CONFORMED COPY AMENDMENT (this "Amendment"), dated as of October 30, 1998, to the TERM LOAN AGREEMENT dated as of May 29, 1998 (as the same may be amended, supplemented or otherwise modified from time to time, the "Term Loan Agreement"), by and among CENDANT CORPORATION, a Delaware corporation (the "Borrower"), the financial institutions parties thereto (the "Lenders"), the Syndication Agent, Co-Documentation Agents, Managing Agents and Co-Agents named therein and THE CHASE MANHATTAN BANK, a New York banking corporation, as agent for the Lenders (in such capacity, the "Administrative Agent"). W I T N E S S E T H: WHEREAS, the Borrower has requested the Lenders to amend certain provisions of the Term Loan Agreement upon the terms and conditions set forth herein; NOW THEREFORE, in consideration of the premises and mutual covenants contained herein, the undersigned hereby agree as follows: 1. Defined Terms. Terms defined in the Term Loan Agreement and used herein shall have the meanings given to them in the Term Loan Agreement. 2. Amendments. (a) Section 1 of the Term Loan Agreement is amended by adding the following to the definition of "Consolidated EBITDA" immediately after clause (vii) thereof: minus (viii) any cash expenditures during such period to the extent such cash expenditures (x) did not reduce Consolidated Net Income for such period and (y) were applied against reserves that constituted non-cash items which reduced Consolidated Net Income during prior periods, (b) Section 1 of the Term Loan Agreement is amended by adding at the end of the first sentence of the definition of "Consolidated Interest Expense" the following: minus, without duplication, any interest income of the Borrower and its Consolidated Subsidiaries on a consolidated basis during such period. (c) Section 1 of the Term Loan Agreement is amended by deleting clause (ii) from the definition of "Consolidated Net Income" and substituting therefor the phrase "(ii) [INTENTIONALLY OMITTED]". (d) Schedules 6.1 and 6.5 of the Term Loan Agreement are hereby amended by replacing such Schedules with new Schedules 6.1 and 6.5 in the forms of Schedules 6.1 and 6.5, respectively, attached to this Amendment. 3. Effective Date. This Amendment shall become effective on the date (the "Effective Date") on which: 2 TL (a) the Borrower, the Administrative Agent and the Required Lenders shall have duly executed and delivered to the Administrative Agent this Amendment; and (b) the Lenders shall have received the (i) revised audited consolidated financial statements of the Borrower and its Consolidated Subsidiaries as of December 31, 1997 and December 31, 1996, as adjusted for the accounting irregularities disclosed in the Borrower's amended 1997 Form 10K/A filed with the Securities and Exchange Commission and (ii) unaudited consolidated financial statements of the Borrower and its Consolidated Subsidiaries as of March 31, 1998 and June 30, 1998. 4. No Other Amendments; Confirmation. Except as expressly amended hereby, the provisions of the Term Loan Agreement and each of the Fundamental Documents are and shall remain in full force and effect. 5. Governing Law. This Amendment and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York. 6. Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Amendment may be delivered by facsimile transmission of the relevant signature pages hereof. 7. Representations and Warranties. The Borrower hereby represents and warrants that (a) each of the representations and warranties in Section 3 of the Term Loan Agreement (other than those set forth in Sections 3.4 and 3.5) shall be, after giving effect to this Amendment, true and correct in all material respects as if made on and as of the Effective Date (unless such representations and warranties are stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date) and (b) after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing. 3 TL IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed and delivered by their duly authorized officers as of the date first above written. CENDANT CORPORATION By: /s/ Michael Monaco --------------------------------- Name: Michael Monaco Title: Chief Financial Officer THE CHASE MANHATTAN BANK, as Administrative Agent and as a Lender By: /s/ Carol A. Ulmer --------------------------------- Name: Carol A. Ulmer Title: Vice President BANK OF AMERICA NT&SA By: /s/ Steve A. Aronowitz --------------------------------- Name: Steve A. Aronowitz Title: Managing Director BARCLAYS BANK PLC By: /s/ Karen M. Wagner --------------------------------- Name: Karen M. Wagner Title: Associate Director 4 TL BANK BRUSSELS LAMBERT, NEW YORK BRANCH By: --------------------------------- Name: Title: THE BANK OF NOVA SCOTIA By: /s/ S. Lockhart --------------------------------- Name: S. Lockhart Title: Vice President BANK OF TOKYO-MITSUBISHI TRUST COMPANY By:/s/ William DiNicola --------------------------------- Name: William DiNicola Title: Attorney-In-Fact BANQUE NATIONALE DE PARIS, NEW YORK BRANCH By: --------------------------------- Name: Title: By: --------------------------------- Name: Title: 5 TL PARIBAS, NEW YORK BRANCH By: /s/ Sean Reddington ----------------------------- Name: Sean Reddington Title: Vice President By: /s/ Russell Pomerantz ----------------------------- Name: Russell Pomerantz Title: Vice President CANADIAN IMPERIAL BANK OF COMMERCE By: /s/ Gerald Girardi ----------------------------- Name: Gerald Girardi Title: Executive Director COMERICA BANK By: /s/ Kimberly S. Kersten ----------------------------- Name: Kimberly S. Kersten Title: Vice President CREDIT LYONNAIS NEW YORK BRANCH By: /s/ Vladimir Labun ----------------------------- Name: Vladimir Labun Title: First Vice President-Manager 6 TL CREDIT SUISSE FIRST BOSTON By: /s/ Bill O'Daly ---------------------------- Name: Bill O'Daly Title: Vice President By: /s/ Joel Glodowski ---------------------------- Name: Joel Glodowski Title: Managing Director FIRST UNION NATIONAL BANK By: /s/ Christopher McLaughlin ---------------------------- Name: Christopher McLaughlin Title: Vice President FLEET NATIONAL BANK By: /s/ Marlene K. Haddad ---------------------------- Name: Marlene K. Haddad Title: Vice President THE FUJI BANK, LIMITED NEW YORK BRANCH By: ---------------------------- Name: Title: 7 TL THE INDUSTRIAL BANK OF JAPAN, LIMITED NEW YORK BRANCH By: /s/ Christian Giordano --------------------------- Name: Christian Giordano Title: Vice President MELLON BANK, N.A. By: /s/ Donald G. Cassidy, Jr. --------------------------- Name: Donald G. Cassidy, Jr. Title: First Vice President ROYAL BANK OF CANADA By: /s/ Sheryl L. Greenberg --------------------------- Name: Sheryl L. Greenberg Title: Senior Manager THE SUMITOMO BANK, LIMITED, NEW YORK BRANCH By: /s/ J. Bruce Meredith --------------------------- Name: J. Bruce Meredith Title: Senior Vice President 8 TL WELLS FARGO BANK, N.A. By: /s/ Donald Hartmann --------------------------------------- Name: Donald Hartmann Title: Senior Vice President By: /s/ David Hollingsworth --------------------------------------- Name: David HollingsworthFrieda Youlios Title: Vice President Schedule 6.1 Existing Indebtedness and Guarantees Lease Agreement dated 11/29/91 between Days Inns of America, Inc. and John Hancock Life Insurance Company in the amount of $373,970. Lease Agreement dated 8/1/93 between Coldwell Banker Corporation and Pitney Bowes in the amount of $22,805. Lease Agreement dated 6/1/95 between Coldwell Banker Corporation and Xerox Corporation in the amount of $652,331. Unsecured borrowings by Coldwell Banker Corporation from Wells Fargo Bank in principal amount of $27,000,000. Prior to March 31, 1999, $100 million Credit Facility dated March 27, 1998 between Hebdo Mag Inc., the lenders thereto and the Canadian Imperial Bank of Commerce. Schedule 6.5 Existing Liens -------------- Liens in connection with leases of office equipment incurred in the ordinary course of business.