Document:

<PAGE>   1
                                                                     EXHIBIT 4.1

                            SERIES 2000-2 SUPPLEMENT

                           dated as of June 29, 2000
                                     to the

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

                                     among

                       TEAM FLEET FINANCING CORPORATION,
                                   the Issuer

                               BUDGET GROUP, INC.
                                  the Servicer

                              BUDGET GROUP, INC.,
                           the Budget Interestholder

                                      and

                             BANKERS TRUST COMPANY,
                                  the Trustee

<PAGE>   2

                               TABLE OF CONTENTS

                              PRELIMINARY STATEMENT

                              ARTICLE 1 DESIGNATION

                              ARTICLE 2 DEFINITIONS

<TABLE>
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<S>                                                                                                                  <C>
Section 2.1  Incorporation of Schedule 1, etc..................................................................         3
Section 2.2  Defined Terms.....................................................................................         3

                      ARTICLE 3 SECURITY; REPORTS; COVENANT
Section 3.1  Grant of Security Interest........................................................................         24
Section 3.2  Reports...........................................................................................         26

            ARTICLE 4 INITIAL ISSUANCE AND INCREASES AND DECREASES OF Series 2000-2
                      INVESTED AMOUNT OF Series 2000-2 NOTE
Section 4.1. Issuance in Definitive Form.......................................................................         27
Section 4.2  Procedure for Increasing the Invested Amount......................................................         27
Section 4.3  Decreases.........................................................................................         29

                       ARTICLE 5 Series 2000-2 ALLOCATIONS
Section 5.1  Establishment of the Group III Collection Account, Series 2000-2 Collection
        Account and Series 2000-2 Accrued Interest Account.....................................................         30
Section 5.2  Allocations with Respect to the Series 2000-2 Note................................................         31
Section 5.3  Withdrawals from the Series 2000-2 Accrued Interest Account.......................................         35
Section 5.4  Payment of Note Interest and Carrying Charges.....................................................         37
Section 5.5  Payment of Note Principal; Transfers to Budget Distribution Account...............................         37
Section 5.6  Servicer's or Budget's Failure to Make a Deposit or Payment.......................................         38
Section 5.7  Series 2000-2 Distribution Account................................................................         38
</TABLE>

                          ARTICLE 6 AMORTIZATION EVENTS

                                ARTICLE 7 GENERAL

<PAGE>   3

                               TABLE OF CONTENTS
                                   CONTINUED

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                                                                                                       ----

<S>                                                                                                    <C>
Exhibit A         - Form of Series 2000-2 Note
Exhibit B         - List of Approved Manufacturers
</TABLE>

                                      ii

<PAGE>   4

         Series 2000-2 Supplement, dated as of June 29, 2000 (as amended,
supplemented or otherwise modified from time to time in accordance with the
terms hereof and of the Base Indenture referred to below, this "Supplement"),
among Team Fleet Financing Corporation, a Delaware corporation ("TFFC" or the
"Issuer"), Budget Group, Inc. ("Budget"), a Delaware corporation formerly known
as Team Rental Group, Inc. ("Team"), as the Servicer (in such capacity, the
"Servicer"), Budget, as the holder of the Budget Interest (in such capacity, the
"Budget Interestholder") and Bankers Trust Company, a banking corporation
organized and existing under the laws of the State of New York, as Trustee (the
"Trustee") under the Amended and Restated Base Indenture, dated as of December
1, 1996, among TFFC, Team and the Trustee (as amended, supplemented or otherwise
modified from time to time, exclusive of Supplements creating a new Series of
Notes, the "Base Indenture").

                             PRELIMINARY STATEMENT

         WHEREAS, Sections 2.2 and 12.1 of the Base Indenture provide, among
other things, that TFFC, the Servicer and the Trustee may at any time and from
time to time enter into a supplement to the Base Indenture for the purpose of
authorizing the issuance of one or more Series of Notes.

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

         NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE 1

                                  DESIGNATION

         (a) There is hereby created a Series of Notes to be issued in one class
pursuant to the Base Indenture and this Supplement and such Series of Notes (as
defined below) shall be designated generally as the Variable Funding Rental Car
Asset Backed Note, Series 2000-2 and is referred to as the "Series 2000-2 Note."

         (b) The proceeds from the sale of and Increases in respect of the
Series 2000-2 Note shall be deposited in the Series 2000-2 Collection Account,
and such proceeds shall be available to TFFC and used (i) on and after the
Series 2000-2 Issuance Date, to finance the acquisition by the Issuer and the
Lessees of, or to refinance, Financed Vehicles and Eligible Receivables and (ii)
on and after the Series 2000-2 Issuance Date, to acquire Lessor-Owned Vehicles
manufactured by certain Eligible Manufacturers.

<PAGE>   5

         (c) The Series 2000-2 Note is a Segregated Series of Notes (as more
fully described in the Base Indenture) and is hereby designated as a "Group III
Series of Notes". Accordingly, the Series 2000-2 Note (and each other Group III
Series of Notes) shall be secured solely by the Group III Collateral and any
other collateral designated as security for the Series 2000-2 Note (and, as
applicable, any other Group III Series of Notes) under this Supplement or any
other Supplement and will not be secured by any other collateral. The Issuer
may from time to time issue additional Segregated Series of Notes that the
related Series Supplements will indicate are entitled to share, together with
the Series 2000-2 Note, the Group III Collateral and any other collateral
designated as security for the Group III Series of Notes under this Supplement
or any other related Series Supplement (the Series 2000-2 Note and any such
additional Segregated Series, each, a "Group III Series of Notes" and,
collectively, the "Group III Series of Notes"). Accordingly, all references in
this Supplement to "all" Series of Notes (and all references in this Supplement
to terms defined in the Base Indenture that contain references to "all" Series
of Notes) shall, unless the context otherwise requires, refer solely to all
Group III Series of Notes.

         (d) If, notwithstanding the provisions of clause (c) above, the Series
2000-2 Note is deemed by any court to be secured by collateral other than the
Group III Collateral and any other collateral designated as security for the
Series 2000-2 Note (and, as applicable, any other Series of Group III Notes)
under this Supplement or any other Supplement ("Non-Group III Collateral"),
then the interest of the Series 2000-2 Noteholders in such Non-Group III
Collateral shall be subordinate in all respects to the interest of the
Noteholders of the Series to which such Non-Group III Collateral was pledged by
the terms of the Indenture. The following shall govern the interpretation and
construction of the provisions of this Supplement: (i) this Supplement is
intended to constitute a subordination agreement under New York law and for
purposes of Section 510(a) of the Bankruptcy Code, (ii) the subordination
provided for in this Supplement is intended to and shall be deemed to
constitute a "complete subordination" under New York law, and, as such, shall
be applicable whether or not the Issuer or any Series 2000-2 Noteholder is a
debtor in a case (a "bankruptcy case") under the Bankruptcy Code (or any
amended or successor version thereof), (iii) (A) any reference to the Series
2000-2 Note shall include all obligations of the Issuer now or hereafter
existing under each such Series 2000-2 Note, whether for principal, interest,
fees, expenses or otherwise, and (B) without limiting the generality of the
foregoing, "interest" owing on the Series 2000-2 Note shall expressly include
any and all interest accruing after the commencement of any bankruptcy case or
other insolvency proceeding where the Issuer is the debtor, notwithstanding any
provision or rule of law (including, without limitation, 11 U.S.C. ss.ss. 502,
506(b) (1994) (or any amended or successor version thereof)) that might
restrict the rights of any holder of an interest in the Series 2000-2 Note, as
against the Issuer or any one else, to collect such interest, (iv) "payments"
prohibited under the subordination provisions of this Supplement shall include
any distributions of any type, whether cash, other debt instruments, or any
equity instruments, regardless of the source thereof, and (v) the holder

                                      -2-
<PAGE>   6

of any interest in the Series 2000-2 Note retains such holder's right, under 11
U.S.C. ss. 1126 (1994) (or any amended or successor version thereof), to vote
to accept or reject any plan of reorganization proposed for the Issuer in any
subsequent bankruptcy of the Issuer; provided, however, that, regardless of any
such vote or of the exercise of any other rights such holder (or its agents)
may have under the Bankruptcy Code, and without limiting the generality of the
other clauses of this clause (d), any distributions that such holder is to
receive on account of such holder's interest in the Series 2000-2 Note under
any such plan of reorganization, from the Issuer, from any collateral, from any
guarantor, or from any other source shall be subordinated in right of payment
as set forth herein and shall instead be distributed in the order of priority
set forth herein.

                                   ARTICLE 2

                                  DEFINITIONS

         Section 2.1 Incorporation of Schedule 1, etc. All capitalized terms not
otherwise defined herein shall have the meaning set forth therefor in Schedule 1
to the Base Indenture, as amended, supplemented or otherwise modified from time
to time in accordance with the terms of the Base Indenture. All Article, Section
or Subsection references herein shall refer to Articles, Sections or Subsections
of the Base Indenture, except as otherwise provided herein. Unless otherwise
stated herein, as the context otherwise requires or if such term is otherwise
defined in the Base Indenture, each capitalized term used or defined herein
shall relate only to the Series 2000-2 Note and not to any other Series of Notes
issued by TFFC.

         Section 2.2 Defined Terms. The following words and phrases, unless
otherwise defined in the Note Purchase Agreement then in effect, shall have the
following meanings with respect to the Series 2000-2 Note and the definitions of
such terms are applicable to the singular as well as the plural form of such
terms and to the masculine as well as the feminine and neuter genders of such
terms:

         "Accounts" means the Collection Account, the Group III Collection
Account, the Series 2000-2 Collection Account, the Series 2000-2 Distribution
Account and each collection account for each other Group III Series of Notes.

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

                                      -3-
<PAGE>   7

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

         "Additional Fees" means, with respect to any Series 2000-2 Interest
Period, the aggregate amount of fees, if any, under the Note Purchase Agreement
then in effect which have accrued during such Series 2000-2 Interest Period and
which are payable by TFFC in respect of the Series 2000-2 Note, in each case
solely to the extent such fees are not included in the calculation of the Series
2000-2 Note Rate for any Series 2000-2 Interest Period.

         "Advance" has the meaning specified in the Note Advance Agreement.

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

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

         "Aggregate Group III Non-Repurchase Asset Amount" means, for any date
of determination, the sum (without duplication), rounded to the nearest
$100,000, of (i) the lesser of (a) the Net Book Value of all Group III
Non-Repurchase Vehicles leased under the Group III Master Lease as of such date
and (b) the Non-Repurchase Fleet Market Value, plus (ii) all amounts receivable
as of such date with respect to any Group III Non-Repurchase Vehicles which
have been sold or deemed to be sold under the Related Documents other than any
such amounts which have become Losses plus (iii) with respect to any Group III
Non-Repurchase Vehicles that have been sold, any accrued and unpaid payments of
Base Rent and Additional Base Rent under the Group III Master Lease with
respect to such Group III Non-Repurchase Vehicles (net of amounts set forth in
clause (ii) above), other than any such amounts which have become Losses.

         "Aggregate Principal Balance" means, for any date of determination the
aggregate unpaid principal amount of the Outstanding Series 2000-2 Note as of
such date (without giving effect to any reduction thereof ordered by a court in
any insolvency or other similar proceeding, including, without limitation, by
reason of any cram-down, rejection or other action).

         "Aggregate Group III Repurchase Asset Amount" means, for any date of
determination, the sum (without duplication), rounded to the nearest $100,000,
of (i) the Net Book Value of all Group III Repurchase Vehicles leased under the
Group III Master Lease as of such date and not turned in to the Manufacturer
thereof pursuant to its Repurchase Program or not otherwise sold or deemed to be
sold under the Related Documents, plus (ii) all amounts receivable as of such
date from Manufacturers under Repurchase Programs with respect to Group III
Repurchase Vehicles turned in to such Manufacturers pursuant to any such
Repurchase Program or delivered

                                      -4-
<PAGE>   8

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

         "Asset Amount Deficiency" with respect to the Series 2000-2 Notes shall
mean a Series 2000-2 Asset Amount Deficiency and with respect to any other Group
III Series of Notes, shall have the meaning specified in the related Series
Supplement.

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

         "Auction Receivable" means a legal, valid and binding receivable due
from an Auction Dealer to TFFC or a Lessee in respect of Group III Vehicles sold
at an auction conducted by or through or arranged by the Manufacturer pursuant
to its Eligible Repurchase Program which is a guaranteed depreciation program.

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

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

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

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

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

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

                                      -5-
<PAGE>   9

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

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

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

         "Collateral" means the Group III Collateral, the Series 2000-2
Collateral.

         "Collections" means Group III Collections and all other Series 2000-2
Collections.

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

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

         "Daily Interest Amount" means, for any day in a Series 2000-2 Interest
Period, an amount equal to (a) the product of (i) the Series 2000-2 Note Rate
for such Series 2000-2 Interest Period and (ii) the aggregate unpaid principal
amount of the Series 2000-2 Note as of the close of business on such date,
divided by (b) 360.

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

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

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

         "Disposition Date" means, (a) with respect to any Group III Repurchase
Vehicle, (i) if such Group III Vehicle was sold at auction or returned to a
Manufacturer for repurchase, pursuant to the applicable Repurchase Program, the
date on which such Group III Vehicle was sold at auction or accepted for return
by such Manufacturer or its agent and, in each case, the Depreciation Charges
ceased to accrue pursuant to such Repurchase Program, or (ii) if such Group III
Vehicle was sold to any Person (other than to a Manufacturer pursuant to such
Manufacturer's Repurchase Program or to a third party through an auction
conducted by or

                                      -6-
<PAGE>   10

through or arranged by the Manufacturer pursuant to its Repurchase Program),
the date on which title to the Group III Repurchase Vehicle was transferred in
connection with such sale; and

(b) with respect to any Group III Non-Repurchase Vehicle, the date on which
title to the Group III Non-Repurchase Vehicle is transferred in connection with
its sale or other disposition.

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

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

         "Distribution Date" means, with respect to the Series 2000-2 Note, the
25th day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, commencing July 25, 2000.

         "Eligible Manufacturer" means an Eligible Repurchase Manufacturer or
an Eligible Non-Repurchase Manufacturer.

         "Eligible Non-Repurchase Manufacturer" means each Manufacturer listed
on Exhibit B to this Supplement and any other Manufacturer that has been
approved by the Requisite Noteholders or, with respect to any Group III Series
of Notes that is then being rated by one or more Rating Agencies, any other
Manufacturer that has been approved as an Eligible Non-Repurchase Manufacturer
by each such Rating Agency.

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

                                      -7-
<PAGE>   11

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

         "Eligible Repurchase Manufacturer" means each Manufacturer listed on
Exhibit B to this Supplement and any other Manufacturer that (a) has an
Eligible Repurchase Program, (b) has been approved by each Enhancement
Provider, if any, for the Group III Series of Notes and (c) with respect to
which Rating Agency Confirmation (for all Group III Series of Notes) the
addition of such Manufacturer as an Eligible Repurchase Manufacturer; provided,
however, that upon the occurrence of a Manufacturer Event of Default with
respect to such Manufacturer, such Manufacturer shall no longer qualify as an
Eligible Repurchase Manufacturer.

         "Eligible Repurchase Program" means, at any time, a Repurchase Program
(as defined in this Supplement) offered by an Eligible Repurchase Manufacturer
(a) pursuant to which the Repurchase Price (or the price guaranteed to be
received at an auction conducted by or within the requirements established by
such Manufacturer) is at least equal to the Capitalized Cost of each Group III
Vehicle, minus all Depreciation Charges accrued with respect to such Group III
Vehicle prior to the date that the Group III Vehicle is submitted for
repurchase or auction, minus Excess Mileage Charges, minus Excess Damage
Charges and minus any other charges specified in such Repurchase Program, (b)
that cannot be amended or terminated with respect to any Group III Vehicle
after the purchase of that Group III Vehicle, and (c) with respect to any Group
III Repurchase Vehicle of such Manufacturer that is leased or proposed to be
leased under the Group III Master Lease, the benefits of which Repurchase
Program have been collaterally assigned to the Trustee pursuant to an
Assignment Agreement acknowledged in writing by such Manufacturer and
applicable to the model year of such Group III Repurchase Vehicle, and TFFC
(and the Trustee on behalf of TFFC) has been provided with an opinion of
counsel or officer's certificate reasonably satisfactory to the Trustee that
the Trustee and TFFC can enforce the applicable Manufacturer's obligations
thereunder; provided, however, that with respect to a Repurchase Program for
any model year beginning with 2000 and thereafter, if any Group III Series of
Notes

                                      -8-
<PAGE>   12

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

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

         "Enhancement Percentage" means (for purposes of determining the Group
III Required Asset Amount) on any day, a percentage equal to the sum of (A)
9.5% times the Group III Repurchase Percentage on such day plus (B) the Series
2000-2 Minimum Non-Repurchase Credit Support Percentage times the Group III
Non-Repurchase Percentage on such day.

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

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

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

         "Financed Vehicle" means an Eligible Repurchase Vehicle or Eligible
Non-Repurchase Vehicle that is a Texas Vehicle or Hawaii Vehicle financed by
TFFC on or after the Lease Commencement Date under the Finance Lease.

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

                                      -9-
<PAGE>   13

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

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

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

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

         "Group III Letter of Credit Amount" means, as of any date of
determination, the aggregate amount available to be drawn on such date under
each letter of credit (or available to be withdrawn from the related cash
collateral account) issued by an Eligible Credit Enhancer for the benefit of
the Trustee and providing credit support for the obligations of the Lessees
under the Group III Lease and the obligations of Budget under the Demand Note
or another demand note made by Budget in favor of TFFC which, pursuant to the
terms of any Series Supplement for a Group III Series of Notes, may be drawn
upon to cover Disposition Losses.

         "Group III Master Lease" means the Master Motor Vehicle Lease
Agreement, Group III, dated as of June 29, 2000 among TFFC, as lessor, certain
subsidiaries and affiliates of Budget and certain non-affiliates of Budget, as
lessees, and Budget, as guarantor, as amended, supplemented or otherwise
modified from time to time.

         "Group III Non-Repurchase Percentage" means, on any date of
determination, the percentage equivalent of a fraction, the numerator of which
will be the aggregate Non-Repurchase Vehicle Value of all Group III
Non-Repurchase Vehicles as of such date and the denominator of which will be
the sum of the aggregate Net Book Value of all Group III Repurchase Vehicles
and the aggregate Non-Repurchase Vehicle Values of all Group III Non-Repurchase
Vehicles as of such date.

                                     -10-
<PAGE>   14

         "Group III Non-Repurchase Vehicle" means a passenger automobile, van or
light truck that is leased under the Group III Master Lease and is not subject
to an Eligible Repurchase Program at the time of its leasing under the Group III
Master Lease.

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

         "Group III Repurchase Percentage" means, on any date of determination,
the percentage equivalent of a fraction, the numerator of which will be the
aggregate Net Book Value of all Group III Repurchase Vehicles as of such date
and the denominator of which will be the sum of the aggregate Net Book Value of
all Group III Repurchase Vehicles and the aggregate Non-Repurchase Vehicle
Value of all Group III Non-Repurchase Vehicles as of such date.

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

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

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

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

         "Group III Vehicles" means the Vehicles leased under the Group III
Lease.

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

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

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

         "Initial Invested Amount" means the aggregate initial principal amount
of the Series 2000-2 Note, which is $25,000,000.

         "Interest Reset Date" means the first day of the applicable Series
2000-2 Interest Period.

                                     -11-
<PAGE>   15

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

         "Isuzu" means Isuzu Motors Limited.

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

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

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

         "Losses" means, on any date of determination, the sum of all Series
2000-2 Non-Repurchase Losses and Series 2000-2 Repurchase Losses.

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

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

         "Market Value Adjustment Percentage" means, with respect to Group III
Non-Repurchase Vehicles, as of any Determination Date following the Series
2000-2 Issuance Date, the excess of (a) 100% over (b) the lower of (i) the
lowest Measurement Month Average with respect to Group III Non-Repurchase
Vehicles, of any full Measurement Month within the preceding 12 calendar months
and (ii) a fraction expressed as a percentage, the numerator of which equals
the average of the aggregate Fair Market Value of Group III Non-Repurchase
Vehicles leased under the Group III Master Lease calculated as of the last day
of the Related Month and as of the last day of the two Related Months precedent
thereto and the denominator of which equals the average of the aggregate Net
Book Values of such Group III Non-Repurchase Vehicles calculated as of each
such date.

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

         "Maximum Isuzu/Subaru Percentage" means, with respect to Vehicles
manufactured by Isuzu and Subaru, ten percent (10%) of the Series 2000-2
Maximum Invested Amount.

         "Maximum Lease Commitment" means, on any date of determination, the
sum of (i) the maximum face amount of the Series 2000-2 Note, plus (ii) the
Series 2000-2 Available Subordinated Amount on such date, plus the aggregate
Net Book Values of all Group III

                                     -12-
<PAGE>   16

Vehicles leased under the Group III Master Lease as of such date which were
acquired, financed, or refinanced with funds other than proceeds of the Series
2000-2 Note or the Series 2000-2 Available Subordinated Amount, plus (iv) any
amounts held in the Budget Distribution Account that TFFC commits on or prior
to such date to invest in new Group III Vehicles (as evidenced by an Officers'
Certificate of TFFC) in accordance with the terms of the Group III Master Lease
and the Indenture.

         "Maximum Mazda/Nissan Percentage" means, with respect to Vehicles
manufactured by Mazda and Nissan, ten percent (10%) of the Series 2000-2 Maximum
Invested Amount.

         "Mazda" means Mazda Motor Corporation.

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

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

         "Minimum Non-Repurchase Credit Support Amount" means, with respect to
the Series 2000-2 Note on any day, the excess of (a) the quotient of (x) a
dollar amount equal to the product of (1) the Aggregate Principal Balance of the
Series 2000-2 Note as of such date, minus the aggregate amount of cash and
Permitted Investments in the Series 2000-2 Collection Account on such date and
(2) the Group III Non-Repurchase Percentage as of such date divided by (y) 100%
minus the Series 2000-2 Minimum Non-Repurchase Credit Support Percentage as of
such day over (b) the dollar amount specified in clause (x) above.

         "Minimum Repurchase Credit Support Amount" means, with respect to the
Series 2000-2 Note on any day, the excess of (a) the quotient of (x) a dollar
amount equal to the product of (1) the Aggregate Principal Balance of the Series
2000-2 Note as of such date, minus the aggregate amount of cash and Permitted
Investments in the Series 2000-2 Collection Account on such date and (2) the
Group III Repurchase Percentage as of such date divided by (y) 100% minus the
Series 2000-2 Minimum Repurchase Credit Support Percentage as of such day over
(b) the dollar amount specified in clause (x) above.

                                     -13-
<PAGE>   17

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

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

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

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

         "Net Book Value" means, with respect to any Group III Vehicle being
leased under the Group III Master Lease (a) as of any date of determination
during the period from the Vehicle Lease Commencement Date for such Group III
Vehicle to but excluding the Determination Date with respect to the Related
Month in which such Vehicle Lease Commencement Date occurs (such Determination
Date, the "Initial Determination Date" for such Group III Vehicle), the
Capitalized Cost of such Group III Vehicle, (b) as of the Initial Determination
Date for such Group III Vehicle, (i) the Capitalized Cost for such Group III
Vehicle minus (ii) the aggregate Depreciation Charges accrued with respect to
such Group III Vehicle through the last day of the Related Month in which the
Vehicle Lease Commencement Date for such Group III Vehicle occurred, or (c) as
of any Determination Date after the Initial Determination Date, (i) the Net Book
Value of such Group III Vehicle as calculated on the immediately preceding
Determination Date minus (ii) the aggregate Depreciation Charges accrued with
respect to such Group III Vehicle during the Related Month (through the last day
thereof), minus, (d) if such Group III Vehicle is a Group III Non-Repurchase
Vehicle which was leased under the Group III Master Lease on the last day of the
Related Month, an amount equal to (i) the amount of Additional Base Rent, if
any, paid (or, prior to the applicable Due Date, payable) on the Due Date
immediately following such Related Month divided by (ii) the number of Group III
Non-Repurchase Vehicles leased under the Group III Master Lease on the last day
of the Related Month. After the Initial Determination Date, on any day which is
not a Determination Date, the Net Book Value of a Group III Vehicle shall be the
Net Book Value calculated for such Group III Vehicle on the most recent
Determination Date.

         "Nissan" means Nissan Motor Co.

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

         "Non-Repurchase Maximum Term" has the meaning specified in Section 3.2
of the Group III Master Lease.

         "Non-Repurchase Vehicle Termination Payment" has the meaning specified
in Section 11.3 of the Group III Master Lease.

                                     -14-
<PAGE>   18

         "Note Interest Shortfall" with respect to the Series 2000-2 Note, has
the meaning specified in Section 5.4.

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

         "Permitted Investments" means negotiable instruments or securities
maturing on or before the related Distribution Date represented by instruments
in bearer or registered or in book entry form which evidence (i) obligations
the full and timely payment of which is to be made by or is fully guaranteed by
the United States of America; (ii) demand deposits, time deposits in, or
certificates of deposit issued by, any depositary institution or trust company
incorporated under the laws of the United States of America or any state
thereof and subject to supervision and examination by Federal or State banking
or depositary institution authorities; provided, however, that at the time of
the investment or contractual commitment to invest therein, the certificates of
deposit or short-term deposits, if any, or long-term unsecured debt obligations
(other than such obligation whose rating is based on collateral or on the
credit of a Person other than such institution or trust company) of such
depositary institution or trust company shall have a credit rating from
Standard & Poor's of A-1 and from Moody's of at least P-1, in the case of
certificates of deposit or short-term deposits, or a rating from Standard &
Poor's not lower than AA or from Moody's not lower than Aa3, in the case of
long-term unsecured debt obligations; (iii) commercial paper having, at the
time of the investment or contractual commitment to invest therein, a rating
from Standard & Poor's of at least A-1 and from Moody's of at least P-1; (iv)
demand deposits or time deposits which are fully insured by the Federal Deposit
Insurance Corporation; (v) bankers, acceptances issued by any depositary
institution or trust company described in clause (ii) above; (vi) investments
in money market funds rated AAm or AAmG by Standard & Poor's or otherwise
approved in writing by Standard & Poor's and a comparable rating from Moody's
or otherwise approved in writing by Moody's; (vii) Eurodollar time deposits
having a credit rating from Standard & Poor's of A-1 and from Moody's of at
least P-1; (viii) repurchase agreements involving any of the Permitted
Investments described in clauses (i) and (vii) above and the certificates of
deposit described in clause (ii) above which are entered into with a depository
institution or trust company, having a commercial paper or short-term
certificate of deposit rating of A-1 by Standard & Poor's and at least P-1 by
Moody's; and (ix) any other instruments or securities approved in writing by
the Requisite Noteholders or, if any Group III Series of Notes is then being
rated by one or more Rating Agencies, with respect to which the Rating Agencies
confirm in writing that such investment in such instruments or securities will
not adversely affect any ratings with respect to any Group III Series of Notes
or the Commercial Paper Notes (if any).

         "Permitted Liens" is defined in Section 29.3 of the Group III Master
Lease.

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

                                     -15-
<PAGE>   19

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

         "Profits" means, for any Related Month, the sum of (without double
counting) (a) the Series 2000-2 Percentage of the aggregate amount, if any, for
all Group III Non-Repurchase Vehicles leased under the Group III Master Lease
that are Lessor-Owned Vehicles and that are disposed of during the Related
Month, by which the Disposition Proceeds (excluding any Series 2000-2
Non-Repurchase Recoveries) related to each such Group III Non-Repurchase
Vehicle exceeds the sum of the Net Book Value for such Group III Non-Repurchase
Vehicle and any amounts due and payable under the Group III Master Lease in
respect of such Group III Vehicle, plus (b) amounts allocated under Section
5.2(c)(y)(iii) hereof.

         "Rating Agencies" means, each nationally-recognized rating agency then
currently requested to rate the Series 2000-2 Note or, as the context requires,
any Group III Series of Notes or class thereof.

         "Rating Agency Confirmation" means, with respect to the Series 2000-2
Note, written confirmation by (i) the Series 2000-2 Note Purchaser, the
Committed Note Purchaser and the Agent that it has consented to the proposed
action, amendment, waiver or modification and (ii) each Rating Agency then
rating the commercial paper notes issued by the Series 2000-2 Note Purchaser
that the proposed action, amendment, waiver or modification will not result in
the reduction or withdrawal of its rating of such commercial paper notes.

         "Recoveries" means, for any Related Month, the sum of Series 2000-2
Repurchase Recoveries and Series 2000-2 Non-Repurchase Recoveries.

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

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

         "Related Documents" means the collective reference to the documents
referred to in clause (i) of the definition of Related Documents in Schedule 1
to the Base Indenture, the Group III Master Lease and the Series 2000-2 Note
Purchase Agreement.

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

         "Repurchase Program Payment Due Date" means, with respect to any
payment due from a Manufacturer or auction dealer in respect of a Group III
Repurchase Vehicle disposed of

                                     -16-
<PAGE>   20

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

         "Required Asset Amount" means with respect to the Series 2000-2 Note,
at any date of determination, the sum of (i) the Invested Amounts for all Group
III Series of Notes that do not provide for Enhancement in the form of
overcollateralization plus (ii) with respect to all Group III Series of Notes
that provide for Enhancement in the form of overcollateralization, the sum of
(a) the Invested Amounts for all such Series of Notes, plus (b) the available
subordinated amounts required to be maintained as part of the minimum
enhancement amount for all such Series of Notes.

         "Requisite Noteholders" means Series 2000-2 Noteholders holding more
than 50% of the Series 2000-2 Invested Amount.

         "Series 2000-2 Accrued Interest Account" has the meaning specified in
Section 5.1(b) of this Supplement.

         "Series 2000-2 Aggregate Asset Amount" means, with respect to the
Series 2000-2 Note, for any date of determination, an amount, rounded to the
nearest $100,000, equal to the sum of (a) the Series 2000-2 Invested Percentage
of the sum of (i) the Aggregate Group III Non-Repurchase Asset Amount and (ii)
the Aggregate Group III Repurchase Asset Amount, plus (b) cash and Permitted
Investments on deposit in the Series 2000-2 Collection Account and on deposit
in the Collection Account and Group III Collection Account allocable to the
Series 2000-2 Note.

         "Series 2000-2 Asset Amount Deficiency" with respect to the Series
2000-2 Note will occur if, at any time, the Series 2000-2 Required Asset Amount
exceeds the Series 2000-2 Aggregate Asset Amount.

         "Series 2000-2 Available Subordinated Amount" means for any date of
determination, the excess of (a) the sum of (i) the Series 2000-2 Available
Subordinated Amount for the preceding Determination Date (or, in the case of
the initial Determination Date, as of the Series 2000-2 Issuance Date), (ii)
the Series 2000-2 Available Subordinated Amount Incremental Recoveries for the
Related Month and (iii) any other additional amounts contributed by TFFC or
Budget to the Series 2000-2 Collection Account or otherwise for allocation to
the Series 2000-2 Available Subordinated Amount since the preceding
Determination Date (or, in the case of the first Determination Date, since the
Series 2000-2 Issuance Date) pursuant to Section 5.2(d)(iv), over (b) the sum
of (i) the Series 2000-2 Available Subordinated Amount Incremental Losses for
the Related Month and (ii) any amounts withdrawn from the Series 2000-2
Collection Account and allocated to the Budget Distribution Account; provided,
however, that the Series 2000-2 Available Subordinated Amount for the period
from the Series 2000-2 Issuance Date to the first Determination Date shall be
$0.

                                     -17-
<PAGE>   21

         "Series 2000-2 Available Subordinated Amount Incremental Losses" means
for any Related Month, the sum of all Losses that became Losses during such
Related Month and which were allocated to the Series 2000-2 Available
Subordinated Amount pursuant to Section 5.2(c) hereof.

         "Series 2000-2 Available Subordinated Amount Incremental Recoveries"
means, for any Related Month, the sum of all Recoveries that became Recoveries
during such Related Month and which were allocated to the Series 2000-2
Available Subordinated Amount pursuant to Section 5.2(c) hereof.

         "Series 2000-2 Carrying Charges" means, as of any day, (i) the
aggregate of all Trustee fees, servicing fees (other than supplemental
servicing fees) and other fees and expenses and indemnity amounts, if any,
payable by TFFC or the Servicer under the Indenture, the Note Purchase
Agreement or the other Related Documents which have accrued with respect to the
Series 2000-2 Note during the Related Month or, in the case of such servicing
fees and in the case of any commitment fees or other fees and expenses that are
calculated in respect of the related Series 2000-2 Interest Period (however
denominated) and arise under the Series 2000-2 Note Purchase Agreement, that
have accrued during the related Series 2000-2 Interest Period, plus (ii)
without duplication, all amounts payable by the Lessees pursuant to Section 14
of the Group III Master Lease which have accrued during the Related Month.

         "Series 2000-2 Collateral" has the meaning specified in Section 3.1(b)
of this Supplement.

         "Series 2000-2 Collections" means the sum of (a) the Series 2000-2
Invested Percentage of all Group III Collections constituting Group III
Principal Collections and Recoveries and (b) all Series 2000-2 Interest
Collections.

         "Series 2000-2 Collection Account" is defined in Section 5.1(a) of
this Supplement.

         "Series 2000-2 Credit Support Amount" means, for any date of
determination, the Series 2000-2 Available Subordinated Amount on such date.

         "Series 2000-2 Credit Support Deficiency" means, with respect to any
date of determination, either (a) the amount, if any, by which the Series
2000-2 Minimum Credit Support Amount exceeds the Series 2000-2 Credit Support
Amount or (b) as the context requires, that the Series 2000-2 Minimum Credit
Support Amount exceeds the Series 2000-2 Credit Support Amount.

         "Series 2000-2 Distribution Account" has the meaning specified in
Section 5.7(a) of this Supplement.

         "Series 2000-2 Interest Allocation" has the meaning specified in
Section 5.2(a)(i) of this Supplement.

                                     -18-
<PAGE>   22

         "Series 2000-2 Interest Collections" means on any date of
determination, the Series 2000-2 Invested Percentage (as of such date) of the
Group III Interest Collections.

         "Series 2000-2 Interest Period" means a period from and including a
Distribution Date to but excluding the next succeeding Distribution Date;
provided, however, that the initial Series 2000-2 Interest Period shall be from
the Series 2000-2 Issuance Date to but excluding the initial Distribution Date
with respect to the Series 2000-2 Notes.

         "Series 2000-2 Invested Amount" means, when used with respect to any
date, an amount equal to (a) the Initial Invested Amount minus (b) the amount of
principal payments made to Series 2000-2 Noteholders and Decreases on or prior
to such date minus (c) all Losses allocated to the Series 2000-2 Invested Amount
on or prior to such date plus (d) all Recoveries allocated to the Series 2000-2
Invested Amount on or prior to such date plus (e) all Increases on or prior to
such date.

         "Series 2000-2 Invested Percentage" means, on any date of
determination:

                  (i) when used with respect to Principal Collections during the
         Series 2000-2 Revolving Period and when used with respect to Losses,
         Recoveries, cash on deposit in the Collection Account and other amounts
         at all times, the percentage equivalent of a fraction, the numerator of
         which shall be an amount equal to the sum of (x) the Series 2000-2
         Invested Amount and (y) the Series 2000-2 Available Subordinated
         Amount, in each case as of the end of the second preceding Related
         Month or, until the end of the second Related Month, as of the Series
         2000-2 Issuance Date, and the denominator of which shall be the greater
         of (A) the Aggregate Asset Amount as of the end of the second preceding
         Related Month or, until the end of the second Related Month, as of the
         Series 2000-2 Issuance Date, and (B) as of the same date as in clause
         (A), the sum of the numerators used to determine (i) invested
         percentages for allocations with respect to Principal Collections (for
         all Group III Series of Notes including all classes of such Series of
         Notes) and (ii) available subordinated amount percentages for
         allocations with respect to Principal Collections (for all Group III
         Series of Notes that provide for credit enhancement in the form of
         overcollateralization); and

                  (ii) when used with respect to Principal Collections, during
         the Series 2000-2 Rapid Amortization Period, the percentage equivalent
         of a fraction, the numerator of which shall be an amount equal to the
         sum of (x) the Series 2000-2 Invested Amount and (y) the Series 2000-2
         Available Subordinated Amount, in each case as of the end of the Series
         2000-2 Revolving Period, and the denominator of which shall be the
         greater of (A) the Aggregate Asset Amount as of the end of the second
         preceding Related Month and (B) as of the same date as in clause (A),
         the sum of the numerators used to determine (i) invested percentages
         for allocations with respect to Principal Collections (for all Group
         III Series of Notes including all classes of such Series of Notes) and
         (ii) available

                                     -19-
<PAGE>   23

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

                  (iii) when used with respect to Group III Interest
         Collections, the percentage equivalent of a fraction the numerator of
         which shall be the Accrued Amounts with respect to the Series 2000-2
         Notes on such date of determination and the denominator of which shall
         be the aggregate Accrued Amounts with respect to the Group III Series
         of Notes on such date of determination.

         "Series 2000-2 Investor Monthly Servicing Fee" means, on any
Distribution Date, one-twelfth of 1.0% of the Series 2000-2 Invested Amount as
of the preceding Distribution Date (or, in the case of the initial Distribution
Date, the Series 2000-2 Issuance Date).

         "Series 2000-2 Issuance Date" means June 29, 2000.

         "Series 2000-2 Limited Liquidation Event of Default" means, so long as
such event or condition continues, (a) any event or condition of the type
specified in Section 6(a) of this Supplement that continues for thirty (30)
days (without double counting the one (1) Business Day cure period provided for
in said Section 6(a)); provided, however, that such event or condition shall
not constitute a Series 2000-2 Limited Liquidation Event of Default if (i)
within such thirty (30) day period, TFFC or Budget shall have contributed a
portion of the Budget Interest to the Series 2000-2 Available Subordinated
Amount sufficient to cure the Series 2000-2 Credit Support Deficiency and (ii)
the Requisite Noteholders shall have consented to such cure in writing or (b)
all principal and interest of the Series 2000-2 Note is not paid in full on or
before the Series 2000-2 Termination Date.

         "Series 2000-2 Maximum Invested Amount" shall have the meaning set
forth in Section 4.1 hereof.

         "Series 2000-2 Minimum Credit Support Amount" means, as of any date,
the sum of (a) the Minimum Non-Repurchase Credit Support Amount on such date
plus (b) the Minimum Repurchase Credit Support Amount on such date.

         "Series 2000-2 Monthly Supplemental Servicing Fee" means, on any
Distribution Date, the product of (a) the Supplemental Servicing Fee accrued on
such date and (b) a fraction, the numerator of which shall be the Series 2000-2
Invested Amount on such Distribution Date and the denominator of which shall be
the sum (without duplication) of (i) the aggregate of the invested amounts for
all outstanding Series of Notes (including non-segregated Series) on such
Distribution Date plus (ii) the aggregate of all Budget Interest Amounts
(including available subordinated amounts, if any) for all outstanding Series of
Notes (including non-segregated Series).

                                     -20-
<PAGE>   24

         "Series 2000-2 Minimum Non-Repurchase Credit Support Percentage"
means, with respect to any date of determination, the sum of (a) 15% and (b)
the Market Value Adjustment Percentage for Group III Non-Repurchase Vehicles as
of the most recent Determination Date.

         "Series 2000-2 Minimum Repurchase Credit Support Percentage" means,
with respect to any date of determination, 9.5%.

         "Series 2000-2 Non-Repurchase Losses" means, with respect to any
Related Month, an amount equal to the sum of (without duplication) (a)
aggregate amount of payments in respect of Monthly Base Rent and Additional
Base Rent that have become due to the Lessor under the Group III Master Lease
in respect of Group III Non-Repurchase Vehicles that are not paid to TFFC or
the Trustee prior to the expiration of the respective grace periods, if any,
provided for in the Group III Master Lease for the making of such payments, but
only if such grace periods, if any, expire (or, with respect to any payment for
which there is no grace period, only if such payment is due) during such
Related Month, and (b) the excess, if any, of (i) for all Group III
Non-Repurchase Vehicles that are Lessor-Owned Vehicles and that are disposed of
during the Related Month, the aggregate amount, if any, by which the Net Book
Values of each such Group III Non-Repurchase Vehicle, calculated as of the
dates of the respective sale or final disposition thereof, exceeds the sum of
(x) the Disposition Proceeds related to such Group III Non-Repurchase Vehicle,
(y) all Non-Repurchase Vehicle Termination Payments that have accrued with
respect to such Group III Non-Repurchase Vehicle, and (z) the aggregate of all
other amounts due and unpaid under the Group III Master Lease as of the end of
the Related Month with respect to such Group III Non-Repurchase Vehicle, over
(ii) all Profits on all Group III Non-Repurchase Vehicles that are Lessor-Owned
Vehicles and that are disposed of during such Related Month.

         "Series 2000-2 Non-Repurchase Recoveries" means, with respect to any
Related Month, the sum of (without duplication) all amounts received during
such Related Month by TFFC or the Trustee (including deposits into the
Collection Account) from any source (other than Enhancement) in respect of
Series 2000-2 Non-Repurchase Losses, as determined by the Servicer consistent
with its methods of tracking and allocating to vehicles and Series, Disposition
Proceeds, Guaranteed Payments, Repurchase Prices, insurance proceeds and other
proceeds of such Group III Vehicles.

         "Series 2000-2 Noteholder" means a Person in whose name the Series
2000-2 Note is registered in the Note Register.

         "Series 2000-2 Note Interest" means, with respect to any Distribution
Date, the sum of the Daily Interest Amounts for each day in the related Series
2000-2 Interest Period, plus all previously accrued and unpaid Series 2000-2
Note Interest (together with interest on such unpaid amounts, to the extent
permitted by law, at the Series 2000-2 Note Rate), plus all accrued Series
2000-2 Carrying Charges due to the Series 2000-2 Noteholders in respect of such
Series 2000-2

                                     -21-
<PAGE>   25

Interest Period (or any prior Series 2000-2 Interest Period) and unpaid as of
such Distribution Date.

         "Series 2000-2 Note Purchase Agreement" means the Series 2000-2 Note
Purchase Agreement, dated as of June 29, 2000, among TFFC, as borrower, Budget,
as servicer, Twin Towers, Inc., as Series 2000-2 Note Purchaser, Deutsche Bank
AG, New York Branch, as Committed Note Purchaser and Deutsche Bank AG, New York
Branch, as Agent, as such agreement may be amended, supplemented, amended and
restated or otherwise modified from time in accordance with the terms thereof.

         "Series 2000-2 Note Rate" means, for any Series 2000-2 Interest
Period, the weighted average of the CP Rates for the portion of the Series
2000-2 Invested Amount comprised of the CP Tranche and the weighted average of
the Eurodollar Rates applicable to the portion of the Series 2000-2 Invested
Amount comprised of the Eurodollar Tranche and the weighted average of the Base
Rates applicable to the portion of the Series 2000-2 Invested Amount comprised
of the Base Rate Tranche; provided, however, that the Series 2000-2 Note Rate
will in no event be higher than the maximum rate permitted by applicable law.

         "Series 2000-2 Note" means the Variable Funding Rental Car Asset
Backed Note executed by TFFC and authenticated and delivered by or on behalf of
the Trustee, substantially in the form of Exhibit A. A definitive Series 2000-2
Note shall have such insertions and deletions as are necessary or appropriate
to give effect to the provisions of Section 2.18 of the Base Indenture.

         "Series 2000-2 Principal Allocation" shall mean, on any date, the
amount allocated to Series 2000-2 Collections pursuant to clause (a) of the
definition thereof.

         "Series 2000-2 Rapid Amortization Period" means the period beginning at
the close of business on the Business Day immediately preceding the day on which
an Amortization Event is deemed to have occurred with respect to the Series
2000-2 Note and ending upon the earlier to occur of (i) the date on which the
Series 2000-2 Note is fully paid and (ii) the termination of the Indenture.

         "Series 2000-2 Repurchase Losses" means, with respect to any Related
Month, the sum of (without duplication) (a) the aggregate amount of payments in
respect of Monthly Base Rent, Additional Base Rent, and Monthly Supplemental
Payments that have become due to the Lessor under the Group III Master Lease in
respect of Group III Repurchase Vehicles that are not paid to TFFC or the
Trustee prior to the expiration of the respective grace periods, if any,
provided for in the Group III Master Lease for the making of such payments, but
only if such grace periods, if any, expire (or, with respect to any payment for
which there is no grace period, only if such payment is due) during such
Related Month, (b) the amounts owed by each Manufacturer under an Eligible
Repurchase Program with respect to Group III Repurchase Vehicles that are
Lessor-Owned Vehicles or with respect to Eligible Receivables, to the extent,
in either case, that any such amount remains unpaid after 90 days from the
Turnback Date for the related Group III Vehicle,

                                     -22-
<PAGE>   26

but only if such 90-day period expires during such Related Month and (c) the
amounts owed by each Auction Dealer in connection with an Eligible Repurchase
Program with respect to Group III Repurchase Vehicles that are Lessor-Owned
Vehicles, to the extent that any such amount remains unpaid more than 10 days
after the sale of the related Vehicle, but only if such 10-day period expires
during such Related Month.

         "Series 2000-2 Repurchase Recoveries" means, with respect to any
Related Month, the sum of (without duplication) all amounts received during
such Related Month by TFFC or the Trustee (including deposits into the
Collection Account) from any source (other than Enhancement) in respect of
Series 2000-2 Repurchase Losses, as determined by the Servicer consistent with
its methods of tracking and allocating to vehicles and Series, Disposition
Proceeds, Guaranteed Payments, Repurchase Prices, insurance proceeds and other
proceeds of such Group III Vehicles.

         "Series 2000-2 Required Asset Amount" means, at any time, the quotient
of (a) the Aggregate Principal Balance of the Series 2000-2 Notes at such time
divided by (b) an amount equal to (i) one hundred percent minus (ii) the
Enhancement Percentage at such time.

         "Series 2000-2 Revolving Period" means the period from and including
the Series 2000-2 Issuance Date to the commencement of the Series 2000-2 Rapid
Amortization Period.

         "Series 2000-2 Termination Date" means the earlier of (i) the date on
which all Advances are repaid and (ii) the September 2001 Distribution Date.

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

         "Subaru" means Subaru of America, Inc.

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

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

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

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

                                     -23-
<PAGE>   27

         "TFFC Obligations" means all principal and interest, at any time and
from time to time, owing by TFFC on the Series 2000-2 Note and all costs, fees
and expenses payable by, or obligations of, TFFC under the Indenture and the
Related Documents.

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

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

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

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

                                   ARTICLE 3

                          SECURITY; REPORTS; COVENANT

         Section 3.1  Grant of Security Interest.

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

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

                                     -24-
<PAGE>   28

         the Group III TFFC Agreements as provided in the Indenture and to give
         or withhold any and all consents, requests, notices, directions,
         approvals, extensions or waivers under or with respect to the Group
         III TFFC Agreements or the obligations of any party thereunder;

                  (ii) (A) all Group III Repurchase Vehicles owned by TFFC or
         the Lessees as of the Series 2000-2 Issuance Date and all Group III
         Repurchase Vehicles acquired by TFFC or the Lessees or refinanced by
         TFFC during the term of the Indenture, and all Certificates of Title
         with respect to such Group III Vehicles, (B) all Group III
         Non-Repurchase Vehicles owned by TFFC or the Lessees as of the Series
         2000-2 Issuance Date and all Group III Non-Repurchase Vehicles
         acquired, financed or refinanced by TFFC during the term of the
         Indenture, and all Certificates of Title with respect to such Group III
         Vehicles, (C) all Liens and property from time to time purporting to
         secure payment of any of the obligations or liabilities of the Lessees
         or Budget arising under or in connection with the Group III Master
         Lease, together with all financing statements filed in favor of, or
         assigned to, TFFC describing any collateral securing such obligations
         or liabilities, and (D) all guarantees, insurance and other agreements
         or arrangements of whatever character from time to time supporting or
         securing payment of such obligations and liabilities of the Lessees or
         Budget pursuant to the Group III Master Lease;

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

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

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

                                     -25-
<PAGE>   29
provided, however, the Group III Collateral shall not include (x) any Excluded
Payments or (y) the Budget Distribution Account, any funds on deposit therein
from time to time, any certificates or instruments, if any, representing or
evidencing any or all of the Budget Distribution Account or the funds on deposit
therein from time to time, or any Permitted Investments made at any time and
from time to time with the moneys in the Budget Distribution Account (including
the income thereon).

         (b)      To further secure the TFFC Obligations with respect to the
Series 2000-2 Note (but not any other Series of Notes), TFFC hereby pledges,
assigns, conveys, delivers, transfers and sets over to the Trustee for the
benefit of the Series 2000-2 Noteholders (but not any other Series of Notes),
and hereby grants to the Trustee for the benefit of the Series 2000-2
Noteholders, a security interest in all of TFFC's right, title and interest in
and to all of the following assets, property and interests in property, whether
now owned or hereafter acquired or created (all of the foregoing being referred
to as the "Series 2000-2 Collateral"):

                  (i)      the Series 2000-2 Collection Account and the Series
         2000-2 Distribution Account;

                  (ii)     all funds on deposit in the Series 2000-2 Collection
         Account and the Series 2000-2 Distribution Account from time to time;

                  (iii)    all certificates and instruments, if any,
         representing or evidencing any or all of the Series 2000-2 Collection
         Account and the Series 2000-2 Distribution Account or the funds on
         deposit therein from time to time;

                  (iv)     all Permitted Investments made at any time and from
         time to time with moneys in the Series 2000-2 Collection Account or the
         Series 2000-2 Distribution Account; and

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

         (c)      The Trustee, on behalf of the Group III Noteholders or the
Series 2000-2 Noteholders, as applicable, acknowledges the foregoing grant,
accepts the trusts under this Supplement in accordance with the provisions of
the Indenture and this Supplement and agrees to perform its duties required in
this Supplement to the best of its abilities to the end that the interests of
the Series 2000-2 Noteholders or, as applicable, the Group III Noteholders may
be adequately and effectively protected. The Group III Collateral shall secure
the Notes included in the Group III Series of Notes. The Series 2000-2
Collateral shall secure the Series 2000-2 Note.

         Section  3.2 Reports. Not later than the second business Day
immediately preceding each Distribution Date, the Servicer shall furnish to the
Trustee and each Series 2000-2 Noteholder a Monthly Servicer's Certificate and a
Fleet Report with respect to the Group III Collateral.

                                      -26-
<PAGE>   30

                                    ARTICLE 4

                 INITIAL ISSUANCE AND INCREASES AND DECREASES OF
               Series 2000-2 INVESTED AMOUNT OF Series 2000-2 NOTE

         Section  4.1. Issuance in Definitive Form. Pursuant to Section 2.18 of
the Base Indenture, TFFC hereby consents to the issuance of the Series 2000-2
Note in the form of a Definitive Note. The Series 2000-2 Note shall be sold
pursuant to the Series 2000-2 Note Purchase Agreement in reliance on an
exemption from the registration requirements of the Securities Act, and shall be
issued in the form of one or more Definitive Notes, in fully registered form
without interest coupons, substantially in the form attached hereto as Exhibit
A, with such legends as may be applicable thereto, duly executed by TFFC and
authenticated by the Trustee as provided in Section 2.4 of the Base Indenture,
in an aggregate stated principal amount of up to $88,200,000 (the "Series 2000-2
Maximum Invested Amount").

         Section  4.2 Procedure for Increasing the Invested Amount.

         (a)      Subject to satisfaction of the conditions precedent set forth
in subsection (b) of this Section 4.2 (as evidenced by an Officer's Certificate
of the Servicer delivered to the Trustee), on the Series 2000-2 Issuance Date,
TFFC may issue the Series 2000-2 Note in the stated amount described in Section
4.1, the initial aggregate principal amounts of which will be equal to the
Initial Invested Amount. Such Series 2000-2 Note shall be issued to the Agent,
as agent for the Series 2000-2 Note Purchaser and the Committed Note Purchaser.
On the Series 2000-2 Issuance Date and thereafter on each Increase Date during
the Revolving Period, TFFC may, upon request by Budget under the Group III
Master Lease and upon not less than one Business Day's prior written notice by
TFFC to the Agent (such notice specifying the applicable Increase Date),
increase the Series 2000-2 Invested Amount (each such increase referred to as an
"Increase") by issuing, at par, additional Series 2000-2 Invested Amount of the
Series 2000-2 Note in amounts that satisfy the following requirements: (i) the
portion of the Increase represented by additional Series 2000-2 Invested Amount
shall be such that the Series 2000-2 Credit Support Amount shall at least equal
the Series 2000-2 Minimum Credit Support Amount after giving effect to such
Increase in the Series 2000-2 Invested Amount and the application of the
proceeds thereof to leasing Group III Vehicles; and (ii) no Series 2000-2 Asset
Amount Deficiency will result from such Increase. Satisfaction of the above
conditions shall be evidenced by the delivery of a certificate from the Servicer
to such effect. Proceeds from any Increase shall be deposited into the Series
2000-2 Collection Account and allocated in accordance with Article 5 hereof.
Upon each Increase, the Trustee shall, or shall cause the Note Registrar to,
indicate in the Note Register such Increase.

         (b)      The Series 2000-2 Invested Amount may be increased pursuant to
subsection (a) above only upon satisfaction of each of the following conditions
(as evidenced by an Officers' Certificate delivered by TFFC to the Trustee) with
respect to each proposed Increase:

                                      -27-
<PAGE>   31

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

                  (ii)     After giving effect to such Increase, the Series
         2000-2 Invested Amount shall not exceed the Series 2000-2 Maximum
         Invested Amount;

                  (iii)    There shall not then exist, nor shall such Increase
         result in the occurrence of, (x) an Amortization Event, a Liquidation
         Event of Default or a Series 2000-2 Limited Liquidation Event of
         Default, or (y) an event or occurrence, which, with the passing of time
         or the giving of notice thereof, or both, would become an Amortization
         Event, a Liquidation Event of Default or a Series 2000-2 Limited
         Liquidation Event of Default;

                  (iv)     All conditions precedent (1) to the acquisition of
         additional Group III Vehicles under the Group III Master Lease and (2)
         to the making of Advances under the Series 2000-2 Note Purchase
         Agreement shall have, in each case, been satisfied;

                  (v)      TFFC (with respect to Lessor-Owned Vehicles) or the
         applicable Lessee (with respect to Financed Vehicles) shall have good
         and marketable title to each Group III Vehicle purchased by it with the
         proceeds of the Series 2000-2 Note, free and clear of all Liens and
         encumbrances, other than any Permitted Liens. Each Repurchase Program
         shall be in full force and effect, and shall be enforceable against the
         related Manufacturer in accordance with its terms;

                  (vi)     Each Lessee shall have granted to TFFC, for the
         benefit of the Trustee, and TFFC shall have granted to the Trustee, in
         each case for the benefit of the Series 2000-2 Noteholders, a first
         priority security interest in all Group III Vehicles now or hereafter
         purchased, financed or refinanced by TFFC with the proceeds of the
         Series 2000-2 Note or with any contributions of capital made by Budget
         in favor of TFFC;

                  (vii)    TFFC shall have granted to the Trustee a first
         priority security interest in its right, title and interest in and to
         the Group III Master Lease, the Group III Collateral and the Series
         2000-2 Collateral;

                  (viii)   The Trustee shall have received a copy of each
         Repurchase Program under which Group III Vehicles will be or have been
         purchased and are proposed to be included in the Aggregate Asset Amount
         and an Officer's Certificate, dated the Series 2000-2 Issuance Date,
         and duly executed by an Authorized Officer of TFFC, certifying that
         each such copy is true, correct and complete as of the Series 2000-2
         Issuance Date;

                  (ix)     All representations and warranties set forth in
         Article 7 of the Base Indenture and in Section 27 of the Group III
         Master Lease shall be true and correct on and as of the date of such
         Increase as if made on and with respect to the date of such Increase;
         and

                                      -28-
<PAGE>   32

                  (x)      With respect to the initial Increase only, the
         Servicer shall have calculated the Series 2000-2 Available Subordinated
         Amount and the Trustee shall have confirmed receipt of such written
         calculation.

         Section  4.3 Decreases.

         (a)      Mandatory Decreases. Whenever the Series 2000-2 Credit Support
Amount is less than the Series 2000-2 Minimum Credit Support Amount, TFFC shall
pay down the Series 2000-2 Invested Amount of the Series 2000-2 Note by the
amount necessary, so that after giving effect to all Decreases of the Series
2000-2 Invested Amount on such Distribution Date, no such deficiency shall exist
(each reduction of the Series 2000-2 Invested Amount pursuant to this Section
4.3(a), a "Mandatory Decrease"). Upon such discovery, TFFC shall deliver notice
of any such Mandatory Decreases to the Trustee.

         (b)      Voluntary Decreases. Upon at least one Business Day's prior
irrevocable notice to the Lender and the Trustee in writing, TFFC may
voluntarily prepay all or a portion of the Series 2000-2 Invested Amount in
accordance with the procedures set forth herein (including, without limitation,
in Section 5.5(c) hereof) and, as applicable, in the Series 2000-2 Note Purchase
Agreement (each reduction of the Series 2000-2 Invested Amount pursuant to this
Section 4.3(b), a "Voluntary Decrease"); provided, that all voluntary Decreases
pursuant to this Section 4.3(b) shall be allocated such that (1) the Series
2000-2 Credit Support Amount after giving effect to such Decrease is not less
than the Series 2000-2 Minimum Credit Support Amount. Each such Decrease shall
be in a minimum principal amount of $100,000.

         (c)      Upon receipt by a Responsible Officer of the Trustee of
written notice that a Decrease has been completed, the Trustee shall, or shall
cause the Note Registrar to, indicate in the Note Register such Decrease. The
amount of any Decrease shall not exceed the amount on deposit in the Series
2000-2 Collection Account and available for distribution to Series 2000-2
Noteholders in respect of principal on the Series 2000-2 Note on the date
specified in the related notice of Decrease referred to in clauses (a) and (b)
above, as applicable.

                                    ARTICLE 5

                            Series 2000-2 ALLOCATIONS

Any provisions of Article 5 of the Base Indenture which allocate and apply
Collections shall continue to apply irrespective of the issuance of the Series
2000-2 Note. Sections 5.1 through 5.5 of the Base Indenture shall be read in
their entirety as provided in the Base Indenture, provided that for purposes of
the Series 2000-2 Note, clause (d) of Section 5.2 of the Base Indenture shall be
modified, as it applies to the Series 2000-2 Note, as permitted by Section
12.1(f) of the Base Indenture and shall read as follows:

                                      -29-
<PAGE>   33

         (d)      Sharing Collections. To the extent that Principal Collections
that are allocated to the Series 2000-2 Note on a Distribution Date are not
needed to make payments of principal to Series 2000-2 Noteholders or required to
be deposited in the Series 2000-2 Distribution Account on such Distribution
Date, such Principal Collections may, at the written direction of the Servicer,
be applied to cover principal payments due to or for the benefit of Noteholders
of other Group III Series of Notes. Any such reallocation will not result in a
reduction of the Aggregate Principal Balance or Invested Amount of the Series
2000-2 Note.

         In addition, for purposes of Section 5.2(a) of the Base Indenture, the
Servicer, in its capacity as such under the Group III Master Lease, shall (to
the extent practicable) cause all Collections allocable to Group III Collateral
in accordance with the Indenture to be paid directly into the Collection Account
and all Collections allocable to the Series 2000-2 Collateral to be paid
directly into the Series 2000-2 Collection Account.

         Article 5 of the Base Indenture (except for Sections 5.1 through 5.5
thereof, subject to the proviso in the first paragraph of this Article 5 and
subject to the immediately preceding sentence) shall read in its entirety as
follows and shall be applicable only to the Series 2000-2 Note:

         Section 5.1 Establishment of the Group III Collection Account, Series
2000-2 Collection Account and Series 2000-2 Accrued Interest Account.

         (a)      The Trustee acknowledges that it has established and maintains
a segregated trust account for the benefit of holders of Notes from the Group
III Series of Notes (the "Group III Collection Account"). The Trustee will also
establish and maintain a segregated trust account for the benefit of the Series
2000-2 Noteholders (the "Series 2000-2 Collection Account"). Amounts on deposit
in the Group III Collection Account and the Series 2000-2 Collection Account
shall be invested in accordance with Sections 5.1(d) and (f) of the Base
Indenture.

         (b)      The Trustee will establish and maintain an administrative
sub-account within the Series 2000-2 Collection Account (such sub-account, the
"Series 2000-2 Accrued Interest Account").

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

         (d)      All Group III Collections that are deposited on any Business
Day in the Group III Collection Account and that are Series 2000-2 Collections
shall on each such Business Day be allocated to and deposited in the Series
2000-2 Collection Account. All amounts received in respect of the Series 2000-2
Collateral shall be allocated to and deposited in the Series 2000-2 Collection
Account.

         (e)      Any amounts in the Group III Collection Account not allocated
to the Series 2000-2 Collection Account or another series-specific collection
account under the supplements for the

                                      -30-
<PAGE>   34

other Group III Series of Notes shall be allocated by the Trustee at the written
direction of the Servicer to the Budget Distribution Account in an amount equal
to (x) the applicable Budget Interest Percentage (as of such date) of the
aggregate amount of Group III Collections that are Principal Collections
received on such date, minus (y) any amounts, other than Servicing Fees, which
have been withheld by the Master Servicer pursuant to Section 5.2(c) of the Base
Indenture to the extent such amounts withheld under Section 5.2(c) of the Base
Indenture represent all or part of the Budget Interest Amount; and

         Section 5.2 Allocations with Respect to the Series 2000-2 Note. The
proceeds from the sale of the Series 2000-2 Note , together with any funds
deposited with TFFC by Budget, in its capacity as the Budget Interestholder,
will initially be delivered by or on behalf of TFFC to the Trustee in the Series
2000-2 Collection Account. On each Business Day on which Collections or the
proceeds of any Increase are deposited into the Group III Collection Account and
allocated to the Series 2000-2 Collection Account or deposited in the Series
2000-2 Collection Account (each such date, a "Deposit Date"), the Servicer will
direct the Trustee in writing to allocate all amounts allocated to or deposited
in the Series 2000-2 Collection Account in accordance with the provisions of
this Section 5.2.

         (a)      Allocations During the Revolving Period. During the Series
2000-2 Revolving Period, the Servicer will direct the Trustee in writing to
allocate, prior to 1:00 p.m. (New York City time) on each Deposit Date, all
amounts deposited into the Series 2000-2 Collection Account as set forth below:

                  (i) allocate to the Series 2000-2 Accrued Interest Account,
         from the Series 2000-2 Interest Collections received on such date, an
         amount, as stated in such Servicer direction, equal to the Series
         2000-2 Note Interest and all other Series 2000-2 Carrying Charges
         accrued and unpaid as of such date less any funds on deposit on such
         date in the Series 2000-2 Accrued Interest Account (the "Series 2000-2
         Interest Allocation"); provided, however, that if on any Deposit Date
         the Series 2000-2 Interest Collections allocated to the Series 2000-2
         Collection Account on such date exceed the Series 2000-2 Interest
         Allocation as of such date, then the amount of such excess shall be
         retained on deposit in the Series 2000-2 Collection Account and shall
         be available on such Deposit Date for application in accordance with
         clauses (ii) through (v) below;

                  (ii) to the extent a Mandatory Decrease is required under
         Section 4.3(a), allocate to the Series 2000-2 Distribution Account for
         the payment of the Series 2000-2 Invested Amount, the amount, as stated
         in such Servicer direction, necessary for such Mandatory Decrease;

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

                                      -31-
<PAGE>   35

                  (iv)     allocate to the Series 2000-2 Distribution Account
         the amount, as stated in such Servicer direction, of any Voluntary
         Decreases in the Series 2000-2 Invested Amount to be made in accordance
         with Section 4.3(b) hereof;

                  (v)      the amounts remaining in the Series 2000-2 Collection
         Account on such Deposit Date after application pursuant to clauses (i),
         (ii), (iii) and (iv) above shall be retained on deposit and shall be
         available on such Deposit Date and/or on future Deposit Dates for
         application in accordance with this Section 5.2 or otherwise in
         accordance with this Article 5.

         (b)      Allocations During the Series 2000-2 Rapid Amortization
Period. During the Series 2000-2 Rapid Amortization Period, the Servicer will
direct the Trustee in writing to allocate all Series 2000-2 Collections prior to
1:00 p.m. (New York City time) on any Deposit Date, as set forth below:

                  (i) allocate to the Series 2000-2 Accrued Interest Account the
         Series 2000-2 Interest Allocation as of such date; provided, however,
         that if on any Deposit Date the Series 2000-2 Interest Collections
         allocated to the Series 2000-2 Collection Account on such date exceed
         the Series 2000-2 Interest Allocation as of such date, then the amount
         of such excess shall be retained on deposit in the Series 2000-2
         Collection Account and shall be available on such Deposit Date for
         application in accordance with clauses (ii) through (v) below;

                  (ii) allocate to the Series 2000-2 Collection Account an
         amount equal to the Series 2000-2 Principal Allocation for such day,
         which amount shall be used to make principal payments in respect of the
         Series 2000-2 Note; and

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

                  (x)      Monthly, for each Distribution Date, allocate to the
         Series 2000-2 Note an amount, as stated in such Servicer direction,
         equal to the Series 2000-2 Invested Percentage (as of such date) of the
         aggregate amount of Series 2000-2 Non-Repurchase Losses and Series
         2000-2 Repurchase Losses for the Related Month in the following manner:

                           (i)      First, reduce the Series 2000-2 Available
                  Subordinated Amount by the amount of such Losses until the
                  Series 2000-2 Available Subordinated Amount has been reduced
                  to zero; and

                           (ii)     Second, any such Losses remaining after
                  making the allocations, withdrawals and claims under clause
                  (i) above will be allocated, as stated in such Servicer
                  direction, to reduce the Series 2000-2 Invested Amount.

                                      -32-
<PAGE>   36

                  (y)      Monthly, for each Distribution Date, allocate to the
         Series 2000-2 Note an amount, as stated in such Servicer direction,
         equal to the Series 2000-2 Invested Percentage (as of such date) of the
         aggregate amount of Series 2000-2 Repurchase Recoveries and Series
         2000-2 Non-Repurchase Recoveries for the Related Month in the following
         manner:

                           (i)      First, allocate all such Recoveries to
                  reinstate the Series 2000-2 Invested Amount, to the extent the
                  Series 2000-2 Invested Amount has been reduced pursuant to
                  Section 5.2(c)(x)(ii) above;

                           (ii)     Second, allocate all remaining Recoveries
                  after making the allocations in clause (i) above up to the
                  amount, as stated in such Servicer direction, necessary to
                  reinstate the Series 2000-2 Available Subordinated Amount to
                  the Series 2000-2 Required Subordinated Amount; and

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

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

                  (i)      provided the Series 2000-2 Rapid Amortization Period
         has not commenced, amounts retained in the Series 2000-2 Collection
         Account that are not required to make payments under the Series 2000-2
         Note pursuant hereto may, as and to the extent permitted in the related
         Supplements, be used to pay the principal amount of other Group III
         Series of Notes that are then in amortization and, after such payment,
         any remaining funds may, at TFFC's option, be (A) used to finance,
         refinance or acquire Group III Vehicles, to the extent Eligible
         Vehicles have been requested by any of the Lessees under the Group III
         Master Lease or (B) transferred, on any Distribution Date, to the
         Budget Distribution Account, to the extent that the Budget Interest
         Amount equals or exceeds zero after giving effect to such payment and
         so long as no Series 2000-2 Credit Support Deficiency or Series 2000-2
         Asset Amount Deficiency exists or would result from such transfer;
         provided, however, that funds remaining after the application of such
         funds to the payment of the principal amount of other Group III Series
         of Notes that are in amortization and to the financing, refinancing or
         acquisition of Group III Vehicles may be transferred to the Budget
         Distribution Account on a day other than a Distribution Date if the
         Servicer furnishes to the Trustee an Officer's Certificate to the
         effect that such transfer will not cause any of the foregoing
         deficiencies to occur either on the date that such transfer is made or,
         in the reasonable anticipation of the Servicer, on the next
         Distribution Date. Funds in the Budget Distribution Account shall, at
         the option of TFFC, be available to finance, refinance or acquire Group
         III Vehicles, to the extent Eligible

                                      -33-
<PAGE>   37

         Vehicles have been requested by any of the Lessees under the Group III
         Master Lease, or for distribution to the Budget Interestholder;

                  (ii)     in the event that the Servicer is not Budget or an
         Affiliate of Budget or if a Servicer Default has occurred and is
         continuing, the Servicer shall not be entitled to withhold any amounts
         pursuant to Section 5.2(c) of the Base Indenture and the Trustee shall
         deposit amounts payable to Budget in the Collection Account pursuant to
         the provisions of Section 5.2 of the Base Indenture on each Deposit
         Date;

                  (iii)    any amounts withheld by the Servicer and not
         deposited in the Collection Account pursuant to Section 5.2(c) of the
         Base Indenture shall be deemed to be deposited in the Collection
         Account and allocated to the Group III Collection Account and the
         Series 2000-2 Collection Account, as applicable, on the date such
         amounts are withheld for purposes of determining the amounts to be
         allocated pursuant to this Section 5.2;

                  (iv)     TFFC may, from time to time in its sole discretion,
         increase the Series 2000-2 Available Subordinated Amount by (A) (x)
         transferring funds to the Series 2000-2 Collection Account or (y)
         allocating to the Series 2000-2 Available Subordinated Amount Eligible
         Vehicles theretofore allocated to the Budget Interest, and (B)
         delivering to the Servicer and the Trustee an Officers' Certificate
         setting forth the amount of such transferred funds or the Net Book
         Value of such Eligible Vehicles, as the case may be, stating that such
         transferred funds or Eligible Vehicles, as applicable, shall be
         allocated to the Series 2000-2 Available Subordinated Amount and, in
         the case of Eligible Vehicles, affirming with respect to such Eligible
         Vehicles the representations and warranties set forth in Section 7.14
         of the Base Indenture (and an Opinion of Counsel to the same effect);
         provided, however, TFFC shall have no obligation to so increase the
         Series 2000-2 Available Subordinated Amount;

                  (v)      in the event that the Series 2000-2 Credit Support
         Amount is reduced to less than the Series 2000-2 Minimum Credit Support
         Amount, an Amortization Event and a Series 2000-2 Limited Liquidation
         Event of Default shall be deemed to have occurred with respect to the
         Series 2000-2 Note only if, after any applicable grace period, either
         the Trustee, by written notice to the Issuer, or the Required
         Noteholders, by written notice to the Issuer and the Trustee, declare
         that an Amortization Event has occurred; provided, however, (i) the
         Issuer may prevent an Amortization Event from occurring if, within one
         (1) Business Day after the occurrence of such Series 2000-2 Credit
         Support Deficiency, the Series 2000-2 Available Subordinated Amount is
         increased by an amount sufficient, in the aggregate, to eliminate such
         Series 2000-2 Credit Support Deficiency; provided, however, the amount
         of such contribution (together with the sum of the amounts of all prior
         contributions) shall not exceed the Series 2000-2 Available
         Subordinated Amount Maximum Increase, and (ii) the Issuer may prevent a
         Series 2000-2 Limited Liquidation Event of Default from occurring if
         within the thirty (30) day period after the occurrence of such Series
         2000-2 Credit Support Deficiency, (x) the Series 2000-2 Available

                                      -34-
<PAGE>   38

         Subordinated Amount is increased by an amount sufficient to eliminate
         such Series 2000-2 Credit Support Deficiency and (y) the Rating Agency
         Confirmation condition is satisfied;

                  (vi)     if, on any Distribution Date during the Series 2000-2
         Revolving Period, a Mandatory Decrease shall be required under Section
         4.3(a) of this Supplement and the amounts allocated to the Series
         2000-2 Distribution Account under Section 5.2(a)(ii) are less than the
         amount of such required Decrease, then, in such event, any funds on
         deposit in the collection accounts or excess funding accounts for other
         Group III Series of Notes issued and outstanding under the Indenture
         which amounts are not allocable to the Budget Interest and are in
         excess of the amounts necessary to be on deposit in each such account
         in order that (x) no Asset Amount Deficiency occur with respect to any
         such Series, (y) no shortfall in the required level of enhancement
         occur with respect to any such Series, including any portion of such
         enhancement that is required to be in liquid funds, and (z) no
         Amortization Event for any such Series or event that with the giving of
         notice or passage of time would become an Amortization Event occur with
         respect to any such Group III Series of Notes (such amounts as are set
         forth in clauses (i) and (ii) of this subparagraph (G) being referred
         to herein as "Excess Amounts") shall, in each such case, be deposited
         into the Series 2000-2 Distribution Account as Principal Collections in
         an aggregate amount up to the amount of any such deficiency and shall
         be used, in accordance with Section 5.5, to reduce the Series 2000-2
         Invested Amount; and

                  (vii)    if, on any Distribution Date during the Series 2000-2
         Rapid Amortization Period, the Monthly Principal Allocation under
         Section 5.2(b)(ii) is insufficient to reduce the Series 2000-2 Invested
         Amount to zero, then, in such event, any funds constituting Excess
         Amounts shall, in each such case, be deposited into the Series 2000-2
         Distribution Account as Principal Collections in an aggregate amount up
         to the amount of any such deficiency and shall be used, in accordance
         with Section 5.5, to reduce the Series 2000-2 Invested Amount.

         Section 5.3 Withdrawals from the Series 2000-2 Accrued Interest
Account. On each Determination Date or Additional Distribution Date, as provided
below, the Servicer shall instruct the Trustee or the Paying Agent in writing to
withdraw, and on such Distribution Date or Additional Distribution Date, as
applicable, the Trustee or the Paying Agent, acting in accordance with such
written instructions, shall withdraw the amounts required to be withdrawn from
the Series 2000-2 Accrued Interest Account pursuant to Sections 5.3(a), (b) and
(c) below (after giving effect to the allocations on such date pursuant to
Section 5.2) in respect of all funds available from Collections processed since
the preceding Distribution Date and allocated to the holders of the Series
2000-2 Note.

         (a)      Successor Servicer Fees. On each Determination Date on which
Budget is not the Servicer, and before any deposits required to be made on the
related Distribution Date to the Series 2000-2 Distribution Account have been
made, the Servicer shall instruct the Trustee and the Paying Agent in writing as
to the amount to be withdrawn from the Series 2000-2 Accrued

                                      -35-
<PAGE>   39

Interest Account to the extent funds are available and processed since the
preceding Distribution Date in respect of an amount equal to (i) the Series
2000-2 Investor Monthly Servicing Fee (and any Series 2000-2 Monthly
Supplemental Servicing Fee) accrued since the preceding Distribution Date, plus
(ii) all accrued and unpaid Series 2000-2 Investor Monthly Servicing Fees (and
any Series 2000-2 Monthly Supplemental Servicing Fees) in respect of previous
periods, minus (iii) the amount of any Series 2000-2 Investor Monthly Servicing
Fees (and Series 2000-2 Monthly Supplemental Servicing Fees) withheld by the
Servicer since the preceding Distribution Date pursuant to Section 5.2(c) of the
Base Indenture. On such Distribution Date, the Trustee shall withdraw such
amount from the Series 2000-2 Accrued Interest Account and remit such amount to
the Servicer.

         (b)      Note Interest with respect to the Series 2000-2 Note. (i) On
each Determination Date, the Servicer shall instruct the Trustee and the Paying
Agent in writing as to the amount to be withdrawn from the Series 2000-2 Accrued
Interest Account, after making all distributions required to be made pursuant to
Section 5.3(a), to the extent funds will be available and processed from but not
including the preceding Distribution Date through the succeeding Distribution
Date in respect of Series 2000-2 Note Interest and Series 2000-2 Carrying
Charges. On the Distribution Date related to such Determination Date, the
Trustee shall withdraw from the Series 2000-2 Accrued Interest Account the
amount on deposit therein available for the payment of Series 2000-2 Note
Interest and Series 2000-2 Carrying Charges and deposit such amount in the
Series 2000-2 Distribution Account.

                  (ii)     On any Business Day during a Series 2000-2 Interest
         Period (each such day, an "Additional Distribution Date"), the Servicer
         may instruct the Trustee in writing to withdraw from the Series 2000-2
         Accrued Interest Account, and on such Additional Distribution Date the
         Trustee, acting in accordance with such instructions, shall withdraw
         from the Series 2000-2 Accrued Interest Account, as directed in writing
         by the Servicer, all or a portion of the Series 2000-2 Note Interest
         that will be due on the first Distribution Date following such
         Additional Distribution Date to the extent that such amount does not
         exceed the aggregate amount of Series 2000-2 Interest Collections
         processed since the preceding Distribution Date and allocated to the
         Series 2000-2 Noteholders (less any portion thereof previously paid to
         the Series 2000-2 Noteholders during such period pursuant to this
         Section 5.2(e)) and shall deposit such amounts in the Series 2000-2
         Distribution Account.

         (c)      Servicing Fee. On each Determination Date on which Budget is
the Servicer, the Servicer shall, after giving effect to all distributions
required to be made on the related Distribution Date pursuant to Sections 5.3(a)
and (b) of this Supplement, instruct the Trustee and the Paying Agent in writing
as to the amount to be withdrawn on such Distribution Date from the Series
2000-2 Collection Account to the extent funds are available and processed since
the preceding Distribution Date in respect of an amount equal to (i) the Series
2000-2 Investor Monthly Servicing Fee (and any Series 2000-2 Monthly
Supplemental Servicing Fee) accrued since the preceding Distribution Date, plus
(ii) all accrued and unpaid Series 2000-2 Investor

                                      -36-
<PAGE>   40

Monthly Servicing Fees (and any Series 2000-2 Monthly Supplemental Servicing
Fees) in respect of previous periods, minus (iii) the amount of any Series
2000-2 Investor Monthly Servicing Fees (and Series 2000-2 Monthly Supplemental
Servicing Fees) withheld by the Servicer since the preceding Distribution Date
pursuant to Section 5.2(c) of the Base Indenture. On such Distribution Date, the
Trustee shall withdraw such amount from the Series 2000-2 Collection Account and
remit such amount to the Servicer.

         Section 5.4 Payment of Note Interest and Carrying Charges. On each
Distribution Date and Additional Distribution Date, the Paying Agent shall, in
accordance with Section 6.1 of the Base Indenture and the written instruction of
the Servicer received pursuant to Section 5.3(b) hereof, pay to the Series
2000-2 Noteholders from the Series 2000-2 Distribution Account the amount
deposited in the Series 2000-2 Distribution Account for the payment of Series
2000-2 Note Interest pursuant to Section 5.3(b) of this Supplement and, to the
extent that such amount is insufficient to pay all Series 2000-2 Note Interest
and Series 2000-2 Carrying Charges payable on such Distribution Date (the amount
of such insufficiency, a "Note Interest Shortfall"), the Servicer shall instruct
the Trustee in writing to withdraw from the Series 2000-2 Collection Account the
lesser of (i) the amount on deposit in the Series 2000-2 Collection Account and
(ii) the amount of such Note Interest Shortfall. Subject to Sections 2.15(c) and
6.1(b) of the Base Indenture, all payments of interest and Series 2000-2
Carrying Charges, and all payments of principal pursuant to Section 5.5 hereof,
made to the Series 2000-2 Noteholder shall be made by wire transfer to such
account as the Series 2000-2 Noteholder of record on the preceding Record Date
shall specify from time to time by notice to the Issuer and the Paying Agent.

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

         (a)      Commencing on the first Determination Date after the
commencement of the Series 2000-2 Rapid Amortization Period, the Servicer shall
instruct the Trustee and the Paying Agent in writing as to the amount of
Collections allocated to the Series 2000-2 Note during the Related Month
pursuant to Section 5.2(b)(ii) of this Supplement (such amount, the "Monthly
Principal Allocation"). Commencing on the first Distribution Date after the
commencement of the Series 2000-2 Rapid Amortization Period, to the extent that
the Monthly Principal Allocation is insufficient to pay all principal due in
respect of the Series 2000-2 Note on such Distribution Date (the amount of such
insufficiency, a "Principal Shortfall"), the Servicer shall instruct the Trustee
in writing (a) to withdraw from the Series 2000-2 Collection Account the lesser
of (i) the amount on deposit in the Series 2000-2 Collection Account and (ii)
the amount of such Principal Shortfall and (b) to the extent of any remaining
Principal Shortfall, to apply to the payment thereof Principal Collections with
respect to any other Group III Series of Notes which pursuant to Section 5.2(d)
of the Base Indenture (as modified herein) are available on such Distribution
Date to pay principal of the Series 2000-2 Note (up to the amount of such
Principal Shortfall remaining). The entire principal amount of the Series 2000-2
Note shall be due and payable on the Series 2000-2 Termination Date.

                                      -37-
<PAGE>   41

         (b)      On each Distribution Date occurring on or after the date a
withdrawal or application is made pursuant to Section 5.5(a) of this Supplement,
the Paying Agent shall, in accordance with Section 6.1 of the Base Indenture and
the written instruction of the Servicer received pursuant to Section 5.5(a)
hereof, pay to the Series 2000-2 Noteholders the amount deposited in the Series
2000-2 Distribution Account for the payment of principal pursuant to Section
5.5(a) of this Supplement.

         (c)      On (x) the Distribution Date on which, or immediately
following the date on which, an allocation is made pursuant to Section
5.2(a)(ii), or (y) the Business Day specified in the notice of Decrease
delivered pursuant to Section 4.3(b), occurring on or after the date an
allocation is made pursuant to Section 5.2(a)(iv), the Paying Agent shall pay to
the Series 2000-2 Noteholders pursuant to the written instruction of the
Servicer the amount deposited in the Series 2000-2 Distribution Account for the
payment of principal pursuant to such Section 5.2(a)(ii) or 5.2(a)(iv), as
applicable.

         (d)      On each Distribution Date, the Servicer shall, as applicable,
instruct the Trustee in writing to instruct the Paying Agent to transfer to the
Budget Distribution Account (i) all funds which are in the Group III Collection
Account that have been allocated to the Budget Distribution Account as of such
Distribution Date and (ii) all funds that were previously allocated to the
Budget Distribution Account but not transferred to the Budget Distribution
Account. On the related Distribution Date, the Trustee or Paying Agent shall, in
accordance with the Servicer's instructions, withdraw such funds from the Group
III Collection Account, as applicable, and deposit them into the Budget
Distribution Account.

         Section 5.6 Servicer's or Budget's Failure to Make a Deposit or
Payment. If the Servicer or Budget fails to make, or give notice or instructions
to make, any payment from or deposit to the Collection Account, the Group III
Collection Account, the Series 2000-2 Collection Account or the Series 2000-2
Accrued Interest Account required to be made or given by the Servicer or Budget,
respectively, at the time specified in the Indenture (including applicable grace
periods), the Servicer shall, upon request of the Trustee, promptly provide the
Trustee with all information necessary to allow the Trustee, in the event it
elects to do so, to make such a payment. Such funds shall be applied by the
Trustee in the manner in which such payment or deposit should have been made by
the Servicer.

         Section 5.7  Series 2000-2 Distribution Account.

         (a)      Establishment of the Series 2000-2 Distribution Account. The
Trustee shall establish and maintain in the name of the Trustee for the benefit
of the Series 2000-2 Noteholders, or cause to be established and maintained, an
account (the "Series 2000-2 Distribution Account"), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Series 2000-2 Noteholders. The Series 2000-2 Distribution Account shall be
maintained (i) with a Qualified Institution, or (ii) as a segregated trust
account with the corporate trust department of a depository institution or trust
company having corporate trust powers and acting as trustee for

                                      -38-
<PAGE>   42

funds deposited in the Series 2000-2 Distribution Account. If the Series 2000-2
Distribution Account is not maintained in accordance with the previous sentence,
the Servicer shall establish a new Series 2000-2 Distribution Account, within
ten (10) Business Days after obtaining knowledge of such fact, which complies
with such sentence, and transfer all cash and investments from the
non-qualifying Series 2000-2 Distribution Account into the new Series 2000-2
Distribution Account. Initially, the Series 2000-2 Distribution Account will be
established with the Trustee. The Trustee shall possess all right, title and
interest in all funds on deposit from time to time in the Series 2000-2
Distribution Account and in all proceeds thereof. The Series 2000-2 Distribution
Account Collateral shall be under the sole dominion and control of the Trustee
for the benefit of the Series 2000-2 Noteholders.

         (b)      Administration of the Series 2000-2 Distribution Account. The
Servicer shall instruct the institution maintaining the Series 2000-2
Distribution Account in writing to invest funds on deposit in the Series 2000-2
Distribution Account at all times in Permitted Investments; provided, however,
that any such investment shall mature not later than the Business Day prior to
the Distribution Date following the date on which such funds were received,
unless any Permitted Investment held in the Series 2000-2 Distribution Account
is held with the Paying Agent, then such investment may mature on such
Distribution Date and such funds shall be available for withdrawal on or prior
to such Distribution Date. The Trustee shall hold, for the benefit of the Series
2000-2 Noteholders and the Servicer, possession of the negotiable instruments or
securities evidencing the Permitted Investments described in clause (i) of the
definition thereof from the time of purchase thereof until the time of maturity.

         (c)      Earnings from Series 2000-2 Distribution Account. Subject to
the restrictions set forth above, the Servicer shall have the authority to
instruct the Trustee in writing with respect to the investment of funds on
deposit in the Series 2000-2 Distribution Account. All interest and earnings
(net of losses and investment expenses) on funds on deposit in the Series 2000-2
Distribution Account shall be deemed to be on deposit and available for
distribution.

                                    ARTICLE 6

                               AMORTIZATION EVENTS

         In addition to the Amortization Events set forth in Section 9.1 of the
Base Indenture, subject to Section 5.2(a)(v) hereof, the following shall be
Amortization Events with respect to the Series 2000-2 Note (without notice or
other action on the part of the Trustee or any holders of the Series 2000-2
Note) and shall not be subject to waiver:

         (a)      A Series 2000-2 Credit Support Deficiency shall occur and
exist for more than one (1) Business Day unless during such one (1) Business Day
period the Issuer or the Servicer shall have cured the Series 2000-2 Credit
Support Deficiency in accordance with the terms and conditions of this
Supplement;

                                      -39-
<PAGE>   43

         (b)      if all principal and interest of the Series 2000-2 Note is not
paid in full on or before the September 2000 Distribution Date;

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

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

         (e)      an event of default shall have occurred and be continuing
under the Series 2000-2 Note Purchase Agreement.

                                    ARTICLE 7

                                     GENERAL

         (a)      Repurchase. The Series 2000-2 Note shall be subject to
repurchase by TFFC at its option in accordance with Section 6.3 of the Base
Indenture on any Distribution Date. The repurchase price for the Series 2000-2
Note shall equal the Aggregate Principal Balance of the Series 2000-2 Note
(determined after giving effect to any payments of principal and interest and
any Increases or Decreases as of such Distribution Date), plus all accrued and
unpaid interest on such Aggregate Principal Balance through the date of purchase
under this Section 7(a) plus any other amounts then due and payable to the
holders of such Series 2000-2 Note pursuant to this Supplement, the Series
2000-2 Note Purchase Agreement and the Series 2000-2 Note.

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

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

         Exhibit A:  Form of Series 2000-2 Note

         Exhibit B:  List of Approved Manufacturers

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

                                      -40-
<PAGE>   44

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

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

         (g)      Amendments. This Supplement may be modified or amended from
time to time by written agreement of the parties hereto, but only with the
written consent of the Requisite Noteholders.

         (h)      Discharge of Indenture. Notwithstanding anything to the
contrary contained in the Base Indenture, no discharge of the Indenture pursuant
to Section 11.1(b) of the Base Indenture will be effective as to the Series
2000-2 Note without the consent of the Required Noteholders.

         (i)      Base Indenture Defined Terms. Each of the capitalized terms
listed in the first column below is defined in Schedule 1 to the Base Indenture,
as such term applies to any Segregated Series (including Series 2000-2), by
reference to the related Supplement. Such terms are defined in this Series
2000-2 Supplement using the corresponding capitalized terms set forth in the
second column below opposite such Base Indenture terms.

<TABLE>
<CAPTION>
                                                             CORRESPONDING SERIES
       BASE INDENTURE TERMS                                 2000-2 SUPPLEMENT TERMS
       --------------------                                 -----------------------
<S>                                                    <C>
Aggregate Segregated Repurchase Asset                  Aggregate Group III Repurchase Asset
Amount                                                 Amount

Monthly Servicing Fee                                  Series 2000-2 Monthly Servicing Fee

Repurchase Vehicle                                     Group III Repurchase Vehicle

Segregated Repurchase Vehicle                          Group III Repurchase Vehicle

Vehicle                                                Group III Vehicle

Non-Repurchase Vehicle                                 Group III Non-Repurchase Vehicle

Aggregate Non-Repurchase Asset Amount                  Aggregate Group III Non-Repurchase Asset
                                                       Amount
</TABLE>

                                      -41-
<PAGE>   45

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

         (k)      Tax Opinion. No State of Virginia tax opinion is required to
be rendered in connection with the issuance of the Series 2000-2 Note.

                                      -42-
<PAGE>   46

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

                                    TEAM FLEET FINANCING CORPORATION,
                                    as Issuer

                                    By:
                                       -----------------------------------------
                                          Name:       Robert L. Aprati
                                          Title:      Secretary

                                    BUDGET GROUP, INC., as Servicer

                                    By:
                                       -----------------------------------------
                                          Name:       Robert L. Aprati
                                          Title:      Secretary

                                    BUDGET GROUP, INC., as Budget Interestholder

                                    By:
                                       -----------------------------------------
                                          Name:       Robert L. Aprati
                                          Title:      Secretary

                                    BANKERS TRUST COMPANY, as Trustee

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

<PAGE>   47

                                                                       EXHIBIT A
                                                                              TO
                                                        Series 2000-2 SUPPLEMENT

                          FORM OF VARIABLE FUNDING NOTE

REGISTERED                                                           $90,000,000

No. A-

                       SEE REVERSE FOR CERTAIN CONDITIONS

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

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

<PAGE>   48

                        TEAM FLEET FINANCING CORPORATION

          VARIABLE FUNDING RENTAL CAR ASSET BACKED NOTE, Series 2000-2

                  TEAM FLEET FINANCING CORPORATION, a Delaware corporation
(herein referred to as the "Company"), for value received, hereby promises to
pay to Deutsche Bank AG, New York Branch, as Agent, a Delaware corporation (the
"Noteholder"), or its registered assigns, the principal sum of up to NINETY
MILLION DOLLARS ($90,000,000) or, if less the aggregate unpaid principal amount
shown on the schedule attached hereto (and any continuation thereof), which
amount shall be payable in the amounts and at the times set forth in the
Indenture, provided, however, that the entire unpaid principal amount of this
Note shall be due on the Series 2000-2 Termination Date, which is the September
2001 Distribution Date (unless extended in writing by the parties to the
Indenture and the Noteholder). The Company will pay interest on this Note at the
Series 2000-2 Note Rate. Such interest shall be payable on each Distribution
Date until the principal of this Note is paid or made available for payment, to
the extent funds will be available from Series 2000-2 Collections processed from
and including the preceding Distribution Date to but excluding each such
Distribution Date in respect of (a) an amount equal to interest accrued for the
related Series 2000-2 Interest Period, which will be equal to the sum of the
products, for each day during the related Series 2000-2 Interest Period, of (i)
the Series 2000-2 Note Rate for such Series 2000-2 Interest Period and (ii) the
Series 2000-2 Invested Amount as of the close of business on such date divided
by 360, plus (b) an amount equal to the amount of any accrued and unpaid Note
Interest Shortfall with respect to prior Series 2000-2 Interest Periods, with
interest on the amount of such Note Interest Shortfall at the Series 2000-2 Note
Rate for the related Series 2000-2 Interest Period. The principal amount of this
Note shall be subject to Increases and Decreases on any Distribution Date, and
accordingly, such principal amount is subject to prepayment at any time.
Notwithstanding the foregoing, prior to the Series 2000-2 Termination Date and
unless an Amortization Event shall have occurred, only interest payments on the
outstanding principal amount of the Note are required to be made to the holder
hereof. Beginning on the first Distribution Date following the occurrence of an
Amortization Event, subject to Decreases on any Business Day, the principal of
this Note shall be paid in installments on each subsequent Distribution Date to
the extent of funds available for payment therefor pursuant to the Indenture.
Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

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

                  Reference is made to the further provisions of this Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Note. Although a summary of certain provisions of
the Indenture are set forth below and on the reverse hereof and made a part
hereof, this Note does not purport to summarize the Indenture and reference is
made to the Indenture for information with respect to the interests, rights,
benefits,

                                      A-2
<PAGE>   49

obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Servicer and the Trustee. A copy of the Indenture may be
requested from the Trustee by writing to the Trustee at: Bankers Trust Company,
4 Albany Street, New York, New York 10006, Attention: Corporate Trust and Agency
Group. To the extent not defined herein, the capitalized terms used herein have
the meanings ascribed to them in the Indenture.

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

                                      A-3
<PAGE>   50

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

Date: June 29, 2000                  TEAM FLEET FINANCING CORPORATION

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

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                         BANKERS TRUST COMPANY,
                                           as Trustee

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

                                      A-4
<PAGE>   51

                          REVERSE OF SERIES 2000-2 NOTE

                  This Note is one of a duly authorized issue of Notes of the
Company, designated as its Variable Funding Rental Car Asset Backed Notes,
Series 2000-2 (herein called the "Series 2000-2 Notes"), all issued under (i) an
Amended and Restated Base Indenture, dated as of December 1, 1996 (such Base
Indenture, as the same may be amended, supplemented or otherwise modified from
time to time in accordance with the terms thereof, is herein called the "Base
Indenture"), among the Company, Budget Group, Inc., a Delaware corporation
formerly known as Team Rental Group, Inc. ("Budget"), as servicer and as holder
of the Budget Interest, and Bankers Trust Company, a New York banking
corporation, as trustee (the "Trustee"), and (ii) a Series 2000-2 Supplement,
dated as of June 29, 2000 (the "Series 2000-2 Supplement"), among the Company,
Budget and the Trustee. The Base Indenture and the Series 2000-2 Supplement are
referred to herein as the "Indenture". The Series 2000-2 Note is subject to all
terms of the Indenture. All terms used in this Series 2000-2 Note that are
defined in the Indenture, as amended, supplemented or otherwise modified from
time to time in accordance with the terms thereof, shall have the meanings
assigned to them in or pursuant to the Indenture, as so amended, supplemented or
otherwise modified.

                  The Series 2000-2 Note, and all other Notes included in a
Group III Series of Notes, are and will be equally and ratably secured by the
Group III Collateral, and the Series 2000-2 Note is and will be equally and
ratably secured by the Series 2000-2 Collateral, in each case pledged as
security therefor as provided in the Indenture and the Series 2000-2 Supplement.

                  "Distribution Date" means the 25th day of each month, or, if
any such date is not a Business Day, the next succeeding Business Day,
commencing July 25, 2000.

                  As described above, the entire unpaid principal amount of this
Series 2000-2 Note shall be due and payable on the Series 2000-2 Termination
Date. Notwithstanding the foregoing, if an Amortization Event, Liquidation Event
of Default or Series 2000-2 Limited Liquidation Event of Default shall have
occurred and be continuing then, in certain circumstances, principal on the
Series 2000-2 Note may be paid earlier, as described in the Indenture. All
principal payments on the Series 2000-2 Note shall be made pro rata to the
Series 2000-2 Noteholders entitled thereto.

                  Payments of interest on this Series 2000-2 Note due and
payable on each Distribution Date, together with the installment of principal
then due, if any, and any payments of principal made on any Business Day in
respect of any Decreases, to the extent not in full payment of this Series
2000-2 Note, shall be made by wire transfer to the Holder of record of this
Series 2000-2 Note (or any predecessor Series 2000-2 Note) on the Note Register
as of the close of business on each Record Date. Any reduction in the principal
amount of this Series 2000-2 Note (or any predecessor Series 2000-2 Note)
effected by any payments made on any date shall be binding upon all future
Holders of this Series 2000-2 Note and of any Series 2000-2 Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not

                                      A-5
<PAGE>   52

noted thereon. Final payment of principal (together with any accrued and unpaid
interest) on this Series 2000-2 Note will be paid to the Series 2000-2
Noteholder only upon presentation and surrender of this Series 2000-2 Note at
the Corporate Trust Office for cancellation by the Trustee.

                  The Company shall pay interest on overdue installments of
interest at the Series 2000-2 Note Rate to the extent lawful.

                  As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Series 2000-2 Note may be
registered on the Note Register upon surrender of this Series 2000-2 Note for
registration of transfer at the office or agency designated by the Company
pursuant to the Indenture, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar
duly executed by the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Series 2000-2 Notes of authorized denominations
and in the same aggregate principal amount will be issued to the designated
transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Series 2000-2 Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

                  Each Series 2000-2 Noteholder, by acceptance of the Series
2000-2 Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Trustee, the Company or
Budget on the Series 2000-2 Note or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Trustee, the
Company or Budget in its individual capacity, (ii) any owner of a beneficial
interest in the Company or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of the Trustee, the Company or Budget in its
individual capacity, any holder of a beneficial interest in the Company, Budget
or the Trustee or of any successor or assign of the Trustee or Budget in its
individual capacity, except (a) as any such Person may have expressly agreed and
(b) any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Company for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Series 2000-2 Note, subject to Section 13.17 of the Base Indenture.

                  Each Series 2000-2 Noteholder, by acceptance of the Series
2000-2 Note, covenants and agrees that by accepting the benefits of the
Indenture that such Series 2000-2 Noteholder will not for a period of one year
and one day following payment in full of the Series 2000-2 Note institute
against the Company, or join in any institution against the Company of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under any United States Federal or state bankruptcy or similar law in connection
with any obligations relating to the Series 2000-2 Note, the Indenture or the
Related Documents.

                                      A-6
<PAGE>   53

                  Prior to the due presentment for registration of transfer of
this Series 2000-2 Note, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name the Series 2000-2 Note (as of
the day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
the Series 2000-2 Note be overdue, and neither the Company, the Trustee nor any
such agent shall be affected by notice to the contrary.

                  It is the intent of the Company and each Series 2000-2
Noteholder that, for Federal, state and local income and franchise tax purposes
only, the Series 2000-2 Note will evidence indebtedness of the Company secured
by the Collateral. Each Series 2000-2 Noteholder, by the acceptance of the
Series 2000-2 Note, agrees to treat the Series 2000-2 Note for Federal, state
and local income and franchise tax purposes as indebtedness of the Company.

                  The Indenture permits in certain circumstances, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the
Series 2000-2 Note under the Indenture at any time by the Company with the
consent of the Holders of the Series 2000-2 Note representing more than 50% in
principal amount of the Outstanding Series 2000-2 Note which are affected by
such amendment or modification. The Indenture also contains provisions
permitting the Holders of Series 2000-2 Note representing specified percentages
of the Outstanding Series 2000-2 Note, on behalf of the Holders of the Series
2000-2 Note, to waive compliance by the Company with certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder
of the Series 2000-2 Note (or any predecessor Series 2000-2 Note) shall be
conclusive and binding upon such Holder and upon all future Holders of the
Series 2000-2 Note and of the Series 2000-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon the Series 2000-2 Note. The Indenture
also permits the Trustee to amend or waive certain terms and conditions set
forth in the Indenture without the consent of Holders of the Series 2000-2 Note.

                  The term "Company" as used in this Series 2000-2 Note includes
any successor to the Company under the Indenture.

                  The Series 2000-2 Note is issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations set
forth therein.

                  The Series 2000-2 Note and the Indenture shall be construed in
accordance with the law of the State of New York, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
law.

                                      A-7
<PAGE>   54

                  No reference herein to the Indenture and no provision of the
Series 2000-2 Note or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
interest on the Series 2000-2 Note at the times, place, and rate, and in the
coin or currency herein prescribed, subject to any duty of the Company to deduct
or withhold any amounts as required by law, including any applicable U.S.
withholding taxes.

                                      A-8
<PAGE>   55

                             INCREASES AND DECREASES
<TABLE>
<CAPTION>

                 UNPAID                                                SERIES
    DATE       PRINCIPAL      INCREASE       DECREASE       TOTAL      2000-2     INTEREST PERIOD    NOTATION
                 AMOUNT                                               NOTE RATE   (IF APPLICABLE)    MADE BY
==============================================================================================================
    <S>        <C>            <C>            <C>            <C>       <C>         <C>                <C>

</TABLE>

                                      A-9
<PAGE>   56

                                   ASSIGNMENT

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

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

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

the within Series 2000-2 Note and all rights thereunder, and hereby irrevocably
constitutes and appoints ___________, attorney, to transfer said Series 2000-2
Note on the books kept for registration thereof, with full power of
substitution in the premises.

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

---------------
*/ NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Series 2000-2 Note in
every particular, without alteration, enlargement or any change whatsoever.

                                      A-10
<PAGE>   57

                                                                       EXHIBIT B
                                                                              TO
                                                        Series 2000-2 SUPPLEMENT

                         List of Approved Manufacturers

         Ford Motor Company
         Saab Cars USA, Inc.
         Toyota Motor Sales USA, Inc.<PAGE>   1

                       TEAM FLEET FINANCING CORPORATION,
                                   AS LESSOR

                              BUDGET GROUP, INC.,
                                  AS GUARANTOR

                        BUDGET RENT A CAR SYSTEMS, INC.

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

                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                   GROUP III

                           Dated as of June 29, 2000

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

<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                       PAGE

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

2.  GENERAL AGREEMENT...............................................................................................      3
       1.1  Leasing of Group III Vehicles...........................................................................      5
       1.2  Right of Lessees to Act as Lessor's Agent...............................................................      7
       1.3  Payment of Capitalized Cost by Lessor...................................................................      7
       1.4  Non-liability of Lessor.................................................................................      8
       1.5  Conditions Precedent....................................................................................      8

3.  TERM............................................................................................................     13
       1.1  Vehicle Term: Group III Repurchase Vehicles.............................................................     13
       1.2  Vehicle Term: Group III Non-Repurchase Vehicles.........................................................     14
       1.3  The "Lease Commencement Date"...........................................................................     14

2.  RENT AND CHARGES................................................................................................     15
       2.1  Payment of Rent.........................................................................................     15
       2.2  Payment of Monthly Supplemental Payments................................................................     15
       2.3  Payment of Supplemental Rent............................................................................     15
       2.4  Payment of Termination Payments, Casualty Payments, and Late Return Payments............................     15
       2.5  Late Payment............................................................................................     15
       2.6  Prepayments.............................................................................................     15

3.  INSURANCE.......................................................................................................     15
       3.1  Personal Injury and Damage..............................................................................     16
       3.2  Delivery of Certificate of Insurance....................................................................     16
       3.3  Changes in Insurance Coverage...........................................................................     16

4.  CASUALTY OBLIGATION.............................................................................................     17
       4.1  Casualty................................................................................................     17

5.  VEHICLE USE.....................................................................................................     17

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

7.  MAINTENANCE AND REPAIRS.........................................................................................     18

8.  VEHICLE WARRANTIES..............................................................................................     19

9.  VEHICLE RETURN GUIDELINES.......................................................................................     19
       9.1  Vehicle Turn-in-Condition...............................................................................     19
</TABLE>

                                      -i-
<PAGE>   3

<TABLE>

<S>                                                                                                                      <C>
       9.2  Return..................................................................................................     19
       9.3  Termination Payments....................................................................................     20
       9.4  Repurchase Price Interest...............................................................................     20

10.  DISPOSITION PROCEDURE..........................................................................................     20

11.  ODOMETER DISCLOSURE REQUIREMENT................................................................................     20

13.  GENERAL INDEMNITY..............................................................................................     22
       13.1  Indemnity by the Lessees...............................................................................     22
       13.2  Reimbursement Obligation by the Lessee Group...........................................................     23
       13.3  Defense of Claims......................................................................................     23

14.  ASSIGNMENT.....................................................................................................     24
       14.1  Right of the Lessor to Assign this Agreement...........................................................     24
       14.2  Limitations on the Right of the Lessee to Assign this Agreement........................................     24

15.  DEFAULT AND REMEDIES THEREFOR..................................................................................     24
       15.1  Lease Events of Default................................................................................     24
       15.2  Effect of Lease Event of Default.......................................................................     26
       15.3  Rights of Lessor Upon Lease Event of Default, Liquidation Event of Default or Limited
       Liquidation Event of Default.................................................................................     26
       15.4  Rights of Trustee Upon Liquidation Event of Default, Limited Liquidation Event of Default and
       Non-Performance of Certain Covenants.........................................................................     27
       15.5  Measure of Damages.....................................................................................     28
       15.6  Application of Proceeds................................................................................     29

16.  MANUFACTURER EVENTS OF DEFAULT.................................................................................     30

17.  LESSEE PARTIAL WIND-DOWN EVENTS................................................................................     30

18.  ELIGIBILITY WAIVER EVENTS......................................................................................     31

19.  CERTIFICATION OF TRADE OR BUSINESS USE.........................................................................     31

20.  SURVIVAL.......................................................................................................     31

21.  ADDITIONAL LESSEES.............................................................................................     32

22.  GUARANTY.......................................................................................................     33
       22.1  Guaranty...............................................................................................     33
       22.2  Scope of Guarantor's Liability.........................................................................     33
       22.3  Lessor's Right to Amend this Agreement, Etc............................................................     34
       22.4  Waiver of Certain Rights by Guarantor..................................................................     34
</TABLE>

                                      -ii-
<PAGE>   4

<TABLE>

<S>                                                                                                                      <C>
       22.5  Lessees' Obligations to Guarantor and Guarantor's Obligations to Lessees Subordinated..................     35
       22.6  Guarantor to Pay Lessor's Expenses.....................................................................     36
       22.7  Reinstatement..........................................................................................     37
       22.8  Pari Passu Indebtedness................................................................................     37

23.  RIGHTS OF LESSOR ASSIGNED TO TRUSTEE...........................................................................     37

24.  RIGHT OF LESSEE TO DELEGATE RIGHTS AND OBLIGATIONS HEREUNDER TO GUARANTOR......................................     38

25.  MODIFICATION AND SEVERABILITY..................................................................................     38

26.  CERTAIN REPRESENTATIONS AND WARRANTIES.........................................................................     39
       26.1  Due Organization, Authorization, etc...................................................................     39
       26.2  Financial Information; Financial Condition.............................................................     39
       26.3  Litigation.............................................................................................     40
       26.4  Liens..................................................................................................     40
       26.5  Employee Benefit Plans.................................................................................     40
       26.6  Investment Company Act.................................................................................     41
       26.7  Regulations G, T, U and X..............................................................................     41
       26.8  Business Locations; Trade Names; Principal Places of Business Locations................................     41
       26.9  Taxes..................................................................................................     41
       26.10 Governmental Authorization.............................................................................     41
       26.11 Compliance with Laws...................................................................................     42
       26.12 Eligible Vehicles......................................................................................     42
       26.13 Supplemental Documents True and Correct................................................................     42
       26.14 Accuracy of Information................................................................................     42

27.  CERTAIN AFFIRMATIVE COVENANTS..................................................................................     42
       27.1  Corporate Existence; Foreign Qualification.............................................................     43
       27.2  Books, Records and Inspections.........................................................................     43
       27.3  Insurance..............................................................................................     43
       27.4  Repurchase Programs....................................................................................     43
       27.5  Reporting Requirements.................................................................................     44
       27.6  Taxes and Liabilities..................................................................................     46
       27.7  Compliance with Laws...................................................................................     47
       27.8  Maintenance of Separate Existence......................................................................     47
       27.9  Trustee as Lienholder..................................................................................     47
       27.10 Maintenance of Credit Enhancement......................................................................     47

28.  CERTAIN NEGATIVE COVENANTS.....................................................................................     47
       28.1  Mergers, Consolidations................................................................................     47
       28.2  Other Agreements.......................................................................................     48
</TABLE>

                                      -iii-
<PAGE>   5

<TABLE>

<S>                                                                                                                      <C>
       28.3  Liens..................................................................................................     48
       28.4  Use of Vehicles........................................................................................     48
       28.5  Restrictions on Distributions..........................................................................     48

29.  BANKRUPTCY PETITION AGAINST LESSOR.............................................................................     49

30.  SUBMISSION TO JURISDICTION.....................................................................................     49

31.  GOVERNING LAW..................................................................................................     49

32.  JURY TRIAL.....................................................................................................     50

33.  NOTICES........................................................................................................     50

34.  LIABILITY......................................................................................................     51

35.  TITLE TO REPURCHASE PROGRAMS IN LESSOR.........................................................................     51

36.  HEADINGS.......................................................................................................     51

37.  EXECUTION IN COUNTERPARTS......................................................................................     51

38.  EFFECTIVENESS..................................................................................................     51
</TABLE>

                                      -iv-

<PAGE>   6

ANNEX A                OPERATING LEASE TERMS
ANNEX B                FINANCING LEASE TERMS

SCHEDULE 1             LESSEES ON DATE OF EXECUTION OF LEASE
SCHEDULE 27.8          BUSINESS LOCATIONS
ATTACHMENT A-1         SCHEDULE OF INITIAL FLEET
ATTACHMENT A-2         GROUP III VEHICLE ACQUISITION SCHEDULE
ATTACHMENT B           FORM OF POWER OF ATTORNEY
ATTACHMENT C           FORM OF JOINDER IN LEASE
ATTACHMENT D           FORM OF BILL OF SALE

                                      -v-

<PAGE>   7

                MASTER MOTOR VEHICLE LEASE AGREEMENT - GROUP III

         This Master Motor Vehicle Lease Agreement - Group III (this
"Agreement"), dated as of June 29, 2000 by and among TEAM FLEET FINANCING
CORPORATION, a Delaware corporation ("Lessor"), BUDGET RENT A CAR SYSTEMS, INC.
("Budget Systems"), a Delaware corporation, and those direct or indirect
Subsidiaries (the "Budget Subsidiaries") of Budget Group, Inc. ("Budget"), a
Delaware corporation formerly known as Team Rental Group, Inc. ("Team"), those
Affiliates (other than the Budget Subsidiaries) and non-Affiliates, (such
Affiliates and non-Affiliates the "Non-Budget Lessees") of Budget that are
listed on Schedule 1 hereto and those that become party to this Agreement
pursuant to the provisions of Section 23 hereof (individually, each Budget
Subsidiary and each Non-Budget Lessee, a "Lessee" and, collectively, the
"Lessees"), and BUDGET GROUP, INC., as guarantor (Budget in such capacity, the
"Guarantor"; the Guarantor, together with the Lessees, is from time to time
referred to as the "Lessee Group").

                              W I T N E S S E T H:

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

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

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

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

<PAGE>   8

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

         1.       DEFINITIONS. Certain capitalized terms used (including the
preamble and the recitals hereto) shall have the meanings ascribed to such
terms in (a) the Definitions List (the "Definitions List") attached as Schedule
1 to the Amended and Restated Base Indenture, dated as of December 1, 1996,
among the Lessor, Team (now known as Budget) and Bankers Trust Company, a New
York banking corporation, as trustee, as such Definitions List may be amended
or modified from time to time in accordance with the provisions of the
Indenture, and (b) each Supplement to the Base Indenture relating to a Series
of Notes identified in such Supplement as being a Group III Series of Notes.
Unless the context otherwise requires, terms defined in both the Base Indenture
and one or more of such Series Supplements shall have the meanings assigned to
such terms in the applicable Series Supplements.

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

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

                  (i)      the rights of such Lessee under this Agreement, as
the same may be amended, modified or supplemented from time to time in
accordance with its terms, and any other agreements related to or in connection
with this Agreement to which such Lessee is a

                                      -3-
<PAGE>   9

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

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

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

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

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

                                      -4-
<PAGE>   10

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

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

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

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

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

         (d)      The Lessees and the Lessor acknowledge that concurrently with
the execution and delivery of this Agreement, the Lessees specified on Schedule
1 hereto have made available to the

                                      -5-
<PAGE>   11

Lessor Group III Vehicle Orders to lease Vehicles currently owned by the Lessor
pursuant to this Agreement, together with the required Group III Vehicle
Acquisition Schedules or Refinancing Schedule, as the case may be, in respect
of such Group III Vehicle Orders.

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

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

                  (ii)     the original Certificate of Title for each Auction
         Acquired Vehicle together with a completed application to retitle such
         Auction Acquired Vehicle in the name of the Lessor (in the case of
         Lessor-Owned Vehicles, Hawaii Vehicles and Texas Vehicles) or such
         Lessee (in the case of Financed Vehicles other than Hawaii Vehicles
         and Texas Vehicles) and to have noted thereon the Trustee's security
         interest in such Auction Acquired Vehicle pursuant to the Indenture;
         and

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

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

                                      -6-
<PAGE>   12

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

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

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

                                      -7-
<PAGE>   13

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

         2.4      Non-liability of Lessor. The Lessor shall not be liable to any
of the Lessees for any failure or delay in obtaining Group III Vehicles or
making delivery thereof. AS BETWEEN THE LESSOR AND EACH LESSEE, ACCEPTANCE FOR
LEASE OF THE GROUP III VEHICLES SHALL CONSTITUTE SUCH LESSEE'S ACKNOWLEDGMENT
AND AGREEMENT THAT SUCH LESSEE HAS FULLY INSPECTED SUCH GROUP III VEHICLES,
THAT THE GROUP III VEHICLES ARE IN GOOD ORDER AND CONDITION AND ARE OF THE
MANUFACTURE, DESIGN, SPECIFICATIONS AND CAPACITY SELECTED BY THE LESSEE, THAT
SUCH LESSEE IS SATISFIED THAT THE SAME ARE SUITABLE FOR THIS USE AND THAT THE
LESSOR IS NOT A MANUFACTURER, AN AGENT OF A MANUFACTURER, OR OTHERWISE ENGAGED
IN THE SALE OR DISTRIBUTION OF GROUP III VEHICLES, AND HAS NOT MADE AND DOES
NOT HEREBY MAKE ANY REPRESENTATION, WARRANTY OR COVENANT, EXPRESS OR IMPLIED,
WITH RESPECT TO MERCHANTABILITY, CONDITION, QUALITY, DURABILITY OR SUITABILITY
OF THE VEHICLE IN ANY RESPECT OR IN CONNECTION WITH OR FOR THE PURPOSES OR USES
OF SUCH LESSEE, OR ANY WARRANTY THAT THE LEASED VEHICLES WILL SATISFY THE
REQUIREMENTS OF ANY LAW OR ANY CONTRACT SPECIFICATION, OR ANY OTHER
REPRESENTATION, WARRANTY OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR
IMPLIED, WITH RESPECT THERETO AND AS BETWEEN THE LESSOR AND SUCH LESSEE, SUCH
LESSEE AGREES TO BEAR ALL SUCH RISKS AT ITS SOLE COST AND EXPENSE. EACH LESSEE
SPECIFICALLY WAIVES ALL RIGHTS TO MAKE CLAIMS AGAINST THE LESSOR AND ANY LEASED
VEHICLE FOR BREACH OF ANY WARRANTY OF ANY KIND WHATSOEVER AND, AS TO THE
LESSOR, SUCH LESSEE LEASES THE VEHICLES "AS IS." The Lessor shall not be liable
for any failure or delay in delivering any Vehicle ordered for lease pursuant
to this Agreement, or for any failure to perform any provision hereof,
resulting from fire or other casualty, natural disaster, riot, strike or other
labor difficulty, governmental regulation or restriction, or any cause beyond
the Lessor's direct control. IN NO EVENT SHALL THE LESSOR BE LIABLE FOR ANY
INCONVENIENCES, LOSS OF PROFITS OR ANY OTHER CONSEQUENTIAL, INCIDENTAL OR
SPECIAL DAMAGES, WHATSOEVER OR HOWSOEVER CAUSED, WHETHER RESULTING FROM ANY
DEFECT IN OR ANY THEFT, DAMAGE, LOSS OR FAILURE OF ANY VEHICLE, OR OTHERWISE
AND THERE SHALL BE NO ABATEMENT OF RENT BECAUSE OF THE SAME.

         2.5      Conditions Precedent. The agreement of the Lessor to make
available any Master Lease Advance for the acquisition of any Lessor-Owned
Vehicle for lease to a Lessee and to

                                      -8-
<PAGE>   14

make available any Master Lease Advance for the acquisition of any Texas
Vehicles and Hawaii Vehicles or the refinancing of any Refinanced Vehicle for
lease to a Lessee, is subject to the terms and conditions of the Indenture and
to the following conditions precedent as of the Vehicle Lease Commencement Date
for such Vehicle:

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

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

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

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

                           (iv)     the quotient (expressed as a percentage)
                  obtained by dividing (x) the aggregate Net Book Value of all
                  Group III Repurchase Vehicles manufactured by either of Mazda
                  and Nissan and leased under this Agreement as of such date
                  (after giving effect to the inclusion of such Vehicle under
                  this Agreement) by (y) the greater of (A) the Aggregate Asset
                  Amount as of such date (after giving effect to the inclusion
                  of such Vehicle under this Agreement) and (B) the sum of the
                  Group

                                      -9-
<PAGE>   15

                  III Invested Amount as of such date plus the available
                  subordinated amounts for all Group III Series of Notes as of
                  such date, shall not exceed the Maximum Mazda/Nissan
                  Percentage for any Group III Series of Notes;

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

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

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

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

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

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

                           (ii)     a report of the results of a search of the
                  appropriate records of the county (as applicable) and state
                  in which each such Lessee's principal place of business is
                  located, which shall show no Liens or other security
                  interests (other than Permitted Liens) with respect to such
                  Vehicles and the related Repurchase

                                     -10-
<PAGE>   16

                  Programs or, in the event that such search reveals any
                  non-permitted Lien or security interest, there shall be
                  delivered to the Lessor and the Trustee a termination of such
                  Lien or security interest together with appropriate UCC
                  termination statements or UCC partial releases thereof;

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

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

                           (v)      UCC termination statements terminating, or
                  UCC partial releases releasing, any security interests and
                  other liens (other than Permitted Liens) in favor of any
                  Person with respect to each Vehicle in the Initial Fleet
                  identified in such schedule and any related Repurchase
                  Programs;

                           (vi)     delivery to the Lessor for filing in the
                  appropriate filing office fully executed UCC-1 Financing
                  Statements necessary to perfect (if not already perfected)
                  the interests of the Trustee in such Refinanced Vehicles and
                  Eligible Receivables;

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

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

                           (ix)     an Officer's Certificate stating that all
                  the conditions precedent under this Agreement to the leasing
                  of such Refinanced Vehicles and financing of such Eligible
                  Receivables under this Agreement have been satisfied,
                  including a representation that each such receivable is an
                  Eligible Receivable and that the Lien

                                     -11-
<PAGE>   17

                  of the Trustee (or a Nominee) has been noted on the
                  Certificate of Title for each such Vehicle or such other
                  actions to cause the Trustee's Lien to be a perfected first
                  Lien have been taken by the Servicer.

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

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

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

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

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

                  (g)      Repurchase Vehicles. If such Vehicle is to be leased
         as a Group III Repurchase Vehicle, the Lessor (if such Vehicle is a
         Lessor-Owned Vehicle, a Texas Vehicle or a Hawaii Vehicle) or the
         applicable Lessee (if such Vehicle is a Financed Vehicle other than a
         Texas Vehicle or a Hawaii Vehicle) shall have delivered to the Trustee
         (i) a fully executed Assignment Agreement covering such Vehicle, (ii)
         the related Repurchase Program (which shall be an Eligible Repurchase
         Program), and (iii) any other Group III Collateral relating to such
         Vehicle.

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

                                     -12-
<PAGE>   18

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

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

         30       TERM.

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

                                     -13-
<PAGE>   19

III Repurchase Vehicle from the Lessor on the first Due Date after the
expiration of the Maximum Term for an amount equal to the Vehicle Purchase
Price with respect to such Group III Repurchase Vehicle, or (y) redesignate
such Group III Vehicle as a Group III Non-Repurchase Vehicle in accordance with
Section 14 hereof. Each Lessee will pay the equivalent of the Rent for the
Minimum Term for Group III Repurchase Vehicles which are Lessor-Owned Vehicles
and are returned before the Minimum Term, regardless of actual usage, unless a
Vehicle is a Casualty which will be treated in accordance with Section 6 hereof
or unless the Lessor immediately leases such Group III Repurchase Vehicle to
another Lessee under this Agreement or to a lessee under another Lease relating
to another Series under the Base Indenture.

         3.2      Vehicle Term: Group III Non-Repurchase Vehicles. The "Vehicle
Lease Commencement Date" for each Group III Non-Repurchase Vehicle shall mean
the day referenced as such in the Group III Vehicle Acquisition Schedule or
Refinancing Schedule with respect to such Group III Non-Repurchase Vehicle but
in no event beyond the date that funds are expended by the Lessor to acquire
such Group III Non-Repurchase Vehicle. The "Vehicle Term" with respect to each
Group III Non-Repurchase Vehicle shall extend from the Vehicle Lease
Commencement Date through the earliest of (i) if the Group III Non-Repurchase
Vehicle is sold to a third party, the date such Vehicle is sold to such third
party and funds in respect of such sale are received by the Trustee in the
Group III Collection Account (from such third party or from any member of the
Lessee Group on behalf of such third party) and such funds equal or exceed the
Non-Repurchase Vehicle Value of such Group III Non-Repurchase Vehicle, (ii) if
the Group III Non-Repurchase Vehicle becomes a Casualty, the date funds in the
mount of the Non-Repurchase Vehicle Value thereof are received by the Trustee
in the Group III Collection Account from the applicable Lessee, (iii) the date
that the Group III Non-Repurchase Vehicle is purchased by the applicable Lessee
pursuant to Paragraph 6 or 7 of Annex A to this Agreement and the
Non-Repurchase Vehicle Value with respect to such purchase (and any unpaid
Monthly Base Rent and Monthly Variable Rent with respect to such Group III
Non-Repurchase Vehicle) is received by the Trustee and (iv) the maximum vehicle
lease term of the Operating Lease and the Financing Lease, as applicable, as
specified in, respectively, paragraph 5 of each of Annex A and Annex B to this
Agreement (the earliest of such four dates being referred to as the "Vehicle
Lease Expiration Date"); provided, however, that the Lessees shall use
commercially reasonable efforts to dispose of (a) each Group III Non-Repurchase
Vehicle, within twenty-four (24) months after the date of the original new
dealer invoice for such Vehicle or, where no such invoice exists, the date such
Vehicle was first put into service, or (b) with respect to any Vehicle, such
longer period with respect to which Rating Agency Confirmation has been
obtained or, if no Rating Agency is then currently requested to rate any Group
III Series of Notes, approved by Noteholders of the Group III Series of Notes
holding more than 50% of the aggregate Invested Amounts of all outstanding
Group III Series (the "Majority Group III Noteholders") (such period described
in clauses (a), (b), (c) and (d) above, the "Non-Repurchase Maximum Term"). If
a Group III Vehicle's age is unknown as of its Vehicle Lease Commencement Date,
such age (in months) shall be the lesser of (i) the number obtained by dividing
the number of miles on the odometer of such Group III Vehicle at the Vehicle
Lease Commencement Date by 1500 and (ii) the number of months in the period
commencing on September 1 of the calendar year prior to the model year of

                                     -14-
<PAGE>   20

such Group III Vehicle through the Vehicle Lease Commencement Date for such
Group III Vehicle.

         3.3      The "Lease Commencement Date" shall mean the earlier of (i)
the date of the issuance of the Series 2000-2 Notes as the first Group III
Series of Notes or (ii) the date of the Vehicle Lease Commencement Date for the
first Vehicle leased by a Lessee hereunder. The "Lease Expiration Date" shall
mean the later of (i) the date of the payment in full of all Series of Notes
included in the Group III Series of Notes and all outstanding Carrying Charges
and (ii) the Vehicle Lease Expiration Date for the last Group III Vehicle
leased by a Lessee hereunder. The "Term" of this Agreement shall mean the
period commencing on the Lease Commencement Date and ending on the Lease
Expiration Date.

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

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

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

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

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

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

                                     -15-
<PAGE>   21

         4.6      Prepayments. To the extent provided in Paragraph 9(b)(iii) of
Annex A and Paragraph 6(d) of Annex B, a Lessee may prepay to the Lessor, in
whole or in part, the Rent or other payments accrued during the Related Month
with respect to any Group III Vehicles leased by such Lessee under this
Agreement.

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

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

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

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

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

                                     -16-
<PAGE>   22

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

         60       CASUALTY OBLIGATION.

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

         70       VEHICLE USE. So long as no Lease Event of Default, Liquidation
Event or Limited Liquidation Event of Default has occurred and so long as no
Lessee Partial Wind-Down Event has occurred with respect to the relevant Lessee
(subject, however, to Paragraph 7 of Annex A), such Lessee may use Group III
Vehicles leased hereunder in the regular course of business of such Lessee.
Such use shall be confined primarily to the United States, with limited use in
Canada and Mexico; provided, however, that the principal place of business or
rental office of such Lessee with respect to the Group III Vehicles is located
in the United States. The relevant Lessee shall promptly and duly execute,
deliver, file and record all such documents, statements, filings and
registrations, and take such further actions as the Lessor, the Servicer or the
Trustee shall from time to time reasonably request in order to establish,
perfect and maintain the Lessor's title to and interest in the Group III
Vehicles and the related Certificates of Title as against such Lessee or any
third party in any applicable jurisdiction and to establish, perfect and
maintain the Trustee's Lien on the Group III Vehicles and the related
Certificates of Title as a perfected first Lien in any applicable jurisdiction.
Each Lessee may, at the relevant Lessee's sole expense, change the place of
principal location of any Group III Vehicles. Notwithstanding the foregoing, no
change of location shall be undertaken unless and until (i) all actions
necessary to maintain the Lien of the Trustee on such Group III Vehicles and
the related Certificates of Title shall have been taken and (ii) all legal
requirements applicable to such Group III Vehicles shall have been met or
obtained. Following a Lease Event of Default, Lessee Partial Wind-Down Event,
or, with respect to the Group III Repurchase Vehicles, a Manufacturer Event of
Default, and upon the Lessor's request, the relevant Lessee shall advise the
Lessor in writing where all Group III Vehicles leased by such Lessee as of such
date are principally located. The Lessee shall not knowingly use any Group III

                                     -17-
<PAGE>   23

Vehicles, or knowingly permit the same to be used, for any unlawful purpose.
Each Lessee shall use reasonable precautions to prevent loss or damage to Group
III Vehicles. Each Lessee shall comply with all applicable statutes, decrees,
ordinances and regulations regarding acquiring, titling, registering, leasing,
insuring and disposing of Group III Vehicles and shall take reasonable steps to
ensure that drivers of such Group III Vehicles are duly licensed to drive in
accordance with applicable law. Each Lessee and the Lessor agree that each
Lessee shall perform, at its own expense, such Vehicle preparation and
conditioning services with respect to Group III Vehicles purchased by the
Lessor from the Manufacturers as are customary. The Lessor, the Trustee or any
authorized representative of the Lessor or the Trustee may during reasonable
business hours from time to time, without disruption of each Lessee's business,
subject to applicable law, inspect Group III Vehicles and registration
certificates, Certificates of Title and related documents covering Group III
Vehicles wherever the same shall be located. Group III Vehicles leased
hereunder may be subleased by the applicable Lessee to any other Lessee listed
on Schedule 1 to this Agreement or added as a Lessee pursuant to Section 23 of
this Agreement; provided, however, that neither the original Lessee nor the
Guarantor shall be released from any of its obligations in respect of any Group
III Vehicle so subleased.

         80       REGISTRATION; LICENSE; TRAFFIC SUMMONSES; PENALTIES AND FINES.
The Lessee Group, at its expense, shall be responsible for proper registration
and licensing of Group III Vehicles, and titling of Group III Vehicles in the
name of the Lessor (in the case of Lessor-Owned Vehicles, Texas Vehicles and
Hawaii Vehicles) or the applicable Lessee (in the case of all Financed Vehicles
other than Texas Vehicles and Hawaii Vehicles), in each case with the Lien of
the Trustee noted thereon, and, where required, shall have Group III Vehicles
inspected by any appropriate Governmental Authority; provided, however, that
notwithstanding the foregoing, all Certificates of Title shall at all times
remain in the custody of the Servicer in accordance with the provisions of the
Base Indenture. The Lessee leasing such Group III Vehicle shall be responsible
for the payment of all registration fees, title fees, license fees, traffic
summonses, penalties, judgments and fines incurred with respect to any Group
III Vehicle during the Vehicle Term for such Group III Vehicle or imposed
during the Vehicle Term for such Group III Vehicle by any Governmental
Authority or any court of law or equity with respect to Group III Vehicles in
connection with the relevant Lessee's operation of Group III Vehicles, and the
Lessor, in its discretion, may, but shall not be obligated to, pay any such
amounts on the Lessee's behalf if the Lessee's failure to pay the same
interferes with the free transferability or saleability of such Group III
Vehicle or impairs the ability to transfer clear title to such Group III
Vehicle; and any such amounts paid by the Lessor will be reimbursed within 30
days of the Lessor notifying such Lessee of such payment. The Lessor agrees to
execute a power of attorney in the form of Attachment B hereto (each, a "Power
of Attorney"), and such other documents as may be necessary in order to allow
the Lessees to title, register and dispose of the Lessor-Owned Vehicles and the
Texas Vehicles and Hawaii Vehicles; provided, however, that possession of all
Certificates of Title shall at all times remain with the applicable Servicer in
accordance with the provisions of the Indenture and each Lessee acknowledges
and agrees that, with respect to the Lessor-Owned Vehicles, it has no right,
title or interest in or with respect to any Certificate of

                                     -18-
<PAGE>   24

Title. Notwithstanding anything herein to the contrary, the Lessor may
terminate such Power of Attorney as provided in Section 19 hereof.

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

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

         110      VEHICLE RETURN GUIDELINES.

         11.1     Vehicle Turn-in-Condition. As used herein "vehicle turn-in
condition" with respect to each Group III Repurchase Vehicle will be determined
in accordance with the related Repurchase Program. Group III Repurchase
Vehicles not meeting the applicable Repurchase Program's vehicle turn-in
condition guidelines will, unless redesignated as Group III Non-Repurchase
Vehicles in accordance with Section 14 hereof, be purchased by the relevant
Lessee in accordance with the Casualty procedure set forth in Section 6.1.

         11.2     Return. Each Lessee will return each Group III Repurchase
Vehicle (other than a Casualty) to the nearest related Manufacturer official
auction or other facility designated by such manufacturer at the relevant
Lessee's sole expense prior to the expiration of the Maximum Term for such
Group III Vehicle. Each Lessee agrees that the Group III Repurchase Vehicles
will be in

                                     -19-
<PAGE>   25

vehicle turn-in condition as specified in the applicable Repurchase Program.
Any rebates or credits applicable to the unexpired term of any license plates
for a Group III Repurchase Vehicle shall inure to the benefit of the relevant
Lessee. Each Lessee agrees to use commercially reasonable efforts to dispose of
each Group III Non-Repurchase Vehicle (a) in a manner most likely to maximize
proceeds from such disposition and consistent with industry practice and (b)
prior to the expiration of the Non-Repurchase Maximum Term for such Group III
Non-Repurchase Vehicle.

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

         11.4     Repurchase Price Interest. The applicable Lessee shall pay to
the Lessor, as part of the Monthly Base Rent, interest accrued at a rate equal
to the VFR on the Repurchase Price of each Group III Repurchase Vehicle for the
period between the Turnback Date for such Group III Vehicle and receipt of such
Repurchase Price by the Lessor from the Manufacturer ("Repurchase Price
Interest"). The provisions of this Section 11.4 will survive the expiration or
earlier termination of the Term.

         120      DISPOSITION PROCEDURE. Each Lessee will comply with the
requirements of law and, with respect to Group III Repurchase Vehicles, the
requirements of the Repurchase Programs in connection with, among other things,
the delivery of Certificates of Title and documents of transfer signed as
necessary in connection with the sale of any Group III Vehicle to a third party
or the return of any Group III Repurchase Vehicle in accordance with an
Eligible Repurchase Program. In addition, with respect to the return of a Group
III Repurchase Vehicle to a Manufacturer or the delivery of a Group III
Repurchase Vehicle to an authorized auction site, the Lessee thereof shall also
deliver a signed Condition Report and signed odometer statement to be submitted
with such Group III Repurchase Vehicle and accepted by the Manufacturer or its
agent at the time of Group III Repurchase Vehicle return or delivery, as
applicable. If a Group III Repurchase Vehicle is not returned to the
Manufacturer and accepted by the Manufacturer, or delivered to (and accepted
by) an authorized auction site, prior to the expiration of the Maximum Term
with respect to such Group III Repurchase Vehicle, the relevant Lessee shall,
unless such Group III Repurchase Vehicle has been redesignated as a Group III
Non-Repurchase Vehicle in accordance with Section 14 hereof, purchase such
Group III Repurchase Vehicle for the appropriate Vehicle Purchase Price and pay
the Lessor such amount (such amount, the "Late

                                     -20-
<PAGE>   26
"Late Return Payment") within fifteen (15) days after the end of the Maximum
Term (together with any Repurchase Price Interest accrued from the last day of
the Maximum Term to the date that such payment is received by the Lessor).

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

         140      REDESIGNATION OF VEHICLES. (a) Upon a Group III Repurchase
Vehicle's becoming ineligible for repurchase by its Manufacturer or for sale in
accordance with applicable Repurchase Program procedures, due to physical
damage, repair charges or accrued mileage, in each case in excess of that
permitted under the related Repurchase Program, or due to any failure or
inability to return such Group III Vehicle to the Manufacturer or the
designated auction site prior to the expiration of the Maximum Term, or due to
any other event or circumstance, the Servicer may designate such Vehicle as a
Group III Non-Repurchase Vehicle if such Group III Vehicle, as a Group III
Non-Repurchase Vehicle, will be an Eligible Non-Repurchase Vehicle and if
either (a) such designation meets the applicable conditions of Section 2.5
hereof or (b) the Noteholders holding the requisite Invested Amount of each
applicable Series of Notes included in the Group III Series of Notes waive, in
each case as and to the extent permitted under the related Series Supplement,
the requirements of Section 2.5 as applied to this Section 14 and all such
other conditions, requirements or restrictions with respect to which a failure
or violation has occurred; provided, in each case, that (x) any additional
Monthly Base Rent due with respect to each such Group III Vehicle, relating to
the decrease, if any, of the Net Book Value of such Group III Vehicle under the
newly applicable Depreciation Schedule, shall be paid by the applicable Lessee
on the next succeeding Due Date, and (y) the minimum level of Enhancement
required under the applicable Series Supplement, after giving effect to such
designation, shall be satisfied on the date of designation.

         (b)      The Servicer may designate a Group III Non-Repurchase Vehicle
as a Group III Repurchase Vehicle if such Group III Vehicle, as a Group III
Repurchase Vehicle, will be an Eligible Repurchase Vehicle and if either (a)
such designation meets the applicable conditions of Section 2.5 hereof or (b)
the Noteholders holding the requisite Invested Amount of each applicable Series
of Notes included in the Group III Series of Notes waive, in each case as and to
the extent permitted under the related Series Supplement, the requirements of
Section 2.5 as applied to this Section 14 and all such other conditions,
requirements or restrictions with respect to which a failure or violation has
occurred; provided, however, that (i) the Capitalized Cost, Net Book Value and
Depreciation Charges with respect to such Vehicle shall be recalculated as of
the date of such redesignation as if such Group III Vehicle were a Group III
Repurchase Vehicle at the time of the initial related Vehicle Lease Commencement
Date, and (ii) the related Manufacturer has acknowledged such designation. Upon
any redesignation of a Vehicle pursuant to this Section 14(b), (x) the Lessor
shall advance to the applicable Manufacturer the difference (if any) between the
original Capitalized Cost of such Vehicle and the Capitalized Cost of such

                                      -21-
<PAGE>   27

Vehicle upon redesignation, to the extent that such amount is then due and
payable to the Manufacturer, which amount shall be deemed to be part of the
Capitalized Cost of such Vehicle and (y) the applicable Lessee shall be entitled
to a credit against the Monthly Base Rent due on the next succeeding Due Date in
an amount equal to the excess (if any) of the Net Book Value of such Vehicle
upon such redesignation over the Net Book Value of such Vehicle immediately
prior to such redesignation.

         150      GENERAL INDEMNITY.

         15.1     Indemnity by the Lessees.1 Indemnity by the Lessees. Each
member of the Lessee Group agrees jointly and severally to indemnify and hold
harmless the Lessor and the Lessor's directors, officers, agents and employees
(collectively, the "Indemnified Persons"), against any and all claims, demands
and liabilities of whatsoever nature and all costs and expenses relating to or
in any way arising out of:

                  15.1.1   the ordering, delivery, acquisition, title on
         acquisition, rejection, installation, possession, titling, retitling,
         registration, re-registration, custody by the Lessee Group of title and
         registration documents, use, nonuse, misuse, operation, deficiency,
         defect, transportation, repair, control or disposition of any Group III
         Vehicle leased hereunder or to be leased hereunder pursuant to a
         request by the relevant Lessee. The foregoing shall include, without
         limitation, any liability (or any alleged liability) of the Lessor to
         any third party arising out of any of the foregoing, including, without
         limitation, all legal fees, costs and disbursements arising out of such
         liability (or alleged liability);

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

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

                                      -22-
<PAGE>   28

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

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

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

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

         15.3     Defense of Claims. Defense of any claim referred to in this
Section 15 for which indemnity may be required shall, at the option and request
of the Indemnified Person, be conducted by the relevant member of the Lessee
Group. The relevant member of the Lessee Group will inform the Indemnified
Person of any such claim and of the defense thereof and will provide copies of
material documents relating to any such claim or defense to such Indemnified
Person upon request. Such Indemnified Person may participate in any such defense
at its own expense provided such participation does not interfere with the
relevant member of the Lessee

                                      -23-
<PAGE>   29

Group's assertion of such claim or defense. The relevant member of the Lessee
Group agrees that no Indemnified Person will be liable to such member of the
Lessee Group for any claim caused directly or indirectly by the inadequacy of
any Group III Vehicle for any purpose or any deficiency or defect therein or the
use or maintenance thereof or any repairs, servicing or adjustments thereto or
any delay in providing or failure to provide such or any interruption or loss of
service or use thereof or any loss of business, all of which shall be the risk
and responsibility of such member of the Lessee Group. The rights and
indemnities of each Indemnified Person hereunder are expressly made for the
benefit of, and will be enforceable by, each Indemnified Person notwithstanding
the fact that such Indemnified Person is either no longer a party to (or
entitled to receive the benefits of) this Agreement, or was not a party to (or
entitled to receive the benefits of) this Agreement at its outset. Except as
otherwise set forth herein, nothing herein shall be deemed to require the
relevant member of the Lessee Group to indemnify the Lessor for any of the
Lessor's acts or omissions which constitute gross negligence or willful
misconduct. This general indemnity shall not affect any claims of the type
discussed above which the relevant member of the Lessee Group may have against
the Manufacturer.

         160      ASSIGNMENT.

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

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

         170      DEFAULT AND REMEDIES THEREFOR.

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

                  17.1.1   Payment Default. There occurs (i) a default in the
         payment of any Monthly Base Rent and the continuance thereof for a
         period of two Business Days, (ii) a default in the payment of any
         Monthly Variable Rent, Monthly Finance Rent, Monthly Supplemental

                                      -24-
<PAGE>   30

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

                  17.1.2   Unauthorized Assignment. Any unauthorized assignment
         or transfer of this Agreement by any member of the Lessee Group occurs;

                  17.1.3   Breach of Contract. Subject to the provisions of
         Section 19 hereof regarding Lessee Partial Wind-Down Events, the
         failure of the Lessee Group to observe or perform any other material
         covenant, condition, agreement or provision hereof (other than one
         described in Section 17.1.1 or 17.1.2), including, but not limited to,
         usage and maintenance, and such default continues for more than thirty
         (30) days after the earlier to occur of (a) the date a Responsible
         Officer of the Lessee obtains knowledge of such default or (b) the
         date written notice thereof is delivered by the Lessor or the Trustee
         to such Lessee; provided, however, that if such failure cannot
         reasonably be cured within such thirty (30) day period, no Lease Event
         of Default shall result therefrom so long as, within such thirty (30)
         day period, such Lessee (i) commences to cure same, (ii) delivers
         written notice to the Lessor and the Trustee notifying the Lessor and
         the Trustee of such default and setting forth the steps such Lessee
         intends to take in order to cure such default and (iii) thereafter
         diligently prosecutes such cure to completion and completely cures
         such default on or before the fiftieth (50th) day after the earlier of
         the dates set forth in clause (a) and clause (b) above;

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

                  17.1.5   Event of Bankruptcy. Subject to the provisions of
         Section 19 hereof regarding Lessee Partial Wind-Down Events, an Event
         of Bankruptcy occurs with respect to any member of the Lessee Group;

                  17.1.6   Default Under Another Lease. A Lease Event of Default
         occurs under the Amended and Restated Motor Vehicle Lease Agreement,
         dated as of December 1, 1996, the Motor Vehicle Lease Agreement,
         Series 1997-1, dated as of April 1, 1997, the Motor Vehicle Lease
         Agreement, Series 1997-2, dated as of April 29, 1997, the Amended and
         Restated Master Motor Vehicle Lease Agreement Group I, dated as of
         June 19, 1998, the Amended and Restated Master Motor Vehicle Lease
         Agreement Group II, dated as of February 25, 2000 or any other Lease
         with respect to which Budget is a guarantor;

                                      -25-
<PAGE>   31

                  17.1.7   Required Credit Support Amount. The Credit Support
         Amount for any Group III Series of Notes shall be less than the
         Minimum Credit Support Amount for such Series and such condition shall
         continue to exist for more than one Business Day; or

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

         17.2     Effect of Lease Event of Default. If (i) a Lease Event of
Default described in Section 17.1.1, 17.1.2, 17.1.5, 17.1.7 or 17.1.8 shall
occur, then the Monthly Base Rent, Casualty Payments, the Monthly Supplemental
Payments (calculated as if all Financed Vehicles had become a Casualty for the
Related Month), the Monthly Variable Rent and Monthly Finance Rent (calculated
as if the full amount of interest, principal and other charges under all
Outstanding Group III Series of Notes were then due and payable in full), the
Monthly Supplemental Rent (calculated as if the full amount of interest,
principal and other charges under all Outstanding Group III Series of Notes were
then due and payable in full) and, with respect to Group III Non-Repurchase
Vehicles, the Additional Base Rent, if any, shall, automatically, without
further action by the Lessor or the Trustee, become immediately due and payable
or (ii) any other Lease Event of Default or any Liquidation Event of Default
shall occur, the Lessor or the Trustee may declare the Rent (calculated as
described in clause (i) above) to be due and payable, whereupon such Rent (as so
calculated) shall, subject to Section 17.5, become immediately due and payable.

         17.3     Rights of Lessor Upon Lease Event of Default, Liquidation
Event of Default or Limited Liquidation Event of Default. If a Lease Event of
Default, Limited Liquidation Event of Default or Liquidation Event of Default
shall occur, then the Lessor at its option may:

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

                  (ii)     By notice in writing to the Lessee Group (or such
         member(s) thereof against which the Lessor determines to exercise its
         remedies hereunder) following the occurrence of a Lease Event of
         Default, terminate this Agreement in its entirety (or in respect only
         of the applicable member(s) thereof) and/or the right of possession
         hereunder of the Lessee Group (or the applicable member(s) thereof) as
         to the Group III Vehicles, and the Lessor may direct delivery by the
         Lessee Group (or the applicable member(s) thereof) of documents of
         title to the Group III Vehicles, whereupon all rights and interests of
         the Lessee Group (or the applicable member(s) thereof) to the Group
         III Vehicles will cease and terminate (but the Lessee Group (or the
         applicable member(s) thereof) will remain liable hereunder as herein
         provided; provided, however, the Lessee Group's liability will

                                      -26-
<PAGE>   32

         be calculated in accordance with Section 17.5); and thereupon, the
         Lessor or its agents may peaceably enter upon the premises of the
         applicable Lessee(s) or other premises where the Group III Vehicles may
         be located and take possession of them and thenceforth hold, possess
         and enjoy the same free from any right of the Lessee Group (or the
         applicable member(s) thereof), or their successors or assigns, to use
         the Group III Vehicles for any purpose whatsoever, and the Lessor will,
         nevertheless, have a right to recover from the Lessee Group (or the
         applicable member(s) thereof) any and all amounts which under the terms
         of Section 17.2 (as limited by Section 17.5) of this Agreement may be
         then due. The Lessor will provide the Lessee Group (or the applicable
         member(s) thereof) with written notice of the place and time of the
         sale at least five days prior to the proposed sale, which shall be
         deemed commercially reasonable, and any Lessee may purchase the Group
         III Vehicle(s) at the sale. Each and every power and remedy hereby
         specifically given to the Lessor will be in addition to every other
         power and remedy hereby specifically given or now or hereafter existing
         at law, in equity or in bankruptcy and each and every power and remedy
         may be exercised from time to time and simultaneously and as often and
         in such order as may be deemed expedient by the Lessor; provided,
         however, that the measure of damages recoverable against the Lessees
         will in any case be calculated in accordance with Section 17.5. All
         such powers and remedies will be cumulative, and the exercise of one
         will not be deemed a waiver of the right to exercise any other or
         others. No delay or omission of the Lessor in the exercise of any such
         power or remedy and no renewal or extension of any payments due
         hereunder will impair any such power or remedy or will be construed to
         be a waiver of any default or any acquiescence therein. Any extension
         of time for payment hereunder or other indulgence duly granted to the
         Lessee Group (or the applicable member(s) thereof) will not otherwise
         alter or affect the Lessor's rights or the obligations hereunder of the
         Lessee Group (or the applicable member(s) thereof). The Lessor's
         acceptance of any payment after it will have become due hereunder will
         not be deemed to alter or affect the Lessor's rights hereunder with
         respect to any subsequent payments or defaults herein; or

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

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

                  (i)      If a Liquidation Event of Default or a Limited
         Liquidation Event of Default or, with respect to Group III Repurchase
         Vehicles, a Manufacturer Event of Default, shall have occurred and be
         continuing, the Lessor and the Trustee, to the extent provided in the
         Indenture, shall have the rights against the Guarantor, each Lessee,
         each Manufacturer in connection with any Manufacturer Event of Default
         and the Collateral provided in the Indenture (including, without
         limitation, in connection with a Manufacturer Event of Default, the
         rights granted under Section 9.3 of the Indenture) upon a Liquidation
         Event

                                      -27-
<PAGE>   33

         of Default or Limited Liquidation Event of Default, including the right
         to take possession of all Group III Vehicles immediately from the
         Lessees.

                  (ii)     With respect to Group III Repurchase Vehicles, if the
         Guarantor or any Lessee shall default in the due performance and
         observance of any of its obligations under Section 29.3, 29.4,
         29.5(iv), 29.8, 30.3 or 30.4 hereof, and such default shall continue
         unremedied for a period of 30 days after notice thereof shall have
         been given to the Guarantor by the Lessor, the Lessor or the Trustee,
         as assignee of the Lessor's rights hereunder, shall have the ability
         to exercise all rights, remedies, powers, privileges and claims of the
         Guarantor or any Lessee against the Manufacturers under or in
         connection with the Repurchase Programs with respect to (i) Group III
         Repurchase Vehicles that the Guarantor or any Lessee has determined to
         turn back to the Manufacturers under such Repurchase Programs and (ii)
         whether or not the Guarantor or any Lessee shall then have determined
         to turn back such Group III Repurchase Vehicles, any such Group III
         Repurchase Vehicles for which the applicable Repurchase Period will
         end within one week or less.

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

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

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

                                      -28-
<PAGE>   34

         Trustee may act in lieu of the Lessor in the exercise of such rights,
         remedies, powers, privileges and claims.

         17.5     Measure of Damages. If a Lease Event of Default, Liquidation
Event of Default or Limited Liquidation Event of Default occurs and the Lessor
or the Trustee exercises the remedies granted to the Lessor or the Trustee under
this Article 17, the amount that the Lessor shall be permitted to recover shall
be equal to:

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

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

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

                  (iv)     interest on amounts due and unpaid under this
         Agreement at the VFR plus 1% from time to time computed from the date
         of the Lease Event of Default, Liquidation Event of Default or Limited
         Liquidation Event of Default or the date payments were originally due
         the Lessor under this Agreement or from the date of each expenditure by
         the Lessor which is recoverable from the Lessees pursuant to this
         Section 16, as applicable, to and including the date payments are made
         by the Lessees; minus

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

         17.6     Application of Proceeds. The proceeds of any sale or other
disposition pursuant to Section 17.3 or 17.4 shall be applied in the following
order: (i) to the reasonable costs and

                                      -29-
<PAGE>   35

expenses incurred by the Lessor in connection with such sale or disposition,
including any reasonable costs associated with repairing any Group III Vehicles,
and reasonable attorneys' fees in connection with the enforcement of this
Agreement, (ii) to the payment of outstanding Rent (such payments to be applied
first to outstanding Monthly Variable Rent and Monthly Finance Rent, then to
outstanding Monthly Supplemental Rent, then to outstanding Monthly Base Rent,
and then, with respect to proceeds related to any Group III Non-Repurchase
Vehicles, to outstanding Additional Base Rent), (iii) to the payment of all
other amounts due hereunder, and (iv) any remaining amounts to the Lessor, or
such Person(s) as may be lawfully entitled thereto.

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

         18.1     The failure of such Manufacturer to pay any amount when due
pursuant to the related Repurchase Program with respect to a Repurchase Vehicle
(whether Group III Repurchase Vehicles or otherwise) turned in to such
Manufacturer or delivered to an authorized auction site pursuant to the related
Repurchase Program; provided, however, that such failure continues for more
than ninety (90) days following the Turnback Date such that the aggregate of
any such amounts not paid for more than 90 days are in the aggregate in excess
of $40,000,000 net of amounts that are the subject of a good faith dispute as
evidenced in writing by either a member of the Lessee Group or the Manufacturer
questioning the accuracy of the amounts paid or payable in respect of certain
Repurchase Vehicles tendered for repurchase, or delivered to an authorized
auction site, under a Repurchase Program.

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

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

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

                                      -30-
<PAGE>   36
         18.5     The Repurchase Program of a Manufacturer shall no longer be an
Eligible Repurchase Program (subject, in each case, to the provisions of Section
20 hereof regarding Eligibility Waiver Events).

         19.      LESSEE PARTIAL WIND-DOWN EVENTS. Upon the occurrence of any of
the events described in Sections 17.1.4, 17.1.5, or 17.1.6 with respect to any
member (such member, the "Defaulting Lessee") of the Lessee Group other than the
Guarantor (a "Lessee Partial Wind-Down Event"), then such Defaulting Lessee
shall (a) no longer place Group III Vehicle Orders for additional Group III
Vehicles and (b) shall cancel Group III Vehicle Orders for Vehicles; provided,
however, that if a Group III Vehicle Order has been placed for a Lessor-Owned
Vehicle and the related Manufacturer has assigned a VIN as of the date such
Lessee Partial Wind-Down Event occurs, then such Group III Vehicle Order will
not be canceled. In the case of a Lessee Partial Wind-Down Event, the Lessor may
(i) exercise any right or remedy in respect only of such Defaulting Lessee
provided for pursuant to the provisions of Section 17.3 or 17.4 hereof and (ii)
terminate the Power of Attorney with respect to such Defaulting Lessee.

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

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

         22.      SURVIVAL. In the event that, during the term of this
Agreement, any member of the Lessee Group becomes liable for the payment or
reimbursement of any obligations, claims or

                                      -31-
<PAGE>   37

taxes pursuant to any provision hereof, such liability will continue,
notwithstanding the expiration or termination of this Agreement, until all such
amounts are paid or reimbursed by such Lessee.

         23.      ADDITIONAL LESSEES. Any Affiliate of or direct or indirect
Subsidiary of the Guarantor (each, a "Guarantor Subsidiary") or any party that
is not an Affiliate of the Guarantor (each, a "Non-Affiliate") shall, with the
consent of the Guarantor, have the right to become a "Lessee" under and pursuant
to the terms of this Agreement by complying with the provisions of this Section
23. In the event a Guarantor Subsidiary or Non-Affiliate desires to become a
"Lessee" under this Agreement, then the Guarantor and such party shall execute
and deliver to the Lessor and the Trustee:

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

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

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

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

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

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

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

                                      -32-
<PAGE>   38

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

                  (ix)     Rating Agency Confirmation that such party becoming a
         "Lessee" under this Agreement will not cause a failure to meet the
         Rating Agency Condition; and

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

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

         24.      GUARANTY.

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

         24.2     Scope of Guarantor's Liability. The Guarantor's obligations
hereunder are independent of the obligations of the Lessees, any other guarantor
or any other Person, and the Lessor may enforce any of its rights hereunder
independently of any other right or remedy that the Lessor may at any time hold
with respect to this Agreement or any security or other guaranty therefor.
Without limiting the generality of the foregoing, the Lessor may bring a
separate action against the Guarantor without first proceeding against any of
the Lessees, any other guarantor or any other Person, or any security held by
the Lessor, and regardless of whether the Lessees or any

                                      -33-
<PAGE>   39

other guarantor or any other Person is joined in any such action. The
Guarantor's liability hereunder shall at all times remain effective with respect
to the full amount due from the Lessees hereunder. The Lessor's rights hereunder
shall not be exhausted by any action taken by the Lessor until all Guaranteed
Obligations have been fully paid and performed. The liability of the Guarantor
hereunder shall be reinstated and revived, and the rights of the Lessor shall
continue, with respect to any amount at any time paid on account of the
Guaranteed Obligations which shall thereafter be required to be restored or
returned by the Lessor upon the bankruptcy, insolvency or reorganization of any
of the Lessees, any other guarantor or any other Person, or otherwise, all as
though such amount had not been paid.

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

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

                  (a)      any defense based upon:

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

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

                           (iii)    any disability or any other defense of any
                  Lessee or any other Person with respect to the Guaranteed
                  Obligations, whether consensual or arising by

                                      -34-
<PAGE>   40

                  operation of law or any bankruptcy, insolvency or
                  debtor-relief proceeding, or from any other cause;

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

                           (i)      accelerate the Guaranteed Obligations;

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

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

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

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

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

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

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

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

                                      -35-
<PAGE>   41

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

                           (ii)     any payment by, or distribution of assets
                  of, the Guarantor or such Lessee of any kind or character,
                  whether in cash, property or securities, to which such Lessee
                  or the Guarantor would be entitled except for this
                  subordination shall be paid or delivered by the Person making
                  such payment or distribution, whether a trustee in bankruptcy,
                  a receiver or liquidating trustee, or otherwise, directly to
                  the Trustee, for the benefit of the holders of the Guaranteed
                  Obligations to be held as additional security for the
                  Guaranteed Obligations in an interest bearing account until
                  the Guaranteed Obligations have been paid in full; and

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

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

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

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

                  (e)      If the Guarantor shall institute or participate in
         any suit, action or proceeding against any Lessee or any Lessee shall
         institute or participate in any suit, action or proceeding against the
         Guarantor, in violation of the terms hereof, such Lessee or the

                                      -36-
<PAGE>   42

         Guarantor, as the case may be, may interpose as a defense or dilatory
         plea this subordination, and the holders of the Guaranteed Obligations
         are irrevocably authorized to intervene and to interpose such defense
         or plea in their name or in the name of such Lessee or the Guarantor,
         as the case may be.

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

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

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

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

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

                                      -37-
<PAGE>   43

         member of the Lessee Group will interpose as a defense that such claim
         should have been asserted by the Lessor;

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

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

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

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

                                      -38-
<PAGE>   44

         27.      MODIFICATION AND SEVERABILITY. The terms of this Agreement
will not be waived, altered, modified, amended, supplemented or terminated in
any manner whatsoever except by written instrument signed by the Lessor and each
Lessee and consented to in writing by the Trustee, each Enhancement Provider
with respect to any Group III Series of Notes and, if the Series 2000-2 Notes
are still outstanding, any Series 2000-2 Noteholder. If any part of this
Agreement is not valid or enforceable according to law, all other parts will
remain enforceable. The Lessor shall provide prompt written notice to each
Rating Agency, and to any Noteholder for each Group III Series of Notes in
respect of which no Rating Agency is then currently requested to provide
ratings, of any such waiver, modification or amendment. Notwithstanding the
foregoing provisions of this Section 27, the Lessor, the Lessees and the
Guarantor may, at any time and from time to time, without the consent of the
Trustee, any Noteholders or any Enhancement Provider, enter into any amendment,
supplement or other modification to this Agreement to cure any apparent
ambiguity or to correct or supplement any provision in this Agreement that may
be inconsistent with any other provision herein; provided, however, that (i) any
such action shall not have a materially adverse effect on the interests of any
Enhancement Provider for a Group III Series of Notes based upon an Opinion of
Counsel and an Officers' Certificate of the Lessor and each Lessee addressed to
the Trustee and (ii) a copy of such amendment, supplement or other modification
is furnished to the Trustee, each Enhancement Provider with respect to any Group
III Series of Notes in accordance with the notice provisions of the related
Series Supplement not later than ten days prior to the execution thereof by the
Lessor, the Lessees and the Guarantor.

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

         28.1     Due Organization, Authorization, etc. The Guarantor and each
Lessee is a corporation duly organized and validly existing and in good standing
under the laws of the jurisdiction of its incorporation and is duly qualified
and in good standing in each jurisdiction where, because of the nature of its
activities or properties, the failure so to qualify would have a Material
Adverse Effect on such Lessee or the Guarantor, as applicable. The execution,
delivery and performance by the Guarantor and each Lessee of this Agreement and
the other Related Documents to be executed and delivered by it are within its
corporate powers, have been duly authorized by all necessary corporate action
(including, without limitation, shareholder approval, if required), have
received all necessary governmental and other consents and approvals (if any
shall be required), and do not and will not contravene or conflict with, or
create a default, breach, Lien or right of termination or acceleration under,
any Requirement of Law or Contractual Obligation binding upon it, other than
such default, breach, Lien or right of termination or acceleration which does
not have a Material Adverse Effect on the Guarantor or such Lessee, as

                                      -39-
<PAGE>   45

applicable. This Agreement and each other Related Document to be executed and
delivered by it are (or when executed and delivered will be) the legal, valid,
and binding obligations of the Guarantor or such Lessee, enforceable against the
Guarantor or such Lessee, as the case may be, in accordance with their
respective terms, subject to bankruptcy, insolvency and other laws affecting the
enforcement of creditors' rights. Each Lessee (other than the Non-Budget
Lessees) is a direct or indirect Subsidiary of the Guarantor.

         28.2     Financial Information; Financial Condition. All balance
sheets, all statements of operations, of stockholders' equity and of cash flow,
and other financial data (other than projections and the financial statements
referred to in clause (b) below) which have been or shall hereafter be furnished
to the Lessor or the Trustee for the purposes of or in connection with this
Agreement or the Related Documents have been and will be prepared in accordance
with GAAP and do and will present fairly the financial condition of the entities
involved as of the dates thereof and the results of their operations for the
periods covered thereby. Such financial data include the following financial
statements and reports which have been, or shall be, furnished to the Lessor and
the Trustee on or prior to such Closing Date:

                  (a)      the audited consolidated balance sheets of Budget and
         each Non-Budget Lessee as of December 31, 1999 (or, if later, as of
         December 31 of the most recently ended calendar year), and the related
         statements of operations, stockholders' deficit and cash flows for the
         fiscal year ending on such date; and

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

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

         28.4     Liens. The Group III Vehicles leased under this Agreement are
free and clear of all Liens other than (i) Permitted Liens and (ii) Liens in
favor of the Trustee. The Trustee has obtained, and will continue to obtain, as
security for the liabilities under the Indenture and the

                                      -40-
<PAGE>   46

Group III Series of Notes, a first priority perfected Lien on all Group III
Vehicles leased under this Agreement. Except as otherwise permitted under the
Indenture, all Vehicle Perfection and Documentation Requirements with respect to
all Group III Vehicles leased under this Agreement on or after the date hereof
have and will continue to be satisfied.

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

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

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

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

         28.9     Taxes. Each of the Guarantor and each Lessee has filed all tax
returns that are required to be filed by it, and has paid or provided adequate
reserves for the payment of all taxes, including, without limitation, all
payroll taxes and federal and state withholding taxes, and all

                                      -41-
<PAGE>   47

assessments payable by it that have become due, other than those that are not
yet delinquent or are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves have been established, and are being
maintained, in accordance with GAAP. As of the Closing Date with respect to each
Series of Notes included in Group III, there is no ongoing material audit (other
than routine sales tax audits and other routine audits) or, to the Guarantor's
or any Lessee's knowledge, material tax liability for any period for which
returns have been filed or were due other than those contested in good faith by
appropriate proceedings and with respect to which adequate reserves have been
established and are being maintained in accordance with GAAP.

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

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

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

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

         28.14    Accuracy of Information. All certificates, reports,
statements, documents and other written information furnished to the Lessor or
the Trustee by the Guarantor or any Lessee pursuant to any provision of any
Related Document, or in connection with or pursuant to any amendment or
modification of, or waiver under, any Related Document, shall, at the time the

                                      -42-
<PAGE>   48

same are so furnished, be complete and correct in all material respects to the
extent necessary to give the Lessor or the Trustee, as the case may be, true and
accurate knowledge of the subject matter thereof, and the furnishing of the same
to the Lessor or the Trustee, as the case may be, shall constitute a
representation and warranty by the Guarantor and such Lessee made on the date
the same are furnished to the Lessor or the Trustee, as the case may be, to the
effect specified herein.

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

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

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

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

                                      -43-
<PAGE>   49

leased hereunder or the Guarantor's or such Lessee's performance under this
Agreement with any of the officers or employees of the Guarantor or such Lessee
having knowledge of such matters.

         29.3     Insurance. The Guarantor, on behalf of each Budget Subsidiary,
and each Non-Budget Lessee, on its own behalf, subject to applicable state and
other requirements, may self-insure against personal injury and damage claims
arising from the use of the Group III Vehicles as well as damage to Group III
Vehicles. All self-insurance maintained by any member of the Lessee Group shall
be maintained in a financially prudent manner.

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

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

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

                  (ii)     Quarterly Statements. (a) As soon as available, but
         in any event within 45 days after the end of each fiscal quarter
         (except the fourth fiscal quarter) of the Guarantor, copies of the
         unaudited consolidated balance sheet of the Guarantor and its
         Subsidiaries as at the end of such fiscal quarter and the related
         unaudited statements of earnings, stockholders' equity and cash flows
         for the portion of the fiscal year through such fiscal quarter (and as
         to the statements of earnings for such fiscal quarter) in each case
         setting

                                      -44-
<PAGE>   50

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

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

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

                                      -45-
<PAGE>   51

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

                  (v)      Non-Repurchase Vehicle Report. Reports of independent
         public accountants as follows: On or before the second Determination
         Date immediately following March 31, June 30, September 30 and December
         31, of each year, beginning with December 31, 1999, the Servicer shall
         cause a firm of nationally recognized independent public accountants
         (who may also render other services to the Servicer and which is
         acceptable to the Rating Agencies, or, if no Rating Agency is then
         currently requested to rate any Group III Series of Notes, to the
         Majority Group III Noteholders) furnish a report (the "Non-Repurchase
         Report") to the Lessor, the Trustee and the Rating Agencies (A) to the
         effect that they have performed certain agreed upon procedures with
         respect to (i) the calculation of Disposition Proceeds and Termination
         Payments obtained from the sale or other disposition of all Group III
         Non-Repurchase Vehicles (other than Casualties) sold or otherwise
         disposed of during each Related Month in such period and compared such
         calculations of Disposition Proceeds and Termination Payments with the
         corresponding amounts set forth in the Daily Reports prepared by the
         Servicer pursuant to Section 4.4(a) of the Base Indenture, (ii) the
         calculation of the Measurement Month Average for each Measurement Month
         in such period and compared such amounts with the corresponding amounts
         set forth in the Monthly Servicer's Certificate prepared by the
         Servicer pursuant to Section 4.4(b) of the Base Indenture and (iii) the
         calculation of the Net Book Value of all Group III Non-Repurchase
         Vehicles and the Non-Repurchase Fleet Market Value for the Related
         Month and compared such amounts with the corresponding amounts set
         forth in the Monthly Servicer's Certificate prepared by the Servicer,
         or (B) in such other form as each Rating Agency shall have expressly
         agreed to accept;

                  (vi)     Monthly Notice of Claims. Monthly, provide to the
         Lessor and Moody's (so long as Moody's is then currently requested to
         rate any of the Group III Series of Notes),

                                      -46-
<PAGE>   52

         a report of any lawsuits filed against the Lessor naming the Lessor as
         defendant in such action;

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

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

         29.6     Taxes and Liabilities. Pay when due all taxes, assessments and
other material (determined on a consolidated basis) liabilities (including,
without limitation, taxes, titling fees and registration fees payable with
respect to Group III Vehicles) except as contested in good faith and by
appropriate proceedings with respect to which adequate reserves have been
established, and are being maintained, in accordance with GAAP if and so long as
forfeiture of any part of the Group III Vehicles leased under this Agreement
will not result from the failure to pay any such taxes, assessments or other
material liabilities during the period of any such contest.

         29.7     Compliance with Laws. Comply with all Requirements of Law
related to its businesses if the failure so to comply would have a Material
Adverse Effect on the Guarantor or such Lessee, as applicable.

         29.8     Maintenance of Separate Existence. The Guarantor and each
Lessee acknowledges its receipt of a copy of that certain opinion letter issued
by Mayer, Brown & Platt, dated June 29, 2000, and addressing the issue of
substantive consolidation as it may relate to the Guarantor, each Lessee and the
Lessor. The Guarantor and each Lessee hereby agrees to maintain in place all
policies and procedures, and take and continue to take all action, described in
the factual assumptions set forth in such opinion letter and relating to such
Person.

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

         29.10    Maintenance of Credit Enhancement. The Guarantor agrees to
maintain a letter of credit in a stated amount which is equal to or greater than
the Required Letter of Credit Amount.

         30.      CERTAIN NEGATIVE COVENANTS. Until the expiration or
termination of this Agreement and thereafter until the obligations of each
Lessee and the Guarantor are paid in full,

                                      -47-
<PAGE>   53

the Guarantor and each Lessee agrees that, unless at any time the Lessor and the
Trustee shall otherwise expressly consent in writing, it will not (and, in the
case of the Guarantor, will not permit any Lessee to):

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

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

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

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

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

         30.3     Liens. Create or permit to exist any Lien with respect to any
Group III Vehicle leased hereunder now or hereafter existing or acquired, except
Liens in favor of the Lessor or the Trustee or the Secured Parties and the
following Liens to the extent such liens in the aggregate would not materially
adversely affect the interests of the Lessor or the Trustee or the Secured
Parties under this Agreement or the Base Indenture or the likelihood of payment
of Rent hereunder or the Notes thereunder (herein collectively called the
"Permitted Liens"): (i) Liens for current taxes not delinquent or for taxes
being contested in good faith and by appropriate proceedings, and with respect
to which adequate reserves have been established, and are being maintained, in
accordance with GAAP, (ii) Liens, including judgment liens, arising in the
ordinary course of business being contested in good faith and by appropriate
proceedings, and with respect to which adequate reserves have been established,
and are being maintained, in accordance with GAAP, (iii) Liens incurred in the
ordinary course of business in connection with worker's

                                      -48-
<PAGE>   54

compensation, unemployment insurance or other forms of governmental insurance or
benefits, and (iv) mechanics', materialmen's, landlords', warehousemen's and
carriers' Liens, and other Liens imposed by law, securing obligations arising in
the ordinary course of business that are being contested in good faith and by
appropriate proceedings and with respect to which adequate reserves have been
established, and are being maintained, in accordance with GAAP.

         30.4     Use of Vehicles. Knowingly use or allow the Group III
Vehicles to be used in any manner that would (i) make any Group III Repurchase
Vehicle ineligible for repurchase, or for the guarantee by the related
Manufacturer of the resale price thereof, under an Eligible Repurchase Program
(subject to the provisions of Section 19 regarding Eligibility Waiver Events),
except with respect to the permitted redesignation of Group III Repurchase
Vehicles as, respectively, Group III Non-Repurchase Vehicles pursuant to Section
13A hereof, or (ii) subject Group III Vehicles to confiscation.

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

         31.      BANKRUPTCY PETITION AGAINST LESSOR. The Guarantor and each
Lessee hereby covenants and agrees that, prior to the date which is one year and
one day after the payment in full of all Group III Series of Notes, it will not
institute against, or join any other Person in instituting against, the Lessor
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceeding under the laws of the United States or
any state of the United States. In the event that the Guarantor or any Lessee
takes action in violation of this Section 31, the Lessor agrees, for the benefit
of the Noteholders, that it shall file an answer with the bankruptcy court or
otherwise properly contest the filing of such a petition by the Guarantor or any
such Lessee against the Lessor or the commencement of such action and raise the
defense that the Guarantor or any such Lessee has agreed in writing not to take
such action and should be estopped and precluded therefrom and such other
defenses, if any, as its counsel advises that it may assert. The provisions of
this Section 31 shall survive the termination of this Agreement.

         32.      SUBMISSION TO JURISDICTION. The Lessor and the Trustee may
enforce any claim arising out of this Agreement in any state or federal court
having subject matter jurisdiction, including, without limitation, any state or
federal court located in the State of New York. For the purpose of any action or
proceeding instituted with respect to any such claim, the Guarantor and each
Lessee hereby irrevocably submits to the jurisdiction of such courts. Each
Lessee hereby irrevocably designates the Guarantor to receive for and on behalf
of such Lessee service of process in New York. The Guarantor and each Lessee
further irrevocably consents to the service of process out of said courts by
mailing a copy thereof, by registered mail, postage prepaid, to the Guarantor or
such Lessee, as the case may be, and agrees that such service, to the fullest
extent permitted by law, (i) shall be deemed in every respect effective service
of process upon it in any

                                      -49-
<PAGE>   55

such suit, action or proceeding and (ii) shall be taken and held to be valid
personal service upon and personal delivery to it. Nothing herein contained
shall affect the right of the Trustee and the Lessor to serve process in any
other manner permitted by law or preclude the Lessor or the Trustee from
bringing an action or proceeding in respect hereof in any other country, state
or place having jurisdiction over such action. The Guarantor and each Lessee
hereby irrevocably waives, to the fullest extent permitted by law, any objection
which it may have or hereafter have to the laying of the venue of any such suit,
action or proceeding brought in any such court located in the State of New York
and any claim that any such suit, action or proceeding brought in such a court
has been brought in an inconvenient forum.

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

         34.      JURY TRIAL. EACH PARTY HERETO HEREBY EXPRESSLY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT TO WHICH IT IS A
PARTY, OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION THEREWITH OR ARISING FROM ANY
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY RELATED
TRANSACTION, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
A COURT AND NOT BEFORE A JURY.

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

                                      -50-
<PAGE>   56

         TRUSTEE:       Bankers Trust Company
                        4 Albany Street
                        New York, New York 10006
                        Attention:   Corporate Trust and Agency
                                     Group/Structured Finance
                        Telephone:   (212) 250-6501
                        Telecopier:  (212) 250-6439

         LESSOR:        Team Fleet Financing Corporation
                        4225 Naperville Road
                        Lisle, Illinois 60535-3662
                        Attention:   Neal Cohen
                        Telephone:   (630) 955-7600
                        Telecopier:  (630) 955-7799

Each such notice, request or communication shall be effective when received at
the address specified below. Copies of all notices must be sent by first class
mail promptly after transmission by facsimile.

         36.      LIABILITY. Each member of the Lessee Group shall be held
jointly and severally liable for all of the obligations of each other member of
the Lessee Group hereunder.

         37.      TITLE TO REPURCHASE PROGRAMS IN LESSOR. Each Lessee, by its
execution hereof, acknowledges and agrees that (i) the Lessor is the sole owner
and holder of all right, title and interest in and to the Repurchase Programs
and (ii) such Lessee has no right, title or interest in any Repurchase Program.
To confirm the foregoing, each Lessee, by its execution hereof, hereby assigns
and transfers to the Lessor any rights that such Lessee may have in respect of
any Repurchase Programs.

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

         39.      EXECUTION IN COUNTERPARTS. This Agreement may be executed in
any number of counterparts and by different parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together, shall
constitute one and the same Agreement.

         40.      EFFECTIVENESS. This Agreement shall become effective
concurrently with the issuance of the Series 2000-2 Note as the first Group III
Series of Notes.

                                      -51-
<PAGE>   57

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

                                     LESSOR:

                                     TEAM FLEET FINANCING CORPORATION

                                     By: /s/ Robert L. Aprati
                                        -----------------------------
                                        Name:   Robert L. Aprati
                                        Title:  Secretary

                                     LESSEES:

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

                                     By: /s/ Robert L. Aprati
                                        -----------------------------
                                        Name:   Robert L. Aprati
                                        Title:  Secretary

                                     GUARANTOR:

                                     BUDGET GROUP, INC.

                                     By: /s/ Robert L. Aprati
                                        -----------------------------
                                        Name:   Robert L. Aprati
                                        Title:  Secretary

RECEIVED THIS June ______, 2000

BANKERS TRUST COMPANY, as
Trustee

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

<PAGE>   58

                                                                         ANNEX A

                                      ANNEX

                                     TO THE

                 MASTER MOTOR VEHICLE LEASE AGREEMENT GROUP III

                            Dated as of June 29, 2000

                                      among

                        TEAM FLEET FINANCING CORPORATION,
                                    as Lessor

                               BUDGET GROUP, INC.,
                                  as Guarantor

                                       and

                         BUDGET RENT A CAR SYSTEMS, INC.

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

<PAGE>   59

         1.       Scope of Annex. This Annex A shall apply only to the
acquisition, leasing and servicing of the Lessor-Owned Vehicles by the Lessor
pursuant to the Agreement, as supplemented by this Lease Annex (collectively,
the "Operating Lease").

         2.       General Agreement. With respect to the Lessor-Owned Vehicles,
the Lessees and the Lessor intend that the Agreement, as supplemented by this
Lease Annex, is an operating lease and that the relationship between the Lessor
and the Lessees pursuant thereto and hereto shall always be only that of lessor
and lessees, and the Lessees hereby declare, acknowledge and agree that the
Lessor has title to and is the owner of the Lessor-Owned Vehicles. The Lessees
shall not acquire by virtue of the Lease any right, equity, title or interest in
or to any Lessor-Owned Vehicles, except the right to use the same under the
terms of the Operating Lease. The parties agree that the Operating Lease is a
"true lease" for all legal, accounting, tax and other purposes and agree to
treat the Operating Lease, as it applies to the Lessor-Owned Vehicles, as an
operating lease for all purposes, including tax, accounting and otherwise. The
parties will file all federal, state and local tax returns and reports in a
manner consistent with the preceding sentence.

         3.       Operating Lease Commitment. (1) The Lessor shall, from time to
time on or after the Lease Commencement Date and prior to the Lease Expiration
Date, subject to the terms and conditions of the Agreement, refinance
Lessor-Owned Vehicles that are Refinanced Vehicles and purchase Lessor-Owned
Vehicles identified in Group III Vehicle Orders placed by a Lessee for a
purchase price equal to the Capitalized Cost thereof, and simultaneously
therewith, the Lessor shall under the Operating Lease enter into operating
leases with the related Lessee with respect to such Group III Vehicles;
provided, that the aggregate Net Book Value of Lessor-Owned Vehicles leased
hereunder on any date shall not exceed (a) the Maximum Lease Commitment, less
(b) the Base Amount as of such date with respect to the Financing Lease.

         4.       Reserved.

         5.       Maximum Vehicle Lease Term. The maximum Vehicle lease term of
the Operating Lease as it relates to each Lessor-Owned Vehicle leased hereunder
shall be from the Vehicle Lease Commencement Date to the date that is 24 months
from the Vehicle Lease Commencement Date; provided that notwithstanding the
period stated above, the maximum Vehicle lease term for any Vehicle or type of
Vehicle may be such longer period with respect to which Rating Agency
Confirmation has been obtained. On the occurrence of such date for a Group III
Vehicle not previously disposed of, the applicable Lessee shall, (a) on behalf
of the Lessor, promptly dispose of such Group III Vehicle in accordance with the
terms hereof and in accordance with any instructions of the Lessor for such
disposition, (b) in each case, provide that Disposition Proceeds be paid
directly to the Collection Account for the benefit of the Group III Noteholders
and (c) pay to the Trustee, in accordance with this Operating Lease, any other
amounts unpaid and owing from such Lessee under the Lease in respect of such
Vehicle.

         6.       Lessees's Rights to Purchase Vehicles. The related Lessee will
have the option, exercisable during the Vehicle Term with respect to any
Lessor-Owned Vehicle leased hereunder, to purchase any Lessor-Owned Vehicles
leased under this Agreement at a purchase price equal to the greater of (a) the

                                    Annex A
                                      -1-
<PAGE>   60

applicable Net Book Value or (b) the Fair Market Value of the Group III Vehicle
(such greater amount, the "Vehicle Purchase Price", with respect to Group III
Repurchase Vehicles, and the "Non-Repurchase Vehicle Value", with respect to
Group III Non-Repurchase Vehicles), in which event such Lessee will pay the
Vehicle Purchase Price or the Non-Repurchase Vehicle Value, as applicable, to
the Lessor on or before the Due Date next succeeding such purchase by the Lessee
plus all accrued and unpaid Monthly Base Rent and Monthly Variable Rent with
respect to such Vehicle through the date of such purchase. In addition, each
Lessee will have the option, exercisable with respect to any Manufacturer
Receivable related to a Lessor-Owned Vehicle which was leased by such Lessee
under this Agreement, to purchase such Manufacturer Receivable for a price equal
to the amount due from the Manufacturer under such Manufacturer Receivable, in
which event the Lessee will pay such amount to the Trustee on or before the
Distribution Date next succeeding such purchase by the Lessee. Upon receipt of
such purchase price by the Trustee, the Lessor, at the request of the Lessee,
shall cause title to any such Group III Vehicle or Manufacturer Receivable, as
applicable, to be transferred to the applicable Lessee, and the Lien of the
Trustee on such Group III Vehicle shall be released thereby.

          7.      Vehicle Disposition. The Lessees agree that, with respect to
Lessor-Owned Vehicles, each Lessee shall use its commercially reasonable efforts
to return each Group III Repurchase Vehicle (other than any such Group III
Repurchase Vehicle that has been redesignated as a Group III Non-Repurchase
Vehicle pursuant to Section 14 of the Lease) to the related Manufacturer (a) not
prior to the end of the Minimum Term for such Vehicle, and (b) not later than
the end of the Maximum Term for such Vehicle; provided, however, if for any
reason, a Lessee fails to deliver such a Group III Repurchase Vehicle to the
applicable Manufacturer for repurchase by the Manufacturer in accordance with
the applicable Repurchase Program, during the time period between the expiration
of the Minimum Term and the expiration of the Maximum Term, such Lessee shall be
obligated to purchase such Group III Repurchase Vehicle as provided in Section
12 of the Agreement or redesignate such Group III Vehicle as a Group III
Non-Repurchase Vehicle in accordance with Section 14 of the Lease. Each Lessee
shall, with respect to Lessor-Owned Vehicles leased by it hereunder, pay the
equivalent of the Rent for the Minimum Term for Group III Repurchase Vehicles
returned before the expiration of the Minimum Term, regardless of actual usage,
unless such a Group III Repurchase Vehicle is a Casualty, which will be handled
in accordance with Section 6 of the Agreement. All Disposition Proceeds due from
the disposition of Group III Repurchase Vehicles pursuant to this Section shall
be due and payable to the Lessor. The Lessor and the Lessees agree, with respect
to Lessor-Owned Vehicles, that the Lessees shall use commercially reasonable
efforts to dispose of each Group III Non-Repurchase Vehicle (a) in a
commercially reasonable manner, consistent with industry practice and applicable
requirements of law, and that is most likely to maximize proceeds from such
disposition and (b) prior to the expiration of the Non-Repurchase Maximum Term
for such Group III Non-Repurchase Vehicle. Each Lessee shall use commercially
reasonable efforts to cause all proceeds from the disposition of Group III
Vehicles pursuant to this Section to be paid directly to the Collection Account;
provided that, to the extent that any Lessee receives any such proceeds
directly, it shall deliver such proceeds to the Trustee within five (5) days of
receipt thereof for deposit into the Collection Account.

         8.       Lessor's Right to Cause Vehicles to be Sold. Notwithstanding
anything to the contrary contained in the Agreement, the Lessor shall have the
right, at any time after the date forty-five (45) days

                                    Annex A
                                      -2-
<PAGE>   61

prior to the expiration of the Maximum Term or Non-Repurchase Maximum Term, as
applicable, for any Group III Vehicle leased under this Annex A, to require that
the Lessee thereof, and the Lessee shall have the obligation to (a) deliver such
Group III Vehicle to the Manufacturer for repurchase (if such Group III Vehicle
is a Group III Repurchase Vehicle) or (b) exercise commercially reasonable
efforts to arrange for the sale of such Vehicle to a third party for a price (i)
greater than the Net Book Value thereof (if such Group III Vehicle is a Group
III Repurchase Vehicle) or (ii) at least equal to the Non-Repurchase Vehicle
Value thereof (if such Group III Vehicle is a Group III Non-Repurchase Vehicle).
If a sale of the Vehicle to a third party is arranged by the Lessee prior to the
expiration of such Maximum Term in accordance with the foregoing, then the
Lessee shall deliver the Group III Vehicle to the purchaser thereof, the Lien of
the Trustee on the Certificate of Title of such Group III Vehicle shall be
released, and the Lessee shall cause to be delivered to the Lessor the funds
paid for such Vehicle by the purchaser. If the Lessee is unable to arrange for a
sale of a Group III Repurchase Vehicle on or before the 30th day prior to the
expiration of such Maximum Term, then the Lessee shall cease attempting to
arrange for such a sale and shall return such Group III Repurchase Vehicle to
the applicable Manufacturer or purchase such Group III Vehicle as herein
provided. If the Lessee is unable to arrange for a sale of a Group III
Non-Repurchase Vehicle for an amount in excess of the Non-Repurchase Vehicle
Value thereof prior to the end of the applicable Non-Repurchase Maximum Term,
then the Lessee shall cease attempting to arrange for such sale and shall
arrange for the sale of such Group III Vehicle at auction with commercially
reasonable efforts to maximize the sale price. In no event may any Group III
Repurchase Vehicle be sold pursuant to this paragraph 8 (other than pursuant to
a Repurchase Program) unless the funds to be paid to the Lessor arising out of
such sale exceed the Net Book Value of such Group III Vehicle less reasonably
predictable Excess Mileage Charges, Excess Damage Charges and other similar
charges imposed by the Manufacturer.

         9.       Calculation of Rent. Rent shall be due and payable on a
monthly basis as set forth in this paragraph 9:

                  (a)      Certain Definitions. As used herein the following
                  terms have the following meanings:

                           "Additional Base Rent" with respect to the Group III
                  Non-Repurchase Vehicles leased hereunder, with respect to each
                  Due Date shall equal the amount, if any, by which (a) 100% of
                  the aggregate Net Book Value of such Group III Non-Repurchase
                  Vehicles owned by the Lessor exceeds (b) the three (3) month
                  rolling average of the Fair Market Value of such Group III
                  Non-Repurchase Vehicles for the preceding three (3) calendar
                  months.

                           "Monthly Base Rent" with respect to each Due Date and
                  each Lessor-Owned Vehicle leased under this Agreement during
                  the Related Month shall be the sum of all Depreciation Charges
                  that have accrued with respect to such Group III Vehicle
                  during the Related Month.

                           "Monthly Variable Rent" with respect to each Due Date
                  and each Lessor-Owned Vehicle leased under this Agreement on
                  any day during the Related Month shall equal the

                                    Annex A
                                      -3-
<PAGE>   62

                  sum of (a) an amount equal to the Net Book Value of such Group
                  III Vehicle, with respect to each Group III Repurchase
                  Vehicle, or the Non-Repurchase Vehicle Value of such Vehicle,
                  with respect to each Group III Non-Repurchase Vehicle, during
                  the Related Month multiplied by the VFR for a one year
                  interest period, multiplied by a fraction, the numerator of
                  which shall be 30 and the denominator of which shall be 360
                  and (b) the product of (i) an amount equal to (x) the sum of
                  all Carrying Charges for each Group III Series of Notes for
                  the Related Month less (y) any accrued earnings on Permitted
                  Investments in the Group III Collection Account which are
                  accrued through the last Business Day of the Related Month and
                  maturing by the next Distribution Date and (ii) a fraction,
                  the numerator of which is the Net Book Value of such Group III
                  Vehicle, with respect to each Group III Repurchase Vehicle, or
                  the Non-Repurchase Vehicle Value of such Vehicle, with respect
                  to each Group III Non-Repurchase Vehicle, and the denominator
                  of which is the sum of the Net Book Values and Non-Repurchase
                  Vehicle Values of all Group III Vehicles. In the event the
                  Vehicle Lease Commencement Date occurs with respect to such
                  Group III Vehicle on a day other than the last day of a
                  Related Month, the Monthly Variable Rent for such Group III
                  Vehicle shall be equal to the product of (a) the Monthly
                  Variable Rent otherwise payable with respect to such Group III
                  Vehicle, multiplied by (b) a fraction the numerator of which
                  is 12 and the denominator of which is 360, multiplied by (c)
                  the number of days in such Related Month from, after and
                  including such Vehicle Lease Commencement Date through and
                  including the last day of such Related Month. In the event the
                  Vehicle Lease Expiration Date occurs with respect to such
                  Vehicle on a day other than the last day of the Related Month,
                  the Monthly Variable Rent for such Vehicle shall be equal to
                  the product of (a) the Monthly Variable Rent otherwise payable
                  with respect to such Group III Vehicle for the Related Month,
                  multiplied by (b) a fraction the numerator of which is 12 and
                  the denominator of which is 360, multiplied by (c) the number
                  of days in such Related Month from, after and including the
                  first day of such Related Month through and including the
                  Vehicle Lease Expiration Date.

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

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

                  (b)      Payment of Rent. On each Due Date:

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

                                    Annex A
                                      -4-
<PAGE>   63

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

                           (iii)    Additional Base Rent. Each Lessee shall pay
                  to the Lessor such Lessee's Share of an amount equal to the
                  monthly Additional Base Rent that has accrued during the
                  Related Month with respect to the Group III Non-Repurchase
                  Vehicles leased hereunder by such Lessee.

         10.      Net Lease. THE OPERATING LEASE SHALL BE A NET LEASE, AND THE
LESSEE'S OBLIGATION TO PAY ALL RENT AND OTHER SUMS HEREUNDER SHALL BE ABSOLUTE
AND UNCONDITIONAL, AND SHALL NOT BE SUBJECT TO ANY ABATEMENT OR REDUCTION FOR
ANY REASON WHATSOEVER. The obligations and liabilities of the Lessees hereunder
shall in no way be released, discharged or otherwise affected (except as may be
expressly provided herein including, without limitation, the right of each
Lessee to reject Group III Vehicles pursuant to Section 2.2 of the Agreement)
for any reason, including without limitation: (i) any defect in the condition,
merchantability, quality or fitness for use of the Group III Vehicles or any
part thereof; (ii) any damage to, removal, abandonment, salvage, loss, scrapping
or destruction of or any requisition or taking of the Group III Vehicles or any
part thereof; (iii) any restriction, prevention or curtailment of or
interference with any use of the Group III Vehicles or any part thereof; (iv)
any defect in or any Lien on title to the Group III Vehicles or any part
thereof; (v) any change, waiver, extension, indulgence or other action or
omission in respect of any obligation or liability of the relevant Lessee or the
Lessor; (vi) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to the
relevant Lessee, the Lessor or any other Person, or any action taken with
respect to the Operating Lease by any trustee or receiver of any Person
mentioned above, or by any court; (vii) any claim that the relevant Lessee has
or might have against any Person, including without limitation the Lessor;
(viii) any failure on the part of the Lessor to perform or comply with any of
the terms hereof or of any other agreement; (ix) any invalidity or
unenforceability or disaffirmance of the Operating Lease or any provision hereof
or any of the other Related Documents or any provision of any thereof, in each
case whether against or by the relevant Lessee or otherwise; (x) any insurance
premiums payable by the relevant Lessee with respect to the Group III Vehicles;
or (xi) any other occurrence whatsoever, whether similar or dissimilar to the
foregoing, whether or not the relevant Lessee shall have notice or knowledge of
any of the foregoing and whether or not foreseen or foreseeable. The Operating
Lease shall be noncancelable by the Lessees and, except as expressly provided
herein, each Lessee, to the extent permitted by law, waives all rights now or
hereafter conferred by statute or otherwise to quit, terminate or surrender the
Operating Lease, or to any diminution or reduction of Rent payable by such
Lessee hereunder. All payments by each Lessee made hereunder shall be final
(except to the extent of adjustments provided for herein), absent manifest error
and, except as otherwise provided herein, no Lessee shall seek to recover any
such payment or any part thereof for any reason whatsoever, absent manifest
error. If for any reason whatsoever the Operating Lease shall be terminated in
whole or in part by operation of law or otherwise except as expressly provided
herein, each Lessee shall nonetheless pay an amount equal to each Rent payment
at the time and in the manner that such payment would have become due and
payable under the terms of the Operating Lease as if it had not been terminated
in whole

                                    Annex A
                                      -5-
<PAGE>   64

or in part. All covenants and agreements of each Lessees herein shall be
performed at its cost, expense and risk unless expressly otherwise stated.

         11.      Liens. Except for Permitted Liens, each Lessee shall keep all
Group III Vehicles leased by it free of all Liens arising during the Term. Upon
the Vehicle Lease Termination Date for each Group III Vehicle leased hereunder
should any such Lien exist the Lessor may, in its discretion, remove such Lien
and any sum of money that may be paid by the Lessor in release or discharge
thereof, including attorneys' fees and costs, will be paid by the Lessee upon
demand by the Lessor. The Lessor may grant security interests in the Group III
Vehicles without consent of the relevant Lessee; provided, however, that if any
such Liens would interfere with the rights of such Lessee under this Agreement,
the Lessor must obtain the prior written consent of such Lessee. Each Lessee
acknowledges that the granting of Liens and the taking of other actions pursuant
to the Base Indenture and the Related Documents does not interfere with the
rights of such Lessee under this Agreement.

         12.      Non-Disturbance. So long as a Lessee satisfies its obligations
hereunder, its quiet enjoyment, possession and use of the Group III Vehicles
leased by it hereunder will not be disturbed during the Term subject, however,
to paragraph 8 of this Annex A to the Lease and except that the Lessor and the
Trustee each retains the right, but not the duty, to inspect the Group III
Vehicles without disturbing the ordinary conduct of the Lessees's business. Upon
the request of the Lessor or the Trustee, from time to time, each Lessee will
make reasonable efforts to confirm to the Lessor and the Trustee the location,
mileage and condition of each Group III Vehicle leased by it hereunder and to
make available for the Lessor's or the Trustee's inspection within a reasonable
time period, not to exceed forty-five (45) days, such Group III Vehicles at the
location where such Group III Vehicles are normally domiciled. Further, each
Lessee will, during normal business hours and with a notice of three (3)
Business Days, make its records pertaining to the Group III Vehicles available
to the Lessor or the Trustee for inspection at the location where the Lessees's
records are normally domiciled.

      13.         Certain Risks of Loss Borne by Lessees. Upon delivery of a
Group III Vehicle to a Lessee, as between the Lessor and the Lessees, such
Lessee assumes and bears the risk of loss, damage, theft, taking, destruction,
attachment, seizure, confiscation or requisition and all other risks and
liabilities with respect to such Group III Vehicle, including personal injury or
death and property damage, arising with respect to such Group III Vehicle due to
the manufacture, purchase, acceptance, rejection, delivery, leasing, subleasing,
possession, use, inspection, registration, operation, condition, maintenance,
repair or storage of such Group III Vehicle, howsoever arising.

                                    Annex A
                                      -6-
<PAGE>   65

      14.         Title. This is an agreement to lease only, and title to the
Lessor-Owned Vehicles will at all times remain in the Lessor's name. The Lessees
will not have any rights or interest in such Group III Vehicles whatsoever other
than the rights of possession and use of such Group III Vehicles as provided by
this Agreement. In addition, each Lessee, by its execution hereof, acknowledges
and agrees that (i) the Lessor is the sole owner and holder of all right, title
and interest in and to the Repurchase Programs as they relate to the
Lessor-Owned Vehicles leased hereunder and (ii) the Lessee has no right, title
or interest in any Repurchase Program as it relates to any Lessor-Owned Vehicle
leased hereunder. To confirm the foregoing, each Lessees, by its execution
hereof, hereby assigns and transfers to the Lessor any rights that such Lessee
may have in respect of any Repurchase Programs as they relate to the
Lessor-Owned Vehicles leased by it hereunder.

                                      * * *

                                    Annex A
                                      -7-
<PAGE>   66

                                                                         ANNEX B

                                      ANNEX

                                     TO THE

                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP III

                            Dated as of June 29, 2000

                                      among

                        TEAM FLEET FINANCING CORPORATION,
                                    as Lessor

                               BUDGET GROUP, INC.,
                                  as Guarantor

                                       and

                         BUDGET RENT A CAR SYSTEMS, INC.

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

<PAGE>   67

         1.       Scope of Annex. This Annex B shall apply only to the
acquisition or financing, leasing and servicing of the Financed Vehicles by the
Lessor pursuant to the Agreement, as supplemented by this Lease Annex
(collectively, the "Financing Lease").

         2.       General Agreement. With respect to the Financed Vehicles, the
Lessees and the Lessor each intend that the Agreement, as supplemented by this
Lease Annex, constitute a financing arrangement and that the relationship
between the Lessor and the Lessees pursuant thereto and hereto shall always be
only that of lessor and lessee, and the Lessor hereby declares, acknowledges and
agrees that the ownership of each Financed Vehicle leased hereunder rests solely
with the Lessee thereof subject to the security interest granted hereunder to
the Lessor.

         3.       Financing Lease Commitment. Subject to the terms and
conditions of the Financing Lease, upon execution and delivery of the Financing
Lease, the Lessor shall (i) on or after the Lease Commencement Date and prior to
the Lease Expiration Date purchase, finance or refinance Financed Vehicles and
other Refinanced Vehicles identified in Refinancing Schedules for a purchase
price equal to the aggregate Net Book Value thereof, and (ii) from time to time
on or after the Lease Commencement Date and prior to the Lease Expiration Date
purchase all other Financed Vehicles identified in Group III Vehicle Orders
placed by the Lessees for a purchase price equal to the Capitalized Cost
thereof, and in each case simultaneously therewith enter into this Financing
Lease with the Lessees with respect to the Financed Vehicles, as the case may
be; provided, that the aggregate outstanding Base Amount of the Financing Lease
shall not on any date exceed (a) the Maximum Lease Commitment, less (b) the sum
of (x) the sum of the Net Book Values of Lessor-Owned Vehicles leased under the
Operating Lease on such date, each such Net Book Value calculated as of the
first day contained within both the calendar month in which such date of
determination occurs and the Vehicle Term for the related Lessor-Owned Vehicle,
plus (y) accrued and unpaid Monthly Base Rent under the Operating Lease as of
such date.

         4.       Reserved.

         5.       Maximum Vehicle Lease Term. The maximum vehicle lease term of
the Financing Lease as it relates to each Financed Vehicle leased hereunder
shall be from the Vehicle Lease Commencement Date to the date that is 60 months
from the Vehicle Lease Commencement Date. On the occurrence of such date, each
Lessee shall pay to the Lessor, in accordance with this Financing Lease, any
amounts unpaid and owing under the Lease in respect of such Group III Vehicle.

         6.       Calculation of Rent and Monthly Supplemental Payment. Rent and
the Monthly Supplemental Payment shall be due and payable on a monthly basis as
set forth in this Paragraph 6:

                  (a)      Certain Definitions. As used herein the following
         terms have the following meanings:

                                     Annex B
                                       -1-
<PAGE>   68

                           "Additional Base Rent" with respect to the Group III
                  Non-Repurchase Vehicles leased hereunder, with respect to each
                  Due Date shall equal the amount, if any, by which (a) 100% of
                  the aggregate Net Book Value of such Group III Non-Repurchase
                  Vehicles owned by the Lessor exceeds (b) the three (3) month
                  rolling average of the Fair Market Value of such Group III
                  Non-Repurchase Vehicles for the preceding three (3) calendar
                  months.

                           "Monthly Base Rent" with respect to each Due Date and
                  each Financed Vehicle leased under this Agreement on any day
                  during the Related Month shall be the sum of all Depreciation
                  Charges that have accrued with respect to such Group III
                  Vehicle during the Related Month.

                           "Monthly Finance Rent" with respect to each Due Date
                  and each Group III Vehicle subject to this Agreement shall
                  equal the sum of (a) an amount equal to the Net Book Value of
                  such Group III Vehicle, with respect to each Group III
                  Repurchase Vehicle, or the Non-Repurchase Vehicle Value of
                  such Group III Vehicle, with respect to each Group III
                  Non-Repurchase Vehicle, during the Related Month multiplied by
                  the VFR for a one year interest period, multiplied by a
                  fraction, the numerator of which shall be 30 and the
                  denominator of which shall be 360 and (b) the product of (i)
                  an amount equal to (x) the sum of all Carrying Charges for
                  each Group III Series of Notes for the Related Month less (y)
                  any accrued earnings on Permitted Investments in the Group III
                  Collection Account which are accrued through the last Business
                  Day of the Related Month and maturing by the next Distribution
                  Date and (ii) a fraction, the numerator of which is the Net
                  Book Value of such Group III Vehicle, with respect to each
                  Group III Repurchase Vehicle, or the Group III Non-Repurchase
                  Vehicle Value of such Group III Vehicle, with respect to each
                  Group III Non-Repurchase Vehicle, and the denominator of which
                  is the sum of the Net Book Values and Non-Repurchase Vehicle
                  Values of all Group III Vehicles. In the event the Vehicle
                  Lease Commencement Date occurs with respect to such Group III
                  Vehicle on a day other than the last day of a Related Month,
                  the Monthly Finance Rent for such Group III Vehicle shall be
                  equal to the product of (a) the Monthly Finance Rent otherwise
                  payable with respect to such Group III Vehicle, multiplied by
                  (b) a fraction the numerator of which is 12 and the
                  denominator of which is 360, multiplied by (c) the number of
                  days in such Related Month from, after and including such
                  Vehicle Lease Commencement Date through and including the last
                  day of such Related Month. In the event the Vehicle Lease
                  Expiration Date occurs with respect to such Group III Vehicle
                  on a day other than the last day of the Related Month, the
                  Monthly Finance Rent for such Group III Vehicle shall be equal
                  to the product of (a) the Monthly Finance Rent otherwise
                  payable with respect to such Group III Vehicle for the Related
                  Month, multiplied by (b) a fraction the numerator of which is
                  12 and the denominator of which is 360, multiplied by (c) the
                  number of days in such Related Month from, after and including
                  the first day of such Related Month through and including the
                  Vehicle Lease Expiration Date.

                                    Annex B
                                      -2-
<PAGE>   69

                           "Monthly Supplemental Payment" with respect to each
                  Due Date and all Group III Vehicles that were leased under
                  this Financing Lease on any day during the Related Month shall
                  be an amount equal to the sum of (i) the aggregate Termination
                  Values (each as of the date on which such Financed Vehicle is
                  no longer an Eligible Vehicle, becomes a Casualty or is sold,
                  as applicable) of all the Financed Vehicles financed under
                  this Finance Lease at any time during such Related Month that,
                  without double counting, while so financed are no longer
                  Eligible Repurchase Vehicles or Eligible Non-Repurchase
                  Vehicles, have suffered a Casualty or are sold by the Lessee
                  (it being understood that the Lessee has agreed to sell
                  Financed Vehicles only in a manner consistent with the
                  provisions hereof and of the Related Documents) to any Person
                  (including the Lessee) other than to a Manufacturer pursuant
                  to such Manufacturer's Repurchase Program or to a third party
                  pursuant to an Auction conducted through a Manufacturer's
                  Repurchase Program, in each case, during the Related Month,
                  plus (ii) the aggregate Termination Values (each as of the
                  applicable Disposition Date) of all the Financed Vehicles
                  financed under this Finance Lease that while so financed were
                  returned by the Lessee to a Manufacturer or designated auction
                  pursuant to a Repurchase Program with respect to which either
                  (x) the Repurchase Price or the Guaranteed Payment and
                  Disposition Proceeds have been paid by such Manufacturer
                  and/or the related auction dealers during the Related Month or
                  (y) a Manufacturer Event of Default has occurred, or (z) the
                  90th day after the Turnback Date with respect thereto has
                  occurred during the Related Month and the Repurchase Price or
                  Guaranteed Payment has not been received, plus (iii) the
                  aggregate face amount of all the Manufacturer Receivables
                  financed under this Finance Lease with respect to which either
                  (x) the Repurchase Price or the Guaranteed Payment and
                  Disposition Proceeds have been paid by such Manufacturer
                  and/or the related auction dealers during the Related Month or
                  (y) a Manufacturer Event of Default has occurred or (z) the
                  90th day after the Turnback Date with respect thereto has
                  occurred during the Related Month and the amount of such
                  Manufacturer Receivables has not been received, plus (iv) the
                  aggregate amount of all Auction Receivables financed under
                  this Finance Lease with respect to which (x) the amount
                  thereof has been paid by the related Auction Dealer or (y) the
                  10th day after the sale of the related Vehicle at auction has
                  occurred during the Related Month and the amount of the
                  related Auction Receivable has not been received, minus (iv)
                  any amounts received by the Lessor or the Trustee, or
                  deposited into the Collection Account, during the Related
                  Month representing (a) Repurchase Prices and Guaranteed
                  Payments for repurchases or dispositions of Financed Vehicles
                  or (b) the sales proceeds for sales of Financed Vehicles
                  financed at the time of such sale under this Finance Lease to
                  a third party other than to a Manufacturer. Solely for
                  determining the amounts payable hereunder with respect to a
                  Financed Vehicle that is a Group III Repurchase Vehicle that
                  became a Casualty as a result of such Group III Repurchase
                  Vehicle being held beyond the Maximum Term applicable thereto
                  (other than, in each case, a Group III Repurchase Vehicle that
                  has been redesignated as a Group III Non-Repurchase Vehicle in
                  accordance with Section 14 of the Lease), such Group III
                  Vehicle will be deemed to have become a Casualty upon the date
                  the Maximum Term expires.

                                    Annex B
                                      -3-
<PAGE>   70

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

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

                  (b)      Payment of Rent. On each Due Date:

                           (i)      Monthly Base Rent. Each Lessee shall pay to

                  the Lessor all Monthly Base Rent that has accrued during the
                  Related Month with respect to each Group III Vehicle leased
                  hereunder by such Lessee;

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

                           (iii)    Additional Base Rent. Each Lessee shall pay
                  to the Lessor such Lessee's Pro Rata Share of an amount equal
                  to the monthly Additional Base Rent that has accrued during
                  the Related Month with respect to the Group III Non-Repurchase
                  Vehicles leased hereunder by such Lessee; and

                           (iv)     Monthly Supplemental Payments. Each Lessee
                  shall pay to the Lessor the Monthly Supplemental Payments that
                  have accrued during the Related Month with respect to all
                  Group III Vehicles that were leased under the Finance Lease on
                  any day during the Related Month; provided, however, that in
                  the event that the Monthly Supplemental Payment accrued during
                  a Related Month is a negative dollar amount, such amount may
                  be netted against other payments to be paid on such Due Date
                  pursuant to this Paragraph 6.

                  (c)      On the expiration of the Term of the Lease, any
         remaining Base Amount, plus all other amounts payable by the Lessees
         under the Financing Lease shall be immediately due and payable.

                  (d)      A Lessee may from time to time prepay the Base Amount
         of the Financing Lease with respect to a Financed Vehicle leased by it
         hereunder, in whole or in part, on any date, provided that such Lessee
         shall give the Lessor and the Trustee not less than one (1) Business
         Day's prior notice of any prepayment, specifying the date and amount of
         such prepayment, and the Financed Vehicles to which such prepayment
         relates.

                                    Annex B
                                      -4-
<PAGE>   71

         7.       Risk of Loss Borne by Lessees. Upon delivery of each Financed
Vehicle to the Lessee thereof, as between the Lessor and the Lessee thereof, the
Lessee assumes and bears the risk of loss, damage, theft, taking, destruction,
attachment, seizure, confiscation or requisition with respect to such Group III
Vehicle, however caused or occasioned, and all other risks and liabilities,
including personal injury or death and property damage, arising with respect to
such Group III Vehicle or the manufacture, purchase, acceptance, rejection,
ownership, delivery, leasing, subleasing, possession, use, inspection,
registration, operation, condition, maintenance, repair, storage, sale, return
or other disposition of such Group III Vehicle, howsoever arising.

         8.       Mandatory Repurchase of Texas Vehicles and Hawaii Vehicles.
Prior to the Vehicle Lease Expiration Date with respect to each Texas Vehicle or
Hawaii Vehicle (other than a Vehicle Lease Expiration Date arising in connection
with the purchase of such Group III Vehicle pursuant to this Paragraph 8) and,
prior to the expiration of the Maximum Term or Non-Repurchase Maximum Term
applicable thereto, the Lessee thereof shall purchase such Texas Vehicle or
Hawaii Vehicle (including any such Group III Vehicle which has become a
Casualty) at a purchase price equal to the Net Book Value of such Group III
Vehicle calculated as of the date of purchase (or, in the case of a Casualty, at
a purchase price equal to the Monthly Supplemental Payments accruing in respect
of such Casualty during the Related Month in which such Group III Vehicle became
a Casualty), which shall be payable to the Trustee (together with all accrued
and unpaid Rent and other payments due and payable on such Due Date with respect
to such Texas Vehicle or Hawaii Vehicle through the date of such purchase) on or
prior to the Due Date next succeeding such purchase by the Lessee. The Lessor
shall cause title to each Texas Vehicle or Hawaii Vehicle to be transferred to
the Lessee thereof, and the Servicer shall cause the Trustee to cause its Lien
to be removed from the Certificate of Title for such Group III Vehicle,
concurrently with or promptly after such purchase price for such Texas Vehicle
or Hawaii Vehicle, as applicable, (and any such unpaid Rent and payments) is
paid by the Lessee to the Trustee. Notwithstanding anything to the contrary in
this Agreement, no Texas Vehicle or Hawaii Vehicle may be sold or otherwise
disposed of (other than pursuant to Section 17.3 of the Agreement), including by
return to its Manufacturer pursuant to a Repurchase Program, prior to its
purchase by the Lessee thereof pursuant to and in accordance with this Paragraph
8.

         9.       Lessee's Rights to Purchase Manufacturer Receivables. In
addition, each Lessee will have the option, exercisable with respect to any
Manufacturer Receivable related to a Financed Vehicle which was leased by such
Lessee under this Agreement, to purchase such Manufacturer Receivable for a
price equal to the amount due from the Manufacturer under such Manufacturer
Receivable, in which event the Lessee will pay such amount to the Trustee on or
before the Payment Date next succeeding such purchase by the Lessee. Upon
receipt of such funds by the Trustee, the Lessor, at the request of the Lessee,
shall cause title to any such Manufacturer Receivable to be transferred to the
Lessee, and the Lien of the Trustee in such Manufacturer Receivable will
automatically be released concurrently with or promptly after the purchase price
for such Manufacturer Receivable (and any unpaid Monthly Base Rent, unpaid
Monthly Variable Rent and other unpaid charges, payments and amounts) is paid by
the Lessee to the Trustee.

                                      * * *

                                    Annex B
                                      -5-
<PAGE>   72

                                                                      Schedule I

                    LESSEES AS OF SERIES 2000-2 CLOSING DATE

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

2.       NYRAC, INC.

3.       PREMIER CAR RENTAL LLC

<PAGE>   73

                                                                     Schedule II

                                NOTICE ADDRESSES

         BUDGET RENT-A-CAR SYSTEMS, INC.

         Address:          4225 Naperville Road
                           Lisle, IL

         Attention:        Neal Cohen
         Telephone:        630-955-7600
         Telecopier:       630-955-7799

         NYRAC, INC.

         Address:          4225 Naperville Road
                           Lisle, IL

         Attention:        Neal Cohen
         Telephone:        630-955-7600
         Telecopier:       630-955-7799

         PREMIER CAR RENTAL LLC.

         Address:          4225 Naperville Road
                           Lisle, IL

         Attention:        Neal Cohen
         Telephone:        630-955-7600
         Telecopier:       630-955-7799

<PAGE>   74

                                                                   Schedule 28.8

                               BUSINESS LOCATIONS

         BUDGET RENT-A-CAR SYSTEMS, INC.

         Address:          4225 Naperville Road
                           Lisle, IL

         Attention:        Neal Cohen
         Telephone:        630-955-7600
         Telecopier:       630-955-7799

         NYRAC, INC.

         Address:          4225 Naperville Road
                           Lisle, IL

         Attention:        Neal Cohen
         Telephone:        630-955-7600
         Telecopier:       630-955-7799

         PREMIER CAR RENTAL LLC.

         Address:          4225 Naperville Road
                           Lisle, IL

         Attention:        Neal Cohen
         Telephone:        630-955-7600
         Telecopier:       630-955-7799

<PAGE>   75

                                 ATTACHMENT A-1
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP III

                            SCHEDULE OF INITIAL FLEET

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

Refinanced Vehicles (including Initial Fleet)

1        Vehicle Model
2        Vehicle Identification Number (last eight digits) (VIN)
3        Vehicle Lease Commencement Date
4        Capitalized Cost
5        Monthly Base Rent
6        Garaging State
7        Lienholder
8        Amount to pay off existing indebtedness

Eligible Receivables

1        identity of obligor
2        amount of receivable
3        date of origination of receivable
4        vehicle identification number (VIN) of vehicles to which
           receivable relates (grouped by obligor)

<PAGE>   76

                                 ATTACHMENT A-2
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP III

                     GROUP III VEHICLE ACQUISITION SCHEDULE

                                  Vehicle Order

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

<PAGE>   77

                                  ATTACHMENT B
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP III

                            FORM OF POWER OF ATTORNEY

         KNOW ALL MEN BY THESE PRESENTS, that Team Fleet Financing Corporation
does hereby make, constitute and appoint _________________________ its true and
lawful Attorney(s)-in-fact for it and in its name, stead and behalf, to execute
any and all documents pertaining to the titling of motor vehicles in the name of
Team Fleet Financing Corporation, the noting of the Lien of Bankers Trust
Company, as trustee, as the first lienholder on certificates of title, the
correction of any such certificate of title, the licensing and registration of
motor vehicles and the transfer of title to the Manufacturer and to __________.
This power is limited to the foregoing and specifically does not authorize the
creation of any liens or encumbrances on any of said motor vehicles.

         The powers and authority granted hereunder shall, unless sooner
terminated, revoked or extended, cease five years from the date of execution as
set forth below.

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

                                    TEAM FLEET FINANCING CORPORATION

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

<PAGE>   78

State of _____________________________ )
                                       )
County of ____________________________ )

         Subscribed and sworn before me, a notary public, in and for said county
and state, this __________ day of __________, 20___.

                                    -------------------------------------------
                                                   Notary Public

                                    My Commission Expires:
                                                           --------------------

                                      B-2
<PAGE>   79

                                  ATTACHMENT C
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    Group III

                            FORM OF JOINDER IN LEASE

         THIS JOINDER IN LEASE AGREEMENT (this "Joinder") is executed as of
_______________ ___, 20___, by _______________, a _____________________________
("Joining Party"), and delivered to Team Fleet Financing Corporation, a Delaware
corporation ("TFFC"), as lessor pursuant to the Master Motor Vehicle Lease
Agreement-Group III, dated as of June 29, 2000 (as amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof, the
"Lease"), among TFFC, Budget Systems, Inc. and those direct or indirect
Subsidiaries and other Affiliates of Budget Group, Inc. ("Budget"), a Delaware
corporation formerly known as Team Rental Group, Inc., that are listed on
Schedule 1 to the Lease and those that become party to the Lease pursuant to the
provisions of Section 23 thereof and those additional parties that are not
direct or indirect Subsidiaries or other Affiliates of Budget that become
parties to the Lease pursuant to the provisions of Section 23 thereof
(individually, a "Lessee" and, collectively, the "Lessees"), and Budget, as
guarantor. Capitalized terms used herein but not defined herein shall have the
meanings provided for in the Lease.

                                R E C I T A L S:

         [WHEREAS, the Joining Party is a direct or indirect Subsidiary or other
Affiliate of Budget; and]

         WHEREAS, the Joining Party desires to become a "Lessee" under and
pursuant to the Lease.

         NOW, THEREFORE, the Joining Party agrees as follows:

<PAGE>   80

                               A G R E E M E N T:

         1.       The Joining Party hereby represents and warrants to and in
favor of TFFC and the Trustee that (i) [the Joining Party is a direct or
indirect Subsidiary or Affiliate of Budget, (ii)] all of the conditions required
to be satisfied pursuant to Section 23 of the Lease in respect of the Joining
Party becoming a Lessee thereunder have been satisfied, and (iii) all of the
representations and warranties contained in Section 28 of the Lease with respect
to the Lessees are true and correct as applied to the Joining Party as of the
date hereof.

         2.       The Joining Party hereby agrees to assume all of the
obligations of a "Lessee" under the Lease and agrees to be bound by all of the
terms, covenants and conditions therein.

         3.       The Joining Party acknowledges its receipt of a copy of that
certain opinion letter issued by Mayer, Brown & Platt, dated June 29, 2000, and
addressing the issue of substantive consolidation as it may relate to the
Guarantor, each Lessee and the Lessor. The Joining Party hereby agrees to
maintain in place all policies and procedures, and take and continue to take all
action, described in the factual assumptions set forth in such opinion letter
and relating to the Lessees or such Joining Party.

         4.       By its execution and delivery of this Joinder, the Joining
Party hereby becomes a Lessee for all purposes under the Lease. By its execution
and delivery of this Joinder, TFFC acknowledges that the Joining Party is a
Lessee for all purposes under the Lease.

         IN WITNESS WHEREOF, the Joining Party has caused this Joinder to be
duly executed as of the day and year first above written.

                                    [Name of Joining Party]

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

Accepted and Acknowledged by:

TEAM FLEET FINANCING CORPORATION

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

                                     C-1-2

<PAGE>   81

Consented to by:

BUDGET GROUP, INC.

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

                                     C-1-3

<PAGE>   82

                                  ATTACHMENT D
                                       TO
                      MASTER MOTOR VEHICLE LEASE AGREEMENT
                                    GROUP III

                              FORM OF BILL OF SALE

         IN CONSIDERATION OF the payment of $_______________, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, [SELLER], a [state of incorporation] corporation (the "Seller"),
does hereby sell, assign, transfer, convey, grant, bargain, set over, release,
deliver and confirm unto Team Fleet Financing Corporation, a Delaware
corporation (the "Buyer"), its successors and assigns, forever, the entire
right, title and interest of the Seller in, to and under all the Group III
Vehicles listed and described in Schedule 1 attached hereto (the "Vehicles"),
the Seller's interest in Repurchase Programs with respect to the Vehicles, all
moneys due or to become due and all amounts received or receivable with respect
thereto and all proceeds thereof (collectively, the "Transferred Assets").
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Amended and Restated Base Indenture dated
as of December 1, 1996, as supplemented or amended by that certain Series
Supplement dated June 29, 2000 among the Buyer, Budget and the Trustee, among
the Buyer, Budget Group, Inc. ("Budget"), a Delaware corporation, as Servicer
and Budget Interestholder, and Bankers Trust Company, a New York Banking
Corporation, as the Trustee (the "Trustee").

         The Seller hereby constitutes and appoints the Buyer, its successors
and assigns, the true and lawful attorney of the Seller, with full power of
substitution, in the name of the Buyer or in the name of the Seller, but for the
benefit and at the expense of the Buyer, to collect, demand and receive any and
all Transferred Assets, to collect any accounts receivable included in the
Transferred Assets and to endorse in the name of the Seller any checks or drafts
received in payment thereof and to enforce by appropriate proceedings any claim,
right or title of any kind in or to the Transferred Assets. The foregoing shall
include, without limitation, the right to change the holder of title on the
certificates of title included within the Transferred Assets. The Seller
acknowledges that the foregoing powers are coupled with an interest and shall be
irrevocable by the Seller for any reason.

         From and after the date hereof, upon request of the Buyer, the Seller,
at its own expense, shall do such further and other acts and execute such
further and other agreements, assignments, bills of sale, certificates
(including Certificates of Title), powers, instruments and other documents as
the Buyer may deem necessary, desirable or appropriate to vest in the Buyer or
further assure to the Buyer all right, title and interest of the Seller in, to
and under the Transferred Assets.

<PAGE>   83

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

                                    [SELLER]

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

                                       D-2

<PAGE>   84

                                                                      SCHEDULE 1
                                                                 TO BILL OF SALE

                                    VEHICLES

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

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

                                      D-3

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