Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.29*

EMPLOYMENT AND NON-COMPETITION AGREEMENT

This EMPLOYMENT AND NON-COMPETITION AGREEMENT (the “Agreement”) is effective as of the 27th
day of July, 2007 (the “Effective Date”), and is made by and between Regional Enterprises, Inc., a
Virginia corporation (herein referred to as “Employer” or “Company”), and W. Gary Farrar, III, an
individual currently residing in the Commonwealth of Virginia (the “Employee”).

WHEREAS, the Employer specializes in liquid bulk storage, railcar transloading and
transportation of bulk liquids, including hazardous, non-hazardous and food grade products
(“Employer’s Business”);

WHEREAS, the Employer is the successor by merger to Regional Enterprizes, Inc., a Virginia
corporation and the former employer of Employee prior to the Effective Date;

WHEREAS, the Employer is a wholly owned subsidiary of Rio Vista Energy Partners L.P., a
Delaware limited partnership (“RVEP”);

WHEREAS, the Employer desires to retain the Employee as the Vice President, Director of
Marketing; and

WHEREAS, effective as of the Effective Date, the Employee desires to serve the Employer as the
Vice President, Director of Marketing on the terms and conditions provided in this Agreement, and
acknowledges that such terms and conditions provide adequate consideration and benefits to the
Employee;

NOW, THEREFORE, in consideration of the promises, covenants and agreements of the Employer and
the Employee (collectively, the “Parties”) contained in this Agreement and in consideration of the
Employee’s continued employment by the Employer, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Position and Duties. The Employer hereby agrees to employ the Employee as its Vice
President, Director of Marketing. In this role, the Employee shall be responsible for customer
relationships, customer growth/development, customer retention as it relates to Sales and Marketing
of the Employer and any other duties reasonably assigned by the Employer (“Job Description”).
Employee will report directly to the President/Chief Executive Officer of Employer or RVEP. The
Employee will perform his duties at the principal office of the Company in Hopewell, Virginia, or
at such other locations as the Company and the Employee shall hereafter agree, including such
travel as reasonably required for the efficient and effective performance of his duties. Employee
shall devote substantially all of his business time and expend his best efforts, energies and
skills to the diligent and faithful performance of his employment responsibilities. Those
responsibilities may change at the discretion of the Employer or RVEP. However, in all cases the
responsibilities and duties of Employee will not

be changed significantly from those described above, but in no event will such responsibilities and
duties include being primarily responsible for the day to day operations of the Employer.

 

 

 

2. At-will employment. Employee’s employment with Employer is at-will, meaning that
Employer or Employee can terminate the employment relationship at any time, for any reason, with or
without good or just cause.

3. Compensation. The Employee’s annual base salary as of the effective date of this
Agreement will be Two Hundred Ten Thousand Dollars ($210,000.00) (“Base Salary”). This Base Salary
may increase subject to annual performance evaluations by the Employer and is subject to
withholdings and other deductions by reason of Federal, State or local law. The Employer shall pay
such Base Salary in accordance with its regular payroll dates. The Employee shall also be eligible
for any annual bonuses, if any, awarded to employees of the Employer in accordance with the terms
or criteria set for such bonus awards. The Employer also agrees to reimburse the Employee for all
reasonable business expenses incurred by the Employee in connection with the performance of the
Employee’s employment responsibilities and obligations under this Agreement, subject to any
established reimbursement policies of the Employer in effect from time-to-time.

4. Benefits. The Employee shall be entitled to the following benefits during his
employment:

a. Paid Time Off. The Employee shall be allowed vacation of three (3) weeks, sick
leave, and personal leave, in an amount pursuant to the leave allowances as set forth from
time-to-time in the Employer’s policies and procedures.

b. Medical Insurance. The Employee and the Employee’s immediate family shall be
entitled to health insurance benefits comparable to those benefits made available generally to
other employees of the Employer. In addition, Employee will have the continued benefit of full
quarterly reimbursement of all healthcare-related expenses with exception of employees’ paid
portion to semi-monthly premiums. This reimbursement is not to exceed $2,500 during any quarterly
period (beginning on the Effective Date) provided such expenses were actually incurred during the
period.

c. Salary Withholding Plans. The Employee shall be entitled to participate in any
employee benefit plan that the Employer has in existence pursuant to Paragraph 403(b) or 401(k) or
any other provision of the Internal Revenue Code providing for tax-deferred salary withholding
plans in accordance with the same terms and conditions that the Employer may make available
generally to other employees of the Employer.

d. Commissions: Employee will be entitled to commissions based on the revenue of the
Company as set forth in Exhibit A, attached to this Agreement and incorporated herein by reference.

 

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e. Employer options: Employee will be entitled to receive options to purchase 25,000
common units of RVEP with an exercise price equal to the closing price of

RVEP units on the date of the grant. Such options shall expire five years from the date of the
grant and shall vest ratably for each month over a period of twenty-four months. The options will
be exercisable only during the end of a calendar quarter. If termination of Employee’s employment
occurs for any reason, all of Employee’s vested options shall expire on that date which is six
months from the Separation Date (defined herein). Employee shall not be entitled to any additional
vesting of options beyond the Separation Date. The common units acquired through the exercise of
the option will be restricted as provided for under regulations of the Securities and Exchange
Commission. RVEP is under no obligation to register the underlying common units.

5. Limited Restrictive Covenants. For and in consideration of Employee’s continued
employment, compensation, employee benefits and other good and valuable consideration, the
adequacy, sufficiency and receipt of which is hereby acknowledged, and intending to be legally
bound, the Employee agrees to the following:

a. Confidentiality of Employer’s Business Records and Information: The Parties
acknowledge that in the course of performing the duties of the Job Description and due to
Employee’s previous employment with the Employer, Employee has had and will have frequent contact
with Employer’s existing and prospective customers and will have or will develop familiarity with
Employer’s methods of operation, including, but not limited to: (i) the Employer’s methods of
estimating the cost of Employer’s products and services, (ii) the specifications for Employer’s
products and services, and/or (iii) the Employer’s techniques of promoting, selling, and supplying
its services to its customers (“Employer’s Business Practices”). The Employer’s Business
Practices, all records, whether original, duplicated, computerized, electronic, memorized,
handwritten or in any other form, and all information contained therein, including names,
addresses, phone numbers, and account and financial information of any customer, client, customer
lead or prospect, any person or entity to whom or to which the Employer provided services, or any
person or entity to whom or to which the Employer submitted or made a bid, proposal, or offer of
sale for the purpose of providing services (“Customer”), exclusive of information that is generally
available to the public, are confidential and are the sole and exclusive property of the Employer
(collectively, “Confidential Information”).

Employee hereby acknowledges and recognizes that the Confidential Information is the exclusive
property of the Employer, and that the use or disclosure of such information, whether confidential
or otherwise, to any person or entity will irreparably injure the Employer’s business interests.
Employee agrees not to use Confidential Information or remove any such information or records from
the Employer’s office except for the sole purpose of conducting the Employer’s Business on behalf
of the Employer. Except as required by order of a court or other tribunal, or as permitted by the
written consent of the Employer, Employee agrees not to use Confidential Information for Employee’s
benefit or for the benefit of any other entity, or disclose Confidential Information to any person
or entity outside the Company. Specifically, Employee agrees not to divulge or disclose this
information or records to any third party and under no circumstances will reveal or permit this
information or these records to become known by any competitor of Employer either during Employee’s
employment or at any time thereafter.

 

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b. Limited Non-Competition: During Employee’s employment and for a period of eighteen
(18) months following the Separation Date, defined herein (or from the date of entry by a court of
competent jurisdiction of a final judgment enforcing the covenant, whichever is later), Employee
agrees that he shall not, within the following States — Virginia, North Carolina, South Carolina,
Georgia, Florida, West Virginia, Tennessee, Kentucky, Maryland, Pennsylvania, or any territory in
which Employer is performing services (hereinafter collectively “Market Territory”), serve in any
capacity for a Competing Business, defined herein, where Employee’s services or duties would be
similar, comparable or akin to those duties listed in the Job Description set forth above. The
“Separation Date” shall be the last day of Employee’s employment with Employer without regard to
the reasons for cessation of employment. A “Competing Business” shall be an individual or entity
that (a) engages in liquid bulk storage, railcar transloading of bulk liquids and/or transportation
of bulk liquids; and (b) directly competes with the Employer’s Business within the Market
Territory.

Notwithstanding the foregoing restrictions, the Parties agree that the Employee may work for,
provide services to, or own: (a) a Competing Business that conducts no business within the Market
Territory; or (b) a Competing Business where the work or services performed by Employee are
different from or dissimilar to the work or services that the Employee provided to Employer.

c. Limited Non-Solicitation of Customers: During Employee’s employment and for a
period of eighteen (18) months following the Separation Date (or from the date of entry by a court
of competent jurisdiction of a final judgment enforcing the covenant, whichever is later), Employee
agrees that he will not, on behalf of or in conjunction with a Competing Business, solicit or
attempt to induce or persuade any Customer to whom Employer provided services, or whose name became
known to Employee while employed by Employer, to (a) reduce or discontinue its or their business
with or patronage of Employer; or (b) purchase or acquire from a Competing Business the same or
similar products or services as were sold or provided by the Employer.

d. Limited Non-Solicitation of Employees. During Employee’s employment and for a
period of eighteen (18) months following the Separation Date (or from the date of entry by a court
of competent jurisdiction of a final judgment enforcing the covenant, whichever is later), Employee
agrees that he will not, on his own behalf, or on the behalf of or in conjunction with any other
person or entity, solicit for hire or assist others in the solicitation or hiring of any employee
of the Employer for work in a Competing Business. This includes, but is not limited to: (i)
providing a Competing Business the identities of any of the Employer’s employees; or (ii) assisting
any of the Employer’s employees in obtaining employment with a Competing Business through the
dissemination of resumes or otherwise.

6. Remedies

(a) Injunctive Relief. In the event Employee breaches any of the covenants of
Paragraph 5 above, Employee agrees that Employer will be entitled to injunctive relief. Employee
recognizes that Employer will suffer immediate and irreparable harm, and that money damages will
not be adequate to compensate Employer or to preserve or protect the
status quo. Accordingly, EMPLOYEE CONSENTS TO THE ISSUANCE OF A TEMPORARY RESTRAINING ORDER OR A PRELIMINARY
INJUNCTION OR PERMANENT INJUNCTION ordering:

 

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(i) That Employee immediately return to Employer all records whether original,
duplicated, computerized, electronic, handwritten, or in any other form whatsoever, and that
Employee be enjoined and restrained from using or disclosing any information contained in
such records; and

(ii) That for a period of eighteen (18) months, Employee be enjoined and restrained
from violating the non-competition provisions of Paragraph 5(b) of this Agreement;

(iii) That for a period of eighteen (18) months, Employee be enjoined and restrained
from violating the non-solicitation of Customer provisions of Paragraph 5(c) of this
Agreement; and

(iv) That for a period of eighteen (18) months, Employee be enjoined and restrained
from violating the non-solicitation of employees provisions of Section 5(d) of this
Agreement.

Employee agrees to submit to the personal jurisdiction of the Circuit Court of the County of
Henrico, Virginia, or the United District Court for the Eastern District of Virginia, Richmond
Division, for purposes of the injunctive relief described herein and any proceedings by Employer to
compel Employee’s participation in an arbitration of disputes under this Agreement.

7. Employee’s Representations. The Employee represents and warrants that: (i) as of
the commencement of the Employee’s employment, he is not and will not be subject to any covenants
or contracts that impair, restrict, or limit his ability to perform his duties under this Agreement;
and (ii) there are no physical or mental limitations that would impair, restrict, or limit his
ability to carry out Employee’s duties under this Agreement.

8. Assignment; Binding Effect. This Agreement is personal as to the Employee and
shall not be assignable by him. The Employer may assign its rights under this Agreement to any
person, firm, corporation, or other entity which may acquire all, or substantially all, of the
business which is now or hereafter conducted by the Employer or which may acquire substantially all
of the assets of the Employer, or with or into which the Employer may be consolidated or merged,
provided, that any such assignment shall be subject to the express terms and conditions hereof.
This Agreement shall be binding upon and shall inure to the benefit of the respective Parties
hereto and their heirs, executors, personal representatives and successors.

9. Severance Benefit. If the Employer terminates Employee’s employment without “Good
Cause” as defined below, Employer will pay the Employee’s an amount equal to $210,000 less the
amount of Base Salary received from the Effective Date. Employee will not be entitled to any other
payments except any amounts owing on accrued and unpaid commissions and accrued and unpaid expense
reimbursements through the date of termination. All of

Employee’s vested options shall expire on that date which is six months from the Separation Date.

 

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For purposes of this Agreement, termination for “Good Cause” shall mean a termination of
Employee’s employment by Employer due to Employee’s failure to follow directives provided by his
superiors, Employee’s material breach of his obligations under this Agreement, breach of a material
fiduciary duty owed to the Employer, fraud, theft, embezzlement, misappropriation of Employer
funds, abuse of controlled substances (including alcohol) that materially impairs Employee’s
ability to perform his duties and responsibilities hereunder, conviction of a felony, forgery or
the knowing falsification of documents, unauthorized use or disclosure of Confidential Information
and/or misconduct by Employee that is materially injurious to the Employer.

If the Employee resigns, is terminated for Good Cause, as defined above, becomes disabled and
is unable to perform the essential functions of his job, or dies, Employee will be entitled to none
of the payments discussed in this section.

The amounts payable pursuant to this section, if any, shall be paid such that the payments do
not constitute a nonqualified deferred compensation plan under Section 409A of the Internal Revenue
Code (the “Code”). Accordingly, neither the Employer nor the Employee may accelerate the payment
of the amounts as set forth above, except as specifically permitted pursuant to Code Section
409A. 

10. Miscellaneous.

a. Governing Law. This Agreement shall in all respects be governed by, and construed
in accordance with, the laws of the Commonwealth of Virginia without reference to its conflicts of
law principals.

b. Integration; Modification of Agreement. This instrument constitutes the entire
agreement of the Parties hereto with respect to the subject matter herein. No provisions of this
Agreement may be amended, modified, or discharged, unless such amendment, modification, or
discharge has been approved by the Parties and agreed to in writing and signed by the Parties.

c. Severability. Each section and subsection of this Agreement constitutes a separate
and distinct provision hereof. It is the intent of the Parties hereto that the provisions of this
Agreement be enforced to the fullest extent permissible under the laws and public policies
applicable. Accordingly, if any provision of this Agreement shall be adjudicated to be invalid,
ineffective, or unenforceable, the remaining provisions shall not be affected thereby.

d. Waiver. No waiver by either Party of a right or remedy hereunder shall be deemed
to be a waiver of any other right or remedy or of any subsequent right or remedy of the same kind.
No such waiver shall be enforceable unless expressed in a written instrument executed by the Party
against whom enforcement is sought.

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement as follows:

	 	 	 	 	 
	 	 	Employer:

Regional Enterprises, Inc.
	 
	 	 	 	 
	Date: July 27, 2007

	 	By:
	 	     /s/ Ian T. Bothwell
	 

	 	 	 	 
	 

	 	 	 	     Ian T. Bothwell
	 

	 	 	 	     President and Chief Executive Officer
	 
	 	 	 	 
	 	 	Employee:
	 
	 	 	 	 
	Date: July 27, 2007	 	/s/ W. Gary Farrar, III
	 	 	 
	 	 	     W. Gary Farrar, III

 

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EXHIBIT A

COMMISSION SCHEDULE

	 	 	 	 	 
	 	 	Revenue	 
	 	 	Commission	 
	REVENUES (a), (b, (c))	 	Rate	 
	$  0 - $7,100,000
	 	 	0.0	%
	$ > 7,100,000 < $10,000,000
	 	 	1.0	%
	$ > 10,000,001 < $15,000,000
	 	 	1.5	%

 

			
	(a)	 	Commodity based revenues will be adjusted to net profits (revenues less related
commodity costs)

	 
	(b)	 	Only includes operating revenues related to liquid bulk storage, railcar transloading
and transportation of bulk liquids, including hazardous, non-hazardous and food grade
products.

	 
	(c)	 	Increased commission rates apply to incremental revenues only.

 

8Filed by Bowne Pure Compliance

 

Exhibit
10.30

ESCROW AGREEMENT

WHEREAS, RIO VISTA ENERGY PARTNERS L.P., a Delaware limited partnership (“Buyer”), REGIONAL
ENTERPRISES, INC., a Virginia corporation (the “Surviving Corporation”), and W. GARY FARRAR, JR., a
resident of the Commonwealth of Virginia (“Shareholders’ Agent”), have caused or will cause certain
funds to be deposited in escrow with FIRST CAPITAL BANK, a Virginia banking corporation (the
“Escrow Agent”), on terms and conditions more particularly described herein.

NOW, THEREFORE, in consideration of the premises, the undersigned hereby agree as follows,
effective as of the 27th day of July, 2007:

ARTICLE I

TERMS AND CONDITIONS

1.1 Establishment of Funds. The undersigned have caused or will cause to be deposited with
the Escrow Agent the sum of (i) FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($500,000.00) (such sum,
together with any replenishment thereof, as set forth in Section 1.3(A)(ii) hereof, and interest
earned thereon, or the balance thereof remaining from time to time, being referred to herein as the
“Indemnity Fund”), and (ii) ONE MILLION AND NO/100 DOLLARS ($1,000,000.00) (such sum, together with
interest earned thereon, or the balance thereof remaining from time to time, being referred to
herein as the “NS Property Fund”). The Indemnity Fund and the NS Property Fund may be referred to
herein individually as a “Fund” and collectively as the “Funds.”

1.2 Treatment of Funds.

A. The monies constituting the Indemnity Fund shall be deposited into a segregated,
interest-bearing money market account of the Escrow Agent known as The Capital Reserve Account.
Such account (the “Indemnity Escrow Account”) shall be styled the Regional Enterprises Indemnity
Escrow Account. The Indemnity Fund shall not be deposited into an account other than the Indemnity
Escrow Account without the prior written consent of Buyer and Shareholders’ Agent.

B. The monies constituting the NS Property Fund shall be deposited into a segregated,
interest-bearing money market account of the Escrow Agent known as The Capital Reserve Account.
Such account (the “NS Property Escrow Account”) shall be styled the Regional Enterprises NS
Property Escrow Account. The NS Property Fund shall not be deposited into an account other than
the NS Property Escrow Account without the prior written consent of Buyer and Shareholders’ Agent.

1.3 Escrow Procedure and Payment Instruction.

A. The Indemnity Fund, together with all interest earned thereon, which interest shall become
and remain a part of the Indemnity Fund, shall be held and disbursed in accordance with the terms
of this Escrow Agreement as follows:

(i) If, on or prior to August 27, 2008 (the “Indemnity Holdback Release Date”), Buyer
or the Surviving Corporation determines to assert a claim for indemnification (a “Claim”)
under Section 11 of the Agreement and Plan of Merger among Buyer, the Surviving Corporation,
Regional Enterprizes, Inc., a Virginia corporation (“REI”), the Shareholders of REI and
Shareholders’ Agent dated July 27, 2007 (the “Merger Agreement”), then Buyer or the
Surviving Corporation shall give Shareholders’ Agent and the Escrow Agent written notice of
such claim (a “Claim Notice”), specifying in reasonable detail the basis therefor and the
amount and calculation thereof. If Shareholders’ Agent does not deliver to Buyer, the
Surviving Corporation and the Escrow Agent written notice of an objection to the Claim
within thirty (30) days after receipt of the Claim Notice relating thereto, the Escrow Agent
shall disburse to Buyer or the Surviving Corporation (as set forth in the Claim Notice) the
dollar amount of the Claim (as set forth in the Claim Notice) from the Indemnity Escrow
Account. If Shareholders’ Agent shall timely deliver to Buyer, the Surviving Corporation
and the Escrow Agent such written notice of objection, then the Escrow Agent shall not
disburse funds from the Indemnity Escrow Account with respect to the Claim set forth in the
Claim Notice until: (x) Buyer, the Surviving Corporation and Shareholders’ Agent have
executed joint written instructions referring to such Claim Notice and directing the Escrow
Agent to disburse funds from the Indemnity Escrow Account; or (y) the Escrow Agent has
received a copy of a judgment, decree or order of a court, or copy of an arbitration award,
adjudicating the dispute with respect to such claim for indemnification, which

judgment, decree, or arbitration award constitutes a final and binding adjudication of the
matter in controversy which cannot be appealed; whereupon the Escrow Agent shall disburse
funds from the Indemnity Escrow Account in such amount as provided in such joint written
instructions or in such final order, judgment or award.

 

 

 

(ii) If (a) it is determined pursuant to Section 1.8(c) of the Merger Agreement that
there was a shortfall in Working Capital (as defined in the Merger Agreement) as of the
Closing Date (as defined in the Merger Agreement) in excess of any previous downward
adjustment of the Initial Consideration (as defined in the Merger Agreement), and (b) Buyer
elects to have such shortfall paid out of the Indemnity Fund pursuant to Section 1.8(c)(i)
of the Merger Agreement, then Buyer or the Surviving Corporation shall give Shareholders’
Agent and the Escrow Agent written notice of such election (the “Election Notice”),
specifying in reasonable detail the calculation of such shortfall based upon the final
calculation of Working Capital pursuant to Section 1.8(c) of the Merger Agreement. The
Escrow Agent shall disburse to Buyer or the Surviving Corporation (as set forth in the
Election Notice) the dollar amount of such shortfall (as set forth in the Election Notice)
from the Indemnity Escrow Account within three (3) business days of receipt of the Election
Notice, and Shareholders’ Agent shall replenish the Indemnity Fund by the amount of such
shortfall within thirty (30) days of receipt of the Election Notice. The parties hereto
hereby instruct the Escrow Agent to provide notification to all parties in the event the
Indemnity Fund is not replenished by the amount of such shortfall within thirty (30) days of
receipt of the Election Notice.

(iii) If neither Buyer nor the Surviving Corporation has delivered a Claim Notice to
Shareholders’ Agent and the Escrow Agent on or prior to the Indemnity Holdback Release Date,
or if any and all Claim Notices delivered to Shareholders’ Agent and the Escrow Agent on or
prior to the Indemnity Holdback Release Date have been resolved pursuant to subsection (i)
above, then the Escrow Agent shall deliver to Shareholders’ Agent the portion of the funds
remaining in the Indemnity Escrow Account (including any interest). The Escrow Agent shall
deliver such amount to Shareholders’ Agent promptly after the Indemnity Holdback Release
Date, unless one or more Claim Notices have not been finally resolved pursuant to subsection
(i) above, in which case the Escrow Agent shall retain such amount in the Indemnity Escrow
Account until such Claim Notice(s) have been finally resolved pursuant to subsection (i)
above; provided, however, that the Escrow Agent shall disburse to Shareholders’ Agent from
the Indemnity Escrow Account any funds in excess of the aggregate amount of the Claims which
have been asserted but not finally resolved pursuant to subsection (i) above on or prior to
the Indemnity Holdback Release Date. Any amounts not delivered pursuant to this subsection
(ii) shall be delivered in accordance with subsection (i) as provided in a joint written
instruction or a final order, judgment or award.

B. The NS Property Fund, together with all interest earned thereon, which interest shall
become and remain a part of the NS Property Fund, shall be held and disbursed in accordance with
the terms of this Escrow Agreement as follows:

(i) If, on or prior to July 27, 2010 (the “NS Holdback Release Date”), an event occurs
that triggers the release of the NS Property Fund under Section 1.7(b) of the Merger
Agreement, then Buyer, the Surviving Corporation or Shareholders’ Agent (the “Notifying
Party”) shall give Escrow Agent and the other parties hereto written notice of such event (a
“Release Notice”), specifying in reasonable detail the basis therefor. If none of the other
parties delivers to the Notifying Party and the Escrow Agent written notice of an objection
to the Release Notice (a “Notice of Objection”) within thirty (30) days after receipt of the
Release Notice, the Escrow Agent shall disburse to the Shareholders’ Agent or the Surviving
Corporation (as set forth in the Release Notice) the amount of the NS Property Fund
(including any interest) from the NS Property Escrow Account. If any of the other parties
shall timely deliver to the Notifying Party and the Escrow Agent a Notice of Objection, then
the Escrow Agent shall not disburse the NS Property Fund from the NS Property Escrow Account
until: (x) Buyer, the Surviving Corporation and Shareholders’ Agent have executed joint
written instructions directing the Escrow Agent to disburse the NS Property Fund (including
any interest) from the NS Property Escrow Account; or (y) the Escrow Agent has received a
copy of a judgment, decree or order of a court, or copy of an arbitration award,
adjudicating the dispute with respect to such Notice of Objection, which judgment, decree,
or arbitration award constitutes a final and binding adjudication of the matter in
controversy which cannot be appealed; whereupon the Escrow Agent shall disburse the NS
Property Fund (including any interest) from the NS Property Escrow Account as provided in
such joint written instructions or in such final order, judgment or award.

(ii) If neither Buyer, the Surviving Corporation nor Shareholders’ Agent has delivered
a Release Notice to the other parties and the Escrow Agent on or prior to the NS Holdback
Release Date, then the Escrow Agent shall deliver to Shareholders’ Agent the NS Property
Fund (including any interest) from the NS Property Escrow Account promptly after the NS
Holdback Release Date.

 

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1.4 Termination. This Escrow Agreement shall terminate upon the disbursement of the balance
of both Funds in accordance with the provisions of Section 1.3 hereof.

1.5 Rights of Lender. The parties hereto acknowledge that, notwithstanding anything to the
contrary set forth in this Agreement, the Escrow Agent shall pay any and all amounts, which would
otherwise be released from the Funds to Buyer or the Surviving Corporation pursuant to Section 1.3,
to RZB Finance LLC, a Delaware limited liability company (together with its successors and assigns,
the “Lender”), at the following address: 1133 Avenue of the Americas, New York, New York 10036,
Attn: Ms. Nancy Remini. Each of Buyer and the Surviving Corporation hereby irrevocably authorizes
and directs the Escrow Agent to pay any and all amounts, which would otherwise be released from the
Funds to Buyer or the Surviving Corporation pursuant to Section 1.3, to Lender without the
necessity of any inquiry to Buyer or the Surviving Corporation and without any liability to Buyer
or the Surviving Corporation. The parties hereto agree that this Section 1.5 and Sections 3.3 and
3.6 hereof shall run to the benefit of Lender and that Lender shall be an intended third-party
beneficiary of this Section 1.5 and Sections 3.3 and 3.6 hereof.

ARTICLE II

PROVISIONS AS TO THE ESCROW AGENT

2.1 Limitation of the Escrow Agent’s Capacity.

A. This Escrow Agreement expressly and exclusively sets forth the duties of the Escrow
Agent with respect to any and all matters pertinent hereto, and no implied duties or
obligations shall be read into this Escrow Agreement against the Escrow Agent. This Escrow
Agreement constitutes the entire agreement between the Escrow Agent and the other parties
hereto in connection with the subject matter of this escrow, and no other agreement entered
into between the parties, or any of them, shall be considered as adopted or binding, in
whole or in part, upon the Escrow Agent notwithstanding that any such other agreement may be
referred to herein or deposited with the Escrow Agent or the Escrow Agent may have knowledge
thereof, and the Escrow Agent’s rights and responsibilities shall be governed solely by this
Escrow Agreement.

B. The Escrow Agent acts hereunder as a depository only, and is not responsible or
liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of
the subject matter of this Escrow Agreement or any part thereof, or for the form of
execution thereof, or for the identity or authority of any person executing or depositing
such subject matter. The Escrow Agent shall be under no duty to investigate or inquire as
to the validity or accuracy of any document, agreement, instruction or request furnished to
it hereunder reasonably believed by it to be genuine, and the Escrow Agent may rely and act
upon, and shall not be liable for acting or not acting upon, any such document, agreement,
instruction or request. The Escrow Agent shall in no way be responsible for notifying, nor
shall it be its duty to notify, any party hereto or any other party interested in this
Escrow Agreement of any payment required or maturity occurring under this Escrow Agreement
or under the terms of any instrument deposited herewith.

2.2 Authority to Act.

A. The Escrow Agent is hereby authorized and directed by the undersigned to deliver the
subject matter of this Escrow Agreement only in accordance with the provisions of Article I
of this Escrow Agreement.

B. The Escrow Agent shall be protected in acting upon any written notice, request,
waiver, consent, certificate, receipt, authorization, power of attorney or other paper or
document which the Escrow Agent in good faith believes to be genuine and what it purports to
be, including, but not limited to, items directing investment or non-investment of funds,
items requesting or authorizing release, disbursement or retainage of the subject matter of
this Escrow Agreement and items amending the terms of this Escrow Agreement.

C. The Escrow Agent may consult with legal counsel at the joint and several cost and
expense of the undersigned (other than the Escrow Agent) in the event of any dispute or
question as to the construction of any of the provisions hereof or its duties hereunder, and
it shall incur no liability and shall be fully protected in acting in accordance with the
advice of such counsel.

 

3

 

D. In the event of any disagreement between any of the parties to this Escrow
Agreement, or between any of them and any other person, resulting in adverse claims or
demands being made in connection with the matters covered by this Escrow Agreement, or in
the event that the Escrow Agent, in good faith, be in doubt as to what action it should take
hereunder, the Escrow Agent may, at its option, refuse to comply with any claims or demands
on it, or refuse to take any other action hereunder, so long as such disagreement continues
or such doubt exists, and in any such event, the Escrow Agent shall not be or become liable
in any way or to any person for its failure or refusal to act, and the Escrow Agent shall be
entitled to continue so to refrain from acting until (i) the rights of all interested
parties shall have been fully and finally adjudicated by arbitration or a court of competent
jurisdiction, or (ii) all differences shall have been adjudged and all doubt resolved by
agreement among all of the interested persons, and the Escrow Agent shall have been notified
thereof in writing signed by all such persons. Notwithstanding the foregoing, the Escrow
Agent may in its discretion obey the order, judgment, decree or levy of any court, whether
with or without jurisdiction, or of any agency of the United States or any political
subdivision thereof, or of any agency of the Commonwealth of Virginia or of any political
subdivision thereof, and the Escrow Agent is hereby authorized in its sole discretion, to
comply with and obey any such orders, judgments, decrees or levies. The right of the Escrow
Agent under this sub-paragraph are cumulative of all other rights which it may have by law
or otherwise.

E. In the event that any controversy should arise among the parties with respect to the
Escrow Agreement, or should the Escrow Agent resign and the parties fail to select another
Escrow Agent to act in its stead, the Escrow Agent shall have the right to institute a bill
of interpleader in any court of competent jurisdiction to determine the rights of the
parties.

2.3 Compensation/Indemnification.

A. The Escrow Agent’s fees for acting as the Escrow Agent hereunder shall be as
follows: (i) $350.00 with respect to the Indemnity Escrow Account; (ii) $300.00 per year
with respect to the NS Property Escrow Account; and (iii) $150.00 for each Claim Notice,
Election Notice or Release Notice. One-half of all such fees shall be paid by Buyer or the
Surviving Corporation, and one-half shall be paid by Shareholders’ Agent.

B. The parties to this Escrow Agreement (other than the Escrow Agent and Lender) hereby
jointly and severally agree to indemnify and hold the Escrow Agent, its affiliates and their
officers, employees, successors, assigns, attorneys and agents (each an “Indemnified Party”)
harmless from all losses, costs, claims, demands, expenses, damages, penalties and
reasonable attorney’s fees suffered or incurred by any Indemnified Party or the Escrow Agent
as a result of anything which it may do or refrain from doing in connection with this Escrow
Agreement or any litigation or cause of action arising from or in conjunction with this
Escrow Agreement or involving the subject matter hereof or Funds or monies deposited
hereunder or for any interest upon any such monies, including, without limitation, arising
out of the negligence of the Escrow Agent; provided that the foregoing indemnification shall
not extend to the gross negligence or willful misconduct of the Escrow Agent. This
indemnity shall include, but not be limited to, all costs (including reasonable attorneys’
fees) incurred in conjunction with any interpleader which the Escrow Agent may enter into
regarding this Escrow Agreement.

2.4 Miscellaneous.

A. The Escrow Agent shall make no disbursement, investment or other use of funds until
and unless it has collected funds. The Escrow Agent shall not be liable for collection
items until the proceeds of the same in actual cash have been received or the Federal
Reserve has given the Escrow Agent credit for the funds.

B. The Escrow Agent may resign at any time by giving written notice to the parties
hereto, whereupon the parties hereto will immediately commence efforts to appoint a
successor Escrow Agent. Until a successor Escrow Agent has been named and accepts its
appointment or until another disposition of the subject matter of this Escrow Agreement has
been agreed upon by all parties hereto, the Escrow Agent shall not be discharged of any of
its duties hereunder.

C. All representations, covenants, and indemnifications contained in this Article II
shall survive the termination of this Escrow Agreement.

 

4

 

ARTICLE III

GENERAL PROVISIONS

3.1 Discharge of the Escrow Agent. Upon the delivery of all of the subject matter or monies
pursuant to the terms of this Escrow Agreement, the duties of the Escrow Agent shall terminate and
the Escrow Agent shall be discharged from any further obligation hereunder.

3.2 Escrow Instructions. Where directions or instructions from more than one of the
undersigned are required, such directions or instructions may be given by separate instruments of
similar tenor. Any of the undersigned may act hereunder through an agent or attorney-in-fact,
provided satisfactory written evidence of authority is first furnished to any party relying on such
authority.

3.3 Notice. Any payment, notice, request for consent, report, or any other communication
required or permitted in this Escrow Agreement shall be in writing and shall be deemed to have been
given when personally delivered to the party hereunder specified, when placed in the United States
mail, registered or certified, with return receipt requested, postage prepaid or when deposited
with an overnight courier service, and is addressed as follows:

	 	 	 	 	 
	 

	 	(A)
	 	If to the Escrow Agent, addressed to:
	 
	 	 	 	 
	 

	 	 	 	First Capital Bank
	 

	 	 	 	4222 Cox Road, Suite 200
	 

	 	 	 	Glen Allen, Virginia 23060
	 

	 	 	 	Attn: Escrow Department
	 
	 	 	 	 
	 

	 	(B)
	 	If to Buyer or the Surviving Corporation, addressed to:
	 
	 	 	 	 
	 

	 	 	 	Rio Vista Energy Partners L.P.
	 

	 	 	 	Attn: Ian T. Bothwell, Acting Chief Executive Officer
	 

	 	 	 	840 Apollo Street, Suite 313
	 

	 	 	 	El Segundo, California 90245
	 
	 	 	 	 
	 

	 	 	 	and
	 
	 	 	 	 
	 

	 	 	 	Regional Enterprises, Inc.
	 

	 	 	 	Attn: Chief Executive Officer
	 

	 	 	 	410 Water Street
	 

	 	 	 	Hopewell, Virginia 23860
	 
	 	 	 	 
	 

	 	 	 	and
	 
	 	 	 	 
	 

	 	 	 	RZB Finance LLC
	 

	 	 	 	1133 Avenue of the Americas
	 

	 	 	 	New York, New York 10036
	 

	 	 	 	Attn: Ms. Nancy Remini
	 
	 	 	 	 
	 

	 	 	 	with copies, which shall not constitute notice, to:
	 
	 	 	 	 
	 

	 	 	 	Law Offices of Kevin Finck
	 

	 	 	 	Attn: Kevin W. Finck, Esq.
	 

	 	 	 	Two Embarcadero Center, Suite 1670
	 

	 	 	 	San Francisco, California 94111
	 
	 	 	 	 
	 

	 	 	 	and
	 
	 	 	 	 
	 

	 	 	 	Christian & Barton, L.L.P.
	 

	 	 	 	Attn: Henry R. Pollard, V, Esq.
	 

	 	 	 	909 East Main Street, Suite 1200
	 

	 	 	 	Richmond, Virginia 23219-3095

 

5

 

	 	 	 	 	 
	 

	 	(C)
	 	If to Shareholders’ Agent, addressed to:
	 
	 	 	 	 
	 

	 	 	 	W. Gary Farrar Jr.
	 

	 	 	 	10803 Stoney Creek Drive
	 

	 	 	 	Richmond, Virginia 23233
	 
	 	 	 	 
	 

	 	 	 	with a copy, which shall not constitute notice, to:
	 
	 	 	 	 
	 

	 	 	 	Cantor Arkema, P.C.
	 

	 	 	 	Attn: Grant S. Grayson, Esq.
	 

	 	 	 	1111 E. Main Street
	 

	 	 	 	P. O. Box 561
	 

	 	 	 	Richmond, Virginia 23218-0561
	 
	 	 	 	 
	 

	 	(D)
	 	If to Lender, addressed to:
	 
	 	 	 	 
	 

	 	 	 	RZB Finance LLC
	 

	 	 	 	1133 Avenue of the Americas
	 

	 	 	 	New York, New York 10036
	 

	 	 	 	Attn: Ms. Nancy Remini

Any party may unilaterally designate a different address by giving notice of each such change
in the manner specified above to each other party. Notwithstanding the foregoing, no notice to the
Escrow Agent shall be deemed given to or received by the Escrow Agent unless actually delivered to
an officer of the Escrow Agent; provided, however, that so long as notice was given by Buyer, the
Surviving Corporation or Shareholders’ Agent, as the case may be, to the Escrow Agent in accordance
with the first sentence of this Section 3.3, the failure to timely deliver notice to an officer of
the Escrow Agent pursuant to the foregoing shall not preclude the Buyer’s, the Surviving
Corporation’s or the Shareholders’ Agent’s rights or remedies under Section 1.3.

3.4 Governing Law. This Escrow Agreement is being made in and is intended to be construed
according to the laws of the Commonwealth of Virginia. It shall inure to and be binding upon the
parties hereto and their respective successors, heirs and assigns.

3.5 Construction. Words used in the singular number may include the plural and the plural may
include the singular. The section headings appearing in this instrument have been inserted for
convenience only and shall be given no substantive meaning or significance whatsoever in construing
the terms and conditions of this Escrow Agreement.

3.6 Amendment. The terms of this Escrow Agreement may be altered, amended, modified or
revoked only by an instrument in writing signed by the undersigned, the Escrow Agent and the
Lender.

3.7 Force Majeure. Escrow Agent shall not be liable to the undersigned for any loss or damage
arising out of any acts of God, strikes, equipment or transmission failure, war, terrorism, or any
other act or circumstance beyond the reasonable control of the Escrow Agent.

3.8 Written Agreement. This Escrow Agreement represents the final agreement between the
parties, and may not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties. There are no unwritten oral agreements between the parties.

3.9 Counterparts. This Escrow Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, binding on all parties, notwithstanding that
all parties are not signatories to the same counterpart.

[SIGNATURE PAGE FOLLOWS]

 

6

 

EXECUTED as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	RIO VISTA ENERGY PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Rio Vista GP LLC, General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ian T. Bothwell
 

	 	 
	 	 	Print Name: Ian T. Bothwell	 	 
	 	 	Title: Acting Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	REGIONAL ENTERPRISES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ian T. Bothwell
 

	 	 
	 	 	Print Name: Ian T. Bothwell	 	 
	 	 	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ W. Gary Farrar, Jr.	 	 
	 	 	 	 	 
	 	 	W. Gary Farrar, Jr., Shareholders’ Agent	 	 

FIRST CAPITAL BANK, Escrow Agent, hereby accepts its appointment as Escrow Agent as described
in the foregoing Escrow Agreement, subject to the terms and conditions set forth therein.

	 	 	 	 	 	 	 
	 	 	FIRST CAPITAL BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Katherine K. Wagner
 

	 	 
	 	 	Name: Katherine K. Wagner	 	 
	 	 	Title: Senior VP and Chief Operating Officer	 	 

 

7

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