Exhibit 10.2
FIRST AMENDMENT TO CREDIT AGREEMENT
     THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of the
26th day of January, 2006, by and among COPANO ENERGY, L.L.C. (“Borrower”), BANK
OF AMERICA, N.A., as Administrative Agent, and the Lenders party hereto.
W I T N E S S E T H:
     WHEREAS, Borrower, Administrative Agent and Lenders named therein entered
into that certain Credit Agreement dated as of August 1, 2005 (the “Original
Agreement”) for the purposes and consideration therein expressed; and
     WHEREAS, Borrower, Administrative Agent and Lenders desire to amend the
Original Agreement for the purposes described herein;
     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein and in the Original Agreement, 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
     § 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.
     § 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 § 1.2.
          “Amendment” means this First Amendment to Credit Agreement.
          “Credit Agreement” means the Original Agreement as amended hereby.
ARTICLE II. — Amendments
     § 2.1. Indebtedness. Section 7.03(b) of the Original Agreement is hereby
amended to read as follows:
     (b) unsecured Indebtedness under the Senior Bridge Facility (or any
unsecured refinancing or replacement thereof with a maturity not earlier than
91 days after the Maturity Date and on terms and conditions not materially more
restrictive than the Loan Documents taken as a whole);
     § 2.2. Hedging Contracts. The references to “an Approved Counterparty” in
Section 7.12(a)(iii) and Section 7.12(b) of the Original Agreement are hereby
amended to refer instead to “a Lender Counterparty or an Approved Counterparty”.
     § 2.3. Burdensome Agreements. Section 7.09(b) of the Original Agreement is
hereby amended in its entirety to read as follows:

1

--------------------------------------------------------------------------------

 

     (b) requires the grant of a Lien to secure an obligation of such Person if
a Lien is granted to secure another obligation of such Person, unless such
Contractual Obligation provides that such requirement shall not apply with
respect to Liens granted to secure the Obligations.
ARTICLE III. — Conditions of Effectiveness
     § 3.1. Effective Date. This Amendment shall become effective as of the date
first written above, when and only when
     (i) Administrative Agent shall have received, at Administrative Agent’s
office a counterpart of this Amendment executed and delivered by Borrower and
Required Lenders;
     (ii) Administrative Agent shall have additionally received all of the
following documents, each document (unless otherwise indicated) being dated the
date of receipt thereof by Administrative Agent, duly authorized, executed and
delivered, and in form and substance satisfactory to Administrative Agent:
Supporting Documents. Such supporting documents as Administrative Agent may
reasonably request.
ARTICLE IV. — Representations and Warranties
     § 4.1. Representations and Warranties of Borrower. In order to induce
Administrative Agent and Lenders to enter into this Amendment, Borrower
represents and warrants to Administrative Agent and each Lender that:
     (a) The representations and warranties of the Borrower and each other Loan
Party contained in Article V of the Credit Agreement or any other Loan Document
are true and correct in all material respects on and as of the date hereof,
except to the extent that 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 that for purposes of this Section 4.1(a), the representations
and warranties contained in subsections (a) and (b) of Section 5.05 of the
Credit Agreement are deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit
Agreement.
     (b) No Default exists.
     (c) No Material Adverse Effect has occurred, and no event or circumstance
has occurred that could reasonably be expected to cause a Material Adverse
Effect, relating to the consolidated financial condition or business of the Loan
Parties since the date of the date of the most recent financial statements
delivered pursuant to Section 4.01(a)(viii) or Section 6.01 of the Credit
Agreement, as applicable.
     (d) Each Loan Party is Solvent.
     (e) The execution, delivery and performance by each Loan Party of this
Amendment has been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of any
of such Person’s Organization Documents; (b)

2

--------------------------------------------------------------------------------

 

conflict with or result in any breach or contravention of, or the creation of
any Lien under, or require any payment to be made under (i) any Contractual
Obligation to which such Person is a party or affecting such Person or the
properties of such Person or any of its Restricted Subsidiaries or (ii) any
order, injunction, writ or decree of any Governmental Authority or any arbitral
award to which such Person or its property is subject; or (c) violate any Law.
     (f) No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any Governmental Authority or any other Person is
necessary or required in connection with the execution, delivery or performance
by, or enforcement against, any Loan Party of this Amendment.
     (g) This Amendment has been duly executed and delivered by each Loan Party
that is party hereto. This Amendment constitutes a legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is party
hereto 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.
ARTICLE V. — Miscellaneous
     § 5.1. Ratification of Agreements. The Original Agreement, as hereby
amended, is hereby ratified and confirmed in all respects. The Loan Documents,
as they may be amended or affected by this Amendment, are hereby ratified and
confirmed in all respects by Borrower and each Loan Party that is party hereto.
Any reference to the Credit Agreement in any Loan Document shall be deemed to
refer to this Amendment also. 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 Administrative Agent or any Lender 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.
     § 5.2. Ratification of Security Documents. Each Loan Party, Administrative
Agent, and Lenders each acknowledge and agree that any and all indebtedness,
liabilities or obligations, arising under or in connection with the Loans,
Letters of Credit or the Notes, are Obligations and are secured indebtedness
under, are guarantied by, and are secured by, each and every Security Document.
Each Loan Party hereby re-pledges, re-grants and re-assigns a security interest
in and lien on every asset of such Loan Party described as Collateral in any
Security Document.
     § 5.3. Survival of Agreements. All representations, warranties, covenants
and agreements of Loan Parties shall survive the execution and delivery of this
Amendment and the performance hereof, including without limitation the making or
granting of each Loan, and shall further survive until all of the Obligations
under the Credit Agreement 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 Administrative Agent or any Lender shall be
deemed to constitute representations and warranties by, or agreements and
covenants of, Borrower under this Amendment and under the Credit Agreement.
     § 5.4. Loan Documents. This Amendment is a Loan Document, and all
provisions in the Credit Agreement pertaining to Loan Documents apply hereto.

3

--------------------------------------------------------------------------------

 

     § 5.5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA IN ALL RESPECTS, INCLUDING CONSTRUCTION, VALIDITY AND
PERFORMANCE.
     § 5.6. Counterparts. 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. Delivery of an executed signature page by facsimile transmission
shall be effective as delivery of a manual executed counterpart.
     IN WITNESS WHEREOF, this Amendment is executed as of the date first above
written.

                  COPANO ENERGY, L.L.C.,       as Borrower
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
  Name:   Matthew J. Assiff    
 
  Title:   Senior Vice President and    
 
      Chief Financial Officer    

4

--------------------------------------------------------------------------------

 

                  BANK OF AMERICA, N.A.,     as Administrative Agent
 
           
 
  By:   /s/ Todd G. MacNeill    
 
           
 
  Name:   Todd G. MacNeill    
 
  Title:   Assistant Vice President    

5

--------------------------------------------------------------------------------

 

                  BANK OF AMERICA, N.A.,     as a Lender and L/C Issuer
 
           
 
  By:   /s/ Gregory B. Hanson    
 
           
 
  Name:   Gregory B. Hanson    
 
  Title:   Vice President    

6

--------------------------------------------------------------------------------

 

                  COMERICA BANK,     as a Lender and Co-Syndication Agent
 
           
 
  By:   /s/ Huma Vadgama    
 
           
 
  Name:   Huma Vadgama    
 
  Title:   Vice President    

7

--------------------------------------------------------------------------------

 

                  U.S. BANK NATIONAL ASSOCIATION,     as a Lender and
Co-Syndication Agent
 
           
 
  By:   /s/ Justin M. Alexander    
 
           
 
  Name:   Justin M. Alexander    
 
  Title:   Vice President    

8

--------------------------------------------------------------------------------

 

                  BANK OF SCOTLAND,     as a Lender and Co-Documentation Agent
 
           
 
  By:   /s/ Karen Weich    
 
           
 
  Name:   Karen Weich    
 
  Title:   Assistant Vice President    

9

--------------------------------------------------------------------------------

 

                  FORTIS CAPITAL CORP.,     as a Lender and Co-Documentation
Agent
 
           
 
  By:   /s/ Darrell Holley    
 
           
 
  Name:   Darrell Holley    
 
  Title:   Managing Director    
 
           
 
  By:   /s/ Casey Lowary    
 
           
 
  Name:   Casey Lowary    
 
  Title:   Senor Vice President    

10

--------------------------------------------------------------------------------

 

                  ROYAL BANK OF CANADA, as a Lender
 
           
 
  By:   /s/ Jason York    
 
           
 
  Name:   Jason York    
 
  Title:   Attorney-In-Fact    

11

--------------------------------------------------------------------------------

 

                  HARRIS NESBITT FINANCING, INC.,     as a Lender
 
           
 
  By:   /s/ Cahal B. Carmody    
 
           
 
  Name:   Cahal B. Carmody    
 
  Title:   Vice President    

12

--------------------------------------------------------------------------------

 

                  GOLDMAN SACHS CREDIT PARTNERS L.P.,     as a Lender
 
           
 
  By:   /s/ Pedro Ramirez    
 
           
 
  Name:   Pedro Ramirez    
 
  Title:   Authorized Signatory    

13

--------------------------------------------------------------------------------

 

                  AMEGY BANK NATIONAL ASSOCIATION,     as a Lender
 
           
 
  By:   /s/ Mark A. Serice    
 
           
 
  Name:   Mark A. Serice    
 
  Title:   Vice President    

14

--------------------------------------------------------------------------------

 

                  DEUTSCHE BANK TRUST COMPANY     AMERICAS, as a Lender
 
           
 
  By:   /s/ Susan Lefevre    
 
           
 
  Name:   Susan Lefevre    
 
  Title:   Director    
 
           
 
  By:   /s/ Lana Gifas    
 
           
 
  Name:   Lana Gifas    
 
  Title:   Vice President    

15

--------------------------------------------------------------------------------

 

                  KEYBANK, NATIONAL ASSOCIATION,     as a Lender
 
           
 
  By:   /s/ Thomas Rajan    
 
           
 
  Name:   Thomas Rajan    
 
  Title:   Vice President    

16

--------------------------------------------------------------------------------

 

                  BANK OF TEXAS, N.A., as a Lender
 
           
 
  By:   /s/ Mari Salazar    
 
           
 
  Name:   Mari Salazar    
 
  Title:   Assistant Vice President    

17

--------------------------------------------------------------------------------

 

                  NATEXIS BANQUES POPULAIRES,     as a Lender
 
           
 
  By:   /s/ Louis P. Laville, III    
 
           
 
  Name:   Louis P. Laville, III    
 
  Title:   Vice President / Manager    
 
           
 
  By:   /s/ Daniel Payer    
 
           
 
  Name:   Daniel Payer    
 
  Title:   Vice President    

18

--------------------------------------------------------------------------------

 

                  STERLING BANK, as a Lender
 
           
 
  By:   /s/ Jeff A. Forbis    
 
           
 
  Name:   Jeff A. Forbis    
 
  Title:   Senior Vice President    

19

--------------------------------------------------------------------------------

 

                  WELLS FARGO BANK, N.A., as a Lender
 
           
 
  By:   /s/ Andrew J. Watson    
 
           
 
  Name:   Andrew J. Watson    
 
  Title:   Vice President    

20

--------------------------------------------------------------------------------

 

CONSENT OF GUARANTORS
Each of the undersigned Guarantors hereby consents to the provisions of this
Amendment and the transactions contemplated herein and therein and hereby
(i) ratifies, confirms and approves the Credit Agreement, the Amendment, the
Guaranty and the other Loan Documents and, in particular, any provisions thereof
which relate to such Guarantor, (ii) acknowledges and agrees that any and all
indebtedness, liabilities or obligations arising under or in connection with the
Credit Agreement and the Notes are Obligations and are guarantied indebtedness
under the Guaranty and are secured indebtedness under, and are secured by each
and every Security Document, (iii) ratifies and confirms the Guaranty and each
Security Document to which it is a party, (iv) expressly acknowledges and agrees
that such Guarantor guarantees all Obligations arising under or in connection
with the Credit Agreement and the Notes pursuant to the terms of the Guaranty,
and hereby re-pledges, re-grants and re-assigns a security interest in and lien
on every asset of such Guarantor described as Collateral in any Security
Document to secure all such Obligations, and (v) agrees that its obligations and
covenants under the Guaranty and each Security Document to which it is a party
are unimpaired hereby and shall remain in full force and effect.

                  ScissorTail Energy, LLC         Copano Energy/Rocky Mountains
and Mid-Continent, L.L.C.         Copano Processing GP, L.L.C.         Copano
NGL Services GP, L.L.C.         Copano Field Services GP L.L.C.         Copano
Pipelines GP, L.L.C.         Copano Pipelines, (Texas) GP, L.L.C.         Copano
Energy Services GP, L.L.C.         Copano Energy Services (Texas) GP, L.L.C.    
    Copano Field Services/Central Gulf Coast GP, L.L.C.        
Copano/Webb-Duval Pipeline GP, L.L.C.         CPNO Services GP, L.L.C.        
Copano Energy Finance Corporation    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano Processing, L.P.         By: Copano Processing GP,
L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano NGL Services, L.P.         By: Copano NGL Services GP,
L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    

21

--------------------------------------------------------------------------------

 

                  Copano Houston Central, L.L.C.         CHC LP Holdings, L.L.C.
        Copano Pipelines Group, L.L.C.         Copano General Partners, Inc.    
    CPG LP Holdings, L.L.C.         CWDPL LP Holdings, L.L.C.         CPNO
Services LP Holdings, L.L.C.    
 
           
 
  By:   /s/ Susan T. Dubb    
 
           
 
      Susan T. Dubb    
 
      Vice President and Assistant Secretary    
 
                Copano Field Services/Agua Dulce, L.P.         Copano Field
Services/Copano Bay, L.P.         Copano Field Services/Karnes, L.P.        
Copano Field Services/Live Oak, L.P.         Copano Field Services/South Texas,
L.P.         Copano Field Services/Upper Gulf Coast, L.P.         By: Copano
Field Services GP L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano Pipelines/Hebbronville, L.P.         Copano
Pipelines/South Texas, L.P.         Copano Pipelines/Upper Gulf Coast, L.P.    
    By: Copano Pipelines GP, L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano Pipelines/Texas Gulf Coast, L.P.         By: Copano
Pipelines, (Texas) GP, L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano Field Services/Central Gulf Coast, L.P.         By:
Copano Field Services/Central Gulf Coast GP, L.L.C., General
       Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    

22

--------------------------------------------------------------------------------

 

                  Copano Energy Services/Upper Gulf Coast, L.P.         By:
Copano Energy Services GP, L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano Energy Services/Texas Gulf Coast, L.P.         By: Copano
Energy Services (Texas) GP, L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                Copano/Webb Duval Pipeline, L.P.         By: Copano/Webb-Duval
Pipeline GP, L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    
 
                CPNO Services, L.P.         Copano Risk Management, L.P.        
By: CPNO Services GP, L.L.C., General Partner    
 
           
 
  By:   /s/ Matthew J. Assiff    
 
           
 
      Matthew J. Assiff    
 
      Senior Vice President and Chief Financial Officer    

23