Document:

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                                                                    EXHIBIT 10.9
                     NON-DISTURBANCE AGREEMENT AND CONSENT
                                  OF MANAGER
                                  ----------

          THIS NON-DISTURBANCE AGREEMENT AND CONSENT OF MANAGER (this
"Agreement") is made as of the 28/th /day of September, 2001, by APPLE
 ---------
HOSPITALITY MANAGEMENT, INC., a Virginia corporation ("Lessee"), the lessee
                                                       ------
under the Lease (as defined herein), having an address c/o Apple Hospitality
Two, Inc., 10 South Third Street, Richmond, Virginia  23219, and RESIDENCE INN
III LLC, a Delaware limited liability company ("Owner"), the borrower under the
                                                -----
Loan (as defined herein), having an address c/o Apple Hospitality Two, Inc., 10
South Third Street, Richmond, Virginia  23219, to WELLS FARGO BANK MINNESOTA,
N.A., AS TRUSTEE FOR THE REGISTERED CERTIFICATEHOLDERS OF BANC OF AMERICA
COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2000-2, having an address at c/o Bank of America, N.A. Capital Markets Servicing
Group, Mail Code: CA9-703-26-10, P.O. Box 3609, Los Angeles, California 90051
(together with its successors and/or assigns, the "Lender"), and is consented
                                                   ------
and agreed to by RESIDENCE INN BY MARRIOTT, INC., having its principal place of
business at c/o Marriott International, Inc., 10400 Fernwood Road, Bethesda,
Maryland 20817 ("Manager").
                 -------

                                   RECITALS:

          I.   Owner by that certain promissory note, of even date herewith and
given to Bank of America, N.A. (the rights of which have been assigned to
Lender), in the principal amount of $55,588,000.00 (together with all
extensions, renewals, modifications, substitutions and amendments thereof, the
"Note"), is indebted to Lender for a loan advanced pursuant to the Loan
 ----
Agreement dated December 29, 1999, between Owner and Lender (together with all
extensions, renewals, modifications, substitutions and amendments thereof, the
"Loan Agreement") (the indebtedness evidenced by the Note, together with such
 --------------
interest accrued thereon, shall collectively be referred to as the "Loan").
                                                                    ----

          II.   The Loan is secured by, among other things, Fee and Leasehold
Deeds of Trust, Deed to Secure Debt and Mortgages, Assignment of Leases and
Rents and Security Agreement (each individually referred to herein as a
"Security Instrument" and collectively, as the "Security Instruments"), dated
 -------------------                            --------------------
December 29, 1999, which grant Lender a first lien on the property encumbered
thereby (each, a "Property" and collectively, the "Properties") (the Note, the
                  --------                         ----------
Loan Agreement, the Security Instruments, this Assignment and any of the other
documents evidencing or securing the Loan are collectively referred to herein as
the "Loan Documents").
     --------------

          III.  Owner, as lessor, and Lessee, as lessee, have entered into that
certain Master Hotel Lease Agreement (the "Lease") dated as of September __,
                                           -----
2001, pursuant to the terms of which Owner has leased the Properties to Lessee.

          IV.   Pursuant to, and subject to the terms of, that certain Consent,
Assignment and Assumption of Management Agreement ("Consent, Assignment and
                                                    -----------------------
Assumption of
-------------
<PAGE>

Management Agreement") dated as of September __, 2001, Owner assigned all of its
--------------------
interests in, and obligations under, that certain Management Agreement dated
December 29, 1999, between Owner and Manager ("Prior Management Agreement")
                                               --------------------------
to Lessee, and Manager consented to such assignment subject to the terms of
such Consent, Assignment and Assumption of Management Agreement. Thereafter,
Lessee and Manager entered into that certain Amended and Restated Management
Agreement, which is dated as of September __, 2001 as amended, modified,
renewed, extended or substituted from time to time, the "Management Agreement"),
                                                         --------------------
a true and correct copy of which Management Agreement is attached hereto as
Exhibit A, and in connection therewith, Lessee, Lessor and Manager have entered
---------
into that certain Owner Agreement of even date thereof. Pursuant to the terms of
the Management Agreement, Lessee has employed Manager exclusively to, as of the
effective date, supervise, direct and control the management and operation of
the Properties and Manager is entitled to certain base and incentive management
fees (the "Management Fees") thereunder.
           ---------------

          V.  Lender requires that Lessee assign the Management Agreement to
Lender and that Manager consent to the Loan and agree with Lender, Owner and
Lessee as to certain matters more particularly described herein.

                                   AGREEMENT

          For good and valuable consideration the parties hereto agree as
follows:

          1.  Assignment of Management Agreement.  As additional collateral
              ----------------------------------
security for the Loan, Lessee hereby conditionally transfers, sets over and
assigns to Lender all of Lessee's right, title and interest in and to the
Management Agreement, said transfer and assignment to automatically become a
present, unconditional assignment, at Lender's option, upon the occurrence and
during the continuation of an Event of Default (as hereinafter defined), and the
failure of Lessee to cure such default within any applicable grace period.  Upon
written notification by Lender or Lender's nominee to Manager, all portions of
the rents, security deposits, issues, proceeds, profits and other revenues of
the Properties collected by Manager to which Lessee or Owner is entitled
pursuant to the terms of the Management Agreement shall be applied in accordance
with Lender's written directions to Manager.  Lessee and Owner hereby expressly
consent to the actions contemplated in the foregoing sentence.

          As used in this Agreement, "Event of Default" shall mean an event of a
default by Owner (continuing beyond any applicable grace period) under the Note,
any Security Instrument, the Loan Agreement or any of the other Loan Documents.

          2.  Manager's Consent to Assignment.  Manager hereby acknowledges and
              -------------------------------
agrees that (i) Manager hereby consents to the assignment of Lessee's interest
in the Management Agreement by Lessee to Lender as additional security for the
Loan, and (ii) notwithstanding anything to the contrary contained in the
Management Agreement, (A) no such consent shall be required for the assignment
and transfer of the Management Agreement to Lender or its nominee in connection
with a Foreclosure and (B) Manager will not unreasonably withhold, condition or
delay its consent to the purchase by an entity other than Lender ("Successor
                                                                   ---------
Owner") at a sale by Lender or its nominee subsequent to such Foreclosure,
-----

                                      -2-
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provided that in the case of both (A) and (B) that any assignee or Successor
Owner satisfies the requirements set forth in Section 18.01(A)(2) of the
Management Agreement.

          3.   Subordination of Management Agreement; Non-Disturbance.  The
               ------------------------------------------------------
Management Agreement as the same may hereafter be modified, amended or extended,
and all of Manager's right, title and interest in and to the Properties, are and
shall be subject and subordinate to the Security Instruments and the liens
thereof, to all the terms, conditions and provisions of the Security Instruments
and to each and every advance made or hereafter made under the Security
Instruments, and to all renewals, modifications, consolidations, replacements,
substitutions and extensions of the Security Instruments (provided that there is
no increase in the principal amount of the Note set forth in the Recitals of
this Agreement), so that at all times the Security Instruments shall be and
remain a lien on the Properties prior and superior to the Management Agreement
for all purposes; provided, however, (i) Lender shall not join Manager as a
                  --------  -------
party defendant in any Foreclosure action or proceeding which may be instituted
or taken by Lender under the Security Instruments by reason of any default
thereunder, unless such joinder is necessary to foreclose the Security
Instruments and then only for such purpose and not for the purpose of
terminating the Management Agreement, (ii) Manager's estate under and right to
manage the Properties pursuant to the Management Agreement shall not be
terminated or disturbed, (except in accordance with the terms of the Management
Agreement), (iii) any Successor Owner shall recognize Manager's rights under the
Management Agreement, and (iv) other than as set forth herein, none of Manager's
rights under the Management Agreement shall be affected in any way be reason of
any default under the Security Instruments.

          As used in this Section 3, the "Foreclosure" shall mean any exercise
of the remedies available to the Lender or other holder of the Security
Instrument(s), upon a default under the Security Instrument(s), which results in
a transfer of title to or possession of the Property(ies).  The term
"Foreclosure" shall include, without limitation:  (i) a transfer by judicial or
non-judicial foreclosure; (ii) a transfer by deed in lieu of foreclosure; (iii)
the appointment by a court of a receiver to assume possession of the Property;
(iv) a transfer of either ownership or control of the Owner, by exercise of a
stock pledge or otherwise; (v) a transfer resulting from an order given in a
bankruptcy, reorganization, insolvency or similar proceeding; (vi) if title to
the Property is held by a tenant under a ground lease, an assignment of the
tenant's interest in such ground lease; or (vii) any similar judicial or non-
judicial exercise of the remedies held by the Lender or other holder of the
Security Instrument.

          As used in this Section 3, "Successor Owner" shall mean any individual
or entity which acquires title to or possession of the Property at or through a
Foreclosure (together with any successors or assigns thereof), including,
without limitation, (i) Lender, or its nominee, (ii) any purchaser of the
Property(ies) from Lender, or any lessee of Property(ies) from Lender, or (iii)
any purchaser of the Property(ies) at Foreclosure.

          4.   Termination.  At such time as the Loan is paid in full and the
               -----------
Security Instruments are released or assigned of record, this Agreement and all
of Lender's right, title and interest hereunder with respect to the Management
Agreement shall terminate.

          5.   Manager Estoppel.  Manager represents and warrants that (a) the
               ----------------
Management Agreement is in full force and effect and has not been modified,
amended or

                                      -3-
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assigned by Manager other than pursuant to this Agreement, (b) to the best of
Manager's knowledge, Lessee is not in default under any of the terms, covenants
or provisions of the Management Agreement and Manager does not know of any event
which, but for the passage of time or the giving of notice or both, would
constitute an event of default by Lessee under the Management Agreement, (c)
Manager has not commenced any action or given or received any notice for the
purpose of terminating the Management Agreement prior to its expiration
according to the terms of the Management Agreement, and (d) through the close of
Accounting Period 9 (as defined in the Management Agreement) of Fiscal Year
2001, the Management Fees and all other sums due and payable to the Manager
under the Management Agreement have been paid, with the exception of (i) One
Million Four Hundred Seventy-Five Thousand One Hundred Thirty-Five Dollars
($1,475,135) in accrued Contingent Management Fees (as defined in the Management
Agreement), which Contingent Management Fees shall be paid to Manager
simultaneously with the execution of this Agreement; (ii) Eight Hundred Nine
Thousand Two Hundred Eighty Dollars ($809,280) owed to Manager from the Inn's
Reserve (as such term is defined in the Management Agreement) for expenses under
Section 7.02(a) of the Management Agreement paid by Manager; (iii) any amounts
owed to Manager by Owner under Section 7.03 of the Management Agreement; (iv)
Seventy-Eight Thousand One Hundred Four Dollars and Thirty-Seven Cents
($78,104.37) in reimbursements to Manager from the Immediate Repair Escrow
Account (as such term is defined in the Loan Agreement); and (v) any other sums
due to Manager from the accounts established pursuant to Article VI of the Loan
Agreement. Manager also hereby agrees that upon Lender's written request,
Manager shall execute an estoppel letter stating whether the foregoing
statements are correct.

          6.   Building Estimates.  Manager hereby agrees that any money to be
               ------------------
paid by Borrower to Manager pursuant to the terms of Section 7.03 of the
Management Agreement shall only be paid to Manager after Owner's payment of the
monthly Qualifying Debt Service (including all monthly escrow deposits required
under the Loan Agreement).

          7.   Lessee's and Owner's Covenants.  Lessee and Owner hereby covenant
               ------------------------------
with Lender that during the term of this Agreement:  (a) neither Lessee nor
Owner shall transfer the responsibility for the management of any Property from
Manager to any other person or entity without prior written notification to
Lender and the prior written consent of Lender, which consent may be withheld by
Lender in Lender's sole discretion; and (b) neither Lessee nor Owner shall
terminate or amend any of the terms or provisions of the Management Agreement
(other than immaterial or purely administrative amendments) without the prior
written consent of Lender, which consent may be withheld by Lender in Lender's
sole discretion.

          8.   Release from Liability.  In the event Lender exercises any rights
               ----------------------
pursuant to this Agreement, Owner and Lessee hereby release Lender and Manager
from any liability, costs, damages or other obligations of Lender or Manager to
Owner or Lessee as a result of such exercise of rights.

          9.   Liability Continued.  If a Successor Owner shall succeed to the
               -------------------
interest of "Lessee" under the Management Agreement, in no event shall Successor
Owner have any liability under the Management Agreement prior to the date
Successor Owner shall succeed to the interest of "Lessee" under the Management
Agreement, nor any liability for claims, offsets or defenses which Manager might
have had against Lender as "Lessee" under the Management

                                      -4-
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Agreement prior to the date Successor Owner shall succeed to the interest of
"Lessee" under the Management Agreement (provided, however, that as to the
Lender, Lender's personal liability shall at all times be limited to the estate
and property of Lender in the Property(ies) for the satisfaction of Manager's
remedies for the collection of a judgement (or other judicial process).

          10.  Attornment by Manager.  Owner, Lessee and Manager hereby agree
               ---------------------
that upon conveyance of title to the Property(ies), to the Successor Owner,
Manager shall attorn to the Successor Owner and shall continue to perform all of
Manager's obligations under the terms of the Management Agreement with respect
to the Properties in accordance with the terms of the Management Agreement.
Notwithstanding the foregoing, the Manager shall be under no obligation to so
attorn unless the Successor Owner (it being acknowledged and agreed by the
Lender that such Successor Owner must satisfy the requirements set forth in
Section 18.01(A)(2) of the Management Agreement), within twenty (20) days after
the date of Foreclosure, assumes all of the obligations of the "Lessee" under
the Management Agreement which arise from and after such date, pursuant to a
written assumption agreement which shall be delivered to Manager; provided,
                                                                  --------
however, pursuant to Section 14 hereof and at Lender's option, Manager and
-------
Successor Owner, as applicable, shall terminate the then-existing Management
Agreement and enter into a new management agreement in accordance with Section
18.01(A)(2) of the Management Agreement which shall be effective as of the date
that Successor Owner obtains title to any applicable Property.

          11.  Intentionally Omitted.
               ---------------------

          12.  Intentionally Omitted.
               ---------------------

          13.  Notice and Opportunity to Cure.
               ------------------------------

               (a) In the event of a default by Lessee in the performance or
observance of any of the terms and conditions of the Management Agreement,
Manager shall give a duplicate copy (herein referred to as the "First Notice")
                                                                ------------
of any notice to be delivered to Lessee pursuant to the terms of the Management
Agreement to Lender in accordance with Section 24 of this Agreement. In
addition, in the event that such default is not cured within the applicable cure
period under the terms of the Management Agreement, and Manager intends to
exercise its remedy of terminating the Management Agreement, Manager shall send
a second notice (the "Second Notice") to Lender, in accordance with Section 24
                      -------------
hereof, stating Manager's intention to terminate the Management Agreement.
Unless otherwise required by applicable law, Manager shall forebear from taking
any action to terminate the Management Agreement for a period of thirty (30)
days after the service of the First Notice, and for an additional period of
sixty (60) days after the service of the Second Notice (if such Second Notice is
required, as set forth above) for a monetary event of default or a non-monetary
default which is susceptible to being cured by the Lender and for an additional
period of two hundred seventy (270) days after the service of the Second Notice
for an event of default of a non-monetary nature which is not susceptible to
being cured by the Lender (i.e., the Borrower has become the debtor in a
proceeding under the U.S. Bankruptcy Code); provided, however, that during such
forbearance period, the Lender must be diligently pursuing its remedies against
the Lessee under the Loan Documents.

                                      -5-
<PAGE>

          (b)  No notice given by Manager to Lessee shall be effective as a
notice under the terms of the Management Agreement unless the applicable
duplicate notice to Lender which is required under subsection (a) of this
Section 13 (either the First Notice or the Second Notice, as the case may be) is
given to Lender in accordance with this Agreement. It is understood that any
failure by Manager to give such a duplicate notice (either the First Notice or
the Second Notice, as the case may be) to Lender shall not be a default by
Manager either under this Agreement or under the Management Agreement, but
rather shall operate only to void the effectiveness of any such notice by
Manager to Lessee under the terms of the Management Agreement.

          (c)  Manager agrees to accept performance by Lender with the same
force and effect as if performed by Lessee, in accordance with the provisions
and within the cure periods prescribed in the Management Agreement (except that
Lender shall have such additional cure periods, not available to Lessee, as are
set forth in subsection (a) hereof).

          (d)  Except as specifically limited in the foregoing paragraphs,
nothing herein shall preclude Manager from exercising any of its rights or
remedies against Lessee or Owner with respect to any default by Lessee under the
Management Agreement.

     14.  New Management Agreement(s).  Manager agrees:
          ---------------------------

          (a)  that in the event that the Owner has any Property released from
the lien of any Security Instrument, by defeasance or otherwise, in accordance
with the terms of the Loan Documents, Manager shall enter into a new management
agreement which will govern the management of only those properties remaining
subject to the Lender's lien. Calculations required under any new management
agreement shall exclude any income or other funds generated by any property that
is not subject to management by the Manager under such newly executed management
agreement.

          (b)  that in the event that the Lender forecloses on all Properties
pursuant to its rights and remedies under the Loan Documents, upon completion of
the Foreclosure, Manager shall, if requested by Lender, Lender's nominee, or any
Successor Owner, enter into a new management agreement with the Successor Owner,
as applicable in accordance with the terms of Section 18.01 (A)(2) of the
Management Agreement.

     15.  Assignment of Proceeds.  As further security for the Note, Owner
          ----------------------
has executed and delivered to Lender an assignment of leases and rents which is
contained within the granting clause of the Deed of Trust, assigning to Lender,
among other things, all of Owner's right, title and interest in and to all of
the revenues of the Properties.  Manager acknowledges disclosure of the
aforesaid assignment

     16.  Rights of First Offer or Purchase Options.  While the Loan remains
          -----------------------------------------
unpaid and outstanding, Manager hereby agrees that its option to purchase or
right of first refusal to negotiate or purchase pursuant to the Management
Agreement (including, without limitation, the right of first refusal described
in Section 18.01 of the Management Agreement), shall not be exercisable or
enforceable and shall have no force or effect with respect to the acquisition by
Lender, Lender's affiliate or any other holder of the Security Instrument(s)
through Foreclosure

                                      -6-
<PAGE>

of any Security Instrument. Additionally, the Foreclosure by Lender, Lender's
affiliate or any other holder of the Security Instrument(s) of any Property does
not constitute an offer to purchase that invokes the Manager's right of first
refusal.

     17.  Insurance Requirements.  Notwithstanding anything to the contrary
          ----------------------
contained in the Management Agreement, Manager hereby acknowledges and agrees
that during the term of the Loan, any insurance policies or coverage required to
be maintained by Owner or Lessee for each Property shall be procured and
maintained by Manager, on behalf of the Owner or Lessee, as applicable, in
accordance with the terms of the Management Agreement.  Manager agrees that it
will provide Lender with all information with regard to the existence and
substance of such insurance policies as is reasonably requested by the Lender.

     18.  Manager Acknowledgement and Consent to Loan Documents.  Manager
          -----------------------------------------------------
hereby acknowledges receipt of the Loan Documents and agrees that the sections
of the Loan Documents referenced in subparagraphs (a) through (c) below
pertaining to:

          (a)  deposits into, disbursements from, and the operation and
maintenance of, the Replacement Reserve, the Tax and Insurance Reserve and the
Debt Service Reserve Account (specifically, Sections 6.1 through 6.5 and 6.8
through 6.11 and Exhibit B of the Loan Agreement);

          (b)  the application of insurance proceeds and condemnation awards
(specifically, Sections 8.1 through 8.3 of the Loan Agreement); and

          (c)  insurance requirements for each Property (specifically, Section
1.1 (the definition of "Insurance") and Sections 5.5 of the Loan Agreement)
shall govern in the event that any one or more of the aforementioned sections
of the Loan Documents are inconsistent with the terms of the Management
Agreement.

     19.  Intentionally Omitted.
          ---------------------

     20.  Qualifying Debt.  Manager agrees that the Loan and the monthly
          ---------------
payments due to Lender pursuant to the terms of the Loan Agreement shall be
deemed to constitute Qualifying Debt Service (as defined in the Management
Agreement) and shall be first paid out of any Operating Profit (as defined in
the Management Agreement) under the terms of the Management Agreement, provided
that such agreement by Manager shall not be deemed to constitute a waiver of the
requirements for Qualifying Debt Service for any subsequent financings of the
Property(ies).

     21.  Further Assurances.  Manager further agrees to (i) execute such
          ------------------
affidavits and certificates as Lender shall reasonably require to further
evidence the agreements contained herein, (ii) on request from Lender, furnish
Lender with copies of such information as Lessee receives under the Management
Agreement, and (iii) cooperate with Lender's representative in any inspection of
all or any portion of any Property(ies).  Manager hereby acknowledges that some,
or all, permits, licenses and authorizations necessary for the use, operation
and maintenance of the Properties (the "Permits") may be held by, or on behalf
                                        -------
of, the Manager.  By executing this Agreement, Manager agrees that it is, or
will be, holding or providing all such

                                      -7-
<PAGE>

Permits for the benefit of Lessee. Moreover, Manager hereby agrees that, in the
event that Manager still manages the applicable Property, upon an Event of
Default, it will continue to hold such Permits for the benefit of Lender.
Manager agrees that upon termination of the Management Agreement, Manager shall
(to the extent permitted by law) assign to Owner, Lessee or to the new manager
all such Permits in accordance with Section 4.03(D) of the Management Agreement.

          22.  Manager Not Entitled to Gross Revenues. Manager acknowledges and
               --------------------------------------
agrees that it is collecting and processing the Gross Revenues (as defined in
the Management Agreement) solely in its capacity as an independent contractor of
Lessee, such Gross Revenues are the sole property of the Owner and Lessee,
encumbered by the lien of the Security Instrument and other Loan Documents in
favor of Lender and Manager has no right to, or title in, the Gross Revenues
except as provided in the Management Agreement, or at law or equity. In any
bankruptcy, insolvency or similar proceeding the Manager, or any trustee acting
on behalf of the Manager, waives any claim to such Gross Revenues other than
pursuant to the terms and conditions of the Management Agreement or at law or
equity.

          23.  Governing Law. This Assignment shall be governed, construed,
               -------------
applied and enforced in accordance with the laws of the State of Maryland and
the applicable laws of the United States of America.

          24.  Notices. All notices and other communications shall have been
               -------
duly given and shall be effective (a) when delivered, (b) when transmitted via
telecopy (or other facsimile device) to the number set forth below, (c) the day
following the day on which the same has been delivered prepaid to a reputable
national overnight air courier service, (d) the third (3/rd/) Business Day
following the day on which the same is sent by certified or registered mail,
postage prepaid, or (e) the day a communication sent by registered or certified
mail, postage prepaid, is not accepted, in each case to the respective party at
the address set forth below, or at such other address as such party may specify
by written notice to the other party hereto. No notice of change of address
shall be effective except upon actual receipt. This Section 24 shall not be
construed in any way to affect or impair any waiver of notice or demand provided
in any Loan Document or to require giving of notice or demand to or upon any
Person in any situation or for any reason. In addition to the foregoing, the
Manager, Lender, Owner and Lessee may, from time to time, specify to the other
party additional notice parties by providing to the other party written notice
of the name, address, telephone number and telecopy number of any such
additional notice party. Each such additional notice party shall be entitled to
receive and/or give any notice required or permitted to be given under this
Agreement:

If to Lender:       Wells Fargo Bank Minnesota, N.A., as Trustee
                    c/o Bank of America, N.A.
                    Capital Markets Servicing Group
                    Mail Code: CA9-703-26-10
                    P.O. Box 3609
                    Los Angeles, California 90051
                    Attn: Servicing Manager
                    Telephone: (800) 574-0169
                    Facsimile No.: (213) 345-6587

                                      -8-
<PAGE>

With a copy to:     Cadwalader, Wickersham & Taft
                    227 West Trade Street, Suite 2400
                    Charlotte, North Carolina 28210
                    Attention: James P. Carroll, Esq.
                    Facsimile No.: (704) 348-5200

If to Owner:        Residence Inn III LLC
                    c/o Apple Hospitality Two, Inc.
                    10 South Third Street
                    Richmond, Virginia 23219
                    Attention: General Counsel
                    Facsimile No.: (___) ___-____

If to Lessee:       Apple Hospitality Management, Inc.
                    c/o Apple Hospitality Two, Inc.
                    10 South Third Street
                    Richmond, Virginia 23219
                    Attention: General Counsel
                    Facsimile No.: (___) ___-____

If to Manager:      Residence Inn by Marriott, Inc.
                    c/o Marriott International, Inc.
                    10400 Fernwood Road
                    Bethesda, Maryland 20817
                    Attention: Senior Vice President, Global
                    Asset Management (Dept. 51/911.95)

with a copy to:     Marriott International, Inc.
                    10400 Fernwood Road
                    Bethesda, Maryland 20817
                    Attention: Law Department, North American
                    Lodging Operations Attorney (Dept. 52/923.27)

          25.  No Oral Change. This Agreement, and any provisions hereof, may
               --------------
not be modified, amended, waived, extended, changed, discharged or terminated
orally or by any act or failure to act on the part of Owner, Lessee, Lender or
Manager, but only by an agreement in writing signed by the party against whom
enforcement of any modification, amendment, waiver, extension, change, discharge
or termination is sought.

          26.  Successors and Assigns. This Assignment shall be binding upon
               ----------------------
and inure to the benefit of Manager, Owner, Lessee, and Lender and their
respective successors and assigns forever. Moreover, the term "Lender", for the
purposes of this Agreement, shall be deemed to include any nominee or designee
appointed by Lender in connection with any Foreclosure and any Successor Owner
to whom Manager is required to attorn pursuant to Section 10 hereof.

                                      -9-
<PAGE>

          27.  Inapplicable Provisions. If any term, covenant or condition of
               -----------------------
this Agreement is held to be invalid, illegal or unenforceable in any respect,
this Agreement shall be construed without such provision.

          28.  Headings, etc. The headings and captions of various paragraphs
               -------------
of this Agreement are for convenience of reference only and are not to be
construed as defining or limiting, in any way, the scope or intent of the
provisions hereof.

          29.  Duplicate Originals, Counterparts. This Agreement may be
               ---------------------------------
executed in any number of duplicate originals and each duplicate original shall
be deemed to be an original. This Agreement may be executed in several
counterparts, each of which counterparts shall be deemed an original instrument
and all of which together shall constitute a single Agreement. The failure of
any party hereto to execute this Agreement, or any counterpart hereof, shall not
relieve the other signatories from their obligations hereunder.

          30.  Number and Gender. Whenever the context may require, any
               -----------------
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

          31.  No Transfer. Without the consent of Lender, Manager shall not,
               -----------
except as expressly permitted in the Management Agreement, sell, transfer, or
assign any of Manager's interest in the Management Agreement.

          32.  The Loan. In no event shall this Agreement or any other
               --------
circumstances surrounding the Loan be construed to involve: (i) any
representation by Manager that it endorses, approves, recommends or otherwise
concurs in the Loan, (ii) any guarantee or assurance by Manager that Owner will
necessarily be in a financial position to repay the Loan in accordance with its
terms, (iii) any endorsement, approval, recommendation or concurrence in any
financial projections submitted by Owner to Lender, or (iv) any endorsement by
Manager, approval, or recommendation of Owner's or Lessee's character or
reputation by Manager; it being understood as to all such matters that the
decision of Lender to provide the Loan was made by Lender without intervention
or support by Manager.

          33.  Miscellaneous. Wherever pursuant to this Agreement it is provided
               -------------
that Owner or Lessee shall pay any costs and expenses, such costs and expenses
shall include, but not be limited to, legal fees and disbursements of Lender,
whether retained firms, the reimbursement for the expenses of in-house staff or
otherwise.

          34.  Subordination of Incentive Management Fee and Building Estimates.
               ----------------------------------------------------------------
Notwithstanding anything contained in this Agreement to the contrary and at all
times and in all circumstances during the term of the Loan, the Manager hereby
acknowledges and agrees that the payment to Manager of any Incentive Management
Fees and Building Estimates (as defined in the Management Agreement) shall be
subordinate to the payment to the Lender of the Qualifying Debt Service.

          35.  Prohibition on Loans. Notwithstanding any provision herein to
               --------------------
the contrary, for such time as the Loan is outstanding, Owner and Lessee shall
be prohibited from

                                      -10-
<PAGE>

receiving or obtaining any Marriott Loan or Additional Inn Investment Loan (as
such terms are defined in the Management Agreement) or other loans of a similar
nature.

          36.  Termination of Agreement. At such time as the Loan is paid in
               ------------------------
full and all of the Security Instruments are released or assigned of record,
this Agreement and all of Lender's right, title and interest hereunder with
respect to the Management Agreement shall terminate. Notwithstanding the
foregoing, all provisions contained in this Agreement that pertain to the
relationship of the Manager to the Lender or the Lender's nominee in the event
that the Lender or its nominee have succeeded to the interests of the "Lessee"
under the Management Agreement, the terms of this Agreement shall survive until
such time as the Lender or its nominee is no longer the "Lessee" under the
Management Agreement.

                     (SIGNATURE PAGE IMMEDIATELY FOLLOWS)

                                      -11-
<PAGE>

          IN WITNESS WHEREOF the undersigned have executed this Agreement and
Consent as of the date and year first written above.

                                        OWNER:

                                        RESIDENCE INN III LLC,
                                        a Delaware limited liability company

                                        By: /s/ Glade M. Knight
                                           -------------------------------------
                                        Name: Glade M.  Knight
                                             -----------------------------------
                                        Title  President
                                              ----------------------------------

                                        LESSEE:

                                        APPLE HOSPITALITY MANAGEMENT INC., a
                                        Virginia corporation

                                        By: /s/ Glade M. Knight
                                           -------------------------------------
                                        Name: Glade M. Knight
                                             -----------------------------------
                                        Title  President
                                              ----------------------------------

                                        LENDER:

                                        WELLS FARGO BANK MINNESOTA, N.A., as
                                        Trustee for the Registered
                                        Certificateholders of Banc of America
                                        Commercial Mortgage Inc. Commercial
                                        Mortgage Pass-Through Certificates,
                                        Series 2000-2

                                      S-1
<PAGE>

                                        By:  ORIX Capital Markets, LLC, a
                                             Delaware limited liability company
                                             (f/k/a ORIX Real Estate Capital
                                             Markets, LLC, a Delaware limited
                                             liability company), as Master
                                             Servicer

                                             By: /s/ [illegible]
                                                --------------------------------
                                             Its: Portfolio Manager
                                                 -------------------------------

                                        MANAGER:

                                        RESIDENCE INN BY MARRIOTT, INC.,
                                        a Delaware corporation

                                        By:  /s/ Joel M. Eisenmann
                                             -----------------------------------
                                             Name: Joel M. Eisenmann
                                                  ------------------------------
                                             Title: Vice President
                                                   -----------------------------

                                      S-2
<PAGE>

                                   EXHIBIT A
                                   ---------

                             MANAGEMENT AGREEMENT

                                   [omitted]

                                      A-1<PAGE>

================================================================================

                           FIRST AMENDED AND RESTATED

                         RECEIVABLES PURCHASE AGREEMENT

                                     among

                            TRANSMEDIA NETWORK INC.,

                          IDINE RESTAURANT GROUP INC.,

                        TRANSMEDIA SERVICE COMPANY INC.,

                                   AS SELLERS

                                      and

                                RTR FUNDING LLC,

                                  AS PURCHASER

                            DATED AS OF MAY 17, 2001

================================================================================
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<S>                                                                                                                   <C>
ARTICLE I
     DEFINITIONS...................................................................................................   1

     SECTION 1.1   DEFINITIONS.....................................................................................   1
     SECTION 1.2   OTHER TERMS.....................................................................................   2
     SECTION 1.3   COMPUTATION OF TIME PERIODS.....................................................................   2

ARTICLE II
     PURCHASE, CONVEYANCE AND SERVICING OF RECEIVABLES.............................................................   2

     SECTION 2.1   SALES...........................................................................................   2

ARTICLE III
     CONSIDERATION AND PAYMENT; REPORTING; ADMINISTRATION..........................................................   4

     SECTION 3.1   PURCHASE PRICE..................................................................................   4
     SECTION 3.2   PAYMENT OF PURCHASE PRICE.......................................................................   4
     SECTION 3.3   SETTLEMENT REPORT...............................................................................   4

ARTICLE IV
     REPRESENTATIONS AND WARRANTIES................................................................................   5

     SECTION 4.1   SELLERS' REPRESENTATIONS AND WARRANTIES.........................................................   5
     SECTION 4.2   REAFFIRMATION OF REPRESENTATIONS AND WARRANTIES BY THE SELLERS; NOTICE OF BREACH................   9

ARTICLE V
     COVENANTS OF THE SELLERS......................................................................................   9

     SECTION 5.1   COVENANTS OF THE SELLERS........................................................................   9

ARTICLE VI
     REPURCHASE OBLIGATION.........................................................................................  14

     SECTION 6.1   MANDATORY REPURCHASE............................................................................  14
     SECTION 6.2   DILUTIONS, ECT..................................................................................  14
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                                   <C>
ARTICLE VII
     CONDITIONS PRECEDENT..........................................................................................   14

ARTICLE VIII
     TERM AND TERMINATION..........................................................................................   15

     SECTION 8.1   TERM............................................................................................   15
     SECTION 8.2   EFFECT OF TERMINATION...........................................................................   16

ARTICLE IX
     MISCELLANEOUS PROVISIONS......................................................................................   16

     SECTION 9.1   AMENDMENTS, ETC.................................................................................   16
     SECTION 9.2   GOVERNING LAW; SUBMISSION TO JURISDICTION.......................................................   16
     SECTION 9.3   NOTICES.........................................................................................   16
     SECTION 9.4   SEVERABILITY OF PROVISIONS......................................................................   18
     SECTION 9.5   COLLATERAL ASSIGNMENT OF RIGHTS UNDER ORIGINATOR RECEIVABLES PURCHASE AGREEMENT; ASSIGNMENTS
                   GENERALLY.......................................................................................   18
     SECTION 9.6   FURTHER ASSURANCES..............................................................................   19
     SECTION 9.7   NO WAIVER; CUMULATIVE REMEDIES..................................................................   19
     SECTION 9.8   COUNTERPARTS....................................................................................   19
     SECTION 9.9   BINDING EFFECT; THIRD-PARTY BENEFICIARIES.......................................................   19
     SECTION 9.10  MERGER AND INTEGRATION..........................................................................   19
     SECTION 9.11  HEADINGS........................................................................................   19
     SECTION 9.12  EXHIBITS........................................................................................   19
</TABLE>

                                    EXHIBITS
<TABLE>
<S>                                                                                                                 <C>
EXHIBIT A     Principal Place of Business, Chief Executive Office,
              Jurisdiction of Formation and Location of Records....................................................   A-1

EXHIBIT B     Form of Trademark Assignment.........................................................................   B-1

Schedule I    List of Tradenames, Trademarks and Service Marks.....................................................  SI-1

Schedule I-A  List of Tradenames, Trademarks and Service Marks..................................................... SIA-1
</TABLE>

                                      ii
<PAGE>

                          FIRST AMENDED AND RESTATED
                        RECEIVABLES PURCHASE AGREEMENT
                        ------------------------------

          This FIRST AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated
as of May 17, 2001 (as amended, supplemented or otherwise modified and in effect
from time to time, this "Agreement"), among TRANSMEDIA NETWORK INC., a Delaware
                         ---------
corporation ("TMN"), IDINE RESTAURANT GROUP INC., a Delaware corporation
              ---
("iDine"), TRANSMEDIA SERVICE COMPANY INC., a Delaware corporation ("Service
  -----                                                              -------
Company"; TMN, iDine and Service Company are sometimes individually referred to
-------
herein as a "Seller" and collectively as the "Sellers"), and RTR FUNDING LLC, a
             ------                           -------
Delaware limited liability company, as purchaser (in such capacity, the
"Purchaser"). This Agreement amends and restates that certain Receivables
 ---------
Purchase Agreement, dated as of December 30, 1999 (the "Original Agreement").
                                                        ------------------

                             W I T N E S S E T H :
                             -------------------

          WHEREAS, prior to the Original Closing Date, TMN purchased certain
rights to receive and related assets (i) from the Originator pursuant to the
Originator Receivables Purchase Agreement and (ii) from TNI pursuant to the
Receivables Sale Agreement;

          WHEREAS, on the Original Closing Date each Seller sold to the
Purchaser certain rights to receive along with certain tradenames, trademarks
and service marks listed herein;

          WHEREAS, the Purchaser desires to purchase from time to time certain
rights to receive and related assets existing on the Original Closing Date and
thereafter until the Purchase Termination Date; and

          WHEREAS, the Sellers desire to sell and assign from time to time such
rights to receive and related assets to the Purchaser upon the terms and
conditions hereinafter set forth;

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is hereby agreed by and among
the Purchaser and the Sellers as follows:

                                   ARTICLE I

                                  DEFINITIONS

          SECTION 1.1. Definitions. All capitalized terms used herein have the
                       -----------
meanings specified herein or, if not so specified, the meaning specified in, or
incorporated by reference into, Annex X to the Amended and Restated Receivables
Transfer Agreement, dated as of May 17, 2001 (as amended, supplemented or
otherwise modified and in effect from time to time, the "Receivables Transfer
                                                         --------------------
Agreement"), by and among the Purchaser, as Transferor
---------

                                       1
<PAGE>

thereunder, TMN, individually and as Servicer thereunder, the Back-up Servicer,
the Initial Purchasers, the APA Bank Purchasers, The Chase Manhattan Bank, as
Administrative Agent and Successor Servicer thereunder, and the Funding Agents.

          SECTION 1.2.   Other Terms. All accounting terms not specifically
                         -----------
defined herein shall be construed in accordance with GAAP, consistently applied.
All terms used in Article 9 of the Relevant UCC, and not specifically defined
herein, are used herein as defined in such Article 9.

          SECTION 1.3.   Computation of Time Periods. Unless otherwise stated in
                         ---------------------------
this Agreement, in the computation of a period of time from a specified date to
a later specified date, the word "from" means "from and including" and the words
"to" and "until" each means "to but excluding," and the word "within" means
"from and excluding a specified date and to and including a later specified
date."

                                  ARTICLE II

               PURCHASE, CONVEYANCE AND SERVICING OF RECEIVABLES

          SECTION 2.1.   Sales.

          (a)  Upon the terms and subject to the conditions set forth herein,
each Seller hereby sells, assigns, transfers and conveys to the Purchaser, and
the Purchaser hereby purchases from each Seller, all of such Seller's right,
title and interest, whether now owned or hereafter acquired and wherever
located, in, to and under such Seller's Receivables outstanding on the Original
Closing Date and thereafter owned by such Seller (including on the Amendment
Effective Date) through any Purchase Termination Date, together with all Related
Security and Collections with respect thereto and all Proceeds of the foregoing.
Such Receivables, expressed as a Dollar amount, shall be equal to the
Outstanding Balance of the Receivables from time to time. Any sale, assignment,
transfer and conveyance hereunder does not constitute an assumption by the
Purchaser of any obligations of the Sellers, the Originator or any other Person
to the Restaurants or to any other Person in connection with the Receivables or
under any Related Security or any other agreement or instrument relating to the
Receivables.

          (b)  Each Seller agrees to record and file on or prior to the Original
Closing Date and, to the extent applicable, on the Amendment Effective Date, at
its own expense, a financing statement or statements with respect to such
Seller's Receivables and the other property described in subsection 2.1(a) sold
                                                         -----------------
by such Seller hereunder meeting the requirements of applicable state law in
such manner and in such jurisdictions as are necessary to perfect and protect
the interests of the Purchaser created hereby under the Relevant UCC against all
creditors of, and purchasers from, such Seller and the Originator, and to
deliver either the originals of such financing statements or a file-stamped copy
of such financing statements or other evidence of such filings to the Purchaser
on or prior to the Original Closing Date and, to the extent applicable, on the
Amendment Effective Date.

                                       2
<PAGE>

          (c)  Each Seller agrees that from time to time, at its expense, it
will promptly execute and deliver all instruments and documents and take all
actions as may be necessary or as the Purchaser may reasonably request in order
to perfect or protect the interest of the Purchaser in the Receivables purchased
hereunder or to enable the Purchaser to exercise or enforce any of its rights
hereunder. Without limiting the foregoing, each Seller will, in order to
accurately reflect this purchase and sale transaction, execute and file such
financing or continuation statements or amendments thereto or assignments
thereof (as permitted pursuant hereto) as may be requested by the Purchaser and
mark its respective master data processing records (or related subledger) with a
legend describing the purchase by the Purchaser of such Seller's Receivables and
the lien of the Administrative Agent (for the benefit of the Initial Purchasers
and the APA Bank Purchasers thereunder) pursuant to the Receivables Transfer
Agreement and stating "An interest in these rights to receive has been granted
to The Chase Manhattan Bank, as Administrative Agent, on behalf of the Initial
Purchasers, the APA Bank Purchasers and the Funding Agents, pursuant to a
Receivables Transfer Agreement dated as of December 30, 1999, as amended and
restated as of May [___], 2001 and as the same may be amended, supplemented or
otherwise modified and in effect." Each Seller shall, upon request of the
Purchaser, obtain such additional search reports as the Purchaser shall
reasonably request. To the fullest extent permitted by applicable law, the
Purchaser shall be permitted to sign and file continuation statements and
amendments thereto and assignments thereof without any Seller's signature.
Carbon, photographic or other reproduction of this Agreement or any financing
statement shall be sufficient as a financing statement.

          (d)  It is the express intent of the Sellers and the Purchaser that
each conveyance of the Receivables by a Seller to the Purchaser pursuant to this
Agreement be construed as a sale of such Receivables by such Seller to the
Purchaser. Further, it is not the intention of the Sellers and the Purchaser
that such conveyance be deemed a grant of a security interest in the Receivables
by any Seller to the Purchaser to secure a debt or other obligation of such
Seller. However, in the event that, notwithstanding the intent of the parties,
any Seller's Receivables are construed to constitute property of the applicable
Seller, then (i) this Agreement also shall be deemed to be, and hereby is, a
security agreement within the meaning of the Relevant UCC; and (ii) any of the
conveyances by a Seller provided for in this Agreement shall be deemed to be,
and such Seller hereby grants to the Purchaser, a security interest in, to and
under all of such Seller's right, title and interest in, to and under such
Seller's Receivables, together with all Related Security and Collections with
respect thereto and all Proceeds of the foregoing and, with respect to TMN, the
Assigned Rights, to secure the rights of the Purchaser set forth in this
Agreement or as may be determined in connection therewith by applicable law. The
Sellers and the Purchaser shall, to the extent consistent with this Agreement,
take such actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Receivables, such security interest
would be a perfected security interest in favor of the Purchaser under
applicable law and will be maintained as such throughout the term of this
Agreement.

          (e)  (i) On the Original Closing Date, each Seller sold, assigned,
transferred and conveyed to the Purchaser, and the Purchaser hereby purchased
from each Seller, an undivided interest in, to and under all such Seller's
right, title and interest in, to and under the tradenames, trademarks and
service marks listed on Schedule I hereto. (ii) Each Seller hereby

                                       3
<PAGE>

agrees to sell, assign, transfer and convey to the Purchaser, and the Purchaser
hereby agrees to purchase from each Seller, an undivided interest in, to and
under all such Seller's right, title and interest in, to and under the
tradenames, trademarks and service marks listed on Schedule I-A hereto on the
                                                   ------------
date three (3) days after the "statement of use" relating to any such tradename,
trademark and/or service mark shall have been accepted by the United States
Patent and Trademark Office ("PTO").
                              ---

                                  ARTICLE III

             CONSIDERATION AND PAYMENT; REPORTING; ADMINISTRATION

          SECTION 3.1.   Purchase Price. The purchase price for the Receivables
                         --------------
and related property conveyed to the Purchaser by the Sellers under this
Agreement on any Business Day shall be a Dollar amount equal to the product of
(i) the aggregate Outstanding Balance of the Receivables sold on such Business
Day, and (ii) one minus the then applicable Purchase Discount (the "Purchase
                  -----                                             --------
Price").
-----

          SECTION 3.2.   Payment of Purchase Price.
                         -------------------------

          (a)  The Purchase Price for each Receivable sold hereunder on any
Business Day shall be paid or provided for on such Business Day (i) by payment
in immediately available funds to the extent such funds are available in excess
of necessary working capital, or (ii) to the extent that the Purchaser does not
have sufficient cash to pay the Purchase Price, by means of capital contributed
by such Seller to the Purchaser in the form of a contribution of the additional
Receivables. To the extent that the total Purchase Price for Receivables sold
during any calendar month is not paid in full by the Purchaser on the last
Business Day of such calendar month, the applicable Seller shall be deemed to
have contributed to the Purchaser the Receivables in an aggregate principal
amount equal to such shortfall. No sales of Receivables shall be made hereunder
on and after the Purchase Termination Date.

          (b)  The Receivables with respect to which the Purchase Price therefor
is paid pursuant to Section 3.2(a)(i) are referred to herein as the "Purchased
                    -----------------                                ---------
Receivables", and the Receivables with respect to which the Purchase Price
-----------
therefor is paid pursuant to subsection 3.2(a)(ii) are referred to herein as the
                             ---------------------
"Contributed Receivables".  The Purchased Receivables and the Contributed
 -----------------------
Receivables are collectively referred to herein as the "Transferred
                                                        -----------
Receivables".
-----------

          SECTION 3.3.   Settlement Report. On the Settlement Report Date of
                         -----------------
each calendar month, TMN shall deliver to the Purchaser a monthly report,
substantially in the form of Exhibit E attached to the Receivables Transfer
Agreement, showing (i) the aggregate Purchase Price of Receivables acquired or
generated by the Sellers in the preceding month and (ii) the aggregate
Outstanding Balance of such Receivables that are Eligible Receivables.

                                       4
<PAGE>

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

          SECTION 4.1.   Sellers' Representations and Warranties. The Sellers
                         ---------------------------------------
jointly and severally represent and warrant to the Purchaser as of the Original
Closing Date, on the Amendment Effective Date and on each Business Day on which
Receivables are sold hereunder with respect to all Sellers:

          (a)  Corporate Existence and Power. Each Seller is a corporation duly
               -----------------------------
organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation and has all corporate power and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business in each jurisdiction in which its business is now conducted,
except where the failure to obtain such licenses, authorizations, consents and
approvals would not have a Material Adverse Effect.  Each Seller is duly
qualified to do business in, and is in good standing in, every other
jurisdiction in which the nature of its business requires it to be so qualified,
except where the failure to be so qualified or in good standing would not have a
Material Adverse Effect.

          (b)  Corporate and Governmental Authorization; Contravention. The
               -------------------------------------------------------
execution, delivery and performance by each Seller of the Transaction Documents
to which it is a party (i) are within such Seller's corporate powers, (ii) have
been duly authorized by all necessary corporate action, (iii) require no action
by or in respect of, or filing with, any Official Body or official thereof
(except for the filing of UCC financing statements as required by this Agreement
or as have been taken or filed and, with respect to filings other than UCC
financing statements, filings where the failure to file will not have a Material
Adverse Effect), (iv) do not contravene, or constitute a default under, any
provision of applicable Law or of the Certificate of Incorporation or Bylaws of
such Seller or of any agreement or other instrument binding upon such Seller,
except where such contravention or default would not have a Material Adverse
Effect, or (v) result in the creation or imposition of any Adverse Claim on the
assets of such Seller, or any of its Affiliates (except those created by this
Agreement).

          (c)  Valid Sale; Binding Effect. Each purchase of Receivables and
               --------------------------
Related Security by the Purchaser hereunder shall constitute a valid sale and
assignment by the applicable Seller to the Purchaser, enforceable against
creditors of, and purchasers from, such Seller. Each of the Transaction
Documents to which each Seller is a party will constitute the legal, valid and
binding obligation of such Seller, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, moratorium or other similar laws
affecting the rights of creditors and general equitable principles (whether
considered in a proceeding at law or in equity).

          (d)  Quality of Title. Immediately preceding the sale of the
               ----------------
Receivables, Related Security, Collections with respect thereto and all Proceeds
of the foregoing pursuant to this Agreement, the applicable Seller was the owner
of all of its Receivables, free and clear of all Adverse Claims. On or prior to
the date hereof and on or prior to each Business Day on which Receivables are
sold hereunder, all financing statements and other documents required to be

                                       5
<PAGE>

recorded or filed in order to perfect and protect the interest of the Purchaser
in, to and under the Receivables against all creditors of and purchasers from
the applicable Seller or the Originator will have been duly filed in each filing
office necessary for such purpose and all filing fees and taxes, if any, payable
in connection with such filings shall have been paid in full.

          (e)  Accuracy of Information. All information heretofore furnished by
               -----------------------
any Seller to the Purchaser, a Funding Agent, the Administrative Agent, an
Initial Purchaser or an APA Bank Purchaser for purposes of or in connection with
this Agreement, any other Transaction Document, or any transaction contemplated
hereby or thereby is, and all such information hereafter furnished by any Seller
to the Purchaser, a Funding Agent, the Administrative Agent, an Initial
Purchaser or an APA Bank Purchaser will be, true and accurate in every material
respect, on the date such information is stated or certified; provided, however,
                                                              --------  -------
that a breach of the representation or warranty set forth in this clause (e)
shall not give rise to a Termination Event under the Receivables Transfer
Agreement unless such breach shall continue to be unremedied for a period of
three (3) Business Days after the date on which such information was due to be
delivered.

          (f)  Tax Status. Each Seller has filed all tax returns (Federal, State
               ----------
and local) required to be filed by it and has paid or made adequate provision
for the payment of all taxes, assessments and other governmental charges.

          (g)  Action, Suits. There are no actions, suits or proceedings
               -------------
pending, or to the knowledge of any Seller threatened, against or affecting any
Seller or any Affiliate of any Seller or their respective properties, in or
before any court, arbitrator or other body, which may, individually or in the
aggregate, have a Material Adverse Effect or that involve this Agreement or the
transactions contemplated hereby.

          (h)  Place of Business; Jurisdiction of Formation. The principal place
               --------------------------------------------
of business and chief executive office of the Sellers are located at the
addresses described on Exhibit A hereof, the jurisdiction in which each Seller
was formed is listed under its name on Exhibit A, and the offices where each
Seller keeps all of its Records, are located at the addresses described on
Exhibit A hereof, or such other locations notified to the Purchaser in
accordance with this Agreement in jurisdictions where all action required by the
terms of this Agreement has been taken and completed.

          (i)  Solvency. Each Seller is not insolvent, does not have
               --------
unreasonably small capital with which to carry on its business, is able to pay
its debts generally as they become due and payable, and its liabilities do not
exceed its assets.

          (j)  Tradenames, Etc. As of the Amendment Effective Date: (i) the
               ----------------
Sellers have only the subsidiaries and divisions listed on Exhibit L to the
Receivables Transfer Agreement; and (ii) the Sellers have, within the last five
(5) years, operated only under the tradenames identified on Exhibit L to the
Receivables Transfer Agreement, and, within the last five (5) years, have not
changed their names, merged with or into or consolidated with any other
corporation or been the subject of any proceeding under Title 11, United States
Code (Bankruptcy), except as disclosed in Exhibit L to the Receivables Transfer
Agreement.

                                       6
<PAGE>

          (k)  Nature of Receivables. Each Receivable sold by the applicable
               ---------------------
Seller to the Purchaser hereunder is, on the date of its purchase or
contribution, an Eligible Receivable. Each Receivable included in the
calculation of the Net Receivables Balance was, on the date of its purchase or
contribution, an "Eligible Receivable."

          (l)  Restaurant Guidelines. Since December 1, 1999, there have been no
               ---------------------
material changes in the Restaurant Guidelines other than as permitted hereunder.

          (m)  Collections and Servicing. Since December 1, 1999, there has been
               -------------------------
no material adverse change in the ability of each Seller to service and collect
its Receivables.

          (n)  Binding Effect of Receivables and Contract. Each Receivable and
               ------------------------------------------
related Contract constitutes a legal, valid and binding obligation of the
Restaurant, enforceable against the Restaurant, subject to the effect of
bankruptcy, insolvency, reorganization or similar laws affecting creditors'
rights generally (whether considered in a proceeding at law or in equity).

          (o)  Not an Investment Company. No Seller is, or is controlled by, an
               -------------------------
"investment company" within the meaning of the Investment Company Act of 1940,
as amended, or is exempt from all provisions of such Act.

          (p)  ERISA. Each of the Sellers and its respective ERISA Affiliates is
               -----
in compliance in all material respects with ERISA, and no lien exists in favor
of the Pension Benefit Guaranty Corporation on any of the Receivables.

          (q)  Lock-Box Accounts. The names and addresses of all the Lock-Box
               -----------------
Banks, together with the account numbers of the Lock-Box Accounts at such Lock-
Box Banks, are specified in Exhibit C to the Receivables Transfer Agreement (or
at such other Lock-Box Banks and/or with such other Lock-Box Accounts, as have
been notified to the Administrative Agent and each Funding Agent and for which
Lock-Box Agreements have been executed in accordance with Section 2.8(b) of the
                                                          --------------
Receivables Transfer Agreement and delivered to the Servicer, the Administrative
Agent and each Funding Agent). All Credit Card Processors and each Restaurant
(or its designee) have been instructed to cause all payments to be made to a
Lock-Box Account, and only Collections are deposited into a Lock-Box Account;
provided, however that the deposit of cash or cash proceeds other than
--------  -------
Collections into a Lock-Box Account shall not give rise to a Termination Event
unless the Transferor, a Seller or the Servicer shall have failed to segregate
or cause to be segregated any such cash or cash proceeds from Collections within
two (2) Business Days of deposit or credit to any Lock-Box Account.

          (r)  Bulk Sales. No transaction contemplated by this Agreement
               ----------
requires compliance with any bulk sales act or similar law.

          (s)  Originator Receivables Purchase Agreement, etc.
               -------------------------------------------------

               (i)  TMN has heretofore furnished the Purchaser, the
     Administrative Agent and each Funding Agent a true and correct copy of the
     Originator Receivables Purchase Agreement.

                                       7
<PAGE>

               (ii)   TMN and, to the actual knowledge of TMN unless previously
     disclosed by TMN to the Purchaser, the Administrative Agent and each
     Funding Agent, each other party to the Originator Receivables Purchase
     Agreement have duly taken all necessary corporate, partnership or other
     organizational action to authorize the execution, delivery and performance
     of the Originator Receivables Purchase Agreement and the consummation of
     transactions contemplated thereby.

               (iii)  The DALC Purchase complies in all material respects with
     all applicable legal requirements, and all necessary governmental,
     regulatory, creditor, shareholder, partner and other material consents,
     approvals and exemptions required to be obtained by TMN and, to the actual
     knowledge of TMN unless previously disclosed by TMN to the Purchaser, the
     Administrative Agent and each Funding Agent, each other party to the
     Originator Receivables Purchase Agreement in connection with the DALC
     Purchase have been duly obtained and are in full force and effect. All
     applicable waiting periods with respect to the DALC Purchase have expired
     without any action being taken by any competent governmental authority
     which restrains, prevents or imposes material adverse conditions upon the
     consummation of the DALC Purchase.

               (iv)   The execution and delivery of the Originator Receivables
     Purchase Agreement did not, and the consummation of the DALC Purchase will
     not, violate any statute or regulation of the United States (including any
     securities law) or of any state or other applicable jurisdiction, or any
     order, judgment or decree of any court or governmental body binding TMN or
     any or its subsidiaries or, to the actual knowledge of TMN unless
     previously disclosed by TMN to the Purchaser, the Administrative Agent and
     each Funding Agent, any other party to the Originator Receivables Purchase
     Agreement, or result in a breach of, or constitute a default under, any
     material agreement, indenture, instrument or other document, or any
     judgment, order or decree, to which TMN or any of its subsidiaries is a
     party or by which TMN or any of its subsidiaries is bound or, to the actual
     knowledge of TMN unless previously disclosed by TMN to the Purchaser, the
     Administrative Agent and each Funding Agent, to which any other party to
     the Originator Receivables Purchase Agreement is a party or by which any
     such party is bound.

               (v)    No statement or representation made in the Originator
     Receivables Purchase Agreement by TMN or, to the actual knowledge of TMN
     unless previously disclosed by TMN to the Purchaser, the Administrative
     Agent and each Funding Agent, any other Person, contains any untrue
     statement of a material fact or omits to state any material fact required
     to be stated therein or necessary in order to make the statements made
     therein, in light of the circumstances under which they are made, not
     misleading.

          (t)  Computer Hardware and Software. All of the computer hardware and
               ------------------------------
software necessary for the servicing and collection of the Receivables and
Related Security is listed on Schedule I to the Receivables Transfer Agreement.

          (u)  Insurance. Each of the Sellers has insurance covering its
               ---------
respective properties, operations, personnel and businesses, which insurance is
in amounts and insures

                                       8
<PAGE>

against such losses and risks as are adequate in the judgement of the Funding
Agents to protect each of them and their respective businesses except where a
failure to hold any such insurance could not in the reasonable judgment of the
Funding Agents be expected to have a Material Adverse Effect. None of the
Sellers has received notice from any insurer or agent of such insurer that
capital improvements or other expenditures are required or necessary to be made
in order to continue such insurance.

          SECTION 4.2.   Reaffirmation of Representations and Warranties by the
                         ------------------------------------------------------
Sellers; Notice of Breach. On the Original Closing Date and on each Business
-------------------------
Day on which Receivables are sold hereunder, each Seller shall be deemed to have
certified that all representations and warranties described in Section 4.1 are
                                                               -----------
true and correct on and as of such day as though made on and as of such day.
The representations and warranties set forth in Section 4.1 shall survive (i)
                                                -----------
the conveyance of the Receivables to the Purchaser, (ii) the termination of the
rights and obligations of the Purchaser and the Sellers under this Agreement and
(iii) the termination of the rights and obligations of the Transferor, TMN, the
Administrative Agent, the Initial Purchasers, the APA Bank Purchasers and each
Funding Agent under the Receivables Transfer Agreement. Upon discovery by the
Purchaser or any Seller of a breach of any of the foregoing representations and
warranties, the party discovering such breach shall give prompt written notice
to the other within three (3) Business Days of such discovery.

                                   ARTICLE V

                           COVENANTS OF THE SELLERS

          SECTION 5.1.   Covenants of the Sellers. Each Seller hereby covenants
                         ------------------------
and agrees with the Purchaser that, for so long as this Agreement is in effect,
and until all Transferred Receivables, shall have been paid in full or written-
off as uncollectible, and all amounts owed by such Seller pursuant to this
Agreement have been paid in full, unless the Purchaser otherwise consents in
writing, each Seller covenants and agrees as follows:

          (a)  Conduct of Business. Each Seller will, and will cause each of its
               -------------------
Affiliates to, carry on and conduct its business in substantially the same
manner and in substantially the same fields of enterprise as it is presently
conducted and do all things necessary to remain duly incorporated, validly
existing and in good standing as a domestic corporation in its jurisdiction of
incorporation and will maintain all requisite authority to conduct its business
in each jurisdiction in which its business is conducted to the extent that the
failure to maintain such authority would have a Material Adverse Effect.

          (b)  Compliance with Laws. Each Seller will, and will cause each of
               --------------------
its Affiliates to, comply in all material respects with all Laws to which it may
be subject, except where the failure to so comply would not have a Material
Adverse Effect.

          (c)  Furnishing of Information and Inspection of Records. Each Seller
               ---------------------------------------------------
will furnish to the Purchaser from time to time such information with respect to
such Seller's Receivables as the Purchaser may reasonably request, including,
without limitation, listings
<PAGE>

identifying the Restaurant and the Outstanding Balance for each of its
Receivables, together with an aging of such Receivables. Each Seller will, at
any time and from time to time during regular business hours and upon reasonable
notice permit the Purchaser, or its agents, representatives or assigns, (i) to
examine and make copies of and abstracts from all Records and (ii) to visit the
offices and properties of such Seller for the purpose of examining such Records,
and to discuss matters relating to its Receivables or such Seller's performance
hereunder and under the other Transaction Documents to which such Seller is a
party with any of the officers, directors, employees or independent public
accountants of such Seller having knowledge of such matters.

          (d)  Keeping of Records and Books of Account. Each Seller will
               ---------------------------------------
maintain a system of accounting established and administered in accordance with
GAAP, consistently applied, and will maintain and implement administrative and
operating procedures (including, without limitation, an ability to recreate
records evidencing Receivables in the event of the destruction of the originals
thereof), and keep and maintain, or obtain, as and when required, all documents,
books, records and other information reasonably necessary or advisable for the
collection of all Receivables (including, without limitation, records adequate
to permit the daily identification of each Receivable and all Collections of and
adjustments to each existing Receivable). Each Seller will give the Purchaser
prompt notice of any material change in the administrative and operating
procedures referred to in the previous sentence.

          (e)  Performance and Compliance with Receivables and Contracts. Each
               ---------------------------------------------------------
Seller at its expense will timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the
Contracts related to the Receivables; provided, however, that a breach of the
                                      --------  -------
covenant set forth in this cause (e) shall not give rise to a Termination Event
under the Receivables Transfer Agreement unless such breach shall continue to be
unremedied for a period of three (3) Business Days after the earlier of (i) the
date on which a Responsible Officer of a Seller has knowledge of such failure to
fully perform and comply and (ii) the date on which written notice of such
failure to fully perform and comply has been given to the applicable Seller.

          (f)  Restaurant Guidelines. Each Seller will comply in all material
               ---------------------
respects with the Restaurant Guidelines in regard to each Receivable and the
related Contract; provided, however, that a breach of the covenant set forth in
                  --------  -------
this clause (f) shall not give rise to a Termination Event under the Receivables
Transfer Agreement unless such breach shall continue to be unremedied for a
period of three (3) Business Days after the earlier of (i) the date on which a
Responsible Officer of a Seller has knowledge of such failure to comply and (ii)
the date on which written notice of such failure to comply has been given to the
applicable Seller.

          (g)  Collections. Each Seller shall instruct all Restaurants (or its
               -----------
designee) and Credit Card Processors to cause all Collections to be deposited
directly to a Lock-Box Account.

          (h)  Collections Received. Each Seller shall hold in trust, and
               --------------------
deposit immediately (but in any event no later one Business Day following its
receipt thereof) to a Lock-Box Account all Collections received from time to
time by such Seller. Each Seller agrees not to deposit or otherwise credit or
cause or permit to be so deposited or credited, to such account, cash or cash
proceeds other than Collections of Receivables; provided, however that the
                                                --------  -------
deposit

                                      10
<PAGE>

of cash or cash proceeds other than Collections into a Lock-Box Account shall
not give rise to a Termination Event unless the Transferor, a Seller or the
Servicer shall have failed to segregate or cause to be segregated any such cash
or cash proceeds from Collections within two (2) Business Days of deposit or
credit to any Lock-Box Account.

          (i)  Sale Treatment. Each Seller agrees to treat each conveyance
               --------------
hereunder for all purposes (including, without limitation, tax and financial
accounting purposes) as a sale and, to the extent any such reporting is
required, shall report the transactions contemplated by this Agreement on all
relevant books, records, tax returns, financial statements and other applicable
documents as a sale of the Receivables to the Purchaser.

          (j)  No Sales, Liens, Etc. Except as otherwise provided herein, no
               --------------------
Seller will sell, assign (by operation of law or otherwise) or otherwise dispose
of, or create any Adverse Claim upon (or the filing of any financing statement)
or with respect to (x) any of its Receivables, Related Security, Collections or
Proceeds with respect thereto, (y) any inventory or goods, the sale of which may
give rise to a Collection or (z) any Lock-Box Account to which any Collections
of any of its Receivables are sent, or assign any right to receive income in
respect thereof.

          (k)  No Extension or Amendment of Receivables. No Seller will extend,
               ----------------------------------------
amend or otherwise modify the terms of any Receivable, or amend, modify or waive
any term or condition of any Contract related thereto, except as provided in the
Receivables Transfer Agreement or as contemplated by the Restaurant Guidelines,
without the prior written consent of the Purchaser, the Administrative Agent and
each Funding Agent.

          (l)  No Change in Business or Restaurant Guidelines. Except as
               -----------------------------------------------
provided in the Receivables Transfer Agreement, no Seller will make any change
in the character of its business or in the Restaurant Guidelines, which change
would, in either case, impair the collectibility of any Receivable or otherwise
have a Material Adverse Effect.

          (m)  No Mergers, Etc. No Seller will, without the prior written
               ---------------
consent of each Funding Agent (which consent shall be obtained by the
Administrative Agent), (i) consolidate or merge with or into any other Person,
or (ii) sell, lease or transfer all or substantially all of its assets to any
other Person; provided, that a Seller may merge with another Person if such
              --------
Seller is the surviving corporation and such merger or consolidation does not
cause a Termination Event or Potential Termination Event under the Receivables
Transfer Agreement.

          (n)  Change in Payment Instructions to Restaurants; Deposits to Lock-
               ---------------------------------------------------------------
Box Accounts. No Seller will add or terminate, or make any change to, any Lock-
------------
Box Account, except in accordance with the Receivables Transfer Agreement. No
Seller will deposit or otherwise credit, or cause or permit to be so deposited
or credited, to any Lock-Box Account, cash or cash proceeds other than
Collections of Receivables.

          (o)  Change of Name, Etc. No Seller shall change its name, identity or
               --------------------
structure or the location of its chief executive office, unless at least ten
(10) days prior to the effective date of any such change such Seller delivers to
the Purchaser, the Administrative Agent
<PAGE>

and each Funding Agent (i) such documents, instruments or agreements, executed
by the applicable Seller as are necessary to reflect such change and to continue
the perfection of the Purchaser's interest in the Receivables, Related Security,
Collections and Proceeds with respect thereto and (ii) new or revised Lock-Box
Agreements executed by the Lock-Box Banks which reflect such change and enable
the Administrative Agent, on behalf of the Funding Agents, the Initial
Purchasers and the APA Bank Purchasers, to exercise its rights under the
Transaction Documents.

          (p) Indemnification.  Each Seller jointly and severally agrees to
              ---------------
indemnify, defend and hold the Purchaser and its assigns harmless from and
against any and all loss, liability, damage, judgment, claim, deficiency, or
expense (including interest, penalties, reasonable attorneys' fees and amounts
paid in settlement) to which the Purchaser may become subject insofar as such
loss, liability, damage, judgment, claim, deficiency, or expense arises out of
or is based upon a breach by any Seller of its representations, warranties and
covenants contained herein, or any information certified in any schedule or
certificate delivered by any Seller hereunder or in connection with the
Transaction Documents, being untrue in any material respect at any time;
provided that in no event shall this Section 5.1(p) be construed to include
--------                             --------------
uncollectibility of any Receivable for credit-related reasons pertaining to the
related Restaurant.  Any indemnification pursuant to this Section 5.1(p) shall
                                                          --------------
be had only from the assets of the Sellers and shall not be payable from
Collections, except to the extent such Collections are released to a Seller in
accordance with the Receivables Transfer Agreement.  The obligations of the
Sellers under this Section 5.1(p) shall be considered to have been relied upon
                   --------------
by the Purchaser, the Administrative Agent and the Funding Agents and shall
survive the execution, delivery, performance and termination of this Agreement
for a period of three (3) years following the Purchase Termination Date,
regardless of any investigation made by the Purchaser, the Administrative Agent
or the Funding Agents or on behalf of any of them.

          (q) ERISA.  No Seller will (i) engage or permit any of its respective
              -----
ERISA Affiliates to engage in any prohibited transaction (as defined in Section
4975 of the Code and Section 406 of ERISA) for which an exemption is not
available or has not previously been obtained from the U.S. Department of Labor;
(ii) permit to exist any accumulated funding deficiency (as defined in Section
302(a) of ERISA and Section 412(a) of the Code) or funding deficiency with
respect to any Benefit Plan other than a Multiemployer Plan; (iii) fail to make
any payments to any Multiemployer Plan that such Seller or any ERISA Affiliate
of such Seller is required to make under the agreement relating to such
Multiemployer Plan or any law pertaining thereto; (iv) terminate any Benefit
Plan so as to result in any liability; or (v) permit to exist any occurrence of
any reportable event described in Title IV of ERISA which represents a material
risk of a liability to such Seller or any ERISA Affiliate of such Seller under
ERISA or the Code, if such prohibited transactions, accumulated funding
deficiencies, payments, terminations and reportable events occurring within any
fiscal year of the Transferor and such Seller, in the aggregate, involve a
payment of money or an incurrence of liability by the Transferor, such Seller or
any ERISA Affiliate of the Transferor or such Seller.

          (r) Insurance.  Except to the extent failure to do so would not
              ---------
reasonably be expected to cause a Material Adverse Effect, each Seller shall (i)
keep its insurable properties adequately insured at all times by financially
sound and responsible insurers and maintain such

                                      12
<PAGE>

other insurance, to such extent and against such risks, including fire and other
risks insured against by extended coverage, as is customary with companies of
the same or similar size in the same or similar businesses, (ii) maintain in
full force and effect public liability insurance against claims for personal
injury or death or property damage occurring upon, on, about or in connection
with the use of any properties owned, occupied or controlled by it or any
Subsidiary, as the case may be, in such amounts and with such deductibles as are
customary with companies of the same or similar size in the same or similar
businesses and in the same geographic area and (iii) maintain such other
insurance as may be required by Law, and will cause each of its Subsidiaries to
do so.

          (s) Rebates, Taxes and Tips and Processing Fees.  Each Seller shall
              -------------------------------------------
promptly pay all Rebates, taxes and tips and Processing Fees due and owing out
of Collections remitted to a Seller for such purposes pursuant to Section 2.5
                                                                  -----------
and 2.6 of the Receivables Transfer Agreement.
    ---

          (t) DALC Trade Name and Service Mark.  No Seller will sell, assign (by
              --------------------------------
operation of law or otherwise) or otherwise dispose of the DALC trade name and
service mark.

          (u) Originator Receivables Purchase Agreement.  TMN shall keep the
              -----------------------------------------
Purchaser, the Administrative Agent and each Funding Agent informed of all
material circumstances, known to it, bearing upon the Assigned Rights, and TMN
shall not waive any of the Assigned Rights (as defined in Section 9.5(a) hereof)
                                                          --------------
or amend, modify or supplement the Originator Receivables Purchase Agreement
without the prior consent of the Purchaser, the Administrative Agent and each
Funding Agent.

          (v) Minimum Net Worth.  TMN and its consolidated subsidiaries (as
              -----------------
defined in accordance with GAAP) shall at all times have a net worth (as defined
in accordance with GAAP) of at least $24,000,000.

          (w) Origination.  Each Seller shall originate the Receivables under
              -----------
the Registered Card Program and Private Label Program in an evenhanded manner,
with no one program being favored over the other.

          (x) No Contest.  No Seller shall contest the Purchaser's (or the
              ----------
Purchaser's assignees') right, title and interest in, to and under any
tradenames, trademarks and/or service marks sold, assigned, transferred and
conveyed by any such Seller to the Purchaser pursuant to Section 2.1(e).
                                                         --------------

          (y) Statements of Use.  Within fifteen (15) days after the first use
              -----------------
in interstate commerce of any trademark, tradename or service mark listed on
Schedule I-A, the applicable Seller shall file a "statement of use" with the PTO
------------
relating to such trademark, tradename or service mark and shall use its best
efforts to obtain the acceptance of such "statement of use" thereafter.
Immediately upon acceptance of such "statement of use" by the PTO, the
applicable Seller shall assign such trademark, tradename or service mark to the
Purchaser by use of a form substantially similar to Exhibit B.
                                                    ---------

                                      13
<PAGE>

                                  ARTICLE VI

                             REPURCHASE OBLIGATION

          SECTION 6.1.   Mandatory Repurchase.
                         --------------------

          (a) Breach of Warranty.  If, on any day, any Receivable which has been
              ------------------
sold by any Seller hereunder and which has been reported by such Seller as an
Eligible Receivable, shall fail to meet the conditions set forth in the
definition of Eligible Receivable on the date of such sale and in connection
with the circumstances giving rise to such breach (i) the rights and interests
of the Purchaser in such Receivable, Related Security, Collections with respect
thereto or the Proceeds thereof are in any manner materially and adversely
impaired or (ii) such Receivable is not available to the Purchaser free and
clear of any Adverse Claim, such Seller shall be deemed to have received on such
day a Collection of such Receivable in full and shall on such day pay to the
Purchaser an amount equal to the aggregate Outstanding Balance of such
Receivable.

          (b) Reconveyance Under Certain Circumstances.  Each Seller agrees
              ----------------------------------------
that, if on any date the Administrative Agent, a Funding Agent or the Purchaser
notifies such Seller or such Seller discovers that any of the representations
and warranties made herein is untrue or incorrect with respect to a Receivable
in any material respect as of the date such representation or warranty was made,
such Seller shall accept the reconveyance of such Receivable on such date.  In
the event of a reconveyance under this Section 6.1(b), the applicable Seller
                                       --------------
shall pay to the Purchaser in immediately available funds on such date of
reconveyance an amount equal to the Outstanding Balance of any such Receivable.

          SECTION 6.2.   Dilutions, Ect.  Each Seller agrees that if on any day
                         ---------------
the Outstanding Balance of a Receivable which has been sold by a Seller
hereunder is reduced as a result of any dilution factor, any billing adjustment
or other adjustment, then such Seller shall be deemed to have received on such a
day a collection of such Receivable in the amount of such reduction and shall on
such day pay to the Purchaser an amount equal to such Dilution Adjustment.

                                  ARTICLE VII

                             CONDITIONS PRECEDENT

          The obligations of the Purchaser to purchase the Receivables on the
Original Closing Date and on any Business Day on which Receivables are sold or
contributed hereunder shall be subject to the satisfaction of the following
conditions:

          (a) All representations and warranties of the Sellers contained in
this Agreement shall be true and correct on the Original Closing Date, on the
Amendment Effective Date and on the applicable Business Day of sale or
contribution, with the same effect as though such representations and warranties
had been made on such date;

                                      14
<PAGE>

          (b) All information concerning the Receivables provided to the
Purchaser shall be true and correct in all material respects as of the Original
Closing Date, in the case of any Receivables sold on the Original Closing Date,
or on any other date such Receivables are created, in the case of any
Receivables created after the Original Closing Date and sold or contributed by
any Seller to the Purchaser on a subsequent Business Day (including as of the
Amendment Effective Date, in the case of any Receivables sold on the Amendment
Effective Date);

          (c) Each Seller shall have substantially performed all other
obligations required to be performed by the provisions of this Agreement and the
other Transaction Documents to which it is a party;

          (d) The Sellers shall have either filed or caused to be filed the
financing statement(s) required to be filed pursuant to Section 2.1(b);
                                                        --------------

          (e) All corporate and legal proceedings, and all instruments in
connection with the transactions contemplated by this Agreement and the other
Transaction Documents shall be satisfactory in form and substance to the
Purchaser, and the Purchaser shall have received from the Sellers copies of all
documents (including, without limitation, records of corporate proceedings)
relevant to the transactions herein contemplated as the Purchaser may reasonably
have requested;

          (f) The Sellers shall deliver to the Purchaser and each Funding Agent
a Weekly Report for the Weekly Settlement Period immediately preceding the
Business Day on which such Receivables are sold or contributed; and

          (g) the Purchase Termination Date shall not have occurred.

                                 ARTICLE VIII

                             TERM AND TERMINATION

          SECTION 8.1.   Term.  This Agreement shall commence as of the first
                         ----
day on which all of the conditions precedent have been satisfied and shall
continue in full force and effect until the date following the earlier of (i)
the date designated by the Purchaser or TMN as the Purchase Termination Date at
any time following ten (10) days' written notice to the other (with a copy
thereof to the Administrative Agent and each Funding Agent), (ii) the date on
which the Administrative Agent (with the consent or at the direction of the
Funding Agents), on behalf of the Initial Purchasers and the APA Bank
Purchasers, declares a Termination Event or a Potential Termination Event
pursuant to the Receivables Transfer Agreement, (iii) upon the occurrence of an
Event of Bankruptcy with respect to either the Purchaser or any Seller, (iv) the
date on which either the Purchaser or any Seller becomes unable for any reason
to purchase or re-purchase the interest of the Purchaser in any Receivable in
accordance with the provisions of this Agreement or defaults on its obligations
hereunder, which default continues unremedied for more than ten (10) days after
written notice or (v) the first anniversary of the Amendment Effective Date (any
such date being a "Purchase Termination Date"); provided, however, that the
                   -------------------------    --------  -------

                                      15
<PAGE>

termination of this Agreement pursuant to this Section 8.1 hereof shall not
                                               -----------
discharge any Person from any obligations incurred prior to such termination,
including, without limitation, any obligations to make any payments with respect
to the interest of the Purchaser in any Receivable sold prior to such
termination.

          SECTION 8.2.   Effect of Termination.  Following the termination of
                         ---------------------
this Agreement pursuant to Section 8.1, no Seller shall sell, and the Purchaser
                           -----------
shall not purchase, any Receivables.  No termination, rejection or failure to
assume the executory obligations of this Agreement in any Event of Bankruptcy
with respect to any Seller or the Purchaser shall be deemed to impair or affect
the obligations pertaining to any executed sale or executed obligations,
including, without limitation, pre-termination breaches of representations and
warranties by any Seller or the Purchaser.  Without limiting the foregoing,
prior to termination, the failure of any Seller to deliver computer records of
its Receivables or any reports regarding its Receivables shall not render such
transfer or obligation executory, nor shall the continued duties of the parties
pursuant to this Agreement render an executed sale executory.

                                  ARTICLE IX

                           MISCELLANEOUS PROVISIONS

          SECTION 9.1.   Amendments, Etc.  This Agreement and the rights and
                         ---------------
obligations of the parties hereunder may not be amended, supplemented, waived or
otherwise modified except in an instrument in writing signed by the Purchaser
and the Sellers and consented to in writing by each Funding Agent (with the
consent of the Required Participants).  Any reconveyance executed in accordance
with the provisions hereof shall not be considered an amendment or modification
to this Agreement.

          SECTION 9.2.   Governing Law; Submission to Jurisdiction.
                         -----------------------------------------

          (a) This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

          (b) The parties hereto hereby submit to the nonexclusive jurisdiction
of the United States District Court for the Southern District of New York and of
any New York state court sitting in The City of New York for purposes of all
legal proceedings arising out of or relating to this agreement or the
transactions contemplated hereby.  Each party hereto hereby irrevocably waives,
to the fullest extent it may effectively do so, any objection which it may now
or hereafter have to the laying of the venue of any such proceeding brought in
such a court and any claim that any such proceeding brought in such a court has
been brought in an inconvenient forum.  Nothing in this Section 9.2 shall affect
                                                       ------------
the right of the Purchaser to bring any other action or proceeding against any
Seller or its property in the courts of other jurisdictions.

          SECTION 9.3.   Notices.  All demands, notices and communications
                         -------
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by registered mail, return receipt requested,
to:

                                      16
<PAGE>

          (a)  in the case of the Purchaser:

               RTR FUNDING LLC
               11900 Biscayne Boulevard
               North Miami, FL 33181-9915
               Attention: Steve Lerch
               Telephone: (305)892-3343
               Telecopy: (305) 892-4230

          (b)  in the case of TMN:

               TRANSMEDIA NETWORK INC.
               11900 Biscayne Boulevard
               North Miami, FL 33181-9915
               Attention: Steve Lerch
               Telephone: (305) 892-3306
               Telecopy: (305) 892-3342

          (c)  in the case of iDine:

               IDINE RESTAURANT GROUP INC.
               11900 Biscayne Boulevard
               North Miami, FL 33181-9915
               Attention: Steve Lerch
               Telephone: (305) 892-3306
               Telecopy: (305) 892-3342

          (d)  in the case of Service Company:

               TRANSMEDIA SERVICE COMPANY INC.
               11900 Biscayne Boulevard
               North Miami, FL 33181-9915
               Attention: Steve Lerch
               Telephone: (305) 892-3306
               Telecopy: (305) 892-3342

          in each case, with a copy to:

               THE CHASE MANHATTAN BANK,
                as Administrative Agent
                and as PARCO Funding Agent
               450 West 33rd Street
               15th Floor
               New York, New York  10001
               Attention: Craig Kantor
                          Structured Finance Services
               Telephone: (212) 946-7861

                                      17
<PAGE>

               Telecopy:  (212) 946-7776

               MORGAN, LEWIS & BOCKIUS, LLP
               101 Park Avenue
               New York, NY 10178
               Attention: Stephen Farrell, Esq.
               Telephone:
               Telecopy: (212) 309-6273

               BMO NESBITT BURNS CORP.
               115 South LaSalle Street
               13 West
               Chicago, IL 60603
               Attention:  Scott Franklin
               Telephone: (312) 461-2929
               Telecopy: (312) 461-3189

or, as to each party, at such other address as shall be designated by such party
in a written notice to each other party.

          SECTION 9.4.   Severability of Provisions.  If any one or more of the
                         --------------------------
covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid, then such covenants, agreements, provisions,
or terms shall be deemed severable from the remaining covenants, agreements,
provisions, or terms of this Agreement and shall in no way affect the validity
or enforceability of the other provisions of this Agreement.

          SECTION 9.5.   Collateral Assignment of Rights Under Originator
                         ------------------------------------------------
Receivables Purchase Agreement; Assignments Generally.
-----------------------------------------------------

          (a) TMN hereby collaterally assigns all of its estate, right, title,
interest, benefits, powers and privileges (but not any obligations or
liabilities thereunder) under the Originator Receivables Purchase Agreement in
respect of the Receivables it has acquired pursuant thereto (collectively, the
"Assigned Rights") to the Purchaser and the Purchaser hereby accepts such
 ---------------
assignment.

          (b) This Agreement may not be assigned by the parties hereto, except
that the Purchaser may assign its rights (including, without limitation, the
Assigned Rights) hereunder pursuant to the Receivables Transfer Agreement to the
Administrative Agent for the benefit of the Funding Agents, the Initial
Purchasers and the APA Bank Purchasers as security for the Purchaser's repayment
obligations under the Receivables Transfer Agreement. The Purchaser hereby
notifies each Seller (and each Seller hereby acknowledges) that the Purchaser,
pursuant to the Receivables Transfer Agreement, has assigned its rights (but not
its obligations) hereunder to the Administrative Agent for the benefit of the
Funding Agents, the Initial Purchasers and the APA Bank Purchasers. All rights
of the Purchaser hereunder may be exercised by the Administrative Agent (with
the consent or at the direction of the Funding Agents) to the extent of its
rights hereunder and under the other Transaction Documents.

                                      18
<PAGE>

          SECTION 9.6.   Further Assurances.  The Purchaser and the Sellers
                         ------------------
agree to do and perform, from time to time, any and all acts and to execute any
and all further instruments required or reasonably requested by the other party
more fully to effect the purposes of this Agreement and the other Transaction
Documents, including, without limitation, the execution of any financing
statements or continuation statements or equivalent documents relating to the
Receivables for filing under the provisions of the Relevant UCC or other laws of
any applicable jurisdiction.

          SECTION 9.7.   No Waiver; Cumulative Remedies.  No failure to exercise
                         ------------------------------
and no delay in exercising, on the part of the Purchaser, any Seller, the
Administrative Agent, or a Funding Agent, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exhaustive of any rights, remedies, powers and privilege
provided by law.

          SECTION 9.8.   Counterparts.  This Agreement may be executed in two or
                         ------------
more counterparts including telecopy transmission thereof (and by different
parties on separate counterparts), each of which shall be an original, but all
of which together shall constitute one and the same instrument.

          SECTION 9.9.   Binding Effect; Third-Party Beneficiaries.  This
                         -----------------------------------------
Agreement and the other Transaction Documents will inure to the benefit of and
be binding upon the parties hereto and their respective successors and permitted
assigns.  The Administrative Agent, the Initial Purchasers, the APA Bank
Purchasers and each Funding Agent are each intended by the parties hereto to be
third-party beneficiaries of this Agreement.

          SECTION 9.10.  Merger and Integration.  Except as specifically stated
                         ----------------------
otherwise herein, this Agreement and the other Transaction Documents set forth
the entire understanding of the parties relating to the subject matter hereof,
and all prior understandings, written or oral, are superseded by this Agreement
and the other Transaction Documents.

          SECTION 9.11.  Headings.  The headings herein are for purposes of
                         --------
reference only and shall not otherwise affect the meaning or interpretation of
any provision hereof.

          SECTION 9.12.  Exhibits.  The schedules and exhibits referred to
                         --------
herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes.

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