Exhibit 10.1
FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
     THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (herein
called the “Amendment”) made as of January 31, 2008 by and among Encore
Acquisition Company, a Delaware corporation (the “Borrower”), Encore Operating,
L.P., a Texas limited partnership (“Operating”), Bank of America, N.A., as
Administrative Agent (the “Administrative Agent”) and L/C Issuer (the “L/C
Issuer”), and the Lenders party to the Original Agreement defined below (the
“Lenders”).
W I T N E S S E T H:
     WHEREAS, the Borrower, Operating, the Administrative Agent, the L/C Issuer,
the Co-Syndication Agents and Co-Documentation Agents named therein and the
Lenders are party to that certain Amended and Restated Credit Agreement dated as
of March 7, 2007 (the “Original Agreement”), for the purpose and consideration
therein expressed, whereby the L/C Issuer became obligated to issue Letters of
Credit to the Borrower and the Lenders became obligated to make loans to the
Borrower as therein provided; and
     WHEREAS, the Borrower, Operating, 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 First Amendment to Amended and Restated Credit
Agreement.
     “Amendment Documents” means this Amendment, the Consent and Agreement of
the Guarantors relating to this Amendment and all other documents or instruments
delivered in connection herewith or therewith.
     “Credit Agreement” means the Original Agreement as amended hereby.
[First Amendment to Amended and Restated Credit Agreement]

 

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ARTICLE II.
AMENDMENT AND WAIVER TO ORIGINAL AGREEMENT
     Section 2.1. Hedge Transactions. Section 7.10 of the Original Agreement is
hereby amended to add the following sentence at the end thereof:
     “The foregoing restriction of this Section 7.10 shall not apply to any Oil
and Gas Hedge Transaction that is a floor or put transaction not requiring any
future payments or delivery by any Credit Party.”
     Section 2.2. Waiver. Required Lenders hereby waive any violation of
Section 7.10(ii) of the Credit Agreement that may have occurred between
January 1, 2008 and the Effective Date.
     Section 2.3. Borrowing Base. After giving effect to the sale by the
Borrower of properties described on Exhibit A attached hereto and any reduction
to the Borrowing Base otherwise required by such sale, the Borrower, the
Administrative Agent and the Lenders agree that from the date of such sale until
the next redetermination or adjustment thereof, the Borrowing Base shall be
$870,000,000.
ARTICLE III.
CONDITIONS OF EFFECTIVENESS
     Section 3.1. Conditions to Effectiveness of Amendment. This Amendment shall
become effective when and only when the Administrative Agent shall have received
executed counterparts of this Amendment (or a consent to this Amendment) from
the Required Lenders and the following conditions precedent has been satisfied
(the date such conditions are so satisfied herein called the “Effective Date”);
provided, however, that the provisions in Section 2.3 shall only become
effective when the Administrative Agent shall have received executed
counterparts of this Amendment from one hundred percent (100%) of the Lenders:
The Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Credit
Party, each dated the Effective Date (or, in the case of certificates of
governmental officials, a recent date before the Effective Date) and each in
form and substance satisfactory to the Administrative Agent:
     (i) counterparts of the Amendment Documents executed by the applicable
Credit Parties sufficient in number for distribution to the Administrative
Agent, Required Lenders and the Borrower;
     (ii) a certificate on behalf of each Credit Party certifying that none of
the resolutions, incumbency certificates, organizational documents and/or
certificates of Responsible Officers of each Credit Party as the Administrative
Agent has previously required evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in
connection
[First Amendment to Amended and Restated Credit Agreement]

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with the Loan Documents to which such Credit Party is a party have been amended
or are otherwise inaccurate since they were delivered;
     (iii) such documents and certifications as the Administrative Agent may
reasonably require to evidence that each Credit Party is duly organized or
formed, and that each Credit Party is validly existing and in good standing.
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 Operating
represent and warrant to the L/C Issuer and each Lender that the representations
and warranties contained in Article V of the Original Agreement or any other
Loan Document are true and correct in all material respects on the Effective
Date (including, for all purposes, after giving effect to the Amendment
Documents as “Loan Documents” referred to therein), 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, and except for purposes
of this Amendment, the representations and warranties contained in subsections
(a) and (b) of Section 5.04 of the Credit Agreement shall be deemed to refer to
the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement.
ARTICLE V.
MISCELLANEOUS
     Section 5.1. Ratification of Agreements. The Original Agreement as hereby
amended is hereby ratified and confirmed in all respects. The other Loan
Documents, as they may be amended or affected by the various Amendment
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 and the other Amendment Documents shall not,
except as expressly provided herein or therein, 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.
     Section 5.2. Survival of Agreements. All representations, warranties,
covenants and agreements of any Loan 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 Loan
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 Loan Party under this Amendment and under the
Credit Agreement.
[First Amendment to Amended and Restated Credit Agreement]

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     Section 5.3. Loan Documents. This Amendment is and the other Amendment
Documents are each a Loan Document, and all provisions in the Credit Agreement
pertaining to Loan Documents apply hereto and thereto.
     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 and the other Amendment Documents 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.]
[First Amendment to Amended and Restated Credit Agreement]

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     IN WITNESS WHEREOF, this Amendment is executed as of the date first above
written.

            ENCORE ACQUISITION COMPANY
      By:   /s/ Robert C. Reeves         Robert C. Reeves, Senior Vice
President,        Chief Financial Officer and Treasurer     

                      ENCORE OPERATING, L.P.         By:   EAP Operating, LLC.,
its sole general partner    
 
               
 
      By:   /s/ Robert C. Reeves    
 
               
 
          Robert C. Reeves, Senior Vice President,
Chief Financial Officer and Treasurer    

Signature Page to First Amendment to Credit Agreement

 

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            BANK OF AMERICA, N.A.,
as the Administrative Agent
      By:   /s/ Todd MacNeill         Todd MacNeill        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            BANK OF AMERICA, N.A., as a Lender, L/C Issuer
      By:   /s/ Jeffrey H. Rathkamp         Jeffrey H. Rathkamp        Managing
Director     

Signature Page to First Amendment to Credit Agreement

 

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            WACHOVIA BANK, N.A., as a Lender
      By:   /s/ Leanne S. Phillips         Leanne S. Phillips        Director   
 

Signature Page to First Amendment to Credit Agreement

 

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            FORTIS CAPITAL CORP., as a Lender
      By:   /s/ Michele Jones         Michele Jones        Director             
By:   /s/ Deirdre Sanborn         Deirdre Sanborn        Director     

Signature Page to First Amendment to Credit Agreement

 

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            BNP PARIBAS, as a Lender
      By:   /s/ David Dodd         David Dodd        Managing Director         
    By:   /s/ Polly Schott         Polly Schott        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            CALYON NEW YORK BRANCH, as a Lender
      By:   /s/ Sharada Manne         Sharada Manne        Vice President       
      By:   /s/ Tom Byargeon         Tom Byargeon        Managing Director     

Signature Page to First Amendment to Credit Agreement

 

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            BMO CAPITAL MARKETS FINANCING, INC.,
as a Lender
      By:   /s/ James V. Ducote         James V. Ducote        Director     

Signature Page to First Amendment to Credit Agreement

 

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            MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL
LYNCH BUSINESS FINANCIAL SERVICES, as a Lender
      By:   /s/ Gregory Hanson         Gregory Hanson        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            THE ROYAL BANK OF SCOTLAND PLC, as a Lender
      By:   /s/ Lucy Walker         Lucy Walker        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            SUNTRUST BANK, as a Lender
      By:   /s/ Peter Panos         Peter Panos        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            ALLIED IRISH BANKS PLC, as a Lender
      By:   /s/ Vaughn Buck         Vaughn Buck        EVP - Director           
  By:   /s/ Aidan Lanigan         Aidan Lanigan        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            THE BANK OF NOVA SCOTIA, as a Lender
      By:   /s/ David Mills         David Mills        Director     

Signature Page to First Amendment to Credit Agreement

 

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            COMERICA BANK, as a Lender
      By:   /s/ Peter L. Sefzik         Peter Sefzik        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            GENERAL ELECTRIC CAPITAL CORPORATION,
as a Lender
      By:   /s/ Carl Peterson         Carl Peterson        Authorized Signatory 
   

Signature Page to First Amendment to Credit Agreement

 

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            KEYBANK NATIONAL ASSOCIATION, as a Lender
      By:   /s/ Thomas Rajan         Thomas Rajan        Director     

Signature Page to First Amendment to Credit Agreement

 

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            MIZUHO CORPORATE BANK, LTD., as a Lender
      By:   /s/ Raymond Ventura         Raymond Ventura        Deputy General
Manager     

Signature Page to First Amendment to Credit Agreement

 

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            NATIXIS, as a Lender
      By:   /s/ Donovan C. Broussard         Donovan C. Broussard       
Managing Director              By:   /s/ Liana Tchernysheva         Liana
Tchernysheva        Director     

Signature Page to First Amendment to Credit Agreement

 

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            SUMITOMO MITSUI BANKING CORPORATION, as a Lender
      By:   /s/ William M. Ginn         William M. Ginn        General Manager 
   

Signature Page to First Amendment to Credit Agreement

 

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            WELLS FARGO BANK, N.A., as a Lender
      By:   /s/ Charles D. Kirkham         Charles D. Kirkham        Senior Vice
President     

Signature Page to First Amendment to Credit Agreement

 

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            BANK OF SCOTLAND, as a Lender
      By:   /s/ Karen Weich         Karen Weich        Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            U.S. BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Kathryn A. Gaiter         Kathryn A. Gaiter        Vice
President     

Signature Page to First Amendment to Credit Agreement

 

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            DNB NOR BANK ASA, as a Lender
      By:   /s/ Asa Jemseby Rodgers         Asa Jemseby Rodgers        Vice
President              By:   /s/ Cathleen Buckley         Cathleen Buckley     
  Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            UNION BANK OF CALIFORNIA, N.A., as a Lender
      By:   /s/ Alison Fuqua         Alison Fuqua        Assistant Vice
President              By:   /s/ Randy Osterberg         Randy Oserberg       
Senior Vice President     

Signature Page to First Amendment to Credit Agreement

 

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            CITIBANK, N.A., as a Lender
      By:   /s/ David E. Hunt         David E. Hunt        Attorney-in-Fact     

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            THE FROST NATIONAL BANK, as a Lender
      By:   /s/ John S. Warren         John S. Warren        Senior Vice
President     

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            ROYAL BANK OF CANADA, as a Lender
      By:   /s/ Don J. McKinnerney         Don J. McKinnerney        Authorized
Signatory     

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            WESTLB AG, NEW YORK BRANCH, as a Lender
      By:   /s/ Philip Juskowicz         Philip Juskowicz        Associate
Director              By:   /s/ Felicia Linforgia         Felicia Linforgia     
  Director     

Signature Page to First Amendment to Credit Agreement

 

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            COMPASS BANK, as a Lender
      By:   /s/ Adrianne D. Griffin         Adrianne D. Griffin        Vice
President     

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            MIDFIRST BANK, as a Lender
      By:   /s/ Shawn D. Brewer         Shawn D. Brewer        Vice President   
 

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            UBS LOAN FINANCE LLC, as a Lender
      By:   /s/ Irja R. Otsa         Irja R. Otsa        Associate Director     
        By:   /s/ Mary E. Evans         Mary E. Evans        Associate Director 
   

Signature Page to First Amendment to Credit Agreement

 

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            DZ BANK AG DEUTSCHE ZENTRAL-
GENOSSENSCHAFTSBANK, FRANKFURT AM
MAIN, NEW YORK BRANCH, as a Lender
      By:   /s/ Daria A. Pishko         Daria A. Pishko        First Vice
President              By:   /s/ Judson Horn         Judson Horn       
Assistant Treasurer     

Signature Page to First Amendment to Credit Agreement

 

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            RZB FINANCE LLC, as a Lender
      By:   /s/ Shirley Ritch         Shirley Ritch        Assistant Vice
President              By:   /s/ John A. Valishe         John A. Valishe       
     

Signature Page to First Amendment to Credit Agreement

 

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            STERLING BANK, as a Lender
      By:   /s/ Melissa Bauman         Melissa Bauman        Senior Vice
President     

Signature Page to First Amendment to Credit Agreement

 

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EXHIBIT A
Exhibit A to First Amendment to Amended and Restated Credit Agreement

 

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[First Amendment]
Consent and Agreement to First Amendment to
Amended and Restated Credit Agreement dated as of January 31, 2008
     The undersigned each hereby (a) consents to the provisions of the Amendment
and the transactions contemplated herein and hereby, (b) ratifies and confirms
the Amended and Restated Guaranty dated as of March 7, 2007 made by it in favor
of Bank of America, N.A., as the Administrative Agent, as such Guaranty has been
supplemented, and the other Loan Documents to which it is a party and (c) agrees
that its obligations and covenants under the Loan Documents are unimpaired
hereby and shall remain in full force and effect.

            EAP OPERATING, LLC
      By:   /s/ Robert C. Reeves         Robert C. Reeves        Senior Vice
President, Chief Financial Officer,
and Treasurer     

            ENCORE OPERATING LOUISIANA, LLC
      By:   /s/ Audria Winter                      

            EAP PROPERTIES, INC.
      By:   /s/ Robert C. Reeves         Robert C. Reeves        Senior Vice
President, Chief Financial Officer,
and Treasurer     

[Consent and Agreement]