EXHIBIT F
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AGWAY INC., PO BOX 4933, SYRACUSE, NEW YORK 13221-4933
November 12, 1998
Xx. Xxxxxx X. Xxxxxxxxx
Planet Polymer Technologies Incorporated
0000 Xxxxxxxx Xxxx Xxxxxx
Xxxxx X
Xxx Xxxxx, Xxxxxxxxxx 00000
Dear Bob:
This letter constitutes a binding commitment to provide a line of credit to
Planet Polymer Technologies Incorporated ("Planet") on the terms attached to
this letter.
Agway, Inc., through one of its affiliates, Agway Holdings Inc., ("Agway") has
today entered into with Planet (i) an agreement to purchase Planet common stock
and warrants pursuant to a Stock Purchase Agreement; (ii) an Exclusive Licensing
Agreement with respect to the use of certain Planet technologies relating to
agricultural and food products; and (iii) a Product Feasibility Agreement with
respect to the development of agricultural and food polymer-coated products.
Agway is delivering this commitment in order to allow Planet access to working
capital in the event the purchase under the Stock Purchase Agreement does not
occur on or before December 31, 1998.
Agway's commitment is subject to the execution and delivery of definitive
agreements containing such terms and conditions as Agway deems necessary. Each
party will be responsible for its respective expenses, including attorney fees
with respect to the proposed agreements.
If this commitment is acceptable, please sign one copy in the space provided
below and return the signed copy to Agway by 5 p.m. November 20, 1998.
AGWAY, INC. PLANET POLYMER
TECHNOLOGIES, INC.
By: /s/ Xxxxxx X. XxXxxx By:/s/ Xxxxxx X. Xxxxxxxxx
----------------------------- ---------------------------
Xxxxxx X. XxXxxx, President Xxxxxx X. Xxxxxxxxx, CEO
Country Products Group
Agway, Inc.
Date: November 12, 1998 Date: November 19, 1998
--------------------------- -------------------------
000 XXXXXXXXX XXXXX, XXXXXX, XXX XXXX 00000
LINE OF CREDIT TERM SHEET
Creditor: Agway, Inc. or one of its designated affiliates ("Agway").
Debtor: Planet Polymer Technologies, Inc. ("Planet").
Maximum Amount: $480,000, to be drawn down in four installments of $120,000,
beginning on January 1, 1999 and thereafter on the first day
of each month until the earlier of the repayment of the line
of credit or April 30, 1999.
Interest: Prime rate as set forth in the Wall Street Journal,
reset on each day such rate is published in the Wall
Street Journal during the term of the line of credit,
plus one, compounding monthly, and accruing daily on
the outstanding principal based on the actual number
of days elapsed and a year of 360 days.
Term: In the event the purchase of Common Stock and Warrants under
the Stock Purchase Agreement between Planet and Agway Holdings
Inc.has not been completed, beginning on January 1, 1999 until
repayment.
Repayment: Full repayment of all outstanding principal plus accrued
interest will be due upon the earlier of (i) the closing under
the Stock Purchase Agreement or (ii) after April 30, 1999, on
demand by Agway.
