Document:

EXHIBIT 10.47

 

ACCESSION AGREEMENT

 

This ACCESSION AGREEMENT

(this “Accession Agreement”) dated as of August 22, 2002 is made among

Congress Financial Corporation (New England) (“Congress Financial”),

Bank of America, as administrative agent (the “Administrative Agent”)

under the Credit Agreement (as hereinafter defined) and Manufacturers’ Services

Limited, a Delaware corporation (the “Parent”), Manufacturers’ Services

Salt Lake City Operations, Inc., a Delaware corporation (“MSSLCO”),

Manufacturers’ Services Western U.S. Operations, Inc.,  a California corporation (“MSWUSO”),

Manufacturers’ Services Central U.S. Operations, Inc., a Minnesota corporation

(“MSCUSO”), MSL Lowell Operations, Inc., a Delaware corporation (“MSLLO”),

and MSL Midwest Operations, Inc., a Delaware corporation (“MSLMO”; and

together with the Parent, MSSLCO, MSWUSO, MSCUSO and MSLLO, each a “Borrower”

and collectively, the “Borrowers”).

 

WHEREAS, Congress

Financial desires to become a Revolving Lender under that certain Credit

Agreement, dated as of June 20, 2002 (as amended, amended and restated,

modified, supplemented or renewed, the “Credit Agreement”; capitalized

terms used herein and not otherwise defined herein shall have the meanings

assigned thereto in the Credit Agreement), made by and among the Borrowers, the

guarantors named therein (the “Guarantors”), the lenders from time to

time party thereto (the “Lenders”), the Administrative Agent, Credit

Suisse First Boston, Cayman Islands Branch, as syndication agent, General

Electric Capital Corporation, as documentation agent, and Banc of America

Securities LLC and Credit Suisse First Boston, Cayman Islands Branch, as

co-book managers and co-lead arrangers;

 

WHEREAS, the Borrowers

desire to increase the size of the revolving credit facility under the Credit

Agreement from $100,000,000 to $120,000,000;

 

WHEREAS, it is a

condition under Section 1.6 of the Credit Agreement that Congress Financial,

the Administrative Agent and the Borrowers enter into an accession agreement in

the form hereof.

 

NOW, THEREFORE, subject

to the conditions precedent set forth in Section 3 hereof, Congress Financial,

the Administrative Agent and the Borrowers hereby agree as follows:

 

1.             Revolver Increase.  With effect on and after the Effective Date (as defined in

Section 3 hereof), (i) Congress Financial shall be a party to the Credit

Agreement and succeed to all of the rights and be obligated to perform all of

the obligations of a Revolving  Lender

under the Credit Agreement, including the requirements concerning

confidentiality and the payment of indemnification, with a Revolving Credit

Commitment in an amount equal to $20,000,000, (ii) Congress Financial shall

have acquired a participation in its Pro Rata Share of the Lenders’ liabilities

under Letters of Credit and Credit Support, which as of the date hereof is in

an aggregate pricipal amount of $497,968.91 and  (iii) the revolving line of credit under the Credit Agreement

shall be increased from $100,000,000 to $120,000,000 (the “Revolver Increase”).  Congress Financial agrees (i) to be bound by

the terms and conditions set forth in the Credit Agreement as if it were an

original signatory thereto and (ii) to perform in accordance with their

 

 

terms

all of the obligations which by the terms of the Credit Agreement are required

to be performed by it as a Revolving Lender.

 

2.             Independent Credit Decision.  Congress Financial (a) acknowledges

that it has received a copy of the Credit Agreement and the Schedules and

Exhibits thereto, together with copies of the most recent financial statements

of the Borrowers and Guarantors, and such other documents and information as it

has deemed appropriate to make its own credit and legal analysis and decision

to enter into this Accession Agreement and the Credit Agreement; and

(b) agrees that it will, independently and without reliance upon the

Administrative Agent or any Lender and based on such documents and information

as it shall deem appropriate at the time, continue to make its own credit and

legal decisions in taking or not taking action under the Credit Agreement.

 

3.             Effective Date; Notices.  The effective date for this Accession

Agreement shall be August 22, 2002 (the “Effective Date”); provided

that the following conditions precedent have been satisfied on or before the

Effective Date:

 

(a)           counterparts of this

Accession Agreement executed by Congress Financial, each Borrower and the

Administrative Agent shall have been delivered to the Administrative Agent;

 

(b)           the Borrowers shall

have paid or caused to be paid to the Administrative Agent the fee payable to

the Administrative Agent pursuant to the Bank Fee Letter with respect to the

Revolver Increase; and

 

(c)           the Revolving Credit

Commitment of Bank of America, N.A. shall not be greater than $25,000,000.

 

4.             Withholding Tax. 

Congress Financial (a) represents and warrants to the the Administrative

Agent and the Borrowers that under applicable law and treaties no tax will be

required to be withheld with respect to any payments to be made to Congress

Financial under the Credit Agreement or any other Loan Document, (b) agrees to

furnish (if it is organized under the laws of any jurisdiction other than the

United States or any State thereof) to the Administrative Agent and the

Borrowers prior to the time that the Administrative Agent or the Borrowers are

required to make any payment of principal, interest or fees hereunder,

duplicate executed originals of either U.S. Internal Revenue Service Form

W-8ECI or U.S. Internal Revenue Service Form W-8BEN (wherein Congress Financial

claims entitlement to the benefits of a tax treaty that provides for a complete

exemption from U.S. federal income withholding tax on all payments hereunder)

and agrees to provide new Forms W-8ECI or W-8BEN upon the expiration of any

previously delivered form or comparable statements in accordance with

applicable U.S. law and regulations and amendments thereto, duly executed and

completed by Congress Financial, and (c) agrees to comply with all applicable

U.S. laws and regulations with regard to such withholding tax exemption.

 

2

 

5.             Representations

and Warranties.  (a) Congress

Financial represents and warrants that (i) it is duly organized and

existing and it has full power and authority to take, and has taken, all action

necessary to execute and deliver this Accession Agreement and any other

documents required or permitted to be executed or delivered by it in connection

with this Accession Agreement, and to fulfill its obligations hereunder; (ii) no

notices to, or consents, authorizations or approvals of, any Person are

required (other than any already given or obtained) for its due execution,

delivery and performance of this Accession Agreement; and apart from any

agreements or undertakings or filings required by the Credit Agreement, no

further action by, or notice to, or filing with, any Person is required of it

for such execution, delivery or performance; (iii) this Accession

Agreement has been duly executed and delivered by it and constitutes the legal,

valid and binding obligation of Congress Financial, enforceable against

Congress Financial in accordance with the terms hereof, subject, as to

enforcement, to bankruptcy, insolvency, moratorium, reorganization and other

laws of general application relating to or affecting creditors’ rights and to

general equitable principles; and (iv) it is an Eligible Assignee.

 

(b)           Each of the Borrowers reaffirms and

restates the representations and warranties set forth in Article 8 of the Loan

and Security Agreement and all such representations and warranties shall be

true and correct on the date hereof with the same force and effect as if made

on such date (except insofar as such representations and warranties relate

expressly to an earlier date).  Each of

the Borrowers represents and warrants (which representations and warranties

shall survive the execution and delivery hereof) that:

 

(i)            No

Default or Event of Default has occurred and is continuing as of the date

hereof or will occur as a result of the Revolver Increase.

 

(ii)           It

has the corporate power and authority to execute, deliver and carry out the

terms and provisions of this Accession Agreement and has taken or caused to be

taken all necessary corporate action to authorize the execution, delivery and

performance of this Accession Agreement;

 

(iii)          No

consent of any other Person (including, without limitation, shareholders or

creditors of any Borrower), and no action of, or filing with any governmental

or public body or authority is required to authorize, or is otherwise required

in connection with the execution, delivery and performance of this Accession

Agreement;

 

(iv)          This

Accession Agreement and the other instruments and documents contemplated hereby

have been duly executed and delivered by a duly authorized officer on behalf of

such party, and constitute a legal, valid and binding obligation of such party

enforceable against such party in accordance with its terms, subject to

bankruptcy, reorganization, insolvency, moratorium and other similar laws affecting

the enforcement of creditors’ rights generally and the exercise of judicial

discretion in accordance with general principles of equity; and

 

3

 

(v)           The

execution, delivery and performance of this Accession Agreement and the other

instruments and documents contemplated hereby will not violate any law, statute

or regulation, or any order or decree of any court or governmental

instrumentality, or conflict with, or result in the breach of, or constitute a

default under any contractual obligation of such party.

 

6.             Miscellaneous.

 

(a)           Any amendment or waiver of any

provision of this Accession Agreement shall be in writing and signed by the

parties hereto.  No failure or delay by

any party hereto in exercising any right, power or privilege hereunder shall

operate as a waiver thereof and any waiver of any breach of the provisions of

this Accession Agreement shall be without prejudice to any rights with respect

to any other or further breach thereof.

 

(b)           All payments made hereunder shall be

made without any set-off or counterclaim.

 

(c)           This Accession Agreement may be

executed in any number of counterparts and all of such counterparts taken

together shall be deemed to constitute one and the same instrument.

 

(d)           Congress Financial hereby advises

each of you of the following administrative details for purposes of the Credit

Agreement:

 

	

  Institution Name: 

  	

   

  	

  Congress Financial Corporation (New England)

  
	

   

  	

   

  	

   

  
	

  Address:

  	

   

  	

  One Post Office Square, Suite 3600

  
	

   

  	

   

  	

  Boston, MA 02109

  
	

   

  	

   

  	

   

  
	

  Attention:

  	

   

  	

  Karen Triantafilis

  
	

  Telephone:

  	

   

  	

  212-545-4378

  
	

  Facsimile:

  	

   

  	

  212-545-4505

  
	

   

  	

   

  	

   

  
	

  Payment Instructions:

  
	

   

  	

   

  	

   

  
	

  Account No.:

  	

  50000 0003 0305

  
	

  ABA:

  	

  053 000 219

  
	

  At:

  	

  First Union National Bank

  
	

  Reference:

  	

  Manufacturers’ Services Ltd. (MSL)

  
				

 

(e)           THIS ACCESSION AGREEMENT SHALL BE

GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW

YORK.

 

4

 

7.             Delivery of Resolutions.  Each of the Borrowers hereby acknowledges

and agrees that until such time as certified copies of resolutions of the Board

of Directors of each of the Borrowers approving the Revolver Increase and the

corresponding modifications to the Credit Agreement have been delivered to the

Administrative Agent, such Borrower shall not request a Borrowing under the

revolving credit facility if at the time of such Borrowing the amount of such

Borrowing would, together with all Aggregate Revolver Outstandings at such

time, exceed $100,000,000.

 

 

[Remainder of page intentionally left blank]

 

5

 

IN WITNESS WHEREOF, the the parties have caused this Accession

Agreement to be executed and delivered by their duly authorized officers as of

the date first above written.

 

	

   

  	

  CONGRESS FINANCIAL CORPORATION (NEW ENGLAND)

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ [ILLEGIBLE]

  
	

   

  	

  Title:

  	

  First Vice President

  
	

   

  	

   

  	

   

  
	

   

  	

  MANUFACTURERS’ SERVICES LIMITED

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Sean Lannan

  
	

   

  	

  Title:

  	

  VP, Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  MANUFACTURERS’ SERVICES SALT LAKE CITY OPERATIONS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Sean Lannan

  
	

   

  	

  Title:

  	

  VP, Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  MANUFACTURERS’ SERVICES WESTERN

  U.S. OPERATIONS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Sean Lannan

  
	

   

  	

  Title:

  	

  VP, Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  MANUFACTURERS’ SERVICES CENTRAL U.S. OPERATIONS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Sean Lannan

  
	

   

  	

  Title:

  	

  VP, Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  MSL LOWELL OPERATIONS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Sean Lannan

  
	

   

  	

  Title:

  	

  VP, Treasurer

  

 

6

 

	

   

  	

  MSL MIDWEST

  OPERATIONS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Sean Lannan

  
	

   

  	

  Title:

  	

  VP, Treasurer

  
	

   

  	

   

  	

   

  
	

   

  	

  BANK OF AMERICA, N.A., as Administrative

  Agent

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ James Foley

  
	

   

  	

  Title:

  	

  Account Officer

  

 

7EXHIBIT

10.48

 

NOTICE OF ASSIGNMENT AND

ACCEPTANCE

 

August 21, 2002

Bank of America, N.A., as

Administrative Agent

335 Madison Avenue

New York, New York

Attn: James Foley

 

Manufacturers’ Services

Limited

300 Baker Avenue

Concord, Massachusetts

01742-2121

Attn: Sean Lannan

 

 

Re:  Manufacturers’ Services Limited

 

Ladies and Gentlemen:

 

We refer to the Credit

Agreement, dated as of June 20, 2002 (as extended, renewed, amended or restated

from time to time, the “Credit Agreement”), made by and among

Manufacturers’ Services Limited, a Delaware corporation (the “Parent”),

Manufacturers’ Services Salt Lake City Operations, Inc., a Delaware corporation

(“MSSLCO”), Manufacturers’ Services Western U.S. Operations, Inc.,  a California corporation (“MSWUSO”),

Manufacturers’ Services Central U.S. Operations, Inc., a Minnesota corporation

(“MSCUSO”), MSL Lowell Operations, Inc., a Delaware corporation (“MSLLO”),

and MSL Midwest Operations, Inc., a Delaware corporation (“MSLMO”; and

together with the Parent, MSSLCO, MSWUSO, MSCUSO and MSLLO, each a “Borrower”

and collectively, the “Borrowers”), the guarantors named therein, the

Lenders, Bank of America, N.A., as administrative agent, Credit Suisse First

Boston, Cayman Islands Branch, as syndication agent, General Electric Capital

Corporation, as documentation agent, and Banc of America Securities LLC and

Credit Suisse First Boston, Cayman Islands Branch, as co-book managers and

co-lead arrangers.  Terms defined in the

Credit Agreement and not defined herein are used herein as therein defined.

 

1.             We hereby give you notice of, and request the consent of

the Administrative Agent and the Parent to, the assignment pursuant to the

Assignment and Acceptance attached hereto (the “Assignment and Acceptance”)

by Bank of America, N.A. (the “Assignor”) to  HSBC Business Credit (USA) Inc. (the “Assignee”) of 37.50%

of the right, title and interest of the Assignor in and to the Credit Agreement

(including the right, title and interest of the Assignor in and to the

Revolving Credit Commitment of the Assignor and each of the

 

 

outstanding

Revolving Loans and L/C Obligations (as defined in the Assignment and

Acceptance) of the Assignor).

 

2.             The Assignee agrees that, upon receiving the consent of

the Administrative Agent and, if applicable, the Parent to such assignment, the

Assignee will be bound by the terms of the Credit Agreement as fully and to the

same extent as if the Assignee were the Revolving  Lender originally holding such interest in the Credit Agreement.

 

3.             The following administrative details apply to the

Assignee:

 

	

  (A)

  	

   

  	

  Notice Address:

  
	

   

  	

   

  	

   

  	

  452 Fifth Ave., 19th Floor

  
	

   

  	

   

  	

   

  	

  New York, NY 10018

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Assignee name:   HSBC Business Credit (USA) Inc.

  
	

   

  	

   

  	

  Address: 

  	

  452 Fifth Ave., 19th

  Floor

  
	

   

  	

   

  	

   

  	

  New York, NY 10018

  
	

   

  	

   

  	

  Attention: 

  	

  Dan Bueno

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Telephone: (212) 525-2518

  
	

   

  	

   

  	

  Telecopier:

  (212) 525-2520

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  (B)

  	

   

  	

  Payment

  Instructions:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Account No.:

  	

  750-164638

  
	

   

  	

   

  	

  ABA:

  	

  021001088

  
	

   

  	

   

  	

  At: 

  	

  HSBC Bank USA

  
	

   

  	

   

  	

  Attention: 

  	

  Vince Wright

  
						

 

4.             You are entitled to rely upon the representations,

warranties and covenants of each of the Assignor and Assignee contained in the

Assignment and Acceptance.

 

5.             By its signature below, the Administrative Agent waives

the processing fee referred to in Section 11.2(a) of the Credit Agreement.

 

2

 

IN WITNESS WHEREOF, the Assignor and the Assignee have

caused this Notice of Assignment and Acceptance to be executed by their

respective duly authorized officials, officers or agents as of the date first

above mentioned. 

 

	

   

  	

   

  	

  Very truly yours,

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  BANK OF AMERICA, N.A.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ James Foley

  
	

   

  	

   

  	

   

  	

  Name: James Foley

  
	

   

  	

   

  	

   

  	

  Title: Account Officer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  HSBC BUSINESS CREDIT (USA) INC.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ Dan Bueno

  
	

   

  	

   

  	

   

  	

  Name: Dan Bueno

  
	

   

  	

   

  	

   

  	

  Title: Vice President

  

 

 

	

  ACKNOWLEDGED AND

  ASSIGNMENT

  CONSENTED TO:

  
	

   

  
	

  Bank of America, N.A.,

  
	

  as Administrative Agent

  
	

   

  
	

  By:

  	

  /s/ James Foley

  	

   

  
	

   

  	

  Name: James Foley

  
	

   

  	

  Title: Account Officer

  
	

   

  	

   

  
	

  Manufacturers’ Services

  Limited

  
	

   

  	

   

  
	

  By:

  	

  /s/ Sean Lannan

  	

   

  
	

   

  	

  Name: Sean Lannan

  
	

   

  	

  Title: VP, Treasurer

  

 

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