Document:

<PAGE>   1
                                                                  EXHIBIT 10.35

                             BRIDGE LOAN AGREEMENT

                         dated as of February 25, 2000

                                     AMONG

                       TEAM FLEET FINANCING CORPORATION,
                                as the Borrower

                              BUDGET GROUP, INC.,
                                as the Servicer

                                      and

                          CREDIT SUISSE FIRST BOSTON,
                                NEW YORK BRANCH,
                                 as the Lender

<PAGE>   2

                               TABLE OF CONTENTS

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                                                                             PAGE

                                   ARTICLE I

                                 DEFINED TERMS

SECTION 1.1.        Definitions ................................................2

                                   ARTICLE II

                                    ADVANCES

SECTION 2.1        The Advances................................................10
SECTION 2.2        Borrowing Procedure ........................................11
SECTION 2.3        Maturity of Advances........................................12
SECTION 2.4        Reserved....................................................12
SECTION 2.5        Continuation and Conversion Elections.......................12
SECTION 2.6        Funding  ...................................................12
SECTION 2.7        Repayments and Prepayments .................................13
SECTION 2.8        Interest Provisions ........................................14
SECTION 2.9        Fees. ......................................................16
SECTION 2.10       Payments, Computations, etc.  ..............................16
SECTION 2.11       Eurodollar Rate Lending Unlawful ...........................16
SECTION 2.12       Deposits Unavailable .......................................16
SECTION 2.13       Increased Eurodollar Advance Costs, etc. ...................16
SECTION 2.14       Funding Losses  ............................................17
SECTION 2.15       Increased Capital Costs ....................................18
SECTION 2.16       Taxes  .....................................................18
SECTION 2.17       Conditions to the Making of Advances .......................19
SECTION 2.18       Certain Waivers.  ..........................................23

                                  ARTICLE III

                       REPRESENTATIONS AND WARRANTIES

SECTION 3.1        The Borrower................................................24
SECTION 3.2        Budget Group................................................25
SECTION 3.3        The Lender .................................................25
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                                   ARTICLE IV

                                   COVENANTS

SECTION 4.1        Affirmative Covenants.......................................27
SECTION 4.2        Negative Covenants .........................................29
SECTION 4.3        Information as to the Borrower  ............................30
SECTION 4.4        Payment of Taxes and Other Claims ..........................30
SECTION 4.5        Indemnification  ...........................................31
SECTION 4.6        Maintenance of Separate Existence ..........................32

                                   ARTICLE V

                               EVENTS OF DEFAULT

SECTION 5.1        Events of Default ..........................................32
SECTION 5.2        Remedies Upon Default.......................................34
SECTION 5.3        No Waiver ..................................................34

                                   ARTICLE VI

                                 MISCELLANEOUS

SECTION 6.1        No Amendments  .............................................35
SECTION 6.2        No Waiver; Remedies  .......................................35
SECTION 6.3        Binding on Successors and Assigns...........................35
SECTION 6.4        Survival of Agreement.......................................36
SECTION 6.5        Payment of Costs and Expenses...............................36
SECTION 6.6        Characterization as Related Document; Entire Agreement .....37
SECTION 6.7        Notices ....................................................37
SECTION 6.8        Severability of Provisions  ................................37
SECTION 6.9        Counterparts................................................37
SECTION 6.10       Governing Law  .............................................37
SECTION 6.11       Tax Characterization .......................................37
SECTION 6.12       No Proceedings; Limited Recourse ...........................38
SECTION 6.13       Confidentiality ............................................38
SECTION 6.14       Lender May Act Through Affiliates or Agents  ...............39
SECTION 6.15       Other Transactions..........................................39
SECTION 6.16       Independence of Covenants.  ................................39
SECTION 6.17       Forum Selection and Consent to Jurisdiction  ...............39
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        SECTION 6.18       Waiver of Jury Trial................................40
        SECTION 6.19       Third-Party Beneficiaries...........................40

EXHIBIT A   -       Form of Base Indenture
EXHIBIT B   -       Form of Group II Master Lease
EXHIBIT C   -       Form of Series 2000-1 Supplement
EXHIBIT D   -       Form of Borrowing Request
EXHIBIT E   -       Form of Closing Date Certificate
EXHIBIT F   -       Form of Continuation/Conversion Notice
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<PAGE>   5

                             BRIDGE LOAN AGREEMENT

         BRIDGE LOAN AGREEMENT, dated as of February 25, 2000, among CREDIT
SUISSE FIRST BOSTON, NEW YORK BRANCH, a Swiss banking corporation, as lender
(together with its successors and assigns in such capacity, the "Lender"), TEAM
FLEET FINANCING CORPORATION, a Delaware corporation, as borrower (the
"Borrower") and BUDGET GROUP, INC. ("Budget Group"), a Delaware corporation, as
Servicer (the "Servicer").

                              W I T N E S S E T H:

                  WHEREAS, the Borrower has entered into (a) an Amended and
Restated Base Indenture, dated as of December 1, 1996 (as amended, supplemented
or otherwise modified from time to time in accordance with the terms thereof,
the "Base Indenture") with Bankers Trust Company, a New York banking
corporation, as trustee (in such capacity, together with any successors in such
capacity, the "Trustee"), and Budget Group, as Servicer (as successor in such
capacity to Team Rental Group, Inc.) and Budget Interestholder (as successor in
such capacity to Team Rental Group, Inc.), a copy of which is attached hereto
as Exhibit A, (b) a 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 "Group II Master Lease") with
Budget Group, as guarantor, and the subsidiaries, affiliates and non-affiliates
of Budget Group named therein as lessees, a copy of which is attached hereto as
Exhibit B, (c) a Supplement to the Base Indenture dated as of February 25, 2000
(as amended, supplemented or otherwise modified from time to time in accordance
with the terms thereof, the "Series 2000-1 Supplement") with the Trustee,
Budget Group, as Servicer and Budget Interestholder, a copy of which is
attached hereto as Exhibit C and (d) certain related documents referred to in
each of the foregoing documents;

                  WHEREAS, pursuant to the Base Indenture and the Series 2000-1
Supplement, the Borrower will issue the Variable Funding Rental Car Asset
Backed Note, Series 2000-1 (the "Series 2000-1 Note");

                  WHEREAS, the Borrower wishes to issue the Series 2000-1 Note
in favor of the Lender and obtain the agreement of the Lender to make loans
from time to time (each, an "Advance") for the purchase of Series 2000-1
Invested Amounts, as defined in the Series 2000-1 Supplement, all of which
Advances (other than the Initial Advance) will constitute Increases, as defined
in the Series 2000-1 Supplement, and all of which Advances (including the
Initial Advance) will be evidenced by the Series 2000-1 Note and will
constitute purchases of Series 2000-1 Invested Amounts corresponding to the
amount of such Advances;

<PAGE>   6

                  WHEREAS, subject to the terms and conditions of this
Agreement, the Lender is willing to make Advances from time to time to fund
purchases of Series 2000-1 Invested Amounts in an aggregate outstanding amount
up to the Maximum Invested Amount until the commencement of the Series 2000-1
Rapid Amortization Period; and

                  WHEREAS, Budget Group has joined in this Agreement to confirm
certain representations, warranties and covenants made by it as Servicer for
the benefit of the Lender;

                  NOW, THEREFORE, in consideration of the foregoing premises
and for other good and valuable consideration, the parties hereto hereby agree
as follows:

                                   ARTICLE I

                                 DEFINED TERMS

         SECTION 1.1. Definitions. Unless otherwise defined herein or the
context otherwise requires, capitalized terms used in this Agreement, including
its preamble and recitals, have the meanings assigned to them in the Series
2000-1 Supplement or in Schedule 1 to the Base Indenture, and this Agreement
shall be interpreted in accordance with the conventions set forth in Schedule 1
to the Base Indenture; provided, that to the extent any capitalized term used
but not defined herein has a meaning assigned to such term in both the Series
2000-1 Supplement and in Schedule 1 to the Base Indenture, then the meaning
assigned to such term in the Series 2000-1 Supplement shall apply herein,
unless the context requires otherwise. In addition, the following terms shall
have the following meanings that 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:

         "ABR Advance" means an Advance which bears interest by reference to
the Alternative Base Rate.

         "Advance" has the meaning set forth in the third recital hereto.

         "Advance Balance" means, as of any date of determination, an amount
equal to the sum of the then unpaid principal balances of all Advances then
outstanding.

         "Agreement" means, on any date, this Bridge Loan Agreement as
originally in effect on the Closing Date and as thereafter from time to time
amended, supplemented, amended and restated, or otherwise modified and in
effect on such date.

         "Alternative Base Rate" means, on any date and with respect to all ABR
Advances, a fluctuating rate of interest per annum equal to the higher of

                                      -2-
<PAGE>   7

                  (a) the Prime Rate for such day; and

                  (b) the Federal Funds Rate plus 0.50% per annum.

Changes in the rate of interest on that portion of any Advance maintained as an
ABR Advance will take effect simultaneously with each change in the Alternative
Base Rate. The Lender will give notice promptly to the Borrower of changes in
the Alternative Base Rate.

         "Amortization Commencement Date" means the date the Series 2000-1
Rapid Amortization Period commences.

         "Applicable Margin" means a rate per annum equal to (a) with respect
to any date on or prior to the Amortization Commencement Date, 1.0%, and (b)
with respect to any date thereafter, 2.0%.

         "Available Non-Principal Funds" means, with respect to each
Distribution Date, all funds available, pursuant to the terms of the Series
2000-1 Supplement and the Base Indenture, for payment of any amounts (other
than principal amounts) due in respect of the Series 2000-1 Note on such
Distribution Date.

         "Available Principal Funds" means, with respect to each Distribution
Date, all funds available, pursuant to the terms of the Series 2000-1
Supplement and the Base Indenture, for repayment of principal in respect of the
Series 2000-1 Note on such Distribution Date.

         "Base Indenture" has the meaning set forth in the first recital
hereto.

         "Borrower" has the meaning set forth in the preamble hereto.

         "Borrowing" means the Advances of the same type and, in the case of
Eurodollar Advances, having the same Interest Period made by the Lender on the
same Business Day and pursuant to the same Borrowing Request in accordance with
Section 2.2.

         "Borrowing Request" means an Advance request and certificate duly
executed by an Authorized Officer of the Borrower, substantially in the form of
Exhibit D hereto.

         "Business Day" means

                  (a) any day which is neither a Saturday or Sunday nor a legal
         holiday on which banks are authorized or required to be closed in New
         York, New York; and

                                      -3-
<PAGE>   8

                  (b) relative to the making, continuing, converting, prepaying
         or repaying of any Eurodollar Advance, any day described in clause (a)
         above on which dealings in U.S. Dollars are carried on in the London
         interbank market.

         "Capital Stock" means with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated) of such
Person's capital stock or equity, whether now outstanding or issued after the
date hereof, including all common stock, preferred stock, partnership interests
and member interests.

         "CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended.

         "Closing Date" means February 25, 2000.

         "Closing Date Certificate" means a certificate of a duly Authorized
Officer of the Borrower executed and delivered pursuant to Section
2.17(a)(xiii), substantially in the form of Exhibit E hereto.

         "Collateral" means the Group II Collateral and the Series 2000-1
Collateral, in each case as defined in the Series 2000-1 Supplement.

         "Commission" means the Securities and Exchange Commission.

         "Commitment" means the Lender's obligation to make Advances pursuant
to Section 2.1.

         "Commitment Termination Date" has the meaning set forth in Section
2.3.

         "Continuation/Conversion Notice" means a notice of continuation or
conversion duly executed by an Authorized Officer of the Borrower,
substantially in the form of Exhibit F hereto.

         "Commercial Paper Notes" means commercial paper notes issued by an SPC
to fund CP Advances.

         "Cost of Funds Rate" means, for any Fixed Period, the sum of (i) the
CP Rate and (ii) the Applicable Margin.

         "CP Advance" means an Advance which bears interest at the Cost of
Funds Rate.

         "CP Market Disruption Event" means, at any time for any reason
whatsoever, an SPC shall be unable to raise, or shall be precluded or
prohibited from raising, funds through the issuance of Commercial Paper Notes
in the United States commercial paper market at such time.

                                      -4-
<PAGE>   9

         "CP Rate" means, for any Fixed Period, a rate per annum equal to the
sum of (i) the rate (or, if more than one rate, the weighted average of the
rates) at which Commercial Paper Notes having a term equal to such Fixed Period
and issued to fund the Series 2000-1 Note may be sold by or on behalf of an
SPC, as notified by the Lender to the Borrower, provided that if such rate is a
discount rate (or rates), then such rate shall be the rate (or, if more than
one rate, the weighted average of the rates) resulting from converting such
discount rate (or rates) to an interest-bearing equivalent rate per annum; plus
(ii) 0.05%.

         "Credit Agreement" means the Amended and Restated Credit Agreement
dated as of June 19, 1998 among Budget, as borrower, the lenders named therein,
Credit Suisse First Boston, as co-syndication agent and administrative agent,
and NationsBanc Montgomery Securities LLC, as co-syndication agent and
documentation agent, as such agreement may be amended, supplemented, amended
and restated or otherwise modified from time to time in accordance with the
terms thereof.

         "Domestic Office" means the office of the Lender designated as such
below its name on the signature page hereof or such other office of the Lender
within the United States as may be designated from time to time by written
notice from the Lender to the Borrower. The Lender may have separate Domestic
Offices for purposes of making, maintaining or continuing ABR Advances.

         "Eligible Assignee" means (a) a commercial bank having total assets in
excess of $500,000,000, (b) a finance company, insurance company or other
financial institution that in the ordinary course of business enters into
transactions of a type similar to that entered into by the Lender under this
Agreement and has total assets in excess of $200,000,000, and whose becoming an
assignee would not constitute a prohibited transaction under Section 4975 of
ERISA, (c) an SPC and (d) any other financial institution satisfactory to the
Borrower, in the case of an institution referred to in clause (a), (b) or (c),
having a long-term unsecured debt rating from Standard & Poor's and Moody's of
not less than BBB- by Standard & Poor's and Baa3 by Moody's; provided, however,
that any Person who does not have either a long-term unsecured rating from
Standard & Poor's or Moody's shall be deemed to have the required rating set
forth above if such rating agency confirms in writing that such Person, if its
long-term unsecured debt obligations were rated, would be assigned such
required rating.

         "Enhancement Agent" has the meaning set forth in the first recital
hereto.

         "Environmental Laws" means all applicable federal, foreign, state or
local statutes, laws, ordinances, codes, rules, regulations and guidelines
(including consent decrees and administrative orders) relating to public health
and safety and protection of the environment.

         "Eurodollar Advance" means an Advance which bears interest, at all
times during the Interest Period applicable thereto, at a fixed rate of
interest determined by reference to the Eurodollar Rate (Reserve Adjusted).

                                      -5-
<PAGE>   10

         "Eurodollar Office" means the office of the Lender designated as such
below its name on the signature page hereof or such other office of the Lender
as designated from time to time by written notice from the Lender to the
Borrower, whether or not outside the United States, which shall be making or
maintaining Eurodollar Advances of the Lender hereunder.

         "Eurodollar Rate" means, relative to any Interest Period, an interest
rate per annum equal to:

                  (a) the rate determined by the Lender at approximately 11:00
         a.m. (London, England time) two Business Days before the first day of
         such Interest Period for delivery on the first day of such Interest
         Period by reference to the British Bankers' Association Interest
         Settlement Rates for deposits in U.S. Dollars (as set forth by any
         service selected by the Lender which has been nominated by the British
         Bankers' Association as an authorized information vendor for the
         purpose of displaying such rates) for a period equal to such Interest
         Period; or

                  (b) if such rate cannot be determined by the Lender in
         accordance with clause (a) above, the average (rounded upward to the
         nearest whole multiple of 1/100 of 1% per annum, if such average is
         not such a multiple) of the rates per annum at which deposits in U.S.
         Dollars are offered by the Eurodollar Office of the Lender in London,
         England to prime banks in the London interbank market at or about
         11:00 a.m. (London, England time) two Business Days before the first
         day of such Interest Period in an amount substantially equal to the
         amount of the Eurodollar Advances to be outstanding during such
         Interest Period and for a period equal to such Interest Period;
         provided that any determination of the Eurodollar Rate for any
         Interest Period pursuant to this clause (b) shall be determined by the
         Lender on the basis of applicable rates furnished to and received by
         the Lender from the Reference Lenders two Business Days before the
         first day of such Interest Period.

         "Eurodollar Rate (Reserve Adjusted)" means, for any Interest Period,
an interest rate per annum (rounded upward to the nearest 1/100th of 1%)
determined pursuant to the following formula:

             Eurodollar Rate =                   Eurodollar Rate
                                       -------------------------------------
            (Reserve Adjusted)         1.00 - Eurodollar Reserve Percentage.

The Eurodollar Rate (Reserve Adjusted) for any Interest Period for Eurodollar
Advances will be determined by the Lender on the basis of the Eurodollar
Reserve Percentage in effect two Business Days before the first day of such
Interest Period.

         "Eurodollar Reserve Percentage" means, for any Interest Period, the
reserve percentage (expressed as a decimal) equal to the maximum aggregate
reserve requirements (including all basic, emergency, supplemental, marginal
and other reserves and taking into account any transitional adjustments or
other scheduled changes in reserve requirements) specified under regulations
issued

                                      -6-
<PAGE>   11

from time to time by the F.R.S. Board and then applicable to assets or
liabilities consisting of and including "Eurocurrency Liabilities," as
currently defined in Regulation D of the F.R.S. Board, having a term
approximately equal or comparable to such Interest Period.

         "Event of Default" means any of the conditions or events set forth in
Section 5.1.

         "Federal Funds Rate" means, for any day, the per annum rate set forth
in the weekly statistical release designated as H.15(519) or any successor
publication, published by the F.R.S. Board for such day opposite the caption
"Federal Funds (Effective)"; provided, that if on any relevant date such rate
is not yet published in such release, then the Federal Funds Rate for such day
will be the weighted average of the rates on overnight funds transactions with
members of the Federal Reserve System published by the Federal Reserve Bank of
New York for such day (or if such day is not a Business Day, for the next
preceding Business Day); provided that if neither of the foregoing rates is
published for any day which is a Business Day, the Federal Funds Rate will be
the average of the quotations for transactions in overnight federal funds
received on that day by the Lender from three federal funds brokers of
recognized standing selected by it.

         "Fee Letter" means that certain fee letter dated the date hereof,
between the Lender and the Borrower, under which the Borrower agrees to pay
certain fees to the Lender in its capacity as the Lender under this Agreement.

         "Fixed Period" means a Series 2000-1 Interest Period (as defined in
the Series 2000-1 Supplement); provided that

         (i)      any Fixed Period in respect of which interest is computed by
                  reference to the CP Rate may be terminated at the election of
                  the Lender by notice to the Borrower and the Servicer at any
                  time upon the occurrence and during the continuance of a CP
                  Market Disruption Event;

         (ii)     if at any time any Fixed Period is terminated pursuant to
                  clause (i) above, the Series 2000-1 Invested Amount
                  previously allocated to such terminated Fixed Period shall be
                  allocated to a new Fixed Period to commence on such date and
                  end on the next succeeding Distribution Date; and

         (iii)    upon the occurrence and during the continuance of the Series
                  2000-1 Rapid Amortization Period, any Fixed Period in respect
                  of which interest is computed by reference to the CP Rate may
                  be terminated at the election of the Lender by notice to the
                  Borrower and the Servicer, and upon such election the CP
                  Advances in respect of which interest was calculated by
                  reference to such terminated Fixed Period shall be converted
                  to ABR Advances until payment in full of the Series 2000-1
                  Note.

                                      -7-
<PAGE>   12

         "F.R.S. Board" means the Board of Governors of the Federal Reserve
System or any successor thereto.

         "Funding Date" has the meaning set forth in Section 2.2.

         "Group II Master Lease" has the meaning set forth in the first recital
hereto.

         "Hazardous Material" means

                  (a) any "hazardous substance," as defined by CERCLA;

                  (b) any "hazardous waste," as defined by the Resource
         Conservation and Recovery Act, as amended; or

                  (c) any pollutant or contaminant or hazardous, dangerous or
         toxic chemical, material or substance (including any petroleum
         product) within the meaning of any other applicable federal, foreign,
         state or local law, regulation, ordinance or requirement (including
         consent decrees and administrative orders) relating to or imposing
         liability or standards of conduct concerning any hazardous, toxic or
         dangerous waste, substance or material, all as amended.

         "Hedging Agreement" means, an interest swap agreement, interest rate
cap agreement, interest rate collar agreement, and all other agreements or
arrangements designed to protect a Person against fluctuations in interest
rates, in each case in connection with the payment of interest and fees under
the Series 2000-1 Note.

         "including" means including without limiting the generality of any
description preceding such term, and, for purposes of this Agreement, the
parties hereto agree that the rule of ejusdem generis shall not be applicable
to limit a general statement, which is followed by or referable to an
enumeration of specific matters, to matters similar to the matters specifically
mentioned.

         "Indemnified Liabilities" has the meaning set forth in Section 4.5.

         "Indemnified Parties" has the meaning set forth in Section 4.5.

         "Initial Advance" means the Advance made under this Agreement as part
of the initial Borrowing.

         "Initial Funding Date" means the date on which the Initial Advance is
made under this Agreement.

                                      -8-
<PAGE>   13

         "Interest Period" means, with respect to any Eurodollar Advance, a
period commencing on the date of such Eurodollar Advance and ending on the
thirtieth (30th) day thereafter; provided, however, that

         (i)      if any such period would otherwise end on a day which is not
                  a Business Day, the Interest Period shall instead end on the
                  next succeeding Business Day (but if such extension would
                  cause the last day of such Interest Period to occur in the
                  next following calendar month, the last day of such Interest
                  Period shall occur on the next preceding Business Day); and

         (ii)     upon the occurrence and during the continuance of the Series
                  2000-1 Rapid Amortization Period, any Interest Period may be
                  terminated at the election of the Lender by notice to the
                  Borrower and the Servicer, and upon such election the
                  Eurodollar Advances in respect of which interest was
                  calculated by reference to such terminated Interest Period
                  shall be converted to ABR Advances or CP Advances until
                  payment in full of the Series 2000-1 Note.

         "Lender" has the meaning set forth in the preamble hereto.

         "Liquidity Provider" means, with respect to any SPC, any Person
providing liquidity support for the Commercial Paper Notes of such SPC.

         "Maturity Date" has the meaning set forth in Section 2.3.

         "Maximum Invested Amount" means $270,000,000.

         "Monthly Interest" means, for any Distribution Date, the product of
(i) a fraction, the numerator of which is the number of days in the Series
2000-1 Interest Period most recently ended and the denominator of which is 360,
(ii) the Series 2000-1 Note Rate for the Series 2000-1 Interest Period most
recently ended and (iii) the average daily Advance Balance during the Series
2000-1 Interest Period most recently ended.

         "Obligations" means all obligations (monetary or otherwise, whether
absolute or contingent, matured or unmatured, direct or indirect, inchoate or
otherwise, sole, joint, several or joint and several, due or to become due,
heretofore or hereafter contracted or acquired) of the Borrower and each other
Obligor arising under or in connection with this Agreement, the Series 2000-1
Note and each other Related Document.

         "Obligor" means, as the context may require, the Borrower and any
other Person (other than the Lender) to the extent such Person is obligated
under, or otherwise a party to, this Agreement or any other Related Document.

                                      -9-
<PAGE>   14

         "Participant" has the meaning set forth in Section 6.3(b).

         "Potential Event of Default" means, any condition or event which, with
the giving of notice or the lapse of time or both, would reasonably be expected
to become an Event of Default.

         "Prime Rate" means the rate of interest most recently announced by the
Lender at its Domestic Office as its "reference rate"; provided, however, that
the Prime Rate is not necessarily intended to be the lowest rate of interest
determined by the Lender in connection with extensions of credit.

         "Reference Lenders" means Credit Suisse First Boston, New York Branch,
or, in the event that such bank ceases to be a Lender hereunder at any time,
any other commercial bank designated by the Borrower and approved by the Lender
as constituting a "Reference Lender" hereunder.

         "Regulation D" means the rules and regulations under the Securities
Act.

         "Release" means a "release," as such term is defined in CERCLA.

         "Series 2000-1 Interest Period" has the meaning set forth in the
Series 2000-1 Supplement.

         "Series 2000-1 Note" has the meaning set forth in the second recital
hereto.

         "Series 2000-1 Note Rate" means the weighted average of the interest
rates payable on the Advances pursuant to Sections 2.8(a) and (b), weighted
based upon the unpaid principal amount, respectively, of the Advances bearing
such interest rates.

         "Series 2000-1 Supplement" has the meaning set forth in the first
recital hereto.

         "Servicer" has the meaning set forth in the preamble hereto.

         "SPC" has the meaning specified in Section 2.6(b).

         "Taxes" has the meaning set forth in Section 2.16.

         "Trustee" has the meaning set forth in the first recital hereto.

         "type" means, relative to any Advance, the portion thereof, if any,
being maintained as an ABR Advance, a CP Advance or a Eurodollar Advance.

                                     -10-
<PAGE>   15

                                   ARTICLE II

                                    ADVANCES

         SECTION 2.1 The Advances. (a) Upon the terms and subject to the
conditions of this Agreement and the Series 2000-1 Supplement, the Lender
agrees, upon the Borrower's request, to make Advances from time to time on any
Business Day on or prior to June 30, 2000; provided, that the Lender will not
be required or permitted to make an Advance on any date if, after giving effect
to such Advance and the use of proceeds therefrom, (x) the aggregate
outstanding principal amount of all Advances would exceed the Maximum Invested
Amount, or (y) either (i) a Series 2000-1 Credit Support Deficiency exists or
would exist or (ii) a Series 2000-1 Asset Amount Deficiency exists or would
exist. All Advances shall be allocated pursuant to and in accordance with
Section 5.2 of the Series 2000-1 Supplement. On the terms and subject to the
conditions of this Agreement and the Series 2000-1 Supplement, the Borrower may
from time to time borrow, repay and reborrow Advances.

                  (b)(i) The Advances shall be evidenced by one or more loan
         accounts or records maintained by the Lender in the ordinary course of
         business. Absent manifest error, the loan accounts or records
         maintained by the Lender shall be conclusive of the amount of the
         Advances made by the Lender and the interest and payments thereon. The
         failure so to record any such information or any error in so recording
         any such information shall not, however, limit or otherwise affect the
         actual obligations of the Borrower hereunder or under the Series
         2000-1 Note to pay any amount owing with respect to the Advances or
         limit or otherwise affect any other Obligations of the Borrower or any
         other Obligor.

                  (ii) The Series 2000-1 Note shall be payable to the order of
         the Lender in a maximum principal amount equal to the Maximum Invested
         Amount. The Borrower hereby irrevocably authorizes the Lender to make
         (or cause to be made) appropriate notations on the grid attached to
         the Series 2000-1 Note (or on any continuation of such grid), which
         notations, if made, shall evidence, inter alia, the date of, the
         outstanding principal of, and the interest rate, Fixed Period and
         Interest Period applicable to the Advances evidenced thereby. Such
         notations shall be conclusive and binding on the Borrower absent
         manifest error; provided, however, that the failure to make any such
         notations or any error in making any such notations shall not limit or
         otherwise affect the actual obligations of the Borrower hereunder or
         under the Series 2000-1 Note to pay any amount owing with respect to
         the Advances or limit or otherwise affect any other Obligations of the
         Borrower or any other Obligor.

         SECTION 2.2 Borrowing Procedure. By delivering a Borrowing Request to
the Lender on or before 11:00 a.m. (New York City time) on a Business Day, the
Borrower may from time to time irrevocably request,

                                     -11-
<PAGE>   16

                  (a) on such Business Day (but in any event not more than five
         Business Days notice) in the case of ABR Advances,

                  (b) on not less than three (but in any event not more than
         five) Business Days notice in the case of Eurodollar Advances, or

                  (c) on not less than two (but in any event not more than
         five) Business Days notice in the case of CP Advances,

that a Borrowing be made in a minimum amount of $1,000,000 and an integral
multiple of $100,000 or, in either case, in the unused amount of the
Commitment. On the terms and subject to the conditions of this Agreement, each
Borrowing shall be comprised of the type of Advance and shall be made on the
Business Day specified in such Borrowing Request (each such day, a "Funding
Date"); provided that, notwithstanding the type of Advance specified in such
Borrowing Request, to the extent that an Advance is provided by an SPC pursuant
to the option referred to in Section 2.6(b), such Advance shall, unless the SPC
otherwise directs, be a CP Advance. The Lender shall notify the Trustee in
writing of the amount deposited or to be deposited by or on behalf of the
Lender into the Series 2000-1 Collection Account on such Business Day. Subject
to the terms and conditions of this Agreement, on or before 3:00 p.m. (New York
City time) on such Business Day, the Lender shall deposit or cause to be
deposited with the Trustee same day funds in an amount equal to the amount of
the requested Borrowing. Such deposit will be made to the Series 2000-1
Collection Account, which the Trustee shall specify from time to time by notice
to the Lender.

         SECTION 2.3 Maturity of Advances. Each Advance shall mature and be
payable in full on the June 2001 Distribution Date (the "Maturity Date").

         SECTION 2.4 Reserved.

         SECTION 2.5 Continuation and Conversion Elections. By delivering a
Continuation/Conversion Notice to the Lender on or before 11:00 a.m. (New York
City time) on a Business Day, the Borrower may from time to time irrevocably
elect that all or any portion in an aggregate minimum amount of $1,000,000 and
an integral multiple of $100,000 of any Advances be,

                  (a) in the case of ABR Advances, on not less than three nor
         more than five Business Days prior notice, converted into Eurodollar
         Advances; or

                                     -12-
<PAGE>   17

                  (b) in the case of Eurodollar Advances, on prior notice given
         not less than three nor more than five Business Days prior to the end
         of the related Interest Period, continued as Eurodollar Advances.

In the absence of delivery of a Continuation/Conversion Notice at least three
Business Days prior to the last day of the related Interest Period for any
Eurodollar Advance, such Eurodollar Advance shall, on such last day,
automatically convert to an ABR Advance. In the absence of delivery of a
Continuation/Conversion Notice, any ABR Advance shall automatically continue as
an ABR Advance. No portion of the principal amount of any Advances outstanding
may be continued as, or be converted into, Eurodollar Advances when any Event
of Default or Potential Event of Default has occurred and is continuing.

         SECTION 2.6 Funding. (a) The Lender may, if it so elects, fulfill its
obligation to make or continue or convert Eurodollar Advances hereunder by
causing one of its foreign branches or Affiliates (or an international banking
facility created by the Lender) to make or maintain such Eurodollar Advance;
provided, however, that such Eurodollar Advance shall nonetheless be deemed to
have been made and to be held by the Lender, and the obligation of the Borrower
to repay such Eurodollar Advance shall nevertheless be to the Lender for the
account of such foreign branch, Affiliate or international banking facility. In
addition, the Borrower hereby consents and agrees that, for purposes of any
determination to be made for purposes of Section 2.11, 2.12, 2.13 or 2.14, it
shall be conclusively assumed that the Lender elected to fund all Eurodollar
Advances by purchasing deposits in U.S. Dollars in its Eurodollar Office's
interbank eurodollar market.

         (b) Notwithstanding anything to the contrary contained herein, the
Lender may grant to a special purpose funding vehicle (a "SPC"), identified as
such in writing from time to time by the Lender to the Borrower and the
Servicer, the option to provide to the Borrower all or any part of any Advance
that the Lender would otherwise be obligated to make, maintain, continue or
convert pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPC to make, maintain, continue or convert any
Advance, (ii) if an SPC elects not to exercise such option or otherwise fails
to provide all or any part of such Advance, the Lender shall be obligated to
make, maintain, continue or convert such Advance pursuant to the terms hereof.
The making, maintenance, continuation or conversion of an Advance by an SPC
hereunder shall utilize the Commitment of the Lender to the same extent, and as
if, such Advance were made, maintained, continued or converted by the Lender.
Each Advance made by an SPC shall, unless the SPC otherwise directs, be a CP
Advance. In the event that an SPC elects to make all or any portion of an
Advance, such Advance shall nonetheless be deemed to have been made by the
Lender and the obligation of the Borrower to repay such Advance shall
nevertheless be to the Lender for the account of such SPC. Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Lender). In furtherance of the foregoing, each party hereto hereby agrees
(which agreement shall survive the termination of this Agreement) that, prior
to the date that is one year and one day after the payment in full of all
outstanding commercial

                                     -13-
<PAGE>   18

paper or other senior indebtedness of any SPC, it will not institute against,
or join any other person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under the
laws of the United States or any State thereof. In addition, notwithstanding
anything to the contrary contained in this Section 2.6(b), any SPC may (i) with
notice to, but without the prior written consent of, the Borrower and the
Servicer and without paying any processing fee therefor, assign all or a
portion of its interests in any Advances to the Lender or to any financial
institution (consented to by the Borrower and the Servicer) providing liquidity
and/or credit support to or for the account of such SPC to support the funding
or maintenance of Advances and (ii) disclose on a confidential basis any
non-public information relating to its Advances to any rating agency,
commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC. This section may not be amended without the
written consent of each SPC.

         SECTION 2.7 Repayments and Prepayments. The Borrower shall, upon the
terms and subject to the conditions of the Series 2000-1 Supplement, from
Available Principal Funds, repay in full the unpaid principal amount of each of
the Advances upon the Maturity Date. Prior to the Maturity Date, the Borrower,
upon the terms and subject to the conditions of the Series 2000-1 Supplement,
from Available Principal Funds,

         (a) may, from time to time on any Business Day, make a voluntary
prepayment, in whole or in part, of the outstanding principal amount of any
Advance; provided, however, that

                  (i) all such voluntary prepayments shall require prior
         irrevocable written notice to the Lender and the Trustee received by
         the Lender and the Trustee no later than 11:00 a.m. (New York City
         time),

                           (A) on such Business Day in the case of ABR
                  Advances, or

                           (B) on not less than three (but in any event not
                  more than five) Business Days notice in the case of
                  Eurodollar Advances and CP Advances,

                  (ii) all such voluntary partial prepayments shall be in an
         aggregate minimum amount of $1,000,000 and an integral multiple of
         $100,000, and

                  (iii) to the extent that any portion of a CP Advance is
         prepaid, the Borrower shall also pay an amount equal to the interest
         (or discount) that will accrue on the Commercial Paper Notes funding
         such Advance through the maturity of such Commercial Paper Notes;

         (b) shall, on each date on which the Series 2000-1 Credit Support
Amount is less than the Series 2000-1 Minimum Credit Support Amount, make a
mandatory prepayment in an amount such that after giving effect to such
prepayment, the Series 2000-1 Credit Support Amount shall not be less

                                     -14-
<PAGE>   19

than the Series 2000-1 Minimum Credit Support Amount and the Maximum Invested
Amount shall not be less than the aggregate outstanding principal amount of the
Advances;

         (c) shall, on any Distribution Date during the Series 2000-1 Rapid
Amortization Period, make a mandatory payment of principal in an amount equal
to the lesser of (i) the Available Principal Funds and (ii) the Aggregate
Principal Balance of the Series 2000-1 Notes.

Each prepayment of any Advances made pursuant to this Section 2.7 shall be
without premium or penalty (except as otherwise specified in this Section 2.7
or as may be required by Section 2.14).

         SECTION 2.8 Interest Provisions. Interest on the outstanding principal
amount of Advances shall accrue and be payable in accordance with this Section
2.8.

                  (a) Rates. Pursuant to an appropriately delivered Borrowing
         Request or Continuation/Conversion Notice, the Borrower may elect that
         Advances comprising a Borrowing accrue interest at a rate per annum:

                           (i) on that portion maintained from time to time as
                  an ABR Advance, equal to the Alternative Base Rate from time
                  to time in effect; and

                           (ii) on that portion maintained as a Eurodollar
                  Advance, during each Interest Period applicable thereto,
                  equal to the sum of the Eurodollar Rate (Reserve Adjusted)
                  for such Interest Period plus the Applicable Margin for such
                  Advance;

provided that, notwithstanding the type of Advance specified in such Borrowing
Request or Continuation/Conversion Notice, to the extent that an Advance is
provided by an SPC pursuant to the option referred to in Section 2.6(b), such
Advance shall, unless such SPC otherwise directs, be a CP Advance and shall
bear interest at the Cost of Funds Rate.

         All Eurodollar Advances shall bear interest from and including the
first day of the applicable Interest Period to (but not including) the last day
of such Interest Period at the interest rate determined as applicable to such
Eurodollar Advance.

                  (b) Post-Maturity Rates. After the date any principal amount
         of any Advance is due and payable (whether on the Maturity Date, upon
         acceleration or otherwise) and not paid on such date, or after any
         other monetary Obligation of the Borrower or any other Obligor, as the
         case may be, shall have become due and payable and not be paid on such
         date, the Borrower or such other Obligor, as the case may be, shall
         pay, but only to the extent permitted by law, interest (after as well
         as before judgment) on the aggregate principal amount of all Advances
         then outstanding and on such other monetary Obligations at a rate per
         annum equal to,

                                     -15-
<PAGE>   20

                           (i) in the case of the aggregate principal amount of
                  all Advances then outstanding, the interest rate otherwise
                  applicable thereto plus an additional margin of 200 basis
                  points; and

                           (ii) in the case of such other monetary Obligations
                  of the Borrower or such other Obligor (other than such
                  obligations comprised of the principal amount of any
                  Advance), the Alternative Base Rate from time to time in
                  effect plus a margin of 200 basis points.

                  (c) Payment Dates. Interest shall be due and payable from
         Available Non-Principal Funds on each Distribution Date in accordance
         with the provisions set forth in Section 5.4 of the Series 2000-1
         Supplement. In addition, all accrued and unpaid Monthly Interest and
         the unpaid principal amount of each Advance will be payable in full on
         the Maturity Date unless extended as set forth in Section 2.4.

         SECTION 2.9 Fees. The Borrower agrees to pay the fees set forth in the
Fee Letter. All such fees shall be non-refundable.

         SECTION 2.10 Payments, Computations, etc. All payments by the Borrower
pursuant to this Agreement, the Series 2000-1 Note or any other Related
Document shall be made by the Borrower to the Lender, without setoff, deduction
or counterclaim, not later than 1:00 p.m. (New York City time) on the date due,
in same day or immediately available funds, to such account as the Lender shall
specify from time to time by notice to the Borrower and the Paying Agent. Funds
received after that time shall be deemed to have been received by the Lender on
the next succeeding Business Day. All interest (including interest on
Eurodollar Advances and CP Advances) and fees shall be computed by the Lender
on the basis of the actual number of days (including the first day but
excluding the last day) occurring during the period for which such interest or
fee is payable over a year comprised of 360 days (or, in the case of interest
on an ABR Advance (other than when calculated with respect to the Federal Funds
Rate), 365 days or, if appropriate, 366 days). Whenever any payment to be made
shall otherwise be due on a day which is not a Business Day, such payment shall
(except as otherwise required by clause (i) of the definition of the term
"Interest Period" with respect to Eurodollar Advances) be made on the next
succeeding Business Day and such extension of time shall be included in
computing interest and fees, if any, in connection with such payment.

         SECTION 2.11 Eurodollar Rate Lending Unlawful. If the Lender shall
determine (which determination shall, upon notice thereof to the Borrower, be
conclusive and binding on the Borrower) that the introduction of or any change
in, or in the interpretation of, any law makes it unlawful, or any central bank
or other Governmental Authority asserts that it is unlawful, for the Lender to
make, continue or maintain any Advance as, or to convert any Advance into, a
Eurodollar Advance of a certain type, the obligations of the Lender to make,
continue or maintain any Advance as, or convert any such Advance into, a
Eurodollar Advance shall, upon such determination, forthwith be suspended

                                     -16-
<PAGE>   21

until the Lender shall notify the Borrower that the circumstances causing such
suspension no longer exist, and the Borrower shall immediately convert (in the
manner provided for in Section 2.5) all Eurodollar Advances into ABR Advances
at the end of the then current Interest Periods with respect thereto or sooner,
if required by such law or assertion.

         SECTION 2.12 Deposits Unavailable. If the Lender shall have determined
that by reason of circumstances affecting the London interbank market, adequate
means do not exist for ascertaining the interest rate applicable hereunder to
Eurodollar Advances of any type, then, upon notice to the Borrower, the
obligations of the Lender under Section 2.1 to make or continue any Advances
as, or to convert any Advances into, Eurodollar Advances shall forthwith be
suspended until the Lender shall notify the Borrower that the circumstances
causing such suspension no longer exist.

         SECTION 2.13 Increased Eurodollar Advance Costs, etc. The Borrower
agrees to reimburse the Lender or its SPC, as applicable, for any increase in
the cost to the Lender or its SPC, as applicable, of, or any reduction in the
amount of any sum receivable by the Lender in respect of, making, continuing or
maintaining (or of its obligation to make, continue or maintain) any Advances
as, or of converting (or of its obligation to convert) any Advances into,
Eurodollar Advances that arise in connection with any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in after the date hereof of, any law or regulation, directive, guideline,
decision or request (whether or not having the force of law) of any court,
central bank, regulator or other Governmental Authority, except for such
changes with respect to increased capital costs and taxes which are governed by
Sections 2.15 and 2.16, respectively; provided, however, that the Borrower
shall not have any obligation to pay any such additional amount under this
Section 2.13 with respect to any day or days unless the Lender shall have
notified the Borrower of its demand within 45 days after the date upon which
the Lender has obtained audited information with respect to the fiscal year of
the Lender in which such day or days occurred. Each such demand shall be
provided to the Lender in writing and shall state, in reasonable detail, the
reasons therefor and the additional amount required fully to compensate the
Lender on an after-tax basis for such increased cost or reduced amount. Such
additional amounts shall be payable by the Borrower directly to the Lender on
the Distribution Date following its receipt of such notice, and such notice
shall, in the absence of manifest error, be conclusive and binding on the
Borrower. Such amounts to be paid by the Borrower shall constitute "Carrying
Charges" within the meaning of the Base Indenture and "Series 2000-1 Carrying
Charges" within the meaning of the Series 2000-1 Supplement.

         SECTION 2.14 Funding Losses. In the event the Lender or any SPC shall
incur any loss or expense (including any loss or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by the
Lender to make, continue or maintain any portion of the principal amount of any
Advance as, or to convert any portion of the principal amount of any Advance
into, a Eurodollar Advance) as a result of

                                     -17-
<PAGE>   22

                  (a) any conversion or repayment or prepayment of the
         principal amount of any Eurodollar Advances on a date other than the
         scheduled last day of the Interest Period applicable thereto, whether
         pursuant to Section 2.7 or otherwise;

                  (b) any Advances not being made as Eurodollar Advances in
         accordance with the Borrowing Request therefor;

                  (c) any Advances not being continued as, or converted into,
         Eurodollar Advances in accordance with the Continuation/Conversion
         Notice therefor; or

                  (d) any assignment by an SPC of its interest in any Advance
         to its Liquidity Provider at a time when Commercial Paper Notes
         funding such interest is outstanding;

then the Borrower shall, on the Distribution Date occurring in the calendar
month following its receipt of written notice thereof from the Lender, pay
directly to the Lender such amount as will (in the reasonable determination of
the Lender) reimburse the Lender or such SPC, as applicable, for such loss or
expense. Such written notice (which shall include calculations in reasonable
detail) shall, in the absence of manifest error, be conclusive and binding on
the Borrower. Such amounts to be paid by the Borrower shall constitute
"Carrying Charges" within the meaning of the Base Indenture and "Series 2000-1
Carrying Charges" within the meaning of the Series 2000-1 Supplement.

         SECTION 2.15 Increased Capital Costs. If any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any court, central bank, regulator
or other Governmental Authority after the Closing Date affects or would affect
the amount of capital required or expected to be maintained by the Lender or
any Person controlling the Lender, and the Lender determines (in its sole and
absolute discretion) that the rate of return on its or such controlling
Person's capital as a consequence of the Advances made by the Lender is reduced
to a level below that which the Lender or such controlling Person could have
achieved but for the occurrence of any such circumstance, then, in any such
case upon notice from time to time by the Lender to the Borrower, the Borrower
shall pay directly to the Lender, on the Distribution Date following its
receipts of such notice, additional amounts sufficient to compensate the Lender
or such controlling Person on an after-tax basis for such reduction in rate of
return; provided, however, that the Borrower shall not have any obligation to
pay any such additional amount under this Section 2.15 with respect to any day
or days unless the Lender shall have notified the Borrower of its demand
therefor within 45 days of the date upon which the Lender has obtained audited
information with respect to the fiscal year of the Lender in which such day or
days occurred. A statement of the Lender as to any such additional amount or
amounts (including calculations thereof in reasonable detail) shall, in the
absence of manifest error, be conclusive and binding on the Borrower. In
determining such amount, the Lender may use any method of averaging and
attribution that it (in its sole and absolute discretion) shall deem
applicable. Such

                                     -18-
<PAGE>   23

amounts to be paid by the Borrower shall constitute "Carrying Charges" within
the meaning of the Base Indenture and "Series 2000-1 Carrying Charges" within
the meaning of the Series 2000-1 Supplement.

         SECTION 2.16 Taxes. All payments by the Borrower of principal of, and
interest on, the Advances and all other amounts payable hereunder (including
fees) shall be made free and clear of and without deduction for any present or
future income, excise, stamp or franchise taxes and other taxes, fees, duties,
withholdings or other charges of any nature whatsoever imposed by any taxing
authority, but excluding taxes imposed on or measured by the overall net
income, overall receipts or overall assets of the Lender and franchise taxes
imposed on the Lender by the jurisdiction under the laws of which it is
organized or any political subdivision thereof and taxes imposed on or measured
by the overall net income, overall receipts and overall assets of the Lender
and franchise taxes imposed on the Lender by the jurisdiction of the Lender's
Domestic Office or Eurodollar Office, as the case may be, or any political
subdivision thereof (such non-excluded items being called "Taxes"). In the
event that any withholding or deduction from any payment to be made by the
Borrower hereunder is required in respect of any Taxes pursuant to any
applicable law, rule or regulation, then the Borrower will

                  (i)   pay directly to the relevant authority the full amount
         required to be so withheld or deducted;

                  (ii)  promptly forward to the Lender an official receipt or
         other documentation satisfactory to the Lender evidencing such payment
         to such authority; and

                  (iii) pay to the Lender (or, if applicable, for its own
         account) such additional amount or amounts as is necessary to ensure
         that the net amount actually received by the Lender will equal the
         full amount the Lender would have received had no such withholding or
         deduction been required.

Moreover, if any Taxes are directly asserted against the Lender with respect to
any payment received by the Lender hereunder, the Lender may pay such Taxes and
the Borrower will promptly pay such additional amounts (including any
penalties, interest or expenses) as is necessary in order that the net amount
received by such person after the payment of such Taxes (including any Taxes on
such additional amount) shall equal the amount such person would have received
had no such Taxes been asserted.

         If the Borrower fails to pay any Taxes when due to the appropriate
taxing authority or fails to remit to the Lender the required receipts or other
required documentary evidence, the Borrower shall indemnify the Lender for any
incremental Taxes, interest or penalties that may become payable by the Lender
as a result of any such failure. For purposes of this Section 2.16, a
distribution hereunder by the Lender shall be deemed a payment by the Borrower.

                                     -19-
<PAGE>   24

         Upon the request of the Borrower, any lender hereunder (including any
successor or assign of the Lender) that is organized under the laws of a
jurisdiction other than the United States shall, prior to the initial due date
of any payments to such Person hereunder (and to the extent permissible under
then current law), execute and deliver to the Borrower, one or more (as the
Borrower may reasonably request) (i) United States Internal Revenue Service
Form 4224 or Form W-8ECI or (ii) United States Internal Revenue Service Form
1001 or Form W-8BEN or such other forms or documents (or successor forms or
documents), appropriately completed, as may be applicable to establish the
extent, if any, to which a payment to the Lender is exempt from withholding or
deduction of Taxes; provided, that, if any lender delivers either a Form 4224
or Form 1001, such lender must deliver a Form W-8ECI or Form W-8BEN, as
appropriate, to the Borrower on or before December 31, 2000.

         SECTION 2.17 Conditions to the Making of Advances. (a) The
effectiveness of this Agreement and the obligation of the Lender to make the
Initial Advance shall be subject to the prior satisfaction of all conditions to
the issuance of the Series 2000-1 Note under the Series 2000-1 Supplement and
under Section 2.2 of the Base Indenture and the delivery to the Lender of each
of the following documents, on or prior to such effectiveness, in form and
substance satisfactory to the Lender:

                  (i)   Series 2000-1 Note. The Series 2000-1 Note duly executed
         and delivered by the Borrower and duly authenticated by the Trustee,
         in a stated amount of up to the Maximum Invested Amount.

                  (ii)  Series 2000-1 Supplement. The Series 2000-1 Supplement,
         dated as of the Closing Date, duly executed by the Borrower, Budget
         Group, the Trustee and the Enhancement Agent, and all of the
         conditions to the effectiveness thereof and to the issuance of the
         Series 2000-1 Note set forth therein shall have been satisfied in all
         respects.

                  (iii) Certificate of Incorporation. The certificate of
         incorporation of the Borrower and the Servicer, each duly certified by
         the Secretary of State of the jurisdiction of its incorporation,
         together with a copy of the by-laws of each of the Borrower and the
         Servicer, duly certified by the Secretary or an Assistant Secretary of
         the Borrower or the Servicer, as applicable.

                  (iv)  Resolutions. Copies of:

                           (1) resolutions of the Board of Directors of the
                  Borrower then in full force and effect authorizing or
                  ratifying the execution, delivery and performance of this
                  Agreement, the other Related Documents and those documents
                  and matters required of it with respect thereto, duly
                  certified by the Secretary or Assistant Secretary of the
                  Borrower; and

                                     -20-
<PAGE>   25

                           (2) resolutions of the Board of Directors of the
                  Servicer then in full force and effect authorizing or
                  ratifying the execution, delivery and performance of this
                  Agreement, the other Related Documents and those documents
                  and matters required of it with respect thereto, duly
                  certified by the Secretary or Assistant Secretary of the
                  Servicer.

                  (v)    Consents. Certified copies of all documents evidencing
         any necessary corporate action, consents and governmental approvals
         (if any) with respect to this Agreement.

                  (vi)   Incumbency and Signatures. A certificate of the
         Secretary or an Assistant Secretary of the Borrower and the Servicer
         certifying as to the incumbency and names of the individual or
         individuals authorized to sign this Agreement and the other Related
         Documents to be executed by such party, together with a sample of the
         true signature of each such individual (the Lender may conclusively
         rely on each such certificate until formally advised by a like
         certificate of any changes therein).

                  (vii)  Opinions of Counsel. Opinions of counsel from counsel
         acceptable to the Lender covering such matters as the Lender shall
         request and satisfactory in form and substance to the Lender.

                  (viii) Good Standing Certificates. Certificates of good
         standing for the Borrower and the Servicer in the jurisdiction of its
         organization and the jurisdiction of its principal place of business.

                  (ix)   Search Reports. A written search report from a Person
         satisfactory to the Lender listing all effective financing statements
         that name the Borrower or any Lessee as debtor or assignor and that
         are filed in the jurisdictions in which filings are required to be
         made pursuant to subsection (x) below, together with copies of such
         financing statements, and tax and judgment lien search reports from a
         Person satisfactory to the Lender showing no evidence of any tax or
         judgment liens filed against the Borrower or any Lessee; provided that
         the Borrower shall have until the close of business on March 10, 2000
         to deliver such reports.

                  (x)    Notation of Liens. Evidence (which, in the case of the
         filing of financing statements on form UCC-1, may be telephonic
         confirmation of such filing) that all filings (including filings of
         financing statements on form UCC-1) and recordings have been
         accomplished as may be required by law to establish, perfect, protect
         and preserve the rights, titles, interests, remedies, powers,
         privileges, licenses and security interest of (a) the Trustee in the
         Group II Collateral for the benefit of the Secured Parties, (b) the
         Trustee in the Series 2000-1 Collateral for the benefit of the Series
         2000-1 Noteholders and (c) the Borrower in the Vehicles, Repurchase
         Programs and proceeds thereof (to the extent the Group II Master Lease
         is deemed not to constitute an

                                     -21-
<PAGE>   26

         operating lease); provided that the Borrower shall have until the
         close of business on March 10, 2000 to deliver such evidence.

                  (xi)   Consents, etc. All governmental and third party
         approvals and consents necessary in connection with the Advances
         (including the execution and delivery of this Agreement and each other
         Related Document by each party hereto and thereto and their
         performance of their respective obligations hereunder and thereunder)
         and continuing operations of the Borrower and the Servicer (after
         giving effect to the consummation of the Advances) shall have been
         obtained and be in full force and effect (and, to the extent requested
         by the Lender, the Lender shall have received true and correct copies
         of such approvals and consents) and all applicable waiting periods
         shall have expired without any action being taken or threatened by any
         competent authority which would restrain, prevent or otherwise impose
         adverse conditions on any aspect of the making of any Advances.

                  (xii)  Fees. All fees due and payable pursuant to Section 2.9,
         and all reasonable and appropriately invoiced costs and expenses of
         the Lender payable by the Borrower in connection with the transactions
         contemplated hereby.

                  (xiii) Closing Date Certificate. The Closing Date Certificate
         or any substitute certificate or certificates in scope and substance
         satisfactory to the Lender, dated the Closing Date 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.

                  (xiv)  Solvency Certificate. A certificate, dated the Closing
         Date, and duly executed by a Financial Officer of the Borrower, in
         scope and substance satisfactory to the Lender, to the effect that the
         Borrower will be solvent after giving effect to the transactions
         contemplated by this Agreement.

                  (xv)   Certified Copy of Repurchase Program. A copy of each
         Repurchase Program, if any, under which Group II Vehicles will be or
         have been purchased for leasing under the Group II Master Lease and an
         Officer's Certificate of the Borrower or the applicable Lessee, dated
         the Closing Date, certifying that each such copy is true, correct and
         complete as of the Closing Date.

                  (xvi)  Additional Conditions. There shall have been satisfied
         such other conditions as the Lender shall reasonably request.

         (b) All Advances (including the Initial Advance) shall be subject to
the further conditions precedent that:

                                     -22-
<PAGE>   27

                  (i)   the Lender shall have received a completed and duly
         executed Borrowing Request therefor in substantially the form attached
         hereto as Exhibit D and a completed and duly executed Monthly
         Servicer's Certificate and the Monthly Noteholders' Statement, each
         for the Related Month immediately preceding the date of such
         Borrowing, in each case, no later than 3:00 p.m. New York City time on
         the Business Day preceding the Funding Date for such Advance;

                   (ii) on the Funding Date for such Advance, before and after
         giving effect thereto, the following statements shall be true (and the
         Borrower, by accepting the amount of such Advance, shall be deemed to
         have represented and warranted that):

                           (A) the representations and warranties of the
                  Borrower set out in this Agreement;

                           (B) the representations and warranties of Budget
                  Group set out in this Agreement; and

                           (C) the representations and warranties of the
                  Borrower and Budget Group set out in the Base Indenture and
                  the other Related Documents,

shall, in each such case, be true and accurate as of the date of the Borrowing
with the same effect as though made on and with respect to that date (unless
specifically stated to relate to an earlier date);

                  (iii) the Series 2000-1 Rapid Amortization Period has not
         commenced;

                  (iv)  no Event of Default or, with respect to the Borrower or
         the Servicer, Potential Event of Default has occurred and is
         continuing or would result from the making of such Advance;

                  (v)   all conditions specified in Section 2.1 of this
         Agreement shall have been satisfied; and

                  (vi)  the Lender shall have received such other documents and
         instruments, and the Borrower and the Servicer shall have taken all
         such other actions and delivered all such other instruments, documents
         and agreements as the Lender shall reasonably request.

         The delivery of any Borrowing Request pursuant to Section 2.2 shall
constitute a representation and warranty by the Borrower and the Servicer that
the foregoing statements are true.

         Notwithstanding anything in this Agreement to the contrary, the Lender
shall have no obligation to fund an Advance if, as of the Funding Date for such
Advance, the Lender shall have received advice

                                     -23-
<PAGE>   28

of counsel to the effect that funding such Advance would constitute a violation
of law or conflict with any material rule, regulation or order of any state or
federal court, regulatory body, administrative agency, governmental body or
arbitrator having jurisdiction over the Lender.

         SECTION 2.18 Certain Waivers. The Borrower waives presentment, demand
for payment, notice of dishonor and protest, notice of the creation of any of
the Obligations of the Borrower or any other Obligor and all other notices
whatsoever to the Borrower with respect to such Obligations. The Obligations of
the Borrower under this Agreement and the Series 2000-1 Note shall not be
affected by (i) the failure of the Lender or the holder of the Series 2000-1
Note or holders of any such Obligations to assert any claim or demand or to
exercise or enforce (or cause the Trustee to exercise or enforce) any right,
power or remedy against the Borrower or the Collateral or otherwise, (ii) any
extension or renewal for any period (whether or not longer than the original
period) or exchange of any such Obligations or the release or compromise of any
obligation of any nature of any Person with respect thereto, (iii) the
surrender, release or exchange of all or any part of any property (including
the Collateral) securing payment and performance of any such Obligations or the
compromise or extension or renewal for any period (whether or not longer than
the original period) of any obligations of any nature of any Person with
respect to any such property, and (iv) any other act, matter or thing which
would or might, in the absence of this provision, operate to release, discharge
or otherwise prejudicially affect the Obligations of the Borrower.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1 The Borrower. The Borrower hereby represents and warrants
to the Lender as of the Closing Date and each Funding Date that each of its
representations and warranties in the Base Indenture, the Group II Master Lease
and the other Related Documents is true and correct (which representations and
warranties are each hereby incorporated herein by reference, with the same
force and effect as if set forth in full herein) and further represents and
warrants that:

                  (a) Financial Information; Financial Condition. All balance
         sheets, all statements of operations, statements of shareholders'
         equity and cash flow, and other financial data (other than
         projections) which have been or shall hereafter be furnished by the
         Borrower to the Lender hereunder have been and will be prepared in
         accordance with GAAP (to the extent applicable) 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, subject, in the case of all unaudited statements, to
         normal year-end adjustments and lack of footnotes and presentation
         items.

                                     -24-
<PAGE>   29

                  (b) Solvency. Both before and after giving effect to the
         transactions contemplated by this Agreement and the other Related
         Documents, the Borrower is solvent and is not the subject of any
         voluntary or involuntary case or proceeding seeking liquidation,
         reorganization or other relief with respect to the Borrower or its
         debts under any bankruptcy or insolvency law, or of any other event of
         the type described in the definition of "Event of Bankruptcy."

                  (c) Miscellaneous. (i) No Amortization Event, Liquidation
         Event of Default or Limited Liquidation Event of Default or event
         which, with the giving of notice or the passage of time or both would
         constitute any of the foregoing, has occurred and is continuing;

                           (ii) assuming the Lender is not purchasing with a
                  view toward further distribution and there has been no
                  general solicitation or general advertising within the
                  meaning of the Securities Act, the offer and sale of the
                  Series 2000-1 Note in the manner contemplated by this
                  Agreement is a transaction exempt from the registration
                  requirements of the Securities Act, and the Base Indenture is
                  not required to be qualified under the Trust Indenture Act of
                  1939, as amended; and

                           (iii) attached hereto as Exhibits A, B and C are
                  true, correct and complete copies of the Base Indenture, the
                  Group II Master Lease and the Series 2000-1 Supplement,
                  respectively, and the Borrower has furnished to the Lender
                  true, accurate and complete copies of all other Related
                  Documents (including all other series supplements) to which
                  it is a party as of the Series 2000-1 Issuance Date, all of
                  which agreements and Related Documents are in full force and
                  effect and no terms of any such agreements or documents have
                  been amended, modified or otherwise waived as of the Series
                  2000-1 Issuance Date.

                  (d) Principal Place of Business. The Borrower's chief
executive office is located at 4225 Naperville Road, Lisle, Illinois
60535-3662.

                  (e) Delivery of Assignment Agreements. It has delivered to
the Trustee Assignment Agreements covering all Group II Vehicles to be
financed, refinanced or acquired by it as Group II Repurchase Vehicles during
the term of this Agreement.

         SECTION 3.2 Budget Group. Budget Group represents and warrants to the
Lender that:

                  (a) Accuracy of Representations and Warranties. Each
         representation and warranty made by it in the Group II Master Lease
         and each Related Document to which it is a party (including any
         representations and warranties made by it as Servicer) is true and
         correct in all material respects as of the date originally made and as
         of the Closing Date (which representations and warranties are each
         hereby incorporated herein by reference, with the same force and
         effect as if set forth in full herein).

                                     -25-
<PAGE>   30

                  (b) Financial Information; Financial Condition. The audited
         financial statements and schedules of Budget Group and its
         Subsidiaries for the period ended September 30, 1999 present fairly in
         all material respects the financial position, results of operations
         and cash flows of Budget Group at the dates and for the periods to
         which they relate and have been prepared in accordance with GAAP
         applied on a consistent basis, except as otherwise stated therein.

                  (c) Delivery of Assignment Agreements. It has delivered to
         the Trustee Assignment Agreements covering all Group II Vehicles to be
         financed, refinanced or acquired by the Borrower as Group II
         Repurchase Vehicles during the term of this Agreement.

         SECTION 3.3 The Lender. The Lender represents and warrants to the
Borrower and Budget Group, as of the date hereof (or as of a subsequent date on
which a successor as assignee of the Lender shall become a party hereto), that:

                  (a) it has had an opportunity to discuss the Borrower's and
         Budget Group's business, management and financial affairs, and the
         terms and conditions of the proposed purchase, with the Borrower and
         Budget Group and their respective representatives;

                  (b) it is an "accredited investor" within the meaning of Rule
         501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act
         and has sufficient knowledge and experience in financial and business
         matters to be capable of evaluating the merits and risks of investing
         in, and is able and prepared to bear the economic risk of investing
         in, the Series 2000-1 Note;

                  (c) it is purchasing the Series 2000-1 Note for its own
         account, or for the account of one or more "accredited investors"
         within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D
         under the Securities Act that meet the criteria described in
         subsection (b) and for which it is acting with complete investment
         discretion, for investment purposes only and not with a view to
         distribution, subject, nevertheless, to the understanding that the
         disposition of its property shall at all times be and remain within
         its control;

                  (d) it understands that the Series 2000-1 Note has not been
         and will not be registered or qualified under the Securities Act or
         any applicable state securities laws or the securities laws of any
         other jurisdiction and is being offered only in a transaction not
         involving any public offering within the meaning of the Securities Act
         and may not be resold or otherwise transferred unless so registered or
         qualified or unless an exemption from registration or qualification is
         available, that the Borrower is not required to register the Series
         2000-1 Note, and that any transfer must comply with provisions of
         Section 2.9 of the Base Indenture;

                  (e) it understands that the Series 2000-1 Note will bear the
         legend set forth in the form of Series 2000-1 Note attached as Exhibit
         A to the Series 2000-1 Supplement and be subject to the restrictions
         on transfer described in such legend;

                                     -26-
<PAGE>   31

                  (f) it will comply with all applicable federal and state
         securities laws in connection with any subsequent resale by it of the
         Series 2000-1 Note;

                  (g) it understands that the Series 2000-1 Note may be
         offered, resold, pledged or otherwise transferred only (A) to the
         Borrower, (B) in a transaction meeting the requirements of Rule 144A
         under the Securities Act, (C) outside the United States to a foreign
         person in a transaction meeting the requirements of Regulation S under
         the Securities Act, or (D) in a transaction complying with or exempt
         from the registration requirements of the Securities Act and, in each
         case, in accordance with any applicable securities laws of any state
         of the United States or any other jurisdiction;

                  (h) if it desires to offer, sell or otherwise transfer,
         pledge or hypothecate the Series 2000-1 Note as described in clause
         (B) or (D) of the preceding paragraph (g), the transferee of the
         Series 2000-1 Note will be required to deliver a certificate and may
         under certain circumstances be required to deliver an opinion of
         counsel, in each case, as described in the Base Indenture, reasonably
         satisfactory in form and substance to the Borrower, that an exemption
         from the registration requirements of the Securities Act applies to
         such offer, sale, transfer or hypothecation. Upon original issuance
         thereof, and until such time as the same may no longer be required
         under the applicable requirements of the Securities Act, the
         certificate evidencing the Series 2000-1 Note (and all securities
         issued in exchange therefor or in substitution thereof) shall bear a
         legend substantially in the form that appears on the form of Series
         2000-1 Note included in the Series 2000-1 Supplement. The Lender
         understands that the registrar and transfer agent for the Series
         2000-1 Note will not be required to accept for registration of
         transfer the Series 2000-1 Note acquired by it, except upon
         presentation of an executed certificate or opinion of counsel, as
         described above; and

                  (i) it will obtain from any purchaser of the Series 2000-1
         Note substantially the same representations and warranties contained
         in the foregoing paragraphs.

                                   ARTICLE IV

                                   COVENANTS

         SECTION 4.1 Affirmative Covenants. The Borrower and Budget Group each
severally covenants and agrees that, until the Series 2000-1 Note has been paid
in full and the obligation of the Lender to make Advances has terminated, it
will:

                  (a) duly and timely perform all of its covenants and
         obligations under each Related Document to which it is a party and,
         with respect to Budget Group, the Credit Agreement and each Loan
         Document (as defined in the Credit Agreement) to which it is a party
         (which

                                     -27-
<PAGE>   32

         covenants are each hereby incorporated herein by reference, with the
         same force and effect as if set forth in full herein);

                  (b) at the same time any report, notice or other document is
         provided to the Trustee, or caused to be provided, by the Borrower or
         Budget Group under the Base Indenture (including, without limitation,
         under Sections 8.3, 8.10, 8.11 and/or 8.14 thereof) or the Series
         2000-1 Supplement, or by Budget Group to the Borrower under the Group
         II Master Lease (including, without limitation, under Section 28.5
         thereof), provide the Lender with a copy of such report, notice or
         other document; provided, however, that neither Budget Group nor the
         Borrower shall have any obligation under this Section 4.1(b) to
         deliver to the Lender copies of any (i) Monthly Noteholders'
         Statements which relate solely to a series of Notes other than the
         Series 2000-1 Note or (ii) vehicle identification number listings;

                  (c) at any time and from time to time, following reasonable
         prior notice from the Lender, and during regular business hours,
         permit the Lender, or its agents, representatives or permitted
         assigns, access to the offices of Budget Group and the Borrower, as
         applicable, (i) to examine and make copies of and abstracts from all
         documentation relating to the Collateral on the same terms as are
         provided to the Trustee under Section 8.8 of the Base Indenture, as
         applicable, and (ii) to visit the offices and properties of Budget
         Group and the Borrower for the purpose of examining such materials
         described in clause (i) above, and to discuss matters relating to the
         Group II Collateral, or the administration and performance of the Base
         Indenture, the Series 2000-1 Supplement and the other Related
         Documents with any of the officers or employees of Budget Group and/or
         the Borrower, as applicable, having knowledge of such matters;

                  (d) at any time during the Series 2000-1 Rapid Amortization
         Period, upon the written request of the Lender in its sole discretion,
         provide a Hedging Agreement, in form and substance satisfactory to the
         Lender, and pay in full all amounts due and payable from time to time
         thereunder;

                  (e) promptly furnish to the Lender such other information as
         the Lender may reasonably request, in such form as the Lender may
         reasonably request;

                  (f) do such further acts and things, and execute and deliver
         to the Lender such additional assignments, agreements, powers and
         instruments, as the Lender reasonably determines to be necessary to
         carry into effect the purposes of this Agreement or to better assure
         and confirm unto the Lender its rights, powers and remedies hereunder
         or to enforce any right or remedy of the Borrower against the Lessees
         or the Guarantor under the Group II Master Lease;

                                     -28-
<PAGE>   33

                  (g) (i) provide the Lender with at least 30 days prior
         written notice of its intention to purchase, finance or refinance
         Group II Vehicles manufactured by any new Manufacturer, (ii) provide
         the Lender with a copy of the draft Repurchase Program of such
         Manufacturer as it then exists at the time of such notice and a copy
         of the final Repurchase Program promptly upon its being available and
         (iii) certify to the Lender that such new Manufacturer is an Eligible
         Manufacturer and, if the Borrower intends to purchase, finance or
         refinance Group II Repurchase Vehicles from such Manufacturer, that
         such Repurchase Program is an Eligible Repurchase Program at such
         time; and

                  (h) use commercially reasonable efforts (i) to cause each
         applicable Lessee to maintain good, legal and marketable title to all
         Financed Vehicles that are Group II Vehicles owned by such Lessee,
         free and clear of all Liens except for Permitted Liens and (ii) to
         cause Borrower to maintain good, legal and marketable title to the
         Initial Fleet and all Lessor-Owned Vehicles that are Group II
         Vehicles, free and clear of all Liens except for Permitted Liens.

                  (i) cooperate with the Lender, and each counsel delivering a
         legal opinion requested by the Lender or any rating agency delivering
         a confirmation of its rating of any Notes issued by the Borrower
         pursuant to the Indenture, in providing such information and
         certifications and making such changes or amendments to this Agreement
         and the Related Documents as such counsel reasonably requests in order
         to provide such opinion.

                  (j) deliver opinions of counsel in form and substance
         satisfactory to the Lender with respect to (i) corporate matters of
         the Borrower, Budget Group and the Lessees, (ii) Virginia state tax
         matters and (iii) matters relating to the Florida general intangibles
         tax.

         SECTION 4.2 Negative Covenants. The Borrower will not and Budget Group
will cause the Borrower not to:

                  (a) (i) permit the validity or effectiveness of this Agreement
         or of any Lien in favor of the Trustee, the Lessor or the Secured
         Parties arising under the Group II Master Lease or the Series 2000-1
         Supplement to be impaired, or permit the Lien of the Trustee on behalf
         of the Lender or any such other Lien to be amended, hypothecated,
         subordinated, terminated or discharged, or permit any Person to be
         released from any covenants or obligations under this Agreement or any
         Related Document except as may be expressly permitted hereby, or (ii)
         permit the Lien of the Trustee on behalf of the Lender not to
         constitute a valid first priority perfected security interest in the
         Collateral;

                  (b) issue or register the transfer of any of its Capital
         Stock to any Person other than Budget Group;

                                     -29-
<PAGE>   34

                  (c) except as may be permitted by the express written
         approval of the Lender, merge with or into, enter into any joint
         venture or other association with, or consolidate with, any other
         Person;

                  (d) agree, to the extent any consent of the Borrower is
         solicited or required by the Manufacturer or any assignor of any
         Repurchase Program, to any change in any Repurchase Program that is
         reasonably likely to materially adversely affect its rights or the
         rights of the Secured Parties with respect to any Group II Vehicle
         previously purchased under such Repurchase Program; and

                  (e) except as contemplated by Section 3.2(a) of the Base
         Indenture with respect to the Group II Master Lease or clauses (c)
         through (h) of Section 12.1 of the Base Indenture, amend or otherwise
         modify the Base Indenture or any Related Document to which it is a
         party or grant any waiver or consent thereunder, without the prior
         written consent of the Lender.

         SECTION 4.3 Information as to the Borrower. The Borrower shall file
with the Lender:

                  (a) within 15 days after it files them with the Commission,
         copies of the annual reports and of the information, documents and
         other reports (or copies of such portions of any of the foregoing as
         the Commission may by rules and regulations prescribe) which the
         Servicer is required to file with the Commission pursuant to Section
         13 or 15(d) of the Exchange Act;

                  (b) immediately upon becoming aware of the existence of any
         condition or event which constitutes a Potential Event of Default or
         an Event of Default, a written notice describing its nature and period
         of existence and what action the Borrower is taking or proposes to
         take with respect thereto; and

                  (c) promptly upon the Borrower's becoming aware of:

                           (i)  any proposed or pending investigation of it by
                  any Governmental Authority or agency, or

                           (ii) any pending or proposed court or administrative
                  proceeding

         which involves or may involve the possibility, individually or in the
         aggregate, of a material adverse effect on the properties, business,
         profits or condition (financial or otherwise) of the Borrower or the
         validity or enforceability of the Related Documents, a written notice
         specifying the nature of such investigation or proceeding and what
         action the Borrower is taking or proposes to take with respect thereto
         and evaluating its merits.

                                     -30-
<PAGE>   35

         SECTION 4.4 Payment of Taxes and Other Claims. The Borrower will pay
or discharge or cause to be paid or discharged, before any penalty accrues from
the failure to so pay or discharge, (1) all taxes, assessments and governmental
charges levied or imposed upon the Borrower or upon the income, profits or
property (including any property that is part of the Collateral) of the
Borrower and (2) all lawful claims for labor, materials and supplies which, if
unpaid, might by law become a Lien upon the property of the Borrower; provided,
however, that the Borrower shall not be required to pay or discharge or cause
to be paid or discharged any such tax, assessment, charge or claim the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate provision has been made or where
the failure to effect such payment or discharge is not adverse in any material
respect to the Lender. The Borrower and Budget Group are members of an
affiliated group within the meaning of Section 1504 of the Code which has
filed, and will continue to file, a consolidated return for federal income tax
purposes, and the Borrower shall be included in consolidated federal income tax
returns filed by Budget Group for such affiliated group.

         SECTION 4.5 Indemnification. In consideration of the execution and
delivery of this Agreement by the Lender and the extension of the Commitment
hereunder, the Borrower and Budget Group, jointly and severally, hereby
indemnify, exonerate and hold the Lender, each SPC, and each of the officers,
directors, employees and agents of each of them (collectively, the "Indemnified
Parties") free and harmless from and against any and all actions, causes of
action, suits, losses, costs, liabilities and damages, and expenses incurred in
connection therewith (irrespective of whether any such Indemnified Party is a
party to the action for which indemnification hereunder is sought), including
reasonable attorneys' fees and disbursements whether incurred in connection
with actions between or among the parties hereto or the parties hereto and
third parties (collectively, the "Indemnified Liabilities"), incurred by the
Indemnified Parties or any of them as a result of, or arising out of, or
relating to

                  (a) any transaction financed or to be financed in whole or in
         part, directly or indirectly, with the proceeds of any Advance,
         including all Indemnified Liabilities arising in connection with the
         transactions contemplated under the Related Documents;

                  (b) the entering into and performance of this Agreement and
         any other Related Document by any of the Indemnified Parties
         (including any action brought by or on behalf of the Borrower as the
         result of any determination by the Lender pursuant to Article II not
         to fund any Advance; provided that any such action is resolved by
         final judgment of a court of competent jurisdiction in favor of such
         Indemnified Party);

                  (c) any investigation, litigation or proceeding related to
         any acquisition or proposed acquisition by Budget Group or any of its
         Subsidiaries of all or any portion of the Capital Stock or assets of
         any Person, whether or not the Lender is party thereto;

                                     -31-
<PAGE>   36

                  (d) any investigation, litigation or proceeding related to
         any environmental cleanup, audit, compliance or other matter relating
         to the protection of the environment or the Release by Budget Group or
         any of its Subsidiaries of any Hazardous Material; or

                  (e) the presence on or under, or the escape, seepage,
         leakage, spillage, discharge, emission, discharging or releases from,
         any real property owned or operated by Budget Group or any Subsidiary
         thereof of any Hazardous Material (including any losses, liabilities,
         damages, injuries, costs, expenses or claims asserted or arising under
         any Environmental Law), regardless of whether caused by, or within the
         control of, Budget Group or such Subsidiary;

except for any such Indemnified Liabilities arising for the account of a
particular Indemnified Party by reason of the relevant Indemnified Party's
gross negligence or willful misconduct or a breach by such Indemnified Party
(or its agents or employees or any other Person under its control) of any of
its obligations under this Agreement, as determined by a final judgment of a
court of competent jurisdiction. If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Borrower and Budget Group,
jointly and severally, hereby agree to make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law. Provided, however, the indemnification
provided under this Section 4.5 is not intended to create credit recourse to
Budget Group for the Borrower's failure to repay any principal of or interest
on any Advance.

         SECTION 4.6 Maintenance of Separate Existence. Each of the Borrower
and Budget Group 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 it. Each of the
Borrower and Budget Group hereby agrees to maintain in place all policies and
procedures, and take and continue to take all actions, described in the factual
assumptions set forth in such opinion letter and relating to it.

                                   ARTICLE V

                               EVENTS OF DEFAULT

         SECTION 5.1 Events of Default. Each of the following events or
occurrences described in this Section 5.1 shall constitute an "Event of
Default":

                  (a) Non-Payment of Obligations. The Borrower shall (a) fail
         to make a payment of principal of any Advance and such failure shall
         continue for one Business Day (with respect to payments due on the
         Maturity Date) or for two Business Days (with respect to principal
         payments due on any date other than the Maturity Date); or (b) fail to
         make a payment of any

                                     -32-
<PAGE>   37

         interest on any Advance, any fees or any other amounts payable
         hereunder on the date on which such payment is due and such failure
         shall continue for five days.

                  (b) Breach of Warranty. Any representation or warranty made
         by the Borrower or Budget Group herein or in any other Related
         Document to which it is a party shall have been incorrect as of the
         date such representation or warranty is made and such representation
         or warranty shall continue to be incorrect for a period of 30 days
         after the earlier of (i) the date on which written notice thereof
         shall have been given to the Borrower by the Lender and (ii) the date
         on which the Borrower or Budget Group obtains actual knowledge
         thereof, or any certificate, financial statement or any other material
         writing furnished by the Borrower or Budget Group pursuant to this
         Agreement or any such other Related Document shall have been incorrect
         in any material respect when made (or deemed made) and such
         certificate, statement or other writing shall continue to be incorrect
         in any material respect for a period of 10 days (other than with
         respect to any Officer's Certificate with respect to the Series 2000-1
         Aggregate Asset Amount or the absence of a Series 2000-1 Asset Amount
         Deficiency, for which such period is one Business Day) after the
         earlier of (a) the date on which written notice thereof shall have
         been given to the Borrower by the Lender and (b) the date on which the
         Borrower or Budget Group obtains actual knowledge thereof.

                  (c) Non-Performance of Certain Covenants and Obligations. The
         Borrower or Budget Group shall default in the due performance and
         observance of any of its obligations under Sections 8.15 through 8.25
         of the Base Indenture, Section 29 of the Group II Master Lease or
         Section 4.2 hereof and such default shall continue unremedied for a
         period of ten days after the earlier of (i) the date on which written
         notice thereof shall have been given to the Borrower or Budget Group
         by the Lender and (ii) the date on which the Borrower or Budget Group
         obtains actual knowledge thereof.

                  (d) Non-Performance of Other Covenants and Obligations. The
         Borrower or Budget Group shall default in the due performance and
         observance of any covenant or agreement contained herein or in any
         other Related Document to which it is a party (other than those
         specified in clauses (a), (b) and (c) above or in clause (j) below),
         and, in the case of defaults other than with respect to Section 4.3(b)
         or 4.3(c), such default shall continue unremedied for a period of 30
         days after notice thereof shall have been given to the Borrower or
         Budget Group by the Lender or, in the case of Section 4.3(b) or
         4.3(c), such default shall continue unremedied for a period of 30 days
         after the Borrower or Budget Group initially becomes aware of such
         failure to perform or comply with such covenant.

                  (e) Judgments. Any final and unappealable (or, if capable of
         appeal, such appeal is not being diligently pursued or enforcement
         thereof has not been stayed) judgment or order for the payment of
         money in excess of $100,000, shall be rendered against the Borrower
         and such judgment or order shall continue unsatisfied and unstayed for
         a period of 60 consecutive days.

                                     -33-
<PAGE>   38

                  (f) Bankruptcy, Insolvency, etc. The occurrence of any Event
         of Bankruptcy with respect to the Borrower, Budget Group or any
         Lessee.

                  (g) Independent Directors. The Borrower shall fail to have at
         least one Independent Director (as such term is defined in the
         Borrower's then effective certificate of incorporation) on its board
         of directors and such failure shall have continued for a period of 30
         days.

                  (h) Enforceability of or Default under Related Documents. (a)
         Any of the Related Documents or any portion thereof shall not be in
         full force and effect, enforceable in accordance with its terms or the
         Borrower, Budget Group or any Manufacturer shall so assert in writing,
         (b) any Lease Event of Default shall occur under the Group II Master
         Lease, or (c) any Amortization Event with respect to the Series 2000-1
         Note, as defined in Section 9.1 of the Base Indenture and Article 7 of
         the Series 2000-1 Supplement, shall occur.

                  (i) Investment Company. The Borrower shall have become an
         "investment company" or shall have become under the "control" of an
         "investment company" under the Investment Company Act.

                  (j) Opinions of Counsel. The Borrower shall fail (i) to
         provide within 3 Business Days of request by counsel any information
         or certification which is reasonably requested by legal counsel as
         contemplated in Section 4,1(i), (ii) to cooperate in good faith in
         making any change or amendment to this Agreement or any Related
         Documents, which is reasonably requested by legal counsel as
         contemplated in Section 4,1(i) or (iii) to deliver on or before the
         close of business on March 10, 2000 any opinion of counsel required to
         be delivered pursuant to Section 4.1(j).

         SECTION 5.2 Remedies Upon Default. During the continuance of one or
more Events of Default the Lender may, by notice to the Borrower and the
Trustee, immediately declare the Maturity Date to have occurred and the
principal of the Series 2000-1 Note to be immediately due and payable, together
with all interest thereon and fees, expenses and other amounts owing under this
Agreement, and declare the Commitment hereunder (if not theretofore terminated)
to be terminated; provided that, upon the occurrence of the Event of Default
referred to in Section 5.1(f), such amounts shall immediately and automatically
become due and payable and the Commitment (if not theretofore terminated) shall
immediately and automatically be terminated without any further action by any
Person or entity. Upon such declaration or such automatic acceleration, the
balance then outstanding on the Series 2000-1 Note, all accrued and unpaid
interest thereon and all fees, expenses and other amounts due to the Lender or
an SPC under this Agreement shall become immediately due and payable without
presentation, demand or further notice of any kind to the Borrower, subject to
Section 6.12 hereof.

                                     -34-
<PAGE>   39

         SECTION 5.3 No Waiver. The failure to exercise any of the rights and
remedies set forth in this Agreement shall not constitute a waiver of the right
to exercise the same or any other option at any subsequent time in respect of
the same Event of Default or any other Event of Default. The acceptance by the
Lender of any payment hereunder which is less than payment in full of all
amounts due and payable at the time of such payment shall not constitute a
waiver of the right to exercise any of the foregoing rights and remedies at
that time or at any subsequent time or nullify any prior exercise of any such
rights and remedies without the express consent of Lender, except as and to the
extent otherwise provided by law.

                                   ARTICLE VI

                                 MISCELLANEOUS

         SECTION 6.1 No Amendments. No amendment to or waiver of any provision
of this Agreement, nor consent to any departure by Budget Group or the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by Budget Group, the Borrower and the Lender. A copy of any
amendment shall be furnished by the Borrower to the Trustee.

         SECTION 6.2 No Waiver; Remedies. Any waiver, consent or approval given
by any party hereto shall be effective only in the specific instance and for
the specific purpose for which given, and no waiver by a party of any breach or
default under this Agreement shall be deemed a waiver of any other breach or
default. No failure on the part of any party hereto to exercise, and no delay
in exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder, or any abandonment or
discontinuation of steps to enforce the right, power or privilege, preclude any
other or further exercise thereof or the exercise of any other right. No notice
to or demand on any party hereto in any case shall entitle such party to any
other or further notice or demand in the same, similar or other circumstances.
The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

         SECTION 6.3 Binding on Successors and Assigns. (a) This Agreement shall
be binding upon, and inure to the benefit of the Borrower, the Servicer and the
Lender and their respective successors and assigns; provided, however, that
neither the Borrower nor the Servicer may assign its rights or obligations
hereunder or in connection herewith or any interest herein (voluntarily, by
operation of law or otherwise) without the prior written consent of the Lender;
and provided, further, that, except as otherwise contemplated in Section 2.6,
the Lender may not transfer, pledge, assign or otherwise encumber its rights or
obligations hereunder or in connection herewith or any interest herein without
the prior written consent of the Borrower (which consent shall not be
unreasonably delayed or withheld and which consent (i) shall be deemed to have
been given in the absence of a written notice delivered by the Borrower to the
Lender, on or before the fifth Business Day after receipt by the Borrower of
the Lender's request for consent, stating, in reasonable detail, the reasons
why the Borrower proposes to

                                     -35-
<PAGE>   40

withhold such consent and (ii) shall not be required if an Event of Default has
occurred and is then continuing), except to an Affiliate thereof which is an
Eligible Assignee or as otherwise permitted under this Section 6.3. Nothing
expressed herein is intended or shall be construed to give any Person other
than the Persons referred to in the preceding sentence any legal or equitable
right, remedy or claim under or in respect of this Agreement.

         (b) Notwithstanding any other provision set forth in this Agreement,
the Lender may at any time grant to one or more commercial banks or other
financial institutions (each of such commercial banks and other financial
institutions being herein called a "Participant") a participating interest in
or lien on the Lender's interests in the Advances made hereunder and such
Participant, with respect to its participating interest, shall be entitled to
the benefits of the Lender under this Agreement.

         SECTION 6.4 Survival of Agreement. All covenants, agreements,
representations and warranties made herein and in the Series 2000-1 Note
delivered pursuant hereto shall survive the making and the repayment of the
Advances and the execution and delivery of this Agreement and the Series 2000-1
Note and shall continue in full force and effect until all interest and
principal on the Series 2000-1 Note and other amounts owed hereunder have been
paid in full and the commitment of the Lender hereunder has been terminated. In
addition, the obligations of the Borrower under Sections 2.11 through 2.16, 4.5
and 6.5 shall survive the expiration or other termination of this Agreement.

         SECTION 6.5 Payment of Costs and Expenses. The Borrower and Budget
Group, jointly and severally, agree to pay on demand all expenses of the Lender
(including the reasonable fees and out-of-pocket expenses of rating agencies,
counsel to the Lender and local counsel, if any, who may be retained by counsel
to the Lender) in connection with

         (a) the negotiation, preparation, execution, delivery and
administration of this Agreement and of each other Related Document, including
schedules and exhibits, and any amendments, waivers, consents, supplements or
other modifications to this Agreement or any other Related Document as may from
time to time hereafter be required, whether or not the transactions
contemplated hereby or thereby are consummated;

         (b) the filing, recording, refiling or rerecording of any Related
Document and/or any Uniform Commercial Code financing statements relating
thereto and all amendments, supplements, amendments and restatements and other
modifications to any thereof and any and all other documents or instruments of
further assurance required to be filed or recorded or refiled or rerecorded by
the terms hereof or the terms of any Related Document;

         (c) the preparation and review of the form of any document or
instrument relevant to this Agreement or any other Related Document; and

         (d) the transactions contemplated by this Agreement and any of the
other Related Documents.

                                     -36-
<PAGE>   41

The Borrower and Budget Group, jointly and severally, further agree to pay, and
to save the Lender harmless from all liability for, any stamp, issuance, excise
or other similar taxes which may be payable in connection with the execution or
delivery of this Agreement, the Advances hereunder, the issuance of the Series
2000-1 Note or any other Related Documents. The Borrower and Budget Group,
jointly and severally, also agree to reimburse the Lender upon demand for all
reasonable out-of-pocket expenses (including reasonable attorneys' fees and
legal expenses) incurred by the Lender in connection with (x) the negotiation
of any restructuring or "work-out", whether or not consummated, of any
Obligations and (y) the enforcement of any Obligations.

         SECTION 6.6 Characterization as Related Document; Entire Agreement.
This Agreement shall be deemed to be a Related Document for all purposes of the
Base Indenture and the other Related Documents. This Agreement, together with
the Base Indenture, the Series 2000-1 Supplement, the documents delivered
pursuant to Section 2.17 and the other Related Documents, including the
exhibits and schedules thereto, contains a final and complete integration of
all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with
respect to the subject matter hereof, superseding all previous oral statements
and other writings with respect thereto.

         SECTION 6.7 Notices. All communications hereunder shall be in writing
(except that notices pursuant to Sections 2.1, 2.2, 2.5 and 2.7 may be given by
telephone promptly confirmed in writing or by facsimile transmission) and shall
be deemed to have been duly given if personally delivered, sent by overnight
courier or mailed by registered mail, postage prepaid and return receipt
requested, or transmitted by telex or facsimile transmission and confirmed by a
similar mailed writing to any party at the address for that party set forth (a)
on the signature page to this Agreement or (b) to another address as that party
may designate in writing to the Borrower.

         SECTION 6.8 Severability of Provisions. Any covenant, provision,
agreement or term of this Agreement that is prohibited or is held to be void or
unenforceable in any jurisdiction shall, as to such provision and that
jurisdiction, be ineffective to the extent of the prohibition or
unenforceability without invalidating the remaining provisions of this
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction.

         SECTION 6.9 Counterparts. This Agreement may be executed in any number
of counterparts (which may include facsimile) and by the different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original, and all of which together shall constitute one and the same
instrument.

         SECTION 6.10 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE CONFLICT OF LAWS PRINCIPLES THEREOF

                                     -37-
<PAGE>   42

EXCEPT AS OTHERWISE CONTEMPLATED IN SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK.

         SECTION 6.11 Tax Characterization. Each party to this Agreement (a)
acknowledges that it is the intent of the parties to this Agreement that, for
accounting purposes and for all Federal, state and local income and franchise
tax purposes, the Series 2000-1 Note will be treated as evidence of
indebtedness issued by the Borrower, (b) agrees to treat the Series 2000-1 Note
for all such purposes as indebtedness and (c) agrees that the provisions of the
Related Documents shall be construed to further these intentions.

         SECTION 6.12 No Proceedings; Limited Recourse. Each of Budget Group
and the Lender (solely in its capacity as such) hereby covenants and agrees
that it will not institute against the Borrower, or join any other Person in
instituting against the Borrower, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding so long as any Notes issued by the
Borrower pursuant to the Base Indenture shall be outstanding or there shall not
have elapsed one year plus one day since the last day on which any such Notes
shall have been outstanding, all as more particularly set forth in Section
13.17 of the Base Indenture and subject to any retained rights set forth
therein. In addition, each of the foregoing parties agree that all fees,
expenses and other costs payable hereunder by the Borrower shall be payable
only to the extent set forth in Section 13.18 of the Base Indenture and that
all other amounts owed to them by the Borrower shall be payable solely from
amounts that become available for payment pursuant to the Base Indenture and
the Series 2000-1 Supplement.

         SECTION 6.13 Confidentiality. The Lender shall hold all non-public
information provided to them by Budget Group or any of its Subsidiaries
pursuant to or in connection with this Agreement (excluding any information
that becomes available to the Lender on a nonconfidential basis without
violation of this Section) in accordance with the Lender's customary procedures
for handling confidential information of this nature, but may make disclosure
to any of its examiners, regulators (including the National Association of
Insurance Commissioners), Affiliates, outside auditors, counsel and other
professional advisors in connection with this Agreement or any other Related
Document or as reasonably required by any potential bona fide transferee,
participant or assignee, or in connection with the exercise of remedies under a
Related Document, or as requested by any governmental agency or representative
thereof or pursuant to legal process or in connection with applicable
litigation; provided, however, that unless specifically prohibited by
applicable law or court order, the Lender shall promptly notify the Borrower of
any request by any governmental agency or representative thereof (other than
any such request in connection with an examination of the financial condition
of the Lender by such governmental agency) for disclosure of any such
non-public information and, where practicable, prior to disclosure of such
information; prior to any such disclosure pursuant to this Section 6.13, the
Lender shall require any such bona fide transferee, participant and assignee
receiving a disclosure of non-public information to agree, for the benefit of
Budget Group and its Subsidiaries, in writing to be bound by this Section 6.13;
and to require such Person to require any other Person to whom such Person
discloses such non-public information to be similarly bound by this Section
6.13; and except as may be

                                     -38-
<PAGE>   43

required by an order of a court of competent jurisdiction and to the extent set
forth therein, the Lender shall not be obligated or required to return any
materials furnished by Budget Group or any of its Subsidiaries.

         SECTION 6.14 Lender May Act Through Affiliates or Agents. The Lender
may, from time to time, designate one or more Affiliates or agents for the
purpose of performing any action hereunder.

         SECTION 6.15 Other Transactions. Nothing contained herein shall
preclude the Lender from engaging in any transaction, in addition to those
contemplated by this Agreement or any other Related Document, with the Borrower
or any of its Affiliates in which the Borrower or such Affiliate is not
restricted hereby from engaging in with any other Person.

         SECTION 6.16 Independence of Covenants. All covenants contained in
this Agreement and each other Related Document shall be given independent
effect such that, in the event a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or be otherwise within the limitations of, another covenant shall
not, unless expressly so provided in such first covenant, avoid the occurrence
of a Potential Event of Default or an Event of Default if such action is taken
or such condition exists.

         SECTION 6.17 Forum Selection and Consent to Jurisdiction. ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER RELATED DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER, THE
SERVICER OR THE BORROWER SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE
COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
LENDER'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR
OTHER PROPERTY MAY BE FOUND. EACH OF THE BORROWER AND THE SERVICER HEREBY
EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE
AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN
CONNECTION WITH SUCH LITIGATION. EACH OF THE BORROWER AND THE SERVICER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH
OF THE BORROWER AND THE SERVICER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION

                                     -39-
<PAGE>   44

WHICH SUCH PERSON MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT
THAT THE BORROWER OR THE SERVICER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION
OR OTHERWISE) WITH RESPECT TO SUCH PERSON OR THE PROPERTY OF SUCH PERSON, SUCH
PERSON HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF THE OBLIGATIONS OF
SUCH PERSON UNDER THIS AGREEMENT AND THE OTHER RELATED DOCUMENTS.

         SECTION 6.18 Waiver of Jury Trial. THE LENDER, THE SERVICER AND THE
BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER
RELATED DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER, THE SERVICER OR THE
BORROWER. EACH OF THE BORROWER AND THE SERVICER ACKNOWLEDGES AND AGREES THAT IT
HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH
OTHER PROVISION OF EACH OTHER RELATED DOCUMENT TO WHICH IT IS A PARTY) AND THAT
THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER ENTERING INTO THIS
AGREEMENT AND EACH SUCH OTHER RELATED DOCUMENT.

         SECTION 6.19 Third-Party Beneficiaries. Each SPC and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Agreement, and shall be entitled to rely upon and directly enforce the
provisions of this Agreement.

               [REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

                                     -40-
<PAGE>   45

         IN WITNESS WHEREOF, the parties have executed this Agreement the day
and year first above written:

                                     TEAM FLEET FINANCING CORPORATION,
                                     as Borrower

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

                                     Address:

                                     Telephone:

                                     BUDGET GROUP, INC., as Servicer

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

                                     Address:

                                     Telephone:
                                     Telecopier:

<PAGE>   46

                                     CREDIT SUISSE FIRST BOSTON,
                                     NEW YORK BRANCH, as Lender

                                     By: /s/ Anthony Giordano
                                        ---------------------------------------
                                        Name: Anthony Giordano
                                        Title: Vice President

                                     By: /s/ Elizabeth Whalen
                                        ---------------------------------------
                                        Name: Elizabeth Whalen
                                        Title: Associate

                                     Domestic Office

                                     Address:     Eleven Madison Avenue
                                                  New York, NY 10010-3629

                                     Attention:   Elizabeth Whalen
                                     Telephone:   (212) 325-9105
                                     Telecopier:  (212) 325-6677

                                     Eurodollar Office

                                     Address:     Eleven Madison Avenue
                                                  New York, NY 10010-3629

                                     Attention:   Elizabeth Whalen
                                     Telephone:   (212) 325-9105
                                     Telecopier:  (212) 325-6677

<PAGE>   47

                                   EXHIBIT A
                                 BASE INDENTURE

<PAGE>   48

                                   EXHIBIT B

                             Group II MASTER LEASE

<PAGE>   49

                                   EXHIBIT C

                           SERIES 2000-1 SUPPLEMENT

<PAGE>   50

                                   EXHIBIT D

                           FORM OF BORROWING REQUEST

Credit Suisse First Boston,
New York Branch
Eleven Madison Avenue
20th Floor
New York, NY 10010-3629

Attention: Elizabeth Whalen

                               BORROWING REQUEST

Gentlemen and Ladies:

         This Borrowing Request is delivered to you pursuant to Section 2.2 of
the Bridge Loan Agreement, dated as of February 25, 2000 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
"Bridge Loan Agreement"), among TEAM FLEET FINANCING CORPORATION, a Delaware
corporation (the "Borrower"), BUDGET GROUP, INC. (the "Servicer") and CREDIT
SUISSE FIRST BOSTON, NEW YORK BRANCH (the "Lender"). Unless otherwise defined
herein or the context otherwise requires, terms used herein have the meanings
provided in the Bridge Loan Agreement.

         The Borrower hereby requests that an Advance be made in the aggregate
principal amount of $__________ on __________, __ as [a Eurodollar Advance
having an Interest Period expiring on _______](1) [an ABR Advance].

         The Borrower hereby acknowledges that, pursuant to Section 2.17 of the
Bridge Loan Agreement, each of the delivery of this Borrowing Request and the
acceptance by the Borrower of the proceeds of the Advances requested hereby
constitute a representation and warranty by the Borrower that, on the date of
the making of such Advances, and before and after giving effect thereto and to
the application of the proceeds therefrom, all statements set forth in Section
2.17(b)(ii) are true and correct in all material respects.

         The Borrower agrees that if prior to the time of the Borrowing
requested hereby any matter certified to herein by it will not be true and
correct at such time as if then made, it will immediately so notify the Lender.
Except to the extent, if any, that prior to the time of the Borrowing requested
hereby
---------
(1)Fill in next Distribution Date.

<PAGE>   51

the Lender shall receive written notice to the contrary from the Borrower, each
matter certified to herein shall be deemed once again to be certified as true
and correct at the date of such Borrowing as if then made.

           Please wire transfer the proceeds of the Borrowing to the Series
2000-1 Collection Account maintained at the financial institutions indicated
respectively:

<TABLE>
<CAPTION>

                                       Person to be Paid
                                -------------------------------
Amount to be
Transferred                        Name             Account No.
<S>                             <C>                 <C>

$----------                     ----------          -----------
</TABLE>

           The Borrower has caused this Borrowing Request to be executed and
delivered, and the certification and warranties contained herein to be made, by
its duly Authorized Officer this ____ day of __________, ____.

                                        TEAM FLEET FINANCING CORPORATION

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

<PAGE>   52

                                   EXHIBIT E

                        FORM OF CLOSING DATE CERTIFICATE

                        TEAM FLEET FINANCING CORPORATION
                            CLOSING DATE CERTIFICATE

         The undersigned, the ____________ of Team Fleet Financing Corporation,
a Delaware corporation ("TFFC"), pursuant to Section 2.17(a)(xiii) of that
certain Bridge Loan Agreement, dated as of February 25, 2000 (the "Bridge Loan
Agreement"), among TFFC, Budget Group, Inc., and Credit Suisse First Boston,
New York Branch, does hereby certify that as of the date hereof:

         1. The representations and warranties of TFFC in the Bridge Loan
Agreement and each of the Related Documents to which TFFC is a party are true
and correct (in all material respects to the extent such representations and
warranties do not incorporate a materiality limitation in their terms) on the
date hereof as though made on and as of the date hereof. TFFC has duly
performed, in all material respects, all obligations required to be performed
by it on or prior to the date hereof, and has satisfied, in all material
respects, all conditions to be satisfied by it, in each case, pursuant to the
terms of the Bridge Loan Agreement and each of the Related Documents to which
TFFC is a party.

         2. No Event of Default or, to the best of the undersigned's knowledge
with respect to the Borrower or the Servicer, Potential Event of Default, has
occurred and is continuing.

         Capitalized terms used herein and not defined herein shall have the
meaning assigned to such terms in the Bridge Loan Agreement.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as
of this __ day of February, 2000.

                                     TEAM FLEET FINANCING CORPORATION

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

<PAGE>   53

                                   EXHIBIT F

                     FORM OF CONTINUATION/CONVERSION NOTICE

Credit Suisse First Boston,
New York Branch
Eleven Madison Avenue
20th Floor
New York, NY 10010-3629

Attention: Elizabeth Whalen

                         CONTINUATION/CONVERSION NOTICE

Gentlemen and Ladies:

         This Continuation/Conversion Notice is delivered to you pursuant to
Section 2.5 of the Bridge Loan Agreement, dated as of February 25, 2000 (as
amended, supplemented, amended and restated or otherwise modified from time to
time, the "Bridge Loan Agreement"), among TEAM FLEET FINANCING CORPORATION, a
Delaware corporation (the "Borrower"), BUDGET GROUP, INC. (the "Servicer") and
CREDIT SUISSE FIRST BOSTON, NEW YORK BRANCH (the "Lender"). Unless otherwise
defined herein or the context otherwise requires, terms used herein have the
meanings provided in the Bridge Loan Agreement.

         The Borrower hereby requests that on ___________ __, 20__,

                  (1) $_____________ of the presently outstanding principal
         amount of the Advances originally made on _________ __, ____ [and
         $_____________ of the presently outstanding principal amount of the
         Advances originally made on _________ __, ____],

                  (2) and all presently being maintained as [ABR Advances]
         [Eurodollar Advances],

                  (3) be [converted into] [continued as],

                  (4) [Eurodollar Advances having an Interest Period of one
         month] [ABR Advances].

           The Borrower hereby:

<PAGE>   54

                    (a) certifies and warrants that no Event of Default [or
           Potential Event of Default] has occurred and is continuing; and

                    (b) agrees that if prior to the time of such continuation
           or conversion any matter certified to herein by it will not be true
           and correct at such time as if then made, it will immediately so
           notify the Lender.

Except to the extent, if any, that prior to the time of the continuation or
conversion requested hereby the Lender shall receive written notice to the
contrary from the Borrower, each matter certified to herein shall be deemed to
be certified at the date of such continuation or conversion as if then made.

         The Borrower has caused this Continuation/Conversion Notice to be
executed and delivered, and the certification and warranties contained herein
to be made, by its Authorized Officer this ____ day of _________________,
_____.

                                     TEAM FLEET FINANCING CORPORATION

                                     By
                                       ----------------------------------------
                                       Name:
                                       Title:<PAGE>   1
EXECUTION COPY

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

                                WARRANT AGREEMENT

                             (SUBSCRIPTION WARRANTS)

                                     BETWEEN

                                 FORCENERGY INC

                                       AND

                    AMERICAN STOCK TRANSFER & TRUST COMPANY,
                                AS WARRANT AGENT

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

                           DATED AS OF MARCH 20, 2000

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

                  Warrants to Purchase 1,800,000 Common Shares

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<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                              PAGE
<S>                                                                                                           <C>
AGREEMENT...................................................................................................   1

1. DEFINITIONS..............................................................................................   1

2. WARRANT CERTIFICATES.....................................................................................   5
   2.1      Issuance of Warrants............................................................................   5
   2.2      Form, Denomination and Date of Warrants.........................................................   5
   2.3      Execution and Delivery of Warrant Certificates..................................................   6
   2.4      Legend; Transfer and Exchange...................................................................   6

3. EXERCISE AND EXPIRATION OF WARRANTS......................................................................   7
   3.1      Right to Acquire Warrant Shares Upon Exercise...................................................   7
   3.2      Exercise and Expiration of Warrants.............................................................   8
            (a)      Exercise of Warrants...................................................................   8
            (b)      Expiration of Warrants.................................................................   8
            (c)      Method of Exercise.....................................................................   9
            (d)      Partial Exercise.......................................................................   9
            (e)      Issuance of Warrant Shares............................................................    10
            (f)      Time of Exercise......................................................................    10
   3.3      Payment of Taxes...............................................................................    10
   3.4      Surrender of Certificates......................................................................    11
   3.5      Shares Issuable................................................................................    11

4. DISSOLUTION, LIQUIDATION OR WINDING UP..................................................................    11

5. ADJUSTMENTS.............................................................................................    12
   5.1 Adjustments.........................................................................................    12
       (a) Stock Dividends, Subdivisions and Combinations..................................................    12
       (b) Reclassifications...............................................................................    12
       (c) Distribution of Warrants or Other Rights to Holders of Common Shares............................    13
             (d) Superseding Adjustment of Number of Warrant Shares into Which Each
                 Warrant is Exercisable....................................................................    13
             (e) Other Provisions Applicable to Adjustments under this Section.............................    14
             (f) Warrant Price Adjustment..................................................................    15
             (g) Merger, Consolidation or Combination......................................................    15
             (h) Compliance with Governmental Requirements.................................................    16
             (j) Warrants Deemed Exercisable...............................................................    16
</TABLE>
<PAGE>   3
<TABLE>
<S>                                                                                                           <C>
    5.2      Notice of Adjustment...........................................................................  16
    5.3      Statement on Warrant Certificates..............................................................  16
    5.4      Fractional Interest............................................................................  16

6.  LOSS OR MUTILATION......................................................................................  17

7.  RESERVATION AND AUTHORIZATION OF WARRANT SHARES.........................................................  17

8.  WARRANT TRANSFER BOOKS..................................................................................  18

9.  WARRANT HOLDERS.........................................................................................  19
    9.1      Voting or Dividend Rights......................................................................  19
    9.2      Rights of Action...............................................................................  19
    9.3      Treatment of Holders of Warrant Certificates...................................................  19
    9.4      Communications to Holders......................................................................  20

10. NOTICES.................................................................................................  20
    10.1     Notices Generally..............................................................................  20
    10.2     Required Notices to Holders....................................................................  21

11. APPLICABLE LAW..........................................................................................  22

12. PERSONS BENEFITTING.....................................................................................  22

13. COUNTERPARTS............................................................................................  22

14. AMENDMENTS..............................................................................................  23

15. INSPECTION..............................................................................................  23

16. SUCCESSOR TO THE COMPANY................................................................................  23

17. ENTIRE AGREEMENT........................................................................................  23

18. HEADINGS................................................................................................  24

19. CONCERNING THE WARRANT AGENT............................................................................  24
</TABLE>
<PAGE>   4
                                    EXHIBITS
<TABLE>
<S>                                                                        <C>
A. Form of Warrant Certificate..........................................    A-1
</TABLE>
<PAGE>   5
                                WARRANT AGREEMENT

                             (SUBSCRIPTION WARRANTS)

         This WARRANT AGREEMENT, dated as of March 20, 2000, is entered into
among FORCENERGY INC, a Delaware corporation (the "Company"), and American Stock
Transfer & Trust Company, Inc. ("Warrant Agent").

         WHEREAS, in connection with a plan of reorganization (the "Plan") as
confirmed on January 19, 2000 by the United States Bankruptcy Court for the
Eastern District of Louisiana (the "Court") pursuant to Chapter 11 of Title 11
of the United States Code, the Company has agreed to issue to the Purchasers an
aggregate of 1,800,000 Warrants to purchase an aggregate of 1,800,000 Common
Shares (as defined below) of the Company at the Warrant Price (as defined below)
on and after the Issue Date (as defined below), subject to the availability of
an exemption from registration or an effective registration statement as
described below, and on or prior to the Expiration Date (as defined below),
subject to earlier expiration as described below. Pursuant to the Plan, each
Purchaser is entitled to receive Warrants to purchase 45 Common Shares for each
share of Series A Preferred Stock purchased; and

         WHEREAS, the Company and the Warrant Agent desire to set forth in this
Agreement, among other things, the form and provisions of the certificates
representing the Warrants and the terms and conditions under which they may be
issued, transferred, exchanged, replaced and surrendered in connection with the
exercise of the Warrants;

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree as follows:

1.       DEFINITIONS

         "Additional Common Shares" shall mean all Common Shares issued or
issuable by the Company after the date of this Agreement, other than the Warrant
Shares.

         "Affiliate" shall mean, as to any Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control of such Person. For purposes of this definition, "control" when used
with respect to any Person means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

         "Agreement" shall mean this Warrant Agreement, as the same may be
amended, modified or supplemented from time to time.

         "Bankruptcy Code" shall mean Chapter 11 of Title 11 of the United
States Code, as amended.
<PAGE>   6
         "Business Day" shall mean a day which in New York, New York is neither
a legal holiday nor a day on which banking institutions are authorized by law or
regulation to close.

         "Capital Stock" of any Person shall mean any and all shares, interests,
participations or other equivalents (however designated) of such Person's
capital stock, and any warrants, options or similar rights to acquire such
capital stock.

         "Common Shares" shall mean (i) the common stock, par value $.01 per
share, of the reorganized Company, as constituted on the original issuance of
the Warrants, (ii) any Capital Stock into which such Common Shares may
thereafter be changed and (iii) except as provided in Section 5.1(b), any share
of Capital Stock of the Company of any other class issued to holders of Common
Shares upon any reclassification thereof.

         "Company" shall mean the company identified in the preamble hereof, as
reorganized in accordance with the Plan, and its successors and assigns.

         "Corporate Office" shall mean, (1) with respect to the Company, 2730
S.W. 3rd Avenue, Suite 800, Miami, Florida 33129-2356, or such other place as
the Company shall locate its executive offices, and (2) with respect to the
Warrant Agent, the executive offices of the Warrant Agent (or its successor) at
which at any particular time its principal business shall be administered, which
office is located as of the date hereof at 40 Wall Street, New York, NY 10005.

         "Court" shall mean the United States Bankruptcy Court for the Eastern
District of Louisiana as identified in the preamble hereof.

         "Current Market Price" shall mean, with respect to any security on any
date the average of the daily Market Price of such security for each Business
Day during the period commencing thirty (30) Business Days before such date and
ending on the date one Business Day prior to such date; provided, however, that
if (i) the Current Market Price per share of a security is determined during a
period following the Company's announcement of (A) a dividend or distribution on
such a security payable in shares of such a security or securities convertible
into shares of such a security, or (B) any subdivision, combination or
reclassification of such security and (ii) prior to the expiration of such
thirty (30) Business Day period before such date (or, if applicable, such lesser
number of Business Days before such date for which daily Market Prices are
available) the ex-dividend date for such dividend or distribution or the record
date for such subdivision, combination or reclassification occurs, then, in each
such case, the Current Market Price shall be properly adjusted to take into
account ex-dividend trading.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

         "Expiration Date" shall mean the earlier of, (i) the tenth anniversary
of the Issue Date, (ii) the Expiration Notice Date, or (iii) such earlier date
as determined in accordance with Section 4.

                                      -2-
<PAGE>   7
         "Expiration Notice" shall mean a notice of expiration of the Warrants
that may be given by the Company, in its sole discretion, on any date after the
fourth anniversary of the Issue Date if the Market Price has exceeded 300% of
the Warrant Price for a period of 30 consecutive Trading Days.

         "Expiration Notice Date" shall mean the date 30 days after the date of
an Expiration Notice sent to Holders.

         "Holder" or "Warrantholder" shall mean any Person in whose name at the
time any Warrant Certificate is registered upon the Warrant Register.

         "Issue Date" shall mean as of March 20, 2000.

         "Initial Warrant Exercise Date" means the date which is the business
day on which the Warrants are issued to the Holders pursuant to the Plan.

         "Market Price" at any date shall be deemed to be the last reported sale
price, or, in case no such reported sale takes place on such day, the average of
the last reported sale prices for the last three trading days, in either case as
officially reported by the principal securities exchange on which the securities
are listed or admitted to trading or by the NNM, or, if the securities are not
listed or admitted to trading on any national securities exchange or quoted by
NNM, the average closing bid price as furnished by the NASD through NNM or
similar organization if NNM is no longer reporting such information, or if the
securities are not quoted on NNM, as determined in good faith by resolution of
the Board of Directors of the Company.

         "NASD" shall mean National Association of Securities Dealers, Inc.

         "NNM" shall mean Nasdaq National Market.

         "Non-Surviving Combination" shall mean any merger, consolidation or
other business combination by the Company with one or more other entities in a
transaction in which the Company is not the surviving entity or becomes a
wholly-owned subsidiary of another entity.

         "Outstanding" shall mean, as of the time of determination, when used
with respect of any Warrants, all Warrants originally issued under this
Agreement except (i) Warrants that have been exercised pursuant to Section
3.2(a), (ii) Warrants that have expired pursuant to Sections 3.2(b), 4 or 6 and
(iii) Warrants that have otherwise been acquired by the Company; provided,
however, that in determining whether the Holders of the requisite amount of the
outstanding Warrants have given any request, demand, authorization, direction,
notice, consent or waiver under the provisions of this Agreement, Warrants owned
by the Company or any Subsidiary or Affiliate of the Company or any Person that
is at such time a party to a merger or acquisition agreement with the Company
shall be disregarded and deemed not to be outstanding.

                                       -3-
<PAGE>   8
         "Person" shall mean any individual, corporation (including a business
trust), partnership, joint venture, association, joint-stock company, trust,
estate, limited liability company, unincorporated association, unincorporated
organization, government or agency or political subdivision thereof or any other
entity.

         "Plan" shall mean the plan of reorganization as confirmed by the Court
pursuant to Chapter 11 of Title 11 of the United States Code.

         "Purchasers" shall mean the initial purchasers of the Series A
Preferred Stock.

         "Recipient" shall have the meaning given such term in Section 3.2(e).

         "Record Date" shall mean January 28, 2000, which is the Record Date
specified in the Plan.

         "Securities Act" shall mean the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder.

         "Series A Preferred Stock" shall mean the Company's 14% Series A
Cumulative Preferred Stock.

         "Subsidiary" shall mean, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of such Person or a combination
thereof.

         "Trading Day" means any day on which the Common Shares of the Company
are traded or quoted on a U.S. securities exchange or quotation system.

         "Warrant Certificates" shall mean those certain warrant certificates
evidencing the Warrants, substantially in the form of Exhibit A attached hereto.

         "Warrant Legend" shall mean the legend set forth in Section 2.4(a).

         "Warrant Price" shall mean the exercise price per Warrant Share,
initially set at $10.00, subject to adjustment as provided in Section 5.1(f).

         "Warrant Register" shall have the meaning given such term in Section 8.

         "Warrant Shares" shall mean the Common Shares issuable upon exercise of
the Warrants, the number and nature of which are subject to adjustment from time
to time in accordance with Section 5.

                                       -4-
<PAGE>   9
         "Warrants" shall mean the 1,800,000 Warrants to purchase an aggregate
of 1,800,000 Common Shares from the Company at the Warrant Price, subject to the
terms and conditions described herein and subject to adjustment pursuant to
Section 5, and each "Warrant" shall represent the right to purchase one Common
Share of the Company at the Warrant Price, subject to the terms and conditions
described herein and subject to adjustment pursuant to Section 5.

2.       WARRANT CERTIFICATES

         2.1 Issuance of Warrants. (a) Upon the execution of this Agreement, the
Company will execute and deliver to the Warrant Agent one or more Warrant
Certificates representing the number of Warrants issued pursuant to the Plan.
Upon written order of the Company signed by its Chairman or President, or a Vice
President and its Secretary, the Warrant Agent shall countersign, issue and
deliver the Warrants in accordance with the Plan for the consideration set forth
in the Plan. Each Warrant Certificate issued pursuant to this Section 2.1 shall
evidence the number of Warrants specified therein, and each Warrant evidenced
thereby shall represent the right, subject to the provisions contained herein
and in the Warrant Certificate, to purchase one Warrant Share, subject to
adjustment as provided in Section 5.

         (b) From time to time, up to the Expiration Date, the Warrant Agent
shall countersign and deliver Warrant Certificates in required whole number
denominations to the persons entitled thereto in connection with any
replacement, transfer, exchange, adjustment or other issuance permitted under
this Agreement; provided that no Warrant Certificates shall be issued except (i)
those initially issued hereunder; (ii) those issued on or after the Initial
Warrant Exercise Date, upon the exercise of fewer than all Warrants represented
by any Warrant Certificate, to evidence any unexercised Warrants held by the
exercising Holder; (iii) those issued upon any transfer or exchange pursuant to
Section 2.4 hereof; (iv) those issued in replacement of lost, stolen, destroyed
or mutilated Warrant Certificates pursuant to Section 6 hereof; and (v) at the
option of the Company, in such form may be approved by the Board of Directors,
to reflect any reasonable adjustment or change in the Warrant Price, the number
of shares of Common Stock purchasable upon exercise of the Warrants as provided
in Section 5 hereof.

         2.2      Form, Denomination and Date of Warrants.

                  (a) Warrant Certificates shall be substantially in the form of
Exhibit A hereto. The Warrant Certificates shall be numbered, lettered or
otherwise distinguished in such manner as the officers of the Company executing
the same may determine. Each Warrant Certificate shall be dated the date of its
execution. Any of the Warrant Certificates may be issued with appropriate
insertions, omissions, substitutions and variations, and may have imprinted or
otherwise reproduced thereon such legend or legends, as may be required to
comply with any law or with any rules or regulations pursuant thereto, or with
the rules of any securities market in which the Warrants or Common Shares are
admitted to trading, or to the extent not inconsistent with the provisions of
this

                                       -5-
<PAGE>   10
Agreement, to conform to general usage. All Warrants shall be otherwise
substantially identical except as to denomination and as provided herein.

                  (b) Each Warrant Certificate issued pursuant to this Agreement
will bear the Restricted Warrant Legend unless removed in accordance with
Section 2.4.

         2.3      Execution and Delivery of Warrant Certificates.

                  (a) Warrant Certificates evidencing the Warrants which may be
delivered under this Agreement are limited to Warrant Certificates evidencing
1,800,000 Warrants, except for Warrant Certificates delivered pursuant to
Sections 2.4, 3.2(d), 6 and 8 upon registration of transfer of, or in exchange
for, or in lieu of, one or more previously issued Warrant Certificates and as
may be necessary to reflect the adjustments required by Section 5.

                  (b) At any time and from time to time on or after the date of
this Agreement, Warrant Certificates evidencing the Warrants may be executed and
delivered by the Company for issuance upon transfer of Warrants pursuant to the
provisions of Section 2.4.

                  (c) The Warrant Certificates shall be executed in the
corporate name and on behalf of the Company by the Chairman (or any Co-Chairman)
of the Board, the Chief Executive Officer, the President or any one of the Vice
Presidents of the Company under corporate seal reproduced thereon and attested
to by the Secretary or one of the Assistant Secretaries of the Company, either
manually or by facsimile signature printed thereon. Warrant Certificates shall
be manually countersigned by the Warrant Agent and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company whose
signature shall have been placed upon any of the Warrant Certificates shall
cease to be such officer of the Company before the date of issuance thereof, or
before the countersignature by the Warrant Agent and issue and delivery thereof,
such Warrant Certificates may, nevertheless, be countersigned by the Warrant
Agent issued and delivered with the same force and effect as though such person
had not ceased to be such officer of the Company, and any Warrant Certificate
may be signed on behalf of the Company by such person as, at the actual date of
the execution of such Warrant Certificate, shall be a proper officer of the
Company, although at the date of the execution of this Agreement any such person
was not such an officer. After countersignature by the Warrant Agent, Warrant
Certificates shall be delivered by the Warrant Agent to the Holder without
further action by the Company, except as otherwise provided in this Agreement.

         2.4      Legend; Transfer and Exchange.

                  (a) Each Warrant Certificate and each certificate representing
Warrant Shares shall bear the following legend (the "Warrant Legend"):

                  THE WARRANT REPRESENTED BY THIS CERTIFICATE AND
                  THE OTHER SECURITIES ISSUABLE UPON EXERCISE

                                       -6-
<PAGE>   11
                  THEREOF ARE EXEMPT FROM THE REGISTRATION AND QUALIFICATION
                  REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS PURSUANT TO
                  SECTION 1145 OF THE BANKRUPTCY CODE AS SECURITIES ISSUED BY A
                  DEBTOR PURSUANT TO A PLAN OF REORGANIZATION APPROVED BY THE
                  BANKRUPTCY COURT.

                  THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE OTHER
                  SECURITIES ISSUABLE UPON EXERCISE THEREOF ARE SUBJECT TO THE
                  CONDITIONS SPECIFIED IN THE WARRANT AGREEMENT (SUBSCRIPTION
                  WARRANTS), DATED AS OF MARCH 20, 2000, AMONG THE COMPANY AND
                  THE WARRANT AGENT. A COPY OF THE WARRANT AGREEMENT IS ON FILE
                  AT THE OFFICES OF FORCENERGY INC. THE HOLDER OF THIS
                  CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE
                  BOUND BY THE PROVISIONS OF THE WARRANT AGREEMENT.

                  (b) If a Holder of a Warrant wishes at any time to transfer
such Warrant to a Person who wishes to take delivery thereof, such Holder may,
subject to the restrictions on transfer set forth herein, cause the exchange of
such Warrant for one or more Warrants exercisable for the same aggregate number
of Warrant Shares. Upon receipt by the Warrant Agent at its Corporate Office of
(1) such Warrant, duly endorsed as provided herein, and (2) instructions from
such Holder directing the Company to execute and deliver one or more Warrants
exercisable for the same aggregate number of Warrant Shares as the Warrant to be
exchanged, such instructions to contain the name or names of the designated
transferee or transferees, the authorized denomination or denominations of the
Warrants to be so issued and appropriate delivery instructions, then the Company
shall cancel or cause to be canceled such Warrant and, concurrently therewith,
the Company shall execute, and the Warrant Agent shall countersign, issue and
deliver one or more Warrants to the effect set forth therein, in accordance with
the instructions referred to above.

                  (c) No service charge shall be made to a Holder for any
registration of transfer or exchange; provided, however, that the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Warrant Certificates.

3.       EXERCISE AND EXPIRATION OF WARRANTS

         3.1 Right to Acquire Warrant Shares Upon Exercise. Each Warrant
Certificate shall entitle the Holder thereof, subject to the provisions thereof
and of this Agreement, to acquire from the Company, for each Warrant evidenced
thereby, one Warrant Share at the Warrant Price, subject to adjustment as
provided in Section 5.1. The Warrants are exercisable at any time on and after
the earlier of the date (i) the Company has obtained a no-action letter from the
staff of the U.S.

                                       -7-
<PAGE>   12
Securities and Exchange Commission confirming the issuance of the Common Stock
upon the exercise of the Warrants and subsequent resales will be exempt from
registration under the Securities Act pursuant to Section 1145 of the Bankruptcy
Code, (ii) the Company has determined, on advice of counsel, that an applicable
exemption from registration exists or that registration of the issuance and
resales of such Common Stock is unnecessary and (iii) the effectiveness of a
registration statement filed by the Company covering the offer and sale of the
Common Stock pursuant to the Warrants (subject to the effectiveness and
availability of the registration statement), until on or prior to the Expiration
Date.

         In the event the Company (x) does not obtain such no-action letter, or
the staff of the U.S. Securities and Exchange Commission does not confirm that
such issuance and resales of Common Stock will be exempt from registration under
the Securities Act pursuant to Section 1145 of the Bankruptcy Code, or (y) does
not make any such determination with respect to an exemption from or requirement
for registration, the Company will file a shelf registration statement to
register the continuous offer and sale of the Common Stock, which registration
statement will be effective within one year from the Issue Date; provided, the
Company may suspend the use of such registration statement at such time or times
as there may be material non-public information that requires the Company to
amend such registration statement or make filings with the Securities and
Exchange Commission that are incorporated by reference in the registration
statement to make the statements contained in the registration statement, in the
light of the circumstances under which the registration statement and the
prospectus contained therein are used, not misleading; provided further, that
the Company shall use its reasonable best efforts to file any amendment or
filings with the Securities and Exchange Commission as promptly as practicable
to terminate the suspension of the use of the registration statement if and when
such registration statement is suspended.

         3.2      Exercise and Expiration of Warrants.

                  (a) Exercise of Warrants. Subject to the terms and conditions
set forth herein, including, without limitation, the exercise procedure
described in Section 3.2(c), a Holder of a Warrant Certificate may exercise all
or any whole number of the Warrants evidenced thereby, on any Business Day on
and after the earlier of the date (i) the Company has obtained a no-action
letter from the staff of the U.S. Securities and Exchange Commission confirming
the issuance of the Common Stock upon the exercise of the Warrants and
subsequent resales will be exempt from registration under the Securities Act
pursuant to Section 1145 of the Bankruptcy Code, (ii) the Company has
determined, on advice of counsel, that an applicable exemption from registration
exists or that registration of the issuance and resales of such Common Stock is
unnecessary and (iii) the effectiveness of a registration statement filed by the
Company covering the offer and sale of the Common Stock pursuant to the
Warrants, until 5:00 p.m., New York, New York time, on the Expiration Date
(subject to earlier expiration pursuant to Section 4) for the Warrant Shares
purchasable thereunder.

                  (b) Expiration of Warrants. The Warrants shall terminate and
become void as of 5:00 p.m., New York, New York time, on the Expiration Date,
subject to earlier expiration in

                                       -8-
<PAGE>   13
accordance with Section 4. In the event that the Warrants are to expire by
reason of Section 4, the term "Expiration Date" shall mean such earlier date for
all purposes of this Agreement.

                  (c) Method of Exercise. The Holder may exercise all or any
whole number of the Warrants by either of the following methods:

                           (i) The Holder may deliver to the Warrant Agent at
                  its Corporate Office (A) a written notice of such Holder's
                  election to exercise Warrants, duly executed by such Holder in
                  the form set forth on the reverse of, or attached to, such
                  Warrant Certificate, which notice shall specify the number of
                  Warrant Shares to be purchased, (B) the Warrant Certificate
                  evidencing such Warrants and (C) a sum equal to the aggregate
                  Warrant Price for the Warrant Shares into which such Warrants
                  are being exercised, which sum shall be paid in any
                  combination elected by such Holder of (x) a certified or
                  official bank check payable to the order of the Company and
                  delivered to the Warrant Agent at its Corporate Office (which
                  the Warrant Agent shall transfer to the Company on the next
                  Business Day after receipt), or (y) wire transfers in
                  immediately available funds to the account of the Company at
                  such banking institution as the Company shall have given
                  notice to the Warrant Agent and the Holders in accordance with
                  Section 10.1(b); or

                           (ii) The Holder may also exercise all or any of the
                  Warrants in a "cashless" or "net-issue" exercise by delivering
                  to the Company at the Corporate Office (A) a written notice of
                  such Holder's election to exercise Warrants, duly executed by
                  such Holder in the form set forth on the reverse of, or
                  attached to, such Warrant Certificate, which notice shall
                  specify the number of Warrant Shares to be delivered to such
                  Holder and the number of Warrant Shares with respect to which
                  such Warrants are being surrendered in payment of the
                  aggregate Warrant Price for the Warrant Shares to be delivered
                  to the Holder, and (B) the Warrant Certificate evidencing such
                  Warrants. For purposes of this subparagraph (ii), each Warrant
                  Share as to which such Warrants are surrendered in payment of
                  the aggregate Warrant Price will be attributed a value equal
                  to (x) the Market Price per share of Common Shares minus (y)
                  the then-current Warrant Price. Solely for the purpose of this
                  paragraph, the Market Price shall be calculated as the average
                  of the Market Prices for each of the ten trading days
                  preceding the date the notice of exercise is delivered to the
                  Warrant Agent.

                  (d) Partial Exercise. If fewer than all the Warrants
represented by a Warrant Certificate are exercised or surrendered pursuant to
the provisions of Section 3.2(c)(ii), such Warrant Certificate shall be
surrendered and a new Warrant Certificate in the same form and for the number of
Warrants which were not exercised or surrendered shall be executed by the
Company. The Company, subject to the provisions of Section 8, as may be directed
in writing by the Holder, shall issue and deliver the new Warrant Certificate to
the Person or Persons in whose name such new Warrant Certificate is so
registered or as may be directed in writing by the exercising Holder.

                                       -9-
<PAGE>   14
                  (e) Issuance of Warrant Shares. Upon surrender of a Warrant
Certificate evidencing Warrants in conformity with the foregoing provisions and
payment of the Warrant Price in respect of the exercise of one or more Warrants
evidenced thereby, when such payment is received, the Company shall within five
Business Days after the Warrant Agent receives such notice of exercise and
payment, execute or cause to be executed and deliver or cause to be delivered to
the Recipient (as defined below) a certificate or certificates representing the
aggregate number of Warrant Shares issuable upon such exercise (based upon the
aggregate number of Warrants so exercised), determined in accordance with
Section 3.5, together with an amount in cash in lieu of any fractional share(s)
determined in accordance with Section 5.4. The certificate or certificates so
delivered shall be, to the extent possible, in such denomination or
denominations as such Holder shall request in such notice of exercise and shall
be registered or otherwise placed in the name of, and delivered to, the Holder
or, subject to Section 2.4 and Section 3.3, such other Person as shall be
designated by the Holder in such notice (the Holder or such other Person being
referred to herein as the "Recipient").

                  (f) Time of Exercise. A Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date on which all
requirements set forth in Section 3.2(c) applicable to such exercise have been
satisfied. Subject to Section 5.1(e)(iv), certificate(s) evidencing the Warrant
Shares issued upon the exercise of such Warrant shall be deemed to have been
issued and, for all purposes of this Agreement, the Recipient shall, as between
such Person and the Company, be deemed to be and entitled to all rights of the
holder of record of such Warrant Shares as of such time.

         3.3      Payment of Taxes.

         The Company shall pay any and all documentary stamp taxes, if any,
attributable to the initial issuance of Warrants or the delivery of Warrant
Shares issuable upon exercise of the Warrants. The Company shall not be
required, however, to pay any tax or other charge imposed in respect of (i) any
transfer (including any transfer effected pursuant to the provisions of Section
3.2(d) or (e)) or exchange of any Warrant Certificates or any certificates for
Warrant Shares or (ii) payment of cash to any Person other than the Holder of
the Warrant Certificate surrendered upon the exercise of a Warrant, and in case
of such transfer, exchange or payment, the Company shall not be required to
issue or deliver any certificate or pay any cash until (a) such tax or charge
has been paid or an amount sufficient for the payment thereof has been delivered
to the Company or (b) it has been established to the Company's satisfaction that
any such tax or other charge that is or may become due has been paid.

                                      -10-
<PAGE>   15
         3.4      Surrender of Certificates.

         Any Warrant Certificate surrendered for exercise shall be promptly
canceled by the Company and shall not be reissued by the Company.

         3.5      Shares Issuable.

         The number of Warrant Shares "issuable upon exercise" of Warrants at
any time shall be the number of Warrant Shares into which such Warrants are then
exercisable. The number of Warrant Shares "into which each Warrant is
exercisable" initially shall be one share, subject to adjustment as provided in
Section 5.1.

4.       DISSOLUTION, LIQUIDATION OR WINDING UP

         If, on or prior to the Expiration Date, the Company (or any other
Person controlling the Company) shall effect or otherwise be subject to a
voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, each Holder shall receive the securities, money or other
property which such Holder would have been entitled to receive had such Holder
been the holder of record of the Warrant Shares into which the Warrants were
exercisable immediately prior to such dissolution, liquidation or winding up
(net of the then applicable Warrant Price), and the rights to exercise such
Warrants shall terminate.

         If, on or prior to the Expiration Date, the Company (or any other
Person controlling the Company) shall propose a voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, the
Company shall give written notice thereof to the Warrant Agent and all Holders
of Warrant Certificates in the manner provided in Section 10 prior to the date
on which such transaction is expected to become effective or, if earlier, the
record date for such transaction. Such notice shall also specify the proposed
date (if then determinable) as of which the holders of record of the Common
Shares shall be entitled to exchange their shares for moneys, securities or
other property deliverable upon such dissolution, liquidation or winding up, as
the case may be, the proposed date (if then determinable) on which each Holder
of Warrant Certificates shall be entitled to receive the moneys, securities or
other property which such Holder would have been entitled to receive had such
Holder been the holder of record of the Warrant Shares into which the Warrants
were exercisable immediately prior to such dissolution, liquidation or winding
up (net of the then applicable Warrant Price) and the date on which the rights
to exercise the Warrants shall terminate.

         In case of any such voluntary or involuntary dissolution, liquidation
or winding up of the Company, the Company shall retain any moneys, securities or
other property which the Holders are entitled to receive under this Agreement.
After any Holder has surrendered a Warrant Certificate to the Company, the
Company shall make payment in the appropriate amount to such Person or Persons
as it may be directed in writing by the Holder surrendering such Warrant
Certificate. The Company shall not be required to pay interest on any money
deposited pursuant to the provisions of this Section 4.

                                      -11-
<PAGE>   16
5.       ADJUSTMENTS

         5.1      Adjustments.

         The number of Warrant Shares into which each Warrant is exercisable and
the Warrant Price shall be subject to adjustment from time to time after the
date hereof in accordance (and only in accordance) with the provisions of this
Section 5:

                  (a) Stock Dividends, Subdivisions and Combinations. In case at
any time or from time to time after the date hereof and before the Expiration
Date the Company shall:

                         (i) pay to all holders of outstanding Common Shares a
         dividend payable in, or make any other distribution on any class of its
         capital stock in, Common Shares (other than a dividend or distribution
         upon a merger or consolidation or sale to which Section 5.1(g)
         applies);

                        (ii) subdivide its outstanding Common Shares into a
         larger number of Common Shares (other than a subdivision upon a merger
         or consolidation or sale to which Section 5.1(g) applies); or

                       (iii) combine its outstanding Common Shares into a
         smaller number of Common Shares (other than a combination upon a merger
         or consolidation or sale to which Section 5.1(g) applies);

then, (x) in the case of any such dividend or distribution, effective
immediately after the opening of business on the day after the date for the
determination of the holders of Common Shares entitled to receive such dividend
or distribution or (y) in the case of any subdivision or combination, effective
immediately after the opening of business on the day after the date upon which
such subdivision or combination becomes effective, the number of Warrant Shares
into which each Warrant is exercisable shall be adjusted to that number of
Warrant Shares determined by (A) in the case of any such dividend or
distribution, multiplying the number of Warrant Shares into which each Warrant
is exercisable at the opening of business on the day after the date for
determination by a fraction (not to be less than one), (1) the numerator of
which shall be equal to the sum of the number of Common Shares outstanding at
the close of business on such date for determination and the total number of
shares constituting such dividend or distribution and (2) the denominator of
which shall be equal to the number of Common Shares outstanding at the close of
business on such date for determination, or (B) in the case of any such
combination, by proportionately reducing, or, in the case of any such
subdivision, by proportionately increasing, the number of Warrant Shares into
which each Warrant is exercisable at the opening of business on the day after
the date upon which such subdivision or combination becomes effective.

                  (b) Reclassifications. A reclassification of the Common Shares
(other than any such reclassification in connection with a merger or
consolidation or sale to which Section 5.1(g)

                                      -12-
<PAGE>   17
applies and other than a change in par value, or from par value to no par value,
or from no par value to par value) into Common Shares and shares of any other
class of stock shall be deemed a distribution by the Company to the holders of
its Common Shares of such shares of such other class of stock for the purposes
and within the meaning of Section 5.1(b) (and the effective time of such
reclassification shall be deemed to be "the time for the determination of the
holders of Common Shares entitled to receive such distribution" for the purposes
and within the meaning of Section 5.1(b)) and, if the outstanding number of
Common Shares shall be changed into a larger or smaller number of Common Shares
as a part of such reclassification, such change shall be deemed a subdivision or
combination, as the case may be, of the outstanding Common Shares for the
purposes and within the meaning of Section 5.1(a) (and the effective time of
such reclassification shall be deemed to be "the time as of which such
subdivision or combination becomes effective" for the purposes and within the
meaning of Section 5.1(a)).

                  (c) Distribution of Warrants or Other Rights to Holders of
Common Shares. In case at any time or from time to time after the date hereof
and before the Expiration Date the Company shall make a distribution to all
holders of outstanding Common Shares of any warrants, options or other rights to
subscribe for or purchase any Additional Common Shares or securities convertible
into or exchangeable for Additional Common Shares (other than a distribution of
such warrants, options or rights upon a merger or consolidation or sale to which
Section 5.1(g) applies), whether or not the rights to subscribe or purchase
thereunder are immediately exercisable, and the gross consideration per share
(computed as the gross amount of cash or the fair market value (as determined in
good faith by the Company's Board of Directors) of other assets received by the
Company before deduction of any underwriting or similar commissions,
compensation, discounts or concessions paid or allowed by the Company in
connection with such issue or sale and before deduction of any other expenses
payable in connection therewith) for which Additional Common Shares may
thereafter be issuable pursuant to such warrants or other rights shall be less
than the Current Market Price per Common Share on the date fixed for
determination of the holders of Common Shares entitled to receive such
distribution, then, and for each such case, effective immediately after the
opening of business on the day after the date for determination, the number of
Warrant Shares into which each Warrant is exercisable shall be adjusted to that
number determined by multiplying the number of Warrant Shares into which each
Warrant is exercisable immediately prior to such time for determination by a
fraction (not less than one), (i) the numerator of which shall be the number of
Common Shares outstanding immediately prior to such time for determination plus
the maximum number of Additional Common Shares issuable pursuant to all such
warrants or other rights issued in the distribution which triggered the
adjustment and (ii) the denominator of which shall be the number of Common
Shares outstanding immediately prior to such time for determination plus the
number of Common Shares that the minimum consideration received and receivable
by the Company for the issuance of such maximum number of Additional Common
Shares pursuant to the terms of such warrants or other rights would purchase at
such Current Market Price.

                  (d) Superseding Adjustment of Number of Warrant Shares into
Which Each Warrant is Exercisable. In case at any time after any adjustment of
the number of Warrant Shares

                                      -13-
<PAGE>   18
into which each Warrant is exercisable shall have been made pursuant to Section
5.1(c) on the basis of the distribution of warrants or other rights or after any
new adjustment of the number of Warrant Shares into which each Warrant is
exercisable shall have been made pursuant to this Section 5.1(d), such warrants
or rights shall expire, and all or a portion of such warrants or rights shall
not have been exercised, then, and in each such case, upon the election of the
Company such previous adjustment in respect of such warrants or rights which
have expired without exercise shall be rescinded and annulled as to any then
outstanding Warrants, and the Additional Common Shares that were deemed for
purposes of the computations set forth in Section 5.1(c) to have been issued or
sold by virtue of such adjustment in respect of such warrants or rights shall no
longer be deemed to have been distributed.

                  (e) Other Provisions Applicable to Adjustments under this
Section. The following provisions shall be applicable to the making of
adjustments of the number of Warrant Shares into which each Warrant is
exercisable and to the Warrant Price under this Section 5.1:

                         (i) Treasury Stock. The sale or other disposition of
         any issued Common Shares owned or held by or for the account of the
         Company shall be deemed an issuance or sale of Additional Common Shares
         for purposes of this Section 5 if the gross consideration to be
         received by the Company per Common Share (before reduction for any
         underwriting discounts or commission or brokerage commissions) is less
         than the Current Market Price. The Company shall not pay any dividend
         on or make any distribution on Common Shares held in the treasury of
         the Company. For the purposes of this Section 5.1, the number of Common
         Shares at any time outstanding shall not include shares held in the
         treasury of the Company but shall include shares issuable in respect of
         scrip certificates issued in lieu of fractions of Common Shares.

                        (ii) When Adjustments Are to be Made. The adjustments
         required by Sections 5.1(a), 5.1(b), 5.1(c) and 5.1(d) shall be made
         whenever and as often as any specified event requiring an adjustment
         shall occur, except that no adjustment of the Warrant Shares into which
         each Warrant is exercisable that would otherwise be required shall be
         made unless and until such adjustment either by itself or with other
         adjustments not previously made increases or decreases the Warrant
         Shares into which each Warrant is exercisable immediately prior to the
         making of such adjustment by at least 1%. Any adjustment representing a
         change of less than such minimum amount (except as aforesaid) shall be
         carried forward and made as soon as such adjustment, together with
         other adjustments required by Sections 5.1(a), 5.1(b), 5.1(c) and
         5.1(d) and not previously made, would result in such minimum
         adjustment.

                       (iii) Fractional Interests. In computing adjustments
         under this Section 5, fractional interests in Common Shares shall be
         taken into account to the nearest one-thousandth of a share.

                                      -14-
<PAGE>   19
                        (iv) Deferral of Issuance upon Exercise. In any case in
         which this Section 5 shall require that an adjustment to the Warrant
         Shares into which each Warrant is exercisable be made effective
         pursuant to Section 5.1(a) or 5.1(c) prior to the occurrence of a
         specified event and any Warrant is exercised after the time at which
         the adjustment became effective but prior to the occurrence of such
         specified event, the Company may elect to defer until the occurrence of
         such specified event the issuing to the Holder of the Warrant
         Certificate evidencing such Warrant (or other Person entitled thereto)
         of, and may delay registering such Holder or other Person as the
         recordholder of, the Warrant Shares over and above the Warrant Shares
         issuable upon such exercise determined in accordance with Section 3.5
         on the basis of the Warrant Shares into which each Warrant is
         exercisable prior to such adjustment determined in accordance with
         Section 3.5; provided, however, that the Company shall deliver to such
         Holder or other person a due bill or other appropriate instrument
         evidencing the right of such Holder or other Person to receive, and to
         become the record holder of, such Additional Common Shares, upon the
         occurrence of the event requiring such adjustment.

                  (f) Warrant Price Adjustment. Whenever the number of Warrant
Shares into which a Warrant is exercisable is adjusted as provided in this
Section 5.1, the Warrant Price payable upon exercise of the Warrant shall
simultaneously be adjusted by multiplying such Warrant Price immediately prior
to such adjustment by a fraction, the numerator of which shall be the number of
Warrant Shares into which such Warrant was exercisable immediately prior to such
adjustment, and the denominator of which shall be the number of Warrant Shares
into which such Warrant was exercisable immediately thereafter.

                  (g) Merger, Consolidation or Combination. In the event the
Company merges, consolidates or otherwise combines with or into any Person after
the date hereof and before the Expiration Date, then, as a condition of such
merger, consolidation or combination, lawful and adequate (in the good faith
judgment of the Board of Directors of the Company) provisions shall be made
whereby Holders shall, in addition to their other rights hereunder, thereafter
have the right to purchase and receive upon the basis and upon the terms and
conditions specified in this Agreement upon exercise of the Warrants and in lieu
of the Warrant Shares immediately theretofore purchasable and receivable upon
the exercise of the rights represented hereby, such shares of stock, securities
or assets as may be issued or payable with respect to or in exchange for a
number of outstanding Common Shares equal to the number of Warrant Shares
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, and in any such case appropriate provision shall be
made (including the execution by the Person formed by consolidation, merger or
combination of a supplemental Warrant Agreement) with respect to the rights and
interests of the Holders to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the number of Warrant Shares)
shall thereafter be applicable, as nearly as may be practicable (in the good
faith judgment of the Board of Directors of the Company), in relation to any
shares of stock, securities or assets thereafter deliverable upon the exercise
hereof. This Section 5.1(g) shall similarly apply to successive consolidations,
mergers or combinations.

                                      -15-
<PAGE>   20
                  (h) Compliance with Governmental Requirements. Before taking
any action that would cause an adjustment reducing the Warrant Price below the
then par value of any of the Warrant Shares into which the Warrants are
exercisable, the Company will take any corporate action that may be necessary in
order that the Company may validly and legally issue fully paid and
nonassessable Warrant Shares at such adjusted Warrant Price.

                  (i) Optional Tax Adjustment. The Company may at its option, at
any time during the term of the Warrants, increase the number of Warrant Shares
into which each Warrant is exercisable, or decrease the Warrant Price, in
addition to those changes required by Section 5.1(a), 5.1(b), 5.1(c), 5.1(d) or
5.1(f), as deemed advisable by the Board of Directors of the Company, in order
that any event treated for Federal income tax purposes as a dividend of stock or
stock rights shall not be taxable to the Recipients.

                  (j) Warrants Deemed Exercisable. For purposes solely of this
Section 5, the number of Warrant Shares which the holder of any Warrant would
have been entitled to receive had such Warrant been exercised in full at any
time or into which any Warrant was exercisable at any time shall be determined
assuming such Warrant was exercisable in full at such time, although such
Warrant may not be exercisable in full at such time pursuant to Section 3.2(a).

         5.2      Notice of Adjustment.

         Whenever the number of Warrant Shares into which a Warrant is
exercisable is to be adjusted, or the Warrant Price is to be adjusted, in either
case as herein provided, the Company shall compute the adjustment in accordance
with Section 5.1, and shall, promptly after such adjustment becomes effective,
cause a notice of such adjustment or adjustments to be given to all Holders in
accordance with Section 10.1(b).

         5.3      Statement on Warrant Certificates.

         Irrespective of any adjustment in the number or kind of shares into
which the Warrants are exercisable, Warrant Certificates theretofore or
thereafter issued may continue to express the same price and number and kind of
shares initially issuable pursuant to this Agreement.

         5.4      Fractional Interest.

         The Company shall not issue fractional Warrant Shares on the exercise
of Warrants. If Warrant Certificates evidencing more than one Warrant shall be
presented for exercise at the same time by the same Holder, the number of full
Warrant Shares which shall be issuable upon such exercise thereof shall be
computed on the basis of the aggregate number of Warrants so to be exercised. If
any fraction of a Warrant Share would, except for the provisions of this Section
5.4, be issuable on the exercise of any Warrant (or specified portion thereof),
the Company shall, in lieu of issuing any fractional Warrant Shares, pay an
amount in cash calculated by it to be equal to the then Current Market Price per
Common Share on the date of such exercise multiplied by such

                                      -16-
<PAGE>   21
fraction computed to the nearest whole cent. The Holders, by their acceptance of
the Warrant Certificates, expressly waive their right to receive any fraction of
a Warrant Share or a stock certificate representing a fraction of a Warrant
Share.

6.       LOSS OR MUTILATION

         Upon (i) receipt by the Warrant Agent of evidence reasonably
satisfactory to the Warrant Agent of the ownership of and the loss, theft,
destruction or mutilation of any Warrant Certificate and such reasonable and
customary security or indemnity as may be required by the Warrant Agent and the
Company to hold the Company and the Warrant Agent harmless and (ii) surrender,
in the case of mutilation, of the mutilated Warrant Certificate to the Warrant
Agent and cancellation thereof, then, in the absence of notice to the Warrant
Agent that the Warrants evidenced thereby have been acquired by a bona fide
purchaser, the Company shall execute, and the Warrant Agent shall countersign,
issue and deliver to the registered Holder of the lost, stolen, destroyed or
mutilated Warrant Certificate, in exchange therefor or in lieu thereof, a new
Warrant Certificate of the same tenor and for a like aggregate number of
Warrants. At the written request of such registered Holder, the new Warrant
Certificate so issued shall be retained by the Company as having been
surrendered for exercise, in lieu of delivery thereof to such Holder, and shall
be deemed for purposes of Section 3.2 to have been surrendered for exercise on
the date the conditions specified in clauses (i) and (ii) of the immediately
preceding sentence were first satisfied.

         Upon the issuance of any new Warrant Certificate under this Section 6,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto.

         All Warrant Certificates surrendered for exercise or for exchange in
case of mutilated Warrant Certificates shall be promptly canceled by the Warrant
Agent and thereafter retained by the Warrant Agent until termination of this
Agreement or its resignation as Warrant Agent, or disposed of or destroyed, at
the direction of the Company.

         The provisions of this Section 6 are exclusive and shall preclude (to
the extent lawful) all other rights or remedies with respect to the replacement
of mutilated, lost, stolen, or destroyed Warrant Certificates.

7.       RESERVATION AND AUTHORIZATION OF WARRANT SHARES

         The Company shall at all times reserve and keep available, free from
preemptive rights, solely for issue upon the exercise of Warrants as herein
provided, such number of its authorized but unissued Warrant Shares deliverable
upon the exercise of Warrants as will be sufficient to permit the exercise in
full of all outstanding Warrants. The Company covenants that all Warrant Shares
will, at all times that Warrants are exercisable, be duly approved for listing
subject to official notice of issuance on each securities exchange, if any, or
the NNM, if applicable, on which the Common Shares are then listed or traded.
The Company covenants that (i) all Warrant Shares that may be

                                      -17-
<PAGE>   22
issued upon due exercise of Warrants shall upon issuance be duly and validly
authorized, issued and fully paid and nonassessable and free of preemptive or
similar rights and (ii) the stock certificates issued to evidence any such
Warrant Shares will comply with Section 158 of the Delaware General Corporation
Law (or its successor) and any other applicable law.

         The Company hereby authorizes and directs its current and future
transfer agents for the Common Shares at all times to reserve stock certificates
for such number of authorized shares as shall be requisite for such purpose. The
Company will supply such transfer agents with duly executed stock certificates
for such purposes.

8.       WARRANT TRANSFER BOOKS

         Warrant Certificates may be surrendered for registration of transfer or
exchange of Warrants evidenced thereby at the Corporate Office of the Warrant
Agent. Warrant Certificates may be surrendered for exercise at the Corporate
Office of the Warrant Agent. The Warrant Agent and the Company and the Company
will give prompt written notice to all Holders of Warrant Certificates of any
change in the location of their respective Corporate Offices.

         The Warrant Agent shall cause to be kept at its Corporate Office a
warrant register (the "Warrant Register") in which, subject to such reasonable
regulations as it may prescribe and such regulations as may be prescribed by
applicable law, the Company shall provide for the registration of Warrant
Certificates and of transfers or exchanges of Warrant Certificates as herein
provided.

         Subject to the provisions of Sections 2.4, 3.2 and 3.3, upon surrender
for registration of transfer of any Warrant Certificate at the Corporate Office
of the Warrant Agent, the Company shall execute, and the Warrant Agent shall
countersign, issue and deliver, in the name of the designated transferee or
transferees, one or more new Warrant Certificates evidencing a like aggregate
number of Warrants.

         Subject to Section 2.4, (i) at the option of the Holder, Warrant
Certificates may be exchanged at the Corporate Office of the Warrant Agent upon
payment of the charges herein provided for other Warrant Certificates evidencing
a like aggregate number of Warrants and (ii) whenever any Warrant Certificates
are so surrendered for exchange, the Company shall execute, and the Warrant
Agent shall countersign, issue and deliver the Warrant Certificates of the same
tenor and evidencing the same number of Warrants as evidenced by the Warrant
Certificates surrendered by the Holder making the exchange.

         All Warrant Certificates issued upon any registration of transfer or
exchange of Warrant Certificates shall be the valid obligations of the Company,
evidencing the same obligations, and entitled to the same benefits under this
Agreement, as the Warrant Certificates surrendered for such registration of
transfer or exchange.

                                      -18-
<PAGE>   23
         Subject to Section 2.4, every Warrant Certificate surrendered for
registration of transfer or exchange shall (if so required by the Warrant Agent
or the Company) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Warrant Agent or the Company, duly executed
by the Holder thereof or his attorney duly authorized in writing with signature
guarantees by an acceptable participant in a recognized Medallion program.

9.       WARRANT HOLDERS

         9.1      Voting or Dividend Rights.

         Prior to the exercise of the Warrants, except as may be specifically
provided for herein, (i) no Holder of a Warrant Certificate, as such, shall be
entitled to any of the rights of a holder of Common Shares, including, without
limitation, the right to vote at or to receive any notice of any meetings of
stockholders of the Company; (ii) the consent of any Holder shall not be
required with respect to any action or proceeding of the Company; (iii) except
as provided in Section 4, no Holder, by reason of the ownership or possession of
a Warrant or the Warrant Certificate representing the same, shall have any right
to receive any stock dividends, allotments or rights or other distributions
paid, allotted or distributed or distributable to the stockholders of the
Company prior to, or for which the relevant record date preceded, the date of
the exercise of such Warrant; and (iv) no Holder shall have any right not
expressly conferred by this Agreement or Warrant Certificate held by such
Holder.

         9.2      Rights of Action.

         All rights of action against the Company in respect of this Agreement
are vested in the Holders of the Warrant Certificates, and any Holder of any
Warrant Certificate, without the consent of the Holder of any other Warrant
Certificate, may, on such Holder's own behalf and for such Holder's own benefit,
enforce and may institute and maintain any suit, action or proceeding against
the Company suitable to enforce, or otherwise in respect of, such Holder's right
to exercise, exchange or tender for purchase such Holder's Warrants in the
manner provided in this Agreement.

         9.3      Treatment of Holders of Warrant Certificates.

         Every Holder of a Warrant Certificate, by accepting the same, consents
and agrees with the Company and with every subsequent holder of such Warrant
Certificate that, prior to due presentment of such Warrant Certificate for
registration of transfer, the Company and any agent of the Company may treat the
Person in whose name the Warrant Certificate is registered as the owner thereof
for all purposes and as the Person entitled to exercise the rights granted under
the Warrants represented by such Warrant Certificate, and neither the Company,
the Warrant Agent nor any other agent of the Company shall be affected by any
notice to the contrary.

                                      -19-
<PAGE>   24
         9.4      Communications to Holders.

                  (a) If any Holder of a Warrant Certificate applies in writing
to the Company and such application states that the applicant desires to
communicate with other Holders with respect to its rights under this Agreement
or under the Warrants, then the Company shall, within five (5) Business Days
after the receipt of such application, and upon payment to the Company by such
applicant of the reasonable expenses of preparing such list, provide to such
applicant a list of the names and addresses of all Holders of Warrant
Certificates as of the most recent practicable date.

                  (b) Every Holder of Warrant Certificates, by receiving and
holding the same, agrees with the Company that neither the Company nor any agent
of the Company shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders in accordance with
Section 9.4(a).

10.      NOTICES

         10.1     Notices Generally.

                  (a) Any request, notice, direction, authorization, consent,
waiver, demand or other communication required, permitted or authorized by this
Agreement to be made upon, given or furnished to or filed with the Company or
the Warrant Agent by the other party hereto or by any Holder shall be sufficient
for every purpose hereunder if in writing (including telecopy communication) and
telecopied or delivered by hand (including by courier service) as follows:

                  If to the Company, to it at:

                           Forcenergy Inc
                           2730 S.W. 3rd Avenue
                           Suite 800
                           Miami, Florida 33129-2356
                           Attention: Chief Financial Officer
                           Telecopy No.: (305) 856-8500

                  (or such other address as shall have been set forth in a
                  notice delivered in accordance with this Section 10.1(a)).

                                      -20-
<PAGE>   25
                  If to the Warrant Agent, to:

                           American Stock Transfer & Trust Company
                           40 Wall Street, 46th Fl.
                           New York, NY 10005
                           Attention:Executive Vice President
                           Telecopy No.: (718) 236-4588

         All such communications shall, when so telecopied or delivered by hand,
be effective when telecopied with confirmation of receipt or received by the
addressee, respectively.

         Any Person that telecopies any communication hereunder to any Person
shall, on the same date as such telecopy is transmitted, also send, by first
class mail, postage prepaid and addressed to such Person as specified above, an
original copy of the communication so transmitted.

                  (b) Where this Agreement provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder affected by such event, at the address of such Holder as it appears
in the Warrant Register, not later than the latest date (if any), and not
earlier than the earliest date (if any), prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Agreement provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice.

         In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made by a method reasonably approved in good
faith by the Company as one which would be most reliable under the circumstances
for successfully delivering the notice to the addressees shall constitute a
sufficient notification for every purpose hereunder.

         10.2     Required Notices to Holders.

         In case the Company shall propose (i) to pay any dividend payable in
stock of any class to the holders of its Common Shares, to pay a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings or other
extraordinary cash dividend, or to make any other distribution to the holders of
its Common Shares for which an adjustment is required to be made pursuant to
Section 5, (ii) to distribute to all holders of its outstanding Common Shares
rights to subscribe for or to purchase any Additional Common Shares or shares of
stock of any class or any other securities, rights or options, (iii) to effect
any reclassification of its Common Shares, (iv) to effect any transaction
described in Section 5.1(g) or (v) to effect the liquidation, dissolution or
winding up of the Company or a sale of all or substantially

                                      -21-
<PAGE>   26
all of its assets, then, and in each such case, the Company shall give to each
Holder of a Warrant Certificate, in accordance with Section 10.1(b), a notice of
such proposed action or event. Such notice shall specify (x) the date on which a
record is to be taken for the purposes of such dividend or distribution; and (y)
the date on which the Company expects such reclassification, transaction, event,
liquidation, dissolution or winding up to become effective and the date as of
which the Company expects that holders of Common Shares of record will be
entitled to exchange their Common Shares for securities, cash or other property
deliverable upon such reclassification, transaction, event, liquidation,
dissolution or winding up. Such notice shall be given, in the case of any action
covered by clause (i) or (ii) above, at least fifteen (15) days prior to the
record date for determining holders of the Common Shares for purposes of such
action or, in the case of any action covered by clauses (iii) through (v), at
least twenty (20) days prior to the applicable effective or expiration date
specified above or, in any such case, prior to such earlier time as notice
thereof shall be required to be given pursuant to Rule 10b-17 under the Exchange
Act, if applicable.

         If at any time the Company shall cancel any of the proposed
transactions for which notice has been given under this Section 10.2 prior to
the consummation thereof, the Company shall give each Holder prompt notice of
such cancellation in accordance with Section 10.1(b) hereof.

11.      APPLICABLE LAW

         THIS AGREEMENT, EACH WARRANT CERTIFICATE ISSUED HEREUNDER, EACH WARRANT
EVIDENCED THEREBY AND ALL RIGHTS ARISING HEREUNDER SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THE APPLICATION OF THE
LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

12.      PERSONS BENEFITTING

         This Agreement shall be binding upon and inure to the benefit of the
Company, the Warrant Agent, and their respective successors and assigns and the
Holders from time to time. Nothing in this Agreement is intended or shall be
construed to confer upon any Person, other than the Company, the Warrant Agent
and the Holders, any right, remedy or claim under or by reason of this Agreement
or any part hereof. Each Holder, by acceptance of a Warrant Certificate, agrees
to all of the terms and provisions of this Agreement applicable thereto.

13.      COUNTERPARTS

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

                                      -22-
<PAGE>   27
14.      AMENDMENTS

         This Agreement may be amended by the Company only with the consent of
the Holders of a majority of the then outstanding Warrants. Notwithstanding the
foregoing, the consent of each Holder of a Warrant affected shall be required
for any amendment pursuant to which the Warrant Price would be increased or the
number of Warrant Shares purchasable upon exercise of Warrants would be
decreased (other than pursuant to adjustments provided for herein).

         Upon execution and delivery of any amendment pursuant to this Section
14, such amendment shall be considered a part of this Agreement for all purposes
and every Holder of a Warrant Certificate theretofore or thereafter delivered
hereunder shall be bound thereby.

         Promptly after the execution by the Company of any such amendment, the
Company shall give notice to the Holders, setting forth in general terms the
substance of such amendment, in accordance with the provisions of Section
10.1(b). Any failure of the Company to mail such notice or any defect therein,
shall not, however, in any way impair or affect the validity of any such
amendment.

15.      INSPECTION

         The Company may require each Holder to submit his Warrant Certificate
for inspection by the Company.

16.      SUCCESSOR TO THE COMPANY

         So long as Warrants remain outstanding, the Company will not enter into
any Non-Surviving Combination unless the acquirer (or its parent company under
any triangular acquisition) shall expressly assume by a supplemental agreement,
executed and delivered to the Company, in form reasonably satisfactory to the
Company, the due and punctual performance of every covenant of this Agreement on
the part of the Company to be performed and observed and shall have provided for
exercise rights in accordance with Section 5.1(g). Upon the consummation of such
Non-Surviving Combination, the acquirer (or its parent company under any
triangular acquisition) shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Agreement with the
same effect as if such acquirer (or its parent company under any triangular
acquisition) had been named as the Company herein.

17.      ENTIRE AGREEMENT

         This Agreement sets forth the entire agreement of the parties hereto as
to the subject matter hereof and supersedes all previous agreements among all or
some of the parties hereto with respect thereto, whether written, oral or
otherwise.

                                      -23-
<PAGE>   28
18.      HEADINGS

         The descriptive headings of the several Sections of this Agreement are
inserted for convenience and shall not control or affect the meaning or
construction of any of the provisions hereof.

19.               CONCERNING THE WARRANT AGENT.

                  The Warrant Agent acts hereunder as agent and in a ministerial
capacity for the Company, and its duties shall be determined solely by the
provisions hereof. The Warrant Agent shall not, by issuing and delivering
Warrant Certificates or by any other act hereunder be deemed to make any
representations as to the validity, value or authorization of the Warrant
Certificates or the Warrants represented thereby or of any securities or other
property delivered upon exercise of any Warrant or whether any stock issued upon
exercise of any Warrant is fully paid and nonassesable.

                  The Warrant Agent shall not at any time be under any duty or
responsibility to any holder of Warrant Certificates to make or cause to be made
any adjustment of the Warrant Price provided in this Agreement, or to determine
whether any fact exists which may require any such adjustments, or with respect
to the nature or extent of any such adjustment, when made, or with respect to
the method employed in making the same. It shall not (i) be liable for any
recital or statement of facts contained herein or for any action taken, suffered
or omitted by it in reliance on any Warrant Certificate or other document or
instrument believed by it in good faith to be genuine and to have been signed or
presented by the property party or parties, (ii) be responsible for any failure
on the part of the Company to comply with any of its covenants and obligations
contained in this Agreement or in any Warrant Certificate, or (iii) be liable
for any act or omission in connection with this Agreement except for its own
negligence or wilful misconduct.

                  The Warrant Agent may at any time consult with counsel
satisfactory to it (who may be counsel for the Company) and shall incur no
liability or responsibility for any action taken, suffered or omitted by it in
good faith in accordance with the opinion or advice of such counsel.

                  Any notice, statement, instruction, request, direction, order
or demand of the Company shall be sufficiently evidenced by an instrument signed
by the Chairman of the Board, President, any Vice President, its Secretary, or
Assistant Secretary, (unless other evidence in respect thereof is herein
specifically prescribed). The Warrant Agent shall not be liable for any action
taken, suffered or omitted by it in accordance with such notice, statement,
instruction, request, direction, order or demand believed by it to be genuine.

                  The Company agrees to pay the Warrant Agent reasonable
compensation for its services hereunder and to reimburse it for its reasonable
expenses hereunder (in each case, as indicated in writing prior to or on the
date of this Agreement, or prior to the date of such subsequent services or the
incurrence of such expenses and agreed to by the Company); it further agrees to

                                      -24-
<PAGE>   29
indemnify the Warrant Agent and save it harmless against any and all losses,
expenses and liabilities, including judgments, costs and counsel fees, for
anything done or omitted by the Warrant Agent in execution of its duties and
powers hereunder except losses, expenses and liabilities arising as a result of
the Warrant Agent's negligence or wilful misconduct.

                  The Warrant Agent may resign its duties and be discharged from
all further duties and liabilities hereunder (except liabilities arising as a
result of the Warrant Agent's own negligence or wilful misconduct), after giving
30 days' prior written notice to the Company. At least 15 days prior to the date
such resignation is to become effective, the Warrant Agent shall cause a copy of
such notice of resignation to be mailed to the Holder of each Warrant
Certificate at the Company's expense. Upon such resignation, or any inability of
the Warrant Agent to act as such hereunder, the Company shall appoint a new
warrant agent in writing. If the Company shall fail to make such appointment
within a period of 15 days after it has been notified in writing of such
resignation by the resigning Warrant Agent, then the Holder of any Warrant
Certificate may apply to any court of competent jurisdiction for the appointment
of a new warrant agent. Any new warrant agent, whether appointed by the Company
or by such a court, shall be a bank or trust company having a capital and
surplus, as shown by its last published report to its stockholders, of not less
than $10,000,000 or a stock transfer company that is a registered transfer agent
under the Securities Exchange Act of 1934. After acceptance in writing of such
appointment by the new warrant agent is received by the Company, such new
warrant agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named herein as the Warrant Agent,
without any further assurance, conveyance, act or deed; but if for any reason it
shall be necessary or expedient to execute and deliver any further assurance,
conveyance, act or deed, the same shall be done at the expense of the Company
and shall be legally and validly executed and delivered by the resigning Warrant
Agent. Not later than the effective date of any such appointment the Company
shall file notice thereof with the resigning Warrant Agent and shall forthwith
cause a copy of such notice to be mailed to the Holder of each Warrant
Certificate.

                  Any corporation into which the Warrant Agent or any new
warrant agent may be converted or merged or any corporation resulting from any
consolidation to which the Warrant Agent or any new warrant agent shall be a
party or any corporation succeeding to the trust business of the Warrant Agent
shall be a successor warrant agent under this Agreement without any further act,
provided that such corporation is eligible for appointment as successor to the
Warrant Agent under the provisions of the preceding paragraph. Any such
successor warrant agent shall promptly cause notice of its succession as warrant
agent to be mailed to the Company and to the Registered Holder of each Warrant
Certificate.

                  The Warrant Agent, its subsidiaries and affiliates, and any of
its or their officers or directors, may buy and hold or sell Warrants or other
securities of the Company and otherwise deal with the Company in the same manner
and to the same extent and with like effects as though it were not Warrant
Agent. Nothing herein shall preclude the Warrant Agent from acting in any other
capacity for the Company or for any other legal entity.

                                      -25-
<PAGE>   30
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

                                 FORCENERGY INC

                                 By: /s/ Stig Wennerstrom
                                     ------------------------
                                     Stig Wennerstrom
                                     President and Chief Executive Officer

                                      -26-
<PAGE>   31
                                 AMERICAN STOCK TRANSFER
                                 & TRUST COMPANY

                                 By:    /s/ Herbert J. Lemmer
                                        ---------------------
                                        Name: Herbert J. Lemmer
                                        Title: Vice President

                                      -27-
<PAGE>   32
                                    EXHIBIT A

                       FORM OF FACE OF WARRANT CERTIFICATE

         THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES
         ISSUABLE UPON EXERCISE THEREOF ARE EXEMPT FROM THE REGISTRATION AND
         QUALIFICATION REQUIREMENTS OF FEDERAL AND STATE SECURITIES LAWS
         PURSUANT TO SECTION 1145 OF THE BANKRUPTCY CODE AS SECURITIES ISSUED BY
         A DEBTOR PURSUANT TO A PLAN OF REORGANIZATION APPROVED BY THE
         BANKRUPTCY COURT.

                  THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE OTHER
                  SECURITIES ISSUABLE UPON EXERCISE THEREOF ARE SUBJECT TO THE
                  CONDITIONS SPECIFIED IN THE WARRANT AGREEMENT (SUBSCRIPTION
                  WARRANTS), DATED AS OF MARCH 20, 2000, AMONG THE COMPANY AND
                  THE WARRANT AGENT. A COPY OF THE WARRANT AGREEMENT IS ON FILE
                  AT THE OFFICES OF FORCENERGY INC. THE HOLDER OF THIS
                  CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE
                  BOUND BY THE PROVISIONS OF THE WARRANT AGREEMENT.

                                 FORCENERGY INC

                               WARRANT CERTIFICATE
                                   EVIDENCING
                       WARRANTS TO PURCHASE COMMON SHARES
                            EXERCISABLE ON OR BEFORE
                               5:00 P.M. NEW YORK,
                                 NEW YORK TIME,
                                       ON
                                 MARCH 20, 2010
  (OR ON AN EARLIER EXPIRATION NOTICE DATE AFTER DELIVERY BY THE COMPANY OF AN
                     EXPIRATION NOTICE AFTER MARCH 20, 2004)

CUSIP No. 345206 13 0

No.                                                                     Warrants

         THIS CERTIFIES THAT, for value received, _______________________
___________________________, or registered assigns, is the registered owner of
______________________ Warrants to Purchase Common Shares of Forcenergy Inc, a
Delaware

                                       A-1
<PAGE>   33
corporation (the "Company," which term includes any successor thereto under the
Warrant Agreement), and is entitled, subject to and upon compliance with the
provisions hereof and of the Warrant Agreement, at such Holder's option, at any
time when the Warrants evidenced hereby are exercisable, to purchase from the
Company one Warrant Share for each Warrant evidenced hereby, at the purchase
price of $10.00 per share (as adjusted from time to time, the "Warrant Price"),
payable in full at the time of purchase, the number and nature of Warrant Shares
into which and the Warrant Price at which each Warrant shall be exercisable,
each being subject to adjustment as provided in Section 5 of the Warrant
Agreement.

         The Holder of this Warrant Certificate may exercise all or any whole
number of the Warrants evidenced hereby, on any Business Day on and after the
earlier of the date (i) the Company has obtained a no-action letter from the
staff of the U.S. Securities and Exchange Commission confirming the issuance of
the Common Stock upon the exercise of the Warrants and subsequent resales will
be exempt from registration under the Securities Act pursuant to Section 1145 of
the Bankruptcy Code, (ii) the Company has determined, on advice of counsel, that
an applicable exemption from registration exists or that registration of the
issuance and resales of such Common Stock is unnecessary and (iii) the
effectiveness of a registration statement filed by the Company covering the
offer and sale of the Common Stock pursuant to the Warrants (subject to the
effectiveness and availability of the registration statement), until 5:00 p.m.,
New York, New York time, on the earlier of (x) March 20, 2010, (y) the date 30
days after the date of an "Expiration Notice", which means a notice of
expiration of the Warrants that may be given by the Company, in its sole
discretion, on any date after the fourth anniversary of the Issue Date if the
Market Price has exceeded 300% of the Warrant Price for a period of 30
consecutive Trading Days, and (z) any earlier expiration date pursuant to
Section 4 of the Warrant Agreement (the "Expiration Date") for the Warrant
Shares purchasable hereunder.

         Reference is hereby made to the further provisions of this Warrant
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

                                       A-2
<PAGE>   34
         IN WITNESS WHEREOF, the Company has caused this certificate to be duly
executed under its corporate seal.

                                     FORCENERGY INC

[SEAL]                               By:   _______________________
                                           Name:  Stig Wennerstrom
                                           Title: President

ATTEST:

Name:
Title:
Dated: _________ [ ], 2000

COUNTERSIGNED:

AMERICAN STOCK TRANSFER & TRUST COMPANY

By: _____________________
Name:
Title:

                                       A-3
<PAGE>   35
                    [FORM OF REVERSE OF WARRANT CERTIFICATE]

                                 FORCENERGY INC

                               WARRANT CERTIFICATE
                                   EVIDENCING
                       WARRANTS TO PURCHASE COMMON SHARES

1.       General.

         Each Warrant evidenced hereby is one of a duly authorized issue of
Warrants of the Company designated as its Warrants to Purchase Common Shares
("Warrants"), limited in aggregate number to 1,800,000 Warrants and 1,800,000
Common Shares (subject to adjustment pursuant to Section 5 of the Warrant
Agreement) issued under and in accordance with the Warrant Agreement
(Subscription Warrants), dated as of March 20, 2000 (the "Warrant Agreement"),
between the Company and the Warrant Agent, to which Warrant Agreement and all
amendments thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Warrant Agent, the Holders of this Warrant Certificate and the owners of the
Warrants evidenced hereby. A copy of the Warrant Agreement is available during
normal business hours at the Corporate Office of the Company for inspection by
the Holder hereof.

         In the event of the exercise of less than all of the Warrants evidenced
hereby, a new Warrant Certificate in the same form and for the number of
Warrants which are not exercised shall be issued by the Company in the name or
upon the written order of the Holder of this Warrant Certificate upon the
cancellation hereof.

         All Warrant Shares issuable by the Company upon the exercise of
Warrants shall, upon such issuance, be duly authorized, validly issued, fully
paid and nonassessable and free of preemptive or similar rights.

         The Company shall pay any and all documentary stamp taxes, if any,
attributable to the initial issuance of Warrants or the delivery of Warrant
Shares issuable upon exercise of the Warrants. The Company shall not be required
to pay any tax or other charge imposed in respect of (i) any transfer (including
any transfer effected pursuant to the provisions of Section 3.2(d) or (e)) or
exchange of any Warrant Certificate or any certificates for Warrant Shares or
(ii) payment of cash to any Person other than the Holder of the Warrant
Certificate surrendered upon the exercise of a Warrant, and in case of such
transfer, exchange or payment, the Company shall not be required to issue or
deliver any certificate or pay any cash until (a) such tax or charge has been
paid or an amount sufficient for the payment thereof has been delivered to the
Company or (b) it has been established to the Company's satisfaction that any
such tax or other charge that is or may become due has been paid.

                                      A-4
<PAGE>   36
         The Warrant Certificates are issuable only in registered form in
denominations of whole numbers of Warrants. Upon surrender at the Corporate
Office of the Warrant Agent and payment of the charges specified herein and in
the Warrant Agreement, this Warrant Certificate may be exchanged for Warrant
Certificates in other authorized denominations or the transfer hereof may be
registered in whole or in part in authorized denominations to one or more
designated transferees, subject to the restrictions on transfer set forth herein
and in the Warrant Agreement; provided, however, that such other Warrant
Certificates issued upon exchange or registration of transfer shall evidence the
same aggregate number of Warrants as this Warrant Certificate. The Warrant Agent
shall cause to be kept at its Corporate Office the Warrant Register in which,
subject to such reasonable regulations as the Warrant Agent may prescribe and
such regulations as may be prescribed by applicable law, the Company and the
Warrant Agent shall provide for the registration of Warrant Certificates and of
transfers or exchanges of Warrant Certificates as provided in the Warrant
Agreement.

2.       Expiration.

         Except as provided in Section 4 of the Warrant Agreement and Section 3
of this Warrant Certificate, all outstanding Warrants shall expire and all
rights of the Holders of Warrant Certificates evidencing such Warrants shall
terminate and cease to exist, as of 5:00 p.m., New York, New York time, on the
Expiration Date. "Expiration Date" shall mean the earlier of (i) March 20, 2010,
(ii) the date 30 days after the date of an "Expiration Notice", which means a
notice of expiration of the Warrants that may be given by the Company, in its
sole discretion, on any date after the fourth anniversary of the Issue Date if
the Market Price has exceeded 300% of the Warrant Price for a period of 30
consecutive Trading Days, and (iii) any earlier expiration date pursuant to
Section 4 of the Warrant Agreement and Section 3 of this Warrant Certificate.

3.       Liquidation of the Company.

         If, on or prior to the Expiration Date, the Company (or any other
Person controlling the Company) shall propose or otherwise be subject to a
voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, each Holder shall receive the securities, money or other
property which such Holder would have been entitled to receive had such Holder
been the holder of record of the Warrant Shares into which the Warrants were
exercisable immediately prior to such dissolution, liquidation or winding up
(net of the then applicable Warrant Price), and the rights to exercise such
Warrants shall terminate.

4.       Anti-Dilution Adjustments.

         The number and nature of Warrant Shares issuable upon exercise of a
Warrant and the Warrant Price shall be adjusted on occurrence of certain events
as provided in the Warrant Agreement, including, without limitation, the
distribution of rights to purchase Common Shares (or securities convertible into
or exchangeable for Common Shares) at a price below the Current Market Price.
Pursuant to the Warrant Agreement, an adjustment may also be made in the event
of a

                                      A-5
<PAGE>   37
combination, subdivision or reclassification of the Common Shares. Adjustments
will be made whenever and as often as any specified event requires an adjustment
to occur in accordance with the Warrant Agreement.

         In such event, the Company will, at the request of the Holder, execute,
and the Warrant Agent shall countersign, issue and deliver a new Warrant
Certificate evidencing the adjustment in the Warrant Price and the number and/or
nature of securities or property issuable upon the exercise of the Warrants;
provided however, that the failure of the Company to execute, or the Warrant
Agent to countersign, issue and deliver such new Warrant Certificates shall not
in any way change, alter, or otherwise impair, the rights of the Holder as set
forth in the Warrant Agreement.

5.       Procedure for Exercising Warrant.

         Subject to the provisions hereof and of the Warrant Agreement, the
Holder of this Warrant Certificate may exercise all or any whole number of the
Warrants evidenced hereby by either of the following methods:

                  (A) The Holder may deliver to the Warrant Agent at its
         Corporate Office (i) a written notice of such Holder's election to
         exercise all or a portion of the Warrants evidenced hereby, duly
         executed by such Holder in the form set forth below, which notice shall
         specify the number of Warrant Shares to be purchased, (ii) this Warrant
         Certificate evidencing such Warrants and (iii) a sum equal to the
         aggregate Warrant Price for the Warrant Shares into which the Warrants
         represented by this Warrant Certificate are being exercised, which sum
         shall be paid in any combination elected by such Holder of (x) a
         certified or official bank check payable to the order of the Company
         and delivered to the Warrant Agent at its Corporate Office (which the
         Warrant Agent shall transfer to the Company on the next Business Day
         after receipt), or (y) wire transfers in immediately available funds to
         the account of the Company at such banking institution as the Company
         shall have given notice to the Warrant Agent and the Holders in
         accordance with the Warrant Agreement; or

                  (B) The Holder may also exercise all or any of the Warrants in
         a "cashless" or "net-issue" exercise by delivering to the Warrant Agent
         at its Corporate Office (i) a written notice of such Holder's election
         to exercise all or a portion of the Warrants evidenced hereby, duly
         executed by such Holder in the form set forth below, which notice shall
         specify the number of Warrant Shares to be delivered to such Holder and
         the number of Warrant Shares with respect to which Warrants represented
         by this Warrant Certificate are being surrendered in payment of the
         aggregate Warrant Price for the Warrant Shares to be delivered to the
         Holder, and (ii) this Warrant Certificate evidencing such Warrants. For
         purposes of this subparagraph (B), each Warrant Share as to which such
         Warrants are surrendered in payment of the aggregate Warrant Price will
         be attributed a value equal to (x) the Market Price per share of Common
         Shares minus (y) the then-current Warrant Price. Solely for the purpose
         of this paragraph, the Market Price shall be calculated as the average
         of the Market Prices

                                      A-6
<PAGE>   38
         for each of the ten trading days preceding the date the notice of
         exercise is delivered to the Company.

6.       Registered Holder.

         Prior to and including due presentment of this Warrant Certificate for
registration of transfer, the Company, the Warrant Agent and any other agent of
the Company may treat the Person in whose name this Warrant Certificate is
registered as the owner hereof for all purposes, and neither the Company, the
Warrant Agent nor any other agent of the Company shall be affected by notice to
the contrary.

7.       Amendment.

         The Warrant Agreement permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company or the Warrant Agent and the rights of the Holders of
Warrant Certificates under the Warrant Agreement at any time by the Company and
the Warrant Agent with the consent of the Holders of a majority of the then
outstanding Warrants.

8.       Status as Holder.

         Prior to the exercise of the Warrants, except as may be specifically
provided for in the Warrant Agreement, (i) no Holder of a Warrant Certificate,
as such, shall be entitled to any of the rights of a holder of Common Shares of
the Company, including, without limitation, the right to vote at, or to receive
any notice of, any meetings of stockholders of the Company; (ii) the consent of
any Holder shall not be required with respect to any action or proceeding of the
Company; (iii) except as provided in the Warrant Agreement with respect to the
dissolution, liquidation or winding up of the Company, no Holder, by reason of
the ownership or possession of a Warrant or the Warrant Certificate representing
the same, shall have any right to receive any stock dividends, allotments or
rights or other distributions (except as specifically provided in the Warrant
Agreement), paid, allotted or distributed or distributable to the stockholders
of the Company prior to or for which the relevant record date preceded the date
of the exercise of such Warrant; and (iv) no Holder shall have any right not
expressly conferred by the Warrant Agreement or Warrant Certificate held by such
Holder.

9.       Governing Law.

         THIS WARRANT CERTIFICATE, EACH WARRANT EVIDENCED HEREBY AND THE WARRANT
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS TO
THE EXTENT THAT APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

                                      A-7
<PAGE>   39
10.      Definitions.

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

                                FORM OF EXERCISE

         In accordance with and subject to the terms and conditions hereof and
of the Warrant Agreement, the undersigned registered Holder of this Warrant
Certificate hereby irrevocably elects to exercise ____________________ Warrants
evidenced by this Warrant Certificate and represents that such Holder has
tendered the Warrant Price for each of the Warrants evidenced hereby being
exercised in the aggregate amount of $_________ in the indicated combination of:

                         (i)   cash ($____________);

                        (ii) certified bank check in funds payable to the order
of the Company
         ($________);

                       (iii) official bank check in funds payable to the order
of the Company
         ($________);

                        (iv) or wire transfer in immediately available funds to
         the account designated by the Company for such purpose ($________); or

                         (v) "cashless" or "net-issue" exercise with respect to
         ________ Warrants pursuant to Section 3.2(c)(ii) of the Warrant
         Agreement and Section 5(B) of this Warrant Certificate.

         The undersigned requests that the Warrant Shares issuable upon exercise
be in fully registered form in such denominations and registered in such names
and delivered, together with any other property receivable upon exercise, in
such manner as is specified in the instructions set forth below.

         If the number of Warrants exercised is less than all of the Warrants
evidenced hereby, the undersigned requests that a new Warrant Certificate
representing the remaining Warrants evidenced hereby be issued and delivered to
the undersigned unless otherwise specified in the instructions below.

                                      A-8
<PAGE>   40
Dated:__________________________               Name:___________________________
                                                       (Please Print)
(Insert Social Security or Other
Identifying Number of Holder)                  Address:________________________

                                               ________________________________
                                               Signature

Medallion Signature Guarantee Required:

___________________________

         Instructions (i) as to denominations and names of Warrant Shares
issuable upon exercise and as to delivery of such securities and any other
property issuable upon exercise and (ii) if applicable, as to Warrant
Certificates evidencing unexercised Warrants:

                                      A-9
<PAGE>   41
                                   Assignment

         (Form of Assignment To Be Executed If Holder Desires To Transfer
Warrant Certificate)

         FOR VALUE RECEIVED _________________________ hereby sells, assigns and
transfers unto

                  Please insert social security
                  or other identifying number

(Please print name and address including zip code)

the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint _________________ Attorney, to transfer said
Warrant Certificate on the books of the within-named Company with full power of
substitution in the premises.

Dated:

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

Medallion Signature Guarantee Required:

                                      A-10

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"}]]