EX-10 3 f10q_0502-ex10.txt VICON UK - ADVICE OF BORROWING TERMS Exhibit 10.1 Corporate Banking Services Advice of Borrowing Terms for Vicon Industries Limited From: Solent Region 25 March 2002 Advice of Borrowing Terms Relationship Corporate Banking, Solent Date: 25 March 2002 Office: Region Borrower(s) Registered Number: Vicon Industries Limited 1551194 We intend that the facilities listed in Part 1 of the attached Facility Schedule (the "on-demand facilities") should remain available to the borrower(s) until 12th March 2003 and all facilities should be reviewed on or before that date. The facilities are, however, subject to the following:- o the terms and conditions below, o the specific conditions applicable to an individual facility as detailed in the Facility Schedule, o the Security detailed in the attached Security Schedule, and o the attached General Terms. All amounts outstanding are repayable on demand which may be made by us at our discretion at any time and the facilities may be withdrawn, reduced, made subject to further conditions or otherwise varied by us giving notice in writing. Preconditions: Preconditions which must be satisfied before facilities can be utilised: o A signed copy of this Advice of Borrowing Terms to be returned to us. o Receipt of a certified copy of a resolution of your board of directors confirming:- o certification by the chairman of the meeting that a valid quorum was present and the meeting was duly convened o agreement to give security (if applicable) o acceptance of the terms and conditions of the facility/facilities o authorisation of a person or persons to sign the Form of Acceptance in this Advice of Borrowing Terms and to take such other action as may be necessary for the purpose of the facility/facilities Conditions: The following conditions must be satisfied at all times while the facilities are outstanding, but this will not affect our right to demand repayment at any time: o Monthly management accounts in the existing format, including aged Debtor profile, to be provided to us within 21 days of the end of the month to which they relate. o Audited accounts to be provided to us within 180 days of the financial year end to which they relate. o Lending formulae to continue to be adhered to whereby: => Debtors (less than 90 days) plus stock (minus Preferentials) to cover Overdraft by 250%; => Debtors (less than 90 days) alone to cover Overdraft by 150%. Barry Fitzgerald Senior Corporate Manager For and on behalf of National Westminster Bank Plc Acceptance: To signify your agreement to the terms and conditions outlined above please sign and return the enclosed copy of this Advice of Borrowing Terms within 28 days. Form of Acceptance ------------------ I accept the facility/facilities on the above terms and conditions and confirm that I have been authorised by the Board(s) of Directors of the Borrower(s) to sign this Form of Acceptance on behalf of the Borrower(s). By (name and title): ................................ Date For and on behalf of: Vicon Industries Limited Facility Schedule Part 1 - Facilities Repayable on Demand: ---------------------------- Composite Facility ---------------------------- ------------------------------------------------------------------------------ Name of Borrower(s): Vicon Industries Limited Limit: Gross (pound)1,000,000 Inclusive of any Sub limits detailed ------------------------------------------------------------------------------ Limit: Net (pound)1,000,000 below for individual facilities ------------------------------------------------------------------------------ Accounts included in 01144642 ((pound)) the Composite 140/01/06101445 ($) Facility 550/00/06854451 (Euro) ------------------------------------------------------------------------------ The following Facilities are included within the Composite Facility Limit arrangement, together with any allocated sub-limit(s): ----------------------- Overdraft: - Base rate ----------------------- ------------------------------------------------------------------------------ Account Number: 01144642 ((pound)), ------------------------------------------------------------------------------ Name of Borrower Vicon Industries Limited ------------------------------------------------------------------------------ Limit: (pound)1,000,000 ------------------------------------------------------------------------------ Purpose: To finance working capital ------------------------------------------------------------------------------ Repayment: Fully fluctuating ------------------------------------------------------------------------------ 1st Debit Interest 1.5% above the Bank's Base rate Rate: ------------------------------------------------------------------------------ 2nd Debit Interest 4.5% above the Bank's Base rate on borrowing over Rate: (pound)1,000,000 or in excess of agreed facilities ------------------------------------------------------------------------------ Interest Payable: Quarterly ------------------------------------------------------------------------------ Arrangement Fee: (pound)1,850.00 will be debited on 26th April 2002 ------------------------------------------------------------------------------ Excess Fees: We will be entitled to charge an excess fee at the Bank's published rate for each day any agreed limit is exceeded (see our "Services & Charges for Business Customers" brochure for details). ------------------------------------------------------------------------------ ---------------------- Overdraft: - Currency ---------------------- ------------------------------------------------------------------------------ Account Number: 140/01/06101445 Currency: US Dollar ------------------------------------------------------------------------------ Name of Borrower Vicon Industries Limited ------------------------------------------------------------------------------ Limit: The equivalent of(pound)1,000,000 in US$ ------------------------------------------------------------------------------ Purpose: To finance working capital ------------------------------------------------------------------------------ Repayment: Fully fluctuating ------------------------------------------------------------------------------ 1st Debit Interest 1.5% above the Bank's Currency Base rate. Rate: ------------------------------------------------------------------------------ 2nd Debit Interest 4.5% above the Bank's Currency Base rate for Rate: borrowing over the equivalent of(pound)1,000,000 or in excess of agreed facilities ------------------------------------------------------------------------------ Interest Payable: Quarterly ------------------------------------------------------------------------------ Excess Fees: We will be entitled to charge an excess fee at the Bank's published rate for each day any agreed limit is exceeded. ------------------------------------------------------------------------------ ---------------------- Overdraft: - Currency ---------------------- ------------------------------------------------------------------------------ Account Number: 550/00/06854451 Currency: Euro ------------------------------------------------------------------------------ Name of Borrower Vicon Industries Limited ------------------------------------------------------------------------------ Limit: The equivalent in(pound)1,000,000 in Euro ------------------------------------------------------------------------------ Purpose: To finance working capital ------------------------------------------------------------------------------ Repayment: Fully fluctuating ------------------------------------------------------------------------------ 1st Debit Interest 1.5% above the Bank's Currency Base rate. Rate: ------------------------------------------------------------------------------ 2nd Debit Interest 4.5% above the Bank's Currency Base rate for Rate: borrowing over the equivalent of(pound)1,000,000 or in excess of agreed facilities ------------------------------------------------------------------------------ Interest Payable: Quarterly ------------------------------------------------------------------------------ Excess Fees: We will be entitled to charge an excess fee at the Bank's published rate for each day any agreed limit is exceeded. ------------------------------------------------------------------------------ -------------------- Forward Exchange -------------------- ------------------------------------------------------------------------------ Name of Borrower: Vicon Industries Limited ------------------------------------------------------------------------------ Contract Term: Maximum contract term of 6 months ------------------------------------------------------------------------------ Purpose: Currency Hedging ------------------------------------------------------------------------------ Limit: (pound)300,000 where utilisation is calculated in accordance with the Bank's Forward Exchange Matrix from time to time. ------------------------------------------------------------------------------ ---------------------- Terminable Indemnities ---------------------- ------------------------------------------------------------------------------ Name of Borrower: Vicon Industries Limited ------------------------------------------------------------------------------ Limit: (pound)250,000 ------------------------------------------------------------------------------ Type and Purpose: HM Customs & Excise Duty deferment Bond ------------------------------------------------------------------------------ Basis of Expiry: Ongoing ------------------------------------------------------------------------------ Indemnity Fee: (pound)2,188 p.a. (i.e. 0.875%) payable half yearly in advance, debited biannually in instalments of(pound)1,094.00 ------------------------------------------------------------------------------ -------------------- Settlement Risk -------------------- ------------------------------------------------------------------------------ Name of Borrower: Vicon Industries Limited ------------------------------------------------------------------------------ Limit/Frequency: (pound)20,000 at any one time ------------------------------------------------------------------------------ Type and Purpose: Inward Collections : to release Documents in Trust ------------------------------------------------------------------------------ -------------------- Settlement Risk -------------------- ------------------------------------------------------------------------------ Name of Borrower: Vicon Industries Limited ------------------------------------------------------------------------------ Limit/Frequency: (pound)500,000 per day ------------------------------------------------------------------------------ Type and Purpose: Daytime exposure limit to facilitate payments from International Banking Centre ------------------------------------------------------------------------------ -------------------- Cheque Negotiations -------------------- ------------------------------------------------------------------------------ Name of Borrower: Vicon Industries Limited ------------------------------------------------------------------------------ Limit: (pound)50,000 ------------------------------------------------------------------------------ Purpose: Negotiation of Foreign Cheques with Recourse ------------------------------------------------------------------------------ Fees: Subject to separate tariff, calculated on sterling value of cheque. Information available upon request or at the time the service is provided ------------------------------------------------------------------------------ Part 2 - Facilities Subject to Separate Documentation: The following facilities are made available on the terms of the separate documentation between us. ------------------------------------------------------------------------------ Name of Borrower Facility and Purpose Amount Date (pound) Agreement Signed ------------------------------------------------------------------------------ Vicon Industries Commercial Fixed Originally 8 April Limited Rate Loan (pound) 1997 To uplift Japanese Yen 500,000 loan from Chugai (balance Boyeici Co Ltd and (pound)254,167 to plus provide working plus capital Interest) Vicon Industries various Limited (pound)8,000 Company Card for business expenditure ------------------------------------------------------------------------------ Security Schedule We rely on the security detailed below (and require additional security where specified) to repay, on demand, all your current and future liabilities (both actual and contingent) to us. These liabilities include, without limitation, those incurred by you under the facility(ies) specified in the Facility Schedule. ------------------------------------------------------------------------------- Date Executed/New: Security: Given/to be given by: ------------------------------------------------------------------------------- 6 July 1989 Guarantee for(pound)1 million Vicon Industries Inc. ------------------------------------------------------------------------------- 9 April 1997 First legal mortgage over Vicon Industries (UK) Industrial Unit at Site P3, Limited Brunel Way, Segensworth Industrial Estate, Fareham , Hampshire ------------------------------------------------------------------------------- 17 October Mortgage Debenture Vicon Industries (UK) 1990 Limited -------------------------------------------------------------------------------