Exhibit 10.1
SECOND AMENDMENT TO CREDIT AGREEMENT
     This Second Amendment to Credit Agreement (this “Second Amendment”) is
entered into as of September 30, 2010, by and among Denbury Resources Inc., a
Delaware corporation (“Borrower”), JPMorgan Chase Bank, N.A., as Administrative
Agent (“Administrative Agent”), and the financial institutions parties hereto as
Banks (hereinafter collectively referred to as “Executing Banks”, and each
individually, an “Executing Bank”).
W I T N E S S E T H
     WHEREAS, Borrower, Administrative Agent, the other agents party thereto and
Banks are parties to that certain Credit Agreement dated as of March 9, 2010 (as
amended, the “Credit Agreement”) (unless otherwise defined herein, all terms
used herein with their initial letter capitalized shall have the meaning given
such terms in the Credit Agreement, including, to the extent applicable, after
giving effect to the amendments set forth in Section 1 of this Second
Amendment);
     WHEREAS, pursuant to the Credit Agreement, Banks have made a Revolving Loan
to Borrower and provided certain other credit accommodations to Borrower;
     WHEREAS, Borrower has advised Administrative Agent and Banks that the loss
of gas production as a result of a possible sale of the Haynesville Assets (the
“Haynesville Sale”) may cause the Credit Parties to have (a) hedged more than
100% of their reasonably anticipated projected production from Proved Mineral
Interests of gas as prohibited by Section 9.11(a)(i) of the Credit Agreement,
and (b) total production of gas that is less than the aggregate amount of gas
which is the subject of Oil and Gas Hedge Transactions as prohibited by
Section 9.11(b)(ii) of the Credit Agreement (collectively, the “Temporary Gas
Hedging Noncompliance”), in each case during the period commencing on the
effective date of the Haynesville Sale and continuing through and including
May 1, 2011 (such period, the “Specified Period”), which Temporary Gas Hedging
Noncompliance would be prohibited by Section 9.17 of the Credit Agreement;
     WHEREAS, Borrower has requested that Banks (a) amend certain terms of the
Credit Agreement to provide Borrower and the other Credit Parties additional
time to complete a sale of the Haynesville Assets and to make certain other
changes thereto as more specifically described herein, (b) provide a limited
waiver of any Temporary Gas Hedging Noncompliance that may occur during the
Specified Period and (c) reaffirm the existing Borrowing Base;
     WHEREAS, subject to and upon the terms and conditions set forth herein,
Executing Banks have agreed to Borrower’s requests; and
     NOW THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed,
Borrower, Administrative Agent and Executing Banks hereby agree as follows:

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Section 1. Amendments. In reliance on the representations, warranties, covenants
and agreements contained in this Second Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 4 hereof, the
Credit Agreement shall be amended effective as of the Effective Date in the
manner provided in this Section 1.
     1.1 Additional Definition. Section 1.1 of the Credit Agreement shall be
amended to add thereto in alphabetical order the following definition of “Second
Amendment” which shall read in full as follows:
     “Second Amendment” means that certain Second Amendment to Credit Agreement
dated as of September 30, 2010 among Borrower, Administrative Agent and Banks
party thereto.
     1.2 Amendment to Definition. The definition of “Loan Papers” contained in
Section 1.1 of the Credit Agreement shall be amended and restated to read in
full as follows:
     “Loan Papers” means this Agreement, the First Amendment, the Second
Amendment, the Notes, each Facility Guarantee which may now or hereafter be
executed, each Borrower Pledge Agreement which may now or hereafter be executed,
each Subsidiary Pledge Agreement which may now or hereafter be executed, all
Mortgages now or at any time hereafter delivered pursuant to Section 5.1, and
all other certificates, documents or instruments delivered in connection with
this Agreement, as the foregoing may be amended from time to time.
     1.3 Amendment to Security Provision. Clause (a)(ii) of Section 5.1 of the
Credit Agreement shall be amended and restated to read in full as follows:
     “(ii) prior to any Distributions being permitted to be made to any
Restricted Subsidiary pursuant to the terms of Section 9.2(b) and/or the
definition of “Permitted Investments,” all of the issued and outstanding Equity
of each Restricted Subsidiary owned by Borrower and each Restricted Subsidiary”
     1.4 Amendment to Environmental Matters Provision. The fourth sentence of
Section 7.15 of the Credit Agreement shall be amended to add “and” immediately
preceding the reference to “(b)” set forth therein.
     1.5 Amendment to Asset Dispositions Provision. Clause (h) of Section 9.5 of
the Credit Agreement shall be amended to (a) delete the reference to
“November 1, 2010” therein and replace such reference with “May 1, 2011” in lieu
thereof, and (b) delete the “;” at the end of subclause (vi) and insert a “.”in
lieu thereof.
     1.6 Amendment to Hedge Transactions Provision. Clause (a) of Section 9.11
of the Credit Agreement shall be amended to delete the reference to “tenor” in
the third line thereof and replace such reference with “term” in lieu thereof.

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     1.7 Amendment to Events of Default Provision. Clause (f) of Section 11.1 of
the Credit Agreement shall be amended to delete the reference to “$5,000,000”
therein and replace such reference with “$20,000,000” in lieu thereof.
Section 2. Limited Waiver. In reliance on the representations, warranties,
covenants and agreements contained in this Second Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 4 hereof, Banks
hereby consent to the Temporary Gas Hedging Noncompliance during the Specified
Period; provided, that Borrower will not, nor will Borrower permit any other
Credit Party to, enter into any Hedge Transaction for gas during the Specified
Period unless such Hedge Transaction, together with any other existing Hedge
Transactions for gas, will not cause a violation of Sections 9.11 and 9.17 of
the Credit Agreement. Borrower acknowledges and agrees that the limited waiver
set forth in this Section 2 is limited solely to Sections 9.11(a)(i),
9.11(b)(ii) and 9.17 of the Credit Agreement and applies solely with respect to
the Temporary Gas Hedging Noncompliance during the Specified Period caused as a
direct result of the Credit Parties’ loss of gas production from the Haynesville
Sale. The limited waiver set forth in this Section 2 is a limited, one-time
waiver, and nothing contained herein shall obligate Administrative Agent or
Banks to grant any additional or future waiver with respect to, or in connection
with, any provisions of the Credit Agreement or any other Loan Paper.
Section 3. Borrowing Base. Effective as of the Effective Date, the Borrowing
Base shall be reaffirmed at $1,600,000,000. Notwithstanding anything to the
contrary contained in the Credit Agreement, the Borrowing Base shall remain at
$1,600,000,000 until the Scheduled Redetermination scheduled for May 1, 2011,
unless there is a Special Redetermination or other redetermination or adjustment
of the Borrowing Base prior to such time. The Borrower and Executing Banks agree
that the reaffirmation of the Borrowing Base provided for in this Section 3
shall constitute the Scheduled Redetermination of the Borrowing Base scheduled
for November 1, 2010 and shall not be construed or deemed to be a Special
Redetermination for the purposes of Section 4.3 of the Credit Agreement.
Section 4. Conditions Precedent to Amendment. The amendments contained in
Section 1 hereof, the limited waiver provided in Section 2 hereof and the
reaffirmation of the Borrowing Base contained in Section 3 hereof shall be
effective on the date that each of the following conditions precedent is
satisfied (the “Effective Date”):
     Counterparts. Administrative Agent shall have received counterparts hereof
duly executed by Borrower and Required Banks and acknowledged by each Restricted
Subsidiary (or, in the case of any party as to which an executed counterpart
shall not have been received, telegraphic, telecopy, or other written
confirmation from such party of execution of a counterpart hereof by such
party).
     4.1 No Default. No Default or Event of Default shall have occurred which is
continuing.
     4.2 Other Documents. Administrative Agent shall have been provided with
such documents, instruments and agreements, and Borrower shall have taken such
actions, in each

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case as Administrative Agent may reasonably require in connection with this
Second Amendment and the transactions contemplated hereby.
Section 5. Representations and Warranties. To induce Executing Banks and
Administrative Agent to enter into this Second Amendment, Borrower hereby
represents and warrants to Banks and Administrative Agent as follows:
     5.1 Reaffirm Existing Representations and Warranties. Each representation
and warranty of Borrower contained in the Credit Agreement and the other Loan
Papers is true and correct in all material respects on the date hereof and will
be true and correct in all material respects after giving effect to the
amendments set forth in Section 1 hereof, except that any representation or
warranty that is qualified by “material” or “Material Adverse Effect” references
therein shall be true and correct in all respects.
     5.2 Due Authorization; No Conflict. The execution, delivery and performance
by Borrower of this Second Amendment are within Borrower’s corporate or
organizational powers, have been duly authorized by all necessary action,
require no action by or in respect of, or filing with, any governmental body,
agency or official and do not violate or constitute a default under any
provision of applicable law or any Material Agreement binding upon Borrower or
any other Credit Party or result in the creation or imposition of any Lien upon
any of the assets of Borrower or any other Credit Party other than Liens
securing the Obligations.
     5.3 Validity and Enforceability. This Second Amendment constitutes the
valid and binding obligation of Borrower enforceable in accordance with its
terms, except as (i) the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditor’s rights generally, and (ii) the
availability of equitable remedies may be limited by equitable principles of
general application.
Section 6. Miscellaneous.
     6.1 Reaffirmation of Loan Papers. Any and all of the terms and provisions
of the Credit Agreement and the Loan Papers shall, except as amended and
modified hereby, remain in full force and effect. The amendments contemplated
hereby shall not limit or impair any Liens securing the Obligations, each of
which are hereby ratified, affirmed and extended to secure the Obligations as
they may be increased pursuant hereto.
     6.2 Parties in Interest. All of the terms and provisions of this Second
Amendment shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.
     6.3 Legal Expenses. Borrower hereby agrees to pay on demand all reasonable
fees and expenses of counsel to Administrative Agent incurred by Administrative
Agent in connection with the preparation, negotiation and execution of this
Second Amendment and all related documents.
     6.4 Counterparts. This Second Amendment may be executed in counterparts,
and all parties need not execute the same counterpart; however, no party shall
be bound by this

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Second Amendment until Borrower, Required Banks and each Restricted Subsidiary
have executed a counterpart. Facsimiles shall be effective as originals.
     6.5 Complete Agreement. THIS SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE
OTHER LOAN PAPERS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.
     6.6 Headings. The headings, captions and arrangements used in this Second
Amendment are, unless specified otherwise, for convenience only and shall not be
deemed to limit, amplify or modify the terms of this Second Amendment, nor
affect the meaning thereof.
[Signature Pages to Follow]

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

            BORROWER:

DENBURY RESOURCES INC.,
a Delaware corporation
    By:   /s/ Mark C. Allen               Mark C. Allen,              Senior
Vice President and Chief Financial
      Officer   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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     Each of the undersigned (i) consent and agree to this Second Amendment, and
(ii) agree that the Loan Papers to which it is a party shall remain in full
force and effect and shall continue to be the legal, valid and binding
obligation of such Person, enforceable against it in accordance with its terms.

                      DENBURY MARINE, L.L.C.,         a Louisiana limited
liability company    
 
                    By:   /s/ Mark C. Allen                             Mark C.
Allen,               Senior Vice President and               Chief Financial
Officer    
 
                    DENBURY OPERATING COMPANY,         a Delaware corporation  
 
 
                    By:   /s/ Mark C. Allen                             Mark C.
Allen,               Senior Vice President and               Chief Financial
Officer    
 
                    TUSCALOOSA ROYALTY FUND LLC,         a Mississippi limited
liability company    
 
                    By:   Denbury Operating Company, its sole             member
   
 
               
 
      By:   /s/ Mark C. Allen    
 
         
 
      Mark C. Allen,    
 
                Senior Vice President and    
 
                Chief Financial Officer    

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            DENBURY GATHERING & MARKETING, INC.,
a Delaware corporation
      By:   /s/ Mark C. Allen           Mark C. Allen,          Senior Vice
President and Chief Financial Officer        DENBURY GREEN PIPELINE-TEXAS, LLC,
a Delaware limited liability company
      By:   /s/ Mark C. Allen               Mark C. Allen,              Senior
Vice President and Chief Financial
      Officer        ENCORE OPERATING LOUISIANA, LLC, a Delaware limited
liability company
      By:   /s/ Mark C. Allen           Mark C. Allen,          Senior Vice
President and Chief Financial Officer        GREENCORE PIPELINE COMPANY LLC, a
Delaware limited liability company
      By:   /s/ Mark C. Allen           Mark C. Allen,          Senior Vice
President and Chief Financial Officer   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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                      ENCORE OPERATING, L.P.,         a Texas limited
partnership    
 
                    By:   EAP Operating LLC, its general partner    
 
               
 
      By:   /s/ Mark C. Allen    
 
         
 
      Mark C. Allen,    
 
                Senior Vice President and    
 
                Chief Financial Officer    
 
                    DENBURY ONSHORE, LLC,         a Delaware limited liability
company    
 
                    By:   /s/ Mark C. Allen                                 Mark
C. Allen,                   Senior Vice President and                   Chief
Financial Officer    
 
                    EAP OPERATING, LLC,         a Delaware limited liability
company    
 
                    By:   /s/ Mark C. Allen                                 Mark
C. Allen,                   Senior Vice President and                   Chief
Financial Officer    
 
                    EAP PROPERTIES, INC.,         a Delaware corporation    
 
                    By:   /s/ Mark C. Allen                                 Mark
C. Allen,                   Senior Vice President and                   Chief
Financial Officer    

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            DENBURY ENCORE HOLDINGS INC.,
a Delaware corporation
      By:   /s/ Mark C. Allen               Mark C. Allen,              Senior
Vice President and Chief Financial
      Officer   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            ADMINISTRATIVE AGENT/BANK:

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and a Bank
      By:   /s/ Brian P. Orlando               Brian P. Orlando,       
      Vice President   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

BANK OF AMERICA, N.A.
      By:   /s/ Stephen J. Hoffman         Name:   Stephen J. Hoffman       
Title:   Managing Director   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

BNP PARIBAS
      By:   /s/ Edward Pak         Name:   Edward Pak        Title:   Vice
President            By:   /s/ Juan Carlos Sandoval         Name:   Juan Carlos
Sandoval       Title:   Vice President   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

THE BANK OF NOVA SCOTIA
      By:   /s/ Keith Buchanan         Name:   Keith Buchanan        Title:  
Managing Director   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
      By:   /s/ Mikhail Faybusovich         Name:   Mikhail Faybusovich       
Title:   Vice President            By:   /s/ Vipul Dhadda         Name:   Vipul
Dhadda        Title:   Associate   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

ROYAL BANK OF CANADA
      By:   /s/ Jason S. York         Name:   Jason S. York        Title:  
Authorized Signatory   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

WELLS FARGO BANK, N.A.
      By:   /s/ Thomas E. Stelmar, Jr.         Name:   Thomas E. Stelmar, Jr.   
    Title:   Vice President   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

UBS LOAN FINANCE, LLC
      By:   /s/ Mary E. Evans         Name:   Mary E. Evans        Title:  
Associate Director            By:   /s/ Irja R. Otsa         Name:   Irja R.
Otsa        Title:   Associate Director   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

UNION BANK, N.A.
      By:   /s/ Alison Fuqua         Name:   Alison Fuqua        Title:   Vice
President   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (f/k/a CALYON NEW YORK BRANCH)
      By:   /s/ Darrell Stanley         Name:   Darrell Stanley        Title:  
Managing Director            By:   /s/ Sharada Manne         Name:   Sharada
Manne        Title:   Director   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

BANK OF SCOTLAND plc
      By:   /s/ Julia R. Franklin         Name:   Julia R. Franklin       
Title:   Assistant Vice President   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

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

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

CAPITAL ONE, N.A.
      By:   /s/ Peter Shen         Name:   Peter Shen        Title:   Vice
President   

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

COMERICA BANK
      By:   /s/ Dustin Hansen         Name:   Dustin Hansen        Title:  
Senior Vice President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

ING CAPITAL LLC
      By:   /s/ Juli Bieser         Name:   Juli Bieser        Title:  
Director     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

SUNTRUST BANK
      By:   /s/ Gregory C. Magnuson         Name:   Gregory C. Magnuson       
Title:   Vice President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

CIBC, INC.
      By:   /s/ Trudy W. Nelson         Name:   Trudy W. Nelson        Title:  
Executive Director     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

KEYBANK NATIONAL ASSOCIATION
      By:   /s/ Todd Coker         Name:   Todd Coker        Title:   Vice
President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

U.S. BANK NATIONAL ASSOCIATION
      By:   /s/ Daria Mahoney         Name:   Daria Mahoney        Title:   Vice
President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

SUMITOMO MITSUI BANKING CORP.
      By:   /s/ Masakazu Hasegawa         Name:   Masakazu Hasegawa       
Title:   General Manager     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

FIFTH THIRD BANK
      By:   /s/ Garland Robeson         Name:   Garland Robeson        Title:  
Assistant Vice President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

ALLIED IRISH BANKS p.l.c.
      By:   /s/ Edward Fenk         Name:   Edward Fenk        Title:   Vice
President   

            By:   /s/ James Giordano         Name:   James Giordano       
Title:   Assistant Vice President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

STERLING BANK
      By:   /s/ Ryan Michael         Name:   Ryan Michael        Title:   Vice
President     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.

 

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            BANKS:

GOLDMAN SACHS BANK USA
      By:   /s/ Allison O’Conner         Name:   Allison O’ Conner       
Title:   Authorized Signatory     

[Signature Page]
Second Amendment to Credit Agreement
Denbury Resources Inc.