Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.57

FIRST AMENDMENT TO

LINE LETTER

This FIRST AMENDMENT TO LINE LETTER, dated as of July 26, 2007, is between RZB FINANCE LLC
(“RZB”) and Penn Octane Corporation (the “Borrower”).

W I T N E S S E T H:

WHEREAS, RZB and the Borrower are parties to an Amended and Restated Line Letter dated as of
September 15, 2004 (as amended, the “Line Letter”; capitalized terms used herein having the
meanings ascribed thereto in the Line Letter unless otherwise defined herein);

WHEREAS, the Borrower and RZB desire to amend the Line Letter in several respects;

NOW, THEREFORE, the parties hereto hereby agree as follows:

Section 1. Amendments.

The Line Letter is hereby amended, effective on the Effective Date referred to in Section 2
hereof, as follows:

(a) The following clause is added at the end of the first sentence of Section 1(a) of the Line
Letter after the words “at any one time outstanding”:

“provided that such amount shall be reduced by the outstanding principal amount from
time to time of the loan made by RZB to Rio Vista Energy Partners L.P. on or about July 26,
2007 in the original principal amount of $5,000,000 (the “RV Loan”). Accordingly, upon RZB
making the RV Loan, the amount of the Credit Facility will be reduced to Ten Million Dollars
($10,000,000) but such amount shall, subject to RZB’s discretion as described below, be
increased dollar for dollar by the principal amount of repayments of the RV Loan,
provided such increase shall occur only if such repayments shall be made when no
event of default under the agreements relating to the RV Loan shall have occurred and no
demand for payment of the RV Loan shall have been made.”

Section 2. Effectiveness of Amendment.

This First Amendment shall become effective on the date (the “Effective Date”) on which RZB
shall have received (a) this First Amendment duly executed by all parties hereto and (b) such
corporate authorization documents of the Borrower as RZB shall request.

 

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Section 3. Effect of Amendment; Ratification; Representations; etc.

(a) On and after the date hereof, when counterparts of this First Amendment shall have been
executed by all parties hereto, this First Amendment shall be a part of the Line Letter, all
references to the Line Letter in the Line Letter and the other Loan Documents shall be deemed to
refer to the Line Letter as amended by this First Amendment, and the term “this Agreement”, and
the words “hereof”, “herein”, “hereunder” and words of similar import, as used in the Line Letter,
shall mean the Line Letter as amended hereby.

(b) Except as expressly set forth herein, this First Amendment shall not constitute an
amendment, waiver or consent with respect to any provision of the Line Letter, as amended hereby,
and the Line Letter, as amended hereby, is hereby ratified, approved and confirmed in all respects.

(c) In order to induce RZB to enter into this First Amendment, the Borrower represents and
warrants to RZB that before and after giving effect to the execution and delivery of this First
Amendment:

	 	(i)	 	the representations and warranties of the Borrower set forth in
the Line Letter and in the other Loan Documents are true and correct, and

	 
	 	(ii)	 	no Event of Default or event or condition that, with the giving
of notice or passage of time or both, would constitute an Event of Default has
occurred and is continuing.

Section 4. New York Law.

This First Amendment shall be construed in accordance with and governed by the laws of the
State of New York applicable to agreements made and to be performed in said State.

Section 5. Severability.

If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest
extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in
such jurisdiction and shall be liberally construed in order to carry out the intentions of the
parties hereto as nearly as may be possible, and (ii) the invalidity or unenforceability of any
provision hereof in any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction.

 

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Section 6. Counterparts.

This First Amendment may be executed by the parties hereto individually or in any combination,
in one or more counterparts, each of which shall be an original and all of which shall together
constitute one and the same amendment. Signatures of the parties may appear on separate
counterparts.

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as
of the day and year first above written.

	 	 	 	 	 	 	 
	PENN OCTANE CORPORATION	 	RZB FINANCE LLC
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ian Bothwell
	 	By:
	 	/s/ Pearl Geffers
	 

	 	 
	 	 	 	 
	 

	 	Name: Ian Bothwell
	 	 	 	Name: Pearl Geffers
	 

	 	Title: Acting Chief Executive Officer
	 	 	 	Title: First Vice President
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Nancy Remini
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Nancy Remini
	 

	 	 	 	 	 	Title: Vice President

 

- 3 -Filed by Bowne Pure Compliance

 

Exhibit 10.58

DEBT ASSUMPTION AGREEMENT

THIS DEBT ASSUMPTION AGREEMENT (the “Agreement”) made as of the 26th day of
July, 2007, by and between Rio Vista Energy Partners L.P., a Delaware limited partnership
(“Parent”) and Regional Enterprises, Inc., a Virginia corporation (“Merger Sub”).

RECITALS:

Parent owns 100.00% of the issued and outstanding shares of capital stock of Merger Sub.

Merger Sub has acquired by merger all of the assets and liabilities of Regional Enterprizes,
Inc., a Virginia corporation (“Company”).

To consummate the merger with the Company, Merger Sub paid (or will pay) to the shareholders
of the Company the approximate sum of up to $9,000,000.

To finance the acquisition of the Company, Parent advanced to Merger Sub the sum of $500,000
as a capital contribution and the sum of $2,500,000 as a loan and Merger Sub became obligated for a
loan in the amount of $5,000,000 from RZB Finance LLC (“Lender”) made to Parent under Parent’s new
borrowing facility with the Lender (the “RZB Advance”), which Parent advanced to Merger Sub and
which is evidenced by the promissory note attached hereto (the “Debt Assumption Note”).

Notwithstanding the provisions of the Debt Assumption Note, Merger Sub and Parent intend for
Merger Sub to be primarily responsible for the RZB Advance and are entering into this Agreement to
formalize and document such intention, provided that this Agreement shall not limit or impair any
of RZB’s rights or remedies against Parent, Merger Sub or any other obligor.

AGREEMENT:

NOW, THEREFORE, in consideration of the premises and of the mutual covenants hereinafter set
forth, the parties hereto, intending to be legally bound, hereby agree as follows:

 

 

 

Notwithstanding the Debt Assumption Note:

1) Parent and Merger Sub agree that Primary responsibility for the repayment of the RZB
Advance shall be the sole obligation of Merger Sub, but the foregoing is not intended to and shall
not limit or impair any of RZB’s rights or remedies against Parent, merger Sub, or any other
obligor.;

2) All payments due and payable under the Debt Assumption Note shall be paid by Merger Sub
directly to Lender; and

3) Parent and Merger Sub agree to take commercially reasonable action to induce the Lender to
redraw the documents related to the RZB Advance to reflect this Agreement, but acknowledge that RZB
has no commitment or agreement to comply with any request to do so and maybe unwilling to do so.

This Debt Assumption Agreement shall terminate and be of no further force or effect on and
after the earlier of the date on which (i) the documents that evidence the RZB Advance are amended
to substitute Merger Sub for Parent as the primary obligor thereon, or (ii) Parent provides written
notification to Merger Sub that this Agreement is terminated. Termination shall not limit or
impair Merger Sub’s obligations under the Debt Assumption Note without the prior written consent of
RZB.

In Witness Whereof, this Debt Assumption Agreement is hereby executed and delivered this 26th
day of July, 2007.

	 	 	 	 	 	 	 
	RIO VISTA ENERGY PARTNERS L.P.	 	REGIONAL ENTERPRISES, INC.
	 
	 	 	 	 	 	 
	By:

	 	Rio Vista GP LLC, General Partner	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ian T. Bothwell
	 	By:
	 	/s/ Ian T. Bothwell
	 

	 	 
	 	 	 	 
	Title:

	 	Acting Chief Executive Officer
	 	Title:
	 	President

 

2Filed by Bowne Pure Compliance

 

Exhibit 10.59

DEBT ASSUMPTION NOTE

	 	 	 
	$5,000,000

	 	Hopewell, Virginia
	 

	 	July 26, 2007

FOR VALUE RECEIVED, the undersigned, Regional Enterprises, Inc., a Virginia corporation
(“Borrower”), hereby unconditionally promises to pay to the order of Rio Vista Energy Partners
L.P., a Delaware limited partnership (the “Lender”), at c/o RZB Finance LLC, 1133 Avenue of the
Americas, New York, NY 10036, or at such other place as Lender may direct in writing, the principal
amount of Five Million United States Dollars (US$5,000,000) payable on (i) DEMAND (the “Maturity
Date”), as such date may be extended by the Lender, or (ii) the date of any payment made under the
Note, as hereinafter defined.

This Debt Assumption Note is issued pursuant to a Debt Assumption Agreement dated as of even
date herewith between the Lender and Borrower. Until the termination of the Debt Assumption
Agreement, all payments due to the Lender under this Debt Assumption Note shall be paid to RZB
Finance LLC.

This Debt Assumption Note, together with interest hereon and other charges due, shall be due
and payable on the same dates and in the same amounts as payments (including mandatory prepayments)
are due under, and shall bear interest at the same rate or rates as set forth in, that certain Note
of even date herewith in the original principal amount of $5,000,000 made by the Lender and payable
to the order of RZB Finance LLC (as the same may be modified, extended or renewed, the “Note”),
issued by the Lender pursuant to the terms of a Loan Agreement of even date herewith between the
Lender and RZB Finance LLC (as the same may be modified, extended or renewed, the “Loan
Agreement”). Reference is hereby made to the Loan Agreement for provisions relating to interest
rates, prepayment, default, default interest and acceleration of the Note. In the event of any
modification or amendment to the Note (which shall include any note given in substitution,
extension, renewal or refinancing of the Note), Borrower agrees to execute and deliver to the
Lender a conforming amendment or modification to this Debt Assumption Note, or a conforming new
note in substitution, extension, renewal or refinancing of this Debt Assumption Note.

The final payment on the Maturity Date shall equal the entire principal balance outstanding
hereunder on such date, and Borrower agrees to pay interest on the unpaid principal amount hereof
for the period commencing on the date hereof until payment in full at the rates per annum and on
the dates set forth in the Note.

Interest on this Debt Assumption Note shall be computed on the daily principal balance on the
basis of a 360 day year for the actual number of days elapsed in the period during which it
accrues.

Borrower may, at any time upon not less than three (3) Business Days’ prior notice to Lender
prepay this Debt Assumption Note in whole or in part. Each prepayment shall be permanent and
irrevocable and shall be accompanied by a payment of all interest accrued through and including
such date.

 

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All prepayments provided for in this Debt Assumption Note shall be without premium or penalty.
All voluntary prepayments shall be in integral multiples of $50,000 or the outstanding principal
balance of this Debt Assumption Note. Once prepaid, whether in whole or in part, the prepaid
amount of this Note may not be reborrowed. All prepayments of this Debt Assumption Note or any
portion thereof shall be made together with payment of all interest accrued on the amount repaid
through the date of such prepayment. Prepayments of a LIBOR Loan (as defined in the Loan
Agreement) may be made only on the last day of the Interest Period (as defined in the Loan
Agreement) applicable to such Loan, unless Lender otherwise agrees.

Payments of both principal and interest on this Debt Assumption Note are to be made in United
States Dollars and in immediately available funds. Whenever any payment to be made hereunder shall
be stated to be due on a day that is not a Business Day, the payment may be made on the next
succeeding Business Day, and such extension of time shall be included in the computation of the
amount of interest or fees due hereunder.

This Debt Assumption Note may not be modified, amended, waived, extended, changed, discharged
or terminated orally or by any act or failure to act on the part of Borrower or the Lender, but
only by an agreement in writing signed by the party against whom enforcement of any modification,
amendment, waiver, extension, change, discharge or termination is sought.

Borrower shall pay all costs and expenses of collection, including, without limitation,
reasonable attorneys’ fees and disbursements, incurred by the Lender in connection with collection
or enforcement of this Debt Assumption Note.

BORROWER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING
DIRECTLY OR INDIRECTLY TO THE LOAN EVIDENCED HEREBY, THIS            DEBT ASSUMPTION            NOTE, OR THE
OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF LENDER, ITS OFFICERS, EMPLOYEES, DIRECTORS OR
AGENTS IN CONNECTION THEREWITH.

Except to the extent such waiver is prohibited by law, Borrower waives presentment,
demand and protest and notice of presentment, demand, protest and non-payment and any other notice
of any kind in connection with this Debt Assumption Note.

[Signature page follows]

 

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THIS DEBT ASSUMPTION NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS RULES PERTAINING TO CONFLICTS OF LAWS.

	 	 	 	 	 
	 	Regional Enterprises, Inc.

 	 
	 	By:  	/s/ Ian T. Bothwell
 	 
	 	Name:  	Ian T. Bothwell 	 
	 	Title:  	President 	 
	 

[Signature page to Debt Assumption Note]

 

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ALLONGE TO NOTE

This Allonge to a certain note (the “Debt Assumption Note”) dated July 26, 2007
in the original principal amount of $5,000,000.00 made by Regional Enterprises, Inc., a Virginia
corporation, and payable to the order of Rio Vista Energy Partners L.P., provides:

	 	 	 	 	 	 	 	 	 
	          PAY TO THE ORDER OF RZB FINANCE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Rio Vista Energy Partners L.P.,	 	 
	 	 	 	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Rio Vista GP LLC,	 	 
	 

	 	 	 	 	 	its sole general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By: By:
	 	/s/ Ian T. Bothwell
	 	Date: July 26, 2007
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Acting Chief Executive Officer	 	 

This Allonge shall be physically attached to the Debt Assumption Note

 

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