Exhibit 10.1
 
FIFTH AMENDMENT TO CREDIT AGREEMENT

THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (herein called the “Amendment”), is
dated as of December 22, 2010, by and among Encore Energy Partners Operating
LLC, a Delaware limited liability company (“Borrower”), Encore Energy Partners
LP, a Delaware limited partnership (“Parent”), Bank of America, N.A., as the
Administrative Agent (the “Administrative Agent”) and L/C Issuer, and the
Lenders party hereto.
 
W I T N E S S E T H:
 
WHEREAS, Borrower, Parent, the Administrative Agent, L/C Issuer and the lenders
party thereto (the “Lenders”) are party to that certain Credit Agreement dated
as of March 7, 2007 (as heretofore amended, the “Original Agreement”), for the
purpose and consideration therein expressed, whereby L/C Issuer became obligated
to issue Letters of Credit to Borrower and the Lenders became obligated to make
loans to Borrower as therein provided; and

WHEREAS, Borrower, Parent, the Administrative Agent, the L/C Issuer and the
Lenders party hereto desire to amend the Original Agreement as set forth herein;
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained herein and in the Original Agreement, in consideration of
the loans and other credit which may hereafter be made by the Lenders and the
L/C Issuer to the Borrower, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:
 
ARTICLE I.

 
DEFINITIONS AND REFERENCES
 
Section 1.1. Terms Defined in the Original Agreement.  Unless the context
otherwise requires or unless otherwise expressly defined herein, the terms
defined in the Original Agreement shall have the same meanings whenever used in
this Amendment.
 
Section 1.2. Other Defined Terms.  Unless the context otherwise requires, the
following terms when used in this Amendment shall have the meanings assigned to
them in this Section 1.2.
 
“Amendment” means this Fifth Amendment to Credit Agreement.
 
“Credit Agreement” means the Original Agreement as amended hereby.
 
 
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ARTICLE II.

 
AMENDMENTS TO ORIGINAL AGREEMENT
 
Section 2.1. Amendments.  Subject to the satisfaction of the conditions
precedent set forth in Sections 3.1 and  3.2, the Original Agreement shall be
amended effective as of the Effective Date (as defined below) in the manner
provided in this Section 2.1.
 
(a) Defined Terms.  The definition of “Denbury Credit Party” is hereby
deleted.  The following definitions are hereby added to Section 1.01 of the
Original Agreement in appropriate alphabetical order:
 
““Vanguard” means Vanguard Natural Resources LLC, a Delaware limited liability
company.”

““Vanguard Credit Party” means Vanguard or any of its Subsidiaries.”

““Vanguard Operating” means Vanguard Natural Gas, LLC, a Kentucky limited
liability company.”

(b) Change of Control.  The definition of “Change of Control” in Section 1.01 of
the Original Agreement is hereby amended in its entirety to read as follows:
 
““Change of Control” means the occurrence of any of the following whether
voluntarily or involuntarily, including by operation of law:
 
(a)           the Borrower shall cease to be, directly or indirectly, a wholly
owned Subsidiary of Parent;
 
(b)           General Partner shall cease to be the sole general partner of
Parent; or General Partner shall cease to be Controlled by Vanguard; or any
“person” or “group” (for purposes of this clause (b) and the following clause
(c), as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”)), other than Vanguard, or any wholly owned
Subsidiary of Vanguard, is or becomes the “beneficial owner” (for purposes of
this clause (b) and the following clause (c), as defined in Rules 13d-3 and
13d-5 under the Exchange Act, except that such a person shall be deemed to have
“beneficial ownership” of all shares that any such person has the right to
acquire, whether such right is exercisable immediately or only after the passage
of time), directly or indirectly, of more than 30% of the total voting power of
the voting stock of General Partner; or
 
(c)           the (i) acquisition of ownership, directly or indirectly,
beneficially or of record, by any “person” or “group” of Equity Interests
representing more than 35% of the total voting power represented by the issued
and outstanding voting stock of Vanguard, or (ii) occupation of a majority of
those seats (other than vacant seats) on the board of managers of Vanguard by
Persons who were neither (X) nominated by the board of managers of Vanguard nor
(Y) appointed by managers so nominated.”
 
 
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(c) Transactions with Affiliates.  The references in Section 7.09 to “Denbury
Credit Party” are hereby amended to read “Vanguard Credit Party”.
 
ARTICLE III.

 
CONDITIONS OF EFFECTIVENESS
 
Section 3.1. Conditions to Effectiveness of this Amendment.  This Amendment
shall become effective when and only when the Administrative Agent shall have
received the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each in form and substance
satisfactory to the Administrative Agent (unless otherwise specified):
 
(a) executed counterparts of this Amendment (or a consent to this Amendment)
from the Required Lenders; and
 
(b) counterparts of this Amendment executed by a Responsible Officer of each
applicable Credit Party sufficient in number for distribution to the
Administrative Agent and the Lenders.
 
Section 3.2. Conditions Precedent to Amendments.  The amendments contained in
Section 2.1 hereof are subject to the satisfaction of the following conditions
precedent (the date such conditions are so satisfied herein called the
“Effective Date”):
 
(a) the “Closing”, as defined in that certain Purchase Agreement by and among
Denbury, Encore Partners GP Holdings LLC, Encore Partners LP Holdings LLC, and
Encore Operating, L.P. as Selling Parties, Vanguard Natural Gas, LLC, as Buyer,
and Vanguard, dated as of November 16, 2010 (the “Purchase Agreement”) has
occurred in accordance in all material respects with the terms of the Purchase
Agreement and applicable law.
 
(b) The Administrative Agent’s receipt of a certificate signed by a Responsible
Officer of the Borrower, in form and substance satisfactory to the
Administrative Agent, certifying that (i) the “Closing” (as defined in the
Purchase Agreement) has occurred, (ii) each of the Borrower and each other
Borrower-Related Party remakes its respective representations and warranties in
accordance with Section 4.02(a) of the Original Agreement as of the Effective
Date, (iii)  no Default shall exist or would result from the Closing (assuming
for this purpose that the amendments set forth in Section 2.1 are in effect),
and (iv) each of the Original Agreement, as amended by this Amendment, and the
other Loan Documents is ratified and confirmed in all respects.
 
(c) Any fees required to be paid by the Credit Parties on or before the
Effective Date pursuant to written agreements entered into by the Credit Parties
shall have been paid.
 
(d) Unless waived by the Administrative Agent, the Borrower shall have paid all
fees, charges and disbursements of counsel to the Administrative Agent to the
extent invoiced prior to the Effective Date, plus such additional amounts of
such fees, charges and disbursements as shall constitute its reasonable estimate
of such fees, charges and disbursements incurred or to be incurred by it through
the closing proceedings (provided that such estimate shall not thereafter
preclude a final settling of accounts between the Borrower and the
Administrative Agent).
 
 
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ARTICLE IV.

 
REPRESENTATIONS AND WARRANTIES
 
Section 4.1. Representations and Warranties.  In order to induce the L/C Issuer
and each Lender to enter into this Amendment, the Borrower and Parent represent
and warrant to the L/C Issuer and each Lender that the representations and
warranties contained in Article V of the Original Agreement, after giving effect
to this Amendment, or any other Loan Document are true and correct in all
material respects on the date hereof, except to the extent such representations
and warranties specifically refer to an earlier date, in which case they are
true and correct as of such earlier date.
 
ARTICLE V.

 
MISCELLANEOUS
 
Section 5.1. Ratification of Agreements.
 
(a)  The Original Agreement, after giving effect to this Amendment, is hereby
ratified and confirmed in all respects.  The other Loan Documents are hereby
ratified and confirmed in all respects.  Any reference to the Credit Agreement
in any Loan Document shall be deemed to be a reference to the Original Agreement
as hereby amended.  The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Administrative Agent or the Lenders under the
Credit Agreement or any other Loan Document, nor constitute a waiver of any
provision of the Credit Agreement or any other Loan Document.
 
(b)  The undersigned Subsidiary or Subsidiaries of the Borrower (whether one or
more, “Subsidiary Guarantor”, and if more than one jointly and severally),
hereby (i) consents to the provisions of this Amendment and the transactions
contemplated herein, (ii) ratifies and confirms the Guaranty made by it for the
benefit of the Administrative Agent and Lenders executed pursuant to the Credit
Agreement and the other Loan Documents made by it, (iii) agrees that all of its
respective obligations and covenants thereunder shall remain unimpaired by the
execution and delivery of this Amendment and the other documents and instruments
executed in connection herewith, and (iv) agrees that such Guaranty and such
other Loan Documents shall remain in full force and effect.

Section 5.2. Survival of Agreements.  All representations, warranties, covenants
and agreements of any Credit Party herein shall survive the execution and
delivery of this Amendment and the performance hereof, and shall further survive
until all of the Obligations are paid in full.  All statements and agreements
contained in any certificate or instrument delivered by any Credit Party
hereunder or under the Credit Agreement to the Administrative Agent or any
Lender shall be deemed to constitute representations and warranties by, and/or
agreements and covenants of, such Credit Party under this Amendment and under
the Credit Agreement.
 
 
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Section 5.3. Loan Documents.  This Amendment is a Loan Document, and all
provisions in the Credit Agreement pertaining to Loan Documents apply hereto.
 
Section 5.4. Governing Law.  This Amendment shall be governed by and construed
in accordance with the Laws applicable to the Credit Agreement.
 
Section 5.5. Counterparts; Fax.  This Amendment may be separately executed in
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed shall be deemed to constitute one and the same
Amendment.  This Amendment may be validly executed by facsimile or other
electronic transmission.
 
THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.
 
[The remainder of this page has been intentionally left blank.]
 

 
 
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IN WITNESS WHEREOF, this Amendment is executed as of the date first above
written.
 
ENCORE ENERGY PARTNERS OPERATING LLC
 
By:           /s/ Mark. C.
Allen                                                      
Name: Mark C. Allen
Title:   Senior Vice President and
  Chief Financial Officer

ENCORE ENERGY PARTNERS LP
 
By:           Encore Energy Partners GP LLC, its sole
 
general partner
 

By:                     /s/ Mark. C.
Allen                                                    
       Name: Mark C. Allen
Title: Senior Vice President and
Chief Financial Officer

ENCORE CLEAR FORK PIPELINE LLC
 
By:                       /s/ Mark. C.
Allen                                                              
Name: Mark C. Allen
Title:   Senior Vice President and
  Chief Financial Officer

 
 
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BANK OF AMERICA, N.A., as Administrative Agent, L/C Issuer and a Lender
 
By:       /s/ Stephen J. Hoffman
Name: Stephen J. Hoffman
Title:  Managing Director
   

 
 
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WELLS FARGO BANK, NATIONAL ASSOCIATION, as Co-Syndication Agent and as a Lender

By:       /s/  Thomas E. Stelmar, Jr. 
Name:  Thomas E. Stelmar, Jr.
Title:    Vice-President

                                                                                                                                       
 
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BNP PARIBAS, as Co-Documentation Agent and as a Lender
 

 

 
By:         /s/ Edward
Pak                                                                   
 
Name: Edward Pak
 
Title: Vice President
 
By:          /s/ Courtney
Kubesch                                                                   
 
Name: Courtney Kubesch
 
Title: Vice President
 

 
 
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CREDIT AGRICOLE CORPORATE AND
 
INVESTMENT BANK (f/k/a CALYON NEW YORK BRANCH), as Co-Documentation Agent and as
a Lender
 

 

 
By:          /s/ Darrell
Stanley                                                                   
 
Name: Darrell Stanley
 
Title: Managing Director
 
By:    /s/ Sharada
Manne                                                           
 
Name: Sharada Manne
 
Title: Director
 

                                                                                                                                      
 
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THE BANK OF NOVA SCOTIA, as a Lender
 

 

 
By:                  /s/ John
Frazell                                                           
 
Name:           John Frazell
 
Title:           Director
 

                                                                                                                                          
 
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COMERICA BANK, as a Lender
 

 

 
By:                  /s/ Dustin S.
Hansen                                                           
 
Name: Dustin S. Hansen
 
Title:           Senior Vice President
 

                                                                                                                                          
 
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NATIXIS, as a Lender
 

 

 
By:        /s/ Donovan C.
Broussard                                                           
 
Name: Donovan C. Broussard
 
Title: Managing Director
 
By: /s/ Liana
Tchernysheva                                                                           
 
Name: Liana Tchernysheva
 
Title: Director
 

 
 
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BANK OF SCOTLAND, as a Lender
 

 

 
By:        /s/ Julia R.
Franklin                                                           
 
Name: Julia R. Franklin
 
Title: Assistant Vice President
 

 
 
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U.S. BANK NATIONAL ASSOCIATION,
 
as a Lender
 

 

 
By:          /s/ Daria
Mahoney                                                           
 
Name: Daria Mahoney
 
Title:           Vice President
 

                                                                                                                                    
 
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UNION BANK, N.A., as a Lender
 

 

 
By:         /s/ Alison
Fuqua                                                           
 
Name: Alison Fuqua
 
Title: Vice President
 

                                                                                                                                        
 
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THE FROST NATIONAL BANK, as a Lender
 

 

 
By:          /s/ John
Warren                                                                   
 
Name: John Warren
 
Title: Sr. Vice President
 

                                                                                                                                          
 
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ROYAL BANK OF CANADA, as a Lender
 

 

 
By:          /s/ Jay T.
Sartain                                                                   
 
Name: Jay T. Sartain
 
Title: Authorized Signatory
 

                                                                                                                                         
 
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CAPITAL ONE, N.A., as a Lender
 

 

 
By: /s/ Scott L.
Joyce                                                                           
 
Name: Scott L. Joyce
 
Title: Senior Vice President
 

                                                                                                                                          
 
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COMPASS BANK, as a Lender
 

 

 
By: /s/  Spencer
Stasney                                                                           
 
Name: Spencer Stasney
 
Title: Vice President
 

 
 
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BARCLAYS BANK PLC, as a Lender
 

 

 
By: /s/  Vanessa A.
Kurbatskiy                                                                           
 
Name: Vanessa A. Kurbatskiy
 
Title: Vice President
 

 

                                                                                                                                      
 
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