Document:

EXHIBIT 4.2

                         INTERNATIONAL DEVELOPMENT CORP.
           NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN
                                FOR THE YEAR 2004

     1.     Introduction.  This  Plan  shall  be  known  as  the  "International
            ------------
Development Corp. Non-Employee Directors and Consultants Retainer Stock Plan for
the  Year  2004," and is hereinafter referred to as the "Plan."  The purposes of
this  Plan  are  to enable International Development Corp., a Nevada corporation
(the "Company"), to promote the interests of the Company and its stockholders by
attracting  and  retaining  non-employee  Directors  and  Consultants capable of
furthering  the  future  success  of  the Company and by aligning their economic
interests more closely with those of the Company's stockholders, by paying their
retainer  or fees in the form of shares of the Company's common stock, par value
$0.001  per  share  (the  "Common  Stock").

     2.     Definitions.  The  following terms shall have the meanings set forth
            -----------
below:

     "Board" means the Board of Directors of the Company.

     "Change of Control" has the meaning set forth in Paragraph 12(d) hereof.

     "Code"  means  the Internal Revenue Code of 1986, as amended, and the rules
and  regulations  thereunder. References to any provision of the Code or rule or
regulation  thereunder  shall  be  deemed  to  include  any amended or successor
provision,  rule  or  regulation.

     "Committee"  means  the committee that administers this Plan, as more fully
defined  in  Paragraph  13  hereof.

     "Common Stock" has the meaning set forth in Paragraph 1 hereof.

     "Company" has the meaning set forth in Paragraph 1 hereof.

     "Consultants"  means  Company's  consultants and advisors only if: (i) they
are  natural  persons;  (ii) they provide bona fide services to the Company; and
(iii) the services are not in connection with the offer or sale of securities in
a  capital-raising  transaction,  and  do  not directly or indirectly promote or
maintain  a  market  for  the  Company's  securities.

     "Deferral Election" has the meaning set forth in Paragraph 6 hereof.

     "Deferred  Stock  Account"  means  a  bookkeeping account maintained by the
Company  for a Participant representing the Participant's interest in the shares
credited  to  such  Deferred  Stock  Account  pursuant  to  Paragraph  7 hereof.

     "Delivery Date" has the meaning set forth in Paragraph 6 hereof.

     "Director" means an individual who is a member of the Board of Directors of
the  Company.

     "Dividend  Equivalent"  for  a given dividend or other distribution means a
number  of  shares  of  the  Common  Stock having a Fair Market Value, as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the  Fair  Market  Value  on  the  date of distribution of any property, that is
distributed  with  respect  to  one  share  of the Common Stock pursuant to such
dividend  or  distribution;  such  Fair  Market  Value  to  be determined by the
Committee  in  good  faith.

     "Effective Date" has the meaning set forth in Paragraph 3 hereof.

     "Exchange Act" has the meaning set forth in Paragraph 12(d) hereof.

                                        1
<PAGE>
     "Fair  Market Value" means the mean between the highest and lowest reported
sales  prices  of the Common Stock on the New York Stock Exchange Composite Tape
or, if not listed on such exchange, on any other national securities exchange on
which  the  Common  Stock is listed or on The Nasdaq Stock Market, or, if not so
listed  on  any  other  national securities exchange or The Nasdaq Stock Market,
then  the  average  of  the  bid  price of the Common Stock during the last five
trading  days  on  the OTC Bulletin Board immediately preceding the last trading
day  prior  to  the  date  with  respect to which the Fair Market Value is to be
determined.  If  the  Common  Stock  is  not then publicly traded, then the Fair
Market  Value  of  the  Common  Stock shall be the book value of the Company per
share  as  determined  on the last day of March, June, September, or December in
any  year  closest  to  the  date when the determination is to be made.  For the
purpose  of  determining book value hereunder, book value shall be determined by
adding  as  of  the  applicable date called for herein the capital, surplus, and
undivided  profits  of  the  Company,  and  after  having  deducted any reserves
theretofore  established;  the sum of these items shall be divided by the number
of shares of the Common Stock outstanding as of said date, and the quotient thus
obtained shall represent the book value of each share of the Common Stock of the
Company.

     "Participant" has the meaning set forth in Paragraph 4 hereof.

     "Payment  Time"  means  the  time  when  a  Stock  Retainer is payable to a
Participant  pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral  Election).

     "Stock Retainer" has the meaning set forth in Paragraph 5 hereof.

     "Third Anniversary" has the meaning set forth in Paragraph 6 hereof.

     3.     Effective  Date  of  the  Plan.  This  Plan was adopted by the Board
            ------------------------------
effective  December  13,  2004  (the  "Effective  Date").

     4.     Eligibility.  Each individual who is a Director or Consultant on the
            -----------
Effective  Date  and  each  individual  who  becomes  a  Director  or Consultant
thereafter  during  the  term  of  this  Plan,  shall  be  a  participant  (the
"Participant")  in this Plan, in each case during such period as such individual
remains a Director or Consultant and is not an employee of the Company or any of
its  subsidiaries.  Each  credit  of shares of the Common Stock pursuant to this
Plan shall be evidenced by a written agreement duly executed and delivered by or
on  behalf of the Company and a Participant, if such an agreement is required by
the  Company  to  assure  compliance  with  all applicable laws and regulations.

     5.     Grants  of  Shares.  Commencing on the Effective Date, the amount of
            ------------------
compensation  for service to directors or consultants shall be payable in shares
of  the  Common  Stock (the "Stock Retainer") pursuant to this Plan.  The deemed
issuance  price  of  shares  of  the Common Stock subject to each Stock Retainer
shall  not  be less than 85 percent of the Fair Market Value of the Common Stock
on  the  date  of  the  grant.  In  the  case  of any person who owns securities
possessing  more than ten percent of the combined voting power of all classes of
securities  of the issuer or its parent or subsidiaries possessing voting power,
the  deemed  issuance  price of shares of the Common Stock subject to each Stock
Retainer  shall  be  at least 100 percent of the Fair Market Value of the Common
Stock  on  the  date  of  the  grant.

     6.     Deferral  Option.  From  and after the Effective Date, a Participant
            ----------------
may  make  an  election  (a  "Deferral  Election")  on  an annual basis to defer
delivery  of  the  Stock Retainer specifying which one of the following ways the
Stock Retainer is to be delivered (a) on the date which is three years after the
Effective  Date  for  which it was originally payable (the "Third Anniversary"),
(b) on the date upon which the Participant ceases to be a Director or Consultant
for  any  reason (the "Departure Date") or (c) in five equal annual installments
commencing  on  the Departure Date (the "Third Anniversary" and "Departure Date"
each  being  referred  to  herein as a "Delivery Date").  Such Deferral Election
shall  remain  in effect for each Subsequent Year unless changed, provided that,
any  Deferral Election with respect to a particular Year may not be changed less
than six months prior to the beginning of such Year, and provided, further, that
no  more  than  one Deferral Election or change thereof may be made in any Year.

                                        2
<PAGE>
     Any Deferral Election and any change or revocation thereof shall be made by
delivering  written  notice  thereof  to  the Committee no later than six months
prior to the beginning of the Year in which it is to be effected; provided that,
with  respect to the Year beginning on the Effective Date, any Deferral Election
or  revocation  thereof must be delivered no later than the close of business on
the  30th  day  after  the  Effective  Date.

     7.     Deferred  Stock  Accounts.  The  Company  shall  maintain a Deferred
            -------------------------
Stock  Account for each Participant who makes a Deferral Election to which shall
be  credited,  as  of  the  applicable Payment Time, the number of shares of the
Common  Stock  payable  pursuant  to  the  Stock  Retainer to which the Deferral
Election  relates.  So  long  as any amounts in such Deferred Stock Account have
not  been  delivered  to the Participant under Paragraph 8 hereof, each Deferred
Stock  Account shall be credited as of the payment date for any dividend paid or
other  distribution  made  with  respect  to  the Common Stock, with a number of
shares of the Common Stock equal to (a) the number of shares of the Common Stock
shown  in  such  Deferred  Stock Account on the record date for such dividend or
distribution  multiplied  by  (b)  the  Dividend Equivalent for such dividend or
distribution.

     8.     Delivery  of  Shares.
            --------------------

     (a)     The  shares  of  the Common Stock in a Participant's Deferred Stock
Account  with  respect  to  any Stock Retainer for which a Deferral Election has
been  made (together with dividends attributable to such shares credited to such
Deferred  Stock  Account) shall be delivered in accordance with this Paragraph 8
as  soon as practicable after the applicable Delivery Date.  Except with respect
to  a  Deferral  Election  pursuant  to  Paragraph  6 hereof, or other agreement
between  the parties, such shares shall be delivered at one time; provided that,
if  the  number  of shares so delivered includes a fractional share, such number
shall  be rounded to the nearest whole number of shares.  If the Participant has
in  effect  a Deferral Election pursuant to Paragraph 6 hereof, then such shares
shall  be  delivered  in five equal annual installments (together with dividends
attributable  to  such shares credited to such Deferred Stock Account), with the
first  such installment being delivered on the first anniversary of the Delivery
Date;  provided  that,  if  in  order  to equalize such installments, fractional
shares  would  have  to  be  delivered,  such  installments shall be adjusted by
rounding  to  the  nearest  whole share.  If any such shares are to be delivered
after  the  Participant  has  died  or become legally incompetent, they shall be
delivered  to the Participant's estate or legal guardian, as the case may be, in
accordance  with  the  foregoing;  provided that, if the Participant dies with a
Deferral  Election pursuant to Paragraph 6 hereof in effect, the Committee shall
deliver  all  remaining  undelivered  shares  to  the  Participant's  estate
immediately.  References  to a Participant in this Plan shall be deemed to refer
to the Participant's estate or legal guardian, where appropriate.

     (b)     The  Company  may,  but  shall not be required to, create a grantor
trust  or  utilize an existing grantor trust (in either case, "Trust") to assist
it  in  accumulating  the  shares  of  the  Common  Stock  needed to fulfill its
obligations  under  this  Paragraph  8.  However,  Participants  shall  have  no
beneficial  or  other  interest  in  the Trust and the assets thereof, and their
rights  under this Plan shall be as general creditors of the Company, unaffected
by  the  existence or nonexistence of the Trust, except that deliveries of Stock
Retainers  to  Participants  from  the  Trust  shall,  to the extent thereof, be
treated as satisfying the Company's obligations under this Paragraph 8.

     9.     Share  Certificates;  Voting and Other Rights.  The certificates for
            ---------------------------------------------
shares  delivered to a Participant pursuant to Paragraph 8 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the  shares,  and  the  Participant  shall  receive  all  dividends  and  other
distributions  paid  or  made  with  respect  thereto.

     10.  General  Restrictions.
          ---------------------

          (a)     Notwithstanding any other provision of this Plan or agreements
made pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of the Common Stock under this Plan prior
to  fulfillment  of  all  of  the  following  conditions:

               (i)     Listing  or  approval for listing upon official notice of
issuance  of  such  shares  on  the New York Stock Exchange, Inc., or such other
securities exchange as may at the time be a market for the Common Stock;

                                        3
<PAGE>
               (ii)     Any  registration  or other qualification of such shares
under  any  state  or federal law or regulation, or the maintaining in effect of
any such registration or other qualification which the Committee shall, upon the
advice  of  counsel,  deem  necessary  or  advisable;  and

               (iii)     Obtaining  any  other consent, approval, or permit from
any  state  or  federal  governmental  agency  which  the Committee shall, after
receiving the advice of counsel, determine to be necessary or advisable.

          (b)     Nothing  contained in this Plan shall prevent the Company from
adopting other or additional compensation arrangements for the Participants.

     11.     Shares  Available.  Subject  to  Paragraph  12  below,  the maximum
             -----------------
number of shares of the Common Stock which may in the aggregate be paid as Stock
Retainers  pursuant  to  this  Plan  is  50,000,000.  Shares of the Common Stock
issuable  under  this  Plan  may be taken from treasury shares of the Company or
purchased  on the open market.  In the event that any outstanding Stock Retainer
under  this  Plan  for any reason expires or is terminated, the shares of Common
Stock  allocable  to  the  unexercised  portion  of  the Stock Retainer shall be
available  for issuance under the International Development Corp. Employee Stock
Incentive  Plan  for  the  Year  2004.  The  Compensation  Committee may, in its
discretion,  increase  the  number  of  shares available for issuance under this
Plan,  while  correspondingly  decreasing  the  number  of  shares available for
issuance  under  International Development Corp.'s Employee Stock Incentive Plan
for  the  Year  2004.

     12.  Adjustments;  Change  of  Control.
          ---------------------------------

          (a)     In the event that there is, at any time after the Board adopts
this  Plan,  any  change  in  corporate  capitalization,  such as a stock split,
combination  of  shares,  exchange  of  shares,  warrants  or rights offering to
purchase  the  Common  Stock  at  a  price  below  its  Fair  Market  Value,
reclassification,  or  recapitalization, or a corporate transaction, such as any
merger,  consolidation,  separation,  including  a  spin-off, stock dividend, or
other  extraordinary  distribution  of  stock  or  property  of the Company, any
reorganization  (whether  or not such reorganization comes within the definition
of  such term in Section 368 of the Code) or any partial or complete liquidation
of  the Company (each of the foregoing a "Transaction"), in each case other than
any  such  Transaction which constitutes a Change of Control (as defined below),
(i)  the  Deferred Stock Accounts shall not be credited with the amount and kind
of  shares  or  other property which would have been received by a holder of the
number  of  shares  of  the Common Stock held in such Deferred Stock Account had
such  shares of the Common Stock been outstanding as of the effectiveness of any
such  Transaction,  (ii) the number and kind of shares or other property subject
to  this  Plan  shall  also  not  be  appropriately  adjusted  to  reflect  the
effectiveness  of  any such Transaction, and (iii) the Committee will not adjust
any other relevant provisions of this Plan to reflect any such transaction.

          (b)     If  the  shares  of  the Common Stock credited to the Deferred
Stock  Accounts  are  converted pursuant to Paragraph 12(a) into another form of
property,  references  in  this  Plan to the Common Stock shall be deemed, where
appropriate,  to  refer  to  such  other  form  of  property,  with  such  other
modifications as may be required for this Plan to operate in accordance with its
purposes.  Without  limiting  the  generality  of  the  foregoing, references to
delivery of certificates for shares of the Common Stock shall be deemed to refer
to delivery of cash and the incidents of ownership of any other property held in
the  Deferred  Stock  Accounts.

          (c)     In  lieu of the adjustment contemplated by Paragraph 12(a), in
the  event  of a Change of Control, the following shall occur on the date of the
Change  of Control (i) the shares of the Common Stock held in each Participant's
Deferred  Stock  Account  shall be deemed to be issued and outstanding as of the
Change  of Control; (ii) the Company shall forthwith deliver to each Participant
who  has  a  Deferred Stock Account all of the shares of the Common Stock or any
other property held in such Participant's Deferred Stock Account; and (iii) this
Plan  shall  be  terminated.

          (d)     For purposes of this Plan, Change of Control shall mean any of
the  following  events:

               (i)     The  acquisition  by  any  individual,  entity  or  group
(within  the  meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act  of  1934,  as  amended  (the  "Exchange  Act"))  (a

                                        4
<PAGE>
"Person")  of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 40 percent or more of either (1) the then outstanding
shares  of  the  Common  Stock  of  the Company (the "Outstanding Company Common
Stock"),  or (2) the combined voting power of then outstanding voting securities
of  the  Company  entitled  to  vote generally in the election of directors (the
"Outstanding  Company Voting Securities"); provided, however, that the following
acquisitions  shall  not  constitute  a  Change  of  Control (A) any acquisition
directly from the Company (excluding an acquisition by virtue of the exercise of
a  conversion  privilege  unless  the  security  being  so  converted was itself
acquired directly from the Company), (B) any acquisition by the Company, (C) any
acquisition  by  any  employee  benefit  plan  (or  related  trust) sponsored or
maintained  by  the  Company or any corporation controlled by the Company or (D)
any  acquisition  by  any  corporation  pursuant  to a reorganization, merger or
consolidation,  if,  following such reorganization, merger or consolidation, the
conditions  described  in  clauses  (A),  (B) and (C) of paragraph (iii) of this
Paragraph  12(d)  are  satisfied;  or

               (ii)     Individuals  who,  as of the date hereof, constitute the
Board  of  the  Company (as of the date hereof, "Incumbent Board") cease for any
reason  to  constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company's stockholders, was approved by a vote
of  at  least  a  majority  of the directors then comprising the Incumbent Board
shall  be  considered  as  though such individual were a member of the Incumbent
Board,  but  excluding,  for  this  purpose,  any  such individual whose initial
assumption  of  office  occurs  as  a  result  of either an actual or threatened
election  contest  (as  such  terms  are  used  in Rule 14a-11 of Regulation 14A
promulgated  under  the Exchange Act) or other actual or threatened solicitation
of  proxies  or  consents  by  or on behalf of a Person other than the Board; or

               (iii)     Approval  by  the  stockholders  of  the  Company  of a
reorganization,  merger,  binding  share  exchange  or  consolidation,  unless,
following  such  reorganization, merger, binding share exchange or consolidation
(A)  more  than  60  percent of, respectively, then outstanding shares of common
stock  of  the  corporation  resulting from such reorganization, merger, binding
share  exchange  or  consolidation  and  the  combined  voting  power  of  then
outstanding  voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of  the Outstanding Company Common Stock and Outstanding
Company  Voting  Securities  immediately  prior  to such reorganization, merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange  or  consolidation,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as  the  case  may  be, (B) no Person
(excluding  the  Company,  any  employee  benefit plan (or related trust) of the
Company  or such corporation resulting from such reorganization, merger, binding
share  exchange or consolidation and any Person beneficially owning, immediately
prior  to  such reorganization, merger, binding share exchange or consolidation,
directly  or  indirectly,  20  percent or more of the Outstanding Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns,  directly  or  indirectly,  20  percent  or  more  of,  respectively, then
outstanding  shares  of  common  stock  of  the  corporation resulting from such
reorganization,  merger, binding share exchange or consolidation or the combined
voting  power of then outstanding voting securities of such corporation entitled
to  vote  generally in the election of directors, and (C) at least a majority of
the  members  of  the  board of directors of the corporation resulting from such
reorganization,  merger, binding share exchange or consolidation were members of
the  Incumbent  Board  at  the  time  of  the execution of the initial agreement
providing  for  such  reorganization,  merger,  binding  share  exchange  or
consolidation;  or

               (iv)     Approval  by  the  stockholders  of the Company of (1) a
complete  liquidation  or  dissolution  of the Company, or (2) the sale or other
disposition of all or substantially all of the assets of the Company, other than
to  a  corporation,  with  respect  to  which  following  such  sale  or  other
disposition,  (A) more than 60 percent of, respectively, then outstanding shares
of  common  stock  of  such  corporation  and  the combined voting power of then
outstanding  voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of  the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially  the same proportion as their ownership, immediately prior to such
sale  or  other  disposition,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as  the  case  may  be, (B) no Person
(excluding  the  Company and any employee benefit plan (or related trust) of the
Company  or  such  corporation  and  any Person beneficially owning, immediately
prior  to  such sale or other disposition, directly or indirectly, 20 percent or
more  of  the  Outstanding  Company  Common  Stock

                                        5
<PAGE>
or Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly  or  indirectly,  20 percent or more of, respectively, then outstanding
shares of common stock of such corporation and the combined voting power of then
outstanding  voting securities of such corporation entitled to vote generally in
the  election  of  directors,  and (C) at least a majority of the members of the
board  of  directors  of such corporation were members of the Incumbent Board at
the  time  of  the  execution  of  the  initial agreement or action of the Board
providing for such sale or other disposition of assets of the Company.

     13.  Administration;  Amendment  and  Termination.
          --------------------------------------------

          (a)     This  Plan  shall be administered by a committee consisting of
two  members  who  shall  be  the  current  directors  of  the Company or senior
executive  officers  or  other  directors  who  are  not  Participants as may be
designated  by  the  Chief Executive Officer (the "Committee"), which shall have
full  authority  to  construe  and  interpret this Plan, to establish, amend and
rescind  rules  and  regulations  relating  to  this  Plan, and to take all such
actions  and make all such determinations in connection with this Plan as it may
deem  necessary  or  desirable.

          (b)     The  Board  may from time to time make such amendments to this
Plan,  including  to  preserve or come within any exemption from liability under
Section  16(b)  of  the  Exchange  Act,  as  it  may deem proper and in the best
interest  of the Company without further approval of the Company's stockholders,
provided  that,  to  the  extent  required  under  Nevada  law  or  to  qualify
transactions  under  this  Plan for exemption under Rule 16b-3 promulgated under
the  Exchange  Act,  no  amendment to this Plan shall be adopted without further
approval  of  the  Company's stockholders and, provided, further, that if and to
the  extent  required  for this Plan to comply with Rule 16b-3 promulgated under
the  Exchange Act, no amendment to this Plan shall be made more than once in any
six  month period that would change the amount, price or timing of the grants of
the  Common  Stock hereunder other than to comport with changes in the Code, the
Employee  Retirement Income Security Act of 1974, as amended, or the regulations
thereunder.  The  Board  may  terminate  this  Plan  at  any time by a vote of a
majority  of  the  members  thereof.

     14.     Restrictions  on  Transfer.  Each  Stock  Option granted under this
             --------------------------
Plan shall be transferable only by will or the laws of descent and distribution.
No  interest  of  any  Employee  under this Plan shall be subject to attachment,
execution, garnishment, sequestration, the laws of bankruptcy or any other legal
or  equitable  process.  Each  Stock  Option  granted  under  this Plan shall be
exercisable  during  an  Employee's  lifetime  only  by  the  Employee or by the
Employee's  legal  representative.

     15.     Term  of  Plan.  No  shares  of  the  Common Stock shall be issued,
             --------------
unless  and  until  the Directors of the Company have approved this Plan and all
other  legal  requirements  have  been  met.  This Plan was adopted by the Board
effective December 13, 2004, and shall expire on December 13, 2014.

     16.     Governing Law.  This Plan and all actions taken thereunder shall be
             -------------
governed  by, and construed in accordance with, the laws of the State of Nevada.

     17.     Information  to Stockholders.  The Company shall furnish to each of
             ----------------------------
its stockholders financial statements of the Company at least annually.

     18.     Miscellaneous.
             -------------

          (a)     Nothing  in this Plan shall be deemed to create any obligation
on  the  part  of  the  Board  to  nominate  any  Director for reelection by the
Company's  stockholders or to limit the rights of the stockholders to remove any
Director.

          (b)     The  Company  shall  have  the  right to require, prior to the
issuance  or  delivery  of any shares of the Common Stock pursuant to this Plan,
that  a  Participant  make  arrangements  satisfactory  to the Committee for the
withholding  of  any  taxes  required  by law to be withheld with respect to the
issuance  or  delivery  of  such  shares,  including, without limitation, by the
withholding  of  shares  that  would  otherwise  be  so  issued or delivered, by
withholding  from any other payment due to the Participant, or by a cash payment
to  the  Company  by  the  Participant.

                                        6
<PAGE>
          IN  WITNESS  WHEREOF,  this  Plan  has  been  executed effective as of
December  13,  2004.

                                 INTERNATIONAL DEVELOPMENT CORP.

                                 By  /s/ Max Weissengruber
                                   ---------------------------------------------
                                   Max Weissengruber, President

                                        7
<PAGE>QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.3  

Execution Copy  

 
 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT    
    

        THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of November 15, 2004 (herein
called this "Amendment"), by and among COPANO PIPELINES GROUP, L.L.C.
("CPG"), a Delaware limited liability company, COPANO FIELD SERVICES/COPANO BAY, L.P.
("CFS Copano Bay"), a Texas limited partnership acting by and through Copano Field Services, L.L.C., its General Partner, COPANO
FIELD SERVICES/AGUA DULCE, L.P. ("CFS Agua Dulce"), a Texas limited partnership acting by and through Copano Field Services,
L.L.C., its General Partner, COPANO FIELD SERVICES/SOUTH TEXAS, L.P. ("CFS South Texas"), a Texas
limited partnership acting by and through Copano Field Services, L.L.C., its General Partner, COPANO FIELD SERVICES/UPPER GULF COAST, L.P.
("CFS Upper Gulf Coast"), a Texas limited partnership, acting by and through Copano Field Services, L.L.C., its General Partner,  COPANO FIELD SERVICES/LIVE OAK,
L.P. ("CFS Live Oak"), a Texas limited partnership acting by and through
Copano Field Services, L.L.C., its General Partner, COPANO FIELD SERVICES/KARNES, L.P., ("CFS Karnes"),
a Texas limited partnership acting by and through Copano Field Services, L.L.C., its General Partner, COPANO FIELD SERVICES/CENTRAL GULF COAST, L.P.
("CFS Central Gulf Coast"), a Texas limited partnership acting by and through Copano Field Services/Central Gulf Coast (Texas), L.L.C., its General
Partner, COPANO PIPELINES/SOUTH TEXAS, L.P. ("CP South Texas"), a Texas limited partnership acting by
and through Copano Pipelines, L.L.C., its General Partner, COPANO PIPELINES/UPPER GULF COAST, L.P. ("CP Upper Gulf
Coast"), a Texas limited partnership acting by and through Copano Pipelines, L.L.C., its General Partner, COPANO PIPELINES/HEBBRONVILLE,
L.P. ("CP Hebbronville"), a Texas limited partnership acting by and through Copano Pipelines, L.L.C., its General Partner, and  COPANO ENERGY SERVICES/UPPER
GULF COAST, L.P. ("CES Upper Gulf Coast"), a Texas limited partnership
acting by and through Copano Energy Services, L.L.C., its General Partner (CPG, CFS Copano Bay, CFS Agua Dulce, CFS South Texas, CFS Upper Gulf Coast, CFS Live Oak, CFS Karnes, CFS Central Gulf Coast,
CP South Texas, CP Upper Gulf Coast, CP Hebbronville and CES Upper Gulf Coast, each individually a "Borrower" and collectively the
"Borrowers"), the various financial institutions as are or may become parties hereto (each individually a
"Lender" and collectively, the "Lenders"), FLEET NATIONAL
BANK, as administrative agent for the Lenders (in such capacity, together with any successors or assigns thereto, the "Administrative
Agent") and as letter of credit issuing bank (in such capacity, together with any successors or assigns thereto, the "Issuer"),  U.S. BANK NATIONAL
ASSOCIATION, as syndication agent for the Lenders (the "Syndication Agent"),
BANK OF SCOTLAND, as senior managing agent for the Lenders (the "Senior Managing Agent"), and  FLEET SECURITIES,
 INC., as the exclusive book runner and
lead arranger (the "Arranger"). Terms defined in the Credit Agreement (as defined below) are used herein with the meanings given them therein, unless
otherwise defined. 

W I T N E S S E T H: 

 

        WHEREAS,
the Borrowers, the Lenders, the Administrative Agent, the Syndication Agent, the Senior Managing Agent and certain other parties have heretofore entered into a certain Amended
and Restated Credit Agreement, dated as of February 13, 2004, as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of March 15, 2004 (as so
amended, herein the "Credit Agreement"); 

        WHEREAS,
the parties hereto desire to amend the Credit Agreement in certain respects (including the addition of CFS Karnes as a Borrower under the Credit Agreement), as hereinafter
provided; 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto hereby agree as follows: 

        SECTION
1.    Amendments to Credit Agreement.    The Credit Agreement is hereby amended as follows: 

        (a)   Section 1.1
of the Credit Agreement is hereby amended as follows: 

          (i)  The
following definitions are hereby deleted in their entirety: "MLP"; "MLP Facility"; and "MLP Term Sheet". 

         (ii)  The
following definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order: 

        "Available Cash" means, with respect to any Fiscal Quarter, (a) the sum of (i) all cash and cash equivalents of CPG on hand
at the end of such Fiscal Quarter and (ii) all additional cash and cash equivalents of CPG on
hand on the date of determination of Available Cash with respect to such Fiscal Quarter resulting from Working Capital Borrowings made subsequent to the end of such Fiscal Quarter less (b) the
amount of any cash reserves that is necessary or appropriate in the reasonable discretion of the CPG's management to (i) provide for the proper conduct of the business of CPG (including
reserves for future capital expenditures and for anticipated future credit needs of CPG), (ii) comply with applicable law or any other loan agreement, security agreement, mortgage, debt
instrument or other agreement or obligation to which CPG or any of CPG's Subsidiaries is a party, by which CPG or any of the CPG's Subsidiaries is bound, or to which the Property of CPG or any of
CPG's Subsidiaries is subject, or (iii) provide funds for distributions under Sections 6.4 or 6.5 of the Copano Holdings LLC Agreement in respect of any one or more of the next four fiscal
quarters; provided, however, that CPG's management may not establish cash reserves pursuant to
clause (b)(iii) of this definition if the effect of such reserves would be that Copano Holdings is unable to distribute the Minimum Quarterly Distribution (as defined in the Copano
Holdings LLC Agreement) on all Common Units, plus any Cumulative Common Unit Arrearage (as defined in the limited liability company agreement of Copano Holdings) on all Common Units with respect to
such fiscal quarter; and provided, further, that disbursements made by CPG or any of CPG's Subsidiaries or cash reserves established, increased, or reduced after the end of such fiscal quarter but on
or before the date of determination of Available Cash with respect to such fiscal quarter shall be deemed to have been made, established, 

2

 

increased,
or reduced, for purposes of determining Available Cash, within such fiscal quarter if CPG's management so determines. 

        "CES GP" means Copano Energy Services GP, L.L.C., a Delaware limited liability company, and includes its permitted successors and assigns. 

        "CFS GP" means Copano Field Services GP, L.L.C., a Delaware limited liability company, and includes its permitted successors and assigns. 

        "CFS Karnes" means Copano Field Services/Karnes, L.P., a Texas limited partnership, and includes its permitted successors and assigns. 

        "CFS/CGC GP" means Copano Field Services/Central Gulf Coast GP, L.L.C., a Delaware limited liability company, and includes its permitted
successors and assigns. 

        "Copano Energy LLC Agreement" or "Copano Holdings LLC Agreement" means the Second Amended
and Restated Limited Liability Company Agreement of Copano Energy, L.L.C., as amended, supplemented, restated or otherwise modified from time to time in accordance with the terms of the Loan
Documents. 

        "CP GP" means Copano Pipelines GP, L.L.C., a Delaware limited liability company, and includes its permitted successors and assigns. 

        "CPG Holdings" means CPG LP Holdings, L.L.C., a Delaware limited liability company, and includes its permitted successors and assigns. 

        "Equity Contribution Proceeds" means all cash and Cash Equivalent Investments of the types described in clauses
(a), (b) and (c) of the definition thereof received (without duplication) by the
Borrowers and their Subsidiaries from any equity contribution by Copano Holdings. 

        "Permitted Payment" means all dividends and distributions of CPG on, or other payments or distributions on account of, or the purchase,
redemption, retirement or other acquisition by CPG of, any portion of any membership interest in CPG; provided that (a) CPG delivers an officer's
certificate signed by one of its Authorized Officers and dated as of the distribution date of any Permitted Payment certifying that no Event of Default has occurred or is continuing or would be caused
by the making of such Permitted Payment and that the amount of such Permitted Payment, together with all other Permitted Payments theretofore made in such Fiscal Quarter, does not exceed the Available
Cash for the immediately preceding Fiscal Quarter; (b) the aggregate amount of Permitted Payments made in any Fiscal Quarter shall not exceed the Available Cash for the immediately preceding
Fiscal Quarter; and (c) no Permitted Payment shall be permitted at any time that an Event of Default shall have occurred and be continuing. 

        "Tangible Net Worth" means, at any time, the consolidated net worth of CPG and its consolidated Subsidiaries after subtracting therefrom
the aggregate amount of any assets of CPG and its consolidated Subsidiaries which would be shown as intangible assets on a consolidated balance sheet of CPG and its Subsidiaries as of such time
prepared in accordance with GAAP. 

        (iii)  The
definition of "Applicable Margin" is hereby amended and restated in its entirety as follows: 

3

 

        "Applicable Margin" means, on any date, with respect to any Loan which is a Base Rate Loan or LIBO Rate Loan, or with respect to any
Letter of Credit then outstanding, as applicable, the applicable per annum percentage set forth below based on the CPG Ratio of Senior Debt to EBITDA at the end of the most recent Fiscal Quarter for
which compliance has been certified as described below: 

	CPG Ratio of Senior Debt to EBITDA
 
	 	Base Rate

Loans
	 	LIBO Rate

Loans
	 	Letters of

Credit
	 
	greater than or equal to 3.25	 	1.50	%	3.00	%	3.00	%
	less than 3.25 but greater than or equal to 3.00	 	1.00	%	2.50	%	2.50	%
	less than 3.00 but greater than or equal to 2.50	 	0.75	%	2.25	%	2.25	%
	less than 2.50 but greater than or equal to 2.00	 	0.50	%	2.00	%	2.00	%
	less than 2.00	 	0.25	%	1.75	%	1.75	%

Changes
in the Applicable Margin resulting from changes in the CPG Ratio of Senior Debt to EBITDA will occur on the first Business Day of the month immediately following the date that the
Administrative Agent has received a compliance certificate delivered by CPG pursuant to Section 7.1.1(c) demonstrating that the CPG Ratio of
Senior Debt to EBITDA has changed; provided that if CPG fails to deliver any such compliance certificate within the time period required in  Section 7.1.1(c), then the CPG Ratio of Senior Debt to EBITDA shall, as of the date such compliance certificate should have been delivered to the
Administrative Agent, be deemed to be greater than 3.25. 

        (iv)  The
definition of "Borrower" and "Borrowers" is hereby amended to add "CFS Karnes". 

         (v)  The
definition of "Change in Control" is hereby amended and restated in its entirety as follows: 

        "Change in Control" means, (a) the acquisition by any Person, or two or more Persons acting in concert, of beneficial ownership
(within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of thirty-five percent (35%), on a
fully diluted basis, or more of the membership, partnership or other equity interests of Copano Holdings; (b) the failure of Copano Holdings to directly or indirectly own, free and clear of all
Liens or other encumbrances (other than Liens permitted pursuant to Section 7.2.3), at least one hundred percent (100%) of the membership
interests of CPG and the other Borrowers on a fully diluted basis; (c) the failure of CPG to directly own, free and clear of all Liens or other encumbrances (other than Liens permitted pursuant
to Section 7.2.3), all of the membership interests of CPG Holdings or CFS/CGC GP or all of the stock of Copano General Partners, Inc., a
Delaware corporation, in each case on a fully diluted basis; (d) the failure of the 

4

 

CFS/CGC
GP, CFS GP, CP GP and CES GP to own, free and clear of all Liens or other encumbrances (other than Liens permitted pursuant to  Section 7.2.3), at least one hundred percent (100%) of the general
partnership interests of (i) in the case of CFS GP, CFS Copano Bay, CFS
Agua Dulce, CFS South Texas, CFS Live Oak, CFS Upper Gulf Coast, and CFS Karnes, (ii) in the case of CP GP, CP South Texas, CP Upper Gulf Coast, and CP Hebbronville, (iii) in the case of
CES GP, CES Upper Gulf Coast, and (iv) in the case of CFS/CGC GP, CFS Central Gulf Coast; (e) the failure of CPG Holdings to directly own, free and clear of all Liens or other
encumbrances (other than Liens permitted pursuant to Section 7.2.3), all of the limited partnership interests of the Copano Operating Entities;
(f) the failure of Copano General Partners, Inc., a Delaware corporation, to own all of the membership interests of CFS GP, CP GP, and CES GP; and (g) a change in the composition
of Holdings' board of directors, as a result of which fewer than a majority of the directors of such board are Incumbent Directors. For purposes of this definition "Incumbent Director" shall mean a
director who is (i) a director of Copano Holdings as of the date of this Amendment, or (ii) elected, or nominated for election, thereafter to the board of directors of Copano Holdings
with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination or (iii) one of the five original independent directors of Copano
Holdings elected to the board of directors with the unanimous approval of Copano Partners, L.P., a Delaware limited partnership, the CSFB Entities and the EnCap Entities. 

        (vi)  The
definition of "Commitment Fee Rate" is hereby amended and restated in its entirety as follows: 

        "Commitment Fee Rate" means, on any date, the applicable per annum percentage set forth below based on the CPG Ratio of Senior Debt to
EBITDA at the end of the most recent Fiscal Quarter for which compliance has been certified as required below: 

	CPG Ratio of Senior Debt to EBITDA
 
	 	Commitment

Fee Rate
	 
	greater than or equal to 3.25	 	0.500	%
	less than 3.25 but greater than or equal to 3.00	 	0.500	%
	less than 3.00 but greater than or equal to 2.50	 	0.375	%
	less than 2.50 but greater than or equal to 2.00	 	0.375	%
	less than 2.00	 	0.375	%

Changes
in the Commitment Fee Rate resulting from changes in the CPG Ratio of Senior Debt to EBITDA will occur on the first Business Day of the month immediately following the date that the
Administrative Agent has received a compliance certificate delivered by CPG pursuant to Section 7.1.1(c) demonstrating that the CPG Ratio of
Senior Debt to EBITDA has changed; provided that if CPG fails to deliver any such compliance certificate within the time period required in  Section 7.1.1(c), then the CPG 

5

 

Ratio
of Senior Debt to EBITDA shall, as of the date such compliance certificate should have been delivered to the Administrative Agent, be deemed to be greater than 3.25. 

       (vii)  The
definition of "Copano Holdings" is hereby amended and restated in its entirety as follows: 

        "Copano Holdings" or "Copano Energy" means Copano Energy, L.L.C., formerly known as Copano
Energy Holdings, L.L.C., a Delaware limited liability company (it being understood that Copano Energy Holdings, L.L.C. (Organizational ID. Number 3423746) is itself a
successor-by-merger to Copano Energy, L.L.C. (Organizational ID. Number 3342602)), and includes its permitted successors and assigns. 

      (viii)  The
definition of "Copano Operating Entities" is hereby amended and restated in its entirely as follows: 

        "Copano Operating Entities" means CFS Copano Bay, CFS Aqua Dulce, CFS Karnes, CFS South Texas, CFS Upper Gulf Coast, CFS Live Oak, CFS
Central Gulf Coast, CP South Texas, CP Hebbronville, CP Upper Gulf Coast and CES Upper Gulf Coast. 

        (ix)  The
definition of "Tax Distributions" is hereby amended by replacing the words "the Borrower's" with "CPG's". 

        (b)   Section 2.8
of the Credit Agreement is hereby deleted in its entirety. 

        (c)   Section 3.1(f)
of the Credit Agreement is hereby amended and restated in its entirety as follows: 

        "(f)  [intentionally
omitted];" 

        (d)   Section 7.1.1(c)
of the Credit Agreement is hereby amended and restated as follows: 

        "(c) as
soon as available and in any event within sixty (60) days after the end of each respective Fiscal Quarter (or, with respect to the fourth Fiscal Quarter of a
Fiscal Year, one hundred twenty (120) days), a certificate, from CPG, executed by an Authorized Officer of CPG, having appropriate knowledge of the matters being certified, showing
(i) in reasonable detail and with appropriate calculations and computations in all respects satisfactory to the Administrative Agent, compliance with the financial covenants with respect to CPG
set forth in Section 7.2.4 and 7.2.13, (ii) in reasonable detail and with appropriate
calculations and computations in all respects satisfactory to the Administrative Agent, the calculation of the Available Cash during the Fiscal Quarter then most recently ended and including a
calculation of any required prepayments under Section 3.1; and (iii) in reasonable detail and with appropriate calculations and
computations in all respects satisfactory to the Administrative Agent, calculation of the CPG EBITDA for such Fiscal Quarter;" 

        (e)   Section 7.2.3
of the Credit Agreement is hereby amended by changing the cross reference to clause (i) thereof to clause (j) and inserting the words
"(i) First Purchaser Liens;" immediately after clause (h) thereof. 

        (f)    Section 7.2.4
of the Credit Agreement is hereby amended by 

6

 

          (i)  amending
and restating clause (a) in its entirety as follows: 

        "(a) CPG
and its Subsidiaries will not permit the CPG Ratio of Senior Debt to EBITDA at the end of any Fiscal Quarter after the Effective Date to be greater than 3.75 to
1.00."; and 

         (ii)  inserting
in a new clause (e) following clause (d) thereof as follows: 

        "(e) CPG
and its Subsidiaries will not permit the Tangible Net Worth at any time to be less than the sum of (i) $30,000,000 plus (ii) 50% of any Equity
Contribution Proceeds received after the Effective Date." 

        (g)   Section 7.2.6(a)
of the Credit Agreement is hereby amended and restated in its entirety. 

        "(a) On
and at all times after the Effective Date, CPG will not declare, pay or make any dividend or distribution (in cash, property or obligations) on any units of its
membership interests (now or hereafter outstanding) or on any warrants, options or other rights with respect to any units of its membership interests or other equity interests, now or hereafter
outstanding (other than dividends or distributions payable in its membership interests or warrants to purchase its membership interests or splitups or reclassifications of its membership interests
into additional or other units of its membership interests) or apply or permit any Subsidiary to apply any of its funds, property or assets to the purchase, redemption, sinking fund or other
retirement of any units of CPG's membership interests (now or hereafter outstanding), or warrants, options or other rights with respect to any units of CPG's membership interests (now or hereafter
outstanding), provided however that (i) Tax Distributions and Permitted Payments are permitted; (ii) in addition to the foregoing
restrictions in this clause (a), none of the Borrowers and none of their Subsidiaries will (A) make any payment or prepayment of principal
of, or make any payment of interest on, any Subordinated Debt on any day other than the stated, scheduled date for such payment or prepayment set forth in the documents and instruments memorializing
such Subordinated Debt, as the case may be, or which would violate the subordination provisions of such Subordinated Debt, as the case may be, (B) redeem, purchase or defease any Subordinated
Debt; and (iii) none of the Borrowers and none of their Subsidiaries will make any deposit for any of the foregoing purposes." 

        (h)   Section 8.l.11
of the Credit Agreement is hereby amended in its entirety to read as follows: 

        SECTION 8.1.11    Guarantor Defaults.    Any Guarantor shall default on any payment obligation
when due under the Guaranty executed by such Guarantor; or any Guaranty is for any reason (other than satisfaction in full of all Obligations and the termination of the Commitments) partially
(including with respect to future advances) or wholly revoked or invalidated, or otherwise ceases to be in full force and effect in any material respect, or any Guarantor or any other Person contests
in any manner the validity or enforceability thereof or denies that it has any further liability or obligation thereunder. 

        (i)    Section 10.21
of the Credit Agreement is hereby amended by replacing the words "this Section 10.19" with
the words "this Section 10.21." 

7

 

        (j)    Schedule IV of the Credit Agreement is hereby replaced with  Schedule IV attached hereto. 

        SECTION
2.    Representations and Warranties.    To induce the Lenders, the Administrative Agent, the Documentation
Agent and the Syndication Agent to enter into this Amendment, each of the Borrowers and other Obligors hereto hereby reaffirms, as of the date hereof, the representations and warranties made by or
with respect to it contained in the Credit Agreement, including Article VI thereof (except to the extent such representations and warranties relate solely to an earlier date in which case such
representations and warranties shall be true and correct as of such earlier date), and additionally represents and warrants as follows: 

        (a)   The
execution, delivery and performance by each Borrower and each other Obligor of this Amendment, are within its respective powers, have been duly authorized by all
necessary action, and do not (i) contravene any Borrower's or any other Obligor's Organic Documents; (ii) contravene in any material respect any contractual restriction or Governmental
Rule binding on or affecting any Borrower or any other Obligor; or (iii) result in, or require the creation or imposition of, any Lien on any of any Borrower's or any other Obligor's
properties, other than Liens permitted under the Loan Documents. 

        (b)   No
Governmental Approvals or other action by, and no notice to or filing with, any Governmental Authority or other Person is required for the due execution, delivery or
performance by any Borrower or other Obligor of this Amendment or for the consummation of the IPO (as hereinafter defined); 

        (c)   This
Amendment constitutes the legal, valid and binding obligations of each of the Borrowers and the other Obligors, enforceable in accordance with its terms, except as
may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or other similar laws affecting the enforcement of creditors' rights generally and general equitable principles; and 

        (d)   No
Default has occurred and is continuing. 

        SECTION
3.    Conditions to Effectiveness.    The effectiveness of this Amendment is conditioned upon receipt by the
Administrative Agent of the following: 

        (a)   counterparts
of this Amendment, duly executed by the parties hereto; 

        (b)   the
execution and delivery of replacement Notes issued by the Borrowers (including CFS Karnes as a new Borrower) and payable to each of the Lenders in the principal
amounts set forth on the column entitled "Loan Commitment" on Schedule II to the Credit Agreement, which Notes shall be renewals and replacements of, and shall be given in substitution and
exchange for, but not in payment of, those Notes held by each Lender prior to the effectiveness of this Amendment; 

        (c)   all
agreements, documents, instruments and other writings of the type described in Section 5.1.1 of the Credit Agreement with respect to CFS Karnes, CPG Holdings
and each of the Merger Subsidiaries
(hereinafter defined) and opinions of counsel in form and substance satisfactory to the Administrative Agent substantially covering the matters covered by the opinions delivered on the Effective Date
with respect to such entity; 

8

   
        (d)   copies of all financial statements (including pro forma financial statements), reports, notices and proxy statements and all filings (including any filings on
Form S-1 or Form 8 or Form 10) made with the Securities Exchange Commission in connection with the initial public offering by Copano Energy, L.L.C., formerly known as
Copano Energy Holdings, L.L.C. of "Common Units" as defined in the Copano Energy LLC Agreement (the "IPO"); 

        (e)   evidence
satisfactory to the Administrative Agent that (i) the IPO shall have been effected as contemplated by the S-1 filing of Copano Holdings (as
defined after giving effect to this Amendment and used herein with the same meaning), and (ii) Copano Holdings has received net proceeds of an aggregate amount of not less than $80,000,000 as a
result of such IPO; 

        (f)    a
copy of the Second Amended and Restated Limited Liability Company Agreement of Copano Energy, L.L.C., dated as of the date hereof and certified by an Authorized
Officer of Copano Energy, L.L.C. and attached hereto as Exhibit A; 

        (g)   all
filed Uniform Commercial Code financing statements or similar instruments naming Copano Holdings as debtor have been filed and/or amended to reflect its new name in
a manner satisfactory to the Administrative Agent and all such other Uniform Commercial Code financing statements, continuations and/or amendments have been made as requested by the Administrative
Agent, or arrangements have been made therefore in a manner satisfactory to the Administrative Agent, to maintain the priority and perfection of the Liens granted by Copano Holdings or Copano Energy,
L.L.C. to Administrative Agent; 

        (h)   all
pledges, security agreements, guaranties and other documents, and/or amendments and Uniform Commercial Code financing statements thereto, as the Administrative Agent
may request shall be executed and delivered so that all of the equity interests and assets of the Merger Subsidiaries are appropriately pledged to secure the Obligations, or satisfactory arrangement
have been made therefor in a manner satisfactory to the Administrative Agent; 

        (i)    evidence
that the insurance policies of the Borrowers have been revised in a manner satisfactory to the Administrative Agent; 

        (j)    evidence
in form and substance satisfactory to the Administrative Agent of (i) the completed merger between Copano Energy Holdings, L.L.C. (Organizational ID.
Number 3423746) and Copano Energy, L.L.C. (Organizational ID. Number 3342602), with the Copano Energy Holdings, L.L.C. being the survivor and succeeding to the rights of, and becoming obligated to the
obligations, liabilities and duties of, Copano Energy, L.L.C., and the subsequent name change of the surviving entity from "Copano Energy Holdings, L.L.C." to "Copano Energy, L.L.C.", (ii) the
creation of CPG LP Holdings, L.L.C., a Delaware limited liability company ("CPG Holdings"), (iii) the creation of Copano Field Services/Central
Gulf Coast GP, L.L.C., a Delaware limited liability company ("CFS/CGC GP"), Copano Pipelines GP, L.L.C., a Delaware limited liability company
("CP GP"), Copano Field Services GP, L.L.C., a Delaware limited liability company ("CFS GP"), and Copano
Energy Services GP, L.L.C., a Delaware limited liability company ("CES GP") (collectively the "Merger
Subsidiaries"); (iv) the completed mergers between Copano Field Services/Central Gulf Coast (Texas), L.L.C. and CFS/CGC GP, Copano Field Services L.L.C. and CFS GP,
Copano Pipelines L.L.C. and CP GP, and Copano Energy Services, L.L.C. and CES GP, with the latter respective entities being the 

9

 

survivors
and succeeding to the rights of, and becoming obligated to the obligations, liabilities and duties of, the former respective entities, and (v) the requisite assignments,
contributions, partnership interest conversions, and undertakings necessary so that the corporate structure of CPG and its Subsidiaries after giving effect to this Amendment is as set forth on
Schedule IV attached hereto; 

        (k)   the
Administrative Agent shall have received for the account of the Lender Parties, all fees, costs and expenses then due and payable to the Lender Parties pursuant to
the Loan Documents; and 

        (l)    such
other agreements, documents and instruments as the Administrative Agent shall have reasonably requested. 

        SECTION
4.    Amendments to Loan Documents; Assumption of Obligations.    Upon the effectiveness of this Amendment,
all references to Copano Field Services/Central Gulf Coast (Texas), L.L.C., Copano Field Services L.L.C., Copano Pipelines L.L.C. and Copano Energy Services, L.L.C., in any Loan Document shall be
deemed to be references to CFS/CGC GP, CFS GP, CP GP and CES GP, respectively. In addition to and not in limitation of any assumption of obligations by each of CFS/CGC GP, CFS GP, CP GP and CES GP by
operation of law as a result of the mergers described in Section 3(j)(ii) above, each of CFS/CGC GP, CFS GP, CP GP and CES GP hereby assumes and
agrees to perform and be bound by and be liable for, all obligations and liabilities of Copano Field Services/Central Gulf Coast (Texas), L.L.C., Copano Field Services L.L.C., Copano Pipelines L.L.C.
and Copano Energy Services, L.L.C., respectively, under any Loan Document (including, without limitation, all Security Documents) to which Copano Field Services/Central Gulf Coast (Texas), L.L.C.,
Copano Field Services L.L.C., Copano Pipelines L.L.C. and Copano Energy Services, L.L.C., respectively, is a party. 

        SECTION
5.    References to Copano Holdings in Loan Documents.    Upon the effectiveness of this Amendment, all
references to Copano Holdings or "Copano Energy Holdings, L.L.C." or "Copano Energy, L.L.C." in the Loan Documents shall hereafter be deemed to be references to Copano Holdings as amended by this
Amendment. 

        SECTION
6.    CFS Karnes as a Borrower.    Upon the effectiveness of this Amendment, CFS Karnes shall be deemed to be
a Borrower under the Credit Agreement and the other Loan Documents, and CFS Karnes
hereby agrees to perform all of the obligations of a Borrower under, and be bound in all respects by the terms of, the Credit Agreement and the other Loan Documents as if CFS Karnes had been an
original signatory thereto as a Borrower. 

        SECTION
7.    Certain Consents.    By their signatures hereto the Agents, Issuer and Lenders hereby consent to
(i) the IPO described in Section 3(e), provided that such IPO is effectuated in compliance with all Governmental Rules and as contemplated
by such S-1 filing and provided further that this consent shall not affect the obligations of the Borrowers to deliver all documents and take all actions as otherwise required by the
Credit Agreement; (ii) the modifications to the Organic Document of Copano Energy, L.L.C. made by the Second Amended and Restated Limited Liability Company Agreement of Copano Energy, L.L.C.
referred to in Section 3(f); and (iii) the transactions described in clauses (ii),  (iii),
(iv) and (v) of  Section 3(j), provided that this consent pursuant to this clause (iii) shall not affect
the obligations 

10

 

of
the Borrowers to deliver all documents and take all actions as otherwise required by the Credit Agreement, including pursuant to Section 7.1.12 of the Credit Agreement. 

        SECTION
8.    Effect.    This Amendment shall be deemed to be an amendment to the Credit Agreement, and the Credit
Agreement as amended hereby is hereby ratified, approved and confirmed in each and every respect. All references to the Credit Agreement in any Loan Document or in any other document, instrument,
agreement or writing shall hereafter be deemed to refer to the Credit Agreement as such is amended hereby. 

        SECTION
9.    Ratification of Security Documents and other Loan Documents.    Each Borrower and each other Obligor
that is a party to a Security Document or other Loan Document (in each case as such Security Document or other Loan Document is amended hereby) hereby expressly and specifically ratifies, restates and
confirms the terms and provisions of each such Security Document and each such other Loan Document to which it is a party, and its respective liability for all of the Obligations, and other
obligations, liabilities, agreements and covenants thereunder. 

        SECTION
10.    Governing Law; Entire Agreement.    THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THAT WOULD REQUIRED THE APPLICATION OF THE LAW OF ANY OTHER
JURISDICTION).

        SECTION
11.    Execution in Counterparts.    This Amendment may be executed by the parties hereto in several
counterparts, each of which shall be executed by the parties hereto and be deemed to be an original and all of which shall constitute together but one and the same agreement. A facsimile copy of this
letter and signatures thereon shall be considered for all purposes as originals. 

        SECTION
12.    Successors and Assigns.    This Amendment shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. 

        SECTION
13.    No Oral Agreements.    THE CREDIT AGREEMENT AS AMENDED HEREBY 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 BETWEEN THE PARTIES.

11

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

	 	 	COPANO PIPELINES GROUP, L.L.C., as a Borrower
	

 	
 	

By:	
 	

/s/  SUSAN T. DUBB      

	 	 	Name: Susan T. Dubb

Title: Vice President
	

 	
 	
COPANO FIELD SERVICES/COPANO BAY, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO FIELD SERVICES/AGUA DULCE, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer

	 	 	COPANO FIELD SERVICES/SOUTH TEXAS, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO FIELD SERVICES/UPPER GULF COAST, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO FIELD SERVICES/LIVE OAK, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer

	 	 	COPANO FIELD SERVICES/KARNES, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO FIELD SERVICES/CENTRAL GULF COAST, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Field Services/Central Gulf Coast GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO PIPELINES/SOUTH TEXAS, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Pipelines GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO PIPELINES/UPPER GULF COAST, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Pipelines GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer

	 	 	COPANO PIPELINES/HEBBRONVILLE, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Pipelines GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO ENERGY SERVICES/UPPER GULF COAST, L.P., as a Borrower
	

 	
 	

By:	
 	

Copano Energy Services GP, L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer

	 	 	Acknowledged and Agreed:
	

 	
 	

COPANO FIELD SERVICES/CENTRAL GULF COAST GP, L.L.C., a Delaware limited liability company and successor-by-merger to COPANO FIELD SERVICES/CENTRAL GULF COAST (TEXAS), L.L.C., as an Obligor
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO FIELD SERVICES GP, L.L.C., a Delaware limited liability company and successor-by-merger to COPANO FIELD SERVICES, L.L.C., as an
Obligor
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO PIPELINES GP, L.L.C., a Delaware limited liability company and successor-by-merger to COPANO PIPELINES, L.L.C., as an
Obligor
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer
	

 	
 	
COPANO ENERGY SERVICES GP, L.L.C., a Delaware limited liability company and successor-by-merger to COPANO ENERGY SERVICES, L.L.C., as
an Obligor
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman and Chief Executive Officer

	 	 	CPG LP HOLDINGS, L.L.C., as an Obligor
	

 	
 	

By:	
 	

/s/  SUSAN T. DUBB      

	 	 	Name: Susan T. Dubb

Title: Vice President
	

 	
 	
COPANO GENERAL PARTNERS, INC., as an Obligor
	

 	
 	

By:	
 	

/s/  SUSAN T. DUBB      

	 	 	Name: Susan T. Dubb

Title: Vice President
	

 	
 	
COPANO ENERGY, L.L.C. f/k/a COPANO ENERGY HOLDINGS, L.L.C. (Organizational ID Number 3423746), a Delaware limited liability company and successor-by-merger to COPANO ENERGY, L.L.C. (Organizational ID Number 3342602), as an Obligor
	

 	
 	

By:	
 	

/s/  JOHN R. ECKEL, JR.      

	 	 	Name: John R. Eckel, Jr.

Title: Chairman of the Board and Chief Executive Officer

	 	 	FLEET NATIONAL BANK, as Administrative Agent and Lender and Issuer
	

 	
 	

By	

/s/  MICHAEL J. BROCHETTI      

	 	 	Name:	Michael J. Brochetti
	 	 	Title:	Director

	 	 	U.S. BANK NATIONAL ASSOCIATION, as Syndication Agent and Lender
	

 	
 	

By	

/s/  MONTE E. DECKERD      

	 	 	Name:	Monte E. Deckerd
	 	 	Title:	Vice President

	 	 	BANK OF SCOTLAND, as Senior Managing Agent and Lender
	

 	
 	

By	

/s/  KAREN WEICH      

	 	 	Name:	Karen Weich
	 	 	Title:	Assistant Vice President
	

 	
 	

By	

/s/  AMENA NABI      

	 	 	Name:	Amena Nabi
	 	 	Title:	Assistant Vice President

	 	 	COMERICA BANK, as Lender
	

 	
 	

By	

/s/  HUMA VADGAMA      

	 	 	Name:	Huma Vadgama
	 	 	Title:	Vice President

	 	 	SOUTHWEST BANK OF TEXAS, as Lender
	

 	
 	

By	

/s/  LAIF AFSETH      

	 	 	Name:	Laif Afseth
	 	 	Title:	Senior Vice President

	 	 	COMPASS BANK, as Lender
	

 	
 	

By	

/s/  DOROTHY MARCHAND      

	 	 	Name:	Dorothy Marchand
	 	 	Title:	Senior Vice President

	 	 	GUARANTY BANK, as Lender
	

 	
 	

By	

/s/  JIM R. HAMILTON      

	 	 	Name:	Jim R. Hamilton
	 	 	Title:	Senior Vice President

	 	 	ROYAL BANK OF CANADA, as Lender
	

 	
 	

By	

/s/  JASON YORK      

	 	 	Name:	Jason York
	 	 	Title:	Attorney-in-Fact

	 	 	FORTIS CAPITAL CORP., as Lender
	

 	
 	

By	

/s/  DARRELL W. HOLLEY      

	 	 	Name:	Darrell W. Holley
	 	 	Title:	Managing Director
	

 	
 	

By	

/s/  CASEY LOWARY      

	 	 	Name:	Casey Lowary
	 	 	Title:	Senior Vice President

SCHEDULE IV  

ORGANIZATIONAL CHART

Attached.

EXHIBIT A  

SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY

AGREEMENT OF COPANO ENERGY, L.L.C.

Attached.

QuickLinks

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]