Document:

Exhibit

VIRTUS INVESTMENT PARTNERS, INC.
 
GUARANTEE AGREEMENT 
 
among 
 
VIRTUS INVESTMENT PARTNERS, INC., 
 
 
EACH OF THE SUBSIDIARY GUARANTORS PARTY HERETO 
 
and 
 
THE BANK OF NEW YORK MELLON, 
as Administrative Agent 
 
____________________________________ 
 
Dated as of September 30, 2016

ARTICLE 1. GUARANTEE; FRAUDULENT TRANSFER, ETC.; CONTRIBUTION1
SECTION 1.1GUARANTEE    1
SECTION 1.2GUARANTEE OF PAYMENT    2
SECTION 1.3FRAUDULENT TRANSFER    2
SECTION 1.4CONTRIBUTIONS    2
ARTICLE 2. OBLIGATIONS NOT WAIVED3
ARTICLE 3. RESERVED3
ARTICLE 4. NO DISCHARGE OR DIMINISHMENT OF GUARANTEE3
ARTICLE 5. DEFENSES OF BORROWER WAIVED4
ARTICLE 6. AGREEMENT TO PAY; SUBORDINATION4
ARTICLE 7. INFORMATION5
ARTICLE 8. REPRESENTATIONS AND WARRANTIES5
ARTICLE 9. TERMINATION5
ARTICLE 10. BINDING EFFECT; SEVERAL AGREEMENT; ASSIGNMENTS6
ARTICLE 11. WAIVERS; AMENDMENTS6
SECTION 11.1NO WAIVER    6
SECTION 11.2AMENDMENTS, ETC.    7
ARTICLE 12. NOTICES7
ARTICLE 13. SURVIVAL OF AGREEMENT; SEVERABILITY7
SECTION 13.1SURVIVAL OF AGREEMENT    7
SECTION 13.2SEVERABILITY    7
ARTICLE 14. ADDITIONAL GUARANTORS7
ARTICLE 15. RIGHT OF SETOFF8
ARTICLE 16. GOVERNING LAW; JURISDICTION; VENUE; WAIVER OF JURY TRIAL8
SECTION 16.1GOVERNING LAW    8
SECTION 16.2CONSENT TO JURISDICTION    8
SECTION 16.3WAIVER OF OBJECTION TO VENUE    9
SECTION 16.4CONSENT TO SERVICE OF PROCESS    9
SECTION 16.5WAIVER OF JURY TRIAL    9
ARTICLE 17. MISCELLANEOUS9
SECTION 17.1HEADINGS    9
SECTION 17.2COUNTERPARTS    9
SECTION 17.3RULES OF INTERPRETATION    9
SECTION 17.4RESOLUTION OF DRAFTING AMBIGUITIES    9

EXHIBITS:
	
		
	Exhibit A
	List of Subsidiaries and Addresses for Notices

	Exhibit B
	Form of Supplement

GUARANTEE AGREEMENT, dated as of September 30, 2016, among VIRTUS INVESTMENT PARTNERS, INC., a Delaware corporation (the “Borrower”), each of the Subsidiaries of the Borrower listed on Exhibit A hereto or which becomes a party hereto in accordance to Article 14 (each such Subsidiary, individually, a “Subsidiary Guarantor” or “Guarantor” and, collectively, the “Subsidiary Guarantors” or “Guarantors”) and THE BANK OF NEW YORK MELLON, as Administrative Agent under the Credit Agreement referred to in the next paragraph acting on behalf of the Credit Parties (as defined in such Credit Agreement).
RECITALS
A.    Reference is made to the Credit Agreement, dated as of September 30, 2016, among the Borrower, the Lenders party thereto, PNC Bank, National Association, as Syndication Agent,  and The Bank of New York Mellon, as Administrative Agent, Swingline Lender, and as Issuing Bank (as the same may be amended, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms used herein and not defined herein, and the term “subsidiary”, shall have the meanings assigned to such terms in the Credit Agreement.
B.    The Lenders have agreed to make Revolving Loans to, Swingline Lender has agreed to make Swingline Loans to, and the Issuing Bank has agreed to issue Letters of Credit for the account of, the Borrower pursuant to, and upon the terms and subject to the conditions specified in, the Credit Agreement.  Each Guarantor is a direct or indirect Subsidiary of the Borrower and each of the Borrower and each Guarantor acknowledges that the Revolving Loans, Swingline Loans, Letters of Credit and other financial accommodations made under the Loan Documents will enhance the aggregate borrowing powers of the Borrower and credit availability to the other Loan Parties and facilitate their loan relationship with the Credit Parties, all to the mutual advantage of the Borrower and the Guarantors. 
C.    Each Guarantor further acknowledges that it will derive substantial direct and indirect benefit from the making of the Revolving Loans, the Swingline Loans, and the issuance of the Letters of Credit.
D.    The execution and delivery by the Guarantors and the Borrower of this Guarantee Agreement is a condition precedent to the effectiveness of the Credit Agreement, and the Credit Parties would not have entered into the Credit Agreement if the Guarantors and the Borrower had not executed and delivered this Guarantee Agreement.
Accordingly, the parties hereto agree as follows:

Article 1. 
GUARANTEE; FRAUDULENT TRANSFER, ETC.; CONTRIBUTION

Section 1.1    Guarantee. Each Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the Credit Obligations.  Each Guarantor further agrees that the Credit Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Credit Obligation.  

Section 1.2    Guarantee of Payment. Each Guarantor further agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives any right to require that any resort be had by the Administrative Agent or any other Credit Party to any balance of any deposit account or credit on the books of the Administrative Agent or any other Credit Party in favor of the Borrower or any other person.

Section 1.3    Fraudulent Transfer. Anything in this Guarantee Agreement to the contrary notwithstanding, the obligations of each Subsidiary Guarantor hereunder shall be limited to a maximum aggregate amount equal to the greatest amount that would not render such Subsidiary Guarantor’s obligations hereunder subject to avoidance as a fraudulent transfer, obligation or conveyance under Section 548 of Title 11 of the United States Code or any provisions of applicable state law (collectively, the “Fraudulent Transfer Laws”), in each case after giving effect to all other liabilities of such Subsidiary Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Subsidiary Guarantor in respect of intercompany debt owed or owing to the Borrower or Affiliates of the Borrower to the extent that such debt would be discharged in an amount equal to the amount paid by such Subsidiary Guarantor hereunder) and after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, contribution, reimbursement, indemnity or similar rights of such Subsidiary Guarantor pursuant to (I) applicable law or (II) any agreement providing for an equitable allocation among such Subsidiary Guarantor and other Affiliates of the Borrower of obligations arising under guarantees by such parties (including the agreements described in Section 1.4).

Section 1.4    Contributions. In addition to all rights of indemnity and subrogation the Subsidiary Guarantors may have under applicable law (but subject to this paragraph), the Borrower agrees that (i) in the event a payment shall be made by any Subsidiary Guarantor hereunder, the Borrower shall indemnify such Subsidiary Guarantor for the full amount of such payment, and such Subsidiary Guarantor shall be subrogated to the rights of the Person to whom such payments shall have been made to the extent of such payment, and (ii) in the event that any assets of any Subsidiary Guarantor shall be sold pursuant to any Loan Document to satisfy any claim of any Credit Party, the Borrower shall indemnify such Subsidiary Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so sold.  Each Subsidiary Guarantor (a “Contributing Subsidiary Guarantor”) agrees (subject to this paragraph) that, in the event a payment shall be made by any other Subsidiary Guarantor hereunder or assets of any other Subsidiary Guarantor shall be sold pursuant to any Loan Document to satisfy a claim of any Credit Party and such other Subsidiary Guarantor (the “Claiming Subsidiary Guarantor”) shall not have been fully indemnified by the Borrower as provided in this paragraph, the Contributing Subsidiary Guarantor shall indemnify the Claiming Subsidiary Guarantor in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such assets, as applicable, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Subsidiary Guarantor on the date hereof and the denominator shall be the aggregate net worth of all the Subsidiary Guarantors (other than any Terminated Subsidiary Guarantor) on the date hereof (or, in the case of any Subsidiary Guarantor becoming a party hereto pursuant to Article 14, the date of the Supplement hereto executed and delivered by such Subsidiary Guarantor).  Any Contributing Subsidiary Guarantor making any payment to a Claiming Subsidiary Guarantor pursuant to this paragraph shall be subrogated to the rights of such Claiming Subsidiary Guarantor under this paragraph to the extent of such payment.  Notwithstanding any provision of this paragraph to the contrary, all rights of the Subsidiary Guarantors under this paragraph and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the final and indefeasible payment in full in cash of the Credit Obligations.  No failure on the part of the Borrower or any Subsidiary Guarantor to make the payments required by this paragraph (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Subsidiary Guarantor with respect to its obligations under this paragraph, and each Subsidiary Guarantor shall remain liable for the full amount of the obligations of such Subsidiary Guarantor under this paragraph.

ARTICLE 2.     
OBLIGATIONS NOT WAIVED
To the fullest extent permitted by applicable law, each Guarantor waives presentment to, demand of payment from, and protest to any Loan Party of any of the Credit Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment.  To the fullest extent permitted by applicable law, the obligations of each Guarantor hereunder shall not be affected by (i) the failure of the Administrative Agent or any other Credit Party to assert any claim or demand or to enforce or exercise any right or remedy against the Borrower or any other Guarantor under the provisions of the Credit Agreement or any other Loan Document, or otherwise or (ii) any rescission, waiver, amendment or modification of, or any release from, any of the terms or provisions of this Guarantee Agreement, any other Loan Document, any Guarantee or any other agreement, including with respect to any other Guarantor under this Guarantee Agreement.

ARTICLE 3.     
RESERVED

ARTICLE 4.     
NO DISCHARGE OR DIMINISHMENT OF GUARANTEE
The obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason (other than the final and indefeasible payment in full in cash of the Credit Obligations), including any claim of waiver, release, surrender, alteration or compromise of any of the Credit Obligations, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Credit Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by the failure of the Administrative Agent or any other Credit Party to assert any claim or demand or to enforce any remedy under the Credit Agreement, any other Loan Document or any other agreement, by any waiver or modification of any provision of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the Credit Obligations, or by any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or that would otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the final and indefeasible payment in full in cash of all the Credit Obligations).

ARTICLE 5.     
DEFENSES OF BORROWER WAIVED
To the fullest extent permitted by applicable law, each of the Guarantors waives any defense based on or arising out of any defense of the Borrower or any other Loan Party or the unenforceability of the Credit Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party, other than the final and indefeasible payment in full in cash of the Credit Obligations.  The Administrative Agent and the other Credit Parties may, at their election, compromise or adjust any part of the Credit Obligations, make any other accommodation with the Borrower or any Guarantor or exercise any other right or remedy available to them against the Borrower or any Guarantor, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Credit Obligations have been fully, finally and indefeasibly paid in cash.  Pursuant to applicable law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other Guarantor, as applicable, or any security.

ARTICLE 6.     
AGREEMENT TO PAY; SUBORDINATION
In furtherance of the foregoing and not in limitation of any other right that the Administrative Agent or any other Credit Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Credit Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent or such other Credit Party as designated thereby in cash the amount of such unpaid Credit Obligations.  Upon payment by any Guarantor of any sums to the Administrative Agent or any Credit Party as provided above, all rights of such Guarantor against the applicable Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subordinate and junior in right of payment to the prior final and indefeasible payment in full in cash of the Credit Obligations.  In addition, any debt or Lien of the Borrower or any other Loan Party now or hereafter held by any Guarantor is hereby subordinated in right of payment to the prior final and indefeasible payment in full in cash of the Credit Obligations.  If any amount shall erroneously be paid to any Guarantor on account of (i) such subrogation, contribution, reimbursement, indemnity or similar right or (ii) any such debt of the Borrower or such other Loan Party, such amount shall be held in trust for the benefit of the Credit Parties and shall forthwith be paid to the Administrative Agent to be credited against the payment of the Credit Obligations, whether matured or unmatured, in accordance with the terms of the Loan Documents.

ARTICLE 7.     
INFORMATION
Each Guarantor assumes all responsibility for being and keeping itself informed of each Loan Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Credit Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Administrative Agent or the other Credit Parties will have any duty to advise any of the Guarantors of information known to it or any of them regarding such circumstances or risks.

ARTICLE 8.     
REPRESENTATIONS AND WARRANTIES
Each of the Subsidiary Guarantors represents and warrants as to itself that all representations and warranties relating to it contained in the Credit Agreement are true and correct.

ARTICLE 9.     
TERMINATION
The guarantees made hereunder (i) shall terminate when all Commitments have expired or otherwise terminated and the principal of and interest on each Revolving Loan and each Swingline Loan and all fees and other amounts payable under the Loan Documents shall have been finally and indefeasibly paid in full in cash and all Letters of Credit have expired or otherwise terminated and all LC Disbursements have been indefeasibly reimbursed in full in cash and (ii) shall continue to be effective or be reinstated, as applicable, if at any time payment, or any part thereof, of any such Credit Obligation is rescinded or must otherwise be restored by any Credit Party or any Guarantor upon the bankruptcy or reorganization of any Loan Party or otherwise.

ARTICLE 10.     
BINDING EFFECT; SEVERAL AGREEMENT; ASSIGNMENTS
Whenever in this Guarantee Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Guarantor that are contained in this Guarantee Agreement shall bind and inure to the benefit of each party hereto and its successors and assigns.  This Guarantee Agreement shall become effective as to any Guarantor when a counterpart hereof executed on behalf of such Guarantor shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and thereafter shall be binding upon such Guarantor and the Administrative Agent, and their respective successors and assigns, and shall inure to the benefit of such Guarantor, the Administrative Agent and the other Credit Parties, and their respective successors and assigns, except that no Guarantor shall have the right to assign its rights or obligations hereunder or any interest herein (and any such attempted assignment shall be void), except as expressly contemplated by this Guarantee Agreement or the other Loan Documents.  In the event that (a) any Subsidiary Guarantor becomes a Terminated Subsidiary Guarantor or (b) any Equity Interests in any Subsidiary Guarantor is sold, transferred or otherwise disposed of pursuant to a transaction permitted by the Loan Documents and, immediately after giving effect thereto, such Subsidiary Guarantor shall no longer be a Subsidiary, then in either such case the obligations of such Subsidiary Guarantor under this Guarantee Agreement shall be automatically released.  This Guarantee Agreement shall be construed as a separate agreement with respect to each Guarantor and may be amended, modified, supplemented, waived or released with respect to any Guarantor without the approval of any other Guarantor and without affecting the obligations of any other Guarantor hereunder.

ARTICLE 11.     
WAIVERS; AMENDMENTS

Section 11.1    No Waiver. No failure or delay of the Administrative Agent in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent hereunder and of the other Credit Parties under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Guarantee Agreement or any other Loan Document or consent to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be permitted by Section 11.2, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No notice or demand on any Guarantor in any case shall entitle such Guarantor to any other or further notice or demand in similar or other circumstances.

Section 11.2    Amendments, etc. Neither this Guarantee Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered into by, between or among the Administrative Agent and the Guarantor or Guarantors with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 10.2 of the Credit Agreement.

ARTICLE 12.     
NOTICES
All communications and notices hereunder shall be in writing and given as provided in Section 10.1 of the Credit Agreement.  All communications and notices hereunder to the Administrative Agent or the Borrower shall be given to it at its address for notices set forth in such Section, and all communications and notices hereunder to any Guarantor shall be given to it at the address set forth for such Guarantor on Exhibit A, with a copy to the Borrower.

ARTICLE 13.     
SURVIVAL OF AGREEMENT; SEVERABILITY

Section 13.1    Survival of Agreement. All covenants, agreements, representations and warranties made by the Guarantors herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Guarantee Agreement or any other Loan Document shall be considered to have been relied upon by the Administrative Agent and the other Credit Parties and shall survive the execution and delivery of any Loan Document, the making of any Revolving Loan, the making of any Swingline Loan, and the issuance of any Letter of Credit, regardless of any investigation made by the Credit Parties or on their behalf, and shall continue in full force and effect until this Guarantee Agreement shall terminate.

Section 13.2    Severability. In the event any one or more of the provisions contained in this Guarantee Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

ARTICLE 14.     
ADDITIONAL GUARANTORS
Upon execution and delivery after the date hereof by the Administrative Agent and a Subsidiary of an instrument in the form of Exhibit B, such Subsidiary shall become a Subsidiary Guarantor hereunder with the same force and effect as if originally named as a Subsidiary Guarantor herein.  The execution and delivery of any such instrument shall not require the consent of any other Guarantor hereunder.  The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Guarantor as a party to this Guarantee Agreement.

ARTICLE 15.     
RIGHT OF SETOFF
If an Event of Default shall have occurred and be continuing, each Credit Party is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to setoff and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other Indebtedness at any time owing by such Credit Party to or for the credit or the account of any Guarantor against any or all the obligations of such Guarantor now or hereafter existing under this Guarantee Agreement and the other Loan Documents held by such Credit Party, irrespective of whether or not such Credit Party shall have made any demand under this Guarantee Agreement or any other Loan Document and although such obligations may be unmatured.  The rights of each Credit Party under this Article are in addition to other rights and remedies (including other rights of setoff) which such Credit Party may have.

ARTICLE 16.     
GOVERNING LAW; JURISDICTION; VENUE; WAIVER OF JURY TRIAL

Section 16.1    GOVERNING LAW. THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

Section 16.2    Consent to Jurisdiction. Each Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guarantee Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that, to the extent permitted by applicable law, all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by applicable law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Guarantee Agreement shall affect any right that the Administrative Agent or any other Credit Party may otherwise have to bring any action or proceeding relating to this Guarantee Agreement or the other Loan Documents against any Guarantor, or any of its property, or in the courts of any jurisdiction.

Section 16.3    Waiver of Objection to Venue. Each Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guarantee Agreement or the other Loan Documents in any court referred to in Section 16.2.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

Section 16.4    Consent to Service of Process. Each party to this Guarantee Agreement irrevocably consents to service of process in the manner provided for notices in Article 12.  Nothing in this Guarantee Agreement will affect the right of any party to this Guarantee Agreement to serve process in any other manner permitted by law.

Section 16.5    WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTEE AGREEMENT.  EACH PARTY HERETO HEREBY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTEE AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

ARTICLE 17.     
MISCELLANEOUS

Section 17.1    Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Guarantee Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Guarantee Agreement.

Section 17.2    Counterparts. This Guarantee Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which, when taken together, shall constitute but one contract (subject to Article 10), and shall become effective as provided in Article 10.  Delivery of an executed counterpart of this Guarantee Agreement by facsimile transmission shall be as effective as delivery of a manually executed counterpart of this Guarantee Agreement.

Section 17.3    Rules of Interpretation. The rules of interpretation specified in Sections 1.2, 1.3 and 1.4 of the Credit Agreement shall be applicable to this Guarantee Agreement.

Section 17.4    Resolution of Drafting Ambiguities. The Borrower and each Guarantor acknowledges and agrees that it was represented by counsel in connection with the execution and delivery of this Guarantee Agreement, that it and its counsel reviewed and participated in the preparation and negotiation thereof and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation hereof or thereof.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Guarantee Agreement as of the day and year first above written.
VIRTUS INVESTMENT PARTNERS, INC.
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Chief Financial
Officer
DUFF & PHELPS INVESTMENT MANAGEMENT CO.
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Treasurer
EUCLID ADVISORS LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Treasurer
KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT, LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Senior Vice President & Chief Financial 
    Officer
NEWFLEET ASSET MANAGEMENT, LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Chief Financial
Officer

Virtus Investment Partners, Inc. Guarantee Agreement

RAMPART INVESTMENT MANAGEMENT COMPANY, LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal 
Title:    Executive Vice President & Chief Financial     Officer
VIRTUS ALTERNATIVE INVESTMENT ADVISERS, INC.
By:  /s/Michael A. Angerthal 
Name:  Michael A. Angerthal 
Title:   Executive Vice President and Treasurer
VIRTUS FUND SERVICES, LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Treasurer 
VIRTUS INVESTMENT ADVISERS, INC.
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Chief Financial
Officer
VIRTUS PARTNERS, INC.
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President, Chief Financial
Officer

Virtus Investment Partners, Inc. Guarantee Agreement

VIRTUS RETIREMENT INVESTMENT ADVISERS, LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President, Chief Financial
Officer
ZWEIG ADVISERS, LLC
By: /s/Michael A. Angerthal
Name:    Michael A. Angerthal
Title:    Executive Vice President & Chief Financial
Officer

Virtus Investment Partners, Inc. Guarantee Agreement

THE BANK OF NEW YORK MELLON, 
as Administrative Agent

By: /s/Richard G. Shaw
Name:    Richard G. Shaw
Title:     Vice President

Virtus Investment Partners, Inc. Guarantee Agreementois20161004b_8k.htm

Exhibit 10.1

 

 

CONSENT AND AMENDMENT NO. 1

 

This Consent and Amendment No. 1, dated as of October 3, 2016 (this “Amendment”) is among Oil States International, Inc., a Delaware corporation (the “Borrower”), each of the Guarantors, the Lenders party hereto and Wells Fargo Bank, N.A. (“Wells Fargo”), as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders.

 

INTRODUCTION

 

WHEREAS, the Borrower, the lenders party thereto (the “Lenders”) and the Administrative Agent are parties to the Credit Agreement dated as of May 28, 2014 (as amended, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”);  

 

WHEREAS, the Borrower and its Subsidiaries intend to engage in the Specified Reorganization Transactions (as defined below) and have requested that the Lenders consent to such transactions to the extent necessary under the Credit Agreement;

 

WHEREAS, the Borrower and its Subsidiaries have requested that the Lenders make certain other amendments to the Credit Agreement as specified herein; and 

 

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations and warranties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

Section 1.                Definitions.  Unless otherwise defined in this Amendment, terms used in this Amendment that are not defined herein and are defined in the Credit Agreement shall have the meanings assigned to such terms in the Credit Agreement.

 

Section 2.                Consent.  

 

(a)   The undersigned Lenders constituting at least the Required Lenders (the “Consenting Lenders”) consent, to the extent necessary under the Credit Agreement, to the intercompany transactions between or among the Borrower and its Subsidiaries as described in the letter from the Borrower to the Administrative Agent, dated September 26, 2016, and the step plan draft dated September 27, 2016, a copy of which was delivered to the Administrative Agent on the morning of September 29, 2016 (collectively, the “Specified Reorganization Transactions”), but solely to the extent such intercompany transactions consist of (i) the formation of Subsidiaries that are not Guarantors by Subsidiaries so long as the Investment made to effect such formation is no greater than $1,000 per Subsidiary, (ii) the acquisition of or ownership of Equity Interests in Subsidiaries that are not Guarantors by Subsidiaries, (iii) the transfers of Equity Interests in Subsidiaries that are not Guarantors to other Subsidiaries that are not Guarantors and (iv) Investments in the form of Equity Interests contributed as described in the foregoing clause (ii) and (iii) above or in the form of an intercompany promissory note between or among Subsidiaries that are not Guarantors.

 

 

1

 

 

(b)   The Consenting Lenders agree that, notwithstanding the applicable time periods specified in the Security Documents or Section 5.09 of the Credit Agreement, any actions required to be taken by the Borrower or any Subsidiary with respect to Collateral or pursuant to the Security Documents or with respect to Collateral or the Guarantee Agreement under Section 5.09 of the Credit Agreement resulting from the Specified Reorganization Transactions shall be completed by the Borrower or such Subsidiary within 30 days (or such longer period as the Administrative Agent may agree in its sole discretion) after the date hereof.

 

Section 3.                Amendments. 

 

(a)   Section 1.01 of the Credit Agreement shall be amended by adding the following new defined terms to appear in alphabetical order therein:

 

“Intercompany Restructuring Transactions” means the intercompany transactions described in that certain Consent and Amendment No. 1 dated October 3, 2016 which amends this Agreement and consented to therein but so long as such transactions are solely among or between the Subsidiaries of the Borrower.

 

(b)   Section 2.21(g) of the Credit Agreement shall be amended by deleting the first sentence of the proviso at the end thereof in its entirety and replacing it with the following text:

 

“provided, however, that the Borrower shall have a claim against the Issuing Bank, and the Issuing Bank shall be liable to, and shall promptly pay to, the Borrower, to the extent of any direct, as opposed to consequential (claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law), damages suffered by the Borrower that are caused by such Issuing Bank’s gross negligence or willful misconduct in determining whether drafts and other documents presented under a Letter of Credit strictly comply with the terms thereof.”

 

(c)   Section 6.01(c) of the Credit Agreement shall be amended by replacing the phrase “Sections 6.04(a), (f), (l) and (m)” with the phrase “Sections 6.04(a), (f), (k), (l) and (m)”.

 

(d)   Section 6.04(k) of the Credit Agreement shall be amended by deleting “[Reserved];” and replacing it with the following text: “to the extent constituting an Investment, the Intercompany Restructuring Transactions;”

 

(e)   Section 6.04 of the Credit Agreement shall be amended by deleting the proviso at the end thereof in its entirety and replacing it with the following text:

 

“provided, that, no Investment in or acquisition of any Foreign Subsidiary or FSHCO shall be made after the Effective Date if as of the date such Investment is made hereunder: (x) a Default under Section 7.01(b), (c), (g) or (h) or Event of Default exists or would immediately result therefrom, or (y) immediately after giving effect to each such Investment or acquisition, Liquidity is less than $100,000,000.”

 

 

2

 

 

Section 4.                Representations and Warranties.  The Borrower represents and warrants to the Administrative Agent and the Lenders that:

 

(a)   the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document are true and correct in all material respects (provided that to the extent any representation and warranty is qualified as to “Material Adverse Effect” or otherwise as to “materiality”, such representation and warranty is true and correct in all respects) on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date;

 

(b)   no Event of Default or Default has occurred and is continuing;

 

(c)   (i) the execution, delivery, and performance of this Amendment are within the corporate power and authority of the Borrower and each other Loan Party and have been duly authorized by appropriate proceedings, and (ii) this Amendment constitutes a legal, valid, and binding obligation of the Borrower and each other Loan Party, enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity.

 

Section 5.                Effectiveness.  This Amendment and the consents in Section 2 hereof shall be made effective, and the Credit Agreement shall be amended as provided in this Amendment, upon the occurrence of the following conditions precedent:

 

(a)   the Administrative Agent shall have received duly and validly executed copies of this Amendment on behalf of the Borrower, the Guarantors, the Administrative Agent and Lenders constituting the Required Lenders;

 

(b)   the Administrative Agent shall have received all fees and other amounts due and payable on or prior to the date of this Amendment, including, to the extent invoiced two Business Days prior to the date hereof, reimbursement or payment of all out-of-pocket expenses (including, without limitation, the reasonable fees, charges and disbursements of counsel for the Administrative Agent) required to be reimbursed or paid by the Borrower hereunder or under any other Loan Document;

 

(c)   a certificate of the Secretary or Assistant Secretary (or such other corporate officer satisfactory to the Administrative Agent) of the Borrower dated as of the date hereof and certifying (1) that attached thereto is a true and complete copy of the organizational documents of the Borrower as in effect on the date hereof and at all times since a date prior to the date of the resolutions described in clause (2) below, (2) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors (or persons performing similar functions) of the Borrower authorizing the Transactions to be entered into by the Borrower and the execution, delivery and performance of the Amendment and that such resolutions have not been modified, rescinded or amended and are in full force and effect and (3) as to the incumbency and specimen signature of the officer executing the Amendment; provided, that, with respect to any of the certifications required in the foregoing clauses (1), (2) or (3), a certification that such organizational documents, resolutions or incumbency and specimen signature have not changed since the delivery of the certificate required pursuant to Section 4.02(a)(v) of the Credit Agreement shall be sufficient to satisfy this condition.

 

 

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Section 6.                Reaffirmation of Guaranty and Liens; Agreement.

 

(a)   Each of the Borrower and each of its Subsidiaries that is listed on the signature pages to this Amendment (each, a “Guarantor”) (i) is party to a Guarantee Agreement, guaranteeing payment of the Obligations, (ii) has reviewed the Amendment and related documents, and (iii) waives any defenses to the enforcement of its Guarantee Agreement that it may have, and agrees that according to its terms such Guarantee Agreement will continue in full force and effect to guaranty the Obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified, and such other amounts in accordance with the terms of such Guarantee Agreement.

 

(b)   Each of the Borrower and each Guarantor (i) is party to certain Security Documents securing and supporting the Obligations, (ii) has reviewed the Amendment and related documents, (iii) waives any defenses that it may have to the enforcement of the Security Documents to which they are party, (iv) agrees that according to their terms the Security Documents to which it is party will continue in full force and effect to secure the Obligations under the Loan Documents, as the same may be amended, supplemented, or otherwise modified, and (v) acknowledges, represents, and warrants that the Liens and security interests created by the Security Documents are valid and subsisting and create a first priority perfected security interest subject to Liens expressly permitted by Section 6.02 of the Credit Agreement in the Collateral to secure the Obligations.  

 

(c)   The delivery of this Amendment does not indicate or establish a requirement that any Guarantee Agreement or Security Document requires any Guarantor’s approval of amendments to the Credit Agreement, but has been furnished as a courtesy at the Administrative Agent’s request.

 

Section 7.                Effect on Credit Documents.

 

(a)   Except as amended herein, the Credit Agreement and the Loan Documents remain in full force and effect as originally executed and are ratified and confirmed, and nothing herein shall act as a waiver of any of the Administrative Agent’s or Lenders’ rights and remedies under the Loan Documents, as amended, including the waiver of any Default or Event of Default, however denominated.

 

(b)   This Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach of representations, warranties, and covenants under this Amendment may be a Default or Event of Default under other Loan Documents.

 

 

4

 

 

Section 8.                  Choice of Law. THIS AMENDMENT. SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

Section 9.                  Miscellaneous.  This Amendment may be signed in any number of counterparts, each of which shall be an original. Delivery of an executed signature page to this Amendment by facsimile transmission or other electronic means shall be as effective as delivery of a manually signed counterpart of this Amendment. The captions in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof. In the event that any one or more of the provisions contained in this Amendment shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Amendment.

 

[The remainder of this page has been left blank intentionally.]

 

 

5

 

 
	
BORROWER:
	
OIL STATES INTERNATIONAL, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Lias J. Steen
	
 

	
 
	
 
	
Name:  Lias J. Steen
	
 

	
 
	
 
	
Title:    Executive Vice President, Human Resources & Legal  

 

 

 

 

 
	
GUARANTORS:
	
ACUTE TECHNOLOGICAL SERVICES, INC.

CAPSTAR DRILLING, INC.

CAPSTAR HOLDING, L.L.C.

OIL STATES ENERGY SERVICES HOLDING, INC.

OIL STATES ENERGY SERVICES, L.L.C.

OIL STATES INDUSTRIES, INC.

OIL STATES MANAGEMENT, INC.

OIL STATES SKAGIT SMATCO, LLC

OSES INTERNATIONAL, LLC

TEMPRESS TECHNOLOGIES, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Lias J. Steen
	
 

	
 
	
 
	
Name:  Lias J. Steen
	
 

	
 
	
 
	
Title:    Secretary
	
 

 

 

 

 

 

	
 
	
WELLS FARGO BANK, N.A., as a Lender and Administrative Agent
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Robert Corder
	
 

	
 
	
 
	
Name:  Robert Corder
	
 

	
 
	
 
	
Title:    Director
	
 

 

 

 

 

 

	
 
	
ROYAL BANK OF CANADA, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Jay T. Sartain
	
 

	
 
	
 
	
Name:  Jay T. Sartain
	
 

	
 
	
 
	
Title:    Authorized Signatory
	
 

 

 

 

 

 

	
 
	
COMPASS BANK, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Michael Song
	
 

	
 
	
 
	
Name:   Michael Song
	
 

	
 
	
 
	
Title:     Senior Vice President
	
 

 

 

 

 

 

	
 
	
BANK OF AMERICA, N.A., as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Tyler Ellis
	
 

	
 
	
 
	
Name:  Tyler Ellis
	
 

	
 
	
 
	
Title:    Senior Vice President
	
 

 

 

 

 

 

	
 
	
JPMORGAN CHASE BANK, N.A., as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Thomas Okamoto
	
 

	
 
	
 
	
Name:  Thomas Okamoto
	
 

	
 
	
 
	
Title:    Authorized Officer
	
 

 

 

 

 

 

	
 
	
FIFTH THIRD BANK, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Neil G. Mesch
	
 

	
 
	
 
	
Name:  Neil G. Mesch
	
 

	
 
	
 
	
Title:    Senior Vice President
	
 

 

 

 

 

 

	
 
	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Anastasiya Haurylenia
	
 

	
 
	
 
	
Name:  Anastasiya Haurylenia
	
 

	
 
	
 
	
Title:    Vice President
	
 

 

 

 

 

 

	
 
	
CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Matthew Brice
	
 

	
 
	
 
	
Name:  Matthew Brice
	
 

	
 
	
 
	
Title:    Vice President
	
 

 

 

 

 

 

	
 
	
REGIONS BANK, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Joey Powell
	
 

	
 
	
 
	
Name:  Joey Powell
	
 

	
 
	
 
	
Title:    Director
	
 

 

 

 

 

 

	
 
	
ZB, N.A. dba AMEGY BANK, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Michael Threadgill
	
 

	
 
	
 
	
Name:  Michael Threadgill
	
 

	
 
	
 
	
Title:    Assistant Vice President
	
 

 

 

 

 

 

	
 
	
BARCLAYS BANK PLC, as a lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Jonathan Wilson
	
 

	
 
	
 
	
Name:  Jonathan Wilson
	
 

	
 
	
 
	
Title:    Director
	
 

 

 

 

 

 

	
 
	
DNB CAPITAL LLC, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Rob Dupree
	
 

	
 
	
 
	
Name:  Rob Dupree
	
 

	
 
	
 
	
Title:    Senior Vice President
	
 

 

 

	
 
	
By: 
	
/s/ Einar Gulstad
	
 

	
 
	
 
	
Name:  Einar Gulstad
	
 

	
 
	
 
	
Title:    Senior Vice President
	
 

 

 

 

Signature Page to Consent and Amendment No. 1
(Oil States International, Inc.)

 

 

 

 

 

	
 
	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Mikhail Faybusovich
	
 

	
 
	
 
	
Name:  Mikhail Faybusovich
	
 

	
 
	
 
	
Title:    Authorized Signatory
	
 

 

 

	
 
	
By: 
	
/s/ Warren Van Heyst
	
 

	
 
	
 
	
Name:  Warren Van Heyst
	
 

	
 
	
 
	
Title:    Authorized Signatory
	
 

 

 

 

 

 

	
 
	
SUMITOMO MITSUI BANKING CORPORATION, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ David Kee
	
 

	
 
	
 
	
Name:  David Kee
	
 

	
 
	
 
	
Title:    Managing Director
	
 

 

 

 

 

 

	
 
	
WHITNEY BANK, as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Eric Luttrell
	
 

	
 
	
 
	
Name:  Eric Luttrell
	
 

	
 
	
 
	
Title:    Senior Vice President
	
 

 

 

 

 

 

	
 
	
CADENCE BANK, N.A., as a Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Tim Ashe
	
 

	
 
	
 
	
Name:  Tim Ashe
	
 

	
 
	
 
	
Title:    Banking Officer

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