Letter Agreement Regarding Payment Terms Under 2007 Consulting Agreement – Penn Octane Corporation, Rio Vista Energy Partners L.P., and JBR Capital Resources, Inc.
Penn Octane Corporation and Rio Vista Energy Partners L.P. have agreed with JBR Capital Resources, Inc. to modify the payment terms under their 2007 Consulting Agreement. Instead of paying all consulting fees in cash, 50% of any fees owed to JBR Capital Resources will be applied to reduce any outstanding debts that JBR Capital Resources or its affiliates owe to Penn Octane, including a specific promissory note. This agreement is effective as of November 15, 2006, and requires JBR Capital Resources' acceptance by signature.
Exhibit 10.38
Penn Octane Corporation
Rio Vista Energy Partners L.P.
820 Gessner Road, Suite 1285
Houston, Texas 77024
March 5, 2007
JBR Capital Resources, Inc.
Attn: Jerome B. Richter, President
335 Tomahawk Drive
Palm Desert, California 92211
Re: Payments Under 2007 Consulting Agreement
Dear Mr. Richter:
Penn Octane Corporation, Rio Vista Energy Partners L.P. and JBR Capital Resources, Inc. are entering into a 2007 Consulting Agreement dated March 5, 2007, with an effective date of November 15, 2006 (the Consulting Agreement). Capitalized terms used, and not otherwise defined, herein shall have the meaning set forth in the Consulting Agreement. Notwithstanding any contrary provision of the Consulting Agreement, and as a condition of the Companys execution and delivery of the Consulting Agreement, the Company shall, in lieu of cash payment pursuant to Section 2.1 of the Consulting Agreement, apply fifty percent (50%) of the amount of any Fees due and payable to Consultant by the Company against any amounts owed (whether or not then due or payable) by Consultant or its affiliates to the Company, including without limitation, any amounts owed by Jerome B. Richter to Penn Octane pursuant to his promissory note dated April 11, 2000, as such note may be amended from time to time.
If you are in agreement with the foregoing, kindly sign where indicated below and return this letter to my attention.
Sincerely,
PENN OCTANE CORPORATION | RIO VISTA ENERGY PARTNERS L.P. | ||||||
By: | By: | ||||||
Ian T. Bothwell Acting Chief Executive Officer | Ian T. Bothwell Acting Chief Executive Officer Rio Vista GP LLC, General Partner | ||||||
Agreed: | |||||||
JBR CAPITAL RESOURCES, INC. | |||||||
By: | |||||||
Jerome B. Richter, President |