Agency agreements

        The Royal Bank of Scotland plc is registered in Scotland No 90312
           Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB
   Agency agreements exist between members of The Royal Bank of Scotland Group
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THIS IS AN  IMPORTANT  LETTER  WHICH SETS OUT THE TERMS AND  CONDITIONS  OF YOUR
GROUP OVERDRAFT  FACILITY.  PLEASE NOTE THAT OVERDRAFTS ARE REPAYABLE ON DEMAND.
WE  RECOMMEND  THAT YOU TAKE  INDEPENDENT  LEGAL  ADVICE IF YOU HAVE ANY  DOUBTS
REGARDING THE TERMS AND CONDITIONS OF THE FACILITY.
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                                                      The Royal Bank of Scotland
                                                         Solent Corporate Centre
Date: 6th March 2006              Address: 3 Hampshire Business Park, PO Box 462
                                                    Templars Way, Chandlers Ford
                                                                  Hants SO53 3RY
Private & Confidential                           Telephone:       023 8024 2163
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Vicon Industries Limited
Company Number 1551194
Brunel Way,
Segensworth East,
Fareham,
Hampshire,
PO15 5TX




Dear Sirs


Multi-Currency Overdraft Facility
Account Holding Branch/Office:        
Portsmouth Commercial Road Branch (sorting code 56 00 64)

I write to advise the terms and conditions upon which The Royal Bank of Scotland
plc ("RBS") acting as agent for National Westminster Bank Plc is willing to make
available  to you a  multi-currency  overdraft  facility for the purpose of your
business.

1    Definitions

1.1  In  this  letter  the  following   expressions  shall  have  the  following
     meanings:-

     "Bank" means National  Westminster Bank Plc, which is the lender under this
     letter, and the "Bank" means its successors and assigns;

     "euro" means the single currency  adopted or to be adopted by participating
     member states under the Treaty establishing the European Union;

     "Facility" means the multi-currency overdraft facility made available or to
     be made available on the terms and conditions set out in this letter;

     "Facility  Accounts"  means the  Sterling  Current  Account and the Foreign
     Currency Current Account;

     "Facility Limit" means (pound)1,000,000;

     "Foreign Currency Accounts" means the Foreign Currency Creditor Account and
     the Foreign Currency Current Account;

     "Foreign  Currency" means any  non-Sterling  currency  (including the euro)
     which is freely  convertible  into  Sterling  and readily  available in the
     London Interbank Market;

     "Foreign Currency  Creditor Account" means the deposit account  denominated
     in United States  Dollars  referenced  140-01-06101445  (or as amended from
     time to time pursuant to Clause 12.5);

     "Foreign Currency Current Account" means the current account denominated in
     euros referenced  550-00-06854451 (or as amended from time to time pursuant
     to Clause 12.5) on which the Facility is made available;
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     "Sterling" means the lawful  currency of the United Kingdom;

     "Sterling  Current  Account"  means  the  current  account  denominated  in
     Sterling on which the Facility is made available, referenced account number
     01144642 (or as amended from time to time pursuant to Clause 12.5); and

     "United  States  Dollars" and "US$" mean the lawful  currency of the United
     States of America.

Overdraft Limit(s) and Utilisation

1.2  The Facility may be utilised by overdrawing the Facility Accounts up to the
     Facility Limit. The Facility Limit must not at any time be exceeded.

1.3  For the purpose of calculating utilisation of the Facility:-

     (a)  any credit  balances on the Foreign  Currency  Accounts will be netted
          against any debit balance on the Foreign Currency Accounts in the same
          Foreign Currency; then

     (b)  the Sterling  equivalent  of the net balances on the Foreign  Currency
          Accounts  shall be  calculated by reference to the  prevailing  market
          rate of exchange; and then

     (c)  the Sterling  equivalent  of the net balances on the Foreign  Currency
          Accounts will be netted  against (or  aggregated  with) the balance on
          the Sterling Current Account.

1.4  The Bank may  decline  to pay a cheque  (or  allow  any  other  payment  or
     withdrawal)  from a Facility  Account  (whether  in credit or debit)  which
     would result in the Facility Limit being exceeded.

1.5  If the Bank does pay a cheque (or allows any other  payment or  withdrawal)
     resulting  in the Facility  Limit being  exceeded it will not mean that the
     Facility  Limit has  changed  or that the Bank will  agree to pay any other
     cheque (or allow any other  payment or  withdrawal)  which  would have that
     effect.

1.6  The  Bank  may  disregard  any  uncleared   credits  for  the  purposes  of
     calculating the utilisation of the Facility (and any interest payable).  If
     however  the  Bank  does pay a cheque  (or  allows  any  other  payment  or
     withdrawal)  against  uncleared credits this does not mean that it is bound
     to do so at other times.

Creditor Account

The Foreign  Currency  Creditor Account should remain in credit at all times and
the Bank may decline to pay a cheque (or allow any other payment or  withdrawal)
which could result in a cleared  debtor  balance.  If the Bank does pay a cheque
(or  allows any other  payment  or  withdrawal)  resulting  in a cleared  debtor
balance it will not mean that a borrowing  facility has been established or that
the Bank will  agree to pay any other  cheque  (or  allow any other  payment  or
withdrawal) which would have the same effect. 2 Preconditions

2.1  The Bank  will not be  obliged  to make the  Facility  available  until the
     following conditions have been met:-

     (a)  any  security  required  in terms of Clause 9 of this  letter has been
          valued and completed to the Bank's satisfaction; and

     (b)  you have accepted the Facility on the terms and  conditions set out in
          this  letter  by  returning  the  duplicate  of this  letter  with the
          acknowledgement  duly  signed,  within  28  days  of the  date of this
          letter.

3    Availability

3.1  The Facility is repayable  upon demand in  accordance  with normal  banking
     practice and the Facility can be  unconditionally  cancelled by the Bank at
     any time.

3.2  Subject  to the  Bank's  rights  under  Clause  5.1  the  Facility  will be
     available until  notification to you by the Bank of its intention to cancel
     the Facility.  Without prejudice to the Bank's rights under this Clause the
     Facility will be subject to review on at least an annual basis.

3.3  The  Bank  will  always  give  notification  of its  inten