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discretion at any time and the facilities may be withdrawn, reduced, made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
----------------------------
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Name of Borrower(s): Vicon Industries Limited
Limit: Gross (pound)1,000,000 Inclusive of any Sub limits
detailed
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Limit: Net (pound)1,000,000 below for individual
facilities
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Accounts included in 01144642 ((pound))
the Composite 140/01/06101445 ($)
Facility 550/00/06854451
(Euro)
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The following Facilities are included within the Composite Facility Limit
arrangement, together with any allocated sub-limit(s):
-----------------------
Overdraft: - Base rate
-----------------------
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Account Number: 01144642 ((pound)),
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Name of Borrower Vicon Industries Limited
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Limit: (pound)1,000,000
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Purpose: To finance working capital
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Repayment: Fully fluctuating
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1st Debit Interest 1.5% above the Bank's Base rate
Rate:
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2nd Debit Interest 4.5% above the Bank's Base rate on borrowing over
Rate: (pound)1,000,000 or in excess of agreed facilities
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Interest Payable: Quarterly
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Arrangement Fee: (pound)1,850.00 will be debited on 26th April 2002
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Excess Fees: We will be entitled to charge an excess fee at
the Bank's published rate for each day any agreed limit
is exceeded (see our "Services & Charges for Business
Customers" brochure for details).
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----------------------
Overdraft: - Currency
----------------------
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Account Number: 140/01/06101445 Currency: US Dollar
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Name of Borrower Vicon Industries Limited
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Limit: The equivalent of(pound)1,000,000 in US$
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Purpose: To finance working capital
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Repayment: Fully fluctuating
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1st Debit Interest 1.5% above the Bank's Currency Base rate.
Rate:
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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
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Interest Payable: Quarterly
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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.
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----------------------
Overdraft: - Currency
----------------------
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Account Number: 550/00/06854451 Currency: Euro
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Name of Borrower Vicon Industries Limited
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Limit: The equivalent in(pound)1,000,000 in Euro
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Purpose: To finance working capital
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Repayment: Fully fluctuating
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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
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Interest Payable: Quarterly
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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.
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--------------------
Forward Exchange
--------------------
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Name of Borrower: Vicon Industries Limited
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Contract Term: Maximum contract term of 6 months
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Purpose: Currency Hedging
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Limit: (pound)300,000 where utilisation is calculated in
accordance with the Bank's
Forward Exchange Matrix from time to time.
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----------------------
Terminable
Indemnities
----------------------
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Name of Borrower: Vicon Industries Limited
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Limit: (pound)250,000
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Type and Purpose: HM Customs & Excise Duty deferment Bond
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Basis of Expiry: Ongoing
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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
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--------------------
Settlement Risk
--------------------
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Name of Borrower: Vicon Industries Limited
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Limit/Frequency: (pound)20,000 at any one time
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Type and Purpose: Inward Collections : to release Documents in Trust
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--------------------
Settlement Risk
--------------------
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Name of Borrower: Vicon Industries Limited
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Limit/Frequency: (pound)500,000 per day
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Type and Purpose: Daytime exposure limit to facilitate payments from
International Banking Centre
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--------------------
Cheque Negotiations
--------------------
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Name of Borrower: Vicon Industries Limited
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Limit: (pound)50,000
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Purpose: Negotiation of Foreign Cheques with Recourse
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Fees: Subject to separate tariff, calculated on sterling
value of cheque. Information available upon
request or at the time the service is provided
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Part 2 - Facilities Subject to Separate Documentation:
The following facilities are made available on the terms of the separate
documentation between us.
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Name of Borrower Facility and Purpose Amount Date
(pound) Agreement
Signed
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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
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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.
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Date Executed/New: Security: Given/to be given by:
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6 July 1989 Guarantee for(pound)1 million Vicon Industries Inc.
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9 April 1997 First legal mortgage over Vicon Industries (UK)
Industrial Unit at Site P3, Limited
Brunel Way, Segensworth
Industrial Estate, Fareham ,
Hampshire
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17 October Mortgage Debenture Vicon Industries (UK)
1990 Limited
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