EXHIBIT 10.5
Amendment to the agreement made the 1st November 2006
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between Vicon Industries Ltd and Xxxxxxxxxxx X Xxxx
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The following salary and bonus arrangements for Xxxxxxxxxxx X Xxxx will apply
for the fiscal year ending 30 September 2007:
1. Salary
Your basic salary will increase to (pound)97,850 per annum.
2. Bonus
A profit-related bonus will be paid based upon the pre-tax profit % of the
consolidated results of Vicon Industries Ltd and videotronic infosystems
GmbH. The calculation will be as follows:
A bonus will be paid at the end of the financial year based on the
audited pre-tax operating profit as a percentage of consolidated sales
of Vicon Industries Ltd and videotronic infosystems GmbH, before this
bonus. Pre-tax operating profits are defined as consolidated profit
before tax but after adding back any R&D charges from Vicon Israel or
Vicon US under an R&D Services Agreement dated 1st October 2000 and as
Amended on 1st October 2002 and any severance/retirement charge in
2007 for Messrs. Wall and Hatchard .
The profit-related bonus will only be paid if the combined audited
sales exceed (pound)10.8m and will be calculated based on the
following formula:
profit range % of pre-tax operating
profit payment
pre-tax operating profit 0-2% of sales 2.0%
pre-tax operating profit 2.01-4% of sales 5.0%
pre-tax operating profit over 4% of sales 6.0%
Any other adjustments to the pre-tax operating profit shall be agreed
in writing prior to inclusion in the UK accounts.
Any further bonus payments for results exceeding those set out here
will be at the discretion of the Board of Directors.
Agreed this 1st day of November 2006:
/s/ Xxxxxxx X. Xxxxx /s/ Xxxxxxxxxxx X. Xxxx
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Xxxxxxx X Xxxxx Xxxxxxxxxxx X Xxxx
Vicon Industries Ltd
