EX-10 4 ex10-6.txt EXHIBIT 10.6 Exhibit 10.6 - Advice of Borrowing Terms between Comtrex Systems ------------ Corporation LTD and National Westminster Bank, PLC, dated December 21, 2001 Advice of Borrowing Terms Relationship Crawley Corporate Business Date: 21 December 2001 Office: Centre Borrower(s) Registered Number: Comtrex Systems Corporation Limited 01367328 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 3 December 2002 and all facilities should be reviewed on or before that date. The facilities are, however, subject to the following:- the terms and conditions below, the specific conditions applicable to an individual facility as detailed in the Facility Schedule, the Security detailed in the attached Security Schedule, and 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outstanding are repayable on demand which may be made by us at our discretion at any time and the facilities may be withdrawn, reduced, made subject to further conditions or otherwise varied by us giving notice in writing. 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: Quarterly management accounts - to include P & L/BS/aged debtor and creditor listings - to be provided to us within 28 days of the end of the month to which they relate for UK and quarterly reports to be provided within 6 weeks of the end of the month to which they relate for the US parent (the latter to monitor the overall Group position). Audited accounts to be provided to us within 9 months of the financial year end to which they relate. The residual balance of the loan note to be cleared from parent company funds. The charge over the company in favour of Shirley Jean Roberts and Norman David Roberts to be discharged upon repayment of the loan note. A debtor formula to be put in place whereby borrowing in the company's books to be covered 200% by good debtors of 90 days and less. Terry Porter 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) (copy Resolution enclosed) to sign this Form of Acceptance on behalf of the Borrower(s). By (name and title): ................................ Date For and on behalf of: Comtrex Systems Corporation Limited By (name and title): ................................ Date For and on behalf of: Comtrex Systems Corporation Limited Facility Schedule Part 1 - Facilities Repayable on Demand:
--------------------------------- Overdraft: - Base rate --------------------------------- ------------------------------------------------------------------------------- Account Number: 12486264 --------------------------------- ------------------------------------------------------------------------------- Name of Borrower Comtrex Systems Corporation Limited --------------------------------- ------------------------------------------------------------------------------- Limit: (pound)150,000 --------------------------------- ------------------------------------------------------------------------------- Purpose: To finance working capital --------------------------------- ------------------------------------------------------------------------------- Repayment: Fully fluctuating --------------------------------- ------------------------------------------------------------------------------- 1st Debit Interest Rate: 2% above the Bank's Base rate --------------------------------- ------------------------------------------------------------------------------- 2nd Debit Interest Rate: 5% above the Bank's Base rate on borrowing in excess of agreed facilities --------------------------------- ------------------------------------------------------------------------------- Interest Payable: Quarterly --------------------------------- ------------------------------------------------------------------------------- Arrangement Fee: (pound)750 will be debited on 31st December 2001 --------------------------------- ------------------------------------------------------------------------------- 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). --------------------------------- -------------------------------------------------------------------------------
------------------------------- Loan: - Base rate --------------------------------- ------------------------------------------------------------------------------- Account Number: 03-12489123 --------------------------------- ------------------------------------------------------------------------------- Name of Borrower Comtrex Systems Corporation Limited --------------------------------- ------------------------------------------------------------------------------- Limit: (pound)164,000 --------------------------------- ------------------------------------------------------------------------------- Purpose: Freehold Purchase --------------------------------- ------------------------------------------------------------------------------- Current Repayment: (pound)1565.43 per month to achieve full repayment by February 2017 --------------------------------- ------------------------------------------------------------------------------- Interest: 2% above the Bank's Base rate. --------------------------------- ------------------------------------------------------------------------------- Account to be debited: Comtrex Systems Corporation Limited Current Account 12486264 at 601141 --------------------------------- ------------------------------------------------------------------------------- Interest Payable: Quarterly --------------------------------- ------------------------------------------------------------------------------- Security Costs: (pound)440 previously debited --------------------------------- -------------------------------------------------------------------------------
------------------------------- Loan: - Base rate --------------------------------- ------------------------------------------------------------------------------- Account Number: Not yet open --------------------------------- ------------------------------------------------------------------------------- Name of Borrower Comtrex Systems Corporation Limited --------------------------------- ------------------------------------------------------------------------------- Limit: (pound)100,000 --------------------------------- ------------------------------------------------------------------------------- Purpose: To assist with repayment of debt to US Parent Company --------------------------------- ------------------------------------------------------------------------------- Current Repayment: (pound)1655.52 per month, to achieve full repayment within six years --------------------------------- ------------------------------------------------------------------------------- Interest: 2% above the Bank's Base rate. --------------------------------- ------------------------------------------------------------------------------- Account to be debited: 12486264 --------------------------------- ------------------------------------------------------------------------------- Interest Payable: Quarterly --------------------------------- ------------------------------------------------------------------------------- Arrangement Fee: (pound)500 to be debited upon drawdown --------------------------------- -------------------------------------------------------------------------------
----------------------------- Settlement Risk --------------------------------- ------------------------------------------------------------------------------- Name of Borrower: Comtrex Systems Corporation Limited --------------------------------- ------------------------------------------------------------------------------- Limit/Frequency: (pound)200,000 at any one time --------------------------------- ------------------------------------------------------------------------------- Type and Purpose: To facilitate payments via Bankline Payaway --------------------------------- -------------------------------------------------------------------------------
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 Agreement (pound) Signed --------------------------------------- ---------------------------------- ----------------- -------------------- Comtrex Systems Corporation Limited Company Card 43,000 4th January 2001 --------------------------------------- ---------------------------------- ----------------- --------------------
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: --------------------------- ------------------------------------------------- ------------------------------------ 16/3/2001 1st Legal Mortgage over Unit 2, Gatwick Metro Comtrex Systems Corporation Limited Centre, Balcombe Road, Horley --------------------------- ------------------------------------------------- ------------------------------------ 16/3/2001 1st Legal Mortgage Debenture Comtrex Systems Corporation Limited --------------------------- ------------------------------------------------- ------------------------------------ 16/3/2001 Postponement by Shirley Jean Roberts and Norman Shirley Jean Roberts and David Roberts of their charge dated 27th Norman David Roberts October 1997 so that National Westminster Bank plc has full first legal priority and Shirley Jean Roberts and Norman David Roberts rank second --------------------------- ------------------------------------------------- ------------------------------------