Document:

<PAGE>
                                                                   Exhibit 10.3

                    TWELFTH AMENDMENT, WAIVER AND CONSENT TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         THIS TWELFTH AMENDMENT, WAIVER AND CONSENT TO AMENDED AND RESTATED
CREDIT AGREEMENT, dated as of April 8, 2002 (this "Amendment"), is made by and
among BUDGET GROUP, INC., a Delaware corporation (the "Borrower"), the Lenders
(such capitalized term and all other capitalized terms not otherwise defined
herein shall have the meanings provided for in Article I below) parties hereto
and CREDIT SUISSE FIRST BOSTON, as administrative agent (in such capacity, the
"Administrative Agent") for the Lenders.

                              W I T N E S S E T H:

         WHEREAS, the Borrower, the Lenders and the Agents have heretofore
entered into that certain Amended and Restated Credit Agreement, dated as of
June 19, 1998 (as amended by the First Amendment to Amended and Restated Credit
Agreement dated as of September 11, 1998, the Second Amendment to Amended and
Restated Credit Agreement dated as of March 18, 1999, the Third Amendment to
Amended and Restated Credit Agreement dated as of December 22, 1999, the Fourth
Amendment and Waiver to Amended and Restated Credit Agreement dated as of
September 30, 2000, the Fifth Amendment to Amended and Restated Credit
Agreement, dated as of January 10, 2001, the Sixth Amendment to Amended and
Restated Credit Agreement, dated as of February 9, 2001, the Seventh Amendment
and Consent to Amended and Restated Credit Agreement, dated as of June 19, 2001,
the Eighth Amendment and Consent to Amended and Restated Credit Agreement, dated
as of July 31, 2001, the Ninth Amendment, Waiver and Consent to Amended and
Restated Credit Agreement dated as of December 20, 2001, the Tenth Amendment,
Waiver and Consent to Amended and Restated Credit Agreement dated as of February
7, 2002, and the Eleventh Amendment, Waiver and Consent to Amended and Restated
Credit Agreement dated as of March 7, 2002, and as further amended,
supplemented, amended and restated or otherwise modified prior to the date
hereof, the "Credit Agreement");

         WHEREAS, the Borrower desires to extend certain waivers and consents
obtained in the Tenth Amendment and to obtain certain related additional waivers
and consents from the requisite Lenders;

         WHEREAS, absent the waivers and amendments contained herein the
Borrower would be unable to, among other things, request the issuance of General
Letters of Credit for its account because the Lenders' commitment to issue such
General Letters of Credit would have terminated as a result of the occurrence of
Events of Default on the part of the Borrower, and the Borrower desires to be
able to request and have issued after the date hereof General Letters of Credit
for its account in support of insurance requirements of the Borrower and its
Subsidiaries; and

<PAGE>

         WHEREAS, the requisite Lenders are willing, on and subject to the terms
and conditions set forth below (including, without limitation, the amendments to
the Credit Agreement provided for herein), to grant the waivers and consents
provided below (the Credit Agreement, as amended and otherwise modified pursuant
to the terms of this Amendment, being referred to as the "Amended Credit
Agreement");

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the Borrower and the requisite Lenders hereby agree
as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION I.1.  Certain Definitions.  The following terms (whether or not
underscored) when used in this Amendment shall have the following meanings (such
meanings to be equally applicable to the singular and plural forms thereof):

         "Administrative Agent" is defined in the preamble.

         "Amended Credit Agreement" is defined in the third recital.

         "Amendment" is defined in the preamble.

         "Borrower" is defined in the preamble.

         "Credit Agreement" is defined in the first recital.

         SECTION I.2.  Other Definitions.  Terms for which meanings are provided
in the Amended Credit Agreement are, unless otherwise defined herein or the
context otherwise requires, used in this Amendment with such meanings.

                                   ARTICLE II

                        AMENDMENTS, WAIVERS AND CONSENTS

         SECTION II.1.    Amendments.  Subject to the satisfaction of the
conditions set forth in Article III, the Credit Agreement is hereby amended in
accordance with this Section 2.1.

         SECTION II.1.1.  Amendments to Section 1.1 ("Defined Terms") of the
Credit Agreement.  Section 1.1 of the Credit Agreement is hereby amended by:

<PAGE>

                  (a)  inserting in such Section the following definitions in
         the appropriate alphabetical order:

                  "`Acceleration Event' means all or any portion of the
         principal evidenced by, or interest on, any Senior Note or any Series B
         Note shall have been accelerated."

                  "`Interest Payment Notice' is defined in Section 8.1.20."

                  "`LC Collateralization Subaccount' is defined in Section 4.2."

                  "`Twelfth Amendment' means the Twelfth Amendment, Waiver and
         Consent to Amended and Restated Credit Agreement, dated as of April 8,
         2002, among the Borrower, the Lenders parties thereto and the
         Administrative Agent."

                  "`Twelfth Amendment Effective Date' means the date the Twelfth
         Amendment became effective in accordance with its terms."

                  "`Twelfth Amendment Extension Event' means payment of the
         extension fee set forth in Section 5.4 of the Twelfth Amendment by the
         Borrower in the amount and on the date set forth therein pursuant to
         the terms thereof."

                  (b) amending the definition of "Applicable Commitment Fee"
         contained in such Section by deleting the words "for the period from
         the Sixth Amendment Effective Date to the date on which the
         Administrative Agent receives the Compliance Certificate for the Fiscal
         Quarter ending on or about March 31, 2002" contained in the last
         sentence of such definition and inserting the words "as of any date
         occurring on or subsequent to the Sixth Amendment Effective Date" in
         lieu thereof;

                  (c) amending the definition of "Applicable Margin" contained
         in such Section by deleting the words "for the period from the Sixth
         Amendment Effective Date to the date on which the Administrative Agent
         receives the Compliance Certificate for the Fiscal Quarter ending on or
         about March 31, 2002" contained in the last sentence of such definition
         and inserting the words "as of any date occurring on or subsequent to
         the Sixth Amendment Effective Date" in lieu thereof; and

                  (d) amending the definition of "Eligible Cash and Cash
         Equivalent Investments" contained in such Section by inserting the
         following new sentence at the end of such definition:

                  "Notwithstanding anything to the contrary herein, `Eligible
                  Cash and Cash Equivalent Investments' shall not include any
                  cash or Cash Equivalent Investments held in the LC
                  Collateralization Subaccount.".

                                      -3-

<PAGE>

         SECTION II.1.2. Amendment to Section 4.2 ("Issuances and Extensions")
of the Credit Agreement.  Section 4.2 of the Credit Agreement is hereby amended
by amending and restating the last sentence thereof to read in its entirety as
follows:

         "Notwithstanding anything to the contrary herein, on and after the
         Ninth Amendment Effective Date, no Letter of Credit may be issued and
         the Stated Amount of any Letter of Credit then existing may not be
         increased, other than

                           (i)  the issuance of new Enhancement Letters of
                  Credit or the increase in the Stated Amount of existing
                  Enhancement Letters of Credit, provided that

                                    (A) the aggregate Stated Amount of such
                           newly issued Enhancement Letters of Credit, together
                           with the aggregate increases in the Stated Amount of
                           such existing Enhancement Letters of Credit, does not
                           exceed (1) $53,550,000 or (2) if the Twelfth
                           Amendment Extension Event shall have occurred,
                           $58,550,000,

                                    (B) concurrently with any such issuance or
                           increase, the aggregate Stated Amount of all other
                           Enhancement Letters of Credit is reduced
                           dollar-for-dollar in an amount equal to the aggregate
                           Stated Amount of such newly issued Enhancement
                           Letters of Credit and such increases in the Stated
                           Amount of such existing Enhancement Letters of
                           Credit, and

                                    (C) in the case of issuances of new
                           Enhancement Letters of Credit, or increases in the
                           Stated Amount of existing Enhancement Letters of
                           Credit, on or after the Ninth Amendment Effective
                           Date, where such newly issued Enhancement Letters of
                           Credit and such increases to such existing
                           Enhancement Letters of Credit are issued or
                           increased, as the case may be, in connection with a
                           decrease of the Stated Amount of an existing
                           Enhancement Letter of Credit as a result of, or
                           relating to,

                                            (1) the amortization of the medium
                                    term notes for which such decreased,
                                    existing Enhancement Letter of Credit
                                    provided credit enhancement or support, the
                                    aggregate Stated Amount of such newly issued
                                    Enhancement Letters of Credit and such
                                    increases to such increased, existing
                                    Enhancement Letters of Credit shall not
                                    exceed (x) $5,000,000 or (y) if the Twelfth
                                    Amendment Extension Event shall have
                                    occurred, $10,000,000, and

                                           (2) the issuance of a new
                                    subordinated class of notes under an
                                    existing medium term note program, (x) the
                                    terms and conditions (including the
                                    collateral being provided therefor) of such
                                    newly issued subordinated class of notes
                                    shall be satisfactory

                                      -4-

<PAGE>

                                    in all respects to the Lender Committee
                                    Members holding a majority of the Commitment
                                    Amount held in the aggregate by them and (y)
                                    the aggregate Stated Amount of such newly
                                    issued Enhancement Letters of Credit and
                                    such increases to such increased, existing
                                    Enhancement Letters of Credit shall not
                                    exceed $30,000,000, and

                           (ii) the issuance of General Letters of Credit or the
                  increase in the Stated Amount of existing General Letters of
                  Credit, in each case for the purpose of supporting the
                  insurance requirements of the Borrower and its Subsidiaries,
                  provided that the aggregate Stated Amount of such newly issued
                  General Letters of Credit, together with the aggregate
                  increases in the Stated Amount of such existing General
                  Letters of Credit, does not exceed

                                    (A) subsequent to the Ninth Amendment
                           Effective Date and prior to the Tenth Amendment
                           Effective Date, $3,500,000,

                                    (B) on or following the Tenth Amendment
                           Effective Date and prior to the Eleventh Amendment
                           Effective Date, $5,250,000,

                                    (C) on or following the Eleventh Amendment
                           Effective Date and prior to the Twelfth Amendment
                           Effective Date, $7,000,000 or

                                    (D) on or following the Twelfth Amendment
                           Effective Date, $8,750,000 so long as (1) each
                           General Letter of Credit that is issued on or
                           following the Twelfth Amendment Effective Date is
                           cash collateralized (it being acknowledged and agreed
                           that such cash collateralization shall (x) not be in
                           limitation of the grant by the Borrower of a security
                           interest in its cash held in its Deposit Accounts, as
                           defined in the Borrower Security Agreement (including
                           its Master Deposit Accounts, as defined in the
                           Borrower Security Agreement), and (y) consist of cash
                           collateral in an amount equal to 100% of the Stated
                           Amount of such General Letter of Credit held in a
                           segregated subaccount (the "LC Collateralization
                           Subaccount") of the existing Master Deposit Account
                           maintained at Harris Trust and Savings Bank, Chicago,
                           Illinois, which cash collateral shall not be released
                           to the Borrower or any of its Subsidiaries unless and
                           until (in addition to all other conditions to the
                           release of collateral) such General Letter of Credit
                           is no longer outstanding and any Reimbursement
                           Obligations in respect thereof shall have been paid
                           in full, and (2) following all such issuances, the
                           Letter of Credit Outstandings do not exceed
                           $430,000,000."

                                      -5-

<PAGE>

         SECTION II.1.3.   Amendment to Section 8.1.13 ("High Tide Debentures
Deferral") of the Credit Agreement. Clause (a) of Section 8.1.13 of the Credit
Agreement is hereby amended by:

                  (a) inserting the clause lettering "(i)" followed by the word
         "the" immediately following the words "the High Tides Debentures will
         be deferred for" contained therein and immediately preceding the words
         "five consecutive quarterly interest payments beginning with the
         interest payment that would otherwise have been due on March 15, 2001"
         contained in such clause (a); and

                  (b) inserting the word "and" immediately following such
         clause (a); and

                  (c) inserting a new subclause (ii) immediately following such
         clause (a) and the word "and" inserted at the end thereof pursuant to
         clause (b) above, which new subclause shall read as follows:

                  "(ii) the seven consecutive quarterly interest payments
                  beginning with the interest payment that would otherwise have
                  been due following the five consecutive quarterly interest
                  payments that were required to have been deferred pursuant to
                  the immediately preceding subclause (i)".

         SECTION II.1.4. Amendment to Section 8.1.16 ("Additional Collateral")
of the Credit Agreement. Section 8.1.16 of the Credit Agreement is hereby
amended by inserting a new sentence at the end of such Section, which new
sentence shall read in its entirety as follows:

                  "Not in limitation of, but in furtherance of, the foregoing,
         the Borrower shall fulfill its obligations under the preceding
         provisions of this Section 8.1.16 of the Credit Agreement as such
         provisions relate to each of (i) BTI (UK) Plc, Budget Leasing Ltd. and
         Polyhire Ltd. no later than April 19, 2002, (ii) Budget Deutschland
         GmbH and Autohansa Autovermietung E. Siebert GmbH no later than April
         23, 2002 and (iii) Business Rent a Car GmbH no later than April 23,
         2002.".

         SECTION II.1.5.   Amendment to Section 8.1.17 ("Restructuring Plan,
etc.")of the Credit Agreement. Section 8.1.17 of the Credit Agreement is hereby
amended by amending and restating such Section to read in its entirety as
follows:

                  "SECTION 8.1.17.  Restructuring Plan, etc.  The Borrower shall
          furnish, or shall cause to be furnished, to each Lender:

                          (a) (i) on or prior to April 24, 2002, its plan (the
                  "Restructuring Plan") (A) for restructuring the Indebtedness
                  of it and its Subsidiaries, (B) for obtaining financing for
                  the acquisition (or refinancing) of Vehicles necessary to meet
                  its business plan, and (C) for meeting its liquidity needs and
                  (ii) on or prior to May 14, 2002 (but in no event earlier than
                  May 9, 2002), a revised Restructuring Plan

                                      -6-
<PAGE>

                  addressing the same matters referred to in the immediately
                  preceding subclause (i) but updated to reflect any change in
                  the circumstances, results, prospects or projections of the
                  Borrower and its Subsidiaries since the date that the
                  Restructuring Plan referred to in such subclause (i) was
                  prepared, and

                           (b) (i) on or prior to April 24, 2002, a business
                  plan, including cash flow projections, for the Borrower and
                  its Subsidiaries and (ii) on or prior to May 14, 2002 (but in
                  no event earlier than May 9, 2002), a revised business plan,
                  including cash flow projections, for the Borrower and its
                  Subsidiaries updated to reflect any change in the
                  circumstances, results, prospects or projections of the
                  Borrower and its Subsidiaries since the date that the business
                  plan referred to in the immediately preceding subclause (i)
                  was prepared, in each case, in the event the new equity
                  contemplated by the preliminary Restructuring Plan delivered
                  to the Lenders on February 25, 2002 is not raised and the
                  Borrower and its Subsidiaries are not able to acquire the
                  increased number of Vehicles that they have customarily
                  acquired to satisfy seasonal customer rental activity and
                  assuming (including details with respect to whether such
                  assumptions are reasonable at such time) agreements are
                  entered into that permit the Borrower and its Subsidiaries to
                  continue using their Vehicles for retail rental operations on
                  and after May 31, 2002, without any claim of any creditor that
                  would prevent (or have the effect of preventing) such
                  continued usage,

         each such plan to be in form and scope reasonably satisfactory to the
         Lender Committee Members holding a majority of the Commitment Amount
         held in the aggregate by them; provided that, if any such plan is
         initially not reasonably satisfactory in form and scope to such Lender
         Committee Members, the Borrower shall have three Business Days from its
         receipt of notice from such Lender Committee Members that such plan is
         not in form and scope reasonably satisfactory to such Lender Committee
         Members (which notice shall set forth the reasons such plan is not
         satisfactory) to furnish a revised plan that is in form and scope
         reasonably satisfactory to such Lender Committee Members.".

         SECTION II.1.6.   Amendment to Section 8.2.6 ("Restricted Payments,
etc.")of the Credit Agreement. The proviso to clause (c) of Section 8.2.6 of the
Credit Agreement is hereby amended by deleting the date "June 1, 2002" contained
therein and inserting the date "March 1, 2004" in lieu thereof.

         SECTION II.1.7.   Amendment to Section 9.2 ("Action if Bankruptcy") of
the Credit Agreement. Section 9.2 of the Credit Agreement is hereby amended by:

                  (a)  amending and restating the heading thereof to read in its
entirety as follows:

                  "Action if Bankruptcy; Failure to Give Interest Payment Notice
                   in Respect of Series B Notes."; and

                                      -7-

<PAGE>

                  (b) inserting the words "or Section 9.1.3 (in respect of, and
         solely in respect of, the Borrower defaulting in the due performance
         and observance of its obligations under Section 8.1.20 to give an
         Interest Payment Notice in respect of the payment of interest on any
         Series B Note)" immediately following the words "clauses (a) through
         (d) of Section 9.1.9" and immediately preceding the words "shall
         occur,", in each case, therein.

         SECTION II.1.8.  Amendment to Section 9.3 ("Action if Other Event of
Default") of the Credit Agreement. Section 9.3 of the Credit Agreement is hereby
amended by inserting the words "or Section 9.1.3 (in respect of, and solely in
respect of, the Borrower defaulting in the due performance and observance of its
obligations under Section 8.1.20 to give an Interest Payment Notice in respect
of the payment of interest on any Series B Note))" immediately following the
words "clauses (a) through (d) of Section 9.1.9" and immediately preceding the
words") shall occur for any reason,", in each case, therein.

         SECTION II.2.  Waivers and Consents.  Subject to the satisfaction of
the conditions set forth in Article III, the Lenders, as of the date hereof,
hereby:

                  (a) so long as an Interest Payment Notice has not been given
         and an Acceleration Event has not occurred, waive, until the earliest
         of (x) (1) April 30, 2002, or (2) if the Twelfth Amendment Extension
         Event shall have occurred, May 31, 2002, (y) the giving of an Interest
         Payment Notice by the Borrower and (z) the occurrence of an
         Acceleration Event, compliance by the Borrower with the provisions of
         Section 8.2.4 of the Credit Agreement with respect to the fourth Fiscal
         Quarter of the 2001 Fiscal Year and the first Fiscal Quarter of the
         2002 Fiscal Year;

                 (b) so long as an Interest Payment Notice has not been given
        and an Acceleration Event has not occurred, waive, until the earliest of
        (x) (1) April 30, 2002, or (2) if the Twelfth Amendment Extension Event
        shall have occurred, May 31, 2002, (y) the giving of an Interest Payment
        Notice by the Borrower and (z) the occurrence of an Acceleration Event,
        the Default arising under Section 9.1.5(a) of the Credit Agreement as a
        result of the failure of the Borrower to pay interest on its Senior
        Notes on April 1, 2002 or its Series B Notes on April 29, 2002;

                (c) (i) so long as an Interest Payment Notice has not been
         given and an Acceleration Event has not occurred, waive, until the
         earliest of (w) April 16, 2002, (x) the date that the financial
         statements referred to hereinafter are filed by the Borrower with the
         SEC, (y) the giving of an Interest Payment Notice by the Borrower and
         (z) the occurrence of an Acceleration Event, compliance by the Borrower
         with the provisions of clauses (b) and (c) of Section

                                      -8-

<PAGE>

         8.1.1 of the Credit Agreement with respect to the delivery of its
         annual audited financial statements for the 2001 Fiscal Year and the
         related Compliance Certificate, respectively; and (ii) so long as the
         Borrower delivers such financial statements and such Compliance
         Certificate by the earliest such date referred to in the preceding
         subclause (c)(i) in accordance with the terms of clauses (b) and (c) of
         Section 8.1.1 of the Credit Agreement, the Lenders as of the date
         hereof hereby consent to the inclusion of an Impermissible
         Qualification of the type described in clause (a) of the definition
         thereof in the independent public accountant's certification of such
         audited financial statements; and

                  (d) consent to the Borrowing Base Amount calculated as of the
         last day of February 2002 to be less than the aggregate unpaid
         principal amount of all Loans and Letter of Credit Outstandings
         outstanding during the period in which such Borrowing Base Amount is in
         effect under the terms of the Credit Agreement, without requiring any
         mandatory prepayments and/or cash collateralization under clause (b) of
         Section 3.1.1 of the Credit Agreement;

                  (e) so long as an Interest Payment Notice has not been given
         and an Acceleration Event has not occurred, consent, until the earliest
         of (x) (1) April 30, 2002, or (2) if the Twelfth Amendment Extension
         Event shall have occurred, May 31, 2002, (y) the giving of an Interest
         Payment Notice by the Borrower and (z) the occurrence of an
         Acceleration Event, to the Borrowing Base Amount calculated as of the
         last day of March 2002 to be less than the aggregate unpaid principal
         amount of all Loans and Letter of Credit Outstandings outstanding
         during the period in which such Borrowing Base Amount is in effect
         under the terms of the Credit Agreement, without requiring any
         mandatory prepayments and/or cash collateralization under clause (b) of
         Section 3.1.1 of the Credit Agreement; provided that the Borrowing Base
         Amount is not less than $275,000,000 as of the last day of March 2002;
         and

                  (f) so long as the Twelfth Amendment Extension Event has
         occurred, an Interest Payment Notice has not been given and an
         Acceleration Event has not occurred, consent, until the earliest of (x)
         May 31, 2002, (y) the giving of an Interest Payment Notice by the
         Borrower and (z) the occurrence of an Acceleration Event, to the
         Borrowing Base Amount calculated as of the last day of April 2002 to be
         less than the aggregate unpaid principal amount of all Loans and Letter
         of Credit Outstandings outstanding during the period in which such
         Borrowing Base Amount is in effect under the terms of the Credit
         Agreement, without requiring any mandatory prepayments and/or cash
         collateralization under clause (b) of Section 3.1.1 of the Credit
         Agreement; provided that the Borrowing Base Amount is not less than
         $275,000,000 as of the last day of April 2002.

                                   ARTICLE III

                           CONDITIONS TO EFFECTIVENESS

         This Amendment, and the amendments and modifications contained herein,
shall be and shall become effective as of the date hereof subject to the
satisfaction of each of the conditions set forth in this Article III to the
satisfaction of the Administrative Agent.

                                      -9-

<PAGE>

         SECTION III.1. Execution of Counterparts.  The Administrative Agent
shall have received counterparts of this Amendment, duly executed and delivered
on behalf of the Borrower and each of the requisite Lenders.

         SECTION III.2. Effective Date Certificate. The Administrative Agent
shall have received, with counterparts for each Lender, a certificate, dated the
effective date of this Amendment (the "Twelfth Amendment Effective Date"),
appropriately completed and duly executed and delivered by an Authorized Officer
of the Borrower in which certificate the Borrower shall agree and acknowledge
that the statements made therein shall be deemed to be true and correct
representations and warranties of the Borrower made as of such date and, at the
time such certificate is delivered, such statements shall in fact be true and
correct.

         SECTION III.3. Execution of Affirmation and Acknowledgment. The
Administrative Agent shall have received an affirmation and acknowledgment,
dated the effective date of this Amendment and in form and substance
satisfactory to it, duly executed and delivered by each Guarantor and any other
Obligor that has granted a Lien pursuant to any Loan Document.

         SECTION III.4. Fees and Expenses. (a) Amendment, Consent and Waiver
Fee. The Borrower shall have paid in cash no later than 3:00 p.m., New York time
on April 8, 2002, without setoff, deduction or counterclaim, a non-refundable
amendment, consent and waiver fee to the Administrative Agent for the pro rata
account of each Lender that has executed and delivered (including delivery by
way of facsimile) a copy of this Amendment to the attention of Kenneth Suh at
Mayer, Brown, Rowe & Maw, 1675 Broadway, New York, New York 10019 (19th Floor),
telecopy number 212-262-1910 at or prior to 12:00 noon, New York time, on April
8, 2002 (as such time may be extended by the Borrower), in the amount of 15
basis points of such Lender's Commitment as of the date hereof. Such amendment,
consent and waiver fee shall be paid in consideration for such Lender's
consenting to (x) the waivers and consents specifically set forth in Section 2.2
for the period from the date hereof through April 30, 2002 (or such shorter
period of time as specifically provided in Section 2.2) and (y) the amendments
specifically set forth in Section 2.1.

         (b) Fees and Expenses. The Borrower shall have paid to the
Administrative Agent (and all other Persons entitled thereto) all fees and
expenses due and payable on or prior to the Twelfth Amendment Effective Date
pursuant to Section 5.5 (to the extent then invoiced) and pursuant to the Credit
Agreement (including all previously invoiced fees and expenses).

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION IV.1.  Representations and Warranties.  In order to induce the
requisite Lenders and the Administrative Agent to enter into this Amendment, the
Borrower hereby represents and

                                      -10-

<PAGE>

warrants to the Administrative Agent, the Issuer and each Lender, as of the date
hereof, as follows:

                  (a) the representations and warranties set forth in Article
         VII of the Credit Agreement (excluding, however, those contained in
         Section 7.6 and Section 7.7 of the Credit Agreement) and in each other
         Loan Document are, in each case, true and correct (unless stated to
         relate solely to an earlier date, in which case such representations
         and warranties are true and correct as of such earlier date);

                  (b) except as disclosed by the Borrower pursuant to reports on
         Form 10-Q and Form 10-K filed with the Securities and Exchange
         Commission prior to the date hereof, there has been no material adverse
         change in the business, property, operations, assets, liabilities,
         condition (financial or otherwise) or prospects of the Borrower and its
         Subsidiaries, taken as a whole, since December 31, 1997;

                  (c) except as disclosed by the Borrower to the Agents, the
         Issuer and the Lenders pursuant to Section 7.7 of the Credit Agreement

                           (i) no labor controversy, litigation, arbitration or
                  governmental investigation or proceeding is pending or, to the
                  best knowledge of the Borrower, threatened against the
                  Borrower or any of its Subsidiaries which might materially
                  adversely affect the Borrower's consolidated business,
                  operations, assets, revenues, properties or prospects or which
                  purports to affect the legality, validity or enforceability of
                  this Agreement, the Notes or any other Loan Document; and

                           (ii) no development has occurred in any labor
                  controversy, litigation, arbitration or governmental
                  investigation or proceeding disclosed pursuant to Section 7.7
                  of the Credit Agreement which might materially adversely
                  affect the consolidated businesses, operations, assets,
                  revenues, properties or prospects of the Borrower and its
                  Subsidiaries;

                  (d) after giving effect to this Amendment, no Default has
         occurred and is continuing, and neither the Borrower nor any of its
         Subsidiaries nor any other Obligor is in material violation of any law
         or governmental regulation or court order or decree;

                  (e) this Amendment has been duly authorized, executed and
         delivered by the Borrower and constitutes a legal, valid and binding
         obligation of the Borrower, enforceable against it in accordance with
         its terms, except to the extent the enforceability hereof may be
         limited by (i) the effect of bankruptcy, insolvency, reorganization,
         moratorium or other similar laws now or hereafter in effect relating to
         or affecting the rights and remedies of creditors generally and (ii)
         the effect of general principles of equity, whether enforcement is
         considered in a proceeding in equity or at law; and

                                      -11-

<PAGE>

                  (f) the execution, delivery and performance by the Borrower
         and its Subsidiaries of this Amendment and each other Loan Document
         executed or to be executed by any of them in connection therewith are
         within the Borrower's and each such Subsidiary's corporate powers, have
         been duly authorized by all necessary corporate action, and do not (i)
         contravene the Borrower's or such Subsidiary's Organic Documents, (ii)
         contravene any contractual restriction, law or governmental regulation
         or court decree or order binding on or affecting the Borrower or such
         Subsidiary or (iii) result in, or require the creation or imposition
         of, any Lien (other than the Liens created under the Loan Documents in
         favor of the Administrative Agent for the benefit of the Secured
         Parties) on any of the Borrower's or such Subsidiary's properties.

         SECTION IV.2. Full Disclosure. Except as corrected by written
information delivered to the Agents and the Lenders reasonably prior to the date
on which this representation is made, all factual information heretofore or
contemporaneously furnished by the Borrower in writing to any Agent, the Issuer
or any Lender for purposes of or in connection with this Amendment or any
transaction contemplated hereby is true and accurate in every material respect
and such information is not incomplete by omitting to state any material fact
necessary to make such information not misleading. All projections delivered to
any Agent or any Lender by or on behalf of the Borrower have been prepared in
good faith by the Borrower and represent the best estimates of the Borrower, as
of the date hereof, of the reasonably expected future performance of the
businesses reflected in such projections.

         SECTION IV.3. Compliance with Credit Agreement. After giving effect to
this Amendment, each Obligor is in compliance with all the terms and conditions
of the Credit Agreement and the other Loan Documents to be observed or performed
by it thereunder, and no Default has occurred and is continuing. Without
limiting the effect of any of the representations and warranties of this Article
IV, the Borrower has no reason to believe that it and its Subsidiaries will not
be in compliance with all the terms and conditions of the Credit Agreement and
the other Loan Documents during the period from the Twelfth Amendment Effective
Date through and including May 31, 2002, including the covenant that each lessee
under a Lease will make all payments required to be made by it thereunder on the
date such payments are required to be made thereunder and that each such lessee
will comply in all respects with each of its other obligations thereunder.

                                    ARTICLE V

                                  MISCELLANEOUS

         SECTION V.1. Full Force and Effect; Limited Amendment. Except as
expressly provided herein, all of the representations, warranties, terms,
covenants, conditions and other provisions of the Credit Agreement and the other
Loan Documents shall remain in full force and effect in accordance with their
respective terms and are in all respects hereby ratified and

                                      -12-

<PAGE>

confirmed. The amendments, waivers and consents set forth herein shall be
limited precisely as provided for herein to the provisions expressly amended
herein, waived hereby or consented to hereby and shall not be deemed to be an
amendment to, waiver of, consent to or modification of any other term or
provision of the Credit Agreement, any other Loan Document referred to therein
or herein or of any transaction or further or future action on the part of the
Borrower or any other Obligor which would require the consent of any of the
Lenders under the Credit Agreement or any of the other Loan Documents.

         SECTION V.2. Loan Document Pursuant to Credit Agreement. This Amendment
is a Loan Document executed pursuant to the Credit Agreement and shall be
construed, administered and applied in accordance with all of the terms and
provisions of the Credit Agreement (and, following the date hereof, the Amended
Credit Agreement). Any breach of any representation or warranty or covenant or
agreement contained in this Amendment shall be deemed to be an immediate Event
of Default for all purposes of the Credit Agreement and the other Loan
Documents.

         SECTION V.3.  Further Assurances.  The Borrower hereby agrees that it
will take any action that from time to time may be reasonably necessary to
effectuate the amendments contemplated herein.

         SECTION V.4. Extension Fee. If the condition set forth in Section 3.1
shall have been satisfied and in consideration for extending the waivers and
consents specifically set forth in Section 2.2 from May 1, 2002 through May 31,
2002 (or such shorter period of time as specifically provided in Section 2.2),
the Borrower shall pay, without setoff, deduction or counterclaim, a
non-refundable extension fee for the account of each Lender that has executed
and delivered (including delivery by way of facsimile) a copy of this Amendment
to the attention of Kenneth Suh at Mayer, Brown, Rowe & Maw, 1675 Broadway, New
York, New York 10019 (19th Floor), telecopy number 212-262-1910 at or prior to
12:00 noon, New York time, on April 8, 2002 (as such time may be extended by the
Borrower), in the amount of 35 basis points of such Lender's Commitment as of
the date hereof. The aggregate amount of such extension fee shall be paid in
cash at or prior to 11:00 a.m., New York time, on May 1, 2002 to the
Administrative Agent for the pro rata account of the Lenders entitled to receive
such extension fee.

        SECTION V.5. Fees and Expenses. The Borrower shall pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent in connection with
the preparation, negotiation, execution and delivery of this Amendment and the
documents and transactions contemplated hereby, including the reasonable fees
and disbursements of Mayer, Brown, Rowe & Maw, counsel for the Administrative
Agent, and Wachtell, Lipton, Rosen & Katz, special restructuring counsel for the
Administrative Agent.

         SECTION V.6.  Headings.  The various headings of this Amendment are
inserted for convenience only and shall not affect the meaning or interpretation
of this Amendment or any provisions hereof.

                                      -13-

<PAGE>

         SECTION V.7. Execution in Counterparts. This Amendment may be executed
by the parties hereto in counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

         SECTION V.8. Cross-References. References in this Amendment to any
Article or Section are, unless otherwise specified or otherwise required by the
context, to such Article or Section of this Amendment.

         SECTION V.9. Severability. Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Amendment
or affecting the validity or enforceability of such provision in any other
jurisdiction.

         SECTION V.10. Successors and Assigns. This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

         SECTION V.11.  GOVERNING LAW.  THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -14-

<PAGE>
        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers or general partners (or their respective
officers) thereunto duly authorized as of the day and year first above written.

                               BUDGET GROUP, INC.

                               By  /s/ Katherine L. Abbott
                                  ---------------------------------------------
                                    Name: Katherine L. Abbott
                                    Title: Vice President & Treasurer

                               CREDIT SUISSE FIRST BOSTON, as a Lender and
                                 the Administrative Agent

                               By  /s/ Carol Flaton
                                 ---------------------------------------------
                                    Name: Carol Flaton
                                    Title:

                               By  /s/ Didier Siffer
                                 ---------------------------------------------
                                    Name: Didier Siffer
                                    Title: Director

                               BANK OF AMERICA, N.A.

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

                               THE BANK OF NEW YORK

                               By  /s/ Richard P. Hebner
                                 ---------------------------------------------
                                    Name: Richard P. Hebner
                                    Title: Vice President

                                      S-1

<PAGE>

                          THE BANK OF NOVA SCOTIA

                          By  /s/ Olivia L. Braun
                            ---------------------------------------------
                          Name:  Olivia L. Braun
                          Title: Director

                          THE BANK OF TOKYO-MITSUBISHI, LTD.,
                            NEW YORK BRANCH

                          By  /s/ Tod Angus
                            ---------------------------------------------
                          Name:  Tod Angus
                          Title: Vice President

                          BANK POLSKA KASA OPIEKI S.A. - PEKAO S.A.
                            GROUP, NEW YORK BRANCH

                          By  /s/ H.B. El-Tawil
                            ---------------------------------------------
                          Name:   H.B. El-Tawil
                          Title:  Vice President for H. Winter,
                                  Vice President

                          WASHINGTON MUTUAL BANK, F.A. (as successor
                            in interest to BANK UNITED)

                          By  /s/ Robert J. Pliszka
                            ---------------------------------------------
                          Name:  Robert J. Pliszka
                          Title: Assistant Vice President

                          BANKERS TRUST COMPANY

                          By  /s/ Clay Desjardins
                            ---------------------------------------------
                          Name:  Clay Desjardins
                          Title: Managing Director

                                      S-2

<PAGE>

                               BNP PARIBAS

                               By  /s/ Edward V. Carole
                                 ---------------------------------------------
                                    Name:  Edward V. Carole
                                    Title: Managing Director

                               By  /s/ Kathryn Quinn
                                 ---------------------------------------------
                                    Name:  Kathryn Quinn
                                    Title: Vice President

                               PB CAPITAL CORPORATION

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

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

                               CERBERUS PARTNERS L.P.

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

                              CREDIT INDUSTRIEL INDOSUEZ

                               By  /s/ Kathleen Sweeney
                                 ---------------------------------------------
                                    Name:  Kathleen Sweeney
                                    Title: Vice President

                               By  /s/ Frederick W. Aage
                                 ---------------------------------------------
                                    Name:  Frederick W. Aage
                                    Title: Vice President

                                      S-3
<PAGE>

                               CREDIT AGRICOLE ET COMMERCIAL

                               By  /s/ Eric Dulat
                                 ---------------------------------------------
                                    Name:  Eric Dulat
                                    Title: Vice President

                               By  /s/ Eric Longust
                                 ---------------------------------------------
                                    Name:  Eric Longust
                                    Title: Vice President

                               CREDIT LYONNAIS CHICAGO BRANCH

                               By  /s/ Richard Teitelbaum
                                 ---------------------------------------------
                                    Name:  Richard Teitelbaum
                                    Title: Vice President

                               DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN
                                 BRANCHES

                               By  /s/ Richard J. Sweeney
                                 ---------------------------------------------
                                    Name:  Richard J. Sweeney
                                    Title: Vice President

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

                                      S-4

<PAGE>

                               ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG

                               By /s/ John Fay
                                 ---------------------------------------------
                                    Name:  John Fay
                                    Title: Vice President

                               By  /s/ John Ruan???
                                 ---------------------------------------------
                                    Name:  John Ruan???
                                    Title: Managing Director

                               FLEET BANK, N.A.

                               By  /s/ Kevin O'Keefe
                                 ---------------------------------------------
                                    Name:  Kevin O'Keefe
                                    Title: Vice President

                               COMERICA BANK (as successor to Imperial
                                 Bank by merger)

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

                              GENERAL ELECTRIC CAPITAL
                                CORPORATION

                               By  /s/ W. Jerome McDermott
                                 ---------------------------------------------
                                   Name:  W. Jerome McDermott
                                   Title: Authorized Signatory

                              MERRILL LYNCH, PIERCE, FENNER & SMITH
                                INCORPORATED

                               By /s/ Barbara S. Scholl
                                 ---------------------------------------------
                                   Name:  Barbara S. Scholl
                                   Title: Managing Director

                                      S-4
<PAGE>

                               NATEXIS BANQUE

                               By /s/ Christine Dirringer
                                 ---------------------------------------------
                                    Name:  Christine Dirringer
                                    Title: Vice President

                               By  /s/ Anne Ulrich
                                 ---------------------------------------------
                                    Name:  Anne Ulrich
                                    Title: Vice President

                               PAM CAPITAL FUNDING L.P.

                               By:   Highland Capital Management, L.P., as
                                        Collateral Manager

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

                               SOUTHERN PACIFIC BANK

                               By  /s/ Mun Young Kim
                                 ---------------------------------------------
                                    Name:  Mun Young Kim
                                    Title: Vice President

                               SUNTRUST BANK

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

                                      S-5
<PAGE>

                               DK ACQUISITION PARTNERS LP

                               By /s/ Thomas Kemper
                                 ---------------------------------------------
                                    Name:  Thomas Kemper
                                    Title: General Partner

                               HZ SPECIAL OPPORTUNITIES LLC
                               By: Highbridge Capital Management, LLC

                               By  /s/ David B. Zwirn
                                 ---------------------------------------------
                                    Name:  David B. Zwirn
                                    Title: Portfolio Manager

                               R2 TOP HAT, LTD.
                               By   Amalgamated Gadget, L.P., as Investment
                                      Manager
                                    By Scepter Holdings, Inc., its General
                                           Partner

                               By  /s/ Robert McCormick
                                 ---------------------------------------------
                                    Name:  Robert McCormick
                                    Title: Vice President

                               MSD PORTFOLIO L.P. - INVESTMENTS

                               By  /s/ Marc R. Lisker
                                 ---------------------------------------------
                                      Name:   Marc R. Lisker
                                      Title:  General Counsel of General
                                                Partner

                                      S-6<PAGE>
                                                                     EXHIBIT 4.1

                                PROMISSORY NOTE

$2,500,000.00                                                     March 27, 2002

                  FOR VALUE RECEIVED, LADENBURG THALMANN FINANCIAL SERVICES
INC., a Florida corporation ("Maker"), having an address at 590 Madison Avenue,
New York, New York 10022, hereby promises to pay to the order of NEW VALLEY
CORPORATION, a Delaware corporation, its successors and/or assigns (any of which
is hereinafter referred to as "Holder"), at 100 S.E. Second Street, Miami,
Florida 33131, in lawful money of the United States, the sum of Two Million Five
Hundred Thousand Dollars and No Cents ($2,500,000.00), together with interest
thereon at the Prime Rate as published in the Wall Street Journal plus 1% from
the date hereof to the date of payment, on the earlier of (i) June 30, 2002 and
(ii) the tenth business day following the consummation of one or more equity
financings whereby the Maker receives at least $5 million in total proceeds. At
the Holder's request, payments shall be made by wire transfer to an account
designated by the Holder. This Note, however, may be prepaid in whole or in part
at any time without penalty or premium but with payment of accrued interest to
the date of prepayment.

                  So long as any amount under this Note remains outstanding and
unpaid, Maker will not, unless otherwise consented to in writing by the Holder,
create, incur, assume or suffer to exist (excluding the $20 million aggregate
principal amount of senior convertible promissory notes previously issued to
Berliner Effektengesellschaft AG, Frost-Nevada, Limited Partnership and Holder)
any indebtedness for borrowed funds (institutional or otherwise) which is not
subordinated in all respects to the indebtedness under this Note.

                  Holder may, with or without notice to Maker or any guarantor
or other party liable herefor, extend or renew this Note, or extend the time for
making payment of any amount provided for herein, or accept any amount in
advance, all without affecting the liability of Maker or any other party or
guarantor liable herefor.

<PAGE>

                  Upon the occurrence of a default, the whole sum of principal
shall become due immediately at the option of Holder. Default shall include, but
not be limited to: (i) failure to make any payment hereunder at the time
prescribed for payment; (ii) filing, as to the Maker or any guarantor or
indorser of this Note, of an involuntary petition which is not dismissed within
sixty (60) days or of a voluntary petition under the provisions of the Federal
Bankruptcy Code or any state statute for the relief of debtors; (iii) the
granting of any lien or any encumbrance by Maker on the Refund; (iv) default in
the payment of principal or interest on any obligation in excess of $50,000 for
borrowed money beyond the period of grace, if any, provided with respect thereto
or default in the performance or observance of any other term, condition or
agreement contained in any such obligation or in any agreement relating thereto,
if the effect thereof is to cause, or permit the holder or holders of such
obligation (or a trustee on behalf of such holder or holders) to cause such
obligation to become due prior to its stated maturity and such default remains
unremedied for a period of 10 days; (vi) final judgment for the payment of money
in excess of $50,000 shall be rendered against Maker and the same shall remain
undischarged for a period of thirty (30) days during which execution of such
judgment shall not be effectively stayed; (vii) the non-payment, for any reason,
of any check tendered to Holder by Maker; or (viii) any breach or other default
by the Maker under this Note or the $10 million principal amount senior
convertible promissory note issued by Maker to Holder on May 7, 2001.

                  The times for the payment of the principal sum as herein
stated are of the essence of this Note. Upon the occurrence of a default, the
amount of the principal sum hereunder, plus reasonable attorneys fees and
expenses, shall bear interest from the date thereof to the actual date of
payment (whether such payment is made voluntarily or as a result of legal
process) at the maximum rate of interest permitted by law or 18% per annum,
whichever is lower, from the date of the default to the date of actual payment.

                  The Maker shall not consolidate or merge into, or transfer or
lease all or substantially all of its assets to, any person unless (i) the
person is a corporation, (ii) the person assumes in a writing reasonably
acceptable to the Holder all the obligations of the Maker under this Note and
(iii) immediately after the transaction, no default exists. The surviving
transferee or lessee corporation shall be the successor Maker, but the
predecessor Maker in the case of a transfer or lease shall not be released from
the obligation to pay the principal of and interest of this Note.

                  Maker and each other party liable herefor, whether principal,
endorser, guarantor or otherwise, jointly and severally hereby (i) waive
presentment, demand, protest, notice of dishonor and/or protest, notice of
non-payment and all other notices or demands in connection with the delivery,
acceptance, performance, default, enforcement or guaranty of this Note, (ii)
waive recourse to suretyship defenses generally, including extensions of time,
releases of security and other indulgences which may be granted from time to
time by Holder to Maker or any party liable herefor, and (iii) agree to pay all
costs and expenses, including reasonable attorneys fees, in connection with the
enforcement or collection of this Note.

                  Nothing contained in this Note or in any other agreement
between Maker and Holder shall require Maker to pay, or Holder to accept,
interest in an amount which would subject Holder to any penalty or forfeiture
under applicable law. In no event shall the total of all charges payable
hereunder, whether of interest or of such other charges which may or might be
characterized as interest, exceed the maximum rate permitted to be charged under
applicable law. Should Holder receive any payment which is or would be in excess
of that permitted to be charged under such applicable law, such payment shall
have been and shall be deemed to have been made in error and shall automatically
be applied to reduce the principal balance outstanding on this Note.

                  Holder shall not, by any act, delay, omission or otherwise, be
deemed to have waived any of its rights and/or remedies hereunder, and no waiver
whatsoever shall be valid unless in writing, signed by Holder, and then only to
the extent therein set forth. The making of any demands or the giving of any
notices by Holder or a waiver by Holder of any right and/or remedy hereunder on
any one occasion shall not be construed as a bar to or waiver of any right
and/or remedy which Holder would otherwise have on any future occasion. All
rights and remedies of Holder shall be cumulative and may be exercised singly or
concurrently.

<PAGE>

                  This Note may be assigned at any time by Holder to any person
controlling, controlled by or under common control with the Holder or to any
affiliate of the Holder on notice to Maker.

                  The terms and provisions hereof shall survive the payment,
cancellation or surrender of this Note. Any instrument taken by Holder in
payment of, or for application against, any obligation of Maker or any other
party liable herefor shall not operate as a discharge of such obligation until
the instrument is finally paid, notwithstanding the fact that a bank may be the
maker, drawer or acceptor of such instrument.

                  This Note shall be governed and construed in accordance with
the law of the State of New York without giving effect to choice of law
principles. MAKER AND EACH OTHER PARTY LIABLE HEREFOR, IN ANY LITIGATION IN
WHICH HOLDER SHALL BE AN ADVERSE PARTY, WAIVES TRIAL BY JURY AND WAIVES THE
RIGHT TO INTERPOSE ANY DEFENSE, SETOFF OR COUNTERCLAIM OF ANY NATURE OR
DESCRIPTION. ANY SUCH LITIGATION SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION
OF THE NEW YORK STATE OR FEDERAL COURTS LOCATED IN NEW YORK CITY.

                             LADENBURG THALMANN FINANCIAL SERVICES INC.

                             By:  /s/ VICTOR M. RIVAS
                                  --------------------------------------------
                                  Name:  Victor M. Rivas
                                  Title: President and Chief Executive Officer

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