Common use of Consignment Agreements Clause in Contracts

Consignment Agreements. The Company shall deliver to the Agent Consignor Letters duly executed by consignors of "consigned" or "memo" inventory (pursuant to any written consignment agreement or otherwise) representing at least ninety percent (90%) of the "memo" or "consigned" inventory (based on book value) of the Company and at no time following the Closing Date shall the Company suffer or permit more than ten percent (10%) of its "memo" or "consigned" inventory (based on book value) to be on consignment from consignors who have not executed and delivered to the Agent Consignor Letters. The Company further agrees to use its best efforts to deliver to the Agent Consignor Letters from each of its consignors of "memo" or "consigned" inventory and the Company further agrees that it shall not from and after the Closing Date enter into any consignment agreement or arrangement with any consignor who has not delivered to the Agent a Consignor Letter. Notwithstanding the foregoing, no Consignor Letter shall be required to be executed and delivered by Rhode Island Hospital Trust National Bank in connection with the Gold Consignment Documents so long as the Intercreditor Agreement is in full force and effect.