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

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.

WORKING CAPITAL AND FIXED ASSET SUPPLIES. 7.1 7.01 Working Capital --------------- A. At or prior to the Opening Date, Owner shall provide Management Company with the initial Working Capital for the Hotel in the amount set forth on Exhibit "A-1". Owner shall have the right to satisfy all or a portion of the obligation described in the preceding sentence through Owner's purchase of the working capital (including receivables) of the Hotel from Prior Owner. The fair market value (as reasonably determined by Management Company) of all Inventories which are delivered into Management Company's control as of the Opening Date shall be credited against Owner's obligation set forth in the preceding sentence. B. Owner shall, from time to time thereafter 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 Hotel in accordance with the Residence Inn System Marriott 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 (subordinated to any Qualified Loan 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. C. Management Company will manage the Working capital Capital of the Inn Hotel prudently and in accordance with the Residence Inn System Marriott Standards. Management Company shall review and analyze the Working Capital needs of the Inn Hotel on an annual basis. If Management Company reasonably determines that there is excess Working Capital, such excess shall be returned to Owner. C. D. Working Capital provided by Owner pursuant to this Section 7.1 7.01 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 10.210.02. 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.