WORKING CAPITAL AND FIXED ASSET SUPPLIES Sample Clauses

The "Working Capital and Fixed Asset Supplies" clause defines the obligations and procedures related to providing the necessary funds and physical resources required for a business's day-to-day operations and long-term investments. This clause typically outlines which party is responsible for supplying working capital—such as cash, inventory, or accounts receivable—and for procuring or maintaining fixed assets like equipment, machinery, or property. By clearly allocating responsibility for these essential resources, the clause ensures that the business can operate smoothly and that both parties understand their roles in supporting ongoing and future operational needs.
WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.01 Working Capital and Inventories ------------------------------- The parties recognize that Seller shall sell to Owner, who shall in turn provide to Management Company, as agent, the initial Working Capital and Inventories for the Inns. Management Company believes that the level of initial Working Capital so provided should be reasonably sufficient for each Inn to operate as a fully functioning Fairfield Inn as of the Effective Date (or in the case of the Development Inns, as of the their purchase dates) and for a period of at least six (6) months thereafter. Owner shall from time to time thereafter promptly advance, upon request of Management Company, any additional funds necessary to maintain Working Capital and Inventories at levels reasonably determined by Management Company to be necessary to satisfy the needs of each Inn as its operation may from time to time require. Funds so advanced for Working Capital shall be utilized by Management Company on behalf of Owner for the purposes of this Agreement pursuant to cash-management policies established for the Fairfield Inn system, but Owner shall be the beneficial owner of all such funds throughout the term of this Agreement. Upon Termination with respect to any Inn or Inns, Management Company shall return to Owner any unused Working Capital (including Inventories), except for Inventories purchased by Management Company pursuant to Section 10.02.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.1 Working Capital --------------- A. Owner shall, from time to time during the Term of this Agreement, provide Management Company, within thirty (30) days after Owner's receipt of written request therefor by Management Company, with the funds necessary to maintain Working Capital at levels determined by Management Company to be reasonably necessary to operate the Inn in accordance with the Residence Inn System Standards. Any such request by Management Company shall be accompanied by a detailed explanation of the reasons for the request. If Owner fails to respond to any such request within thirty (30) days after Owner's receipt thereof, Management Company shall be entitled, at its option, without affecting other remedies which may be available pursuant to Article XVI, to lend Owner the necessary additional Working Capital from Management Company's own funds, which loan will bear interest at the Interest Rate (compounded annually), and will be secured by a security interest subordinate to any Qualified Loan encumbering all Working Capital previously or thereafter provided by either Owner or Management Company, and will be repaid in accordance with such terms and conditions as Management Company shall at that time reasonably determine. B. Management Company will manage the Working capital of the Inn prudently and in accordance with the Residence Inn System Standards. Management Company shall review and analyze the Working Capital needs of the Inn on an annual basis. If Management Company reasonably determines that there is excess Working Capital, such excess shall be returned to Owner. C. Working Capital provided by Owner pursuant to this Section 7.1 shall remain the property of Owner throughout the Term of this Agreement. Upon Termination, Owner shall retain any of its unused Working Capital, except for Inventories purchased by Management Company pursuant to Section 10.2. D. If Owner owns other inns in the Residence Inn By Marriott System which are operated by Management Company, Management Company, at its option, may co-mingle the Working Capital for the Inn with the Working Capital account for Owner's other inn(s) in a single bank account.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.01 Working Capital and Inventories ------------------------------- Tenant shall provide the funds to initially supply the Hotel with the amount of Working Capital and Inventories which Tenant determines, in its reasonable business judgment, to be needed for the operation of the Hotel, presently estimated to be Six Hundred Forty Thousand Dollars ($640,000) for Working Capital (and Inventories). During the term hereof, Tenant shall maintain Working Capital at levels which it reasonably believes to be necessary for the operational requirements of the Hotel. All replacements to Inventories shall be funded from Gross Revenues and shall constitute a Deduction from Gross Revenues in determining Operating Profit. The Working Capital and Inventories of the Hotel shall be the property of Tenant during the term of this Lease and upon Termination.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 6.01 Working Capital and Inventories ------------------------------- Owner shall from time to time promptly advance, upon request of Management Company, any funds necessary to maintain Working Capital and Inventories at levels reasonably determined by Management Company to be necessary to satisfy the needs of each Hotel as its operation may from time to time require. Funds so advanced for Working Capital shall be utilized by Management Company on behalf of Owner for the purposes of this Agreement pursuant to cash-management policies established for the other Marriott full-service hotels owned, leased or managed by Management Company or another Marriott Affiliate in the United States, but Owner shall be the beneficial owner of all such funds throughout the term of this Agreement. Upon Termination with respect to any Hotel or Hotels, Management Company shall return to Owner any unused Working Capital (including Inventories), except for Inventories purchased by Management Company pursuant to Section 9.02.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.01 Working Capital and Inventories ------------------------------- A. As of the Effective Date, Management Company has provided the initial Working Capital for the Hotel. B. Management Company shall at all times provide the funds to supply the Hotel with the amount of Working Capital and Inventories that Management Company determines, in its reasonable business judgment, to be needed for the operation of the Hotel. The Working Capital and Inventories of the Hotel shall be the property of Management Company during the term of this Agreement and upon Termination.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.01 Working Capital ---------------- A. Subject to subsection B hereof, Owner shall, prior to the Opening Date, provide the cash necessary for the Hotel to establish a normal Working Capital level after commencing operations, in view of the volume of monthly sales projected for the initial months of operations, as reasonably and in good faith determined by Management Company. Owner shall from time to time thereafter promptly advance, upon request of the Management Company, additional cash in the amount by which the necessary Working Capital level exceeds the original Working Capital level, as reasonably and in good faith determined by the Management Company in view of the volume of the monthly sales then being experienced by the Hotel; provided that, to the extent the Hotel has suffered an Operating Loss, any request for additional Working Capital shall be regarded as a request to fund an Operating Loss, and such request shall be handled exclusively under the provisions of Section
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 6.01 Working Capital and Inventories ------------------------------- Lessee shall from time to time after the Execution Date, within thirty (30) days of a request by Manager, advance any funds necessary to maintain Working Capital and Inventories at levels reasonably determined by Manager to be necessary to satisfy the needs of each Inn as its operation may from time to time require. Funds so advanced for Working Capital shall be utilized by Manager on behalf of Lessee for the purposes of this Agreement pursuant to cash- management policies established for the System, but Lessee shall be the beneficial owner of all such funds throughout the term of this Agreement. Upon Termination with respect to any Inn or Inns, Manager shall return to Lessee any unused Working Capital and Inventories allocable to such Inn or Inns, except for Inventories purchased by Manager pursuant to Section 9.02.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES. 6.01 Working Capital --------------- Owner has, prior to the Amendment Date, provided to Manager funds for Working Capital. Owner and Manager agree that, immediately prior to the Amendment Date, a portion of such Working Capital funds in the amount of Fifty Thousand Dollars ($50,000) was deemed to be held by Manager pursuant to the new separate management agreement for the Bossier City Inn, and the balance of the Working Capital funds supplied by Owner shall continue to be held by Manager pursuant to the terms hereof. Owner shall from time to time hereafter advance within fifteen (15) days after receipt of Manager's written request any additional funds necessary to maintain Working Capital at levels determined by Manager to be necessary to satisfy the needs of each Inn as its operation may from time to time require. In the event Owner fails to advance additional Working Capital within said fifteen (15) day period, Manager may, in addition to any other rights or remedies available to it at law or in equity: (i) retain the required amounts from any portion of Operating Profit otherwise to be retained by Owner, (ii) make a Manager Loan to Owner in accordance with Section 5.05, and (iii) terminate this Agreement upon not less than thirty (30) days written notice to Owner. Funds so advanced for Working Capital shall be utilized by Manager on behalf of Owner for the purposes of this Agreement pursuant to cash- management policies established for the System. With the exception of the outstanding balance of all Working Capital advances by Manager made as Manager Loans, Owner shall be the beneficial owner of all such funds throughout the term of this Agreement. Upon Termination with respect to any Inn or Inns, Manager shall return to Owner any unused Working Capital, except for Inventories purchased by Manager pursuant to Section 9.02 and except for the outstanding balance of all Working Capital advances by Manager made as Manager Loans.
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WORKING CAPITAL AND FIXED ASSET SUPPLIES 
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