Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.65

RESTATED AND AMENDED SECURITY AGREEMENT

SEPTEMBER 12, 2007

This Restated and Amended Security Agreement (this “Agreement”) is made this 12th day of
September 2007, among Rio Vista Operating Partnership, L.P. (“Debtor”) and TransMontaigne Product
Services, Inc. (“TPSI”) and TransMontaigne Partners L.P. (“TLP”; TPSI and TLP are collectively
referred to herein as the “Secured Parties”) for good and valuable consideration, receipt of which
is hereby acknowledged.

RECITALS

A. Debtor is the Borrower under a Promissory Note dated as of August 15, 2005 with a stated
principal amount of $1,300,000 executed in favor of TPSI (the “Original Note”), which Original Note
is secured by a Security Agreement dated as of August 13, 2005 executed by Borrower, as Debtor, in
favor of TPSI, as Creditor (the “Original Security Agreement”).

B. Concurrently herewith (i) Debtor and TPSI are executing a Restated and Amended Promissory
Note with a stated principal amount of $1,000,000 (the “Note”), which Note amends and restates the
Original Note, and (ii) Debtor and TLP are entering into a Letter of Intent (the “Letter”) pursuant
to which TLP is making an initial refundable deposit (the “Initial Deposit”) toward the purchase of
certain assets and shares as described in the Letter.

C. The Letter requires that the Debtor amend and restate the Original Security Agreement to
grant to the Secured Parties the security interests hereinafter provided to secure the repayment of
the Note and the Initial Deposit payable under the Letter as set forth herein.

AGREEMENT

NOW, THEREFORE, for good and value consideration, the receipt and sufficiency of which are
hereby acknowledged, the Debtor and the Secured Parties agree as follows:

ARTICLE I —  DEBTOR’S WARRANTIES AND REPRESENTATIONS.

Debtor makes the following warranties and representations to the Secured Parties:

SECTION 1.1. Debtor is a Delaware limited partnership organized under the laws of the state of
Delaware in good standing with its principal place of business at 840 Apollo Street Ste 313, El
Segundo, CA 90245.

SECTION 1.2. The exact legal name of Debtor is Rio Vista Operating Partnership, L.P., and
Debtor uses no other names or marks, and has no other locations, unless listed on Exhibit A
attached hereto.

 

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SECTION 1.3. Debtor owns the Collateral (as hereinafter defined), free from all liens,
security interests, or encumbrances, except for the lien granted for the benefit of RZB Finance LLC
(“RZB”) under that certain Leasehold Deed of Trust, Security Agreement, Financing
Statement and Assignment of Rents dated effective October 17, 1997, recorded in Volume 4700,
page 298 of the real property records of Cameron County, Texas, from Debtor for the benefit of RZB,
as modified by the Deed of Trust Modification Agreement effective as of September 15, 2004, between
RZB, Penn Octane Corporation and Borrower (as modified, the “RZB Lien”), which RZB Lien has been
fully subordinated to the first priority lien in favor of the Secured Parties granted under this
Agreement pursuant to a Lender’s Consent and Subordination Agreement (the “RZB Subordination
Agreement”) executed by Debtor and RZB concurrently with this Agreement.

ARTICLE II —  SECURITY INTERESTS.

SECTION 2.1. As collateral security for the payment and performance in full of all of the
indebtedness, obligations and liabilities of Debtor to the Secured Parties (whether due or to
become due, now existing or hereinbefore or hereafter arising) under or in respect of the Note and
the Letter (collectively, the “Obligations”), Debtor hereby pledges and grants to the Secured
Parties a lien on and security interest in all of the right, title and interest of Debtor in, to
and under the following certain property, wherever located, and whether now existing or hereafter
arising or acquired from time to time (collectively, the “Collateral”):

(a) the easements, licenses, leases of real property and fee deeds as described in Exhibit B
hereto (the “U.S. Easements”) together with a security interest in the 6-inch and 8-inch pipelines
located thereunder (the “Pipeline Assets”) and all associated equipment, pumping facilities, pumps,
fittings, cathodic protection ground beds, rectifiers, local supervisory protection software
(SCADA), machinery, improvements, property use agreements, easements, rights-of-way, permits and
records related to such U.S. Easements and Pipeline Assets;

(b) the permits, licenses, certificates, authorizations, registrations, orders, waivers,
variances and approvals granted by any Governmental Authorities or third Persons to Debtor, Rio
Vista Energy Partners, L.P. (“RVEP”), or their respective predecessors in interest for the
ownership or operation of the U.S. Easements or the Pipeline Assets;

(c) one hundred percent (100%) of the equity interests, representing one hundred percent
(100%) of the issued and outstanding corporate capital of Termatsal, S. de R.L. de C.V.
(“Termatsal”);

(d) one hundred percent (100%) of the equity interests, representing one hundred percent
(100%) of the issued and outstanding corporate capital of Penn Octane De Mexico, S. de R.L. de C.V.
(“POM”);

(e) the Equity Interest Purchase Option Agreement executed on April 7, 2006, by and among Jose
Vicente Soriano Garcia (“Soriano”), Dennis Michael Sanchez (“Dennis”) and Debtor, pursuant to which
Soriano and Dennis grant to RVOP or its designees the right to acquire all of the issued and
outstanding corporate capital of Tergas, S. de R.L. de C.V. (“Tergas”), together with (i) the
Irrevocable Power of Attorney executed by Soriano dated September 24, 2004, and (ii) the
Irrevocable Power of Attorney executed by Dennis dated April 7, 2006, each granting RVOP a power of
attorney with respect to such person’s respective interest in Tergas;

 

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(f) all accounts and general intangibles arising out of the U.S. Easements and Pipeline
Assets, the equity interests in Termatsal or POM or the Debtor’s rights with respect to the equity
interests in Tergas;

(g) any property of Debtor to which it is entitled in its capacity as a holder of any of the
U.S. Easements, Pipeline Assets, or the equity interests in Termatsal or POM or the Debtor’s rights
with respect to the equity interests in Tergas by way of distribution, return of capital or
otherwise, and any claim which Debtor now or may in the future acquire in its capacity as a holder
of any of the U.S. Easements, Pipeline Assets, or the equity interests in Termatsal or POM or the
Debtor’s rights with respect to the equity interests in Tergas;

(h) all books and records and all recorded data of any kind or nature, regardless of the
medium of recording, including, without limitation, all software, writings, plans, specifications
and schematics, concerning the U.S. Easements, Pipeline Assets, or the equity interests in
Termatsal or POM or the Debtor’s rights with respect to the equity interests in Tergas;

(i) all supporting obligations of every nature, rights to payment of money, insurance refund
claims and all other insurance claims and proceeds with respect to the U.S. Easements, Pipeline
Assets, or the equity interests in Termatsal or POM or the Debtor’s rights with respect to the
equity interests in Tergas; and

(j) all proceeds, products, additions and accessions to the U.S. Easements, Pipeline Assets,
or the equity interests in Termatsal or POM or the Debtor’s rights with respect to the equity
interests in Tergas and all substitutions and replacements for, and rents and profits of, any of
the U.S. Easements, Pipeline Assets, or the equity interests in Termatsal or POM or the Debtor’s
rights with respect to the equity interests in Tergas.

SECTION 2.2. Debtor acknowledges and agrees that, with respect to any term used herein that is
defined in either Article 9 of the Uniform Commercial Code in force in Texas, or Article 9 in force
at any relevant time or jurisdiction relating to the Collateral, the meaning to be given with
respect to any particular item of property shall be that under the more encompassing of the two
definitions (the applicable Uniform Commercial Code is hereinafter referred to as the “UCC”).

ARTICLE III —  DEBTOR’S COVENANTS.

Debtor covenants and agrees with the Secured Parties as follows:

SECTION 3.1. Debtor shall notify the Secured Parties immediately in writing if Debtor: (i)
changes or adds a name or mark to its business; (ii) changes in any respect the form under which
its business is operated; (iii) changes or adds a business location; or (iv) changes its state of
organization or registration.

SECTION 3.2. Debtor shall deliver to the Secured Parties all originals of any certificated
securities, negotiable documents, instruments or chattel paper (as such terms are defined in the
UCC) constituting Collateral as may be necessary under applicable law to perfect the security
interests granted hereunder, each duly endorsed and accompanied by duly executed instruments of
transfer or assignment satisfactory to the Secured Parties.

 

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SECTION 3.3. Debtor shall, at its expense, defend the Secured Parties’ security interest in
and to the Collateral against the claims and demands of all other persons, and appear in and defend
any action, suit or proceeding which may affect its title to, or the Secured Parties’ security
interest in, the Collateral.

SECTION 3.4. Debtor shall, subject to the rights and powers of the Secured Parties otherwise
provided for in this Agreement, in the Note or in the Letter, at its own expense: (i) collect all
amounts due to the Debtor under the Collateral and take such other action as may be reasonably
requested by the Secured Parties to enforce the Collateral, and (ii) maintain the Collateral in
good repair, working order and condition, normal depreciation and wear and tear excepted, and
replace any worn, broken or defective parts thereof.

SECTION 3.5. Debtor shall not use or keep any Collateral, or permit it to be used or kept, for
any unlawful purpose or in violation of applicable law.

SECTION 3.6. Debtor shall, at its expense, perform and observe in all material respects all
provisions of the Collateral to be performed by it, and will not directly or indirectly, amend,
modify, terminate, supplement or waive any right or consent to the amendment, modification
termination, supplementation or waiver of any right with respect to the Collateral or under the RZB
Subordination Agreement.

SECTION 3.7. Debtor shall keep its books and records for the Collateral at its principal place
of business. Debtor shall not move such books and records, or the Collateral, without written
consent of the Secured Parties.

SECTION 3.8. Debtor shall keep the Collateral free of unpaid charges, liens, security
interests, and encumbrances (except those granted to the Secured Parties or the RZB Lien), shall at
all times insure that the RZB Lien remains subordinate to the liens granted to the Secured Parties,
and shall pay when due all taxes and assessments with respect to the Collateral or its use or
operation.

SECTION 3.9. The Secured Parties shall have the right to inspect and make an inventory of the
Collateral, and to examine Debtor’s books and records concerning the Collateral at all reasonable
times and wherever located.

SECTION 3.10. Debtor shall obtain and maintain coverage insuring the Collateral against fire,
theft, and extended coverage risks ordinarily included in similar policies, all subject to the
Secured Parties’ approval, with proceeds payable to Debtor and to the Secured Parties as their
interests may appear. All policies shall require at least 15 days’ written notice to the Secured
Parties before any material change or cancellation. Debtor shall give the Secured Parties a
certificate or a copy of each such policy within 15 days after the date of this Agreement.

SECTION 3.11. Debtor shall notify the Secured Parties within five days if Debtor becomes
involved in any new claim or dispute, or in any litigation or other proceeding before any court,
tribunal, or similar body, in which any potential recovery from Debtor may exceed $50,000.

SECTION 3.12. Debtor shall not merge, consolidate, or acquire all or substantially all of the
assets of any other person or entity without written notice to the Secured Parties.

 

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SECTION 3.13. Debtor and the Secured Parties agree that all payments received by the Secured
Parties for payment of any of the Obligations shall be applied to the oldest portion of the
Obligations, whether evidenced by invoices or otherwise, unless otherwise applied by the Secured
Parties.

ARTICLE IV —  DEBTOR DEFAULT.

Any of the following shall be an event of Debtor default under this Agreement:

SECTION 4.1. Failure of Debtor to pay any of the Obligations when due.

SECTION 4.2. Failure of Debtor to perform any obligation under this Agreement.

SECTION 4.3. Making false statements to the Secured Parties, or withholding any information
with the intent to deceive the Secured Parties.

SECTION 4.4. Loss, theft, damage or destruction, levy, seizure, or attachment of any of the
Collateral, unless such Collateral is either (i) fully covered by insurance, or (ii) replaced as
Collateral by property of equal or greater value, or unless (iii) any such levy, seizure, or
attachment is released or dissolved within three days after it is made.

SECTION 4.5. A change in the financial or other condition of Debtor or the Collateral such
that in the Secured Parties’ opinion the Secured Parties’ risks are increased or the value or
security of the Collateral is impaired.

SECTION 4.6. Debtor’s dissolution or termination of existence, or insolvency of Debtor; or
Debtor’s inability to pay its debts as they mature; or the appointment of a receiver of any
property of Debtor; or Debtor’s filing of a voluntary petition in bankruptcy; or the adjudication
of Debtor as a bankrupt; or any transfer, without prior written consent by the Secured Parties, of
a substantial part of Debtor’s property.

ARTICLE V —  SECURED PARTIES’ REMEDIES.

Upon any Debtor default, the Secured Parties at their option and without demand or notice to
Debtor, may have any one or more of the following remedies, plus other remedies available under
applicable law:

SECTION 5.1. Declare all Obligations due and payable, with interest thereon, from the date of
default until paid, at the rate of 10% per annum or the maximum rate permitted by law, whichever is
less, unless a different rate is required by any applicable instrument.

SECTION 5.2. Take possession of the Collateral wherever located; and Debtor hereby authorizes
the Secured Parties to enter upon Debtor’s premises and secure or identify the Collateral as the
Secured Parties’.

SECTION 5.3. Sell or otherwise dispose of the Collateral at public or private, sale, whether
or not Debtor is present at the sale, on such terms and in such manner as the Secured
Parties may determine in compliance with the UCC and Debtor expressly agrees that reasonable
notice of the time and place of the sale shall be ten days.

 

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SECTION 5.4. Make demand for, and Debtor promptly shall deliver to the Secured Parties, in
kind, the proceeds of any sale or other disposition of Collateral; and the Secured Parties shall
have the right to notify any or all account Debtors of Debtor of the Secured Parties’ security
interest, and to require remittance directly to the Secured Parties of all sums due Debtor, and
Debtor hereby authorizes the Secured Parties, in their sole and absolute discretion, to compromise
and settle any claims of the Debtor against third persons in a commercially reasonable manner, and
to endorse Debtor’s name on any instruments received in payment of an account.

SECTION 5.5. A default hereunder is also a default under the Note and the Letter and the
Secured Parties shall have the right to pursue its remedies under such agreements and under this
Agreement, successively or concurrently, or otherwise as the Secured Parties may determine, and the
Secured Parties shall not thereby be stopped or prevented from pursuing any other remedy it may
have under such agreements, or under this Agreement, or by law.

SECTION 5.6. Make demand for, and Debtor promptly shall pay to the Secured Parties any
deficiency if proceeds of any sale or other disposition of Collateral are insufficient to satisfy
the Obligations; and, in addition, Debtor shall reimburse the Secured Parties upon demand for all
costs and expenses incurred by the Secured Parties in retaking, holding, and preparing the
Collateral for disposition, and in the sale or other disposition, and for all attorneys’ fees,
legal costs and expenses, and collection fees incurred by the Secured Parties in the exercise of
its rights and remedies under this Agreement and in the collection of Obligations. All such costs
and expenses also shall be Obligations, secured under this Agreement.

ARTICLE VI —  GENERAL.

SECTION 6.1. Debtor hereby authorizes the Secured Parties to prepare and/or file and/or add
additional information as it becomes available, or otherwise transmit any and all records,
including but not limited to writings or other written documents, if applicable, which Secured
Parties in their sole discretion shall deem necessary to create and perfect a security interest
consistent with this Agreement or with any future grant of a security interest authenticated by
Debtor, (such authentication can be by any medium, written or unwritten, including but not limited
to telephone, electronic transmission or a writing) including but not limited to a security
agreement, initial financing statement, financing statement, in lieu of financing statement,
amendments and continuation statements, by any means authorized by law, whether such law is
currently in effect or becomes effective after the execution hereof, including electronic filing.
Debtor understands and agrees that by executing this agreement, Debtor has hereby authenticated (as
that term is defined in the UCC) this Agreement as a record and authorizes the Secured Parties to
(1) prepare and file such record(s) without the signature of Debtor, (2) to file such writing
bearing any general, generic or super-generic description of the Collateral authorized by the UCC
and (3) authorizes Secured Parties to file any future records which shall hereby be deemed
authenticated (as defined in the UCC) by Debtor.

 

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SECTION 6.2. Notwithstanding anything herein to the contrary, (a) the Debtor shall remain
liable under the Collateral to the extent set forth therein and shall perform all of its duties and
obligations thereunder to the same extent as if this Agreement had not been executed, (b) the
exercise by the Secured Parties of any of the rights or powers conferred upon them under this
Agreement shall not release the Debtor from any of its duties or obligations under the Collateral,
and (c) the Secured Parties shall not have any obligations or liability under the Collateral by
reason of this Agreement, nor shall the Secured Parties be obligated to perform any of the
obligations or duties of the Debtor thereunder, or to take any action to collect or enforce any
claim for payment assigned hereunder. So long as a default shall not have occurred and be
continuing, Debtor shall be permitted to exercise all voting and other rights with respect to any
equity securities comprising Collateral as long as no vote shall be cast, or right exercised or
other action taken which, in Secured Parties’ reasonable judgment, would, directly or indirectly,
materially impair the value of any Collateral or which would be inconsistent with or result in a
default under the Letter. Upon the occurrence and during the continuance of a default, the
aforesaid rights shall immediately and automatically vest in Secured Parties.

SECTION 6.3. The Secured Parties’ sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession, whether pursuant to §9-207 of the UCC or
otherwise, shall be to deal with such Collateral in the same manner as it deals with similar
property for its own account. Neither the Secured Parties, nor their respective directors,
officers, employees or agents, shall be liable for failure to demand, collect or realize upon any
of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any of the Collateral upon the request of the Debtor or any other person or to
take any other action whatsoever with regard to any of the Collateral. The rights of the Secured
Parties hereunder shall not be conditioned or contingent upon the pursuit by the Secured Parties of
any right, power or remedy against the Debtor or against any other person which may be or become
liable in respect of all or any part of the Obligations or against any collateral security
therefor, guarantee thereof or right of offset with respect thereto. The Secured Parties shall not
have any obligation to exercise any of their rights or powers under this Agreement.

SECTION 6.4. This Agreement shall create a continuing security interest in the Collateral and
shall apply to all past, present and future Obligations, including, without limitation, Obligations
that arise under transactions that continue any of the Obligations, increase or decrease any of the
Obligations, or from time to time create new Obligations after all or any prior Obligations have
been satisfied. Upon termination or indefeasible payment, performance and discharge in full of the
Note and the Letter, and the indefeasible payment, performance and discharge of all Obligations in
full, the security interests granted under this Agreement shall terminate and Debtor shall be
entitled to the return, upon its request and at its expense, of such of the Collateral in the
possession of the Secured Parties as shall not have been sold or otherwise applied pursuant to the
terms hereof. The Secured Parties shall, promptly upon Debtor’s request, execute termination
statements or other filings as Debtor may require and provide to Secured Parties in executable form
to evidence the termination of this Agreement and the security interests granted hereby.

SECTION 6.5. All notices shall be in writing and delivered personally or by certified mail,
postage prepaid, to the other party at the following addresses:

 

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To Secured Parties:

c/o TransMontaigne Product Services Inc.

Attn: President

1670 Broadway, Suite 3100

Denver, Colorado 80202

To Debtor:

Ian Bothwell

2121 Rosecrans Ave, Ste 3355

El Segundo, CA 90245

or other address given by notice, and shall be effective when delivered personally or as shown on
the receipt, or if none, 48 hours after deposit in the mails.

SECTION 6.6. This Agreement shall inure to the benefit of and shall bind each of the parties
and their respective heirs, representatives, successors, and assigns; but Debtor shall not assign
any interest or obligation herein without prior written consent of the Secured Parties.

SECTION 6.7. If any provision hereof is held to be invalid, the other provisions shall remain
enforceable unless deletion of the invalid material will defeat the essential purposes of the
parties as expressed herein.

SECTION 6.8. The terms of this Agreement are intended by the parties as the complete, final,
and exclusive statement of their agreement as to the matters described herein, and may not be
contradicted by evidence of any prior or contemporaneous oral or written agreement.

SECTION 6.9. If two or more parties are referred to herein as Debtor, they shall be jointly
and severally liable under this Agreement, and the liability of each shall not be affected as to a
party by the termination or release of any party or security of or from any other party.

SECTION 6.10. This Agreement may be executed in counterparts, each of which shall be an
original but all of which together shall constitute but one and the same instrument.

SECTION 6.11. This Agreement and all transactions contemplated herein or resulting herefrom
shall be governed by and construed in accordance with Texas law.

SECTION 6.12. This Agreement supersedes the Original Security Agreement.

 

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Executed as of the date first given above.

	 	 	 	 	 	 	 
	TRANSMONTAIGNE PRODUCT SERVICES INC.	 	RIO VISTA OPERATING PARTNERSHIP L.P.
	 	 	 	 	By Rio Vista Operating GP LLC,
	By:	 	 	 	its General Partner
	 

	 	 	 	 	 	 
	Name:

	 	William S. Dickey	 	 	 	 
	Title:

	 	President and Chief Operating Officer
	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Ian T. Bothwell
	 

	 	 	 	Title:
	 	Vice President Chief Financial Officer
	 
	 	 	 	 	 	 
	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	 	 	 	 

 

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EXHIBIT A

Other Debtor Names, Marks or Locations

None

 

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EXHIBIT B

U.S. Easements

[See Attached]

 

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EXHIBIT B

To Restated and Amended Security Agreement

dated September 12, 2007

U.S. EASEMENTS

Rio Vista Operating Partnership L.P. (“RIO”), represents that it is the current owner of the
rights in and to the following, and in instances where RIO was not the original grantee, it
acquired ownership pursuant to that certain Conveyance Agreement dated9/30/04, from Penn Octane
Corporation (“Penn”) , to RIO, recorded 12/1/04 in Volume 10806, Page 223, as Document No. 00067344
of the Cameron County, Texas records.

	1	 	(a) International Boundary and Water Commission, United States and Mexico, United States
Section, License No. LSF/G-1589; and

(b) US Dept. of State Permit authorizing Penn to construct two pipelines crossing the
International Boundary Line between the U.S. and Mexico for the transport of LPG and Refined
Product, dated July 26, 1999;

as recorded 5/22/01 in Vol. 7082, Page 194, as Items 1 & 2.

	2	 	Easement dated 11/19/99 from Miguel Ortiz, et al., to CPSC International (“CPSC”), recorded
in Vol. 6286, Page 200.

	3	 	Easement dated 3/30/01from Texas Department of Transportation for US Highway 281 crossing,
Control #220-4, recorded 5/22/01 in Vol. 7082, Page 194, as Item 13.

	4	 	Easement dated 7/25/03 from National Kingdom Corp. to Penn , recorded 10/21/03 in Vol. 9530,
Page 26.

	5	 	Warranty Deed from Sue C. Melancon aka Susan C. Melancon, to Penn dated 4/1/02, recorded
4/18/02 in Vol. 7902, Page 187. (Note: Deed conveys a 25-acre tract and a .88-acre tract).

	6	 	Easement from Teofilo Flores, Jr., et ux, to Penn dated 11/21/01, recorded 1/23/02 in Vol.
7689, Page 215-222.

	7	 	Easement dated 8/12/99from Milton E. Wentz, Jr., Trustee to CPSC, recorded in Vol. 6286,
Page 211-216.

 

 

 

	8	 	Easement from Cameron County Drainage District Number One to CPSC,
Recorded in Vol. 7082, Page 194, as Item 12

	 
	9	 	INTENTIONALLY DELETED.

	10	 	Easement from Kincannon Farms Partnership to CPSC, dated 8/9/99, recorded in Vol. 6286, Page
194-199.

	11	 	Easement from Estate of Alberta C. Zins, Deceased to Penn dated 8/21/00, recorded 9/07/00 in
Vol. 6522, Page 280-285.

	12	 	Easement from Dr. Joseph W. Henry, to CPSC, dated 8/09/99, recorded 5/12/00 in Vol. 6286,
Page 189.

	13	 	Easement from Walter Edward Plitt, IV, as Trustee, to Penn dated 8/28/00, recorded 9/07/00 in
Vol. 6522, Page 261-266.

	14	 	Easement from Lucio Gonzalez, Jr. to Penn dated 9/13/00, recorded 1/05/01 in Vol. 6763, Page
161-166.

	 
	15	 	INTENTIONALLY DELETED (same as #8 above).

	16	 	Easement from Dale Brooks to Penn Octane Corporation dated 11/10/00, recorded on 12/05/00 in
Vol. 6703, Page 166-172.

	17	 	Pipeline Crossing Agreement from Union Pacific Railroad Company (“UPRR”), to CPSC, dated
7/20/99, for Mile Post 7.50, recorded Vol. 7082, Page194, Item 11.

	18	 	Easement from Jose J. Marquez to Penn dated 8/29/00, Recorded on 9/07/00 in Vol. 6522, Page
267-272.

	19	 	Easement from Jose J. Marquez to Penn dated 8/29/00, Recorded on 9/07/00 in Vol. 6522, Page
273-279.

	20	 	Easement from Texas Department of Transportation dated 3/30/01, for US Hwy No. 77 and 83
crossings; Control #39-9, recorded on 5/22/01 in Vol. 7082, Page 194, as Item 17.

	21	 	Easement from Peter Marchesin (Blocks 3, 14, and 16) to Penn dated 7/15/02,recorded on
10/16/02 in Vol. 8414, Page 74-81.

	22	 	Easement from Texas Parks & Wildlife Department to Penn, recorded in Vol. 8761, Page 78-96
(license agreement.)

	23	 	INTENTIONALLY DELETED (same as #21 above)

 

 

 

	24	 	Easement from Gonzalez Family Limited Partnership to Penn dated 7/06/00,recorded on 9/07/00
in Vol. 6522, Page 300.

	 
	25	 	INTENTIONALLY DELETED (same as #21 above).

	 
	26	 	INTENTIONALLY DELETED (same as #22 above).

	27	 	Easement from Jesus L. and Maribel Nieto to Penn dated 11/03/00, recorded on 12/05/00 in Vol.
6703, Page 159.

	28	 	Easement from Lloyd S. Fallin, et al. to Penn dated 12/13/00, recorded on 1/04/01 in Vol.
6762, Page 74.

	29	 	Easement from Nieves Hernandez to Penn dated 6/23/00, recorded 9/07/00, in Vol. 6522, Page
307.

	30	 	Warranty Deeds from Sara Patricia Purswell Moesker and Arthur Don Purswell, to Penn dated
1/30/01, recorded in Vol. 6851, at Pages 208 & 211

	31	 	Easement from Miguel A. Rubiano, et al. to Penn dated 7/28/00,recorded on 1/05/01 in Vol.
6763, Page 136.

	32	 	Easement from Reynaldo G. Garza, Jr. to Penn Octane Corporation dated 2/12/01,rRecorded on
2/13/01 in Vol. 6842, Page 0008 (and also identified as Item 31 at Vol. 7082, Page 194)

	33	 	Easement (Van Reit) retained by Penn, as Grantor, in deed to CPSC dated 11/19/99, recorded in
Vol. 7082, Page 182; together with Joint Use Agreement dated 9/14/01, between Penn and
Brownsville Navigation District of Cameron County, Texas concerning said easement.

	34	 	Easement from Justo Barrientes, Jr. to Penn dated 8/21/00, recorded on 1/05/01 in Vol. 6763,
Page 149.

	35	 	Easement from Roberto Vasquez, Jr., et ux, to Penn dated 6/16/00, recorded on 9/07/00 in Vol.
6522, Page 286.

	 
	36	 	Easement from Roberto Leal to Penn dated 8/31/00, recorded on 9/07/00 in Vol. 6522, Page 293.

	37	 	Easement from SolTex Development, Inc. to CPSC, dated 4/20/00, recorded 5/12/00 in Vol. 6286,
Page 184.

	38	 	Easement dated 6/23/99 from Texas Department of Transportation for Highway No. FM511, Control
#684-1, recorded 5/22/01 in Vol. 7082, Page 194 , as Item 16.

 

 

 

	39	 	Encroachment Agreement, Folder No. 1785-11, between Union Pacific Railroad to CPSC, dated
10/7/99, recorded in Vol. 6286, Page 184.

	40	 	Easement dated 8/25/03, from Phillip Arnold Bleakney, Jr., et al., to Penn, recorded in Vol.
9530, Page 33.

Easement dated 7/18/02 from Richard R. Lee, to Penn, recorded in Vol. 8234, page 78.

Permit from Cameron County Engineering, dated 7/17/99, for installation of two
pipelines along right-of-way of Chemical Road, Old Port Isabel Rd, FM 1847, Emilia
Lane, Old Alice Road, County Road/Butler Road, and Carmen Avenue; as recorded in
Volume 7082, Page 194, as Item 14. (NOTE: appears to be same permit for Parcels
13, 27 and 43).

Easement Agreement dated 8/30/05 from Juan Antonio Silva Salazar to RIO, recorded in
Volume 11792, Page 188.

Approval dated 6/23/99, from Texas Department of Transportation, Hwy. SH 48, Control
#220.7, to CPSC, as recorded in Volume 7082, Page 194, as Item 15.

Easement dated 8/30/05, from S&S Truck & Equipment Inc., dba S&S Truck Sales, to
RIO, recorded in Vol 11792, Page 190.

Easement dated 10/18/99from Texas Department of Transportation for US Highway FM
1847, Control 1801-1 (Parcel 36).

Warranty Deed dated 11/10/00, from Gulf Breeze, Inc., to Penn, recorded 12/7/00 at
Vol. 6709, Page 197. (Note: Deed conveys a 25-acre parcel of land)

Special Warranty Deed effective as of 8/8/00, from Mae Dean Wheeler, as Trustee of
the F.W. Bert Wheeler Trust and the Mae Dean Wheeler Trust, to Penn, recorded
6/5/02, as Document No. 00029877. (Note: Deed conveys a 21.761-acre tract).

Quit Claim Deed effective as of 8/8/00, from Mae Dean Wheeler, as Trustee of the
F.W. Bert Wheeler Trust and the Mae Dean Wheeler Trust, to Penn, recorded 6/5/02, as
Document No. 00029878. (Note: Deed conveys a .695-acre tract).

Pipeline Crossing Agreement between UPRR and CPSC, dated 7/19/99, for Mile Post
198.59, Folder No. 1785-58, Audit No. 211130, as recorded in Volume 7082, Page 194
as Item 9.

Pipeline Crossing Agreement between UPRR and CPSC, dated 7/19/99, from Mile Post
6.45, Folder No. 1785-60, Audit No. 211174, as recorded in Volume 7082, Page 194 as
Item 10.

 

 

 

Easement Agreement for pipeline right-of-way, Contract #3154, dated 9/22/99, as
amended, from Brownsville Navigation District of Cameron County, Texas to RIO.

Right of Way and Easement Agreement from Titan Wheel International, Inc. dba Titan
Tire Corporation of Texas, to RIO, dated 1/20/06, recorded 8/10/06, in Vol. 12897,
Page 11, as Document No. 00046864.

Right of Way and Easement Agreement and Subordination Agreement from Juan Guajardo,
Jr. Farms, Inc., to RIO, dated 2/23/07, recorded 3/21/07 in Vol. 13617, Page 298, as
Document No. 00015006.1

Any and all documentation relating to status of certain parcels of the U.S.
Easements and/or Pipeline Assets as indicated on Map Alignment Sheets, prepared by
Holdar Engineering, revised as of July 2002, as follows:

	 	a.	 	Esquivel Family Trust; pertaining to Parcel 4;

	 
	 	b.	 	Parcel 4A

	 
	 	c.	 	Parcel 9B

	 
	 	d.	 	Parcel 14C

	 
	 	e.	 	Parcel 33

NOTE: All recording references are to the County Clerk’s Office in Cameron County, TexasFiled by Bowne Pure Compliance

 

Exhibit 10.66

FIRST PRIORITY EQUITY INTEREST PLEDGE AGREEMENT

This First Priority Equity Interest Pledge Agreement (Contrato de Prenda sobre Partes Sociales en
Primer Lugar y Grado) is entered into on this 12th day of September, 2007 (the
“Agreement”), by and among Rio Vista Operating Partnership, L.P. (“RVOP”), Penn
Octane International, LLC (“POI”) (RVOP and POI are collectively referred herein as
“Pledgors”), and TransMontaigne Product Services, Inc. (“TPSI”) and TransMontaigne
Partners L.P. (“TLP”) (TPSI and TLP are collectively referred herein as Pledgees”)
with the acknowledgment of Penn Octane de Mexico, S. de R.L. de C.V. (“Issuer”), in
accordance with the following Preliminary Statements, Representations and Clauses.

Preliminary Statements

WHEREAS:

	A.	 	TLP and RVOP are parties to a Letter of Intent (the “LOI”) dated September 12,
2007 pursuant to which TLP is paying RVOP a refundable deposit in the amount of Six Million
Five Hundred Thousand Dollars ($6,500,000.00) (the “Deposit”) in connection with the
proposed purchase of certain of RVOP’s assets.

	B.	 	TPSI and RVOP are parties to that certain Restated and Amended Promissory Note (the
“Promissory Note”) in the principal sum of One Million Dollars ($1,000,000.00), dated
September 12, 2007, pursuant to which RVOP has agreed to pay to TPSI the principal sum
together with interest (the “Loan”) pursuant to the terms and conditions set forth in
the Promissory Note.

	C.	 	The obligations of RVOP under the LOI to refund the Deposit and under the Promissory
Note to repay the Loan (collectively, the “Secured Obligations”) are secured by a
security interest in specified collateral as set forth in that certain Restated and Amended
Security Agreement (as amended, restated, supplemented or otherwise modified from time to
time, the “Security Agreement”), dated September 12, 2007, entered into by and among
RVOP and the Pledgees.

	D.	 	Pursuant to the obligations assumed by RVOP under the RVOP Agreements, and as security
for the timely payment in full when due (whether at stated maturity, by acceleration or
otherwise) of the Secured Obligations, (i) Pledgors shall execute and deliver this Agreement
in order to grant a perfected first priority pledge and security interest to Pledgees in and
to 100% (one hundred percent) of the issued and outstanding corporate capital of Issuer, and
(ii) RVOP will cause certain other agreements (the “Other Mexican Security Documents”)
to be executed and delivered granting a perfected first priority pledge and security interest
to Pledgees in and to one hundred percent of the corporate capital of Termatsal, S.
de R.L. de C.V. and assigning certain rights and actions that RVOP is entitled to in
connection to the equity interests issued by Tergas, S. de R.L. de C.V. (“Tergas”).

 

1

 

	E.	 	The LOI, the Promissory Note, the Security Agreement and the Other Mexican Security
Documents are referred to herein as the “RVOP Agreements”). Capitalized terms used
herein and not defined herein shall have the meaning assigned to such terms in the Security
Agreement.

Representations and Warranties

I. The Pledgors hereby represent and warrant that:

	 	(a)	 	Pledgors are duly organized and validly existing under the laws of its
jurisdiction of incorporation, with full legal capacity and corporate authority to
enter into, deliver and perform its obligations under this Agreement;

	 	(b)	 	RVOP is the sole, legal and beneficial owner of 1 (one) equity interest
Series B-1 representing MxP$49,950.00 pesos, legal tender of Mexico (“Pesos”),
of the fixed portion of the corporate capital of Issuer, which represents 99% (ninety
nine percent) of the total issued and outstanding corporate capital of Issuer;

	 	(c)	 	POI is the sole, legal and beneficial owner of 1 (one) equity interest Series
B-1 representing MxP$50.00 Pesos, of the fixed portion of the corporate capital of
Issuer, which represents 1% (one percent) of the total issued and outstanding
corporate capital of Issuer;

	 	(d)	 	As security for the payment and performance, as the case may be, in full of
the Secured Obligations, Pledgors wish to grant a perfected first priority pledge and
security interest in and to their equity interests of the corporate capital of Issuer,
which represent 100% (one hundred percent) of the issued and outstanding corporate
capital of Issuer, in favor of Pledgees (the “Pledged Equity Interests”);

	 	(e)	 	the Pledged Equity Interests have been duly and validly issued by Issuer and
are fully subscribed and paid for;

	 	(f)	 	the Pledged Equity Interests are free and clear of any Liens (as hereinafter
defined), encumbrances or options or any other ownership limitations or preemptive
rights of any kind, except for the pledge created hereunder or as otherwise permitted
by the RVOP Agreements and except for the
preferential rights of the associates of Issuer as provided in the bylaws of Issuer
and expressly provided by Law;

 

2

 

	 	(g)	 	to their knowledge the Pledged Equity Interests are not subject to any
agreement, other than RVOP Agreements, which restricts assignment, transfer or pledge
of the Pledged Equity Interests, except for the Issuer’s bylaws and as provided by
Law;

	 	(h)	 	to their knowledge they do not require any authorization or approval, other
than the ones obtained, in order to execute this Agreement or to perfect and maintain
a perfected first priority security interest over the Pledged Equity Interests, or to
comply with or perform the obligations assumed by them hereunder, which are legal,
valid and enforceable against the Pledgors in accordance with their terms;

	 	(i)	 	as of the date hereof, there is no pending and, to their knowledge threatened
action, claim, requirement or proceeding before any court, governmental agency or
arbitrator that affects or could affect the legality, validity or enforceability of
this Agreement or the Pledgors’ legal and valid title to the Pledged Equity Interests
they own;

	 	(j)	 	to their knowledge the entering into and performance of this Agreement does
not violate, or constitute a breach under (i) any provision of the Pledgors’
organizational documents, (ii) any agreement, contract, license, judgment or order to
which any of the Pledgors is a party or by which any of the Pledgors or any of their
assets are bound, or (iii) any law, regulation, circular, order or decree of any
branch of power or governmental entity;

	 	(k)	 	the individual executing this Agreement on behalf of the Pledgors has all
necessary power, authority and corporate authorization to execute and deliver this
Agreement on behalf of the Pledgors, and such powers, authority and corporate
authorizations have not been amended, revoked or limited in any way;

	 	(l)	 	they are in agreement with pledging the Pledged Equity Interests owned by
them in favor of Pledgees, in accordance with this Agreement; and

	 	(m)	 	they acknowledge and agree that the correctness and accuracy of its
representations and warranties set forth herein, the validity, binding effect and
enforceability of this Agreement and of the first priority security interest over the
Pledged Equity Interests created hereby in favor of
Pledgees is a material inducement for TLP to make the Deposit and for TPSI to make
the Loan.

 

3

 

II Issuer hereby represents and warrants that:

	 	(a)	 	Issuer is a sociedad de responsabilidad limitada de capital variable (limited
liability company), duly organized and validly existing under the laws of Mexico; and

	 	(b)	 	its representative has all necessary power and corporate authorization to
execute and deliver this Agreement on its behalf, and such powers and corporate
authorizations have not been revoked or limited in any way.

NOW, THEREFORE, based on the Preliminary Statements and Representations and Warranties
contained herein, the parties hereto agree as follows:

Clauses

First. Certain Defined Terms. 

(a) As used in this Agreement and in addition to any other defined terms in this
Agreement, the following terms shall have the following meanings:

“Agreement” has the meaning specified in the preamble to this Agreement.

“Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City or Mexico, are authorized or required by law to remain
closed.

“Distributions” has the meaning specified in Clause Fourth (d) of this Agreement.

“Dollars” means the legal currency of the United States of America.

“Event of Default” means a default under any of the RVOP Agreements;
provided, however, that for purposes of this Agreement, such term shall
also include, without limitation (i) the failure of any Pledgor to comply, perform or
observe any of its obligations hereunder; and (ii) if any representation made by any
Pledgor hereunder is false, incorrect or misleading in any respect.

“Governmental Authority” means the government of the United States of America,
Mexico, any other nation or any political subdivision thereof, whether state or local, and
any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to the government.

 

4

 

“Issuer” has the meaning specified in preamble of this Agreement.

“Law” means the General Law of Negotiable Instruments and Credit Transactions (Ley
General de Títulos y Operaciones de Crédito).

“Lien” means any mortgage, deed of trust, pledge, hypothecation, encumbrance, lien,
charge or security interest or any preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including any conditional sale
or other title retention agreement and any capital lease having substantially the same
economic effect as any of the foregoing).

“RVOP Agreements” means the LOI, the Promissory Note, the Security Agreement,
this Agreement and the Other Mexican Security Documents.

“Mexico” means the United States of Mexico.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

“Pesos” has the meaning specified in representation I (b) of this Agreement.

“Pledged Equity Interests” has the meaning specified in representation I (c) of
this Agreement.

“Pledgors” has the meaning specified in the preamble to this Agreement.

(b) Usage. The definitions in this Clause First shall apply equally to
both the singular and plural forms of the terms defined. Whenever the context may require,
any pronoun shall include the corresponding masculine, feminine and neuter forms. The
words “hereof”, “herein” and “hereunder” and words of similar import, when used in this
Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, unless otherwise expressly indicated, and all references in this Agreement
to Clauses, sections, paragraphs, Schedules and Exhibits shall be deemed to be references
to Clauses, sections, paragraphs, Schedules and Exhibits of this Agreement, unless the
context shall otherwise require. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”, unless such phrase otherwise
appears. As used herein and any certificate or other document made or

 

5

 

delivered pursuant hereto, (i) the words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”, (ii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or suffer to
exist (and the words “incurred” and “incurrence” shall have correlative meanings), (iii)
the words “asset” and “property” shall be construed to have the same meaning and effect and
to refer to any and all tangible and intangible assets and properties, including cash,
capital stock, securities, revenues, accounts, leasehold interests and contract rights,
(iv) references to agreements shall, unless otherwise specified, be deemed to refer to such
agreements as amended, supplemented, restated or otherwise modified from time to time; and
(v) references to any statute, law or regulation shall be deemed to include any amendments
thereto from time to time or any successor statute, law or regulation thereof.

Second. Pledge; Grant of First Priority Security Interest.

	(a)	 	The Pledgors hereby grant an unconditional and irrevocable first priority pledge and security
interest to Pledgees in and to the Pledged Equity Interests as collateral security for the due
and timely payment, performance and satisfaction when due (whether at stated maturity, by
acceleration or otherwise) of any and all Secured Obligations.

	(b)	 	For purposes of perfecting the first priority security interest over the Pledged Equity
Interests pursuant to paragraphs III of Article 334 of the Law, the Pledgors hereby deliver to
Pledgees for the benefit of the Lender (i) the equity interest certificates representing the
Pledged Equity Interests; and (ii) a copy of the entry in the associates’ registry book of
Issuer, duly certified by the Legal Representative of Issuer (in the form of Exhibit
“A” hereto) evidencing that, on the date hereof, the first priority security interest in
the Pledged Equity Interests have been duly recorded in such associates’ registry book; and
Issuer hereby acknowledges the pledge created hereby with respect to Pledged Equity Interests.

	(c)	 	In accordance with Article 337 of the Law, the Pledgors and Pledgees agree that this
Agreement shall serve as receipt (resguardo) by Pledgees of the Pledged Equity Interests.

	(d)	 	The parties agree that, in the event the Pledged Equity Interests are exchanged for new
equity interest(s) or reclassified, by Issuer or a third party, the Pledgors and Pledgees
shall, if necessary, undertake any action that may be necessary, including the delivery of new
equity interest certificates as collateral to the Pledgees, to maintain the pledge referred to
in this Agreement, and such new equity interests shall be deemed for purposes of this
Agreement as Pledged Equity Interests.

 

6

 

	(e)	 	The parties agree that any (i) value increase of the Pledged Equity Interests; (ii) issuance
of an additional equity interests of Issuer acquired by the Pledgors or a third party; or
(iii) capital increases by Issuer shall be subject to the pledge created hereunder and if
necessary the Pledgors shall cause to pledge those pursuant to the same terms and conditions
of this Agreement, and for purposes of this Agreement and to the extend permitted by
applicable law, shall be deemed as Pledged Equity Interests.

Third. Continuing First Priority Security Interest. The first priority security interest
shall be continuing and shall (i) remain in full force and effect until all amounts due under the
LOI and the Promissory Note have been paid in full; (ii) be binding upon the Pledgors, their
respective successors and permitted assigns; and (iii) inure to the benefit of and be enforceable
by Pledgees and their respective successors and assigns.

Upon payment of the amounts due under the LOI and the Promissory Note, the Pledged Equity Interests
shall be released from the Lien created hereby, and this Agreement and all obligations (other than
those expressly stated to survive such termination) of Pledgees and the Pledgors shall terminate,
all without delivery of any instrument or performance of any act by any party, and all rights to
the Pledged Equity Interests shall revert to the Pledgors. At the request of any of the Pledgors
following any such termination, Pledgees shall deliver to such Pledgors the equity interest
certificates held by Pledgees, and execute and deliver to Pledgors such documents as Pledgors shall
reasonably request to evidence such termination and release.

Fourth. Voting and Management of the Pledged Equity Interests.

	(a)	 	Unless an Event of Default shall have occurred and be continuing, the Pledgors will have the
right to exercise the voting rights with respect to the Pledged Equity Interests, and such
right can be exercised by Pledgors without need of proxies, instructions, powers or attorney
or other documents or authorizations from Pledgees; provided, however, that no
vote shall be cast or corporate or other organizational right exercised or other action taken
which materially impairs all or any material portion of the Pledged Equity Interests or which
violates any provision of this Agreement.

	(b)	 	Pledgees herein grant to Pledgors a power of attorney with the authority to exercise the
voting right with respect to the Pledged Equity Interests pursuant to the term and conditions
described in subparagraph (a) above. In addition, Pledgees shall execute and deliver to the
Pledgors, or cause to be executed and delivered to the Pledgors, any document or instrument as
the Pledgors may reasonably request for the purpose of confirming the authority of Pledgors to
exercise the voting and/or consensual rights and powers it is entitled to exercise
pursuant to subparagraph (a) above and to receive the cash dividends it is entitled to
receive pursuant to subparagraph (d) below.

 

7

 

	(c)	 	Upon the occurrence and during the continuation of an Event of Default, all rights of the
Pledgors to exercise the voting and other rights and powers that the Pledgors are entitled to
exercise pursuant to the foregoing provisions of paragraph (a) of this Clause Fourth shall
cease, and all such rights shall thereupon be exercised by Pledgees, who shall have the sole
and exclusive right and authority to exercise such voting and other rights and powers;
provided that Pledgees shall have the right, but not the obligation, at any time following and
during the continuance of an Event of Default to authorize the Pledgors in writing to exercise
such rights.

	(d)	 	Unless an Event of Default shall have occurred and be continuing, the Pledgors shall be
permitted to receive cash dividends, amortizations, profits, capital reimbursements, sums upon
dissolution and liquidation of Issuer and other distributions distributed that correspond to
the Pledged Equity Interests (the “Distributions”).

	(e)	 	Upon the occurrence and during the continuation of an Event of Default, Issuer shall deliver
to Pledgees all Distributions. Notwithstanding the foregoing, if Pledgors receive
Distributions during the occurrence and the continuation of an Event of Default, Pledgors
shall hold the received Distributions as depositary of Pledgees and, upon Pledgees’ written
request, Pledgors shall deliver those Distributions to Pledgees.

Fifth. Covenants of Pledgors. So long as this Agreement is in effect, the Pledgors covenant
and agree that they (a) shall defend the right, title and interest of Pledgees in and to the
Pledged Equity Interests against the claims and demands of any Person other than Pledgees; (b)
shall not create, incur, assume, or permit to exist any Lien or security interest or option in
favor of, or any claim of any Person with respect to, any of the Pledged Equity Interests, whether
now held or hereafter subscribed, except for the first priority security interest created herein;
(c) shall not sell, transfer, assign, pledge, deliver, transfer in trust, grant, usufruct or
otherwise dispose of, or grant any option with respect to, any such Pledged Equity Interests or any
interest therein without the prior written consent of Pledgees; (d) shall execute and deliver to
Pledgees such documents in favor of Pledgees and do such things relating to the first priority
security interest created herein as Pledgees may reasonably request in order to protect and
maintain the first priority security interest and to protect and preserve the Pledged Equity
Interests, and pay all reasonable costs arising from or in connection therewith; (e) shall pay any
and all taxes, assessments, and other charges of any nature which may be imposed, levied, or
assessed against or with respect to the Pledged Equity Interests or in connection with any
Distributions (other than taxes payable by Issuer in connection with such Distributions);
and (f) shall cause Issuer to pay taxes payable by Issuer in connection with such Distributions.

 

8

 

Sixth. Safekeeping of the Pledged Equity Interests. The obligations of Pledgees with
respect to the safekeeping and preservation of the Pledged Equity Interests shall be limited to the
obligations imposed by law. Any actions carried out by Pledgees for the safekeeping and
preservation of the Pledged Equity Interests shall be at the sole expense and risk of the Pledgors,
except for actions or omissions caused by the gross negligence, bad faith or willful misconduct of
Pledgees.

Seventh. Events of Default. If an Event of Default shall occur and be continuing (a) all
rights of the Pledgors to exercise or refrain from exercising any voting and other rights which
they would otherwise be entitled to exercise pursuant to Clause Fourth hereof shall cease and be
exercised thereafter by Pledgees; (b) Pledgees shall have the right to keep any and all
Distributions thereafter paid in respect of the Pledged Equity Interests and apply them to the
payment of the Secured Obligations; and (c) Pledgees are hereby expressly and irrevocably
authorized by the Pledgors to foreclose upon the first priority security interest created herein
pursuant to the provisions of Clause Eighth of this Agreement, and to exercise its rights in any
other manner as set forth in the Law.

Eighth. Foreclosure.

	(a)	 	The Pledgors hereby expressly and irrevocably agree that upon the occurrence of an Event of
Default, Pledgees may foreclose upon the first priority security interest created herein and
request the sale of the Pledged Equity Interests, if any, pursuant to Article 341 of the Law,
or exercise its rights in any other manner as set forth in the Law or this Agreement, in order
to seek payment of the Secured Obligations.

	(b)	 	The Pledgors shall take or shall cause Issuer to take any and all reasonable actions and/or
initiate any and all reasonable proceedings that may be necessary or convenient, in the
Pledgees’ sole discretion, to facilitate the execution and transfer of the Pledged Equity
Interests. The Pledgors further agree to do or cause to be done all such other reasonable acts
as may be necessary or convenient to expedite such sale or sales of all or any portion of the
Pledged Equity Interests, and to execute and deliver such documents and take such other action
as Pledgees deem necessary or advisable in order that any such sale may be in compliance with
applicable law.

	(c)	 	Due to the fact that the some Secured Obligations are monetary obligations denominated in
Dollars and payable outside of Mexico, in order to satisfy such Secured Obligations, any and
all amounts in Pesos that are received by Pledgees will be (i) exchanged by Pledgees in a
foreign exchange transaction into Dollars
with a financial institution appointed by Pledgees, and the currency so exchanged shall be
distributed by Pledgees pursuant to the RVOP Agreements; or (ii) in case such Pesos cannot
be exchanged into Dollars as a result of exchange rate controls or other governmental
action, law or regulation, Pledgees will deliver such Pesos to the Lender pursuant to the
provisions of the RVOP Agreements.

 

9

 

Ninth.- Assignments. Unless the RVOP Agreements provide otherwise, the rights and
obligations arising from this Agreement may not be assigned or transferred by the Pledgors to any
third party without the prior written consent of Pledgees. Pledgees may assign, in whole or in
part, their rights hereunder, without requiring the consent of the Pledgors to perform such
assignment or transfer.

Tenth.- Amendments. Unless the RVOP Agreements provide otherwise, this Agreement may only
be amended or modified with the prior written consent of the Pledgors and Pledgees, subject to any
consent required in accordance with the RVOP Agreements.

Eleventh.- Notices. All notices to be delivered by the parties hereto shall be made in
writing in English (together with a Spanish translation), and shall be served either: (i)
personally, return receipt requested; or (ii) by international recognized courier delivery, return
receipt requested. All notices shall be served at the following addresses, and shall become
effective upon personal delivery:

To RVOP:

Rio Vista Operating Partnership, L.P.

902 Chemical Road,

Brownsville, Texas 78251

Attention: President

To POI:

Penn Octane International, LLC.

902 Chemical Road,

Brownsville, Texas 78251

Attention: President

To Pledgees:

c/o TransMontaigne Product Services, Inc.

1670 Broadway, Suite 3100

Denver, Colorado

Attention: President

 

10

 

To the Issuer:

Penn Octane de Mexico, S. de R.L. de C.V.

Insurgentes Sur 1802, 2 Piso, Colonia Florida

Mexico City, Mexico, C.P. 01030

Attention: Ian Bothwell

Twelfth.- Exhibits and Captions. All documents attached hereto are hereby incorporated by
reference into, and shall be deemed a part of, this Agreement. The captions and headings contained
in this Agreement are for convenience only and shall not affect the interpretation of this
Agreement.

Thirteenth.- Jurisdiction, Governing Law. For all matters relating to the interpretation
and fulfillment of this Agreement, the parties hereto expressly and irrevocably submit to the
applicable laws of Mexico, and to the jurisdiction of the competent courts sitting in the City of
Mexico, Federal District, Mexico, with respect to any action or proceeding arising out of or
relating hereto, and the parties hereby expressly and irrevocably waive all rights to any other
jurisdiction to which they may be entitled to by reason of their present or future domiciles, or by
any other reason.

[Signature Page Follows]

 

11

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on this 12th day of September
2007.

	 	 	 	 	 	 	 
	Rio Vista Operating Partnership, L.P.

By Rio Vista Operating GP LLC

its General Partner	 	Penn Octane International, LLC
	 
	 	 	 	 	 	 
	 	 	 
	Name:

	 	Ian T. Bothwell
	 	Name:
	 	Ian T. Bothwell
	Title:

	 	Vice President, Chief Financial
Officer
	 	Title:
	 	Manager
	 
	 	 	 	 	 	 
	Pledgees:	 	 	 	 
	 
	 	 	 	 	 	 
	TransMontaigne Partners L.P.

By TransMontaigne Operating GP L.L.C.,

its General Partner	 	TransMontaigne Product Services,
Inc.
	 
	 	 	 	 	 	 
	 	 	 
	Name:

	 	William S. Dickey
	 	Name:
	 	William S. Dickey
	Title:

	 	Executive Vice President
	 	Title:
	 	President and Chief Operating Officer
	 
	 	 	 	 	 	 
	Issuer:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Penn Octane de Mexico, S. de R.L. de C.V.	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Name:

	 	Ian Bothwell	 	 	 	 
	Title:

	 	Legal Representative	 	 	 	 

 

12

 

Exhibit “A”

Equity Interest Pledge Agreement

Form of Legal Representative Certificate

September 12, 2007

TransMontaigne Partners L.P.

TransMontaigne Product Services, Inc. (Pledgees)

1670 Broadway, Suite 3100

Denver, Colorado, 80202

Attention: President

Reference is made to certain Equity Interest Pledge Agreement (the “Equity Interest Pledge
Agreement”), entered into on September 12, 2007, by and among Rio Vista Operating Partnership,
L.P. and Penn Octane International, LLC, as Pledgors, and TransMontaigne Partners L.P. and
TransMontaigne Product Services, Inc., as Pledgees. Capitalized terms used and not otherwise
defined herein are used as defined in the Equity Interest Pledge Agreement.

I, Ian Bothwell, in my capacity as Legal Representative of Penn Octane de Mexico, S. de R.L. de
C.V. (“Issuer”) do hereby certify that on the date hereof, the first priority security
interest created on the Pledged Equity Interests in favor of Pledgees has been duly recorded in the
associates’ registry book (libro de registro de socios) of Issuer. A certified copy of the relevant
entries in the associates’ registry book (libro de registro de socios) of Issuer is attached hereto
as Annex “A”.

IN WITNESS WHEREOF, I have set my hand this September 12th, 2007.

Penn Octane de Mexico, S. de R.L. de C.V.

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Name:

	 	Ian Bothwell	 	 
	Title:

	 	Legal Representative	 	 

 

13

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