Common use of Asset Condition Clause in Contracts

Asset Condition. (i) The inventory of finished goods, work in process and other inventory items of the Company (the “Inventory”) was acquired, created, developed or manufactured (as applicable), and is and has been at all times maintained, in the Ordinary Course of Business, and consists of items of good and merchantable quality, and of a quantity and quality usable or salable in the Ordinary Course of Business. The values at which Inventory are carried on the Company Financial Statements reflect the Inventory valuation policy of the Company, which is consistent with its past practice. The Company is not under any liability or obligation with respect to the return of any item of Inventory in the possession of its customers. All Inventory is merchantable and fit for the purposes for which it was procured or manufactured, and no Inventory is slow-moving, obsolete, damaged or defective. (ii) All tangible personal property owned or used by the Company and used or useful in the operation of the Business as now conducted, including without limitation all machinery, computer equipment, office equipment, communications equipment, safety equipment, furniture, fixtures, tools, parts and supplies, have been maintained in accordance with normal industry practice, are in good operating condition and repair (subject to normal wear and tear), and are suitable for the purposes for which they are intended.