Exhibit 10.1
Execution Version

Borrowing Base Agreement and Third Amendment to Amended and Restated Credit
Agreement
THIS BORROWING BASE AGREEMENT AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”), dated as of February 26, 2014 (the “Amendment
Effective Date”), is by and among Eagle Rock Energy Partners, L.P., a Delaware
limited partnership (the “Borrower”), the Lenders party hereto, and Wells Fargo
Bank, National Association, as administrative agent for the lenders (together
with its successors in such capacity, the “Administrative Agent”).
Recitals
WHEREAS, the Borrower, the Lenders and agents party thereto, and the
Administrative Agent are party to that certain Amended and Restated Credit
Agreement, dated as of June 22, 2011 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”). Unless otherwise defined
herein, capitalized terms used herein shall have the respective meanings
assigned to them in the Credit Agreement;
WHEREAS, the Borrower has requested that the Administrative Agent and the
Lenders amend the Credit Agreement to (i) adjust the requirements of the Total
Leverage Ratio and Senior Secured Leverage Ratio for fiscal quarter ending March
31, 2014, (ii) permit certain adjustments to Consolidated EBITDA as described
below, (iii) permit certain adjustments to the calculation of the Midstream
Component and (iv) postpone the effectiveness of the Scheduled Upstream
Component Redetermination currently scheduled to occur on April 1, 2014;
WHEREAS, the Administrative Agent and the Lenders party hereto are willing to
amend the Credit Agreement and make certain accommodations with respect to the
Upstream Component of the Borrowing Base, in each case as described herein, upon
the satisfaction of the conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
ARTICLE I
Amendments to Credit Agreement
Section 1.01    Amendments to Section 1.01. Section 1.01 of the Credit Agreement
is amended as follows:

(a)The definition of “Applicable Margin” is hereby amended by adding the
following at the end thereof:

Notwithstanding the foregoing, from and including (i) the earlier to occur of
(A) the effective date of a Midstream Multiplier Increase and (B) April 1, 2014,
to but excluding (ii) the Closing

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Date (as defined in the Contribution Agreement), automatically and without any
further action on the part of the Administrative Agent and the Lenders, the
Applicable Margin shall be 200 basis points (in the case of ABR Loans) or 300
basis points (in the case of Eurodollar Loans), as applicable.
(b)The definition of “Consolidated EBITDA” is hereby amended by adding the
following at the end thereof:
Notwithstanding the foregoing, any fees or expenses incurred in connection with
the Borrower evaluating and negotiating a strategic disposition of all of its
Midstream Properties, including, but not limited to the fees or expenses
incurred in connection with the Contribution Agreement shall be added to
Consolidated Net Income in determining Consolidated EBITDA.
(c)The definition of “Midstream Attributed Value” is hereby amended and restated
in its entirety as follows:

“Midstream Attributed Value” means for any Midstream Properties, the Midstream
EBITDA for such Midstream Properties multiplied by 3.75 (or 4.00, if elected
pursuant to under Section 2.08(b)(iv)).
(d)The definition of “Midstream Component” is hereby amended and restated in its
entirety as follows:

“Midstream Component” means an amount equal to the lesser of (a) Midstream
EBITDA multiplied by 3.75 (or 4.00, if elected pursuant to under Section
2.08(b)(iv)) and (b) fifty-five percent (55%) of the Borrowing Base (or sixty
percent (60%) of the Borrowing Base for the first two full fiscal quarters
following an acquisition of Midstream Properties in an aggregate amount in
excess of $25,000,000).
(e)Section 1.01 of the Credit Agreement is hereby amended by adding the
following definitions where alphabetically appropriate:

“Contribution Agreement” means that certain Contribution Agreement, dated as of
December 23, 2013, by and between the Borrower, Regency Energy Partners, L.P., a
Delaware limited partnership, and Regal Midstream LLC, a Delaware limited
liability company.

“Midstream Multiplier Increase” has the meaning assigned to such term in Section
2.08(b)(iv).

Section 1.02    Amendments to Section 2.08(b). Section 2.08(b) is hereby amended
by adding new subsection (iv) at the end thereof as follows:

(iv)    Optional Increase of Midstream Multiplier and Effect Thereof. With
respect to only the four-fiscal quarter periods ending December 31, 2013 and
March 31, 2014, upon the election of the Borrower, the multiplier set forth in
the definitions of “Midstream Attributed Value” and “Midstream Component” shall
be increased from 3.75 to 4.00. To make such election, the Borrower shall
deliver written notice to the Administrative
Agent. Such increase (a “Midstream Multiplier Increase”) shall be effective on
the date of delivery of such written notice. Notwithstanding anything set forth
in this Section 2.08, upon the Borrower’s election of a Midstream Multiplier
Increase, the Midstream Component then in effect (as most recently

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determined pursuant to Section 2.08(b)(ii)) shall be recalculated by the
Administrative Agent using the increased multiplier. The Administrative Agent
shall deliver a New Midstream Component Notice to the Borrower and the Lenders,
and the new Midstream Component, and the resulting new Borrowing Base shall
become the new Midstream Component and the new Borrowing Base, respectively,
effective and applicable to the Borrower, the Agents, any Issuing Bank and the
Lenders as of the date of the Midstream Multiplier Increase.
Section 1.03    Amendments to Section 9.01. Section 9.01 of the Credit Agreement
is hereby amended as follows:

(f)Section 9.01(b) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:
(b)    Total Leverage Ratio. The Borrower will not, as of the last day of any
fiscal quarter, permit the Total Leverage Ratio to be greater than the
applicable ratio set forth for such fiscal quarter below.

Fiscal Quarter Ended
Total Leverage
Ratio
December 31, 2013
5.50:1.00
March 31, 2014
5.85:1.00
June 30, 2014
5.00:1.00
September 30, 2014
4.75:1.00
December 31, 2014
through the Maturity Date
4.50:1.00

(g)Section 9.01(f) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:
(h)

(f)    Senior Secured Leverage Ratio. The Borrower will not, as of the last day
of any fiscal quarter ending on or before September 30, 2014, permit the Senior
Secured Leverage Ratio to exceed the applicable ratio set forth below for such
fiscal quarter.
Fiscal Quarter Ended
Total Senior Secured Leverage
Ratio
December 31, 2013
3.15:1.00
March 31, 2014
3.40:1.00
June 30, 2014
3.05:1.00
September 30, 2014
2.95:1.00

ARTICLE II
Upstream Borrowing Base
Section 2.01    Notwithstanding anything to the contrary set forth in the Credit
Agreement, the Scheduled Upstream Component Redetermination scheduled to become
effective as of April 1, 2014

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pursuant to Section 2.08(a)(iv)(A) of the Credit Agreement is hereby postponed
and shall not become effective until the earlier to occur of (a) the Closing
Date (as defined in the Contribution Agreement) or (b) June 1, 2014 (such date,
the “Postponed Redetermination Date”). In addition, the Borrower, the
Administrative Agent and the Lenders hereby agree that from and after the
Amendment Effective Date, to but excluding the Postponed Redetermination Date,
the amount of the Upstream Component shall be $380,000,000. For the avoidance of
doubt, (i) the foregoing sentence shall not constitute an Interim Upstream
Component Redetermination and (ii) this Section 2.01 shall not affect any of the
Borrower’s obligations set forth in Section 8.12 of the Credit Agreement,
including the obligation to deliver a Reserve Report dated as of December 31,
2013, on or before March 1, 2014.

ARTICLE III
Conditions Precedent
Section 3.01    This Amendment shall not become effective until the date on
which each of the following conditions is satisfied:

(a)the Administrative Agent has received duly executed counterparts of this
Amendment from the Borrower and each Lender, in such numbers as the
Administrative Agent or its counsel may reasonably request;

(b)the Administrative Agent has received, for the account of each Lender, on or
prior to the date hereof, upfront fees in an aggregate amount for each Lender
equal to two and one-half basis points (0.025%) of the amount of such Lender’s
Commitment;

(c)the Administrative Agent and the Lenders have received such other fees as may
be agreed to among the Borrower, the Administrative Agent and the Lenders with
respect hereto and all other fees due and payable on or prior to the
effectiveness hereof as provided in any Loan Document, including to the extent
invoiced in reasonable detail reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Borrower under the Credit
Agreement (including, without limitation, the reasonable fees and expenses of
counsel to the Administrative Agent); and

(d)before and after giving effect to this Amendment, no Default or Event of
Default has occurred and is continuing, or will occur and be continuing as of
the Amendment Effective Date.

The Administrative Agent is authorized to declare this Amendment effective upon
the satisfaction of the foregoing conditions and shall notify the Borrower and
the Lenders thereof, and such notice shall be conclusive and binding.

ARTICLE IV
Representations and Warranties

Section 4.01    Each Loan Party hereby represents and warrants to each Lender
that:

(a)    each of the representations and warranties of such Loan Party set forth
in the Credit Agreement and in the other Loan Documents is true and correct in
all material respects on and as of the Amendment Effective Date as if made on
and as of the Amendment Effective Date, except to the extent any such
representations and warranties are expressly limited to an earlier date, in
which case,

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such representations and warranties continue to be true and correct in all
material respects as of such specified earlier date;
(b)    at the time of, and immediately after giving effect to, this Amendment,
no Default has occurred and is continuing;
(c)    the execution, delivery and performance by such Loan Party of this
Amendment are within its powers and have been duly authorized by all necessary
corporate or other action;
(d)    this Amendment constitutes the legal, valid and binding obligation of
such Loan Party, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law;
and
(e)    the execution, delivery and performance by such Loan Party of this
Amendment (i) does not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority or any other
third Person (including shareholders or any class of directors, whether
interested or disinterested, of the Loan Parties or any other Person), nor is
any such consent, approval, registration, filing or other action necessary for
the validity or enforceability of this Amendment or the consummation of the
transactions contemplated hereby, except such as have been obtained or made and
are in full force and effect other than those third party approvals or consents
which, if not made or obtained, would not cause a Default hereunder, could not
reasonably be expected to have a Material Adverse Effect or do not have an
adverse effect on the enforceability of this Amendment or the other Loan
Documents, (ii) will not violate any applicable law or regulation or any
Organization Document of such Loan Party or any order of any Governmental
Authority, (iii) will not violate or result in a default under any indenture,
agreement or other instrument binding upon such Loan Party or its Properties, or
give rise to a right thereunder to require any payment to be made by such Loan
Party and (iv) will not result in the creation or imposition of any Lien on any
Property of such Loan Party (other than the Liens created by the Loan
Documents).
ARTICLE V
Miscellaneous
Section 5.01    Credit Agreement in Full Force and Effect as Amended. Except as
specifically amended hereby, the Credit Agreement and other Loan Documents shall
remain in full force and effect and are hereby ratified and confirmed as so
amended. Each Loan Party hereby (a) acknowledges the terms of this Amendment and
(b) ratifies and affirms its obligations under, and acknowledges, renews and
extends its continued liability under, and any security interested granted by,
each Loan Document to which it is a party and agrees that each Loan Document to
which it is a party remains in full force and effect, notwithstanding the
consents and waivers contained herein. Except as expressly set forth herein,
this Amendment shall not be deemed to be a waiver, amendment or modification of
any provisions of the Credit Agreement or any other Loan Document or any right,
power or remedy of the Administrative Agent or the Lenders, or constitute a
waiver of any provision of the Credit Agreement or any other Loan Document, or
any other document, instrument and/or agreement executed or delivered in
connection therewith or of any Default or Event of Default under any of the
foregoing, in each case whether arising before or after the date hereof or as a
result of performance hereunder or thereunder. This Amendment also shall not
preclude the future exercise of any right, remedy, power, or privilege available
to the Administrative Agent and/or the Lenders whether under the Credit
Agreement, the other Loan Documents, at law or otherwise. All references to the
Credit Agreement shall be deemed to mean the Credit Agreement as modified
hereby. The parties hereto agree to be bound by the terms and conditions of the
Credit Agreement and Loan Documents as amended by this Amendment, as though such
terms and conditions were set forth herein. Each reference in

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the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or
words of similar import shall mean and be a reference to the Credit Agreement as
amended by this Amendment, and each reference herein or in any other Loan
Documents to the “Credit Agreement” shall mean and be a reference to the Credit
Agreement as amended and modified by this Amendment.

Section 5.02    GOVERNING LAW. THIS AMENDMENT, AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER, SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK.

Section 5.03    Descriptive Headings, Etc. The descriptive headings of the
sections of this Amendment are inserted for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions hereof.
The statements made and the terms defined in the recitals to this Amendment are
hereby incorporated into this Amendment in their entirety.

Section 5.04    Entire Agreement. This Amendment and the documents referred to
herein represent the entire understanding of the parties hereto regarding the
subject matter hereof and supersede all prior and contemporaneous oral and
written agreements of the parties hereto with respect to the subject matter
hereof.

Section 5.05    Loan Document. This Amendment is a Loan Document executed under
the Credit Agreement, and all provisions in the Credit Agreement pertaining to
Loan Documents apply hereto.

Section 5.06    Counterparts. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
shall constitute an original but all of which when taken together shall
constitute but one agreement. Delivery of an executed counterpart of the
signature page of this Amendment by facsimile or other electronic transmission
shall be effective as delivery of a manually executed counterpart thereof.

Section 5.07    Successors. The execution and delivery of this Amendment by any
Lender shall be binding upon each of its successors and assigns.

[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the date first written
above.

BORROWER:
EAGLE ROCK ENERGY PARTNERS, L.P.

By:    Eagle Rock Energy GP, L.P.
By:    Eagle Rock Energy G&P, LLC

By:    /s/ Jeffrey P. Wood                
Name: Jeffrey P. Wood
Title: Chief Financial Officer

GUARANTORS:
EROC MIDSTREAM ENERGY, L.P.

EROC QUITMAN GATHERING COMPANY, LP
EROC GATHERING COMPANY, LP
MIDSTREAM GAS SERVICES, L.P.
EAGLE ROCK FIELD SERVICES, L.P.
EAGLE ROCK ENERGY SERVICES, L.P.
EAGLE ROCK PIPELINE, L.P.
EAGLE ROCK UPSTREAM DEVELOPMENT II, L.P.
EAGLE ROCK GAS GATHERING & PROCESSING, LTD.
EAGLE ROCK OPERATING, L.P.
EAGLE ROCK GOM, L.P.
EAGLE ROCK DESOTO PIPELINE, L.P.
EAGLE ROCK MIDSTREAM, L.P.

By:
Eagle Rock Pipeline GP, LLC, its general partner

By:    /s/ Jeffrey P. Wood                
Name: Jeffrey P. Wood
Title: Chief Financial Officer

EAGLE ROCK ACQUISITION PARTNERSHIP L.P.

By:
Eagle Rock Upstream Development Company, Inc., its general partner

By:    /s/ Jeffrey P. Wood                
Name: Jeffrey P. Wood
Title: Chief Financial Officer

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EAGLE ROCK ACQUISITION PARTNERSHIP II, L.P.

By:
Eagle Rock Upstream Development Company II, Inc., its general partner

By:    /s/ Jeffrey P. Wood                
Name: Jeffrey P. Wood
Title: Chief Financial Officer

EAGLE ROCK ENERGY GP, L.P.

By:
Eagle Rock Energy G&P, LLC, its general partner

By:    /s/ Jeffrey P. Wood                
Name: Jeffrey P. Wood
Title: Chief Financial Officer

EAGLE ROCK ENERGY G&P, LLC
HESCO GATHERING COMPANY, LLC
HESCO PIPELINE COMPANY, L.L.C.
EROC PRODUCTION, LLC
EAGLE ROCK PIPELINE GP, LLC
EAGLE ROCK ENERGY ACQUISITION CO., INC.
EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY, INC.
ESCAMBIA ASSET CO. LLC
ESCAMBIA OPERATING CO. LLC
EAGLE ROCK ENERGY ACQUISITION CO. II, INC.
EAGLE ROCK UPSTREAM DEVELOPMENT COMPANY II, INC.
SUPERIOR GAS COMPRESSION, LLC
GALVESTON BAY GATHERING, LLC
CMA PIPELINE PARTNERSHIP, LLC
EAGLE ROCK FINANCE CORP.
EAGLE ROCK ENERGY G&P HOLDING, INC.
EAGLE ROCK MARKETING, LLC
EAGLE ROCK GAS SERVICES, LLC
EAGLE ROCK MID-CONTINENT HOLDING, LLC
EAGLE ROCK MID-CONTINENT ASSET, LLC

By:    /s/ Jeffrey P. Wood                
Name: Jeffrey P. Wood
Title: Chief Financial Officer

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and Lender

By:    /s/ Shiloh Davila    
Name:    Shiloh Davila
Title: Vice President

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THE ROYAL BANK OF SCOTLAND, plc, as Co-Documentation Agent and Lender

By:    /s/ Sanjay Remond    
Name:    Sanjay Remond
Title:    Director

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

By:    /s/ Michael Clayborne    
Name:    Michael Clayborne
Title:    Vice President

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COMPASS BANK, as a Lender

By:    /s/ Les Werme    
Name:    Les Werme
Title:    Vice President

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CITIBANK, N.A., as a Lender

By:    /s/ Peter Kardos    
Name:    Peter Kardos
Title:    Vice-President

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COMERICA BANK, as a Lender

By:    /s/ William Robinson    
Name:    William Robinson
Title:    Vice President

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ING CAPITAL LLC, as a Lender

By:    /s/ Juli Bieser    
Name:    Juli Bieser
Title:    Director

By:    /s/ Charles Hall    
Name: Charles Hall
Title:    Managing Director

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ROYAL BANK OF CANADA, as a Lender

By:    /s/ Mark Lumpkin, Jr.    
Name:    Mark Lumpkin, Jr.
Title:    Authorized Signatory

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REGIONS BANK, as a Lender

By:    /s/ Kelly L. Elmore III    
Name:    Kelly L. Elmore III
Title:    Senior Vice President

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THE BANK OF NOVA SCOTIA, as a Lender

By:    /s/ Terry Donovan    
Name:    Terry Donovan
Title:    Managing Director

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UBS AG, STAMFORD BRANCH, as a Lender

By:    /s/ Lana Gifas    
Name:    Lana Gifas
Title:    Director

By:    /s/ Jennifer Anderson    
Name:    Jennifer Anderson
Title:    Associate Director

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CAPITAL ONE, N.A., as a Lender

By:    /s/ Matthew L. Molero    
Name:    Matthew L. Molero
Title:    Sr. Vice President

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U.S. BANK NATIONAL ASSOCIATION, as a Lender

By:    /s/ Justin M. Alexander    
Name:    Justin M. Alexander
Title:    Senior Vice President

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GOLDMAN SACHS LENDING PARTNERS LLC, as a Lender

By:    /s/ Michelle Latzoni    
Name:    Michelle Latzoni
Title:    Authorized Signatory

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WHITNEY BANK, as a Lender

By:    /s/ Parker U. Mears    
Name:    Parker U. Mears
Title:    Vice President