Document:

exv4w2

 

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO AN ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH AN
ISSUER OR ANY AFFILIATE OF AN ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE)
(THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO AN ISSUER OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES
TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40 DAY DISTRIBUTION
COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE
(E) PRIOR TO THE

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RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) IN EACH OF THE
FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

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COPANO ENERGY, L.L.C.

COPANO ENERGY FINANCE CORPORATION

	 	 	 	 	 	 	 
	No. 001

	 	 	 	$	224,500,000	 
	 
	 	 	 	 	 	 
	 

	 	CUSIP No.
	 	217203 AA 6

	 

	 	ISIN No.
	 	US217203AA60

8.125% Senior Note due 2016

     Copano Energy, L.L.C., a Delaware limited liability company, and Copano Energy Finance
Corporation, a Delaware corporation, jointly and severally promise to pay to CEDE & CO., or
registered assigns, the principal sum of Two Hundred Twenty Four Million Five Hundred Thousand
Dollars on March 1, 2016 or such greater or lesser amount as may be indicated on Schedule A hereto.

     Interest Payment Dates: March 1 and September 1.

     Record Dates: February 15 and August 15.

     Additional provisions of this Note are set forth on the other side of this Note.

	 	 	 	 	 
	 	Copano Energy, L.L.C.

 	 
	 	By:  	 /s/ Matthew J. Assiff	 
	 	 	Name:  	Matthew J. Assiff 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	Copano Energy Finance Corporation

 	 
	 	By:  	 /s/ Matthew J. Assiff	 
	 	 	Name:  	Matthew J. Assiff 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 

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TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

U.S. Bank National Association,

as Trustee, certifies that

this is one of the Notes

referred to in the Indenture.

	 	 	 	 	 
	By

	 	 /s/ Kevin McIllwaine	 	 
	 	 	 	 	 
	 

	 	          Authorized Signatory	 	 

Dated: February 7, 2006

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8.125% Senior Note due 2016

     Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

     1. Interest. Copano Energy, L.L.C., a Delaware limited liability company (the
“Company”), and Copano Energy Finance Corporation, a Delaware corporation (the “Finance Corp.” and,
together with the Company, the “Issuers”), jointly and severally promise to pay interest on the
principal amount of this Note at 8.125% per annum from February 7, 2006 until maturity and shall
pay the Additional Interest payable pursuant to Section 5 of the Registration Rights Agreement
referred to below. The Issuers will pay interest and Additional Interest, if any, semi-annually in
arrears on March 1 and September 1 of each year, commencing September 1, 2006, or if any such day
is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”).
Interest on the Notes will accrue from the most recent date to which interest has been paid or, if
no interest has been paid, from the date of original issuance; provided that if there is no
existing Default or Event of Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date, except in the case of the
original issuance of Notes, in which case interest shall accrue from the date of authentication.
The Issuers shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate
that is the rate then in effect; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest
(without regard to any applicable grace periods) from time to time on demand at the same rate to
the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

     2. Method of Payment. The Issuers will pay interest on the Notes (except defaulted
interest) and Additional Interest to the Persons who are registered Holders of Notes at the close
of business on the February 15 or August 15 next preceding the Interest Payment Date, even if such
Notes are cancelled after such record date and on or before such Interest Payment Date, except as
provided in Section 2.11 of the Indenture with respect to defaulted interest. Holders must
surrender Notes to the Paying Agent to collect payments of principal and premium, if any, together
with accrued and unpaid interest and Additional Interest, if any, due at maturity. The Notes will
be payable as to principal, premium, if any, interest and Additional Interest, if any, at the
office or agency of the Issuers maintained for such purpose within the City and State of New York,
or, at the option of the Issuers, payment of interest and Additional Interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders, and provided that
payment by wire transfer of immediately available funds will be required with respect to any
amounts due on all Global Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Issuers or the Paying Agent. Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts.

     3. Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may change

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any Paying Agent or Registrar without notice to any Holder. The Company or any of its
Subsidiaries may act in any such capacity.

     4. Indenture. The Issuers issued the Notes under an Indenture dated as of February 7,
2006 (“Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a statement of such
terms. The Notes are unsecured senior obligations of the Issuers limited to $225,000,000 aggregate
principal amount in the case of Notes issued on the Initial Issuance Date (as defined in the
Indenture).

     5. Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the Issuers shall
not have the option to redeem the Notes prior to March 1, 2011. On or after March 1, 2011, the
Issuers shall have the option to redeem the Notes, in whole or in part at any time, upon prior
notice as set forth in Paragraph 8, at the redemption prices (expressed as percentages of principal
amount) set forth below, plus accrued and unpaid interest and Additional Interest, if any, to the
applicable redemption date (subject to the right of Holders of record on the relevant record date
to receive interest due on an Interest Payment Date that is on or prior to the redemption date), if
redeemed during the twelve-month period beginning on March 1 of the years indicated below:

	 	 	 	 	 
	YEAR	 	PERCENTAGE
	2011
	 	 	104.0625	%
	2012
	 	 	102.7083	%
	2013
	 	 	101.3542	%
	2014 and thereafter
	 	 	100.0000	%

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to March 1, 2009, the Issuers may on any one or more occasions redeem up to 35% of the aggregate
principal amount of Notes (including any Additional Notes) issued under the Indenture at a
redemption price of 108.125% of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest, if any, thereon to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on an Interest Payment Date that is on
or prior to the redemption date), with the net cash proceeds of one or more Equity Offerings by the
Company; provided that (i) at least 65% of the aggregate principal amount of Notes (including any
Additional Notes) issued under the Indenture remains outstanding immediately after the occurrence
of each such redemption (excluding any Notes held by the Company and its Subsidiaries) and (ii)
each such redemption occurs within 120 days of the date of the closing of each such Equity
Offering.

     (c) Prior to March 1, 2011, the Issuers may redeem all or part of the notes upon not less than
30 nor more than 60 days’ notice, at a redemption price equal to the sum of (1) the principal
amount thereof, plus (2) accrued and unpaid interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant record date to receive interest due on an

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interest payment date that is on or prior to the redemption date), plus (3) the Make Whole
Premium at the redemption date.

     6. Mandatory Redemption.

     Except as set forth in Paragraph 7 below, neither of the Issuers shall be required to make
mandatory redemption or sinking fund payments with respect to the Notes or to repurchase the Notes
at the option of the Holders.

     7. Repurchase at Option of Holder.

     (a) Within 30 days following the occurrence of a Change of Control, the Company shall make an
offer (a “Change of Control Offer”) to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount of Notes repurchased, plus accrued and unpaid interest and Additional Interest, if
any, to the date of settlement (the “Change of Control Settlement Date”), subject to the right of
Holders of record on the relevant record date to receive interest due on an Interest Payment Date
that is on or prior to the Change of Control Settlement Date. Within 30 days following a Change of
Control, the Company shall mail a notice of the Change of Control Offer to each Holder and the
Trustee describing the transaction that constitutes the Change of Control and setting forth the
procedures governing the Change of Control Offer as required by Section 4.15 of the Indenture.

     (b) On the 361st day after an Asset Sale, if the aggregate amount of Excess Proceeds then
exceeds $20.0 million, the Company shall commence an offer to all Holders of Notes (an “Asset Sale
Offer”) pursuant to Section 3.09 of the Indenture, and to all holders of any Pari Passu
Indebtedness then outstanding, to purchase the maximum principal amount of Notes and such Pari
Passu Indebtedness that may be purchased out of the Excess Proceeds, at an offer price in cash in
an amount equal to 100% of the principal amount of the Notes plus accrued and unpaid interest and
Additional Interest, if any, thereon to the date of settlement, subject to the right of Holders of
record on the relevant record date to receive interest due on an Interest Payment Date that is on
or prior to the Change of Control Settlement Date, in accordance with the procedures set forth in
the Indenture. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the
Company may use such remaining Excess Proceeds for any purpose not otherwise prohibited by the
Indenture. If the aggregate principal amount of Notes surrendered by Holders thereof and Pari
Passu Indebtedness surrendered by holders or lenders, collectively, exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and Pari Passu Indebtedness to be purchased on a pro
rata basis (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in
denominations of $1,000, or integral multiples thereof, shall be purchased) on the basis of the
aggregate principal amount of tendered Notes and Pari Passu Indebtedness. Holders of Notes that
are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to
any related purchase date and may elect to have such Notes purchased by completing the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Notes.

     8. Notice of Redemption. Notice of redemption will be mailed at least 30 days but not
more than 60 days (except as otherwise provided in the Indenture if the notice is issued in

7

 

connection with a Legal Defeasance, Covenant Defeasance or Discharge) before the redemption
date to each Holder whose Notes are to be redeemed at its registered address. If mailed in the
manner provided for in Section 3.03 of the Indenture, the notice of optional redemption shall be
conclusively presumed to have been given whether or not a Holder receives such notice. Failure to
give timely notice or any defect in the notice shall not affect the validity of the redemption.
Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption
date interest and Additional Interest, if any, cease to accrue on Notes or portions thereof called
for redemption.

     9. Guarantees. The payment by the Issuers of the principal of and premium, interest
and Additional Interest, if any, on the Notes is fully and unconditionally guaranteed on a joint
and several senior unsecured basis by each of the Guarantors to the extent set forth in the
Indenture.

     10. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents, and the Company may require a Holder to pay any taxes due on transfer or exchange. The
Issuers need not exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, they need
not exchange or register the transfer of any Notes for a period of 15 days before a selection of
Notes to be redeemed.

     11. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

     12. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or
the Notes may be amended or supplemented with the consent of the Holders of at least a majority in
principal amount of the then outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority
in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note,
the Indenture or the Notes may be amended or supplemented (1) to cure any ambiguity, defect or
inconsistency, (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes, (3) to provide for the assumption of an Issuer’s obligations to Holders of the Notes
pursuant to Article 5 of the Indenture, (4) to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights
under the Indenture of any such Holder, provided that any change to conform the Indenture to the
Offering Memorandum shall not be deemed to adversely affect the legal rights under the Indenture of
any Holder, (5) to secure the Notes or the Subsidiary Guarantees pursuant to Section 4.12 of the
Indenture or otherwise, (6) to provide for the issuance of Additional Notes in accordance with the
limitations set forth in the Indenture, (7) to add any additional Guarantor with respect to the
Notes or to evidence the release of any Guarantor from its Subsidiary Guarantee, in each case as
provided in the Indenture, (8) to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the Trust Indenture

8

 

Act or (9) to evidence or provide for the acceptance of appointment under the Indenture of a
successor Trustee.

     13. Defaults and Remedies. Events of Default include: (i) default for 30 days in the
payment when due of interest or Additional Interest, if any, on the Notes; (ii) default in payment
when due of the principal of or premium, if any, on the Notes when due at Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the
Company to comply with Section 3.09, 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the
Company for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by the
Company for 60 days after notice to comply with any of its other agreements in the Indenture or the
Notes; (vi) default under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or
any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists or is created after
the Initial Issuance Date, if such default (a) is caused by a failure to pay principal of, or
premium or interest, if any, on such Indebtedness prior to the expiration of any grace period
provided in such Indebtedness (a “Payment Default”) or (b) results in the acceleration of such
Indebtedness prior to its Stated Maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness under which there
has been a Payment Default or the maturity of which has been so accelerated, aggregates in excess
of $20.0 million provided that if any such default is cured or waived or any such acceleration
rescinded, or such Indebtedness is repaid, within a period of 60 days from the continuation of such
default beyond the applicable grace period or the occurrence of such acceleration, as the case may
be, such Event of Default and any consequential acceleration of the Notes shall be automatically
rescinded, so long as such rescission does not conflict with any judgment or decree; (vii) failure
by the Company or any of its Subsidiaries to pay final judgments aggregating in excess of $20.0
million, which judgments are not paid, discharged or stayed for a period of 60 days; (viii) except
as permitted by the Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor,
or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its
Subsidiary Guarantee; and (ix) certain events of bankruptcy, insolvency or reorganization with
respect to the Company, Finance Corp., any of the Company’s Restricted Subsidiaries that is a
Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that,
taken together, would constitute a Significant Subsidiary of the Company as specified in Section
6.01(i) or 6.01(j) of the Indenture. If any Event of Default occurs and is continuing, the
Trustee, by notice to the Issuers, or the Holders of at least 25% in principal amount of the then
outstanding Notes, by notice to the Issuers and the Trustee, may declare all the Notes to be due
and payable immediately. Notwithstanding the preceding, in the case of an Event of Default arising
from such events of bankruptcy, insolvency or reorganization described in Section 6.01(i) or
6.01(j) of the Indenture, all outstanding Notes will become due and payable without further action
or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the then outstanding
Notes may direct the Trustee in its exercise of any trust or power conferred on it. The Trustee
may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except
a Default or Event of Default relating to the payment of principal, interest, premium or Additional
Interest) if it determines that withholding notice is in their interest. The Holders of a

9

 

majority in principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of Default in the payment of
the principal of or premium, interest or Additional Interest, if any, on the Notes. The Issuers
are required to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and, so long as any Notes are outstanding, the Issuers are required upon becoming aware
of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

     14. Defeasance and Discharge. The Notes are subject to defeasance and discharge upon
the terms and conditions specified in the Indenture.

     15. No Recourse Against Others. No past, present or future director, officer,
partner, employee, incorporator, manager or unitholder or other owner of Capital Stock of the
Issuers or any Guarantor, as such, shall have any liability for any obligations of the Issuers or
any Guarantor under the Notes, the Subsidiary Guarantees or the Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of the consideration
for the issuance of the Notes.

     16. Authentication. This Note shall not be valid until authenticated by the manual
signature of an authorized signatory of the Trustee or an authenticating agent.

     17. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     18. Additional Rights of Holders of Transfer Restricted Securities. In addition to
the rights provided to Holders of Notes under the Indenture, Holders of Transfer Restricted
Securities shall have all the rights set forth in the Registration Rights Agreement dated as of
February 7, 2006, among the Issuers, the Guarantors and the Initial Purchasers (the “Registration
Rights Agreement”).

     19. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers and corresponding
ISIN numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance
may be placed only on the other identification numbers placed thereon.

     20. Governing Law. THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     21. Successors. In the event a successor assumes all the obligations of an Issuer
under the Notes and the Indenture, pursuant to the terms thereof, such Issuer will be released from
all such obligations.

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     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture or the Registration Rights Agreement. Requests may be made to:

Copano Energy, L.L.C.

2727 Allen Parkway, Suite 1200

Houston, Texas 77019

Attention: Chief Financial Officer

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ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     I or we assign and transfer this Note to

 

Print or type assignee’s name, address and zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint                                          agent to transfer this Note on the books of the Issuers.
The agent may substitute another to act for him.

 

			
	Date:                                         
	 	Your Signature:                                                             
                                        
	 
	 	Sign exactly as your name appears on the other side of this Note.

Signature Guarantee:

                                                            

(Signature must be guaranteed)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

In connection with any transfer of any of the Notes evidenced by this certificate occurring prior
to the expiration of the period referred to in Rule 144(k) under the Securities Act after the later
of the date of original issuance of such Notes and the last date, if any, on which such Notes were
owned by the Company or any Affiliate of the Company (or, in the case of Regulation S Notes, prior
to the expiration of the Distribution Compliance Period), the undersigned confirms that such Notes
are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

	 	 	 	 	 
	(1)

	 	o
	 	to an Issuer; or
	 
	 	 	 	 
	(2)

	 	o
	 	pursuant to an effective registration statement under the Securities Act of
1933; or
	 
	 	 	 	 
	(3)

	 	o
	 	inside the United States to a person who the undersigned reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of
1933) that is purchasing for its own account or for the account of a qualified
institutional buyer to whom notice is given that such

12

 

	 	 	 	 	 
	 

	 	 	 	transfer is being made in reliance on Rule 144A, in each case pursuant to
and in compliance with Rule 144A under the Securities Act of 1933; or
	 
	 	 	 	 
	(4)

	 	o
	 	outside the United States in an offshore transaction within the meaning of
Regulation S under the Securities Act in compliance with Rule 904 under the Securities
Act of 1933; or
	 
	 	 	 	 
	(5)

	 	o
	 	pursuant to the exemption from registration provided by Rule 144 under the
Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced
by this certificate in the name of any person other than the registered holder thereof; provided,
however, that if box (4) or (5) is checked, the Trustee shall be entitled to require, prior to
registering any such transfer of the Notes, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act of 1933, such as the exemption provided by Rule 144 under such Act.

	 	 	 
	 	 	 
	 

	 	Signature

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TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

The undersigned represents and warrants that it is purchasing this Note for its own account or an
account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Issuers and any Guarantors as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Notice: To be executed by an executive officer

14

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or
4.15 of the Indenture, check the box below:

          o     Section 4.10                     o    Section 4.15

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount (in minimum denomination of $1,000
or integral multiples thereof) you elect to have purchased: $                    

			
	Date:                                         
	 	Your Signature:                                                             
                                                            
	 
	 	(Sign exactly as your name appears on the other side of this Note)

Soc. Sec. or Tax Identification No.:                     

	 	 	 	 	 
	Signature Guarantee:

	 	 	 	 
	 	 	 	 	 
	 

	 	(signature must be guaranteed)	 	 

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as
may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

15

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

The following increases or decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal	 	 
	 	 	Amount of	 	Amount of	 	Amount of this	 	Signature of
	 	 	decrease in	 	increase in	 	Global Note	 	authorized
	 	 	Principal	 	Principal	 	following such	 	officer
	 	 	Amount of this	 	Amount of this	 	decrease or	 	of Trustee or
	Date	 	Global Note	 	Global Note	 	increase	 	Notes Custodian
	 
	 	 	 	 	 	 	 	 

16exv4w3

 

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO AN ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

     THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH AN
ISSUER OR ANY AFFILIATE OF AN ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE)
(THE “RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO AN ISSUER OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES
TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER
THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUERS’ AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40 DAY DISTRIBUTION
COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE
(E) PRIOR TO THE

 

 

RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) IN EACH OF THE
FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

2

 

COPANO ENERGY, L.L.C.

COPANO ENERGY FINANCE CORPORATION

			
	No. 002
	 	$500,000

CUSIP No.           U2060N AA 7

ISIN No.           USU2060NAA73

8.125% Senior Note due 2016

     Copano Energy, L.L.C., a Delaware limited liability company, and Copano Energy Finance
Corporation, a Delaware corporation, jointly and severally promise to pay to CEDE & CO., or
registered assigns, the principal sum of Five Hundred Thousand Dollars on March 1, 2016 or such
greater or lesser amount as may be indicated on Schedule A hereto.

     Interest Payment Dates: March 1 and September 1.

     Record Dates: February 15 and August 15.

     Additional provisions of this Note are set forth on the other side of this Note.

	 	 	 	 	 
	 	Copano Energy, L.L.C.

 	 
	 	By:  	 	/s/ Matthew J. Assiff 	 
	 	Name:  	Matthew J. Assiff 	 
	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 
	 	Copano Energy Finance Corporation

 	 
	 	By:  	 	/s/ Matthew J. Assiff 	 
	 	Name:  	Matthew J. Assiff 	 
	 	Title:  	Senior Vice President and

Chief Financial Officer 	 

3

 

	 	 	 	 	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF	 	 
	AUTHENTICATION	 	 
	 
	 	 	 	 
	 

	 	U.S. Bank National Association,	 	 
	 

	 	as Trustee, certifies that	 	 
	 

	 	this is one of the Notes	 	 
	 

	 	referred to in the Indenture.	 	 
	 
	 	 	 	 
	By
	 	/s/ Kevin McIllwaine 	 	 
	 

	 	 

          Authorized Signatory
	 	 
	 
	 	 	 	 
	Dated: February 7, 2006	 	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

4

 

	 	 	 	 	 

8.125% Senior Note due 2016

     Capitalized terms used herein but not defined shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

     1. Interest. Copano Energy, L.L.C., a Delaware limited liability company (the
“Company”), and Copano Energy Finance Corporation, a Delaware corporation (the “Finance Corp.” and,
together with the Company, the “Issuers”), jointly and severally promise to pay interest on the
principal amount of this Note at 8.125% per annum from February 7, 2006 until maturity and shall
pay the Additional Interest payable pursuant to Section 5 of the Registration Rights Agreement
referred to below. The Issuers will pay interest and Additional Interest, if any, semi-annually in
arrears on March 1 and September 1 of each year, commencing September 1, 2006, or if any such day
is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”).
Interest on the Notes will accrue from the most recent date to which interest has been paid or, if
no interest has been paid, from the date of original issuance; provided that if there is no
existing Default or Event of Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date, except in the case of the
original issuance of Notes, in which case interest shall accrue from the date of authentication.
The Issuers shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate
that is the rate then in effect; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest
(without regard to any applicable grace periods) from time to time on demand at the same rate to
the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

     2. Method of Payment. The Issuers will pay interest on the Notes (except defaulted
interest) and Additional Interest to the Persons who are registered Holders of Notes at the close
of business on the February 15 or August 15 next preceding the Interest Payment Date, even if such
Notes are cancelled after such record date and on or before such Interest Payment Date, except as
provided in Section 2.11 of the Indenture with respect to defaulted interest. Holders must
surrender Notes to the Paying Agent to collect payments of principal and premium, if any, together
with accrued and unpaid interest and Additional Interest, if any, due at maturity. The Notes will
be payable as to principal, premium, if any, interest and Additional Interest, if any, at the
office or agency of the Issuers maintained for such purpose within the City and State of New York,
or, at the option of the Issuers, payment of interest and Additional Interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders, and provided that
payment by wire transfer of immediately available funds will be required with respect to any
amounts due on all Global Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Issuers or the Paying Agent. Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts.

     3. Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee
under the Indenture, will act as Paying Agent and Registrar. The Company may change

5

 

any Paying Agent or Registrar without notice to any Holder. The Company or any of its
Subsidiaries may act in any such capacity.

     4. Indenture. The Issuers issued the Notes under an Indenture dated as of February 7,
2006 (“Indenture”) among the Issuers, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a statement of such
terms. The Notes are unsecured senior obligations of the Issuers limited to $225,000,000 aggregate
principal amount in the case of Notes issued on the Initial Issuance Date (as defined in the
Indenture).

     5. Optional Redemption.

     (a) Except as set forth in subparagraphs (b) and (c) of this Paragraph 5, the Issuers shall
not have the option to redeem the Notes prior to March 1, 2011. On or after March 1, 2011, the
Issuers shall have the option to redeem the Notes, in whole or in part at any time, upon prior
notice as set forth in Paragraph 8, at the redemption prices (expressed as percentages of principal
amount) set forth below, plus accrued and unpaid interest and Additional Interest, if any, to the
applicable redemption date (subject to the right of Holders of record on the relevant record date
to receive interest due on an Interest Payment Date that is on or prior to the redemption date), if
redeemed during the twelve-month period beginning on March 1 of the years indicated below:

	 	 	 	 	 
	YEAR	 	PERCENTAGE
	2011
	 	 	104.0625	%
	2012
	 	 	102.7083	%
	2013
	 	 	101.3542	%
	2014 and thereafter
	 	 	100.0000	%

     (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to March 1, 2009, the Issuers may on any one or more occasions redeem up to 35% of the aggregate
principal amount of Notes (including any Additional Notes) issued under the Indenture at a
redemption price of 108.125% of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest, if any, thereon to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on an Interest Payment Date that is on
or prior to the redemption date), with the net cash proceeds of one or more Equity Offerings by the
Company; provided that (i) at least 65% of the aggregate principal amount of Notes (including any
Additional Notes) issued under the Indenture remains outstanding immediately after the occurrence
of each such redemption (excluding any Notes held by the Company and its Subsidiaries) and (ii)
each such redemption occurs within 120 days of the date of the closing of each such Equity
Offering.

     (c) Prior to March 1, 2011, the Issuers may redeem all or part of the notes upon not less than
30 nor more than 60 days’ notice, at a redemption price equal to the sum of (1) the principal
amount thereof, plus (2) accrued and unpaid interest, if any, to the redemption date (subject to
the right of Holders of record on the relevant record date to receive interest due on an

6

 

interest payment date that is on or prior to the redemption date), plus (3) the Make Whole
Premium at the redemption date.

     6. Mandatory Redemption.

     Except as set forth in Paragraph 7 below, neither of the Issuers shall be required to make
mandatory redemption or sinking fund payments with respect to the Notes or to repurchase the Notes
at the option of the Holders.

     7. Repurchase at Option of Holder.

     (a) Within 30 days following the occurrence of a Change of Control, the Company shall make an
offer (a “Change of Control Offer”) to repurchase all or any part (equal to $1,000 or an integral
multiple thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount of Notes repurchased, plus accrued and unpaid interest and Additional Interest, if
any, to the date of settlement (the “Change of Control Settlement Date”), subject to the right of
Holders of record on the relevant record date to receive interest due on an Interest Payment Date
that is on or prior to the Change of Control Settlement Date. Within 30 days following a Change of
Control, the Company shall mail a notice of the Change of Control Offer to each Holder and the
Trustee describing the transaction that constitutes the Change of Control and setting forth the
procedures governing the Change of Control Offer as required by Section 4.15 of the Indenture.

     (b) On the 361st day after an Asset Sale, if the aggregate amount of Excess Proceeds then
exceeds $20.0 million, the Company shall commence an offer to all Holders of Notes (an “Asset Sale
Offer”) pursuant to Section 3.09 of the Indenture, and to all holders of any Pari Passu
Indebtedness then outstanding, to purchase the maximum principal amount of Notes and such Pari
Passu Indebtedness that may be purchased out of the Excess Proceeds, at an offer price in cash in
an amount equal to 100% of the principal amount of the Notes plus accrued and unpaid interest and
Additional Interest, if any, thereon to the date of settlement, subject to the right of Holders of
record on the relevant record date to receive interest due on an Interest Payment Date that is on
or prior to the Change of Control Settlement Date, in accordance with the procedures set forth in
the Indenture. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the
Company may use such remaining Excess Proceeds for any purpose not otherwise prohibited by the
Indenture. If the aggregate principal amount of Notes surrendered by Holders thereof and Pari
Passu Indebtedness surrendered by holders or lenders, collectively, exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and Pari Passu Indebtedness to be purchased on a pro
rata basis (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in
denominations of $1,000, or integral multiples thereof, shall be purchased) on the basis of the
aggregate principal amount of tendered Notes and Pari Passu Indebtedness. Holders of Notes that
are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to
any related purchase date and may elect to have such Notes purchased by completing the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Notes.

     8. Notice of Redemption. Notice of redemption will be mailed at least 30 days but not
more than 60 days (except as otherwise provided in the Indenture if the notice is issued in

7

 

connection with a Legal Defeasance, Covenant Defeasance or Discharge) before the redemption
date to each Holder whose Notes are to be redeemed at its registered address. If mailed in the
manner provided for in Section 3.03 of the Indenture, the notice of optional redemption shall be
conclusively presumed to have been given whether or not a Holder receives such notice. Failure to
give timely notice or any defect in the notice shall not affect the validity of the redemption.
Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption
date interest and Additional Interest, if any, cease to accrue on Notes or portions thereof called
for redemption.

     9. Guarantees. The payment by the Issuers of the principal of and premium, interest
and Additional Interest, if any, on the Notes is fully and unconditionally guaranteed on a joint
and several senior unsecured basis by each of the Guarantors to the extent set forth in the
Indenture.

     10. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents, and the Company may require a Holder to pay any taxes due on transfer or exchange. The
Issuers need not exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in part. Also, they need
not exchange or register the transfer of any Notes for a period of 15 days before a selection of
Notes to be redeemed.

     11. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

     12. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or
the Notes may be amended or supplemented with the consent of the Holders of at least a majority in
principal amount of the then outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority
in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note,
the Indenture or the Notes may be amended or supplemented (1) to cure any ambiguity, defect or
inconsistency, (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes, (3) to provide for the assumption of an Issuer’s obligations to Holders of the Notes
pursuant to Article 5 of the Indenture, (4) to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights
under the Indenture of any such Holder, provided that any change to conform the Indenture to the
Offering Memorandum shall not be deemed to adversely affect the legal rights under the Indenture of
any Holder, (5) to secure the Notes or the Subsidiary Guarantees pursuant to Section 4.12 of the
Indenture or otherwise, (6) to provide for the issuance of Additional Notes in accordance with the
limitations set forth in the Indenture, (7) to add any additional Guarantor with respect to the
Notes or to evidence the release of any Guarantor from its Subsidiary Guarantee, in each case as
provided in the Indenture, (8) to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the Trust Indenture

8

 

Act or (9) to evidence or provide for the acceptance of appointment under the Indenture of a
successor Trustee.

     13. Defaults and Remedies. Events of Default include: (i) default for 30 days in the
payment when due of interest or Additional Interest, if any, on the Notes; (ii) default in payment
when due of the principal of or premium, if any, on the Notes when due at Stated Maturity, upon
optional redemption, upon required repurchase, upon declaration or otherwise; (iii) failure by the
Company to comply with Section 3.09, 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the
Company for 90 days after notice to comply with Section 4.03 of the Indenture; (v) failure by the
Company for 60 days after notice to comply with any of its other agreements in the Indenture or the
Notes; (vi) default under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or
any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists or is created after
the Initial Issuance Date, if such default (a) is caused by a failure to pay principal of, or
premium or interest, if any, on such Indebtedness prior to the expiration of any grace period
provided in such Indebtedness (a “Payment Default”) or (b) results in the acceleration of such
Indebtedness prior to its Stated Maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness under which there
has been a Payment Default or the maturity of which has been so accelerated, aggregates in excess
of $20.0 million provided that if any such default is cured or waived or any such acceleration
rescinded, or such Indebtedness is repaid, within a period of 60 days from the continuation of such
default beyond the applicable grace period or the occurrence of such acceleration, as the case may
be, such Event of Default and any consequential acceleration of the Notes shall be automatically
rescinded, so long as such rescission does not conflict with any judgment or decree; (vii) failure
by the Company or any of its Subsidiaries to pay final judgments aggregating in excess of $20.0
million, which judgments are not paid, discharged or stayed for a period of 60 days; (viii) except
as permitted by the Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be
unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor,
or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its
Subsidiary Guarantee; and (ix) certain events of bankruptcy, insolvency or reorganization with
respect to the Company, Finance Corp., any of the Company’s Restricted Subsidiaries that is a
Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that,
taken together, would constitute a Significant Subsidiary of the Company as specified in Section
6.01(i) or 6.01(j) of the Indenture. If any Event of Default occurs and is continuing, the
Trustee, by notice to the Issuers, or the Holders of at least 25% in principal amount of the then
outstanding Notes, by notice to the Issuers and the Trustee, may declare all the Notes to be due
and payable immediately. Notwithstanding the preceding, in the case of an Event of Default arising
from such events of bankruptcy, insolvency or reorganization described in Section 6.01(i) or
6.01(j) of the Indenture, all outstanding Notes will become due and payable without further action
or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the then outstanding
Notes may direct the Trustee in its exercise of any trust or power conferred on it. The Trustee
may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except
a Default or Event of Default relating to the payment of principal, interest, premium or Additional
Interest) if it determines that withholding notice is in their interest. The Holders of a

9

 

majority in principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of Default in the payment of
the principal of or premium, interest or Additional Interest, if any, on the Notes. The Issuers
are required to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and, so long as any Notes are outstanding, the Issuers are required upon becoming aware
of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

     14. Defeasance and Discharge. The Notes are subject to defeasance and discharge upon
the terms and conditions specified in the Indenture.

     15. No Recourse Against Others. No past, present or future director, officer,
partner, employee, incorporator, manager or unitholder or other owner of Capital Stock of the
Issuers or any Guarantor, as such, shall have any liability for any obligations of the Issuers or
any Guarantor under the Notes, the Subsidiary Guarantees or the Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a
Note waives and releases all such liability. The waiver and release are part of the consideration
for the issuance of the Notes.

     16. Authentication. This Note shall not be valid until authenticated by the manual
signature of an authorized signatory of the Trustee or an authenticating agent.

     17. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

     18. Additional Rights of Holders of Transfer Restricted Securities. In addition to
the rights provided to Holders of Notes under the Indenture, Holders of Transfer Restricted
Securities shall have all the rights set forth in the Registration Rights Agreement dated as of
February 7, 2006, among the Issuers, the Guarantors and the Initial Purchasers (the “Registration
Rights Agreement”).

     19. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers and corresponding
ISIN numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance
may be placed only on the other identification numbers placed thereon.

     20. Governing Law. THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     21. Successors. In the event a successor assumes all the obligations of an Issuer
under the Notes and the Indenture, pursuant to the terms thereof, such Issuer will be released from
all such obligations.

10

 

     The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture or the Registration Rights Agreement. Requests may be made to:

Copano Energy, L.L.C.

2727 Allen Parkway, Suite 1200

Houston, Texas 77019

Attention: Chief Financial Officer

11

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     I or we assign and transfer this Note to

 

Print or type assignee’s name, address and zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint                                          agent to transfer this Note on the books of the Issuers.
The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	          Sign exactly as your name appears on the other side of this Note.

Signature Guarantee:

                                                                                                    

(Signature must be guaranteed)

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the Security Transfer
Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined
by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

 

In connection with any transfer of any of the Notes evidenced by this certificate occurring prior
to the expiration of the period referred to in Rule 144(k) under the Securities Act after the later
of the date of original issuance of such Notes and the last date, if any, on which such Notes were
owned by the Company or any Affiliate of the Company (or, in the case of Regulation S Notes, prior
to the expiration of the Distribution Compliance Period), the undersigned confirms that such Notes
are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	o
	 	to an Issuer; or
	 	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	o
	 	pursuant to an effective registration statement under the Securities Act of
1933; or
	 	 	 	 	 	 	 	 	 
	 

	 	 	(3	)	 	o
	 	inside the United States to a person who the undersigned reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of
1933) that is purchasing for its own account or for the account of a qualified
institutional buyer to whom notice is given that such

12

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	transfer is being made in reliance on Rule 144A, in each case pursuant to
and in compliance with Rule 144A under the Securities Act of 1933; or
	 	 	 	 	 	 	 	 	 
	 

	 	 	(4	)	 	o
	 	outside the United States in an offshore transaction within the meaning of
Regulation S under the Securities Act in compliance with Rule 904 under the Securities
Act of 1933; or
	 	 	 	 	 	 	 	 	 
	 

	 	 	(5	)	 	o
	 	pursuant to the exemption from registration provided by Rule 144 under the
Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the Notes evidenced
by this certificate in the name of any person other than the registered holder thereof; provided,
however, that if box (4) or (5) is checked, the Trustee shall be entitled to require, prior to
registering any such transfer of the Notes, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration requirements of
the Securities Act of 1933, such as the exemption provided by Rule 144 under such Act.

	 	 	 
	 

	 	 
	 

	 	Signature

13

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

The undersigned represents and warrants that it is purchasing this Note for its own account or an
account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Issuers and any Guarantors as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Notice: To be executed by an executive officer

14

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or
4.15 of the Indenture, check the box below:

	 	 	 	 	 
	 

	 	o Section 4.10
	 	o Section 4.15

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, state the amount (in minimum denomination of $1,000
or integral multiples thereof) you elect to have purchased: $___

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of this Note)
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Soc. Sec. or Tax Identification No.:                     

	 	 	 	 	 
	Signature Guarantee:
	 	 	 	 
	 

	 	 

(signature must be guaranteed)
	 	 

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as
may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

15

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

The following increases or decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Principal	 	 
	 

	 	Amount of
	 	Amount of
	 	Amount of this
	 	Signature of
	 

	 	decrease in
	 	increase in
	 	Global Note
	 	authorized
	 

	 	Principal
	 	Principal
	 	following such
	 	officer
	 

	 	Amount of this
	 	Amount of this
	 	decrease or
	 	of Trustee or
	Date

	 	Global Note
	 	Global Note
	 	increase
	 	Notes Custodian
	 

	 	 
	 	 
	 	 
	 	 

16

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