On July 27, 2018, Vicon Industries, Inc. (the ‘company’) entered into an amendment (the ‘amendment’) to its Credit Agreement with NIL Funding Corporation (the ‘Lender’) dated as of April 20, 2017, which amendment provides that, among other things, from June 12, 2018 until September 1, 2018, the minimum tangible net worth covenant contained in Section 4.9 of the Credit Agreement will be of no force or effect, from June 12, 2018 until September 2, 2018, the corporation will not be permitted to borrow any additional funds from the Lender, and the Lender waives any Event of Default (as defined in the Credit Agreement) with respect to Section 4.9 of the Credit Agreement that may have occurred prior to June 12, 2018. The Lender received a specified remuneration as an inducement to enter into the amendment.