EXHIBIT 10.5
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BARCLAYS BANK PLC
Colmore Row Business Centre
P.O. Box No. 34, 15 Colmore Row, Birmingham B3 2BY
Telephone: (0121) 236 9876 Facsimile: (0121) 236 2390
Private & Confidential
The Directors Your Ref:
Simpson Strong-Tie International Inc. Our Ref: DJH/CBU/HMC
Phoenix Road Ext. No:
Hawks Green
CANNOCK
WS11 2LR 18 June 1996
Dear Sirs
SIMPSON STRONG-TIE INTERNATIONAL INC.
We are writing to confirm that we have agreed facilities for the above
company as described below. The facilities are repayable upon demand at
any time, but subject to this overriding condition, the limits have been
marked forward for review by 30th June 1997.
FACILITIES
Simpson Strong-Tie
Overdraft GBP250,000 (two hundred and fifty
thousand pounds
HM Customs & Excise
Guarantee GBP10,000 (2 x GBP5,000)
Company Barclaycard GBP15,000
BACs GBP70,000
Payflow GBP10,000
Purpose To assist with the working capital
requirements of the company
Interest/Commission/Fees Interest will charged at a rate of 2%
above Barclays Bank's Base Rate current
from time to time.
No amounts may be drawn in excess of the
agreed facility but if exceptionally the
Bank pays amounts which are not agreed
in advance, and which create an excess
position, then a borrowing margin of 15%
will apply to the unauthorised amounts
calculated daily.
Interest will be charged quarterly in
arrears in March, June, September and
December, or at such other intervals as
the Bank my notify to you.
Base Rate is currently 5.75% and
variations in Base Rate are published in
the press.
Commission will be charged in line with
the Bank tariff current from time to
time, a copy of which is in your
possession. The tariff is usually
reviewed annually in May.
Additionally, the non-transactional
costs incurred reviewing, controlling
and monitoring the account will be
recovered by way of an account management
time charge.
The commission and management time
charge will be debited quarterly in
arrears in March, June, September and
December.
A renewal fee of GBP500 will be charged
on acceptance of this letter.
Security The facility will be secured/guaranteed
by:
(1) Standby Letter of Credit in the sum
of GBP275,000 from the Union Bank re the
Simpson Strong-Tie overdraft
(2) and any other security which is now
held or hereinafter may be held by the
Bank, all of which security is to be
available as cover for all liabilities
of the Borrower whether actual or
contingent to the Bank at any time.
Condition Precedent The facility is conditional upon both
Standby Letters of Credit being renewed
at their expiry dates.
Information The Borrower will provide the Bank with:
Copies of its audited, trading and
consolidated profit and loss account and
balance sheet as soon as they are
available, and not later than 180 days
from the end of each accounting
reference period.
Acceptance This offer will be available for
acceptance until 18th July 1996 after
which date the offer will lapse unless
extended in writing by the Bank.
Acceptance will be signified by signing
and returning the attached copy letter
Yours faithfully,
/s/S C Brettell
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S C BRETTELL
CORPORATE MANAGER