Document:

Exhibit 10.80

Exhibit 10.80

SECOND AMENDMENT TO

LOAN AGREEMENT

This SECOND AMENDMENT TO LOAN AGREEMENT, dated as of July ___, 2008, is between RZB FINANCE LLC
(“RZB”) and Rio Vista Energy Partners L.P. (the “Borrower”).

W I T N E S S E T H:

WHEREAS, RZB and the Borrower are parties to a Loan Agreement dated as of July 26, 2007 (as
amended, supplemented or otherwise modified from time to time, the “Loan Agreement”; capitalized
terms used herein having the meanings ascribed thereto in the Loan Agreement unless otherwise
defined herein); and

WHEREAS, the Borrower and RZB desire to amend the Loan Agreement in several respects.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

Section 1. Amendments.

The Loan Agreement is hereby amended, effective on the Effective Date referred to in Section 2
hereof, by amending and restating the definition of Maturity Date as follows:

““Maturity Date” means August 29, 2008.”

Section 2. Effectiveness of Amendment.

This Second Amendment shall become effective on the date (the “Effective Date”) on which RZB
shall have received (a) this Second Amendment duly executed by all parties hereto, (b) consents
substantially in the form attached hereto (the “Consents”) duly executed by the Guarantors and
subordinated creditors (the names of which are set forth on the Consents), as applicable and (c)
such partnership or other authorization documents of the Borrower, the Guarantors and such
subordinated creditors, as required by RZB, and opinions of counsel as RZB shall request.

 

 

 

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

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

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

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

(i) the representations and warranties of the Borrower set forth
in the Loan Agreement and in the other Loan Documents are true and correct
(except that for the purpose of this Section 3(c)(i), the references to
“Subsidiaries” in subsections 4.3(c) (second reference only), 4.8, 4.9, 4.10,
4.12, 4.15, 4.18 and 4.19 shall be deemed to be references to “Restricted
Subsidiaries”),

(ii) no Default or Event of Default has occurred and is continuing; and

(iii)
none of the Borrower or any Guarantor is (or will be at any
time) a party to any Related Contract (as defined in the MSA).

(d) The Borrower further represents and warrants to RZB that (i) Northport Production Company
(“NPC”) has agreed with the Borrower and Rio Vista Penny LLC (“Penny”) that it will be replaced as
the Manager under and as defined in the MSA, (ii) on or prior to the Maturity Date (as extended by
this Second Amendment), NPC will be replaced as Manager under and as defined in the MSA, on terms
and conditions and subject to documentation (including, without limitation, a subordination
agreement) satisfactory to RZB in its sole discretion, (iii) neither it nor Penny has incurred any
Indebtedness or other obligations owing to NPC under the MSA or otherwise and (iv) neither it nor
Penny will, on or after the date hereof, incur any Indebtedness or other obligations owing to NPC
under the MSA or otherwise.

Section 4. New York Law.

This Second Amendment shall be construed in accordance with and governed by the laws of the
State of New York, without regard to New York conflicts of laws principles.

 

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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.

Section 6. Counterparts.

This Second 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 agreement. Signatures of the parties may appear on separate
counterparts.

 

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

	 	 	 	 	 	 	 	 	 	 	 
	RIO VISTA ENERGY PARTNERS L.P.	 	RZB FINANCE LLC
	 
	 	 	 	 	 	 	 	 	 	 
	By: Rio Vista GP LLC, as its General Partner	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ian Bothwell	 	By:	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ian Bothwell	 	 	 	Name:
	 

	 	 	 	Title:	  	Acting Chief Executive Officer	 	 	 	Title:
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	 	 	Title:

 

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GUARANTOR CONSENT

Each of the undersigned hereby (i) consents to the terms and provisions of the Second
Amendment to Loan Agreement to which this Guarantor Consent is attached (the “Second Amendment”;
capitalized terms used herein having the meanings given to them in the Second Amendment unless
otherwise defined herein) and (ii) affirms the terms, conditions and the undersigned’s obligations
under and in connection with the guarantees made by each of the undersigned in favor of RZB (the
“Guarantees”) and confirms that its obligations thereunder are and shall remain in full force and
effect and apply to the Loan Agreement as amended by the Second Amendment.

Each of the undersigned further acknowledges and agrees that the Existing Security Agreements
(as defined below) and the liens and security interests granted under the Existing Security
Agreements shall remain in full force and effect, shall continue without interruption as security
for all of such undersigned’s present and future liabilities and obligations to RZB under the
Guarantees and each of the other Loan Documents to which it is a party and shall not be limited or
impaired by the Second Amendment. “Existing Security Agreements” shall mean (i) the General
Security Agreement dated February 13, 2002 between Penn Octane Corporation and RZB (as amended,
supplemented or otherwise modified from time to time), (ii) the General Security Agreement dated
September 15, 2004 between Rio Vista Operating Partnership L.P. and RZB (as amended, supplemented
or otherwise modified from time to time), (iii) the Mortgage, Deed of Trust and Security Agreement
dated as of July 26, 2007 (as amended, supplemented or otherwise modified from time to time),
recorded on July 27, 2007 in Hopewell County, Virginia (instrument #070002627) executed by Regional
Enterprises, Inc. and (iv) the Assignment of Leases and Rents dated July 26, 2007 (as amended,
supplemented or otherwise modified from time to time), recorded on July 27, 2007 in Hopewell
County, Virginia (instrument #070002628) executed by Regional Enterprises, Inc.

	 	 	 	 	 
	PENN OCTANE CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Ian Bothwell
 

Name: Ian Bothwell
	 	 
	 

	 	Title:   Acting Chief Executive Officer	 	 
	 
	 	 	 	 
	RIO VISTA OPERATING PARTNERSHIP L.P.	 	 
	 
	 	 	 	 
	By: Rio Vista Operating GP LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Ian Bothwell
 

Name: Ian Bothwell
	 	 
	 

	 	Title:   Acting Chief Executive Officer	 	 
	 
	 	 	 	 
	REGIONAL ENTERPRISES, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Ian Bothwell
 

Name: Ian Bothwell
	 	 
	 

	 	Title:   Acting Chief Executive Officer	 	 

 

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SUBORDINATED CREDITOR CONSENT

Each of the undersigned hereby:

(i) reaffirms the terms, conditions and such undersigned’s obligations under and in connection
with (a) the Agreement of Subordination and Assignment dated November 18, 2007 (as amended,
supplemented or otherwise modified from time to time, the “Penny-Northport Subordination
Agreement”) executed by Rio Vista Penny LLC, Northport Production Company
and the Borrower and (b) the Agreement of Subordination and Assignment dated November ___, 2007 (as amended, supplemented or otherwise modified from time to time, the “Moores Subordination
Agreement” and together with the Penny-Northport Subordination Agreement, the “Subordination
Agreements”) executed by Gary Moores and the Borrower; and

(ii) confirms that the Liabilities (as defined in each of the Subordination Agreements)
include, without limitation, all Liabilities arising from Loans (as defined in the Loan Agreement)
and other extensions of credit made by RZB after giving effect to the Second Amendment to Loan
Agreement to which this Subordinated Creditor Consent is attached (the “Second Amendment”;
capitalized terms used herein having the meanings given to them in the Second Amendment unless
otherwise defined herein).

	 	 	 	 	 	 	 
	RIO VISTA PENNY LLC	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ian Bothwell
 

Name: Ian Bothwell
	 	 	 	 
	 

	 	Title:   President/Manager	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Gary Moores	 	 	 	Witness as to signature of Gary Moores

 

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RIO VISTA PENNY LLC

OFFICER’S CERTIFICATE

THIS CERTIFICATION is made in connection with certain transactions contemplated by that
certain Loan Agreement dated July 26, 2007, by and between RZB Finance LLC and Rio Vista Energy
Partners L.P. (the “Partnership”), whereby Rio Vista Penny LLC (the “Company”) has been asked to
subordinate certain amounts owed to it by the Partnership pursuant to an Agreement of
Subordination and Assignment dated November 18, 2007, and the holders party thereto from time to
time, including:

(i) that certain Second Amendment to Loan Agreement (the “Second Amendment”) by and between
RZB Finance LLC and Rio Vista Energy Partners L.P.; and

(ii) that certain Subordinated Creditor Consent by which the Company consents to the terms
and conditions of the Second Amendment; and

I, Ian Bothwell, hereby certify that I am the sole member of the Company and that I am
authorized to execute and deliver this Certificate for and on behalf of the Corporation, and I
hereby certify further as follows:

1. Attached hereto as Exhibit A is a true, correct and complete copy of the duly adopted
resolutions of the Members and the Managers of the Company dated effective as of July 17, 2008,
authorizing the execution, delivery and performance of the Subordinated Creditor Consent by the
Company and the consummation of the transactions contemplated thereby. Such resolutions have not
been amended, modified or rescinded and remain in full force and effect as of the date hereof.

2. The current officer of the Company and his authorized signature are as follows:

	 	 	 	 	 	 	 
	Ian Bothwell

	 	Manager
	 	/s/ Ian Bothwell
 

	 	 

IN WITNESS WHEREOF, I have executed this Certificate for and on behalf of the Company
effective this 17th day of July 2008.

	 	 	 	 	 
	 	RIO VISTA PENNY LLC

 	 
	 	By:  	/s/ Ian Bothwell
 	 
	 	 	Name:  	Ian Bothwell 	 
	 	 	Title:  	Manager 	 

 

 

 

	 	 	 	 	 

Resolutions of the Board of Directors

 

 

 

REGIONAL ENTERPRISES, INC.

OFFICER’S CERTIFICATE

THIS CERTIFICATION is made in connection with the transactions contemplated by the Second
Amendment to Loan Agreement dated as of July 26, 2007 (the “Amendment”), by and between Rio Vista
Energy Partners L.P., a Delaware limited partnership (“RVEP”), and RZB Finance LLC, a Delaware
limited liability company (“RZB”).

I, Ian T. Bothwell, hereby certify that I am the duly appointed Acting Chief Executive
Officer of Regional Enterprises, Inc., a Virginia corporation (the “Corporation”), and that I am
authorized to execute and deliver this Certificate for and on behalf of the Corporation, and I
hereby certify further as follows:

1. Attached hereto as Exhibit A is a true, correct and complete copy of the duly adopted
resolutions of the Corporation dated effective as of July 17, 2008, consenting to the execution,
delivery and performance of the Amendment and the consummation of the transactions
contemplated thereby. Such resolutions have not been amended, modified or rescinded and remain in
full force and effect as of the date hereof.

2. The current officer of the Corporation and his authorized signature are as follows:

	 	 	 	 	 	 	 
	Ian T. Bothwell

	 	Acting Chief Executive Officer
	 	/s/ Ian T. Bothwell
 

	 	 

3. The organizational and formation documents of the Corporation that had previously been
delivered to RZB have not been amended since the date of delivery of such documents to RZB, and
such documents remain in full force and effect.

IN WITNESS WHEREOF, I have executed this Certificate for and on behalf of the Corporation
effective this 17th day of July, 2008.

	 	 	 	 	 
	 	REGIONAL ENTERPRISES, INC.

 	 
	 	By:  	/s/   Ian T. Bothwell
 	 
	 	 	Name:  	Ian T. Bothwell 	 
	 	 	Title:  	Acting Chief Executive Officer 	 

 

 

 

	 	 	 	 	 

The undersigned, Vice President of Regional Enterprises, Inc., does hereby certify that
Ian T. Bothwell is the duly appointed Acting Chief Executive Officer of Regional Enterprises,
Inc., and the signature appearing above is his genuine signature.

IN WITNESS WHEREOF, I have executed this Certificate  for and  on behalf of
Regional Enterprises effective this 17th day of July, 2008.

	 	 	 	 	 
	 	REGIONAL ENTERPRISES, INC.

 	 
	 	By:  	 
 	 
	 	 	Name:  	Dan Mathews 	 
	 	 	Title:  	Vice President 	 

 

 

 

	 	 	 	 	 

Exhibit A

Resolutions of Sole Director

 

 

 

PENN OCTANE CORPORATION

OFFICER’S CERTIFICATE

THIS CERTIFICATION is made in connection with the transactions contemplated by the Second
Amendment to Loan Agreement dated as of July 26, 2007 (the “Second Amendment”), by and between
Rio Vista Energy Partners L.P., a Delaware limited partnership (“RVEP”), and RZB Finance LLC, a
Delaware limited liability company (“RZB”).

I, Richard R. Canney, hereby certify that I am the duly appointed Chairman of the Board of
Directors of POCC, and that I am authorized to execute and deliver this Certificate for and on
behalf of POCC, and I hereby certify further as follows:

1. Attached hereto as Exhibit A is a true, correct and complete copy of the duly adopted
resolutions of the Board of Directors of the POCC dated effective as of July 17, 2008, authorizing
the consent to and the execution, delivery and performance of the Guarantor Consent to the Second
Amendment by POCC and the consummation of the transactions contemplated thereby. Such resolutions
have not been amended, modified or rescinded and remain in full force and effect as of the date
hereof.

2. The current officer of the Corporation and his authorized signature are as follows:

	 	 	 	 	 	 	 
	Ian T. Bothwell

	 	Acting Chief Executive Officer, 
Acting President, Vice President,
 Chief Financial Officer, Treasurer 

and Assistant Secretary
	 	/s/ Ian T. Bothwell
 

	 	 

3. The organizational and formation documents of the Corporation that had previously been
delivered to RZB have not been amended since the date of delivery of such documents to RZB, and
such documents remain in full force and effect.

 

 

 

IN WITNESS WHEREOF, I have executed this Certificate for and on behalf of POCC effective this
17th day of July, 2008.

	 	 	 	 	 
	 	PENN OCTANE CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	Richard R. Canney 	 
	 	 	Title:  	Chairman of the Board of Directors 	 

 

 

 

The undersigned, Assistant Secretary of POCC, does hereby certify that Richard R. Canney is
the duly appointed Chairman of the Board of Directors of POCC, and the signature appearing above is
his genuine signature.

IN WITNESS WHEREOF, I have executed this Certificate for and on behalf of POCC effective this
17th day of July, 2008.

	 	 	 	 	 
	 	PENN OCTANE CORPORATION

 	 
	 	By:  	/s/ Ian T. Bothwell
 	 
	 	 	Name:  	Ian T. Bothwell  	 
	 	 	Title:  	Assistant Secretary 	 

 

 

 

	 	 	 	 	 

Exhibit A

Resolutions of the Board of DirectorExhibit 10.81

Exhibit 10.81

THIRD AMENDMENT TO

LOAN AGREEMENT

This THIRD AMENDMENT TO LOAN AGREEMENT dated as of December 
 _____, 2008 (this “Third Amendment”),
is between RZB FINANCE LLC (the “Lender”) and Rio Vista Energy Partners L.P. (the “Borrower”).

W I T N E S S E T H:

WHEREAS, Lender and the Borrower are parties to a Loan Agreement dated as of July 26, 2007 (as
amended, supplemented or otherwise modified from time to time, the “Loan Agreement”; capitalized
terms used herein having the meanings ascribed thereto in the Loan Agreement unless otherwise
defined herein); and

WHEREAS, the Borrower has requested certain amendments to the Loan Agreement, and Lender is
willing to agree to such amendments, subject to the terms and conditions hereof.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

Section 1. Amendments.

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

(a) Section 1.1 is amended as follows:

(i) The definition of “Applicable Base Rate Margin” is amended and restated in its
entirety as follows:

““Applicable Base Rate Margin” means, at any date, seven percent (7.00%).”

(ii) The definition of “Base Rate” is amended and restated in its entirety as follows:

““Base Rate” means a variable rate of interest per annum equal to the higher of (a) the
rate of interest from time to time established by JPMorgan Chase Bank, N.A. (or any
successor) as its “base rate” or its “prime rate” at its principal office in New York
City, (b) the Federal Funds Effective Rate plus one-half of one percent (.50%) or (c)
the COF Rate plus one percent (1%). Such prime rate or base rate is merely a reference
rate and may not necessarily represent the lowest or best rate actually charged to any
customer by Lender or JPMorgan Chase Bank, N.A. (or any successor).”

 

 

 

(iii) The definition of “COF Rate” is inserted in its proper alphabetical place as
follows:

““COF Rate” means a rate per annum equal to Lender’s overnight cost of funds using such funding
sources (including, without limitation, Lender’s affiliated banks and companies) as Lender shall
determine from time to time in its sole discretion.”

(iv) The definition of “Maturity Date” is amended and restated in its entirety as
follows:

““Maturity Date” means February 27, 2009.”

(vv) The definition of “Net Worth” is inserted in its proper alphabetical place
as follows:

““Net Worth” means at any time as to any Person as of the date of determination thereof, the
excess of consolidated total assets over consolidated total Liabilities and adjusted as follows
(without duplication):

(i) less, all amounts representing any write-up in the book value of any assets of
such Person or its Subsidiaries resulting from a revaluation thereof subsequent to December 31,
2007;

(ii) less, to the extent otherwise included in the computation of Net Worth, any
subscriptions receivable;

(iii) less, investments in and receivables and other obligations from employees,
members, Subsidiaries (including, without limitation, the Unrestricted Subsidiaries) and
other Affiliates;

(iv) less, if a positive amount, (A) the sum of all deferred charges, deferred tax
assets and prepaid expenses minus (B) all deferred tax liabilities; and

(v) plus, if a negative amount, the absolute value of (A) the sum of all deferred
charges, deferred tax assets and prepaid expenses minus (B) all deferred tax liabilities.”

 

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(b) New Section 2.2(F) is inserted as follows (after Section 2.2(E)):

“(F) COF Rate. If the Base Rate shall be determined at any time by
reference to the COF Rate, Lender shall notify Borrower by telephone, email or any other means
promptly after determining the COF Rate (the “COF Notice”). In the event that Borrower shall
dispute such COF Rate, Borrower shall deliver to Lender a notice of dispute (the “Dispute
Notice”) within 5 days after Borrower receives the
COF Notice, and Lender shall deliver to Borrower within 10 days thereafter copies of quotations
received by Lender reflecting Lender’s cost of funds or copies of the written communications
from its affiliate establishing Lender’s cost of funds, as applicable. If Borrower shall not
deliver a Dispute Notice within such 5 day period set forth above, Borrower shall
automatically, without further action, irrevocably and unconditionally waive and release any
right to challenge or dispute the cost of funds set forth in the applicable COF Notice, and
such cost of funds shall be final, conclusive and binding on Borrower.

If any such dispute shall exist and shall not have been resolved, Borrower acknowledges that
Lender may demand immediate payment of the Loan and the other Obligations, without limiting
Lender’s right to demand payment of the Obligations at any time for any reason.”

(c) New Section 5.1(J) is inserted as follows (after Section 5.1(1)):

“(J) Monthly Financials. As soon as available, and in any event within thirty
(30) days after the end of each month, Borrower will cause to be delivered to Lender
consolidated and consolidating balance sheets and statements of income and cash flows of Merger
Sub and its Subsidiaries as at the end of and for such month. Such financial statements shall
be presented in reasonable detail and shall be certified by the chief financial officer (or
other officer acceptable to Lender in its sole discretion) of Merger Sub to the effect that
such information is true and complete and fairly presents the results of operations and
financial condition of Merger Sub and its Subsidiaries as at the dates and for the periods
indicated.”

(d) Section 5.12 is deleted and replaced with the following:

“5.12 Intentionally omitted.”

(e) New Section 5.14 is hereby inserted as follows (after Section 5.13):

“5.14 Invoices. Borrower shall, and shall cause Merger Sub to, include on
all of their invoices a legend stating that the accounts receivable and amounts due or to
become due under such invoice have been assigned to Lender and instructing account debtors to
make payment to Lender.”

(f) Section 7.1 is amended as follows:

(i) Section 7.1(C) is amended by deleting “or 5.12” and replacing it with “or 5.14”.

(ii) Section 7.1(O) is amended by deleting “.” at the end thereof and replacing it with
“; or”.

 

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(iii) Section 7.1(P) is amended by deleting “.” at the end thereof and
replacing it with “; or”.

(iv) New Section 7.1(Q) is inserted after Section 7.1(P) as follows:

“(Q) Net Worth. At any time, Net Worth of POC, on a consolidated basis,
shall be less than $3,300,000.”

(g) Notwithstanding anything to the contrary contained in the Loan Agreement or any
of the other Loan Documents, (i) no Loans shall be LIBOR Loans, (ii) the Borrower shall
not convert any Loans into LIBOR Loans under any circumstance and (iii) any LIBOR Loans
outstanding on the date hereof shall be immediately and automatically converted into
Base Rate Loans on the date hereof and the Borrower shall pay to Lender any
breakfunding and other costs in connection therewith.

Section 2. Effectiveness of Amendment.

This Third Amendment shall become effective on the date (the “Effective Date”) on which
Lender shall have received:

(a) this Third Amendment duly executed by all parties hereto;

(b) the consents substantially in the form attached hereto (the “Consents”) duly executed by
the Guarantors and subordinated creditors (the names of which are set forth on the Consents), as
applicable;

(c) an amendment to the Mortgage, Deed of Trust and Security Agreement dated as of July 26,
2007 (as amended, supplemented or otherwise modified from time to time) duly executed and delivered
by Merger Sub, in form and substance acceptable to Lender in its sole discretion;

(d) payment from the Borrower of a non-refundable, fully-earned closing fee in cash in an
amount equal to $88,721.13 (which amount includes all accrued and unpaid interest on the Loan
through the date hereof);

(e) repayment of principal of the Loan in an amount of not less than $1,000,000 in cash or
irrevocable written instruction from the Borrower in form and substance satisfactory to Lender to
apply not less than $1,000,000 of cash collateral held by Lender as repayment of principal of the
Loan;

(f) the consolidated and consolidating balance sheets and statements of income and cash flows
of Merger Sub and its Subsidiaries as at the end of and for the month ended October 31, 2008, in
reasonable detail and certified by the chief financial officer (or other officer acceptable to
Lender in its sole discretion) of Merger Sub to the effect that such information is true and
complete and fairly presents the results of operations and financial condition of Merger Sub and
its Subsidiaries as at and for the month ended October 31, 2008;

 

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(g) a calculation of Net Worth of POC as of September 30, 2008 with supporting written detail
in form and substance acceptable to Lender in its sole discretion, showing Net Worth of POC as of
such date (on a consolidated basis) of not less than $3,300,000, certified as true and correct by
the chief financial officer of the Borrower;

(h) an agreement of subordination and assignment, duly executed and delivered by Rio
Vista Operating LLC, in form and substance satisfactory to Lender in its sole discretion; and

(i) such partnership or other authorization documents of the Borrower, the Guarantors and
subordinated creditors, as required by Lender, and opinions of counsel as Lender shall request.

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

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

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

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

(i) the representations and warranties of the Borrower set
forth in the Loan Agreement and in the other Loan Documents are true and
correct (except that for the purpose of this Section 4(c)(i), the references to
“Subsidiaries” in subsections 4.3(c) (second reference only), 4.8, 4.9, 4.10,
4.12, 4.15, 4.18 and 4.19 shall be deemed to be references to “Restricted
Subsidiaries”),

(ii)
no Default or Event of Default has occurred and is continuing; and

(iii)
none of the Borrower or any Guarantor is (or will be at
any time) a party to any Related Contract (as defined in the MSA).

 

- 5 -

 

(d) The Borrower hereby represents and warrants to Lender, and by their execution of the
Guarantor Consent attached hereto, the Guarantors hereby represent and warrant to Lender that:

(i) as of the date hereof, the principal amount outstanding of the Loan is
$5,000,000;

(ii) interest and fees have accrued thereon as provided in the Loan Agreement; and

(iii) the obligation of the Borrower and the Guarantors to repay the Loan and the other
Obligations, together with all interest and fees accrued thereon, is absolute and unconditional,
and there exists no right of set off or recoupment, counterclaim or defense of any nature
whatsoever to the payment of the Obligations.

Section 4. New York Law.

This Third Amendment shall be construed in accordance with and governed by the laws of the
State of New York, without regard to New York conflicts of laws principles.

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.

Section 6. Counterparts.

This Third 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 agreement. Signatures of the parties may appear on separate
counterparts.

 

- 6 -

 

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

	 	 	 	 	 	 	 	 	 	 	 
	RIO VISTA ENERGY PARTNERS L.P.	 	RZB FINANCE LLC
	 
	 	 	 	 	 	 	 	 	 	 
	By: Rio Vista GP LLC, as its General Partner	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Ian Bothwell	 	By:	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ian Bothwell	 	 	 	Name:
	 

	 	 	 	Title:	  	Acting CEO	 	 	 	Title:
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	 	 	Title:

 

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GUARANTOR CONSENT

Each of the undersigned hereby (i) consents and agrees to the terms and provisions of the
Third Amendment to Loan Agreement to which this Guarantor Consent is attached (the “Third
Amendment”; capitalized terms used herein having the meanings given to them in the Third Amendment
unless otherwise defined herein) and (ii) affirms the terms, conditions and the undersigned’s
obligations under and in connection with the Existing Guarantees (as defined below) and confirms
that its obligations thereunder are and shall remain in full force and effect and apply to the
Loan Agreement as amended by the Third Amendment. “Existing Guarantees” shall mean (i) the
Guarantee & Agreement dated as of July 26, 2007 (as amended, supplemented or otherwise modified
from time to time) between Penn Octane Corporation (“POC”) and Lender, (ii) the Guarantee &
Agreement dated as of July 26, 2007 (as amended, supplemented or otherwise modified from time to
time) between Rio Vista Operating Partnership L.P. (“RVOP”) and Lender and (iii) the Guarantee &
Agreement dated as of July 26, 2007 (as amended, supplemented or otherwise modified from time to
time) between Regional Enterprises, Inc. (“Regional”) and Lender.

Each of the undersigned further acknowledges and agrees that the Existing Security Agreements
(as defined below) and the liens and security interests granted under the Existing Security
Agreements shall remain in full force and effect, shall continue without interruption as security
for all of such undersigned’s present and future liabilities and obligations to Lender under the
Existing Guarantees and each of the other Loan Documents to which it is a party and shall not be
limited or impaired by the Third Amendment. “Existing Security Agreements” shall mean (i) the
General Security Agreement dated February 13, 2002 between POC and Lender (as amended, supplemented
or otherwise modified from time to time), (ii) the General Security Agreement dated September 15,
2004 between RVOP and Lender (as amended, supplemented or otherwise modified from time to time),
(iii) the Mortgage, Deed of Trust and Security Agreement dated as of July 26, 2007 (as amended,
supplemented or otherwise modified from time to time), recorded on July 27, 2007 in Hopewell
County, Virginia (instrument #070002627) executed by Regional, (iv) the Assignment of Leases and
Rents dated July 26, 2007 (as amended, supplemented or otherwise modified from time to time),
recorded on July 27, 2007 in Hopewell County, Virginia (instrument #070002628) executed by Regional
and (v) the General Security Agreement dated July 26, 2007 between Regional and Lender (as amended,
supplemented or otherwise modified from time to time).

	 	 	 	 	 	 	 
	PENN OCTANE CORPORATION	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/  Ian Bothwell	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Ian Bothwell	 	 
	 

	 	Title:	 	Acting CEO	 	 

 

- 8 -

 

RIO VISTA OPERATING PARTNERSHIP L.P.

By: Rio Vista Operating GP LLC

	 	 	 	 	 	 	 
	By:	 	/s/ Ian Bothwell	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Ian Bothwell	 	 
	 

	 	Title:	 	 	 	 

	 	 	 	 	 	 	 
	REGIONAL ENTERPRISES, INC.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Ian Bothwell	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Ian Bothwell	 	 
	 

	 	Title:	 	President	 	 

 

- 9 -

 

SUBORDINATED CREDITOR CONSENT

The undersigned hereby:

(i) reaffirms the terms, conditions and the undersigned’s obligations under and in connection
with the Agreement of Subordination and Assignment dated November 18, 2007 (as amended,
supplemented or otherwise modified from time to time, the “Subordination Agreement”) executed by
Rio Vista Penny LLC, Northport Production Company and the Borrower; and

(ii) confirms that the Liabilities (as defined in the Subordination Agreement) include,
without limitation, all Liabilities arising from Loans (as defined in the Loan Agreement) and other
extensions of credit made by Lender after giving effect to the Third Amendment to Loan Agreement to
which this Subordinated Creditor Consent is attached (the “Third Amendment”; capitalized terms used
herein having the meanings given to them in the Third Amendment unless otherwise defined herein).

	 	 	 	 	 	 	 
	RIO VISTA PENNY LLC	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Ian Bothwell	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

- 10 -

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