Common use of WORKING CAPITAL AND FIXED ASSET SUPPLIES Clause in Contracts

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.

WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.01 6.01 Working Capital and Inventories ------------------------------- --------------- The parties recognize that Seller shall sell the seller under the Purchase Agreement sold to the Owner, who shall in turn provide provided to Management Companythe Manager, as agent, the initial Working Capital and Inventories for the Inns. Management Company Manager believes that the current level of initial Working Capital so provided should be reasonably sufficient for each Inn to operate as a fully functioning Fairfield Inn business 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 thereafterExecution Date. Owner Lessee shall from time to time thereafter promptly advance, upon five (5) days written request of Management CompanyManager, any additional funds necessary to maintain Working Capital and Inventories at levels reasonably determined by Management Company 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 Management Company Manager on behalf of Owner Lessee for the purposes of this Agreement pursuant to cash-cash management policies established for the Fairfield Inn systemSystem, but Owner 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, Management Company Manager shall return to Owner Lessee any unused Working Capital (including Inventories)Capital, except for Inventories purchased by Management Company Manager pursuant to Section 10.029.02.