25-
<PAGE>   31

incurred by the Lessor in connection with such sale or disposition, including
any reasonable costs associated with repairing any Group II 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,
(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, the relevant Lessee on behalf of the Lessor (a) shall no longer
place Group II Vehicle Orders from such Manufacturer (each, a "Defaulting
Manufacturer") for any additional Group II Vehicles and (b) shall cancel any
Group II 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
which was leased under any Lease and turned in to such Manufacturer or
delivered to an authorized auction site pursuant to the related Repurchase
Program; provided, however, that such failure continues for more than 90 days
following the Turnback Date such that the aggregate of any such amounts not
paid for more than 90 days are in the aggregate in excess of $40,000,000 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 Group II
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.

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

         18.4  Such Manufacturer is no longer an Eligible Manufacturer.

         18.5  The Repurchase Program of a Manufacturer shall no longer be an
         Eligible Repurchase Program.

         19. LESSEE PARTIAL WIND-DOWN EVENTS. Upon the occurrence of any of the
events described in Sections 17.1.4, 17.1.5, or 17.1.6 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 II Vehicle Orders for additional Group II
Vehicles and (b) shall cancel Group II Vehicle Orders for Vehicles; provided,
however, that if a Group II 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 II

                                     -26-
<PAGE>   32

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.  RESERVED.

         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, 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") or any party that
is not an Affiliate of the Guarantor (each, a "Non-Affiliate") 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 or Non-Affiliate 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;

                                     -27-
<PAGE>   33

                  (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 II Vehicles leased hereunder or any
         Collateral under the Base Indenture;

                  (vii)  evidence of the filing of proper financing statements
         on Form UCC-1 naming such party, as debtor, and the Lessor 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;

                  (ix)  Rating Agency Confirmation that such party becoming a
         "Lessee" under this Agreement will not cause a failure to meet the
         Rating Agency Condition; 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 or Non-Affiliate of the applicable Joinder in Lease executed by the
Lessor, such Guarantor Subsidiary or Non-Affiliate 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 II 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

                                     -28-
<PAGE>   34

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 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:

                                     -29-
<PAGE>   35

                  (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;

                           (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

                                     -30-
<PAGE>   36

                  (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 on the terms set forth in clauses (a) through (e) below,
and the payment thereof 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)  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 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.

                                     -31-
<PAGE>   37

                  (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%.

         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

                                     -32-
<PAGE>   38

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 II Series of Notes. Accordingly, each member of the Lessee Group
agrees that:

                  (i) Subject to the terms of the Base 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 II Series of Notes or,
         subject to the provisions of Section 19 hereof, a Lessee Partial
         Wind-Down Event or, with respect to Group II Repurchase Vehicles, 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 with
         respect to such Lessee has occurred, 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 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 Base 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
         Collection Account established by the Trustee for receipt of such
         payments pursuant to the Base 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

                                     -33-
<PAGE>   39

         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 II Vehicles leased under this
         Agreement, the Certificates of Title with respect thereto, the Group
         II Collateral pursuant to the Base 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 Base 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. 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 II Series of Notes and, if the Series 2000-1 Notes are
still outstanding, the Lender in respect thereof. 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 the Lender or Note Purchaser for each Group II Series of Notes,
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 or any
Enhancement Provider, enter into any amendment, supplement or 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 II 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
II 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.

         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 II Vehicles leased by it hereunder (except that any Person
becoming a Lessee hereunder pursuant to

                                     -34-
<PAGE>   40

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
(or, with respect to each Group II Series of Notes issued after the date
hereof, the Closing Date with respect to such Series of Notes):

         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), have received all necessary governmental and other 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. 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 in clause (b) 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, or shall be,
furnished to the Lessor and the Trustee on or prior to such Closing Date:

                  (a) the audited consolidated balance sheets of Budget and each
         Non-Budget Lessee as of December 31, 1998 and the related statements
         of operations, stockholders' deficit and cash flows for the fiscal
         year ending on such date; and

                  (b) (i) the unaudited pro forma consolidated balance sheets of
         Budget and the Budget Subsidiaries and statement of operations,
         accompanied by an Officers' Certificate verifying the accuracy and
         completeness thereof signed by an Authorized Officer of the Guarantor,
         for the

                                     -35-
<PAGE>   41

         most recently ended calendar quarter ending March 31, June 30,
         September 30 or December 31, as applicable, and (ii) the unaudited pro
         forma consolidated balance sheets of each Non-Budget Lessee and
         statement of operations, accompanied by an Officers' Certificate
         verifying the accuracy and completeness thereof signed by an
         Authorized Officer of such Non-Budget Lessee, for the most recently
         ended calendar quarter ending March 31, June 30, September 30 or
         December 31, as applicable.

         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 II Vehicles leased under this Agreement are free
and clear of all Liens other than (i) Permitted Liens and (ii) Liens in favor
of the Trustee for the benefit of Group II Noteholders and/or any related
Enhancement Provider. The Trustee has obtained, and will continue to obtain, as
security for the liabilities under the Indenture and the Group II Series of
Notes, a first priority perfected Lien on all Group II Vehicles leased under
this Agreement. Except as otherwise permitted under the Indenture, all Vehicle
Perfection and Documentation Requirements with respect to all Group II Vehicles
leased under this Agreement on or after the date hereof have and will continue
to be satisfied.

         28.5 Employee Benefit Plans. (a) During the 12 consecutive month period
prior to the date hereof (or, with respect to each Series of Notes included in
the Group II 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.

                                     -36-
<PAGE>   42

         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 Locations; 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, 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 II , 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 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

                                     -37-
<PAGE>   43

have a Material Adverse Effect on the Guarantor or such Lessee, as applicable,
and (iii) has retained all records and documents required to he 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 II Repurchase Vehicle is or will
be, as the case may be, on the Vehicle Lease Commencement Date with respect to
such Group II Repurchase Vehicle, an Eligible Repurchase Vehicle.

         28.13 Supplemental Documents True and Correct. All information
contained in any Group II 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.

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

                                     -38-
<PAGE>   44

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 II 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 II
Vehicles leased under this Agreement including, without limitation, with
respect to Group II 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 II 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 Group II Vehicles as well as damage to Group II
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 II Repurchase
Vehicle leased by each Lessee hereunder (a) unless previously purchased by such
Lessee pursuant to this Agreement, turn in such Group II Repurchase Vehicle to
the relevant Manufacturer within the Repurchase Period therefor, (b) dispose of
such Group II 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.  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

                                     -39-
<PAGE>   45

         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 110 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 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, Manufacturer Event of Default, Potential Manufacturer
         Event of Default, Lessee Partial Wind-Down Event or Potential Lessee
         Partial Wind-Down Event, 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;

                                     -40-
<PAGE>   46

                  (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 (a) the vehicle identification numbers
         (the "VIN") for the Group II Vehicles leased hereunder during the
         Related Month by such Lessee, (b) the Capitalized Cost for Group II
         Vehicles that are Lessor-Owned Vehicles, (c) the Net Book Value of
         Group II Repurchase Vehicles as of the end of the Related Month, (d)
         the VINs for those Group II 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 II
         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, (e) 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 II Vehicles to become Casualties), (f)
         the amount of Disposition Proceeds in respect of Group II Vehicles
         sold during the Related Month, (g) the Repurchase Prices received
         during the Related Month and any Guaranteed Payments received pursuant
         to a Repurchase Program during the Related Month, (h) the aggregate
         Depreciation Charges for all Vehicles continuing in the possession of
         the Lessees, (i) the total amount of Monthly Base Rent, Monthly
         Variable Rent, Monthly Supplemental Payments and Termination Payments
         being paid hereunder on such date, (j) information with respect to
         each Lessee necessary for the Servicer to compute the Group II
         Aggregate Asset Amount with respect to each Series of Notes included
         in Group II as of the end of the Related Month, (k) any other charges
         owing from, and credits due to, the Lessee submitting such Statement
         under this Agreement, (l) the percentage calculated pursuant to
         Section 2.5(a)(i) as of the last day of the Related Month, and (m) 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)  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 II Series of Notes), a report of any lawsuits filed
         against the Lessor naming the Lessor as defendant in such action;

                  (vi)  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 II Series of Notes), notice of any final
         judgment rendered against the Lessor; and

                  (vii)  Other.  Promptly, from time to time, such other
         information, documents, or reports respecting the Group II 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.

                                     -41-
<PAGE>   47

         29.6 Taxes and Liabilities. 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 II Vehicles) except 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 II Vehicles leased under this 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.  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
Mayer, Brown & Platt, dated February 25, 2000 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
II 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 II 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;

                                     -42-
<PAGE>   48

                  (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

                  (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 II Vehicle leased hereunder now or hereafter existing or acquired, except
Liens in favor of the Lessor or the Trustee (for the benefit of Group II
Noteholders and/or any related Enhancement Provider) or the Secured Parties 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 II Vehicles to
be used in any manner that would (i) make any Group II Repurchase Vehicle
ineligible for repurchase, or for the guarantee by the related Manufacturer of
the resale price thereof, under an Eligible Repurchase Program or (ii) subject
any Group II Vehicles to confiscation.

         30.5 Restrictions on Distributions. Following the Lease Commencement
Date, Budget will not, and will not permit any of its Subsidiaries to declare,
pay or make any Distribution (as defined in the Credit Agreement) such as is
consistent with and not in contravention of Section 8.2.6 of the Credit
Agreement.

                                     -43-
<PAGE>   49

         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 Group II Series of Notes, 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
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

                                     -44-
<PAGE>   50

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 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:             Bankers Trust Company
                              4 Albany Street
                              New York, New York  10006
                              Attention:       Corporate Trust and Agency
                                               Group/Structured Finance

                              Telephone:       (212) 250-6501
                              Telecopier:      (212) 250-6439

         LESSOR:              Team Fleet Financing Corporation
                              4225 Naperville Road
                              Lisle, Illinois  60535-3662
                              Attention:       Mark Bobek
                              Telephone:       (630) 955-7276
                              Telecopier:      (630) 955-7799

                                     -45-
<PAGE>   51

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. HEADINGS.  Section headings used in this Agreement are for
convenience of reference only and shall not affect the construction of this
Agreement.

         38. 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.

         39. EFFECTIVENESS.  This Agreement shall become effective concurrently
with the issuance of the Series 2000-1 Note as the first Group II Series of
Notes.

                                     -46-
<PAGE>   52

         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: /s/ Mark Bobek
                                               ---------------------------------
                                               Name:  Mark Bobek
                                               Title: President

                                            LESSEES:

                                            BUDGET RENT-A-CAR SYSTEMS, INC.
                                            NYRAC, INC.
                                            PREMIER CAR RENTAL LLC.
                                            RYDER TRS, INC.

                                            By: /s/ Sheri Young
                                               ---------------------------------
                                               Name:  Sheri Young
                                               Title:  Vice President

                                            GUARANTOR:

                                            BUDGET GROUP, INC.

                                            By: /s/ Mark Bobek
                                               ---------------------------------
                                               Name:  Mark Bobek
                                               Title: Vice President, Treasurer

RECEIVED THIS FEBRUARY 25, 2000:

BANKERS TRUST COMPANY, as
Trustee

By: /s/ Franco B. Talavera
   ----------------------------
   Name:  Franco B. Talavera
   Title: Assistant Vice President

<PAGE>   53
                                                                         ANNEX A

                                     ANNEX

                                     TO THE

                 MASTER MOTOR VEHICLE LEASE AGREEMENT GROUP II

                         Dated as of February 25, 2000

                                     among

                       TEAM FLEET FINANCING CORPORATION,
                                   as Lessor

                              BUDGET GROUP, INC.,
                                  as Guarantor

                                      and

                        BUDGET RENT A CAR SYSTEMS, INC.

  and those Subsidiaries, Affiliates and Non-Affiliates of Budget Group, Inc.
                         named on Schedule 1 as Lessees

<PAGE>   54

         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 II Vehicle Orders placed by a Lessee and, simultaneously
therewith, the Lessor shall under the Operating Lease enter into operating
leases with the related Lessee with respect to such Group II 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 24 months
from the Vehicle Lease Commencement Date; provided that the maximum Vehicle
lease term for any 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 II Vehicle not previously disposed of, the applicable Lessee shall,
(a) on behalf of the Lessor, promptly dispose of such Group II 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 II 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.

                                    Annex A
                                      -1-
<PAGE>   55

         6. Lessees's Rights to Purchase Vehicles. The related Lessee will have
the option, exercisable during the Vehicle Term with respect to any Lessor-Owned
Vehicle leased by it hereunder, to purchase such Lessor-Owned Vehicle at a
purchase price equal to the greater of (a) the applicable Net Book Value or (b)
the Fair Market Value of the Group II Vehicle (such greater amount, the "Vehicle
Purchase Price," with respect to Group II Repurchase 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 Due 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 II
Vehicle or Manufacturer Receivable, as applicable, to be transferred to the
applicable Lessee, and the Lien of the Trustee on such Group II 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 II Repurchase Vehicle to the related Manufacturer (a) not
prior to the end of the Minimum Term for such Vehicle, and (b) not later than
the end of the Maximum Term for such Vehicle; provided, however, if for any
reason, a Lessee fails to deliver such a Group II 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 Minimum Term and the expiration of the Maximum Term, such Lessee shall be
obligated to purchase such Group II Repurchase Vehicle as provided in Section 12
of the Agreement. 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 II Repurchase Vehicles returned before the expiration of the Minimum Term,
regardless of actual usage, unless such a Group II 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 II Repurchase
Vehicles pursuant to this Section shall be due and payable to the Lessor. Each
Lessee shall use commercially reasonable efforts to cause all proceeds from the
disposition of Group II Vehicles pursuant to this Section to be paid directly to
the 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 days of receipt thereof for deposit into the 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 45 days prior to the expiration of the Maximum
Term for any Group II Vehicle leased under this Annex A, to require that the
Lessee thereof, and the Lessee shall have the obligation to (a) deliver such
Group II Vehicle to

                                    Annex A
                                      -2-
<PAGE>   56

the Manufacturer for repurchase (if such Group II Vehicle is a Group II
Repurchase Vehicle) or (b) exercise commercially reasonable efforts to arrange
for the sale of such Vehicle to a third party for a price greater than the Net
Book Value thereof (if such Group II Vehicle is a Group II Repurchase Vehicle).
If a sale of the Vehicle to a third party is arranged by the Lessee prior to
the expiration of such Maximum Term in accordance with the foregoing, then the
Lessee shall deliver the Group II Vehicle to the purchaser thereof, the Lien of
the Trustee on the Certificate of Title of such Group II 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 II Repurchase Vehicle on or before the 30th day prior to the
expiration of such Maximum Term, then the Lessee shall cease attempting to
arrange for such a sale and shall return such Group II Repurchase Vehicle to
the applicable Manufacturer or purchase such Group II Vehicle as herein
provided. In no event may any Group II 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 II 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:

                    "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 II 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 II Vehicle, with
               respect to each Group II 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 II Series of Notes for the Related Month less (y) any
               accrued earnings on Permitted Investments in the Group II
               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 II Vehicle, with respect to each Group II
               Repurchase Vehicle, with respect to each Group II Non-Repurchase
               Vehicle, and the denominator of which is the sum of the Net Book
               Values of all

                                    Annex A
                                      -3-
<PAGE>   57

               Group II Vehicles. In the event the Vehicle Lease Commencement
               Date occurs with respect to such Group II Vehicle on a day other
               than the last day of a Related Month, the Monthly Variable Rent
               for such Group II Vehicle shall be equal to the product of (a)
               the Monthly Variable Rent otherwise payable with respect to such
               Group II Vehicle, multiplied by (b) a fraction the numerator of
               which is 12 and the denominator of which is 360, multiplied by
               (c) 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. 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 shall be equal to the
               product of (a) the Monthly Variable Rent otherwise payable with
               respect to such Group II Vehicle for the Related Month,
               multiplied by (b) a fraction the numerator of which is 12 and the
               denominator of which is 360, multiplied by (c) 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.

                    "Rent", with respect to Lessor-Owned Vehicles, means Monthly
               Base Rent and Monthly Variable Rent.

                    "VFR" for any period with respect to any Group II Series of
               Notes, is an interest rate equal to (i) the amount of interest
               accrued during such period with respect to all Group II Series of
               Notes divided by (ii) the average daily Invested Amounts of all
               such Group II 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 II Vehicle leased hereunder by such
               Lessee; and

                    (ii) Monthly Variable Rent. Each Lessee shall pay to the
               Lessor all Monthly Variable Rent that has accrued during the
               Related Month with respect to each Group II Vehicle leased
               hereunder by such Lessee.

                    (iii) Prepayments. On any date, 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 Lessor-Owned
               Vehicles leased 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

                                    Annex A
                                      -4-
<PAGE>   58

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 II 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 II 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 II
Vehicles or any part thereof; (iii) any restriction, prevention or curtailment
of or interference with any use of the Group II Vehicles or any part thereof;
(iv) any defect in or any Lien on title to the Group II 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 II 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 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
II Vehicles leased by it free of all Liens arising during the Term. Upon the
Vehicle Lease Termination Date for each Group II 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,

                                    Annex A
                                      -5-
<PAGE>   59

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 II
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 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 II 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 II
Vehicles without disturbing the ordinary conduct of the Lessees'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 II 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 45 days, such Group II Vehicles at the
location where such Group II Vehicles are normally domiciled. Further, each
Lessee will, during normal business hours and with a notice of three Business
Days, make its records pertaining to the Group II Vehicles available to the
Lessor or the Trustee for inspection at the location where the Lessees's
records are normally domiciled.

         13. Certain Risks of Loss Borne by Lessees. Upon delivery of a Group II
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 II Vehicle, including personal injury or death and
property damage, arising with respect to such Group II Vehicle due to the
manufacture, purchase, acceptance, rejection, delivery, leasing, subleasing,
possession, use, inspection, registration, operation, condition, maintenance,
repair or storage of such Group II 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 II Vehicles
whatsoever other than the rights of possession and use of such Group II
Vehicles as provided by this Agreement. In addition, 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
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
                                      -6-
<PAGE>   60

                                                                         ANNEX B

                                     ANNEX

                                     TO THE

       AMENDED AND RESTATED MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP II

                         Dated as of February 25, 2000

                                     among

                       TEAM FLEET FINANCING CORPORATION,
                                   as Lessor

                              BUDGET GROUP, INC.,
                                  as Guarantor

                                      and

                        BUDGET RENT A CAR SYSTEMS, INC.

   and those Subsidiaries, Affiliates and Non-Affiliates of Budget Group, Inc.
                         named on Schedule 1 as Lessees

<PAGE>   61

         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 lender and borrower, 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 in the Initial
Fleet 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 II
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 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 Agreement and this Lease Annex in respect of
such Group II 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:

                                    Annex B
                                      -1-
<PAGE>   62

               "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 II Vehicle during the Related
          Month.

               "Monthly Finance Rent" with respect to each Due Date and each
          Financed Vehicle subject to this Agreement shall equal the sum of (a)
          an amount equal to the Net Book Value of such Group II Vehicle, with
          respect to each Group II 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 II Series of Notes for
          the Related Month less (y) any accrued earnings on Permitted
          Investments in the Group II 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 II Vehicle, and the denominator of
          which is the sum of the Net Book Values of all Group II Vehicles. In
          the event the Vehicle Lease Commencement Date occurs with respect to
          such Group II Vehicle on a day other than the last day of a Related
          Month, the Monthly Finance Rent for such Group II Vehicle shall be
          equal to the product of (a) the Monthly Finance Rent otherwise payable
          with respect to such Group II Vehicle, multiplied by (b) a fraction
          the numerator of which is 12 and the denominator of which is 360,
          multiplied by (c) 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. In the event the Vehicle
          Lease Expiration Date occurs with respect to such Group II Vehicle on
          a day other than the last day of the Related Month, the Monthly
          Finance Rent for such Group II Vehicle shall be equal to the product
          of (a) the Monthly Finance Rent otherwise payable with respect to such
          Group II Vehicle for the Related Month, multiplied by (b) a fraction
          the numerator of which is 12 and the denominator of which is 360,
          multiplied by (c) 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.

               "Rent", with respect to Financed Vehicles, means Monthly Base
          Rent, Monthly Finance Rent, Monthly Supplemental Rent and Monthly
          Supplemental Payments.

               "VFR" for any period with respect to any Group II Series of
          Notes, is an interest rate equal to (i) the amount of interest accrued
          during such period with respect to all Group II Series of Notes
          divided by (ii) the average daily Invested Amounts of all such Group
          II Series of Notes during such period.

                                    Annex B
                                      -2-
<PAGE>   63

               "Monthly Supplemental Payment" with respect to each Due Date and
          all Group II 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, 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 (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, (y) a Manufacturer Event of Default has
          occurred or (z) the 90th 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 respect to which (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, (y) a Manufacturer Event of Default has occurred or (z) the
          90th day after the Turnback Date with respect thereto has occurred
          during the Related Month and the amount of such Manufacturer
          Receivable has not been received, plus (iv) the aggregate amount of
          all Auction Receivables financed under this Finance Lease with respect
          to which (x) the amount thereof has been paid by the related Auction
          Dealer or (y) the 10th 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 (v) any
          amounts received by the Lessor or the Trustee, or deposited into the
          Collection Account, 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 II Repurchase Vehicle that became a
          Casualty as a result of such Group II Repurchase Vehicle being held
          beyond the

                                    Annex B
                                      -3-
<PAGE>   64

          Maximum Term applicable thereto, such Group II Vehicle will be deemed
          to have become a Casualty upon the date the Maximum Term expires.

          (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 II Vehicle leased under the Finance Lease by
          such Lessee during the Related Month;

               (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 II Vehicle leased under the Finance Lease
          by such Lessee during the Related Month; and

               (iii) 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 II 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 Group II Master Lease, any
     remaining Base Amount, plus all other amounts payable by the Lessees under
     the Financing Lease shall be immediately due and payable.

          (d) On any date, 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 Financed Vehicles leased by such Lessee. 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 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 II 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 II Vehicle or the manufacture, purchase, acceptance,
rejection, ownership, delivery, leasing, subleasing, possession, use,
inspection,

                                    Annex B
                                      -4-
<PAGE>   65

registration, operation, condition, maintenance, repair, storage,
sale, return or other disposition of such Group II 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 II Vehicle pursuant to this Paragraph 8) and, prior
to the expiration of the Maximum Term applicable thereto, the Lessee thereof
shall purchase such Texas Vehicle or Hawaii Vehicle (including any such Group
II Vehicle which has become a Casualty) at a purchase price equal to the Net
Book Value of such Group II 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 Vehicle during the Related
Month in which such Group II 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 II 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 and Auction
Receivables. In addition, each Lessee will have the option, exercisable with
respect to any Manufacturer Receivable or Auction Receivable related to a
Financed Vehicle which was leased by such Lessee under this Agreement, to
purchase such Manufacturer Receivable or Auction Receivable for a price equal
to the amount due from the Manufacturer or Auction Dealer under such
Manufacturer Receivable or Auction Receivable, as applicable, in which event
the Lessee will pay such amount to the Trustee on or before the Due 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 or Auction Receivable, as applicable, to be
transferred to the Lessee, and the Lien of the Trustee in such Manufacturer
Receivable or Auction Receivable, as applicable, will automatically be released
concurrently with or promptly after the purchase price for such Manufacturer
Receivable or Auction Receivable, as applicable (and any unpaid Monthly Base
Rent, unpaid Monthly Variable Rent and other unpaid charges, payments and
amounts), is paid by the Lessee to the Trustee.

                                      * * *

                                    Annex B
                                      -5-
<PAGE>   66

                                                                      Schedule I

                    LESSEES AS OF SERIES 2000-1 CLOSING DATE

1.       BUDGET RENT-A-CAR SYSTEMS, INC.

2.       NYRAC, INC.

3.       PREMIER CAR RENTAL LLC

4.       RYDER TRS, INC.

<PAGE>   67

                                                                     Schedule II

                                NOTICE ADDRESSES

BUDGET RENT-A-CAR SYSTEMS, INC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-7276
Telecopier:       630-955-7808

NYRAC, INC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-7276
Telecopier:       630-955-7808

PREMIER CAR RENTAL LLC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-7276
Telecopier:       630-955-7808

RYDER TRS, INC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-7276

<PAGE>   68

Telecopier:       630-955-7808

<PAGE>   69

                                                                   Schedule 28.8

                               BUSINESS LOCATIONS

BUDGET RENT-A-CAR SYSTEMS, INC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-1900
Telecopier:       630-955-7808

NYRAC, INC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-1900
Telecopier:       630-955-7808

PREMIER CAR RENTAL LLC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-1900
Telecopier:       630-955-7808

RYDER TRS, INC.

Address:          4225 Naperville Road
                  Lisle, IL

Attention:        Mark Bobek
Telephone:        630-955-1900

<PAGE>   70

Telecopier:       630-955-7808

<PAGE>   71

                                 ATTACHMENT A-1
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group II

                           SCHEDULE OF INITIAL FLEET

          Information on Refinanced Vehicles (including Initial Fleet)
                            and Eligible Receivables

Refinanced Vehicles (including Initial Fleet)

1        Vehicle Model
2        Vehicle Identification Number (last eight digits) (VIN)
3        Vehicle Lease Commencement Date
4        Capitalized Cost
5        Monthly Base Rent
6        Garaging State
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)

<PAGE>   72

                                 ATTACHMENT A-2
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group II

                     Group II 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        Garaging State

<PAGE>   73

                                  ATTACHMENT B
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group II

                           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 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.

         IN WITNESS WHEREOF, Team Fleet Financing Corporation has caused this
instrument to be executed on its behalf by its ____________________________
this _____ day of __________, 20__.

                                                TEAM FLEET FINANCING CORPORATION

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

<PAGE>   74

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-2
<PAGE>   75

                                  ATTACHMENT C
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group II

                            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 Master Motor Vehicle
Lease Agreement-Group II, dated as of February 25, 2000 (as amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, the "Lease"), among TFFC, Budget 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:

<PAGE>   76

                               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 Mayer, Brown & Platt, dated February 25, 2000,
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.

         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:

                                      C-2
<PAGE>   77

Consented to by:

BUDGET GROUP, INC.

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

                                      C-3

<PAGE>   78

                                  ATTACHMENT D
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group II

                              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 II
Vehicles listed and described in Schedule 1 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 February 25, 2000 among the Buyer, Budget and the Trustee,
among the Buyer, Budget Group, Inc. ("Budget"), a Delaware corporation, as
Servicer and Budget Interestholder, and 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.

<PAGE>   79

         IN WITNESS WHEREOF, the Seller has executed this Bill of Sale as of
_______________, 20___.

                                           [SELLER]

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

<PAGE>   80

                                                                      SCHEDULE 1
                                                                 TO BILL OF SALE

                                    VEHICLES
                 <TABLE>
                 <CAPTION>
                 VIN                                NET BOOK VALUE
                 ---                                --------------
                 <S>                                <C>

                 -------------                      --------------
                                                    $
                 Total:                             ==============
                 </TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]