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[TRANSLATION]

                       PROMISSORY SHARE TRANSFER AGREEMENT

     PROMISSORY  SHARE TRANSFER AGREEMENT EXECUTED ON NOVEMBER 13, 2000, BY JUAN
JOSE  NAVARRO  PLASCENCIA,  INDIVIDUALLY (HEREINAFTER THE "PROMISOR-SELLER") AND
PENN  OCTANE  INTERNATIONAL,  L.L.C.,  REPRESENTED  HEREIN  BY  IAN  BOTHWELL
(HEREINAFTER  THE  "PROMISOR-BUYER"),  IN  ACCORDANCE  WITH  THE  FOLLOWING:

                                    RECITALS

     WHEREAS,  the  PROMISOR-SELLER  is  a  person  of  Mexican nationality that
desires to sign the present preparatory agreement such that in the future he may
sign a final agreement whereby the PROMISOR-BUYER will transfer 1 (One) ordinary
registered  shares  without  face value, representative of the Series "A" of the
fixed  corporate  capital  of  PENN  OCTANE DE MEXICO, S.A. DE C.V. (hereinafter
identified  as "PENN OCTANE MEX"), of which it is the sole and legitimate owner;

     WHEREAS,  the  PROMISOR-BUYER is a corporation organized in accordance with
the  laws  of  the  United  States  of America and desires sign this preparatory
agreement with regards to the future purchase of PENN OCTANE MEX shares of which
the  PROMISOR-SELLER  is  owner.

     WHEREAS,  as  registered  in  the  corporate  books of PENN OCTANE MEX, the
shares owned by PROMISOR-SELLER and that will be transferred by means of a final
agreement  executed  between  the  parties  are  totally  subscribed  and  paid.

     BASED  ON  THE  ABOVE,  and  in  consideration of the agreements and mutual
covenants  contained  in  this agreement, the PROMISOR-SELLER and PROMISOR-BUYER
execute  this  agreement  in  accordance  with  the  following:

                                     CLAUSES

1.     Subject  Matter  of  the  Agreement.  Subject to the terms and conditions
       -----------------------------------
established herein, PROMISSOR-SELLER promises to transfer to PROMISOR-BUYER, and
PROMISOR-BUYER  promises  to  buy,  1  (One)  ordinary registered shares without
nominal  value,  representative of the Series "A" of the fixed corporate capital
of  PENN  OCTANE  MEX,  of  which  it  is  the  sole  and  legitimate  owner.

2.     Value  of  Transfer.  The  amount  of the individual share value shall be
       -------------------
that determined by PROMISOR-BUYER'S accountants based on the company's financial
records.  This is also the price that will comprise the per share sales price in
the  final  agreement  based  on  prior  approval  from  PROMISOR-BUYER.

                                        1
<PAGE>
3.     Date of Signing Final Agreement.  The final Agreement should be singed by
       -------------------------------
the  parties within 10 (Ten) business days following the date when the per share
value  is  determined  in  accordance with the preceding clause.  Said agreement
should  comply  with the formalities required by law for its validity and should
provide  that  the  transfer  of  the  shares  be  conditioned  on the condition
precedent  that  if  the  settlement agreement between CPSC International, Inc.,
Cowboy  Pipeline Service Company, Inc. and Penn Octane Corporation is not signed
by  all  the  named  parties  is not signed and approved by the appropriate U.S.
authorities,  the  agreement  is  voided.

4.     Warranties  and  Representations of PROMISOR-SELLER.  The PROMISOR-SELLER
       ---------------------------------------------------
represents  and  warrants  to  the  PROMISOR-BUYER  that PENN OCTANE MEX is duly
organized  in  accordance  with  the  laws of the Mexican Republic, and that the
shares  the  subject  of  the  final transfer agreement are free of all liens or
limitations  of  ownership,  reason  for  which  they may be freely disposed of.

     Likewise,  the  PROMISOR-SELLER, obligates himself not to undertake any act
that  could  limit  or prejudice, in any manner, the shares that are the subject
matter  of  the  final  transfer  agreement  or  that  in any way impedes in the
execution  of  the  final  transfer  agreement.

     The  PROMISOR-SELLER  represents  that  prior to the execution of the final
transfer  agreement;  he will obtain a resolution from the Board of Directors of
PENN OCTANE MEX authorizing the transfers of the shares that will be the subject
matter  of  the  agreement  in  accordance  with  its  bylaws.

5.     Continuity  of  Agreement.   This  agreement  is  obligatory  for  all
       -------------------------
contracting  parties,  as  well  as  their heirs, assigns, as well as before any
other  third  party with regard to the transfer or the transferring of rights of
same.

6.     Jurisdiction.  The  parties expressly agree to submit to the jurisdiction
       ------------
of  the  tribunals  in Mexico City, Federal District, for the interpretation and
compliance  of  this agreement, for which they will waive any other jurisdiction
by  reason  of  the  present  or  future  domicile.

7.     Counterparts.  This Agreement may be signed simultaneously in two or more
       ------------
counterparts,  each  one being considered as the same original, but collectively
shall  constitute  one  legal  act.

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<PAGE>
     In  witness hereof, the parties have duly executed this Agreement as of the
date first  indicated.

PROMISOR-SELLER:

JUAN  JOSE  NAVARRO  PLASCENCIA

________________________________________

PROMISOR-BUYER:

PENN  OCTANE  INTERNATIONAL,  L.L.C.,

By:_____________________________________
Name:  IAN  BOTHWELL
Its:____________________________________

WITNESS                                   WITNESS

Name:___________________________          Name:______________________________
________________________________          ___________________________________

                                        3
<PAGE>TO:            [NAME]

FROM:          [MANAGER]

CC:            GIL  JOHNSON

DATE:

SUBJECT:       2000 BONUS PLAN - NOTICE OF ELIGIBILITY

I.   BONUS PLAN ELIGIBILITY
     ----------------------

     You will have the potential to receive a bonus of:

     [Bonus  %] of salary  (based  upon your  annual  salary as of 30  September
     2000).

II.  BONUS CRITERIA AND WEIGHTING
     ----------------------------

     Each of the following criteria  represents a portion of the above bonus and
     are weighted as follows:

             [INDIVIDUAL  WEIGHTING]     ---     Operating  Income

             [INDIVIDUAL  WEIGHTING]     ---     Revised  Profit  Plan  For
                                                 Applicable Business  Unit

             [INDIVIDUAL  WEIGHTING]     ---     Customer  Satisfaction

             [INDIVIDUAL  WEIGHTING]     ---     Employee  Satisfaction

     Business Unit means [Business Group].

                                        1
<PAGE>
III. BONUS CRITERIA AND OPERATION
     ----------------------------

     A.   OPERATING INCOME- [Target Operating Income]
          ----------------

          The 2000  target  to earn 100% of this  bonus  criterion  is  [TARGET]
          company wide  Operating  Income based on year end audited  results and
          before special one time charges and discontinued Banking Operations. A
          pro-rata portion of this bonus criterion is earned in excess [MINIMUM]
          and up to [TARGET].

     B.   PROFIT PLAN -- Target 100% or greater of plan
          -----------

          The 2000 target to earn 100% of this bonus criterion is achieving 100%
          or greater of your  revised  business  unit profit  plan.  There is no
          pro-rata portion of this criterion.

     C.   CLIENT AND EMPLOYEE SATISFCATION IMPROVEMENT
          ---------------------------------------------

          The  2000  target  to  earn  100%  of  these  bonus  criterion  is the
          achievement  of a [TARGET] score based on a 1 to 5 scale at the lowest
          client/employee  survey level.  A pro-rata  portion of each client and
          employee  satisfaction   criterion  will  be  paid  according  to  the
          following  schedule.  All scores are  computed to one  decimal  point,
          rounded down.

          [TARGET  -  0.5]     =  50%          [TARGET  -  0.2]  =  80%
          [TARGET  -  0.4]     =  60%          [TARGET  -  0.1]  =  90%
          [TARGET  -  0.3]     =  70%          [TARGET]         =  100%

IV.  ADDITIONAL BONUS QUALIFICATIONS
     -------------------------------

     A.   Your bonus,  as well as all other  bonuses under this 2000 Bonus Plan,
          is  subject  to the  discretion  and  authorization  of the  Board  of
          Directors and management  based upon their  evaluation of your and the
          Company's 2000  performance.  The amount of any bonus may be adjusted,
          in whole or in part, prior to payment.

     B.   You must be  employed  by the  Company  on the  date of bonus  payment
          approval by the Board of Directors.

     C.   Bonuses for  employees  who join the Company  after 1 January 2000 and
          before 30 September 2000 will be prorated.

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<PAGE>
V.   BONUS OPPORTUNITY
     -----------------

     Your bonus  opportunity is affected by a variety of factors  including your
     management  level,  the  level of  manager  you  report  to, as well as the
     margin/budget  level of your  organization.  For  that  reason  your  bonus
     opportunity may be different from others and it is important that you treat
     your  specific  bonus  opportunity,  as  presented in this  memorandum,  as
     private and confidential information.

VI.  RESTRICTED STOCK PLAN
     ---------------------

     The Policy Management  Systems  Corporation  Restricted Stock Plan ("Plan")
     will apply in the payment of all  management  bonuses  under the 2000 Bonus
     Plan.  Participation in the Plan is required for all employees  holding the
     office of Vice  President  and above and is  voluntary  for all other bonus
     eligible  management.  Application of the Plan to  international  personnel
     varies depending upon the international location.

     The  Plan  and  its   Prospectus  and  a  current  list  of  the  countries
     participating under the Restricted Stock Ownership Plan may be found on the
     intranet at the Legal Department's web page.

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<PAGE>
                             SCHEDULE OF PARTICULARS
                          FOR NAMED EXECUTIVE OFFICERS
                              RE: 2000  BONUS PLAN

                    SECTION  II  -  INDIVIDUAL  WEIGHTING
                    -------------------------------------
NAMED EXECUTIVE      OPERATING  BUSINESS UNIT  CUSTOMER       EMPLOYEE
-------------------             -------------  -------------  --------------
OFFICER              INCOME     PROFIT PLAN    SATISFACTION   SATISFACTION
-------------------  ---------  -------------  --------------  -------------

DAVID T. BAILEY          50%             40%              5%             5%
STEPHEN MORRISON         70              20               5%             5%
MICHAEL W. RISLEY        50              40               5%             5%
TIMOTHY V. WILLIAMS      70              20               5%             5%
G. LARRY WILSON         100               -               -              -

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<PAGE>

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