Exhibit 10(TT)
March 20, 1998
Palmetto Federal Savings Bank of South Carolina
P.O. Box 1116
Aiken, SC 29802
Lower Savannah Regional Development
Corporation
c/o Palmetto Federal Savings Bank of South Carolina
P.O. Box 1116
Aiken, SC 29802
Ladies and Gentlemen:
Starmet CMI Corporation, a Delaware corporation ("CMI"), has entered
into a credit facility with you (the "Loan") of even date herewith pursuant
to which CMI has executed and delivered (i) a promissory note in the
principal amount of $495,000 in favor of Palmetto Federal Savings Bank of
South Carolina ("Palmetto"); (ii) a promissory note in the principal amount
of $500,000 in favor of Lower Savannah Regional Development Corporation
("Lower Savannah"); (iii) a mortgage, security agreement and financing
statement in favor of Xxxxxxxx; and (iv) a mortgage, security agreement and
financing statement in favor of Lower Savannah, each of even date herewith
(and with all other agreements and instruments executed by CMI in connection
with the Loan, the "Loan Documents"). Palmetto and Lower Savannah also
entered into an Inter-Creditor Agreement dated as of March 20, 1998, and
CMI's parent, Starmet Corporation, executed and delivered guarantees in favor
of each of Palmetto and Lower Savannah in connection with the Loan.
The parties hereto agree, notwithstanding contrary provisions of any of
the Loan Documents, that the following states the business deal negotiated by
the parties:
1. The Loan is secured solely by equal and coordinate second mortgages
held by Xxxxxxxx and Lower Savannah on the real property (and fixtures
thereto) owned by CMI in Barnwell, South Carolina; such mortgages do not
create or impose any lien or encumbrance upon any other personal or
intangible assets owned by CMI, but relate only to the real property and
fixtures of the Barnwell property;
2. The term of the Loan is ten and one-half years. The promissory
notes evidencing the Loan will be reexecuted and the outstanding balance of
the Loan will be
Palmetto Federal Savings Bank of South Carolina
Lower Savannah Regional Development
Corporation
April 2, 1998
Page 2
refinanced on September 20, 2003; and
3. Each of the parties hereto agrees to execute such additional
documents as any party may reasonably request to further effectuate the
foregoing.
If you are in agreement with the foregoing, kindly indicate by signing
below, returning one copy of this letter agreement to me, and retaining one
for your files.
Very truly yours,
STARMET CMI CORPORATION
By: /s/ Xxxxx X. Xxxxxxx
---------------------------
Name: Xxxxx X. Xxxxxxx
-------------------------
Title: Treasurer, Starmet CMI
Corporation
------------------------
AGREED AND ACCEPTED:
PALMETTO FEDERAL SAVINGS
BANK OF SOUTH CAROLINA
By: /s/ X.X. Xxxxxxxx
--------------------------
Name: X.X. Xxxxxxxx
------------------------
Title: Vice President
-----------------------
Date: 4/6/98
------------------------
LOWER SAVANNAH REGIONAL
DEVELOPMENT CORPORATION
By: /s/ Xxxx Xxxxxxxxx
--------------------------
Name: Xxxx Xxxxxxxxx
------------------------
Title: Loan Officer
-----------------------
Date: 4/7/98
------------------------
