Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.63

September 12, 2007

Rio Vista Energy Partners L.P.

2121 Rosecrans Ave, Suite 3355

El Segundo, CA 90245

Attention: Mr. Ian Bothwell

			
	Re:	 	Asset Purchase Agreement between Transmontaigne Partners L.P. and Rio Vista Operating
Partnership L.P.

Dear Mr. Bothwell:

This Binding Letter of Intent (“Letter”) is made and entered into by and between
Transmontaigne Partners L.P., a Delaware limited partnership, (“TLP”) and Rio Vista Operating
Partnership L.P. (“RVOP”) and is effective and binding as of September 12, 2007 (the “Effective
Date”). Each of TLP and RVOP is sometimes individually referred to in this Letter as a “Party” and
collectively as the “Parties.”

TLP, either directly or through one or more affiliates, is interested in the purchase of two
liquefied petroleum gas (“LPG”) pipelines owned by RVOP and its affiliates that extend from
Brownsville, Texas to the US/Mexico border and the shares in three Mexican companies owned or
controlled by RVOP.

Subject to the terms and conditions set forth herein, TLP proposes to purchase for an
aggregate purchase price of $10,500,000 to be paid as provided herein (a) the United States
portion of the two pipelines from the Brownsville, Texas terminal to the United States
border (the “US Pipelines”) with all associated rights-of-way and easements (the “US
Easements”) and (b) all of the outstanding equity interests of Penn Octane de Mexico, S. de
R.L. de C.V. (“POM”), which holds the CRE permit, Termatsal, S. de R.L. de C.V.
(“Termatsal”), which owns the portion of the two pipelines that extend from the US border to
Matamoros, Mexico (the “Mexican Pipelines”) and Tergas, S. de R.L. de C.V. (“Tergas”), which
owns the Matamoros, Mexico terminal site (the “Mexican Terminal”).

POM and Termatsal are 100% owned subsidiaries of RVOP and Tergas is an affiliate of RVOP and
each of the three companies are organized under the laws of Mexico (collectively, the “Included
Subsidiaries”). The Mexican Pipelines, together with the US Pipelines, the US Easements, the
Included Subsidiaries and the Mexican Terminal, are collectively referred to as the “Assets.” The
foregoing transactions are referred to herein as the “Transaction.”

 

1

 

Upon the execution and delivery of this Letter by the Parties, and subject to the satisfactory
completion of mutually acceptable security agreements and other appropriate collateral
documentation, including, without limitation a mutually acceptable subordination
agreement from the RVOP lenders (collectively, the “Collateral Documentation”), TLP will
advance as a refundable deposit to RVOP an amount equal to $6,500,000 (the “Initial Deposit”),
which shall be repaid to TLP in the event the Transaction does not close prior to December 31,
2007. The obligation to repay the Initial Deposit shall be secured by valid, first priority
security interests in the US Pipelines, a collateral assignment of the US Easements, and a pledge
of the shares of the Included Subsidiaries. Subject to the satisfaction of the conditions set
forth herein and in definitive documentation referred to below, upon the closing of the
Transaction, the Initial Deposit and all amounts outstanding (including accrued interest) under the
Promissory Note issued by the Rio Vista Operating Partnership L.P. to TransMontaigne Product
Service Inc.’s in the principal amount of $1,000,000 (the “Pre-Existing Loan”), the maturity date
of which shall be extended to December 31, 2007, shall be repaid by RVOP with the net proceeds,
subject to Exhibit A, from the Transaction.

Commencing upon the Effective Date, the Parties agree to undertake good faith efforts to:

(1) negotiate a final, definitive written stock and asset purchase agreement incorporating the
terms and conditions set forth in Exhibit A attached to this Letter, the provisions set
forth in the paragraphs below and other terms and conditions acceptable to the Parties (the
“Agreement”);

(2) prepare and file all appropriate applications, forms or other documents necessary or
reasonably advisable in order to give effect to the Transaction, and

(3) negotiate and complete any additional necessary or reasonably advisable agreements or
other documents necessary to perfect TLP’s security interest. In the event the Agreement is
executed, then upon execution, the Agreement shall supersede this Letter to the extent so provided
in the Agreement.

Conduct of Business Pending Closing. From the date hereof until the earlier to occur of the
closing of the Transaction or the Termination Date (as defined below), RVOP agrees that it shall,
and it shall cause its respective subsidiaries and affiliates to, operate and maintain the Assets
in good working order, condition and repair in accordance with past practice and in compliance with
all applicable agreements, laws and regulations, and to maintain insurance on the Assets in
accordance with past practice.

Exclusivity and No-Shop. RVOP recognizes that TLP has expended and expects to expend
considerable money, resources and time performing its due diligence investigation of RVOP and the
Transaction. Accordingly, for a period commencing on the Effective Date and extending through
December 31, 2007 (“Exclusivity Period” ending on the “Termination Date”) RVOP will, and will use
its best efforts to cause the shareholders, directors, officers, employees, accountants, lawyers,
brokers, financial advisors, and any other agents or representatives (collectively, the
“Representatives”) of RVOP to,

	 	(a)	 	deal exclusively with TLP regarding the Transaction and immediately halt any
discussions with third parties regarding (i) the sale or purchase, directly or
indirectly, whether by merger, consolidation, stock or asset acquisition, or otherwise,
of all or any portion of the Assets, including all or any controlling portion of the
stock of RVOP; or (ii) any other transaction that could materially
affect the ability of RVOP to consummate the Transaction with TLP (any such
transaction being referred to hereinafter as a “Competing Transaction”); and

 

2

 

	 	(b)	 	not to hold any discussions with, provide any non-public information to, or
respond to any inquiry made by, any third party concerning a Competing Transaction or to
cooperate in any way with, agree to, assist or participate in, solicit, consider,
entertain, facilitate or encourage, any effort or attempt by any third party to do or
seek any of the foregoing. If at any time prior to the Termination Date, RVOP is
approached in any manner by a third party concerning a Competing Transaction (a
“Competing Party”), RVOP will promptly inform TLP regarding such contact and furnish TLP
with a copy of any inquiry or proposal, or, if not in writing, a written description
thereof, including the name of such Competing Party and the proposed purchase price and
the material terms of such proposal.

Publicity; Confidentiality. TLP and RVOP will not, and each of them will cause their
respective Representatives to not, make any public statement, press release, announcement or
disclosure concerning the terms or existence of this Letter, the Transaction or the discussions
relating thereto except as may be required by applicable law, public market listing rules, or as
otherwise may be agreed in writing by the Parties; provided, however, that any Party so required to
disclose any such information must use commercially reasonable efforts to consult with the other
Party and permit the other Party reasonable opportunity to obtain confidential treatment of the
terms of this Letter prior to making any such disclosure.

Access; Cooperation. Subject to the provisions of the confidentiality agreement dated October
2, 2006 (the “Confidentiality Agreement”), TLP will have the right to conduct a full financial,
accounting, tax, legal, operational, business and other investigation (the “Due Diligence
Investigation”) of RVOP, its affiliates and the Transaction and RVOP will cooperate fully with TLP
and its Representatives during such review and assist TLP and its Representatives with such review.
Without limiting the foregoing, RVOP will:

	 	(a)	 	afford, or cause to be afforded, to TLP and its Representatives access upon
reasonable notice to all personnel, facilities, properties, books, tax returns and other
tax-related information, accounts, data, records, contracts, intellectual property
filings and applications and other records and documents pertaining to RVOP, its
subsidiaries and the operation of the Assets (the “Business”) as TLP or its
Representatives may request,

	 	(b)	 	allow TLP and its Representatives to physically inspect the Assets and conduct
such environmental and other inspections of the Assets as requested by TLP or its
Representatives,

	 	(c)	 	arrange for and facilitate interviews with RVOP’s (and its subsidiaries’)
management, employees, contractors, customers, suppliers and other parties with
relations with RVOP and its subsidiaries, and

 

3

 

	 	(d)	 	promptly inform TLP in writing of any event or circumstance that RVOP becomes
aware of that could have a Material Adverse Effect (as defined in Exhibit A).

Refund of Initial Deposit. On December 31, 2007, or upon any earlier termination of this
Letter prior to the closing of the Transaction, RVOP shall refund the Initial Deposit plus interest
to TLP or if not refunded on such date, TLP shall have the right to offset $0.0120 per gallon in
transportation and terminaling fees that TLP or its affiliates currently pays to RVOP and its
affiliates.

Fees and Expenses. RVOP hereby represents that it has not engaged or authorized any broker,
finder or similar person who would be entitled to a commission or other similar fee in respect of
the Transaction, except those fees owed to Mr. Jerome Richter, which shall be the sole
responsibility of RVOP. Each Party will pay its own fees and expenses, including, but not limited
to, legal fees and expenses and the fees and expenses of any broker, finder or similar person
engaged by such Party.

Governing Law. This Letter and any disputes arising hereunder or related hereto will be
governed by and construed in accordance with the law of the State of Colorado.

Binding Agreement. The terms set forth in this Letter are binding upon TLP and RVOP whether
or not the Parties execute the Agreement with respect to the matters discussed herein. Prior
to the end of the Exclusivity Period, TLP may terminate this Letter upon not less than five
days prior written notice of termination upon a determination by TLP for any reason, including a
determination by TLP that the results of the Due Diligence Investigation are unsatisfactory in its
sole discretion. Following the Exclusivity Period, this Letter may be terminated by either
Party upon not less than five days prior written notice of termination. The provisions of this
paragraph and in the paragraphs captioned Publicity; Confidentiality, Refund of Initial Deposit,
Fees and Expenses, Governing Law and Liabilities and RVOP’s obligation to repay the Pre-Existing
Loan and the Initial Deposit shall survive termination of this Letter.

Liabilities. Not withstanding the foregoing, no Party will have any rights or claims against
the other Party or such Party’s affiliates, whether for damages, lost profits, consequential loss,
loss of opportunity, reimbursement of costs, expenses or payments or otherwise for failure to
continue negotiations concerning the Transaction, the early termination of this Letter by TLP or
the failure to enter into an Agreement, regardless of the circumstances or cause of any such
failure or termination.

Priority of Agreement. The Parties agree and acknowledge that this Letter supersedes any and
all prior written or oral agreements between the Parties and any of their affiliates concerning the
subject matter of this Letter; provided, that the Confidentiality Agreement will
remain in effect and will not be superseded by this Letter; and provided,
further, that in the event of any conflict between the Confidentiality Agreement
and this Letter, this Letter will prevail.

Amendment and Waiver. This Letter may be amended or modified only in writing executed by each
of the Parties. Any amendment or modification to this Letter will be effective or binding on a
Party only if it is in writing and signed by each of the Parties. No waiver of any
breach of this Letter will be deemed to constitute a continuing waiver of any subsequent
breach, whether of the same or of any other provision hereof.

 

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Assignment. The rights and obligations of either Party under this Letter may not be assigned
without the prior written consent of the other Party, except that TLP may assign its rights and
obligations under this Letter in whole or in part to any affiliate without the consent of RVOP.

Counterparts. This Letter may be executed in multiple counterparts, each of which will
constitute an original, but all of which when taken together will constitute a single agreement.
Delivery of an executed counterpart signature page of this Letter by facsimile, email or other
electronic transmission will be effective as delivery of a manually executed counterpart of this
Letter.

SIGNATURE PAGE FOLLOWS

 

5

 

	 	 	 	 	 
	 	 	Very truly yours,

Transmontaigne Partners L.P.

By TransMontaigne Operating GP L.L.C.,

its General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	William S. Dickey
	 

	 	Title:
	 	Executive Vice President & Chief Operating
Officer

	 	 	 	 	 
	Agreed and accepted,

Rio Vista Operating Partnership L.P.

By Rio Vista Operating GP LLC,

its General Partner	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:

	 	Ian T. Bothwell	 	 
	Title:

	 	Vice President, Chief Financial Officer	 	 

 

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Exhibit A

	 	 	 	 	 
	Purchase Price:	 	The aggregate purchase price for the Transaction shall be $10,500,000 (the “Purchase Price”), payable as follows:
	 
	 	 	 	 
	 	 	I. $6,500,000 of the Purchase Price shall be paid by TLP to RVOP as
the Initial Deposit immediately upon execution of the Letter and
TLP’s satisfaction with the Collateral Documentation. In the event
the Transaction does not close by December 31, 2007, the Initial
Deposit will be repaid as provided in the Letter.
	 	 	II. The remaining $4,000,000 of the Purchase Price shall be paid at
Closing, subject to the Conditions to TLP’s Obligations, as
outlined below.
	 
	 	 	 	 
	 

	 	 
	 	- adjusted for the net working capital of the Included Subsidiaries
as of the Closing Date, as determined in the Agreement.
	 
	 	 	 	 
	 

	 	 	 	- reduced by $500,000 (the “Holdback Amount”) for a period of one
year from the Closing Date as security for litigation issues
against the Included Subsidiaries and for reasonable and actual
out-of-pocket costs and expenses and liability that TLP or its
affiliates may suffer in respect of certain breaches of
representations, warranties, indemnifications or agreements of
RVOP.
	 
	 	 	 	 
	 

	 	 	 	- reduced by the outstanding balance of the Pre-Existing Loan
(including any accrued but unpaid interest through the Closing
Date).
	 
	 	 	 	 
	 

	 	 	 	- reduced by an interest charge at 8% on the $6,500,000 Initial
Deposit from the date of the Initial Deposit through the Closing
Date.
	 
	 	 	 	 
	 

	 	 	 	- reduced by due diligence findings as agreed upon by the Parties.
	 
	 	 	 	 
	Acquired Interest:	 	On the Closing Date, RVOP shall sell and deliver to TLP or its
designated affiliate, free and clear of all liens and encumbrances,
all of RVOP’s right, title and interest in (i) all outstanding
stock in the Included Subsidiaries and (ii) all of RVOP’s right
title and interest in the US Pipelines and US Easements.
	 
	 	 	 	 
	Closing Date:	 	The closing of the Transaction (the “Closing”) shall occur as soon
as reasonably possible, and the Parties anticipate that it will
occur no later than December 31, 2007 (the “Closing Date”).
	 
	 	 	 	 
	Conditions to
Obligations of Both
Parties:	 	The negotiation and execution of the Agreement containing mutually
acceptable covenants, representations and warranties,
indemnification and other terms customarily agreed upon in
transactions of this type.
	 
	 	 	 	 
	Survival of
Representations and
Warranties:	 	All representations and warranties of RVOP or TLP in the Agreement
or any other Transaction document shall survive the Closing for a
period to be agreed upon by the Parties in the definitive
agreements.
	 
	 	 	 	 
	Conditions to TLP’s
Obligations:	 	TLP’s obligation to consummate the Transaction shall be subject to
the satisfaction through Purchase Price reductions, or waiver by
TLP, of customary conditions precedent, including, without
limitation:
	 
	 	 	 	 
	 

	 	 	 	- there shall not have occurred and be continuing any Material
Adverse Effect (as defined below);
	 
	 	 	 	 
	 

	 	 	 	- RVOP shall have delivered to TLP all material consents required
(i) for the transfer of the Assets and (ii) for the consummation of
the Transaction;

 

A-1

 

	 	 	 	 	 
	 

	 	 	 	- Board approval by the Parties;
	 
	 	 	 	 
	 

	 	 	 	- Satisfactory completion of a due diligence inspection, including
environmental due diligence, of the Assets (including asset
integrity due diligence) and all associated equipment, licenses and
permits; review of operations, maintenance, environmental and
financial records (including, but not limited to: the current
status on the U.S. and Mexican Pipelines right of way, title to the
Assets, the transferability of the CRE permit, the current
ownership of Tergas, etc.), and review of such other documents and
equipment as TLP in its sole discretion shall deem appropriate in
order to ascertain the present condition and capacity of the
Assets;
	 
	 	 	 	 
	 

	 	 	 	- Satisfactory completion of a due diligence review of any and all
outstanding litigation, claims, investigations or agency inquiries
in any way relating to the Assets, including the ongoing Department
of Transportation audit;
	 
	 	 	 	 
	 

	 	 	 	- RVOP shall have delivered to TLP a satisfactory result of the
Department of Transportation Audit in a form and substance
reasonably acceptable to TLP; and
	 
	 	 	 	 
	 

	 	 	 	- No action, suit, or proceeding shall be pending or threatened in
writing, other than due to TLP’s acts or omissions, wherein an
unfavorable result would be reasonably likely to (a) prevent
consummation of the Transaction, (b) cause the Transaction to be
rescinded following the Closing Date, or (c) materially adversely
affect the right of TLP to own and operate the Assets.
	 
	 	 	 	 
	 	 	“Material Adverse Effect” means any event, change or effect that,
when taken individually or together with all other adverse events,
changes and effects, is or is reasonably likely to (i) be
materially adverse to the condition (financial or otherwise),
properties, assets (including Assets), liabilities, business,
operations, results of operations or prospects of RVOP or the
Included Subsidiaries, taken as a whole, or (ii) prevent or
materially delay consummation of the Transaction or otherwise to
prevent either Party or their respective affiliates from performing
their obligations under this Agreement, subject to customary
exceptions.
	 
	 	 	 	 
	Conditions to
RVOP’s Obligations:	 	RVOP’s obligation to consummate the Transaction shall, in addition
to negotiation of the Agreement acceptable to TLP, be subject to
the satisfaction, or waiver by RVOP, of customary conditions
precedent, including, without limitation that RVOP shall have
received the portion of the Purchase Price due and payable in
accordance with the terms hereof.
	 
	 	 	 	 
	Other:	 	For a period of three years after the Closing Date, TLP will agree
to pay RVOP the following royalty fee below on any volumes
(excluding any volumes redirected from the existing 8” pipeline to
the 6” pipeline) that are transported through the idle 6” pipeline
that runs from Brownsville, Texas to Matamoros, Mexico:

	 	 	 	 	 
	Year	 	Per BBL	 	Per Gal
	1
	 	0.150
	 	0.0035
	2
	 	0.075
	 	0.0018
	3
	 	0.050
	 	0.0012

 

A-2Filed by Bowne Pure Compliance

 

Exhibit 10.64

RESTATED AND AMENDED PROMISSORY NOTE

SEPTEMBER 12, 2007

FOR VALUE RECEIVED, the undersigned, RIO VISTA OPERATING PARTNERSHIP L.P., a Delaware limited
partnership (“Borrower”), promises to pay to the order of TRANSMONTAIGNE PRODUCT SERVICES INC., a
Delaware corporation (“Holder”), at Holder’s offices at 1670 Broadway Street, Suite 3100, Denver,
Colorado 80202, or at such other place Holder may from time to time designate, the principal sum of
ONE MILLION DOLLARS ($1,000,000) (the “Loan Amount”), together with interest thereon at the rate
hereafter specified and any and all sums which may be owing Holder by Borrower pursuant to this
Promissory Note (hereinafter referred to as the “Note”). This Note amends and restates the
Promissory Note dated August 15, 2005 in the original principal amount of $1,300,000 executed by
Borrower in favor of Holder (the “Original Note”).

1. Interest Rate. From the date hereof until all sums due hereunder, whether
principal, interest, charges, fees or other sums, have been paid in full, interest shall accrue on
the unpaid principal balance of this Note at a rate equal to the prime rate of interest for large
U.S. Money Center Commercial Banks published under “Money Rates” by The Wall Street Journal
(“Prime Rate”) plus two percent (2%) per annum, as described in paragraph three below, or the
highest rate permitted by law, whichever is lower. The interest rate shall fluctuate as the Prime
Rate fluctuates.

2. Calculation of Interest. Interest shall be calculated on the basis of a three
hundred sixty (360) day year applied to the actual days on which there exists an unpaid balance
hereunder. Interest shall be compounded quarterly in arrears, based on the time-weighted average
of the interest rate applicable during such period, provided, however, that interest shall not be
compounded to the extent such compounding would cause the interest rate to exceed the maximum rate
allowed by law.

3. Repayment Schedule. Interest only shall be due and payable monthly commencing on
September 12, 2007 and continuing on the 1st day of each month through December 31,
2007. On December 31, 2007 the entire principal balance, accrued unpaid interest and any other
amounts due under this Note shall be due and payable in full. Borrower shall pay to Holder a late
charge of 1% of any payment amount that is not paid on December 31, 2007.

4. Prepayment. Borrower shall have the right to prepay the indebtedness evidenced
hereby in full or in part without penalty or premium. All prepayments received hereunder shall be
applied as follows: (i) to interest accrued but unpaid during any period prior to Maturity of the
Note and the balance (iii) to principal.

5. Acceleration. At the option of Holder, the entire balance of principal, accrued
interest and other sums owing under this Note shall become at once due and payable in full, without
notice or demand, upon the occurrence of any one of the following specified events: (i) any failure
by Borrower to make any payment when due hereunder; (ii) the making of a general assignment for the
benefit of creditors by Borrower; (iii) the appointment of a receiver for Borrower’s assets and
properties; (iv) the filing of a petition or the commencement of a
proceeding by or against Borrower for any relief under bankruptcy or insolvency laws, which
proceeding is not dismissed with thirty days; or (v) the dissolution, insolvency or liquidation of
Borrower.

 

 

 

6. Expenses of Collection. Borrower shall pay all of Holder’s reasonable costs, fees
(including, but not limited to, reasonable attorneys’ fees) and expenses resulting from attempts by
Holder to recover payments due from Borrower under this Note, whether or not judgment has been
confessed or suit has been filed.

7. Waiver of Protest. Borrower and all parties now or hereafter liable for payment of
this Note waive presentment, demand, protest, notice of protest, notice of dishonor and all other
notices and demands, other than any notice which may be required pursuant to any provision of any
document executed in connection with this Note.

8. Binding Nature. This Note shall inure to the benefit of and be enforceable to
Holder and Holder’s successors and assigns and any other person to whom Holder may grant an
interest in Borrower’s obligations to Holder, and shall be binding upon and enforceable against
Borrower and Borrower’s successors and assigns.

9. Security for Repayment. The payment of indebtedness evidenced by this Note is
secured by the property or collateral as set forth in that certain Restated and Amended Security
Agreement dated September 12, 2007 among the Holder, TLP and the Borrower. Rights and obligations
with respect to the collateral are governed by the Security Agreement.

10. Original Note. This Note supersedes the Original Note.

 

2

 

IN WITNESS WHEREOF, Borrower has executed this Restated and Amended Promissory Note on the Date
first above written.

	 	 	 	 	 	 	 
	 	 	 	 	BORROWER:
	 
	 	 	 	 	 	 
	ATTEST:	 	RIO VISTA OPERATING PARTNERSHIP L.P.

By Rio Vista Operating GP LLC,

its General Partner
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:
	 	Ian T. Bothwell
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:
	 	Vice President, Chief Financial Officer
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:	 	 	 	 
	 
	 	 	 	 	 	 
	HOLDER:	 	 	 	 
	 
	 	 	 	 	 	 
	TRANSMONTAIGNE PRODUCT SERVICES, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	William S. Dickey	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	President and Chief
Operating Officer	 	 	 	 

 

3

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