Exhibit 10.8 LOAN AGREEMENT (BUSINESS OVERDRAFT FACILITY) BETWEEN COMTREX
SYSTEMS CORPORATION LTD AND BARCLAYS BANK PLC DATED
MARCH 30,1998
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BARCLAYS BANK PLC
Sutton and Xxxxx Xxxxxxxx Xxxxxx
XX Xxx 000, Xxxxx Xxxxx, 000 Xxxx Xxxxxx, Xxxxxx, Xxxxxx
XX0 0XX
Telephone: (0000) 000 0000
The Directors
Comtrex Systems Corporation Limited Our Ref: 2343050601/64
Xxxx 0 Xxxxxx Xxxx xx
Xxxxx Xxxxxxx Xxx No: 0181 722 3547
Balcombe Road
Horley 30 March 1998
Xxxx Xxxxxx
XX0 0XX
Dear Sirs
BUSINESS OVERDRAFT FACILITY
Barclays Bank PLC (the "Bank") agrees to provide Comtrex Systems Corporation
Limited with an overdraft facility subject to the following terms and
conditions:
AMOUNT
L150,000.
PURPOSE
To assist with the working capital finance requirements of the company.
TERM
The overdraft facility is repayable on demand. However, subject to this
condition, the facility is scheduled for review on 30th March 1999.
INTEREST
Interest on the overdraft facility will be charged at 3.00% per annum above the
Bank's Base Rate (currently 7.25%) giving an effective rate of 10.25%, varying
in line with changes in Base Rate. Variations in Base Rate are published in the
National Press.
Borrowings in excess of the agreed facility will be charged at 15.00% per annum
above the Bank's Base Rate. Advice of this interest rate does not constitute an
agreement by us to allow borrowings in excess of the agreed facility. Cheques
and other payments may be returned unpaid without further reference to you. If
you would like us to consider any increase in your facility, please contact us
as soon as possible.
Interest will be charged on a quarterly basis and debited to the company's
current account on our usual charging dates.
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CHARGES/FEES
Account entry and general service charges which apply to the company's current
account are detailed in your tariff advice, a further copy is available upon
request.
If the company's current account exceeds the agreed overdraft limit without
prior arrangement, separate additional charges will normally be incurred.
An arrangement fee of L2,250 has been debited to the company's current account.
SECURITY
This overdraft facility is secured as detailed below, together with any other
security/guarantee now or hereafter held by us:
1. A Debenture over the assets of the Company.
2. A Legal Charge over Xxxx 0, Xxxxx Xxxxxx, Xxxxxxxx Xxxx, Xxxxxx, Xxxxxx.
3. A Lega1 Charge over Scottish Widows Life Policy No. 5577611.
4. A Legal Charge over a suitable Life Policy, on the life of Xxxxxxx Xxxxx
Xxxxxxx, sufficient to cover the amount and term of the borrowing.
Debenture Formula: The company will ensure that the overdraft and loan
facilities will at all times be covered 3.00 times by the aggregate value of
unencumbered UK book debts less than 90 days old. Despite this provision, we
retain the right to demand repayment of borrowings at any time.
We are committed to provide the highest quality service to you and your business
and have you have any queries or problems in this area, please do not
hesitate to contact myself or my assistant Xxxxxxx Xxxxx on extension number
0181 722 3547.
FOR AND ON BEHALF OF
BARCLAYS BANK PLC
/s/ Xxxx Xxxxxxxxxx
-------------------
Xxxx Xxxxxxxxxx
MANAGER
Accepted on the terms and conditions contained in this letter on behalf of
Comtrex Systems Corporation Limited by a person or persons duly authorised
pursuant to a resolution of its Board of Directors.
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For and on behalf of Comtrex Systems Corporation Limited.
SIGNED
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DATE
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