Document:

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REGISTRATION RIGHTS AGREEMENT

by and among

Copano Energy, L.L.C.

Copano Energy Finance Corporation

The Guarantors Listed on Schedule A

and

Banc of America Securities LLC

Credit Suisse Securities (USA) LLC

Goldman, Sachs & Co.

Lehman Brothers Inc.

Comerica Securities, Inc.

Fortis Securities LLC

KeyBanc Capital Markets, a Division of McDonald Investments Inc.

Piper Jaffray & Co.

RBC Capital Markets Corporation

Sanders Morris Harris Inc.

Dated as of February 7, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	 	 	Page
	 
	1.
	 	Definitions	 	1
	 
	 	 	 	 
	2.
	 	Securities Subject to this Agreement	 	4
	 
	 	 	 	 
	3.
	 	Registered Exchange Offer	 	4
	 
	 	 	 	 
	4.
	 	Shelf Registration	 	5
	 
	 	 	 	 
	5.
	 	Additional Interest	 	6
	 
	 	 	 	 
	6.
	 	Registration Procedures	 	7
	 
	 	 	 	 
	7.
	 	Registration Expenses	 	14
	 
	 	 	 	 
	8.
	 	Indemnification	 	15
	 
	 	 	 	 
	9.
	 	Rule 144 and 144A Information	 	17
	 
	 	 	 	 
	10.
	 	Participation in Underwritten Registrations	 	17
	 
	 	 	 	 
	11.
	 	Selection of Underwriters	 	17
	 
	 	 	 	 
	12.
	 	Miscellaneous	 	18

  i

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of
February 7, 2006, by and among Copano Energy, L.L.C., a Delaware limited liability company (the
“Company”), Copano Energy Finance Corporation, a Delaware corporation (“FinCo”)
(the Company and FinCo are referred to collectively as the “Issuers”), the guarantors
listed on Schedule A hereto (collectively, the “Guarantors”), and Banc of America
Securities LLC, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., Lehman Brothers Inc.,
Comerica Securities, Inc., Fortis Securities LLC, KeyBanc Capital Markets, a Division of McDonald
Investments Inc., Piper Jaffray & Co., RBC Capital Markets Corporation and Sanders Morris Harris
Inc. (collectively, the “Initial Purchasers”), who
have agreed to purchase the Issuers’ 81/8%
Senior Notes due 2016 (the “Initial Notes”) fully and unconditionally guaranteed by the
Guarantors (the “Guarantees”) pursuant to the Purchase Agreement (as defined below). The
Initial Notes and the Guarantees are herein collectively referred to as the “Initial
Securities.”

     This Agreement is made pursuant to the Purchase Agreement, dated January 31, 2006 (the
“Purchase Agreement”), among the Issuers, the Guarantors and the Initial Purchasers (i) for
the benefit of the Initial Purchasers and (ii) for the benefit of the Holders from time to time of
the Initial Securities, including the Initial Purchasers. In order to induce the Initial
Purchasers to purchase the Initial Securities, the Issuers have agreed to provide the registration
rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to
the obligations of the Initial Purchasers set forth in Section 6(j) of the Purchase Agreement.

     The parties hereby agree as follows:

     Section 1. Definitions. As used in this Agreement, the following capitalized terms
shall have the following meanings:

     Additional Interest: As defined in Section 5 hereof.

     Advice: As defined in the last paragraph of Section 6(c) hereof.

     Agreement: As defined in the preamble hereto.

     Blackout Period: As defined in the last paragraph of Section 4(a) hereof.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Business Day: As defined in the Indenture.

     Closing Date: The date of this Agreement.

     Commission: The Securities and Exchange Commission.

     Company: As defined in the preamble hereto.

     Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (i) the filing and effectiveness under the

 

 

Securities Act of the Exchange Offer Registration Statement relating to the Exchange
Securities to be issued in the Exchange Offer, (ii) the maintenance of such Registration Statement
continuously effective and the keeping of the Exchange Offer open for a period not less than the
minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Issuers to
the Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as
the aggregate principal amount of Initial Securities that were tendered by Holders thereof pursuant
to the Exchange Offer.

     Effectiveness Target Date: As defined in Section 5 hereof.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Exchange Offer: The Issuers’ offer to the Holders of all outstanding Transfer Restricted
Securities of the opportunity to exchange all such outstanding Transfer Restricted Securities held
by such Holders for Exchange Securities in an aggregate principal amount equal to the aggregate
principal amount of the Transfer Restricted Securities tendered in such exchange offer by such
Holders.

     Exchange Offer Registration Statement: The Registration Statement relating to the Exchange
Offer, including the related Prospectus.

     Exempt Resales: The transactions in which the Initial Purchasers propose to sell the Initial
Securities to certain “qualified institutional buyers,” as such term is defined in Rule 144A under
the Securities Act and to certain non-U.S. persons pursuant to Regulation S under the Securities
Act.

     Exchange
Securities: The
81/8% Senior Notes due 2016, of the same series under the Indenture as
the Initial Notes, and the Guarantees related thereto, to be issued to Holders in exchange for
Transfer Restricted Securities pursuant to this Agreement.

     FinCo: As defined in the preamble hereto.

     Guarantees: As defined in the preamble hereto.

     Holder: As defined in Section 2(b) hereof.

     Indemnified Holder: As defined in Section 8(a) hereof.

     Indenture: The Indenture, dated as of February 7, 2006 by and among the Issuers, the
Guarantors and the Trustee, pursuant to which the Securities are to be issued, as such Indenture is
amended or supplemented from time-to-time in accordance with the terms thereof.

     Initial Purchasers: As defined in the preamble hereto.

     Initial Notes: As defined in the preamble hereto.

     Initial Placement: The issuance and sale by the Issuers of the Initial Securities to the
Initial Purchasers pursuant to the Purchase Agreement.

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     Initial Securities: As defined in the preamble hereto.

     Issuers: As defined in the preamble hereto.

     NASD: NASD Inc.

     Person: An individual, partnership, limited liability company, corporation, trust or
unincorporated organization, or a government or agency or political subdivision thereof.

     Prospectus: The prospectus included in a Registration Statement, as amended or supplemented
by any prospectus supplement and by all other amendments thereto, including post-effective
amendments, and all material incorporated by reference into such Prospectus.

     Registration Default: As defined in Section 5 hereof.

     Registration Statement: Any registration statement of the Company relating to (a) an offering
of Exchange Securities pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, which is filed pursuant to the
provisions of this Agreement, in each case, including the Prospectus.

     Securities: The Initial Securities and the Exchange Securities.

     Securities Act: The Securities Act of 1933, as amended.

     Shelf Filing Deadline: As defined in Section 4(a)(x) hereof.

     Shelf Registration Statement: As defined in Section 4(a)(x) hereof.

     Trustee: U.S. Bank National Association.

     Trust Indenture Act: The Trust Indenture Act of 1939, as amended.

     Transfer Restricted Securities: Each Initial Security, until the earliest to occur of (a) the
date on which such Initial Security is exchanged in the Exchange Offer for an Exchange Security
entitled to be resold to the public by the Holder thereof without complying with the prospectus
delivery requirements of the Securities Act, (b) the date on which such Initial Security has been
effectively registered under the Securities Act and disposed of in accordance with a Shelf
Registration Statement, (c) the date on which such Initial Security is distributed to the public
pursuant to Rule 144(k) under the Securities Act or by a Broker-Dealer pursuant to the “Plan of
Distribution” contemplated by the Exchange Offer Registration Statement (including delivery of the
Prospectus contained therein) and (d) the date on which such Initial Securities cease to be
outstanding for purposes of the Indenture.

     Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public.

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     Section 2. Securities Subject to this Agreement.

     (a) Transfer Restricted Securities. The Transfer Restricted Securities are entitled to the
benefits of this Agreement.

     (b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer
Restricted Securities (each, a “Holder”) whenever such Person owns Transfer Restricted
Securities.

     Section 3. Registered Exchange Offer.

     (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission
policy, each of the Issuers and the Guarantors shall (i) cause to be filed with the Commission on
or prior to 120 days after the Closing Date, a Registration Statement under the Securities Act
relating to the Exchange Securities (other than Transfer Restricted Securities acquired by any
Broker-Dealer directly from the Issuers) and the Exchange Offer, (ii) use its reasonable best
efforts (which shall include the filing of all necessary amendments to such Registration Statement)
to cause such Registration Statement to be declared effective by the Commission on or prior to 180
days after the Closing Date, and (iii) upon the effectiveness of such Registration Statement,
promptly commence the Exchange Offer. The Exchange Offer shall be on the appropriate form
permitting registration of the Exchange Securities to be offered in exchange for the Transfer
Restricted Securities (other than Transfer Restricted Securities acquired by any Broker-Dealer
directly from the Issuers) and to permit resales of Initial Securities held by Broker-Dealers as
contemplated by Section 3(c) hereof.

     (b) The Issuers and the Guarantors shall cause the Exchange Offer Registration Statement to
be effective continuously and shall keep the Exchange Offer open for a period of not less than the
minimum period required under applicable federal and state securities laws to Consummate the
Exchange Offer. The Issuers shall cause the Exchange Offer to comply with all applicable federal
and state securities laws. No securities other than the Exchange Securities shall be included in
the Exchange Offer Registration Statement. The Issuers shall use their reasonable best efforts to
cause the Exchange Offer to be Consummated no later than 30 Business Days after the Exchange Offer
Registration Statement has become effective.

     (c) The Issuers shall indicate in a “Plan of Distribution” section contained in the
Prospectus forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who
holds Initial Securities that are Transfer Restricted Securities and that were acquired for its own
account as a result of market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Issuers) may exchange such Initial Securities
pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter”
within the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the
requirements of the Securities Act in connection with any resales of the Exchange Securities
received by such Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may be
satisfied by the delivery by such Broker-Dealer of the Prospectus contained in the Exchange Offer
Registration Statement. Such “Plan of Distribution” section shall also contain all other
information with respect to such resales by Broker-Dealers that the Commission may require in order
to permit such resales pursuant thereto, but such “Plan of

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Distribution” shall not name any such Broker-Dealer or disclose the amount of Initial
Securities held by any such Broker-Dealer except to the extent required by the Commission.

     Each of the Issuers and the Guarantors shall use its reasonable best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented and amended as required
by the provisions of Section 6(c) hereof to the extent necessary to ensure that it is available for
resales of Initial Securities acquired by Broker-Dealers for their own accounts as a result of
market-making activities or other trading activities, and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period ending on the earlier of (i) 210 days after
the Consummation of the Exchange Offer and (ii) the date on which a Broker-Dealer is no longer
required to deliver a prospectus in connection with market-making or other trading activities.

     The Issuers shall provide sufficient copies of the latest version of such Prospectus to
Broker-Dealers promptly upon request at any time during such 210-day (or shorter as provided in the
foregoing sentence) period in order to facilitate such resales.

Section 4. Shelf Registration.

     (a) Shelf Registration. If (i) the Issuers are not required to file an Exchange Offer
Registration Statement or to consummate the Exchange Offer because the Exchange Offer is not
permitted by applicable law or Commission policy, (ii) for any reason the Exchange Offer is not
Consummated within 30 Business Days after the Exchange Offer Registration Statement has become
effective or (iii) with respect to any Holder of Transfer Restricted Securities, such Holder
notifies the Company following the Consummation of the Exchange Offer that (A) because of any
change in law or in currently prevailing interpretations of the staff of the Commission, such
Holder (other than an Initial Purchaser holding Notes acquired directly from the Issuers) is
prohibited by applicable law or Commission policy from participating in the Exchange Offer, or (B)
such Holder may not resell the Exchange Securities acquired by it in the Exchange Offer to the
public without delivering a prospectus and that the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such Holder, or (C) such
Holder is a Broker-Dealer and holds Initial Securities acquired directly from an Issuer or one of
its affiliates, then, in each case upon such Holder’s request in writing within 20 Business Days
after the Consummation of the Exchange Offer, the Issuers and the Guarantors shall:

     (x) cause to be filed a shelf registration statement pursuant to Rule 415 under the
Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in
either event, the “Shelf Registration Statement”), on or prior to the earliest to
occur of (1) the 120th day after the date on which the Issuers determine that they are not
required to file the Exchange Offer Registration Statement as contemplated by clause (a)(i)
above, (2) the 120th day after the 30th Business Day if the Exchange Offer is not
Consummated within 30 Business Days after the Exchange Offer Registration Statement has
become effective as contemplated by clause (a)(ii) above and (3) the 120th day after the
date on which the Company receives notice from a Holder of Transfer Restricted Securities as
contemplated by clause (a)(iii) above (such earliest date being the “Shelf 

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Filing Deadline”), which Shelf Registration Statement shall provide for resales
of all Transfer Restricted Securities the Holders of which shall have provided the
information required pursuant to Section 4(b) hereof; and

     (y) use their reasonable best efforts to cause such Shelf Registration Statement to be
declared effective by the Commission on or before the 180th day after the date on which the
filing obligation arises.

     Each of the Issuers and the Guarantors shall use its reasonable best efforts to keep such
Shelf Registration Statement continuously effective, supplemented and amended as required by the
provisions of Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available
for resales of Initial Securities by the Holders of Transfer Restricted Securities entitled to the
benefit of this Section 4(a) and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of at least two years following the Closing Date (or
shorter period (i) that will terminate when all the Initial Securities covered by such Shelf
Registration Statement have been sold pursuant to such Shelf Registration Statement or (ii) as may
be required pursuant to Rule 144(k) under the Securities Act). Each of the Issuers and the
Guarantors shall be deemed not to have used its reasonable best efforts to keep the Shelf
Registration Statement effective during the requisite period if any of the Issuers or the
Guarantors voluntarily takes any action that would result in Holders of Transfer Restricted
Securities covered thereby not being able to offer and sell such Transfer Restricted Securities
during that period, unless (A) such action is required by applicable law; or (B) such action is
taken by any of the Issuers or Guarantors in good faith and for valid business reasons (not
including avoidance of the Issuers or the Guarantors obligations hereunder) including, but not
limited to, the acquisition or divestiture of assets, so long as the Issuers and the Guarantors
promptly thereafter comply with the requirements of the last paragraph of Section 6(c) hereof (the
period during which the Shelf Registration Statement is not available under clauses (A) or (B)
above, the “Blackout Period”). The Blackout Period shall not exceed 45 days in any
three-month period or 90 days in any twelve-month period.

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this Agreement unless and until such
Holder furnishes to the Company in writing, within 20 Business Days after receipt of a request
therefor, such information as the Company may reasonably request for use in connection with any
Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. Each Holder
as to which any Shelf Registration Statement is being effected agrees to furnish promptly to the
Company all information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.

     Section 5. Additional Interest. If (i) any of the Registration Statements required
by this Agreement is not filed with the Commission on or prior to the date specified for such
filing in this Agreement, (ii) any of such Registration Statements has not been declared effective
by the Commission on or prior to the date specified for such effectiveness in this Agreement (the
“Effectiveness Target Date”), (iii) the Exchange Offer has not been Consummated within 30

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Business Days after the Effectiveness Target Date with respect to the Exchange Offer
Registration Statement or (iv) any Registration Statement required by this Agreement is filed and
declared effective but shall thereafter cease to be effective or fail to be usable for its intended
purpose, except during any Blackout Period, without being succeeded immediately by a post-effective
amendment to such Registration Statement that cures such failure and that is itself immediately
declared effective (each such event referred to in clauses (i) through (iv), a “Registration
Default”), the Issuers hereby agree that the interest rate borne by the Transfer Restricted
Securities shall be increased by 0.25% per annum during the 90-day period immediately following the
occurrence of any Registration Default and shall increase by 0.25% per annum at the end of each
subsequent 90-day period, but in no event shall such increase exceed 1.00% per annum. Such
additional interest to be paid pursuant to a Registration Default as set forth in this Section 5 is
herein referred to as “Additional Interest.” Following the cure of all Registration
Defaults relating to any particular Transfer Restricted Securities, the interest rate borne by the
relevant Transfer Restricted Securities will be reduced to the original interest rate borne by such
Transfer Restricted Securities; provided, however, that, if after any such reduction in interest
rate, a different Registration Default occurs, the interest rate borne by the relevant Transfer
Restricted Securities shall again be increased pursuant to the foregoing provisions.

     All Additional Interest accrued pursuant to this Section 5 shall be paid in the manner
provided for in the Indenture. All obligations of the Issuers and the Guarantors set forth in the
preceding paragraph that are outstanding with respect to any Transfer Restricted Security at the
time such security ceases to be a Transfer Restricted Security shall survive until such time as all
such obligations with respect to such security shall have been satisfied in full.

     Section 6. Registration Procedures.

     (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, the
Issuers and the Guarantors shall comply with all of the provisions of Section 6(c) hereof, shall
use their reasonable best efforts to effect such exchange to permit the sale of Transfer Restricted
Securities being sold in accordance with the intended method or methods of distribution thereof.
As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement,
each Holder of Transfer Restricted Securities shall furnish, upon the request of the Issuers, prior
to the Consummation thereof, a written representation to the Issuers (which may be contained in the
letter of transmittal contemplated by the Exchange Offer Registration Statement) to the effect that
(A) it is not an affiliate (within the meaning of Rule 405 under the Securities Act) of any of the
Issuers or the Guarantors, (B) it is not engaged in, and does not intend to engage in, and has no
arrangement or understanding with any Person to participate in, a distribution of the Exchange
Securities to be issued in the Exchange Offer and (C) it is acquiring the Exchange Securities in
its ordinary course of business. In addition, all such Holders of Transfer Restricted Securities
shall otherwise cooperate in the Issuers’ preparations for the Exchange Offer. Each Holder hereby
acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to
participate in a distribution of the securities to be acquired in the Exchange Offer (1) could not
under Commission policy as in effect on the date of this Agreement rely on the position of the
Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and
Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters, and
(2) must comply with the registration and prospectus delivery requirements of the Securities

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Act in connection with a secondary resale transaction and that such a secondary resale
transaction should be covered by an effective registration statement containing the selling
security holder information required by Item 507 or 508, as applicable, of Regulation S-K if the
resales are of Exchange Securities obtained by such Holder in exchange for Initial Securities
acquired by such Holder directly from the Issuers.

     (b) Shelf Registration Statement. In connection with the Shelf Registration Statement, each
of the Issuers and the Guarantors shall comply with all the provisions of Section 6(c) hereof and
shall use its reasonable best efforts to effect such registration to permit the sale of the
Transfer Restricted Securities being sold in accordance with the intended method or methods of
distribution thereof, and pursuant thereto each of the Issuers and the Guarantors will as
expeditiously as possible prepare and file with the Commission a Registration Statement relating to
the registration on any appropriate form under the Securities Act, which form shall be available
for the sale of the Transfer Restricted Securities in accordance with the intended method or
methods of distribution thereof.

     (c) General Provisions. In connection with any Registration Statement and any Prospectus
required by this Agreement to permit the sale or resale of Transfer Restricted Securities
(including, without limitation, any Registration Statement and the related Prospectus required to
permit resales of Initial Securities by Broker-Dealers), each of the Issuers and the Guarantors
shall:

     (i) use its reasonable best efforts to keep such Registration Statement continuously
effective and provide all requisite financial statements (including, if required by the
Securities Act or any regulation thereunder, financial statements of the Guarantors) for the
period specified in Section 3 or 4 hereof, as applicable; upon the occurrence of any event
that would cause any such Registration Statement or the Prospectus contained therein (A) to
contain a material misstatement or omission or (B) not to be effective and usable for resale
of Transfer Restricted Securities during the period required by this Agreement, the Issuers
and the Guarantors shall file promptly an appropriate amendment to such Registration
Statement, in the case of clause (A), correcting any such misstatement or omission, and, in
the case of either clause (A) or (B), use its reasonable best efforts to cause such
amendment to be declared effective and such Registration Statement and the related
Prospectus to become usable for their intended purpose(s) as soon as practicable thereafter;

     (ii) prepare and file with the Commission such amendments and post-effective
amendments to the applicable Registration Statement as may be necessary to keep the
Registration Statement effective for the applicable period set forth in Section 3 or 4
hereof, as applicable, or such shorter period as set forth in this Agreement; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented
to be filed pursuant to Rule 424 under the Securities Act, and to comply fully with the
applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and
comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such Registration Statement during the applicable period in accordance
with the intended method or methods of distribution by the sellers thereof set forth in such
Registration Statement or supplement to the Prospectus;

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     (iii) advise the underwriter(s), if any, and selling Holders promptly and, if
requested by such Persons, to confirm such advice in writing, (A) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with respect to any
Registration Statement or any post-effective amendment thereto, when the same has become
effective, (B) of any request by the Commission for amendments to the Registration Statement
or amendments or supplements to the Prospectus or for additional information relating
thereto, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Securities Act or of the suspension by
any state securities commission of the qualification of the Transfer Restricted Securities
for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, (D) of the existence of any fact or the happening of any event that
makes any statement of a material fact made in the Registration Statement, the Prospectus,
any amendment or supplement thereto, or any document incorporated by reference therein
untrue, or that requires the making of any additions to or changes in the Registration
Statement or the Prospectus in order to make the statements therein (with respect to the
Prospectus, in the light of the circumstances under which they were made) not misleading.
If at any time the Commission shall issue any stop order suspending the effectiveness of the
Registration Statement, or any state securities commission or other regulatory authority
shall issue an order suspending the qualification or exemption from qualification of the
Transfer Restricted Securities under state securities or blue sky laws, each of the Issuers
and the Guarantors shall use its reasonable best efforts to obtain the withdrawal or lifting
of such order at the earliest possible time;

     (iv) furnish without charge to the Initial Purchasers, each selling Holder named in
any Registration Statement, and each of the underwriter(s), if any, before filing with the
Commission, copies of any Registration Statement or any Prospectus included therein or any
amendments or supplements to any such Registration Statement or Prospectus (including all
documents incorporated by reference after the initial filing of such Registration
Statement), which documents will be subject to the review and comment of such Holders and
underwriter(s) in connection with such sale, if any, for a period of at least two Business
Days; make the Issuers’ and the Guarantors’ representatives available for discussion of such
document and other customary due diligence matters, and include such information in such
document prior to the filing thereof as such selling Holders or underwriter(s), if any,
reasonably request; and not file any such Registration Statement or Prospectus or any
amendment or supplement to any such Registration Statement or Prospectus (including all such
documents incorporated by reference) to which an Initial Purchaser of Transfer Restricted
Securities covered by such Registration Statement or the underwriter(s), if any, shall
reasonably object in writing within two Business Days after the receipt thereof (such
objection to be deemed timely made upon confirmation of telecopy transmission within such
period); provided, that this clause (iv) shall not apply to any filing by the Company of any
annual report on Form 10-K, quarterly report on Form 10-Q or Current Report on Form 8-K with
respect to matters unrelated to the Securities and the offering or exchange therefor.

     (v) in the case of a Shelf Registration Statement, make available during normal
business hours for inspection by the Initial Purchasers, the managing underwriter(s), if

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any, participating in any disposition pursuant to such Shelf Registration Statement and
any attorney or accountant retained by the Initial Purchasers or any of the underwriter(s),
all financial and other records, pertinent corporate documents and properties of each of the
Issuers and the Guarantors and cause the Issuers’ and the Guarantors’ officers, directors
and employees to supply all information reasonably requested by any such Holder,
underwriter, attorney or accountant in connection with such Shelf Registration Statement or
any post-effective amendment thereto subsequent to the filing thereof and prior to its
effectiveness and to participate in meetings with investors to the extent requested by the
managing underwriter(s), if any;

     (vi) in the case of a Shelf Registration Statement, if requested by any Holder,
promptly incorporate in such Prospectus, pursuant to a supplement, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have included therein,
including, without limitation, information relating to the “Plan of Distribution” of
the Transfer Restricted Securities, information with respect to the principal amount of
Transfer Restricted Securities being sold to such underwriter(s), the purchase price being
paid therefor and any other terms of the offering of the Transfer Restricted Securities to
be sold in such offering; and make all required filings of such Prospectus supplement as
soon as practicable after the Company is notified of the matters to be incorporated in such
Prospectus supplement;

     (vii) in the case of a Shelf Registration Statement, furnish to each Initial
Purchaser, each selling Holder and each of the underwriter(s), if any, without charge, at
least one copy of such Shelf Registration Statement, as first filed with the Commission, and
of each amendment thereto, including, if they so request, financial statements and
schedules, all documents incorporated by reference therein and all exhibits (including
exhibits incorporated therein by reference);

     (viii) deliver to each selling Holder and each of the underwriter(s), if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; each of the Issuers
and the Guarantors hereby consents to the use of the Prospectus and any amendment or
supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in
connection with the offering and the sale of the Transfer Restricted Securities covered by
the Prospectus or any amendment or supplement thereto;

     (ix) enter into such agreements (including an underwriting agreement), and make such
representations and warranties, and take all such other actions in connection therewith in
order to expedite or facilitate the disposition of the Transfer Restricted Securities
pursuant to any Shelf Registration Statement contemplated by this Agreement, all to such
extent as may be requested by any Initial Purchaser or by any Holder of Transfer Restricted
Securities or underwriter in connection with any sale or resale pursuant to any Shelf
Registration Statement contemplated by this Agreement; and whether or not an underwriting
agreement is entered into and whether or not the registration is an Underwritten
Registration, each of the Issuers and the Guarantors shall:

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     (A) furnish to each Initial Purchaser, each selling Holder and each
underwriter, if any, in such substance and scope as they may request and as are
customarily made by issuers to underwriters in primary underwritten offerings, upon
the effectiveness of the Shelf Registration Statement:

     (1) a certificate, dated the date of effectiveness of the Shelf
Registration Statement signed by (y) any two authorized officers of the
Issuers and (z) a principal financial or accounting officer of each of the
Issuers and the Guarantors, confirming, as of the date thereof, the matters
set forth in paragraphs (i), (ii) and (iii) of Section 6(g) of the Purchase
Agreement and such other matters as such parties may reasonably request;

     (2) an opinion, dated the date of effectiveness of the Shelf
Registration Statement of counsel for the Issuers and the Guarantors,
covering the relevant matters set forth in Section 6(d) and (e) of the
Purchase Agreement and such other matter as such parties may reasonably
request, and in any event including a statement to the effect that such
counsel has participated in conferences with officers and other
representatives of the Issuers and the Guarantors, representatives of the
independent public accountants for the Issuers and the Guarantors,
representatives of the underwriter(s), if any, and counsel to the
underwriter(s), if any, in connection with the preparation of such
Registration Statement and the related Prospectus at which the content of
the Registration Statement and Prospectus were discussed and, although such
counsel has not independently verified the accuracy, completeness or
fairness of such statements contained in the Registration Statement and
Prospectus; and that such counsel advises that, on the basis of the
foregoing, no facts came to such counsel’s attention that caused such
counsel to believe that the Shelf Registration Statement, at the time such
Registration Statement or any post-effective amendment thereto became
effective contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or that the Prospectus contained in such
Registration Statement as of its date contained an untrue statement of a
material fact or omitted to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they
were made, not misleading. Without limiting the foregoing, such counsel may
state further that such counsel assumes no responsibility for, and has not
independently verified, the accuracy, completeness or fairness of the
financial statements, notes and schedules and other financial or statistical
data included in any Shelf Registration Statement contemplated by this
Agreement or the related Prospectus; and

     (3) a customary comfort letter, dated the date of effectiveness of the
Shelf Registration Statement, from the Company’s independent accountants, in
the customary form and covering matters of the type customarily requested to
be covered in comfort letters by underwriters in

11

 

connection with primary underwritten offerings, and covering or
affirming the matters set forth in the comfort letters delivered pursuant to
Section 6(a) of the Purchase Agreement, without exception;

     (B) set forth in full or incorporate by reference in the underwriting
agreement, if any, the indemnification provisions and procedures of Section 8 hereof
with respect to all parties to be indemnified pursuant to said Section; and

     (C) deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with Section 6(c)(ix)(A) hereof and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Issuers or any of the Guarantors pursuant to this
Section 6(c)(ix), if any.

     If at any time the representations and warranties of the Issuers and the Guarantors
contemplated in Section 6(c)(ix)(A)(1) hereof cease to be true and correct, the Issuers or
the Guarantors shall so advise the Initial Purchasers and the underwriter(s), if any, and
each selling Holder promptly and, if requested by such Persons, shall confirm such advice in
writing;

     (x) prior to any public offering of Transfer Restricted Securities pursuant to a Shelf
Registration Statement, cooperate with the selling Holders, the underwriter(s), if any, and
their respective counsel in connection with the registration and qualification of the
Transfer Restricted Securities under the state securities or blue sky laws of such
jurisdictions as the selling Holders or underwriter(s), if any, may request and do any and
all other acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration
Statement; provided, however, that none of the Issuers or the Guarantors shall be required
to register or qualify as a foreign corporation where it is not then so qualified or to take
any action that would subject it to the service of process in suits or to taxation in any
jurisdiction where it is not then so subject;

     (xi) issue, upon the request of any Holder of Initial Securities covered by the Shelf
Registration Statement, Exchange Securities having an aggregate principal amount equal to
the aggregate principal amount of Initial Securities surrendered to the Issuers by such
Holder in exchange therefor or being sold by such Holder; such Exchange Securities, if in
certificated form, to be registered in the name of such Holder or in the name of the
purchaser(s) of such Securities, as the case may be; in return, the Initial Securities held
by such Holder, if in certificated form, shall be surrendered to the Issuers for
cancellation;

     (xii) cooperate with the selling Holders and the underwriter(s), if any, to facilitate
the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names as the
Holders or the underwriter(s), if any, may request at least two Business Days prior to any
sale of Transfer Restricted Securities made by such Holders or underwriter(s);

12

 

     (xiii) use its reasonable best efforts to cause the Transfer Restricted Securities covered by the Registration Statement to be registered with or approved by such domestic other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter(s), if any, to consummate the disposition of such Transfer Restricted Securities, subject to the proviso contained in Section 6(c)(x) hereof;

     (xiv) if any fact or event contemplated by Section 6(c)(ii)(D) hereof shall exist or have occurred, prepare a supplement or post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

     (xv) provide a CUSIP number for all Securities not later than the effective date of the Registration Statement covering such Securities and provide the Trustee under the Indenture with certificates for such Securities which are in a form eligible for deposit with The Depository Trust Company and take all other action necessary to ensure that all such Securities are eligible for deposit with The Depository Trust Company;

     (xvi) cooperate and assist in any filings required to be made with the NASD and in the performance of any due diligence investigation by any underwriter (including any “qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of the NASD;

     (xvii) otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its security holders, as soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158 (which need not be audited) for the twelve-month period (A) commencing at the end of any fiscal quarter in which Transfer Restricted Securities are sold to underwriters in a firm commitment or best efforts Underwritten Offering or (B) if not sold to underwriters in such an offering, beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the Registration Statement;

     (xviii) cause the Indenture to be qualified under the Trust Indenture Act not later than the effective date of the first Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of Securities to effect such changes to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and to execute and use its reasonable best efforts to cause the Trustee to execute, all documents that may be required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner; and

     (xix) cause all Securities covered by the Registration Statement to be listed on each securities exchange or automated quotation system on which similar securities issued by the Company are then listed if requested by the Holders of a majority in aggregate principal amount of Initial Securities or the managing underwriter(s), if any.

13

 

     Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of any
notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D)
hereof or any Blackout Period described in Section 4(a) hereof, such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the applicable Registration
Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 6(c)(xiv) hereof, or until it is advised in writing (the “Advice”)
by the Company that the use of the Prospectus may be resumed, and has received copies of any
additional or supplemental filings that are incorporated by reference in the Prospectus. If so
directed by the Company, each Holder will deliver to the Issuers (at the Company’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of receipt of such
notice. In the event the Company shall give any such notice, the time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable,
shall be extended by the number of days during the period from and including the date of the giving
of such notice pursuant to Section 6(c)(iii)(D) hereof or notice of any Blackout Period to and
including the date when each selling Holder covered by such Registration Statement shall have
received the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xiv)
hereof or shall have received the Advice.

     Section 7. Registration Expenses.

     (a) All expenses incident to the Issuers’ and the Guarantors’ performance of or compliance
with this Agreement will be borne by the Issuers and the Guarantors, jointly and severally,
regardless of whether a Registration Statement becomes effective, including, without limitation:
(i) all registration and filing fees and expenses (including filings made by any Initial Purchaser
or Holder with the NASD (and, if applicable, the fees and expenses of any “qualified independent
underwriter” and its counsel that may be required by the rules and regulations of the NASD)); (ii)
all fees and expenses of compliance with federal securities and state securities or blue sky laws;
(iii) all expenses of printing (including printing certificates for the Exchange Securities to be
issued in the Exchange Offer and printing of Prospectuses), messenger and delivery services and
telephone; (iv) all fees and disbursements of counsel for the Issuers, the Guarantors and, subject
to Section 7(b) hereof, the Holders of Transfer Restricted Securities; (v) all application and
filing fees in connection with listing the Exchange Securities on a securities exchange or
automated quotation system pursuant to the requirements thereof; (vi) all fees and disbursements of
independent certified public accountants of the Issuers and the Guarantors (including the expenses
of any special audit and comfort letters required by or incident to such performance) and (vii) all
fees and disbursements of the Trustee and its counsel.

     Each of the Issuers and the Guarantors will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses of any annual audit and the fees and expenses of any
Person, including special experts, retained by the Issuers or the Guarantors.

     (b) In connection with any Registration Statement required by this Agreement (including,
without limitation, the Exchange Offer Registration Statement and the Shelf Registration
Statement), the Issuers and the Guarantors, jointly and severally, will reimburse the Initial
Purchasers and the Holders of Transfer Restricted Securities being tendered in the

14

 

Exchange Offer and/or resold pursuant to the “Plan of Distribution” contained in the Exchange
Offer Registration Statement or registered pursuant to the Shelf Registration Statement, as
applicable, for the reasonable fees and disbursements of not more than one counsel, who shall be
Baker Botts L.L.P. or such other counsel as may be chosen by the Holders of a majority in principal
amount of the Transfer Restricted Securities for whose benefit such Registration Statement is being
prepared.

     Section 8. Indemnification.

     (a) The Issuers and the Guarantors, jointly and severally, agree to indemnify and hold
harmless (i) each Holder and (ii) each Person, if any, who controls (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) any such Holder (any of the Persons
referred to in this clause (ii) being hereinafter referred to as a “controlling person”)
and (iii) the respective officers, directors, partners, employees, representatives and agents of
any Holder or any controlling person (any Person referred to in clause (i), (ii) or (iii) may
hereinafter be referred to as an “Indemnified Holder”), to the fullest extent lawful, from
and against any and all losses, claims, damages or liabilities (or actions in respect thereof)
(including, without limitation, and as incurred, reimbursement of each such Indemnified Holder for
any legal or other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action), joint or several, directly or
indirectly arising out of or based upon any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or Prospectus (or any amendment or supplement
thereto), or any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (with respect to the Prospectus, in the
light of the circumstances under which they were made) not misleading, except insofar as such
losses, claims, damages, liabilities or actions are caused by an untrue statement or omission or
alleged untrue statement or omission that is made in reliance upon and in conformity with
information relating to any of the Holders furnished in writing to the Company by any of the
Holders expressly for use therein. This indemnity agreement shall be in addition to any liability
that the Issuers or any of the Guarantors may otherwise have.

     In case any action or proceeding (including any governmental or regulatory investigation or
proceeding) shall be brought or asserted against any of the Indemnified Holders with respect to
which indemnity may be sought against any Issuer or Guarantor, such Indemnified Holder (or the
Indemnified Holder controlled by such controlling person) shall promptly notify the Issuers and the
Guarantors in writing; provided, however, that the failure to give such notice shall not relieve
any of the Issuers or the Guarantors of its obligations pursuant to this Agreement. Such
Indemnified Holder shall have the right to employ its own counsel in any such action and the fees
and expenses of such counsel shall be paid, as incurred, by the Issuers and the Guarantors
(regardless of whether it is ultimately determined that an Indemnified Holder is not entitled to
indemnification hereunder). The Issuers and the Guarantors shall not, in connection with any one
such action or proceeding or separate but substantially similar or related actions or proceedings
in the same jurisdiction arising out of the same general allegations or circumstances, be liable
for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to
any local counsel) at any time for such Indemnified Holders, which firm shall be designated by the
Holders. The Issuers and the Guarantors shall be liable for any settlement of any such action or
proceeding effected with the Issuers’ and the Guarantors’ prior written

15

 

consent, which consent shall not be withheld unreasonably, and each of the Issuers and the
Guarantors agrees to indemnify and hold harmless any Indemnified Holder from and against any loss,
claim, damage, liability or action by reason of any settlement of any action effected with the
written consent of the Issuers and the Guarantors. The Issuers and the Guarantors shall not,
without the prior written consent of each Indemnified Holder, settle or compromise or consent to
the entry of judgment in or otherwise seek to terminate any pending or threatened action, claim,
litigation or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not any Indemnified Holder is a party thereto), unless such settlement,
compromise, consent or termination includes an unconditional release of each Indemnified Holder
from all liability arising out of such action, claim, litigation or proceeding.

     (b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Issuers, the Guarantors and their respective directors, officers of
the Issuers and the Guarantors who sign a Registration Statement, and any Person controlling
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any
Issuer or any Guarantor, and the respective officers, directors, partners, employees,
representatives and agents of each such Person, to the same extent as the foregoing indemnity from
the Issuers and the Guarantors to each of the Indemnified Holders, but only with respect to claims
and actions based on information relating to such Holder furnished in writing by such Holder
expressly for use in any Registration Statement or Prospectus. In case any action or proceeding
shall be brought against the Issuers, the Guarantors or their respective directors or officers or
any such controlling person in respect of which indemnity may be sought against a Holder of
Transfer Restricted Securities, such Holder shall have the rights and duties given the Issuers and
the Guarantors, and the Issuers, the Guarantors, their respective directors and officers and such
controlling person shall have the rights and duties given to each Holder by the preceding
paragraph. This indemnity agreement shall be in addition to any liability that the Holders of
Transfer Restricted Securities may otherwise have.

     (c) If the indemnification provided for in this Section 8 is unavailable to an indemnified
party under Section 8(a) or (b) hereof (other than by reason of exceptions provided in those
Sections) in respect of any losses, claims, damages, liabilities or actions referred to therein,
then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities (including legal or other expenses reasonably incurred in connection
with investigating or defending same) in such proportion as is appropriate to reflect the relative
benefits received by the Issuers and the Guarantors, on the one hand, and the Holders, on the other
hand, from the Initial Placement, the amount of Additional Interest which did not become payable as
a result of the filing of the Registration Statement resulting in such losses, claims, damages,
liabilities or actions, and such Registration Statement, or if such allocation is not permitted by
applicable law, the relative fault of the Issuers and the Guarantors, on the one hand, and the
Holders, on the other hand, in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities or actions, as well as any other relevant equitable
considerations. The relative fault of the Issuers and the Guarantors on the one hand and of the
Indemnified Holder on the other shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Issuers or any of the Guarantors, on
the one hand, or the Indemnified Holders, on the other hand, and the parties’

16

 

relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities or actions referred to above shall be deemed to include, subject to the
limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or defending any action
or claim.

     The Issuers, the Guarantors and each Holder of Transfer Restricted Securities agree that it
would not be just and equitable if contribution pursuant to this Section 8(c) were determined by
pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable considerations referred to
in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, liabilities or actions referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 8, none of the Holders (and its related Indemnified Holders) shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the total discount
received by such Holder with respect to the Initial Securities exceeds the amount of any damages
which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to
contribute pursuant to this Section 8(c) are several in proportion to the respective principal
amount of Initial Securities held by each of the Holders hereunder and not joint.

     Section 9. Rule 144 and 144A Information. Each of the Issuers and the Guarantors
hereby agrees with each Holder, for so long as any Transfer Restricted Securities remain
outstanding, to make available to any Holder or beneficial owner of Transfer Restricted Securities
in connection with any sale thereof and any prospective purchaser of such Transfer Restricted
Securities from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under
the Securities Act in order to permit resales of such Transfer Restricted Securities pursuant to
Rule 144A under the Securities Act.

     Section 10. Participation in Underwritten Registrations. No Holder may participate
in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s
Transfer Restricted Securities on the basis provided in any underwriting arrangements approved by
the Persons entitled hereunder to approve such arrangements and (b) completes and executes all
reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up
letters and other documents required under the terms of such underwriting arrangements.

     Section 11. Selection of Underwriters. The Holders of Transfer Restricted
Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer
Restricted Securities in an Underwritten Offering. In any such Underwritten Offering, the
investment banker(s) and managing underwriter(s) that will administer such offering will be
selected by the Holders of a majority in aggregate principal amount of the Transfer Restricted

17

 

Securities included in such offering; provided, however, that such investment banker(s) and
managing underwriter(s) must be reasonably satisfactory to the Issuers.

     Section 12. Miscellaneous.

     (a) Remedies. Each of the Issuers and the Guarantors hereby agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b) No Inconsistent Agreements. Each of the Issuers and the Guarantors will not on or after
the date of this Agreement enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. Neither either Issuer nor any of the Guarantors has previously entered into
any agreement granting any registration rights with respect to its securities to any Person. The
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Issuers’ or any of the Guarantors’ securities under
any agreement in effect on the date hereof.

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions hereof may not be given
unless the Issuers have (i) in the case of Section 5 hereof and this Section 12(c)(i), obtained the
written consent of Holders of all outstanding Transfer Restricted Securities and (ii) in the case
of all other provisions hereof, obtained the written consent of Holders of a majority of the
outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted
Securities held by the Issuers or their respective affiliates). Notwithstanding the foregoing, a
waiver or consent to departure from the provisions hereof that relates exclusively to the rights of
Holders whose securities are being tendered pursuant to the Exchange Offer and that does not affect
directly or indirectly the rights of other Holders whose securities are not being tendered pursuant
to such Exchange Offer may be given by the Holders of a majority of the outstanding principal
amount of Transfer Restricted Securities being tendered or registered; provided, however, that,
with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Issuers shall obtain the written consent of each such Initial Purchaser with respect
to which such amendment, qualification, supplement, waiver, consent or departure is to be
effective.

     (d) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, telecopier, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the Registrar under the
Indenture, with a copy to the Registrar under the Indenture;

     (ii) if to the Issuers:

Copano Energy, L.L.C.

2727 Allen Parkway, Suite 1200

Houston, Texas 77019

18

 

Facsimile: 713.621.9545

Attention: Douglas L. Lawing

with a copy to:

Vinson & Elkins L.L.P.

2300 First City Tower

1001 Fannin Street

Houston, Texas 77002

Facsimile: 713.615.5861

Attention: David P. Oelman

and

          (iii) if to the Initial Purchasers:

Banc of America Securities LLC

40 West 57th Street

New York, NY 10019

Facsimile: (212) 901-7897

Attention: Legal Department

with a copy to:

Baker Botts L.L.P.

910 Louisiana

Houston, Texas 77002

Facsimile: 713.229.2727

Attention: Joshua Davidson

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if
telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

     Copies of all such notices, demands or other communications shall be concurrently delivered by
the Person giving the same to the Trustee at the address specified in the Indenture.

     (e) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including, without limitation, and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding upon a successor or
assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted
Securities from such Holder.

19

 

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF.

     (i) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     (j) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Issuers with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and understandings among the
parties with respect to such subject matter.

20

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	COPANO ENERGY, L.L.C.

 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial Officer 	 
	 
	 	COPANO ENERGY FINANCE CORPORATION

 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial Officer 	 
	 

	 	 	 
	 

	 	SCISSORTAIL ENERGY, LLC
	 

	 	COPANO ENERGY/ROCKY MOUNTAINS AND MID-CONTINENT, L.L.C.
	 

	 	COPANO PROCESSING GP, L.L.C.
	 

	 	COPANO NGL SERVICES GP, L.L.C.
	 

	 	COPANO FIELD SERVICES GP, L.L.C.
	 

	 	COPANO PIPELINES GP, L.L.C.
	 

	 	COPANO PIPELINES (TEXAS) GP, L.L.C.
	 

	 	COPANO ENERGY SERVICES GP, L.L.C.
	 

	 	COPANO ENERGY SERVICES (TEXAS) GP, L.L.C.
	 

	 	COPANO FIELD SERVICES/CENTRAL GULF COAST GP, L.L.C.
	 

	 	COPANO/WEBB-DUVAL PIPELINE GP, L.L.C.
	 

	 	CPNO SERVICES GP, L.L.C.
	 

	 	NUECES GATHERING, L.L.C.
	 

	 	ESTES COVE FACILITIES, L.L.C.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 

21

 

	 	 	 	 	 

	 	 	 
	 

	 	COPANO PROCESSING, L.P.
	 
	 	 
	 

	 	By: COPANO PROCESSING GP, L.L.C., General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	              /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO NGL SERVICES, L.P.
	 
	 	 
	 

	 	By: COPANO NGL SERVICES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	              /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO HOUSTON CENTRAL, L.L.C.
	 

	 	CHC LP HOLDINGS, L.L.C.
	 

	 	COPANO PIPELINES GROUP, L.L.C.
	 

	 	COPANO GENERAL PARTNERS, INC.
	 

	 	CPG LP HOLDINGS, L.L.C.
	 

	 	CWDPL LP HOLDINGS, L.L.C.
	 

	 	CPNO SERVICES LP HOLDINGS, L.L.C.

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ Susan T. Dubb
 	 
	 	 	Susan T. Dubb 	 
	 	 	Vice President and Assistant Secretary 	 

22

 

	 	 	 	 	 

	 	 	 
	 

	 	COPANO FIELD SERVICES/AQUA DULCE,
L.P.
	 

	 	COPANO FIELD SERVICES/COPANO BAY,
L.P.
	 

	 	COPANO FIELD SERVICES/KARNES, L.P.
	 

	 	COPANO FIELD SERVICES/LIVE OAK, L.P.
	 

	 	COPANO FIELD SERVICES/SOUTH TEXAS,
L.P.
	 

	 	COPANO FIELD SERVICES/UPPER GULF
COAST, L.P.

	 	 	 
	 

	 	By: COPANO FIELD SERVICES GP, L.LC.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO PIPELINES/HEBBRONVILLE, L.P.
	 

	 	COPANO PIPELINES/SOUTH TEXAS, L.P.
	 

	 	COPANO PIPELINES/UPPER GULF COAST,
L.P.

	 	 	 
	 

	 	By: COPANO PIPELINES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO PIPELINES/TEXAS GULF COAST,
L.P.
	 
	 	 
	 

	 	By: COPANO PIPELINES (TEXAS) GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 

23

 

	 	 	 	 	 

	 	 	 
	 

	 	COPANO FIELD SERVICES/CENTRAL GULF
COAST, L.P.
	 
	 	 
	 

	 	By: COPANO FIELD SERVICES/CENTRAL
GULF COAST GP, L.L.C., General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                         /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO ENERGY SERVICES/UPPER GULF
COAST, L.P.
	 
	 	 
	 

	 	By: COPANO ENERGY SERVICES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                             /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO ENERGY SERVICES/TEXAS GULF
COAST, L.P.
	 
	 	 
	 

	 	By: COPANO ENERGY SERVICES (TEXAS)
GP, L.L.C., General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                                   /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 

24

 

	 	 	 	 	 

	 	 	 
	 

	 	COPANO/WEBB-DUVAL PIPELINE, L.P.
	 
	 	 
	 

	 	By: COPANO/WEBB-DUVAL PIPELINE GP,
L.L.C., General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	               /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	CPNO SERVICES, L.P.
	 

	 	COPANO RISK MANAGEMENT, L.P.
	 
	 	 
	 

	 	By: CPNO SERVICES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                            /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 

25

 

	 	 	 	 	 

     The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date
first above written:

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE SECURITIES (USA) LLC

GOLDMAN, SACHS & CO.

LEHMAN BROTHERS INC.

COMERICA SECURITIES, INC.

FORTIS SECURITIES LLC

KEYBANC CAPITAL MARKETS, A DIVISION OF MCDONALD INVESTMENTS INC.

PIPER JAFFRAY & CO.

RBC CAPITAL MARKETS CORPORATION

SANDERS MORRIS HARRIS INC.

By: Banc of America Securities LLC

By:
 /s/ Lex Maultsby                                                                      

26

 

SCHEDULE A

GUARANTORS

	 	 	 
	 	 	Jurisdiction of
	Name	 	Formation
	Copano Pipelines Group, L.L.C.

	 	Delaware
	Copano Houston Central, L.L.C.

	 	Delaware
	Copano Energy/Rocky Mountains and Mid-Continent, L.L.C.

	 	Delaware
	ScissorTail Energy, LLC

	 	Delaware
	Copano Field Services/Copano Bay, L.P.

	 	Texas
	Copano Field Services/South Texas, L.P.

	 	Texas
	Copano Field Services/Agua Dulce, L.P.

	 	Texas
	Copano Field Services/Central Gulf Coast, L.P.

	 	Texas
	Copano Field Services/Karnes, L.P.

	 	Texas
	Copano Field Services/Upper Gulf Coast, L.P.

	 	Texas
	Copano Field Services/Live Oak, L.P.

	 	Texas
	Copano Pipelines/South Texas, L.P.

	 	Texas
	Copano Pipelines/Upper Gulf Coast, L.P.

	 	Texas
	Copano Pipelines/Hebbronville, L.P.

	 	Texas
	Copano Pipelines/Texas Gulf Coast, L.P.

	 	Texas
	Copano Energy Services/Upper Gulf Coast, L.P.

	 	Texas
	Copano Energy Services/Texas Gulf Coast, L.P.

	 	Texas
	Copano NGL Services, L.P.

	 	Texas
	Copano Processing, L.P.

	 	Texas
	Copano/Webb-Duval Pipeline, L.P.

	 	Delaware
	CPNO Services, L.P.

	 	Texas
	Copano Risk Management, L.P.

	 	Texas
	Copano Processing GP, L.L.C.

	 	Delaware
	Copano NGL Services GP, L.L.C.

	 	Delaware
	Copano Field Services GP, L.L.C.

	 	Delaware
	Copano Pipelines GP, L.L.C.

	 	Delaware
	Copano Pipelines (Texas) GP, L.L.C.

	 	Delaware
	Copano Energy Services GP, L.L.C.

	 	Delaware
	Copano Energy Services (Texas) GP, L.L.C.

	 	Delaware
	Copano Field Services/Central Gulf Coast GP, L.L.C.

	 	Delaware
	Copano Webb-Duval Pipeline GP, L.L.C.

	 	Delaware
	CHC LP Holdings, L.L.C.

	 	Delaware
	CPG LP Holdings, L.L.C.

	 	Delaware
	CWDPL LP Holdings, L.L.C.

	 	Delaware
	CPNO LP Holdings, L.L.C.

	 	Delaware
	CPNO Services LP Holdings, L.L.C.

	 	Delaware
	CPNO Services GP, L.L.C.

	 	Delaware
	Nueces Gathering, L.L.C.

	 	Delaware
	Estes Cove Facilities, L.L.C.

	 	Delaware
	Copano General Partners, Inc.

	 	Delawareexv10w1

 

Copano Energy, L.L.C.

Copano Energy Finance Corporation

and

The Guarantors Listed on Schedule A

$225,000,000

8.125% Senior Notes due 2016

PURCHASE AGREEMENT

dated January 31, 2006

Banc of America Securities LLC

Credit Suisse Securities (USA) LLC

Goldman, Sachs & Co.

Lehman Brothers Inc.

Comerica Securities, Inc.

Fortis Securities LLC

KeyBanc Capital Markets, a Division of McDonald Investments Inc.

Piper Jaffray & Co.

RBC Capital Markets Corporation

Sanders Morris Harris Inc.

 

 

PURCHASE AGREEMENT

January 31, 2006

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE SECURITIES (USA) LLC

GOLDMAN, SACHS & CO.

LEHMAN BROTHERS INC.

COMERICA SECURITIES, INC.

FORTIS SECURITIES LLC

KEYBANC CAPITAL MARKETS, A DIVISION OF MCDONALD INVESTMENTS INC.

PIPER JAFFRAY & CO.

RBC CAPITAL MARKETS CORPORATION

SANDERS MORRIS HARRIS INC.

     As Initial Purchasers

c/o Banc of America Securities LLC

9 West 57th Street

New York, New York 10019

Ladies and Gentlemen:

     Introductory. Copano Energy, L.L.C., a Delaware limited liability company (the “Company”),
and Copano Energy Finance Corporation, a Delaware corporation (“FinCo”), propose to issue and sell
to the several Initial Purchasers named below (the “Initial Purchasers”), acting severally and not
jointly, the respective amounts set forth in such Schedule B of $225,000,000 aggregate principal
amount of the Company’s and FinCo’s 8.125% Senior Notes due 2016 (the “Notes”). The Company and
FinCo are referred to collectively as the “Issuers.” Banc of America Securities LLC, Credit Suisse
Securities (USA) LLC, Goldman, Sachs & Co., Lehman Brothers Inc., Comerica Securities, Inc., Fortis
Securities LLC, KeyBanc Capital Markets, a Division of McDonald Investments Inc., Piper Jaffray &
Co., RBC Capital Markets Corporation and Sanders Morris Harris Inc. have agreed to act as the
several Initial Purchasers in connection with the offering and sale of the Notes.

     The Securities (as defined below) will be issued pursuant to an indenture (the “Indenture”),
to be dated as of the Closing Date (as defined in Section 2 hereof), among the Company, FinCo, the
Guarantors (as defined below) and U.S. Bank National Association, as trustee (the “Trustee”).
Notes will be issued only in book-entry form in the name of Cede & Co., as nominee of The
Depository Trust Company (the “Depositary”) pursuant to a letter of representations, to be dated on
or before the Closing Date (the “DTC Agreement”), among the Company, FinCo, the Guarantors, the
Trustee and the Depositary.

     The holders of the Notes will be entitled to the benefits of a registration rights agreement,
to be dated as of the Closing Date (the “Registration Rights Agreement”), among the Company, FinCo,
the Guarantors and the Initial Purchasers, pursuant to which the Company, FinCo and the Guarantors
will agree to file with the Commission (as defined below), under the circumstances set forth
therein, (i) a registration statement under the Securities Act (as defined

1

 

below) relating to another series of debt securities of the Company and FinCo and another set
of guarantees of the Guarantors, each respectively with terms substantially identical to the Notes
(the “Exchange Notes”) and the Guarantees (the “Exchange Guarantees”) to be offered in exchange for
the Notes and the Guarantees (the “Exchange Offer”) and (ii) to the extent required by the
Registration Rights Agreement, a shelf registration statement pursuant to Rule 415 of the
Securities Act relating to the resale by certain holders of the Notes, and in each case, to use its
reasonable best efforts to cause such registration statements to be declared effective.

     The payment of principal of, premium and Additional Interest (as defined in the Indenture), if
any, and interest on the Notes and the Exchange Notes will be fully and unconditionally guaranteed
on a senior unsecured basis, jointly and severally by (i) the guarantors listed in Schedule A
hereto and (ii) any subsidiary of the Company formed or acquired after the Closing Date that
executes an additional guarantee in accordance with the terms of the Indenture, and their
respective successors and assigns (such persons referred to in clauses (i )and (ii) are
collectively referred to as the “Guarantors”), pursuant to their guarantees (the “Guarantees”).
The Notes and the Guarantees attached thereto are herein collectively referred to as the
“Securities,” and the Exchange Notes and the Guarantees attached thereto are herein collectively
referred to as the “Exchange Securities.”

     The Issuers and the Guarantors are referred to collectively as the “Copano Parties.” The
Copano Parties (excluding the Company), together with Webb/Duval Gatherers, a Texas general
partnership (“Webb/Duval”), and Southern Dome LLC, a Delaware limited liability company (“Southern
Dome”), are referred to collectively as the “Subsidiaries”)

     The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and in the Offering Memorandum (as
defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the “Subsequent Purchasers”) at any
time after the date of this Agreement. The Securities are to be offered and sold to or through the
Initial Purchasers without being registered with the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933 (as amended, the “Securities Act,” which term, as
used herein, includes the rules and regulations of the Commission promulgated thereunder), in
reliance upon exemptions therefrom. Pursuant to the terms of the Securities and the Indenture,
investors who acquire Securities shall be deemed to have agreed that Securities may only be resold
or otherwise transferred, after the date hereof, if such Securities are registered for sale under
the Securities Act or if an exemption from the registration requirements of the Securities Act is
available (including the exemptions afforded by Rule 144A under the Securities Act (“Rule 144A”)
and Regulation S under the Securities Act (“Regulation S”)).

     In connection with the sale of the Securities, the Company has prepared a Preliminary Offering
Memorandum, dated January 20, 2006 (the “Preliminary Offering Memorandum”), and has prepared a
Pricing Supplement (the “Pricing Supplement”), dated January 31, 2006, describing the terms of the
Securities, each for use by the Initial Purchasers in connection with its solicitation of offers to
purchase the Securities. As used herein, “Offering Memorandum” shall mean the Preliminary Offering
Memorandum, as supplemented by the Pricing Supplement and any exhibits thereto, in the most recent
form that has been prepared and delivered to the Initial Purchasers in connection with their
solicitation of offers to purchase Securities prior to

2

 

1:00 p.m. Eastern Time on the date of this Agreement (the “Time of Execution”). Promptly
after the Time of Execution, the Company shall deliver or cause to be delivered copies, in such
quantities and at such places as the Initial Purchasers shall reasonably request, of the Final
Offering Memorandum (the “Final Offering Memorandum”), which will consist of the Preliminary
Offering Memorandum with only such changes thereto as are required to reflect the information
contained in the Pricing Supplement and such other changes as the Company reasonably deems
appropriate following notice to the Initial Purchasers or their legal counsel, and from and after
the time the Final Offering Memorandum is delivered as set forth in this sentence, all references
herein to the Offering Memorandum shall be deemed to be a reference to the Preliminary Offering
Memorandum, the Pricing Supplement and the Final Offering Memorandum.

     SECTION 1. Representations and Warranties. Each of the Issuers and the Guarantors, jointly
and severally, hereby represents and warrants to each Initial Purchaser as set forth below in this
Section 1:

     (a) No Registration Required. None of the Copano Parties, nor any person acting on its or
their behalf has, directly or indirectly, made offers or sales of any security, or solicited offers
to buy any security, under circumstances that would require the registration of the Securities
under the Securities Act.

     (b) No General Solicitation. None of the Copano Parties, nor any person acting on its or
their behalf has engaged in any form of general solicitation or general advertising (within the
meaning of Rule 502(c) under the Securities Act) in connection with any offer or sale of the
Securities in the United States.

     (c) Rule 144A Eligibility. The Securities satisfy the eligibility requirements of Rule
144A(d)(3) under the Securities Act.

     (d) Regulation S Sales. None of the Copano Parties, nor any person acting on its or their
behalf, has engaged in any directed selling efforts with respect to the Securities, and each of
them has complied with the offering restrictions requirement of Regulation S. Terms used in this
paragraph have the meanings given to them by Regulation S.

     (e) Sales of Securities. None of the Copano Parties has paid or agreed to pay to any person
any compensation for soliciting another to purchase any Securities (except as contemplated by this
Agreement).

     (f) No Stabilization Activities. None of the Copano Parties has taken, directly or
indirectly, any action designed to cause or which has constituted or which might reasonably be
expected to cause or result, under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) or otherwise, in the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Securities.

     (g) The Offering Memorandum. As of the Time of Execution, the Offering Memorandum does not,
and at the Closing Date will not, contain an untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided, however, that the

3

 

Copano Parties make no representation or warranty as to statements contained in or omitted
from the Preliminary Offering Memorandum or the Offering Memorandum, or any amendment or supplement
thereto, in reliance upon and in conformity with information furnished to the Company in writing by
any Initial Purchaser through Banc of America Securities LLC expressly for use in the Preliminary
Offering Memorandum or the Offering Memorandum, or any amendment or supplement thereto.

     (h) The Purchase Agreement. This Agreement has been duly authorized and validly executed and
delivered by each of the Copano Parties.

     (i) The Registration Rights Agreement. The Registration Rights Agreement has been duly
authorized and, when executed and delivered by the Copano Parties party thereto, will have been
validly executed and delivered by those Copano Parties, and, assuming due authorization, execution
by each of the Initial Purchasers or other parties thereto, will constitute a valid and binding
agreement enforceable against each of the Copano Parties party thereto in accordance with its
terms; provided, that such enforceability may be limited by (i) bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting
creditors’ rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (ii) public policy,
applicable law relating to fiduciary duties and indemnification and an implied covenant of good
faith and fair dealing and except as rights to indemnification under the Registration Rights
Agreement may be limited by applicable law.

     (j) The Notes, the Guarantees, the Exchange Notes and the Exchange Guarantees.

          (i) The Notes have been duly authorized for issuance and sale to the Initial Purchasers
pursuant to this Agreement and the Indenture and, when executed and authenticated in the manner
provided for in the Indenture and this Agreement and delivered against payment of the purchase
price therefor, will have been validly executed by the Issuers and will constitute valid and
binding obligations of the Issuers entitled to the benefits of the Indenture, enforceable against
each of them in accordance with their terms; provided, that such enforceability may be
limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar
laws relating to or affecting creditors’ rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law) and
(ii) public policy, applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.

          (ii) The Exchange Notes have been duly authorized for issuance by the Company and FinCo and,
when issued by the Issuers and authenticated by the Trustee in accordance with the terms of the
Indenture, the Registration Rights Agreement and the Exchange Offer, will constitute valid and
binding obligations of the Issuers, enforceable against each of them in accordance with their
terms; provided, that such enforceability may be limited by (i) bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting
creditors’ rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and (ii) public policy,
applicable law relating to fiduciary duties and indemnification and an implied covenant of good
faith and fair dealing and will be entitled to the benefits of the Indenture.

4

 

          (iii) The Guarantees of the Notes and the Exchange Guarantees of the Exchange Notes have been
duly authorized for issuance and sale pursuant to this Agreement and the Indenture and, at the
Closing Date, the Guarantee of the Notes will have been validly executed by each of the Guarantors
and, when the Notes and the Exchange Notes have been authenticated by the Trustee in the manner
provided for in the Indenture and delivered by the Issuers against payment of the purchase price
therefor, will constitute valid and binding obligations of the Guarantors, enforceable against the
Guarantors in accordance with their terms; provided, that such enforceability may be
limited by (i) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar
laws relating to or affecting creditors’ rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law) and
(ii) public policy, applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.

     (k) The Indenture. The Indenture has been duly authorized by each of the Copano Parties and,
at the Closing Date, will have been validly executed and delivered by each of the Copano Parties
and, assuming due authorization, execution and delivery by the Trustee, will constitute a valid and
binding agreement of each of the Copano Parties, enforceable against each of them in accordance
with its terms; provided, that such enforceability may be limited by (i) bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or
affecting creditors’ rights generally and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law) and (ii) public policy,
applicable law relating to fiduciary duties and indemnification and an implied covenant of good
faith and fair dealing. The Indenture conforms in all material respects to the requirements of the
Trust Indenture Act applicable to an indenture that is qualified thereunder.

     (l) Description of the Securities and the Indenture. The Securities, the Exchange Securities,
the Indenture and the Registration Rights Agreement do or will, as applicable, conform in all
material respects to the respective statements relating thereto contained in the Offering
Memorandum.

     (m) No Material Adverse Change. Except as otherwise disclosed in the Offering Memorandum,
subsequent to the respective dates as of which information is given in the Offering Memorandum, (i)
there has been no material adverse change, or any development that could reasonably be expected to
result in a material adverse change, in the condition, financial or otherwise, or in the earnings,
business, prospects or operations, whether or not arising from transactions in the ordinary course
of business, of the Company and its subsidiaries, considered as one entity (any such change is a
“Material Adverse Change”) and (ii) the Company and its subsidiaries, considered as one entity,
have not incurred any material liability or obligation, indirect, direct or contingent, not in the
ordinary course of business nor entered into any material transaction not in the ordinary course of
business.

     (n) Independent Registered Public Accounting Firm – Deloitte. Deloitte & Touche LLP, which
expressed its opinion with respect to certain financial statements included in the Offering
Memorandum, is an independent registered public accounting firm within the meaning of Regulation
S-X under the Securities Act and the Exchange Act.

5

 

     (o) Independent Registered Public Accounting Firm – Grant Thornton. Grant Thornton LLP, which
expressed its opinion with respect to certain financial statements of ScissorTail Energy LLC, a
Delaware limited liability company (“ScissorTail”), included in the Offering Memorandum, is an
independent registered public accounting firm within the meaning of Regulation S-X under the
Securities Act and the Exchange Act.

     (p) Preparation of the Financial Statements. The historical consolidated financial statements
(including the related notes and supporting schedules) included in the Offering Memorandum (and any
amendment or supplement thereto) present fairly in all material respects the financial condition
and results of operations of the entities purported to be shown thereby on the basis stated
therein, at the dates and for the periods indicated, and have been prepared in conformity with
generally accepted accounting principles applied on a consistent basis throughout the periods
involved. The summary historical and pro forma consolidated financial and operating information
included in the Offering Memorandum (and any amendment or supplement thereto) under the caption
“Summary Unaudited Pro Forma Consolidated Financial Data” and the selected historical and pro forma
consolidated financial and operating information set forth under the captions “Unaudited Pro Forma
Consolidated Financial Data” and “Selected Historical Consolidated Financial and Operating Data” is
presented fairly in all material respects and prepared on a basis consistent with the audited and
unaudited historical consolidated financial statements and pro forma financial statements, as
applicable, from which it has been derived. The unaudited pro forma financial statements included
in the Offering Memorandum (and any amendment or supplement thereto) have been prepared in all
material respects in accordance with the applicable requirements of Article 11 of Regulation S-X of
the Securities Act; the assumptions used in the preparation of such unaudited pro forma financial
statements are, in the opinion of the management of the Company, reasonable; and the pro forma
adjustments reflected in such unaudited pro forma financial statements have been properly applied
to the historical amounts in compilation of such unaudited pro forma financial statements.

     (q) Formation and Qualification. Each of the Company and the Subsidiaries has been duly
formed and is validly existing in good standing under the laws of their respective jurisdiction of
formation, and is duly registered or qualified to do business and is in good standing as a foreign
corporation, limited liability company, limited partnership or general partnership, as the case may
be, in each jurisdiction in which its ownership or lease of property or the conduct of its
businesses requires such registration or qualification, except where the failure so to register or
qualify would not result in a Material Adverse Change. Each of the Company and the Subsidiaries
has all corporate, limited liability company, limited partnership or general partnership, as the
case may be, power and authority necessary to own or lease its properties currently owned or leased
or to be owned or leased on the Closing Date and to conduct its business as currently conducted or
to be conducted on the Closing Date, in each case in all material respects as described in the
Offering Memorandum.

     (r) Ownership of FinCo. The Company owns 100% of the issued and outstanding capital stock of
FinCo; such capital stock has been duly authorized and validly issued in accordance with the
certificate of incorporation and bylaws of FinCo, as amended to date (the “FinCo Organizational
Documents”) and is fully paid and nonassessable; and the Company owns such capital stock free and
clear of all liens, encumbrances, security interests, equities,

6

 

charges and other claims except for liens created pursuant to the Credit Agreement dated as of
August 1, 2005 among Copano, as the Borrower, Bank of America, N.A., as Administrative Agent and
L/C Issuer, Comerica Bank and U.S. Bank National Association, as Co-Syndication Agents, Bank of
Scotland and Fortis Capital Corp., as Co-Documentation Agents, and the other lenders party thereto
and Banc of America Securities LLC, as Sole Lead Arranger and Sole Book Manager, or the Bridge Loan
Agreement dated as of August 1, 2005 among Copano, as the Borrower, Banc of America Bridge LLC, as
Administrative Agent and the other lenders party thereto and Banc of America Securities LLC, as
Sole Lead Arranger and Sole Book Manager (collectively, the “Credit Agreements”).

     (s) Ownership of Subsidiaries. The Company directly or indirectly owns 100% of the membership
interests or partnership interests, as the case may be, of each Subsidiary (excluding Webb/Duval
and Southern Dome, as to which the Company owns a 62.5% partnership interest and a 73.0% limited
liability company interest, respectively) free and clear of all liens, encumbrances, security
interests, equities, charges and other claims except for liens created pursuant to the Credit
Agreements. Such limited liability company interests or partnership interests, as the case may be,
of each Subsidiary have been duly authorized and validly issued and are fully paid (to the extent
required under such Subsidiary’s applicable constituent documents) and non-assessable (except as
such nonassessability may be affected by: (A) Section 18-607 of the Delaware Limited Liability
Company Act (the “Delaware LLC Act”), in the case of a Delaware limited liability company, (B)
Section 17-607 of the Delaware Revised Uniform Limited Partnership Act (the “Delaware LP Act”), in
the case of a Delaware limited partnership, (C) Sections 3.03, 5.02 and 6.07 of the Texas Revised
Uniform Limited Partnership Act (the “Texas LP Act”), in the case of a Texas limited partnership,
or (D) Sections 5.09 of the Texas Limited Liability Company Act (the “Texas LLC Act”), in the case
of a Texas limited liability company.

     (t) No Other Subsidiaries. Other than its ownership interests in the Subsidiaries, the
Company does not own and at the Closing Date will not own, directly or indirectly, any equity or
long-term debt securities of any corporation, partnership, limited liability company, joint
venture, association or other entity that, individually or in the aggregate, would be deemed to be
a “significant subsidiary” as such term is defined in Rule 405 of the Securities Act.

     (u) Capitalization. As of September 30, 2005, the Company would have had, on the consolidated
pro forma basis indicated in the Offering Memorandum (and any amendment or supplement thereto), a
capitalization as set forth therein.

     (v) Authority and Authorization. The Issuers have all requisite corporate or limited
liability company power and authority to issue, sell and deliver the Notes and the Exchange Notes,
and each Guarantor has all requisite corporate, limited liability company or limited partnership
power and authority to issue the Guarantees and the Exchange Guarantees. Each of the Copano
Parties has all requisite corporate, limited liability company or limited partnership power and
authority to enter into this Agreement, the Indenture and the Registration Rights Agreement and to
perform its respective obligations thereunder. At the Closing Date, all corporate, partnership and
limited liability company action, as the case may be, required to be taken by the Company and the
Subsidiaries or any of their owners, members or partners for the

7

 

authorization, issuance, sale and delivery of the Securities as contemplated by this Agreement
shall have been validly taken.

     (w) Enforceability of LLC Agreement. The Second Amended and Restated Limited Liability
Company Agreement dated November 15, 2004, as amended through the date hereof (the “Limited
Liability Company Agreement”) has been duly authorized and validly executed and delivered by
affiliates of the Company’s management and, assuming due authorization, execution and delivery by
the other parties thereto, is a valid and legally binding agreement of each of the parties thereto,
enforceable against each of them in accordance with its terms.

     (x) No Conflicts. None of the offering, issuance and sale of the Notes and the Guarantees by
the Issuers and the Guarantors, respectively, the execution, delivery and performance of the Notes,
the Guarantees, the Exchange Notes, the Exchange Guarantees, the Indenture, the Registration Rights
Agreement or this Agreement by the Copano Parties or the consummation of the transactions
contemplated hereby or thereby (i) conflicts or will conflict with or constitutes or will
constitute a violation of any of the certificate of formation, limited liability company agreement,
limited partnership agreement or other organizational documents, as applicable, of each of the
Company and the Subsidiaries (the “Copano Entity Operative Documents”), (ii) conflicts or will
conflict with or constitutes or will constitute a breach or violation of, or a default under (or an
event which, with notice or lapse of time or both, would constitute such a default), any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which any of the
Company or the Subsidiaries is a party or by which any of them or any of their respective
properties may be bound, (iii) violates or will violate any statute, law or regulation or any
order, judgment, decree or injunction of any court or governmental agency or body having
jurisdiction over any of the Company or the Subsidiaries or any of their properties in a proceeding
to which any of them or their property is or was a party or (iv) results or will result in the
creation or imposition of any lien, charge or encumbrance upon any property or assets of any of the
Company or the Subsidiaries (other than liens created pursuant to the Credit Agreements), which
conflicts, breaches, violations, defaults or liens, in the case of clauses (ii), (iii) or (iv),
would result, individually or in the aggregate, in a Material Adverse Change.

     (y) No Consents. Except for such consents, approvals, authorizations, orders, filings or
registrations as may be required (i) under applicable state securities laws in connection with the
purchase and resale of the Securities by the Initial Purchasers and (ii) with respect to the
Exchange Securities under the Securities Act, the Trust Indenture Act and applicable state
securities laws as contemplated by the Registration Rights Agreement, no consent, approval,
authorization or order of, or filing or registration with, any court or governmental agency or body
having jurisdiction over the Copano Parties or any of their respective properties is required in
connection with the offering, issuance and sale of the Securities by the Copano Parties in the
manner contemplated herein or in the Offering Memorandum, the execution, delivery and performance
of this Agreement, the Indenture, the Notes, the Guarantees and the Registration Rights Agreement
by the Copano Parties or the consummation by the Copano Parties of the transactions contemplated
hereby or thereby.

     (z) No Default. None of the Copano Parties (i) is in violation of its applicable Copano
Entity Operative Documents, (ii) is in default (and no event has occurred which, with

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notice or lapse of time or both, would constitute such a default) in the due performance or
observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which it is a party or by which it is bound or
to which any of its properties or assets is subject or (iii) is in violation of any law, statute,
ordinance, administrative or governmental rule or regulation applicable to it or of any order,
judgment, decree or injunction of any court or governmental agency or body having jurisdiction over
it, which default or violation in the case of clause (ii) or (iii), would, if continued, result in
a Material Adverse Change, or could materially impair the ability of any of the Company or the
Subsidiaries to perform their obligations under this Agreement, the Indenture or the Registration
Rights Agreement. To the knowledge of the Copano Parties without independent investigation, no
third party to any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which any of the Company or the Subsidiaries is a party or by which any of them is
bound or to which any of their properties is subject, is in default under any such agreement, which
default would, if continued, result in a Material Adverse Change.

     (aa) Litigation. Except as described in the Offering Memorandum, there is no action, suit or
proceeding before or by any court, arbitrator or governmental agency, body or official, domestic or
foreign, now pending or, to the knowledge of the Copano Parties, threatened, to which any of the
Copano Parties is or may be a party or to which the business or property of any of the Copano
Parties is or may be subject, that could reasonably be expected to result in a Material Adverse
Change or prevent the consummation of the transactions contemplated by this Agreement.

     (bb) No Labor Dispute. Except as disclosed in the Offering Memorandum, no labor dispute with
the employees of any Copano Party exists or, to the knowledge of the Copano Parties, is imminent or
threatened that is reasonably likely to result in a Material Adverse Change.

     (cc) Title to Real Property. Each Copano Entity has good and marketable title to all real
property and good title to all personal property described in the Offering Memorandum to be owned
by such Copano Entity free and clear of all (i) liens and security interests except liens or
security interests arising under or securing the Credit Agreements or (ii) other claims and other
encumbrances (other than liens or security interests) except, in each case, (1) as described, and
subject to the limitations contained, in the Offering Memorandum, (2) such as do not materially
affect the value of such property taken as a whole or (3) such as do not materially interfere with
the use of such properties taken as a whole as they have been used in the past and are proposed to
be used in the future as described in the Offering Memorandum; provided that, with respect
to any real property and buildings held under lease by any Copano Entity, such real property and
buildings are held under valid and subsisting and enforceable leases with such exceptions as do not
materially interfere with the use of the properties of the Company or the Subsidiaries taken as a
whole as they have been used in the past as described in the Offering Memorandum and are proposed
to be used in the future as described in the Offering Memorandum.

     (dd) Insurance. The Company and the Subsidiaries maintain insurance covering their
properties, operations, personnel and businesses against such losses and risks and in such amounts
as is reasonably adequate for the conduct of their respective businesses and the value of

9

 

their respective properties and as is customary for companies engaged in similar businesses in
similar industries. None of the Company or any Subsidiary has received notice from any insurer or
agent of such insurer that substantial capital improvements (relative to the Company and its
subsidiaries on a consolidated basis) or other substantial expenditures will have to be made in
order to continue such insurance, and all such insurance is outstanding and duly in force on the
date hereof and will be outstanding and duly in force on the Closing Date.

     (ee) Certain Relationships and Related Transactions. No relationship, direct or indirect,
exists between or among any Copano Entity, on the one hand, and the directors, officers, members,
partners, stockholders, customers or suppliers of any Copano Entity on the other hand that would be
required by the Securities Act to be described in a registration statement on Form S-1 that is not
so described in the Offering Memorandum. There are no outstanding loans, advances (except normal
advances for business expenses in the ordinary course of business) or guarantees of indebtedness by
any Copano Entity to or for the benefit of any of the officers or directors of any Copano Entity or
their respective family members, except as disclosed in the Offering Memorandum. No Copano Entity
has, in violation of the Sarbanes-Oxley Act of 2002, directly or indirectly, extended or maintained
credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a
personal loan to or for any director or executive officer of any Copano Entity.

     (ff) Sarbanes-Oxley Act of 2002. The Company and its officers and directors are in compliance
in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002 and the
rules and regulations thereunder.

     (gg) Tax Returns. Each of the Company and the Subsidiaries has filed (or has obtained
extensions with respect to) all material federal, state and local income and franchise tax returns
required to be filed through the date of this Agreement, which returns are correct and complete in
all material respects, and has timely paid all taxes due thereon, other than those (i) that are
being contested in good faith and for which adequate reserves have been established in accordance
with generally accepted accounting principles or (ii) that, if not paid, would not result in a
Material Adverse Change.

     (hh) Books and Records. Each Copano Entity (i) makes and keeps books and records which, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of assets and
(ii) maintains internal accounting controls sufficient to provide reasonable assurance that (A)
transactions are executed in accordance with management’s general or specific authorization, (B)
transactions are recorded as necessary to permit preparation of its financial statements in
conformity with generally accepted accounting principles and to maintain accountability for its
assets, (C) access to its assets is permitted only in accordance with management’s general or
specific authorization and (D) the reported accountability for its assets is compared with existing
assets at reasonable intervals and appropriate action is taken with respect to any differences.

     (ii) Disclosure Controls. The Company has established and maintains disclosure controls and
procedures (as such term is defined in Rule 13a-15 under the Exchange Act), which (i) are designed
to ensure that material information relating to the Company, including its consolidated
subsidiaries, is made known to the Company’s principal executive officer and its

10

 

principal financial officer by others within those entities, particularly during the periods
in which the periodic reports required under the Exchange Act are being prepared; (ii) have been
evaluated for effectiveness as of the end of the period covered by the Company’s most recent
quarterly report filed with the Commission; and (iii) are effective in all material respects to
perform the functions for which they were established.

     (jj) No Deficiency in Internal Controls. Based on the evaluation of its internal controls and
procedures as of the end of the period covered by the Company’s most recent quarterly report on
Form 10-Q filed with the Commission, the Company is not aware of (i) any significant deficiency in
the design or operation of internal controls which could adversely affect the Company’s ability to
record, process, summarize and report financial data or any material weaknesses in internal
controls; or (ii) any fraud, whether or not material, that involves management or other employees
who have a significant role in the Company’s internal controls.

     (kk) No Recent Changes to Disclosure Controls or Internal Controls. Since the end of the
period covered by the Company’s most recent quarterly report on Form 10-Q filed with the
Commission, there have been no significant changes in internal controls or in other factors that
could significantly affect internal controls, including any corrective actions with regard to
significant deficiencies and material weaknesses, except for improvements and new procedures
implemented as part of the Company’s review of its internal controls. Since that date, there have
been no changes in those internal controls over financial reporting that have materially affected,
or are reasonably likely to materially affect, the Company’s internal control over financial
reporting.

     (ll) Environmental Compliance. The Company and the Subsidiaries (i) are in compliance with
any and all applicable federal, state and local laws and regulations relating to the protection of
human health and safety and the environment or imposing liability or standards of conduct
concerning any Hazardous Materials (as defined below) (“Environmental Laws”), (ii) have received
all permits required of them under applicable Environmental Laws to conduct their respective
businesses, (iii) are in compliance with all terms and conditions of any such permits and (iv) do
not have any liability in connection with the release into the environment of any Hazardous
Material, except where such noncompliance with Environmental Laws, failure to receive required
permits, failure to comply with the terms and conditions of such permits or liability would not,
individually or in the aggregate, result in a Material Adverse Change. The term “Hazardous
Material” means (A) any “hazardous substance” as defined in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, (B) any “hazardous waste” as defined
in the Resource Conservation and Recovery Act, as amended, (C) any petroleum or petroleum product,
(D) any polychlorinated biphenyl and (E) any pollutant or contaminant or hazardous, dangerous or
toxic chemical, material, waste or substance regulated under any other Environmental Law.

     (mm) Permits. Each of the Company and the Subsidiaries has, or at the Closing Date will have
such permits, consents, licenses, franchises, certificates and authorizations of governmental or
regulatory authorities (“permits”) as are necessary to own its properties and to conduct its
business in the manner described in the Offering Memorandum, subject to such qualifications as may
be set forth in the Offering Memorandum and except for such permits which, if not obtained, would
not, individually or in the aggregate, result in a Material Adverse

11

 

Change; except as set forth in the Offering Memorandum, each of the Company and the
Subsidiaries has, or at the Closing Date will have, fulfilled and performed all its material
obligations with respect to such permits which are or will be due to have been fulfilled and
performed by such date and no event has occurred that would prevent the permits from being renewed
or reissued or which allows, or after notice or lapse of time would allow, revocation or
termination thereof or results in any impairment of the rights of the holder of any such permit,
except for such non-renewals, non-issues, revocations, terminations and impairments that would not,
individually or in the aggregate, result in a Material Adverse Change; and, except as described in
the Offering Memorandum, none of such permits contains, or at the Closing Date will contain, any
restriction that is materially burdensome to the Company and the Subsidiaries considered as a
whole.

     (nn) Investment Company; Public Utility Holding Company. None of the Company or the
Subsidiaries is now, and after the sale of the Notes to be sold by the Company hereunder and the
application of the net proceeds from such sale as described in the Offering Memorandum under the
caption “Use of Proceeds” will be, (i) an “investment company” or a company “controlled by” an
“investment company” within the meaning of the Investment Company Act of 1940, as amended or (ii) a
“public utility company,” a “holding company” or a “subsidiary company” of a “holding company” or
an “affiliate” thereof, under the Public Utility Holding Company Act of 1935, as amended.

     (oo) Forward-Looking Statements. No forward-looking statement (within the meaning of Rule 175
or Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in the
Preliminary Offering Memorandum and the Offering Memorandum has been made or reaffirmed without a
reasonable basis or has been disclosed other than in good faith.

     (pp) Statistical and Market Data. Nothing has come to the attention of the Company or the
Subsidiaries that has caused the Company or any Subsidiary to believe that the statistical and
market-related data included in the Preliminary Offering Memorandum and the Offering Memorandum is
not based on or derived from sources that are reliable and accurate in all material respects.

     Any certificate signed by an officer of any Copano Party and delivered to the Initial
Purchasers or to counsel for the Initial Purchasers shall be deemed to be a representation and
warranty by such Copano Party to each Initial Purchaser as to the matters set forth therein.

12

 

     SECTION 2. Purchase, Sale and Delivery of the Securities.

     (a) The Securities. Each of the Issuers and the Guarantors agrees to issue and sell to the
Initial Purchasers, severally and not jointly, all of the Securities, and the Initial Purchasers
agree, severally and not jointly, to purchase from the Issuers and the Guarantors the aggregate
principal amount of Securities set forth opposite their names on Schedule B, at a purchase price of
97.5% of the principal amount thereof payable on the Closing Date, in each case, on the basis of
the representations, warranties and agreements herein contained, and upon the terms, subject to the
conditions thereto, herein set forth.

     (b) The Closing Date. Delivery of certificates for the Securities in definitive form to be
purchased by the Initial Purchasers and payment therefor shall be made at the offices of Vinson &
Elkins L.L.P., 1001 Fannin Street, Houston, Texas 77002 (or such other place as may be agreed to by
the Company and Banc of America Securities LLC) at 9:00 a.m. New York City time, on February 7,
2006 or such other time and date as Banc of America Securities LLC shall designate by notice to the
Company (the time and date of such closing are called the “Closing Date”). The Company hereby
acknowledges that circumstances under which Banc of America Securities LLC may provide notice to
postpone the Closing Date as originally scheduled include, but are in no way limited to, any
determination by the Company or the Initial Purchasers to recirculate to investors copies of an
amended or supplemented Offering Memorandum or a delay as contemplated by the provisions of Section
17 hereof.

     (c) Delivery and Payment. The Company shall deliver, or cause to be delivered, to Banc of
America Securities LLC for the accounts of the several Initial Purchasers certificates for the
Notes at the Closing Date against the irrevocable release of a wire transfer of immediately
available funds for the amount of the purchase price therefor. The certificates for the Notes will
be evidenced by one or more global securities in definitive form and will be registered in the name
of Cede & Co., as nominee of the Depositary, pursuant to the DTC Agreement, and shall be made
available for inspection on the business day preceding the Closing Date at a location in New York
City, as Banc of America Securities LLC may designate. Time shall be of the essence, and delivery
at the time and place specified in this Agreement is a further condition to the obligations of the
Initial Purchasers.

     SECTION 3. Offering by Initial Purchasers. Each Initial Purchaser, severally and not jointly,
represents and warrants to and agrees with the Company that:

     (a) Offers to Qualified Institutional Buyers. It has not offered or sold, and will not offer
or sell, any Securities, except (i) within the United States, to those persons it reasonably
believes to be “qualified institutional buyers” within the meaning of Rule 144A under the Act (a
“Qualified Institutional Buyer”) and that, in connection with each such sale, it has taken or will
take reasonable steps to ensure that the purchaser of such Securities is aware that such sale is
being made in reliance on Rule 144A; or (ii) in accordance with the restrictions set forth in Annex
I hereto.

     (b) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally
and not jointly represents and warrants to, and agrees with, the Company that it is a Qualified
Institutional Buyer.

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     SECTION 4. Additional Covenants. Each of the Issuers and the Guarantors further covenants and
agrees with each Initial Purchaser as follows:

     (a) Initial Purchasers’ Review of Proposed Amendments and Supplements. Until the later of (x)
the completion of the placement of the Securities by the Initial Purchaser with the Subsequent
Purchasers and (y) the Closing Date, prior to amending or supplementing the Offering Memorandum,
the Company shall furnish to the Initial Purchasers for review a copy of each such proposed
amendment or supplement, and the Company shall not use any such proposed amendment or supplement to
which the Initial Purchasers reasonably object.

     (b) Notice to Company. The Company will advise the Initial Purchasers promptly (i) of the
issuance by any governmental or regulatory authority of any order preventing or suspending the use
of the Preliminary Offering Memorandum or the Offering Memorandum or the initiation or threatening
of any proceeding for that purpose; (ii) of the occurrence of any event at any time prior to the
completion of the initial offering of the Notes as a result of which the Offering Memorandum as
then amended or supplemented would include any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and (iii) of the receipt by any Copano
Entity of any notice with respect to any suspension of the qualification of the Notes for offer and
sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and
the Company and the Subsidiaries will use their reasonable best efforts to prevent the issuance of
any such order preventing or suspending the use of the Preliminary Offering Memorandum or the
Offering Memorandum or suspending any such qualification of the Securities and, if any such order
is issued, will use its reasonable best efforts to obtain as soon as possible the withdrawal
thereof.

     (c) Amendments and Supplements to the Offering Memorandum and Other Securities Act Matters.
If, prior to the completion of the placement of the Securities by the Initial Purchasers with the
Subsequent Purchasers, any event shall occur or condition exist as a result of which, in the
judgment of any of the Copano Parties or in the opinion of counsel for the Initial Purchasers, it
is necessary to amend or supplement the Offering Memorandum in order to make the statements
therein, in the light of the circumstances under which they are made, not misleading or it is
otherwise necessary to amend or supplement the Offering Memorandum to comply with law, the Company
agrees to promptly prepare (subject to Section 5 hereof) and furnish a reasonable number of copies
at its own expense to the Initial Purchasers amendments or supplements to the Offering Memorandum
so that the statements in the Offering Memorandum as so amended or supplemented will not, in the
light of the circumstances under which they are made, be misleading or so that the Offering
Memorandum, as amended or supplemented, will comply with all applicable law. Following the
consummation of the Exchange Offer or the effectiveness of an applicable shelf registration
statement and for so long as the Securities are outstanding if, in the judgment of the Initial
Purchasers, the Initial Purchasers or any of their Affiliates (as such term is defined in the
Securities Act) are required to deliver a prospectus in connection with sales of, or market-making
activities with respect to, the Securities, to periodically amend the applicable registration
statement so that the information contained therein complies with the requirements of Section 10 of
the Securities Act, to amend the applicable registration statement or supplement the related
prospectus or the documents incorporated therein when necessary to reflect any material changes in
the information provided therein so

14

 

that the registration statement and the prospectus will not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they are made, not misleading and to provide the
Initial Purchasers with copies of each amendment or supplement filed and such other documents as
the Initial Purchasers may reasonably request.

     The Company and the Initial Purchasers hereby expressly acknowledge that the indemnification
and contribution provisions of Sections 9 and 10 hereof are specifically applicable and relate to
each offering memorandum, registration statement, prospectus, amendment or supplement referred to
in this Section 4.

15

 

     (d) Copies of the Offering Memorandum. The Company agrees to furnish the Initial Purchasers,
without charge, as many copies of the Offering Memorandum and any amendments and supplements
thereto as they shall have reasonably requested.

     (e) Blue Sky Compliance. Each of the Copano Parties shall cooperate with the Initial
Purchasers and counsel for the Initial Purchasers to qualify or register (or to obtain exemptions
from qualifying or registering) all or any part of the Securities for offer and sale under the
securities laws of the several states of the United States and any other jurisdictions reasonably
designated by the Initial Purchasers, shall comply with such laws and shall continue such
qualifications, registrations and exemptions in effect so long as required for the distribution of
the Securities. None of the Issuers or any of the Guarantors shall be required to qualify as a
foreign corporation or to take any action that would subject it to general service of process in
any such jurisdiction where it is not presently qualified or where it would be subject to taxation
as a foreign limited liability company. The Company will advise the Initial Purchasers promptly of
the suspension of the qualification or registration of (or any such exemption relating to) the
Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any
proceeding for any such purpose, and in the event of the issuance of any order suspending such
qualification, registration or exemption, each of the Issuers and the Guarantors shall use its
reasonable best efforts to obtain the withdrawal thereof at the earliest possible moment.

     (f) The Depositary. The Company will cooperate with the Initial Purchasers and use its
reasonable best efforts to permit the Securities to be eligible for clearance and settlement
through the facilities of the Depositary.

     (g) Additional Issuer Information. Prior to the completion of the placement of the Securities
by the Initial Purchasers with the Subsequent Purchasers, the Company shall file, on a timely
basis, with the Commission and The Nasdaq National Market all reports and documents required to be
filed under Section 13 or 15(d) of the Exchange Act. Additionally, at any time when the Company is
not subject to Section 13 or 15(d) of the Exchange Act and the Notes are “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, for the benefit of holders and
beneficial owners from time to time of the Securities, the Company shall furnish, at its expense,
upon request, to holders and beneficial owners of Securities and prospective purchasers of
Securities information (“Additional Issuer Information”) satisfying the requirements of Rule
144A(d)(4) under the Securities Act.

     (h) Agreement Not To Offer or Sell Additional Securities. During the period of sixty (60)
days following the date of the Offering Memorandum, the Copano Parties will not, without the prior
written consent of Banc of America Securities LLC (which consent may be withheld at the sole
discretion of Banc of America Securities LLC), directly or indirectly, issue, sell, offer to sell,
contract or grant any option to sell, pledge, transfer or establish an open “put equivalent
position” within the meaning of Rule 16a-1 under the Exchange Act, or otherwise dispose of or
transfer, or announce the offering of, or file any registration statement under the Securities Act
in respect of, any securities similar to the Notes or any securities exchangeable for or
convertible into the Notes or any such similar securities (other than as contemplated by this
Agreement and to register the Exchange Securities).

16

 

     (i) No Integration. The Company agrees that it will not and will cause its Affiliates not to
make any offer or sale of securities of the Company of any class if, as a result of the doctrine of
“integration” referred to in Rule 502 under the Securities Act, such offer or sale would render
invalid (for the purpose of (i) the sale of the Securities by the Company to the Initial
Purchasers, (ii) the resale of the Securities by the Initial Purchasers to Subsequent Purchasers or
(iii) the resale of the Securities by such Subsequent Purchasers to others) the exemption from the
registration requirements of the Securities Act provided by Section 4(2) thereof or by Rule 144A or
by Regulation S thereunder or otherwise.

     (j) Legended Securities. Each certificate for a Note will bear the legend contained in
“Transfer Restrictions” in the Offering Memorandum for the time period and upon the other terms
stated in the Offering Memorandum.

     (k) PORTAL. The Company will use its reasonable best efforts to cause the Notes to be
eligible for the PORTAL Market.

     (l) Stabilization. Except as stated in this Agreement and in the Preliminary Offering
Memorandum and Offering Memorandum, the Issuers, the Guarantors and their respective Affiliates
will not take, directly or indirectly, any action designed to or that might reasonably be expected
to cause or result in stabilization or manipulation of the price of the Notes.

     (m) Resales. During the period of two years after the Closing Date, the Copano Parties will
not, and will not permit any of their “affiliates” (as defined in Rule 144 under the Securities
Act), to, resell any of the Notes that constitute “restricted securities” under Rule 144 that have
been reacquired by any of them.

     Banc of America Securities LLC, on behalf of the several Initial Purchasers, may, in its sole
discretion, waive in writing the performance by the Issuers or any Guarantor of any one or more of
the foregoing covenants or extend the time for their performance.

     SECTION 5. Payment of Expenses. Each of the Copano Parties agrees to pay the costs and
expenses related to the following matters: (i) the expenses incident to the issuance and delivery
of the Securities (including all printing and engraving costs), (ii) all necessary issue, transfer
and other stamp taxes in connection with the original issuance and sale of the Securities to the
Initial Purchasers, (iii) the fees and expenses of the Company’s counsel, independent public or
certified public accountants and other advisors, (iv) the costs and expenses incurred in connection
with the preparation, printing, filing, shipping and distribution of each Preliminary Offering
Memorandum and the Offering Memorandum (including financial statements and exhibits), and all
amendments and supplements thereto, this Agreement, the Registration Rights Agreement, the
Indenture, the DTC Agreement and the Notes and Guarantees, (v) the filing fees, attorneys’ fees and
expenses incurred by the Company, FinCo, the Guarantors or the Initial Purchasers in connection
with qualifying or registering (or obtaining exemptions from the qualification or registration of)
all or any part of the Securities for offer and sale under the securities laws of the several
states of the United States (including, without limitation, the cost of preparing, printing and
mailing preliminary and final blue sky or legal investment memoranda and any related supplements to
the Preliminary Offering Memorandum or Offering Memorandum, (vi) the fees and expenses of the
Trustee, including the fees and disbursements of

17

 

counsel for the Trustee in connection with the Indenture, the Securities and the Exchange
Securities, (vii) any fees payable in connection with the rating of the Securities or the Exchange
Securities with the ratings agencies and the listing of the Securities with the PORTAL Market,
(viii) the fees and expenses (including reasonable fees and expenses of counsel) of the Copano
Parties in connection with approval of the Securities by the Depositary for “book-entry” transfer,
and the performance by the Copano Parties of their respective other obligations under this
Agreement and (ix) one-half of all reasonable out-of-pocket expenses incident to the “road show”
for the offering of the Securities, including the cost of any chartered airplane or other
transportation. Except as provided in this Section 5 and Sections 7, 9 and 10 hereof, the Initial
Purchasers shall pay their own expenses, including the fees and disbursements of their counsel,
Baker Botts L.L.P.

     SECTION 6. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase the Securities as provided herein on the Closing Date shall
be subject to the accuracy of the respective representations and warranties of the Copano Parties
set forth in Section 1 hereof as of the Execution Time and as of the Closing Date as though then
made and to the performance by the Copano Parties of their respective covenants and other
obligations hereunder, and to each of the following additional conditions:

     (a) Accountants’ Comfort Letter. On the date hereof, the Initial Purchasers shall have
received from each of Deloitte & Touche LLP and Grant Thornton LLP, independent public accountants
for the Company and ScissorTail, respectively, letters dated the date hereof addressed to the
Initial Purchasers, in form and substance satisfactory to the Initial Purchasers, containing
statements and information of the type ordinarily included in accountant’s “comfort letters” to
Initial Purchasers, delivered according to Statement of Auditing Standards Nos. 72, 76 and 100 (or
any successor bulletins), with respect to the audited and unaudited financial statements and
certain financial information contained in the Preliminary Offering Memorandum and the Pricing
Supplement.

     (b) Offering Memorandum. The Initial Purchasers shall not have discovered and disclosed to
the Issuers on or prior to the Closing Date that the Offering Memorandum or any amendment or
supplement thereto contains an untrue statement of a fact that, in the opinion of Baker Botts
L.L.P., is material or omits to state a fact that, in the opinion of such counsel, is material and
is necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading.

     (c) No Material Adverse Change or Ratings Agency Change. For the period from and after the
date of this Agreement and prior to the Closing Date:

          (i) there shall not have occurred any Material Adverse Change the effect of which, in the
judgment of the Initial Purchasers, makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities on the terms and in the manner contemplated by this
Agreement, the Preliminary Offering Memorandum and the Offering Memorandum; and

          (ii) there shall not have occurred any downgrading, nor shall any notice have been given of
any intended or potential downgrading or of any review for a possible change that does not indicate
the direction of the possible change, in the rating accorded any securities or

18

 

indebtedness of the Company or any of its Subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436 under the
Securities Act.

     (d) Opinion of Outside Counsel for the Company. On the Closing Date the Initial Purchasers
shall have received an opinion letter from Vinson & Elkins L.L.P., counsel for the Company, dated
as of such Closing Date, the form of which is attached as Exhibit A.

     (e) Opinion of General Counsel of the Company. On the Closing Date the Initial Purchasers
shall have received an opinion letter from Douglas L. Lawing, Vice President, General Counsel and
Secretary of the Company, dated as of such Closing Date, the form of which is attached as Exhibit
B.

     (f) Opinion of Counsel for the Initial Purchasers. On the Closing Date the Initial Purchasers
shall have received an opinion letter from Baker Botts L.L.P., counsel for the Initial Purchasers,
dated as of such Closing Date, with respect to such matters as may be reasonably requested by the
Initial Purchasers.

     (g) Officers’ Certificate. On the Closing Date the Initial Purchasers shall have received a
written certificate executed by an executive officer of each Copano Party who has specific
knowledge of such Copano Party’s financial matters and is satisfactory to the Initial Purchasers,
dated as of the Closing Date, to the effect set forth in Section 6(c) hereof, and further to the
effect that:

          (i) the representations, warranties and covenants of such entity set forth in Section 1 hereof
were true and correct as of the Time of Execution and are true and correct as of the Closing Date
with the same force and effect as though expressly made on and as of the Closing Date; and

          (ii) such entity has complied with all the agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to the Closing Date.

     (h) Bring-Down Comfort Letter. On the Closing Date the Initial Purchasers shall have received
from each of Deloitte & Touche LLP and Grant Thornton LLP a letter dated such date, in form and
substance satisfactory to the Initial Purchasers, to the effect that they reaffirm the statements
made in the respective letter furnished by them pursuant to Section 6(a) hereof, except that the
specified date referred to therein for the carrying out of procedures shall be no more than three
business days prior to the Closing Date and that their procedures shall extend to financial
information in the Final Offering Memorandum not contained in the Preliminary Offering Memorandum
or the Pricing Supplement.

     (i) PORTAL Listing. At the Closing Date, the Notes shall have been designated for trading on
the PORTAL Market.

     (j) Registration Rights Agreement . The Copano Parties shall have entered into the
Registration Rights Agreement and the Initial Purchasers or their counsel shall have received
executed counterparts thereof.

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     (k) Indenture. The Copano Parties and the Trustee shall have executed and delivered the
Indenture, and the Initial Purchasers or their counsel shall have received an executed counterpart
thereof, duly executed by the Copano Parties and the Trustee.

     (l) Additional Documents. On or before the Closing Date, the Initial Purchasers and counsel
for the Initial Purchasers shall have received such information, documents and opinions as they may
reasonably require for the purposes of enabling them to pass upon the issuance and sale of the
Securities as contemplated herein, or in order to evidence the accuracy of any of the
representations and warranties, or the satisfaction of any of the conditions or agreements, herein
contained.

     If any condition specified in this Section 6 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Initial Purchasers by notice to the Company at
any time on or prior to the Closing Date, which termination shall be without liability on the part
of any party to any other party, except that Sections 5, 7, 9 and 10 hereof shall at all times be
effective and shall survive such termination.

20

 

     SECTION 7. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by
the Initial Purchasers because any condition to the obligations of the Initial Purchasers set forth
in Section 6 is not satisfied, because of any termination pursuant to Section 11(i) hereof, or
because of any refusal, inability or failure on the part of any of the Copano Parties to perform
any agreement herein or to comply with any provision hereof other than by reason of a default by
any of the Initial Purchasers, then the Copano Parties agree to reimburse the Initial Purchasers
(or such Initial Purchasers as have terminated this Agreement with respect to themselves),
severally, upon demand for all out-of-pocket expenses that shall have been reasonably incurred by
the Initial Purchasers in connection with the proposed purchase and the offering and sale of the
Securities, including, without limitation, fees and disbursements of counsel, printing expenses,
travel expenses, postage, facsimile and telephone charges.

     SECTION 8. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one
hand, and the Copano Parties, on the other hand, hereby agrees that they have observed and will
observe the following procedures in connection with the offer and sale of the Securities:

     (a) Offers and sales of the Securities will be made only by the Initial Purchasers or
Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are made.
Each such offer or sale shall only be made to persons whom the offeror or seller reasonably
believes to be Qualified Institutional Buyers or non-U.S. persons outside the United States to whom
the offeror or seller reasonably believes offers and sales of the Securities may be made in
reliance upon Regulation S upon the terms and conditions set forth in Annex I hereto, which Annex I
is hereby expressly made a part hereof.

     (b) The Securities will be offered by approaching prospective Subsequent Purchasers on an
individual basis. No general solicitation or general advertising (within the meaning of Rule 502
under the Securities Act) will be used in the United States in connection with the offering of the
Securities.

     (c) Upon original issuance by the Company, and until such time as the same is no longer
required under the applicable requirements of the Securities Act, the Notes (and all securities
issued in exchange therefor or in substitution thereof, other than the Exchange Securities Notes)
shall bear the following legend and such other legends as the Initial Purchasers and their counsel
shall deem necessary:

“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

21

 

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.”

     Following the sale of the Securities by the Initial Purchasers to Subsequent
Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be liable or
responsible to the Company for any losses, damages or liabilities suffered or incurred by
the Company, including any losses, damages or liabilities under the Securities Act, arising
from or relating to any resale or transfer of any Security.

     SECTION 9. Indemnification.

     (a) Indemnification of the Initial Purchasers. Each of the Copano Parties, jointly and
severally, agrees to indemnify and hold harmless each Initial Purchaser, its directors, officers
and employees, and each person, if any, who controls any Initial Purchaser within the meaning of
the Securities Act and the Exchange Act against any loss, claim, damage, liability or expense, as
incurred, to which such Initial Purchaser, director, officer, employee or controlling person may
become subject, under the Securities Act, the Exchange Act or other federal or state statutory law
or regulation, or at common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of the Company), insofar as such loss, claim,

22

 

damage, liability or expense (or actions in respect thereof as contemplated below) arises out
of or is based upon any untrue statement or alleged untrue statement of a material fact contained
in the Preliminary Offering Memorandum, the Pricing Supplement or the Offering Memorandum (or any
amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, provided, however, that the foregoing indemnity
agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only
to the extent, arising out of or based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in reliance upon and in conformity with written information
furnished to the Company by the Initial Purchasers expressly for use in the Preliminary Offering
Memorandum, the Pricing Supplement or the Offering Memorandum (or any amendment or supplement
thereto). The indemnity agreement set forth in this Section 9(a) shall be in addition to any
liabilities that the Company may otherwise have.

     (b) Indemnification of the Copano Parties. Each Initial Purchaser agrees, severally and not
jointly, to indemnify and hold harmless the Copano Parties, each of their respective directors and
each person, if any, who controls any of the Copano Parties within the meaning of the Securities
Act or the Exchange Act, against any loss, claim, damage, liability or expense, as incurred, to
which such Copano Party or any such director or controlling person may become subject, under the
Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation, if such settlement is effected
with the written consent of such Initial Purchaser), insofar as such loss, claim, damage, liability
or expense (or actions in respect thereof as contemplated below) arises out of or is based upon any
untrue statement or alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum, the Pricing Supplement or the Offering Memorandum (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, in each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Preliminary Offering
Memorandum, the Pricing Supplement or the Offering Memorandum (or any amendment or supplement
thereto), in reliance upon and in conformity with written information furnished to the Company by
the Initial Purchasers expressly for use therein; and to reimburse such Copano Party and each such
director or controlling person for any and all expenses (including the fees and disbursements of
counsel) as such expenses are reasonably incurred by such Copano Party or such director or
controlling person in connection with investigating, defending, settling, compromising or paying
any such loss, claim, damage, liability, expense or action. Each Copano Party hereby acknowledges
that the only information that the Initial Purchasers have furnished to the Company expressly for
use in the Preliminary Offering Memorandum, the Pricing Supplement or the Offering Memorandum (or
any amendment or supplement thereto) are the statements set forth in the third sentence of the
eighth paragraph and in the twelfth paragraph under the caption “Plan of Distribution” in the
Preliminary Offering Memorandum and the Offering Memorandum. The indemnity agreement set forth in
this Section 9(b) shall be in addition to any liabilities that each Initial Purchaser may otherwise
have.

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 9 of notice of the commencement of any action, such

23

 

indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 9, notify the indemnifying party in writing of the commencement thereof,
but the omission so to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party for contribution or otherwise than under the indemnity
agreement contained in this Section 9 or to the extent it is not prejudiced as a proximate result
of such failure. In case any such action is brought against any indemnified party and such
indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying
party will be entitled to participate in and, to the extent that it shall elect, jointly with all
other indemnifying parties similarly notified, by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to assume the defense
thereof with counsel reasonably satisfactory to such indemnified party; provided,
however, if the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded that a conflict may
arise between the positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available to the indemnifying
party, the indemnified party or parties shall have the right to select separate counsel to assume
such legal defenses and to otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party to such
indemnified party of such indemnifying party’s election so to assume the defense of such action and
approval by the indemnified party of counsel, the indemnifying party will not be liable to such
indemnified party under this Section 9 for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof unless (i) the indemnified party
shall have employed separate counsel in accordance with the proviso to the next preceding sentence
(it being understood, however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel (together with local counsel), approved by the indemnifying party
(Banc of America Securities LLC in the case of Sections 9(b) and 10 hereof), representing the
indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

     (d) Settlements. The indemnifying party under this Section 9 shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated by this Section 9, the indemnifying party agrees that it shall
be liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than thirty (30) days after receipt by such indemnifying party of
the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified
party in accordance with such request or disputed in good faith the indemnified party’s entitlement
to such reimbursement prior to the date of such settlement. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement, compromise or consent to
the entry of judgment in any pending or threatened action,

24

 

suit or proceeding in respect of which any indemnified party is or could have been a party and
indemnity was or could have been sought hereunder by such indemnified party, unless such
settlement, compromise or consent (i) includes an unconditional release of such indemnified party
from all liability on claims that are the subject matter of such action, suit or proceeding and
(ii) does not include any statements as to, or any, findings of fault, culpability or failure to
act by or on behalf of any indemnified party.

     SECTION 10. Contribution. If the indemnification provided for in Section 9 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Copano Parties, on the one hand, and the Initial Purchasers, on the other hand, from the offering
of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the Copano
Parties, on the one hand, and the Initial Purchasers, on the other hand, in connection with the
statements or omissions or inaccuracies in the representations and warranties herein which resulted
in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative benefits received by the Copano Parties, on the one hand, and the
Initial Purchasers, on the other hand, in connection with the offering of the Securities pursuant
to this Agreement shall be deemed to be in the same respective proportions as the total net
proceeds from the offering of the Securities pursuant to this Agreement (after deducting discounts
and commissions to the Initial Purchasers but before deducting expenses) received by the Company,
and the total purchase discounts and commissions received by the Initial Purchasers bear to the
aggregate initial offering price of the Securities. The relative fault of the Copano Parties, on
the one hand, and the Initial Purchasers, on the other hand, shall be determined by reference to,
among other things, whether any such untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact or any such inaccurate or alleged inaccurate
representation or warranty relates to information supplied by the Copano Parties, on the one hand,
or the Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission or inaccuracy.

     The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 9 hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 9 hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 10; provided, however, that no
additional notice shall be required with respect to any action for which notice has been given
under Section 9 hereof for purposes of indemnification.

     The Copano Parties and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 10 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other method of

25

 

allocation which does not take account of the equitable considerations referred to in this
Section 10.

     Notwithstanding the provisions of this Section 10, no Initial Purchaser shall be required to
contribute any amount in excess of the discount and commission received by such Initial Purchaser
in connection with the Securities distributed by it. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial
Purchasers’ obligations to contribute pursuant to this Section 10 are several, and not joint, in
proportion to their respective commitments as set forth opposite their names in Schedule B. For
purposes of this Section 10, each director, officer and employee of an Initial Purchaser and each
person, if any, who controls an Initial Purchaser within the meaning of the Securities Act and the
Exchange Act shall have the same rights to contribution as such Initial Purchaser, and each
director of any of the Copano Parties, and each person, if any, who controls any of the Copano
Parties with the meaning of the Securities Act and the Exchange Act shall have the same rights to
contribution as the Copano Parties.

     SECTION 11. Termination of this Agreement. Prior to the Closing Date, this Agreement may be
terminated by the Initial Purchasers by notice given to the Company if at any time: (i) trading or
quotation in any of the Company’s securities shall have been suspended or limited by the Commission
or by The Nasdaq Stock Market, or (ii) trading in securities generally on either The Nasdaq Stock
Market or the NYSE shall have been suspended or limited, or minimum or maximum prices shall have
been generally established on any of such quotation system or stock exchange by the Commission or
the NASD; (iii) a general banking moratorium shall have been declared by any of federal, New York
or Delaware authorities; or (iv) there shall have occurred any outbreak or escalation of national
or international hostilities involving the United States or any crisis or calamity, or any change
in the United States or international financial markets, as in the judgment of the Initial
Purchasers is material and adverse and makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the Securities in the manner and on the terms described in the
Offering Memorandum or to enforce contracts for the sale of securities.

     SECTION 12. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Copano Parties, their
respective officers and the several Initial Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of any Initial Purchaser, any Copano Party or any of their partners, officers or directors
or any controlling person, as the case may be, and will survive delivery of and payment for the
Securities sold hereunder and any termination of this Agreement.

     SECTION 13. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows:

If to the Initial Purchasers:

Banc of America Securities LLC

40 West 57th Street

26

 

New York, NY 10019

Facsimile: (212) 901-7897

Attention: Legal Department

with a copy to:

Baker Botts L.L.P.

910 Louisiana

Houston, Texas 77002

Facsimile:713.229.2727

Attention:Joshua Davidson

If to any Copano Party:

Copano Energy, L.L.C.

2727 Allen Parkway, Suite 1200

Houston, Texas 77019

Facsimile: 713.621.9545

Attention: Douglas L. Lawing

with a copy to:

Vinson & Elkins L.L.P.

2300 First City Tower

1001 Fannin Street

Houston, Texas 77002

Facsimile: 713.615.5861

Attention: David P. Oelman

     Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others.

27

 

     SECTION 14. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, including any substitute Initial Purchasers pursuant to Section 17 hereof, and to
the benefit of the indemnified parties referred to in Sections 9 and 10 hereof, and in each case
their respective successors, and no other person will have any right or obligation hereunder. The
term “successors” shall not include any Subsequent Purchaser or other purchaser of the Securities
as such from any of the Initial Purchasers merely by reason of such purchase.

     SECTION 15. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, then to the extent
practicable there shall be deemed to be made such minor changes (and only such minor changes) as
are necessary to make it valid and enforceable.

     SECTION 16. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

     SECTION 17. Default of One or More of the Several Initial Purchasers. If any one or more of
the several Initial Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other
Initial Purchasers shall be obligated, severally, in the proportions that the number of Securities
set forth opposite their respective names on Schedule B bears to the aggregate number of Securities
set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other
proportions as may be specified by the Initial Purchasers with the consent of the non-defaulting
Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on the Closing Date. If any one or more of the
Initial Purchasers shall fail or refuse to purchase Securities and the aggregate number of
Securities with respect to which such default occurs exceeds 10% of the aggregate number of
Securities to be purchased on the Closing Date, and arrangements satisfactory to the Initial
Purchasers and the Company for the purchase of such Securities are not made within 48 hours after
such default, this Agreement shall terminate without liability of any party to any other party
except that the provisions of Sections 5, 7, 9 and 10 hereof shall at all times be effective and
shall survive such termination. In any such case either the Initial Purchasers or the Company
shall have the right to postpone the Closing Date, as the case may be, but in no event for longer
than seven days in order that the required changes, if any, to the Offering Memorandum or any other
documents or arrangements may be effected.

     As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 17. Any action taken under this
Section 17 shall not relieve any defaulting Initial Purchaser from liability in respect of any
default of such Initial Purchaser under this Agreement.

28

 

     SECTION 18. No Advisory or Fiduciary Responsibility. Each of the Copano Parties acknowledges
and agrees that: (i) the purchase and sale of the Securities pursuant to this Agreement, including
the determination of the offering price of the Securities and any related discounts and
commissions, is an arm’s-length commercial transaction between the Copano Parties, on the one hand,
and the several Initial Purchasers, on the other hand, and the Copano Parties are capable of
evaluating and understanding and understand and accept the terms, risks and conditions of the
transactions contemplated by this Agreement; (ii) in connection with each transaction contemplated
hereby and the process leading to such transaction each Initial Purchaser is and has been acting
solely as a principal and is not the agent or fiduciary of any of the Copano Parties or their
respective affiliates, stockholders, creditors or employees or any other party; (iii) no Initial
Purchaser has assumed or will assume an advisory or fiduciary responsibility in favor of any Copano
Party with respect to any of the transactions contemplated hereby or the process leading thereto
(irrespective of whether such Initial Purchaser has advised or is currently advising any Copano
Party on other matters) or any other obligation to any Copano Party except the obligations
expressly set forth in this Agreement; (iv) the several Initial Purchasers and their respective
affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Copano Parties and that the several Initial Purchasers have no obligation to disclose
any of such interests by virtue of any fiduciary or advisory relationship; and (v) the Initial
Purchasers have not provided any legal, accounting, regulatory or tax advice with respect to the
offering contemplated hereby and the Copano Parties have consulted their own legal, accounting,
regulatory and tax advisors to the extent they deemed appropriate.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
among the Copano Parties and the several Initial Purchasers, or any of them, with respect to the
subject matter hereof. The Copano Parties hereby waive and release, to the fullest extent
permitted by law, any claims that any Copano Party may have against the several Initial Purchasers
with respect to any breach or alleged breach of fiduciary duty.

     SECTION 19. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. For purposes
of this Agreement, (i) “business day” means any day on which the New York Stock Exchange, Inc. is
open for trading and (ii) “subsidiary” has the meaning set forth in Rule 405 of the rules and
regulations under the Securities Act.

     This Agreement may not be amended or modified unless in writing by all of the parties hereto,
and no condition herein (express or implied) may be waived unless waived in writing by each party
whom the condition is meant to benefit. The section headings herein are for the convenience of the
parties only and shall not affect the construction or interpretation of this Agreement.

[Signature pages follow.]

29

 

     If the foregoing is in accordance with your understanding of our agreement, kindly sign
and return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

COPANO ENERGY, L.L.C.

 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 
	 	COPANO ENERGY FINANCE CORPORATION

 	 
	 	By:  	/s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	SCISSORTAIL ENERGY, LLC
	 

	 	COPANO ENERGY/ROCKY MOUNTAINS AND MID-CONTINENT, L.L.C.
	 

	 	COPANO PROCESSING GP, L.L.C.
	 

	 	COPANO NGL SERVICES GP, L.L.C.
	 

	 	COPANO FIELD SERVICES GP, L.L.C.
	 

	 	COPANO PIPELINES GP, L.L.C.
	 

	 	COPANO PIPELINES (TEXAS) GP, L.L.C.
	 

	 	COPANO ENERGY SERVICES GP, L.L.C.
	 

	 	COPANO ENERGY SERVICES (TEXAS) GP, L.L.C.
	 

	 	COPANO FIELD SERVICES/CENTRAL GULF COAST GP, L.L.C.
	 

	 	COPANO/WEBB-DUVAL PIPELINE GP, L.L.C.
	 

	 	CPNO SERVICES GP, L.L.C.
	 

	 	NUECES GATHERING, L.L.C.
	 

	 	ESTES COVE FACILITIES, L.L.C.

	 	 	 	 	 
	 	 	 
	 	By:  	                                            /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

SIGNATURE PAGE TO PURCHASE AGREEMENT

 

 

	 	 	 
	 

	 	COPANO PROCESSING, L.P.
	 

	 	By: COPANO PROCESSING GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO NGL SERVICES, L.P.
	 

	 	By: COPANO NGL SERVICES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	               /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO HOUSTON CENTRAL, L.L.C.
	 

	 	CHC LP HOLDINGS, L.L.C.
	 

	 	COPANO PIPELINES GROUP, L.L.C.
	 

	 	COPANO GENERAL PARTNERS, INC.
	 

	 	CPG LP HOLDINGS, L.L.C.
	 

	 	CWDPL LP HOLDINGS, L.L.C.
	 

	 	CPNO SERVICES LP HOLDINGS, L.L.C.

	 	 	 	 	 
	 	 	 
	 	By:  	                                            /s/ Susan T. Dubb
 	 
	 	 	Susan T. Dubb 	 
	 	 	Vice President and Assistant Secretary 	 
	 

SIGNATURE PAGE TO PURCHASE AGREEMENT

 

 

	 	 	 
	 

	 	COPANO FIELD SERVICES/AQUA DULCE, L.P.
	 

	 	COPANO FIELD SERVICES/COPANO BAY, L.P.
	 

	 	COPANO FIELD SERVICES/KARNES, L.P.
	 

	 	COPANO FIELD SERVICES/LIVE OAK, L.P.
	 

	 	COPANO FIELD SERVICES/SOUTH TEXAS,
L.P.
	 

	 	COPANO FIELD SERVICES/UPPER GULF
COAST, L.P.

	 	 	 
	 

	 	By: COPANO FIELD SERVICES GP, L.LC.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	       /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO PIPELINES/HEBBRONVILLE, L.P.
	 

	 	COPANO PIPELINES/SOUTH TEXAS, L.P.
	 

	 	COPANO PIPELINES/UPPER GULF COAST,
L.P.

	 	 	 
	 

	 	By: COPANO PIPELINES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	       /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO PIPELINES/TEXAS GULF COAST,
L.P.
	 

	 	By: COPANO PIPELINES (TEXAS) GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                                            /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO FIELD SERVICES/CENTRAL GULF
COAST, L.P.
	 

	 	By: COPANO FIELD SERVICES/CENTRAL
GULF COAST GP,
       L.L.C., General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                                            /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

SIGNATURE PAGE TO PURCHASE AGREEMENT

 

 

	 	 	 
	 

	 	COPANO ENERGY SERVICES/UPPER GULF
COAST, L.P.
	 

	 	By: COPANO ENERGY SERVICES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                                            /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO ENERGY SERVICES/TEXAS GULF
COAST, L.P.
	 

	 	By: COPANO ENERGY SERVICES (TEXAS)
GP, L.L.C.,
General
       Partner

	 	 	 	 	 
	 	 	 
	 	By:  	        /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

	 	 	 
	 

	 	COPANO/WEBB-DUVAL PIPELINE, L.P.
	 

	 	By: COPANO/WEBB-DUVAL PIPELINE GP,
L.L.C., General Partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ Matthew J. Assiff
	 

	 	 	 	 
	 

	 	 	 	Matthew J. Assiff
	 

	 	 	 	Senior Vice President and Chief Financial Officer

SIGNATURE PAGE TO PURCHASE AGREEMENT

 

 

	 	 	 
	 

	 	CPNO SERVICES, L.P.
	 

	 	COPANO RISK MANAGEMENT, L.P.
	 

	 	By: CPNO SERVICES GP, L.L.C.,
General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	 /s/ Matthew J. Assiff
 	 
	 	 	Matthew J. Assiff 	 
	 	 	Senior Vice President and Chief Financial
Officer 	 
	 

SIGNATURE PAGE TO PURCHASE AGREEMENT

 

 

     The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as
of the date first above written.

BANC OF AMERICA SECURITIES LLC

CREDIT SUISSE SECURITIES (USA) LLC

GOLDMAN, SACHS & CO.

LEHMAN BROTHERS INC.

COMERICA SECURITIES, INC.

FORTIS SECURITIES LLC

KEYBANC CAPITAL MARKETS, A DIVISION OF MCDONALD INVESTMENTS INC.

PIPER JAFFRAY & CO.

RBC CAPITAL MARKETS CORPORATION

SANDERS MORRIS HARRIS INC.

By: Banc of America Securities LLC

	 	 	 	 
	By:  	      /s/
Lex Maultsby
 	 
	 	 	    Managing Director	 

SIGNATURE PAGE TO PURCHASE AGREEMENT

 

 

SCHEDULE A

Guarantors

	 	 	 
	 	 	Jurisdiction of
	Name	 	Formation
	Copano Pipelines Group, L.L.C.

	 	Delaware
	Copano Houston Central, L.L.C.

	 	Delaware
	Copano Energy/Rocky Mountains and Mid-Continent, L.L.C.

	 	Delaware
	ScissorTail Energy, LLC

	 	Delaware
	Copano Field Services/Copano Bay, L.P.

	 	Texas
	Copano Field Services/South Texas, L.P.

	 	Texas
	Copano Field Services/Agua Dulce, L.P.

	 	Texas
	Copano Field Services/Central Gulf Coast, L.P.

	 	Texas
	Copano Field Services/Karnes, L.P.

	 	Texas
	Copano Field Services/Upper Gulf Coast, L.P.

	 	Texas
	Copano Field Services/Live Oak, L.P.

	 	Texas
	Copano Pipelines/South Texas, L.P.

	 	Texas
	Copano Pipelines/Upper Gulf Coast, L.P.

	 	Texas
	Copano Pipelines/Hebbronville, L.P.

	 	Texas
	Copano Pipelines/Texas Gulf Coast, L.P.

	 	Texas
	Copano Energy Services/Upper Gulf Coast, L.P.

	 	Texas
	Copano Energy Services/Texas Gulf Coast, L.P.

	 	Texas
	Copano NGL Services, L.P.

	 	Texas
	Copano Processing, L.P.

	 	Texas
	Copano/Webb-Duval Pipeline, L.P.

	 	Delaware
	CPNO Services, L.P.

	 	Texas
	Copano Risk Management, L.P.

	 	Texas
	Copano Processing GP, L.L.C.

	 	Delaware
	Copano NGL Services GP, L.L.C.

	 	Delaware
	Copano Field Services GP, L.L.C.

	 	Delaware
	Copano Pipelines GP, L.L.C.

	 	Delaware
	Copano Pipelines (Texas) GP, L.L.C.

	 	Delaware
	Copano Energy Services GP, L.L.C.

	 	Delaware
	Copano Energy Services (Texas) GP, L.L.C.

	 	Delaware
	Copano Field Services/Central Gulf Coast GP, L.L.C.

	 	Delaware
	Copano/Webb-Duval Pipeline GP, L.L.C.

	 	Delaware
	CHC LP Holdings, L.L.C.

	 	Delaware
	CPG LP Holdings, L.L.C.

	 	Delaware
	CWDPL LP Holdings, L.L.C.

	 	Delaware
	CPNO Services LP Holdings, L.L.C.

	 	Delaware
	CPNO Services GP, L.L.C.

	 	Delaware
	Nueces Gathering, L.L.C.

	 	Delaware
	Estes Cove Facilities, L.L.C.

	 	Delaware
	Copano General Partners, Inc.

	 	Delaware

Schedule A - 1

 

 

SCHEDULE B

	 	 	 	 	 
	 	 	Aggregate Principal	 
	 	 	Amount of	 
	 	 	Securities	 
	Initial Purchasers	 	to be Purchased	 
	 
	 	 	 	 
	Banc of America Securities LLC
	 	$	118,399,950	 
	Credit Suisse Securities (USA) LLC
	 	 	22,500,000	 
	Goldman, Sachs & Co.
	 	 	22,500,000	 
	Lehman Brothers Inc.
	 	 	22,500,000	 
	Comerica Securities, Inc.
	 	 	7,650,000	 
	Fortis Securities LLC
	 	 	7,650,000	 
	Piper Jaffray & Co.
	 	 	7,650,000	 
	RBC Capital Markets Corporation
	 	 	7,650,000	 
	KeyBanc Capital Markets, a Division of McDonald Investments Inc.
	 	 	4,500,000	 
	Sanders Morris Harris Inc.
	 	 	4,000,050	 
	 
	 	 	 
	Total
	 	$	225,000,000	 
	 
	 	 	 

Schedule B - 1

 

 

EXHIBIT A

Opinion of Vinson & Elkins L.L.P.

     (a) Formation and Qualification of Copano Group. Each of (i) Copano Energy, L.L.C., a
Delaware limited liability company (the “Company”), (ii), Copano Energy Finance Corporation, a
Delaware corporation (“FinCo”), (iii) Copano Pipelines Group, L.L.C., a Delaware limited liability
company (“CPG”), (iii) Copano/Webb-Duval Pipeline GP, L.L.C., a Delaware limited liability company
(“CWDPL”), (iv) CWDPL LP Holdings, L.L.C., a Delaware limited liability company (“CWDPL Holdings”),
(v) Copano Houston Central, L.L.C., a Delaware limited liability company (“CHC”) and (vi) Copano
Energy/Rocky Mountains and Mid-Continent, L.L.C. (“CE/RMMC”) (the entities described above,
collectively, the “Copano Group”), has been duly formed and is validly existing as a limited
liability company, limited partnership or corporation, as the case may be, in good standing under
its jurisdiction of formation with all limited liability company, limited partnership or corporate,
as the case may be, power and authority necessary to own or lease its properties and to conduct its
business, in each case in all material respects as described in the Offering Memorandum. Each
member of the Copano Group is duly registered or qualified to do business and is in good standing
as a foreign limited liability company, limited partnership or corporation, as the case may be, in
each jurisdiction set forth under its name on Appendix 1 to this opinion letter.

     (b) Ownership of Copano Group. Except as described in the Offering Memorandum, the
Company owns 100% of the limited liability company interests, partnership interests or capital
stock, as the case may be, of each member of the Copano Group. All such limited liability company
interests, partnership interests or capital stock, as the case may be, has been duly authorized and
validly issued in accordance with the applicable Copano Group Operative Documents and is fully paid
(to the extent required under such member of the Copano Group’s applicable constituent documents)
and non-assessable (except as such nonassessability may be affected by Section 18-607 of the
Delaware LLC Act, Section 17-607 of the Delaware LP Act); and all such interests are owned free and
clear of all liens, encumbrances (except restrictions on transferability as described in the
Offering Memorandum), security interests, equities, charges and other claims (other than those
arising under the Credit Agreements) (i) in respect of which a financing statement under the
Uniform Commercial Code of the State of Delaware naming the Company is on file as of a recent date
in the office of the Secretary of State of the State of Delaware, Texas or Oklahoma or (ii)
otherwise known to such counsel, without independent investigation, other than those created by or
arising under the Delaware General Corporation Law (the “DGCL”), Delaware LLC Act, the Delaware LP
Act.

     (c) Authorization, Execution and Delivery of Agreement. This Agreement has been duly
authorized and validly executed and delivered by each of the Copano Parties.

     (d) Other Enforceability Matters.

          (i) The Indenture has been duly authorized and validly executed and delivered by each of the
Copano Parties and (assuming the due authorization and valid execution and delivery thereof by the
Trustee) is a valid and legally binding agreement of each of the Copano Parties, enforceable
against each of them in accordance with its terms; provided that the

Exhibit A - 1

 

 

enforceability thereof may be limited by (A) applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or similar laws from time to time in effect affecting
creditors’ rights and remedies generally and by general principles of equity (regardless of whether
such principles are considered in a proceeding in equity or at law) and (B) public policy,
applicable law relating to fiduciary duties and indemnification and an implied covenant of good
faith and fair dealing.

          (ii) The Securities have been duly authorized and validly executed by the Issuers and the
Guarantors and, when duly authenticated by the Trustee in accordance with the provisions of the
Indenture and delivered to and paid for by the Initial Purchasers under the Purchase Agreement,
will constitute legal, valid, binding and enforceable obligations of the Issuers and the
Guarantors; provided that the enforceability thereof may be limited by (A) applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or similar laws from time to time in
effect affecting creditors’ rights and remedies generally and by general principles of equity
(regardless of whether such principles are considered in a proceeding in equity or at law) and (B)
public policy, applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.

          (iii) The Exchange Notes and the Exchange Guarantees have been duly authorized by each of the
Copano Parties and, when the Exchange Notes have been validly issued and duly authenticated in
accordance with the terms of the Indenture, the Registration Rights Agreement and the Exchange
Offer, the Exchange Notes and the Exchange Guarantees will constitute valid and binding obligations
of the Issuers and the Guarantors, respectively, and enforceable against them in accordance with
their respective terms, except as enforcement thereof may be limited by (A) applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or similar laws from time to time in
effect affecting creditors’ rights and remedies generally and by general principles of equity
(regardless of whether such principles are considered in a proceeding in equity or at law) and (B)
public policy, applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.

          (iv) The Registration Rights Agreement has been duly authorized and validly executed and
delivered by each of the Copano Parties, and (assuming the valid execution and delivery thereof by
the Initial Purchasers) is a valid and legally binding agreement of each of the Copano Parties,
enforceable against each of them in accordance with its terms; provided that the enforceability
thereof may be limited by (A) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws from time to time in effect affecting creditors’ rights
and remedies generally and by general principles of equity (regardless of whether such principles
are considered in a proceeding in equity or at law) and (B) public policy, applicable law relating
to fiduciary duties and indemnification and an implied covenant of good faith and fair dealing.

     (e) No Breach or Violation. None of the offering, issuance and sale of the Notes and
the Guarantees, the execution, delivery and performance of the Notes, the Guarantees, the Exchange
Notes, the Exchange Guarantees, the Indenture, the Registration Rights Agreement, and the Purchase
Agreement will result in a breach or violation (and no event has occurred that, with notice or
lapse of time or otherwise, would constitute such an event) or imposition of any lien, charge or
encumbrance upon any property or assets of the Copano Group pursuant to (i) the

Exhibit A - 2

 

 

applicable Copano Entity Operative Documents related to the Copano Group, (ii) any other
agreement, lease or other instrument filed or incorporated by reference as an exhibit to the
Company’s annual report on Form 10-K for the year ended December 31, 2004, quarterly reports on
Form 10-Q for the quarters ended March 31, 2005, June 30, 2005 or September 30, 2005 or any
applicable current report on Form 8-K filed with the Commission since the date of filing of the
most recent Form 10-K (other than liens created under the Credit Agreements) or (iii) the Delaware
LP Act, the Delaware LLC Act, the DGCL, the Texas LP Act, the Texas LLC Act, the laws of the State
of New York or federal law, which breaches, violations, defaults or liens, in the case of clause
(ii) or (iii), would reasonably be expected to result in a Material Adverse Change or could
materially impair the ability of any of the Copano Parties to perform its respective obligations
under the Purchase Agreement; provided, however, that no opinion is expressed pursuant to this
paragraph (f) with respect to federal or state securities laws or other anti-fraud laws.

     (f) No Consents. No consent, approval, authorization or order of, or filing or
registration with, any court or governmental agency or body having jurisdiction over the Copano
Parties or any of their respective properties is required in connection with the offering, issuance
and sale by the Issuers and the Guarantors of the Notes and the Guarantees in the manner
contemplated in the Purchase Agreement or in the Offering Memorandum, the execution, delivery and
performance of the Indenture and the Registration Rights Agreement by the Copano Parties and the
consummation by the Copano Parties of the transactions contemplated thereby, except (i) with
respect to the purchase and resale of the Notes by the Initial Purchasers, under applicable state
securities or “Blue Sky” laws, (ii) with respect to the Exchange Notes, as may be required under
the Securities Act and applicable state securities laws pursuant to the Registration Rights
Agreement and (iii) with respect to the Trustee and the Indenture in respect of the Exchange Notes
and Exchange Guarantees, as may be required under the Trust Indenture Act, as to which we express
no opinion.

     (g) Descriptions and Summaries. The statements in the Preliminary Offering Memorandum
and the Offering Memorandum (i) under the captions “The Offering” (excluding Use of Proceeds) and
“Description of Notes,” insofar as they purport to constitute summaries of the terms of the
Securities, the Indenture and the Registration Rights Agreement, are accurate in all material
respects and (ii) under the captions “Business—Regulation,” “Business—Environmental Matters,”
“United States Federal Income Tax Considerations,” “Certain Relationships and Related Transactions”
and “Description of Other Indebtedness,” insofar as they purport to constitute summaries of
contracts or refer to statements of law or legal conclusions, are accurate in all material
respects.

     (h) Legal Proceedings. To the knowledge of such counsel, except as described in the
Offering Memorandum, there is no action, suit or proceeding before or by any court, arbitrator or
governmental agency, body or official, domestic or foreign, now pending or threatened to which any
of the Copano Parties is or may be a party or to which the business or property of any of the
Copano Parties is or may be subject that is reasonably likely to, individually or in the aggregate
result in a Material Adverse Change.

     (i) Investment Company; Public Utility Holding Company. None of the Copano Entities
is (i) an “investment company” as such term is defined in the Investment Company Act

Exhibit A - 3

 

 

of 1940, as amended, or (ii) a “public utility holding company” or “holding company” within
the meaning of the Public Utility Holding Company Act of 1935, as amended.

     (j) Registration and Qualification. Assuming the accuracy of the representations and
warranties and compliance with the agreements contained in the Purchase Agreement, no registration
of the Securities under the Securities Act, and no qualification of an indenture under the Trust
Indenture Act, are required for the offer and sale by the Initial Purchasers of the Securities in
the manner contemplated by the Purchase Agreement.

     In addition, such counsel shall state that they have participated in conferences with officers
and other representatives of the Copano Parties, representatives of the independent public
accountants of the Company and representatives of the Initial Purchasers at which the contents of
the Offering Memorandum and related matters were discussed, and although such counsel did not
independently verify, is not passing upon and does not assume any responsibility for the accuracy,
completeness or fairness of the statements contained in the Offering Memorandum (except to the
extent specified in paragraph (h) above), on the basis of the foregoing, no facts have come to the
attention of such counsel which lead them to believe that the Preliminary Offering Memorandum and
Pricing Supplement as of the Time of Execution and as of the Closing Date, or the Final Offering
Memorandum as of its date and as of the Closing Date (in each case other than (i) the financial
statements included therein, including the notes and schedules thereto and auditors’ reports
thereon, and (ii) the other financial and statistical data included therein, as to which such
counsel need express no belief) contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

     In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Copano Parties and upon information obtained from
public officials, (B) assume that all documents submitted to them as originals are authentic, that
all copies submitted to them conform to the originals thereof, and that the signatures on all
documents examined by them are genuine, (C) state that their opinion is limited to federal laws,
the Delaware LP Act, the Delaware LLC Act, the DGCL, the Texas LP Act, the Texas LLC Act and the
laws of the State of New York (D) with respect to the opinions expressed in paragraph (a) above as
to the due qualification or registration as a foreign limited partnership, corporation or limited
liability company, as the case may be, of the Copano Group, state that such opinions are based upon
certificates of foreign qualification or registration provided by the Secretary of State of the
states listed on Appendix 1 (each of which will be dated not more than fourteen days prior to such
Closing Date, as the case may be, and shall be provided to the Initial Purchasers), (E) state that
they express no opinion with respect to any permits to own or operate any real or personal
property, (F) state that they express no opinion with respect to the accuracy or descriptions of
real or personal property and (G) state that they express no opinion with respect to state or local
taxes or tax statutes to which any of the members of the Company or any of the Copano Entities may
be subject.

[Insert Appendix 1 listing foreign qualifications of Copano Group]

Exhibit A - 4

 

 

EXHIBIT B

Opinion of Douglas L. Lawing

     (a) Formation and Qualification of the Subsidiaries. Each of the subsidiaries listed
in Schedule I (the “Subsidiaries”) to this opinion letter has been duly formed and is validly
existing as a limited partnership, limited liability company or corporation, as the case may be in
good standing under the laws of its jurisdiction of formation with all limited partnership, limited
liability company or corporate, as the case may be, power and authority necessary to own or lease
its properties and to conduct its business, in each case in all material respects as described in
the Offering Memorandum. Each Subsidiary is duly registered or qualified to do business and is in
good standing as a foreign limited partnership, limited liability company or corporation, as the
case may be, in each jurisdiction set forth under its name on Appendix 1 to this opinion letter.

     (b) Ownership of the Subsidiaries. Except as described in the Offering Memorandum,
the Company indirectly owns of record 100% of the limited liability company interests, partnership
interests or capital stock, as the case may be, of each of the Subsidiaries. All such limited
liability company interests, partnership interests or capital stock, as the case may be, has been
duly authorized and validly issued in accordance with the limited liability company agreements,
limited partnership agreements or articles of incorporation and bylaws, as the case may be, of such
entity and are fully paid (to the extent required under their respective limited liability company
agreements or limited partnership agreements) and non-assessable (except as such nonassessability
may be affected by Section 18-607 of the Delaware LLC Act or Sections 3.03, 5.02 and 6.07 of Texas
LP Act); and all such interests are owned free and clear of all liens, encumbrances (except
restrictions on transferability as described in the Offering Memorandum), security interests,
equities, charges and other claims (other than those arising under the Credit Agreements).

     (c) No Conflicts. None of the offering, issuance and sale of the Notes and the
Guarantees, the execution, delivery and performance of the Notes, the Guarantees, the Exchange
Notes, the Exchange Guarantees, the Indenture, the Registration Rights Agreement and the Purchase
Agreement will result in a breach or violation (and no event has occurred that, with notice or
lapse of time or otherwise, would constitute such an event) or imposition of any lien, charge or
encumbrance upon any property or assets of any of the Subsidiaries pursuant to (i) the applicable
Copano Entity Operative Documents of any of the Subsidiaries, (ii) any other agreement, lease or
other instrument known to such counsel (other than those filed or incorporated by reference as an
exhibit to the Company’s annual report on Form 10-K for the year ended December 31, 2004, quarterly
reports on Form 10-Q for the quarters ended March 31, 2005, June 30, 2005 or September 30, 2005 or
any applicable current report on Form 8-K filed with the Commission since the date of filing of the
most recent Form 10-K) (other than liens created under the Credit Agreements) or (iii) to the
knowledge of such counsel, any order, judgment, decree or injunction of any federal, Texas or
Delaware court or government agency or body having jurisdiction over any of the Subsidiaries or any
of their properties in a proceeding to which any of them or their property is a party, which
breaches, violations, defaults or liens, in the case of clause (ii) or (iii), would reasonably be
expected to result in a Material Adverse Change or could materially impair the ability of any of
the Copano Parties to perform its respective

Exhibit B - 1

 

 

obligations under this Agreement; provided, however, that no opinion is expressed pursuant to
this paragraph (c) with respect to federal or state securities laws or other anti-fraud laws.

     (d) Permits. To the knowledge of such counsel, each of the Copano Entities has, or at
the Closing Date will have, such permits, consents, licenses, franchises, certificates and
authorizations of governmental or regulatory authorities (“permits”) as are necessary to own its
properties and to conduct its business in the manner described in the Offering Memorandum, subject
to such qualifications as may be set forth in the Offering Memorandum and except for such permits
which, if not obtained, would not, individually or in the aggregate, result in a Material Adverse
Change; and, to the knowledge of such counsel, none of the Copano Entities has received any notice
of proceedings relating to the revocation or modification of any such permits which, individually
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably
be expected to result in a Material Adverse Change.

     In addition, such counsel shall state that he has participated in conferences with officers
and other representatives of the Copano Parties, representatives of the independent public
accountants of the Company and representatives of the Initial Purchasers at which the contents of
the Offering Memorandum and related matters were discussed, and although such counsel did not
independently verify, is not passing upon and does not assume any responsibility for the accuracy,
completeness or fairness of the statements contained in the Offering Memorandum, on the basis of
the foregoing, no facts have come to the attention of such counsel which lead him to believe that
the Preliminary Offering Memorandum and Pricing Supplement as of the Time of Execution and as of
the Closing Date or the Final Memorandum as of its date and as of the Closing Date (in each case
other than (i) the financial statements included therein, including the notes and schedules thereto
and auditors’ reports thereon, and (ii) the other financial and statistical data included therein,
as to which such counsel need express no belief) contained or contains an untrue statement of a
material fact or omitted or omits to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

     In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Copano Parties and upon information obtained from
public officials, (B) assume that all documents submitted to him as originals are authentic, that
all copies submitted to him conform to the originals thereof, and that the signatures on all
documents examined by him are genuine, (C) state that his opinion is limited to federal laws, the
Delaware LP Act, the Delaware LLC Act, the DGCL, the Texas LP Act and the Texas LLC Act, and (D)
state that he expresses no opinion with respect to state or local taxes or tax statutes to which
any of the members of the Company or any of the Copano Entities may be subject.

[Insert Schedule I listing Subsidiaries and Appendix 1 listing foreign qualifications of
Subsidiaries]

Exhibit B - 2

 

 

ANNEX I

     Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that:

     Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the
Securities in the United States or to, or for the benefit or account of, a U.S. Person (other than
a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its
distribution at any time and (ii) otherwise until 40 days after the later of the commencement of
the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with
Regulation S or another exemption from the registration requirements of the Securities Act. Such
Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any “tombstone” advertisement) to be
published in any newspaper or periodical or posted in any public place and will not issue any
circular relating to the Securities, except such advertisements as permitted by and include the
statements required by Regulation S.

     Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it
to any distributor, dealer or person receiving a selling concession, fee or other remuneration
during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such
distributor, dealer or person receiving a selling concession, fee or other remuneration a
confirmation or notice to substantially the following effect:

“The Securities covered hereby have not been registered under the U.S. Securities
Act of 1933, as amended (the “Securities Act”), and may not be offered and sold
within the United States or to, or for the account or benefit of, U.S. persons (i)
as part of your distribution at any time or (ii) otherwise until 40 days after the
later of the date the Securities were first offered to persons other than
distributors in reliance on Regulation S and the Closing Date, except in either case
in accordance with Regulation S under the Securities Act (or in accordance with Rule
144A under the Securities Act or to accredited investors in transactions that are
exempt from the registration requirements of the Securities Act), and in connection
with any subsequent sale by you of the Securities covered hereby in reliance on
Regulation S under the Securities Act during the period referred to above to any
distributor, dealer or person receiving a selling concession, fee or other
remuneration, you must deliver a notice to substantially the foregoing effect.
Terms used above have the meanings assigned to them in Regulation S under the
Securities Act.”

     Such Initial Purchaser agrees that the Securities offered and sold in reliance on Regulation S
will be represented upon issuance by a global security that may not be exchanged for definitive
securities until the expiration of the 40-day restricted period referred to in Rule 903 of
Regulation S and only upon certification of beneficial ownership of such Securities by non-U.S.
persons or U.S. persons who purchased such Securities in transactions that were exempt from the
registration requirements of the Securities Act.

Annex I-1

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