Corporate Banking
Services
Advice of Borrowing Terms
for
Vicon Industries Limited
From:
Portsmouth Corporate Office
13 March 2000
<PAGE>
Advice of Borrowing Terms
Relationship Office: Portsmouth Corporate Office Date: 13 March 2000
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 12
March 2001 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discretion at any time and the facilities may be withdrawn, reduced, made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.
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%.
John McLellan
Corporate Manager
For and on behalf of
National Westminster Bank Plc
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<PAGE>
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
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<PAGE>
Facility Schedule
Part 1 - Facilities Repayable on Demand:
Overdraft: - Base rate
----------------------
--------------------------------- ----------------------------------------------
Account Number: 01144642 (56-00-64)
--------------------------------- ----------------------------------------------
Name of Borrower Vicon Industries Limited
--------------------------------- ----------------------------------------------
Limit: (pound)600,000 (Six hundred thousand pounds)
--------------------------------- ----------------------------------------------
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
over(pound)600,000 or in excess of
agreed facilities
--------------------------------- ----------------------------------------------
Interest Payable: Quarterly
--------------------------------- ----------------------------------------------
Arrangement Fee: (pound)1,850.00 will be debited on
24 March 2000
--------------------------------- ----------------------------------------------
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).
--------------------------------- ----------------------------------------------
Forward Exchange
----------------
--------------------------------- ----------------------------------------------
Name of Borrower: Vicon Industries Limited
--------------------------------- ----------------------------------------------
Contract Term: Maximum contract term of 6 months
--------------------------------- ----------------------------------------------
Purpose: Currency Hedging
--------------------------------- ----------------------------------------------
Limit: o We have adopted the mark to market
methodology to measure customer exposures
on foreign exchange. This enables risk to
be measured on a basis linked to current/
future replacement costs rather than a
limit expressed in terms of maximum gross
face value contract values.
o On your request our dealers will advise
you of the amount of your exposure at that
time as measured by the Bank.
o Measured utilisation and availability will
vary with market movement
o There is no commitment on our part to
enter into any foreign exchange contract
with you.
--------------------------------- ----------------------------------------------
Terminable Indemnities
----------------------
--------------------------------- ----------------------------------------------
Name of Borrower: Vicon Industries Limited
--------------------------------- ----------------------------------------------
Limit: (pound)200,000
--------------------------------- ----------------------------------------------
Type and Purpose: HM Customs & Excise Duty deferment Bond
--------------------------------- ----------------------------------------------
Basis of Expiry: Ongoing
--------------------------------- ----------------------------------------------
Indemnity Fee: (pound)1,760.00 p.a. payable half yearly
in advance, debited biannually in
instalments of (pound)875.00
--------------------------------- ----------------------------------------------
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<PAGE>
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
-------------------------- ---------------------- -------------- ---------------
Vicon Industries Limited Commercial Fixed Rate Originally 8 April 1997
Loan To uplift (pound)500,000
Japanese Yen loan (balance(pound)
from Chugai Boyeici 358,334 plus
Co Ltd and to provide Interest)
working capital
-------------------------- ---------------------- -------------- ---------------
-----------------------------
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
in Redhill
--------------------------------- ----------------------------------------------
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 Industrial Vicon Industries (UK)
Unit at Site P3, Brunel Way, Limited
Segensworth Industrial Estate,
Fareham , Hampshire
---------------- --------------------------------------- -----------------------
17 October 1990 Mortgage Debenture Vicon Industries (UK)
Limited
---------------- --------------------------------------- -----------------------
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