EXHIBIT 10.1
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PRIVATE & CONFIDENTIAL
The Directors 5531
Simpson Strong-Tie International Inc.
Winchester Road
Cardinal Point Our Ref: SCB/hbh
Tamworth
Staffordshire 16th July 1999
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 16th July 2000.
FACILITIES
OVERDRAFT GBP250,000 (two hundred and fifty
thousand pounds).
RENTAL GUARANTEE TO ROYAL LONDON GBP442,000 (four hundred and forty
two thousand pounds).
HM CUSTOMS & EXCISE GUARANTEE GBP10,000 (2 x GBP5,000)
COMPANY BARCLAYCARD GBP15,000 (fifteen thousand
pounds).
BARCLAYS VEHICLE MANAGEMENT GBP60,000 (sixty thousand pounds).
SERVICES
PURPOSE To assist with the working
capital requirements of the
Company.
INTEREST/COMMISSION/FEES Interest will be charged at a
rate of 2% above Barclays Bank's
Base Rate current from time to
time.
Barclays Bank PLC
Simpson Strong-Tie International Inc.
16th July 1999
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 may notify to you.
Base Rate is currently 5% 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.
Commission in respect of the
Rental Guarantee will be charged
at a rate of 0.45% per annum.
The commission and management
time charge will be debited
quarterly in arrears in March,
June, September and December.
A renewal fee of GBP500 has been
debited to the account.
SECURITY The facility will be
secured/guaranteed by :-
Standby Letter of Credit in the
sum of GBP442,000 from the Union
Bank re the Rental Guarantee to
Royal London.
A Guarantee from Simpson
Manufacturing Inc in respect of
the remaining facilities.
Barclays Bank PLC
Simpson Strong-Tie International Inc.
16th July 1999
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
the Standby Letter of Credit
being renewed at its expiry date.
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.
Yours faithfully
/s/S C Brettell
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S C BRETTELL
CORPORATE MANAGER