January 25, 1999
Xx. Xxxxx Xxxxxxx
Vice President - Gas Liquids
Penn Octane Corporation
0000 Xxxxxxxx Xx.
Xxxxxxxx, Xx. 00000
Reference: Agreed Amendment
Rental Adjustment
(Mexican Side)
Dear Xx. Xxxxxxx:
Penn Octane Corporation (POC) and CPSC International (CPSC) have agreed and
plan to enter into a long term Lease/Installment - Purchase Agreement. The
project cost of the pipelines, right of way, transfer terminal etc. has been
estimated to be Four Million Dollars and zero cents ($4,000,000.00). This
letter has been prepared to provide the formula to be used in determining the
monthly rental rate adjustment if the Total Installed Cost (TIC) is not said
$4,000,000.00.
ADJUSTMENT FORMULA
-------------------
Actual T.I.C.
----------------- X $68,000 = Adjusted Monthly Rental Rate
-------------------------------
$4,000,000.00
If the Total Installed Cost is within 1% of the estimated cost of
$4,000,000.00 - no adjustment will be made.
If you are in agreement with the aforementioned statements of agreement,
please indicate by executing in the space provided below.
AGREED TO AND ACCEPTED THIS ______ DAY OF ______________ 1999.
PENN OCTANE CORPORATION CPSC INTERNATIONAL
By: _________________________________ By: _________________________________
Name: _______________________________ Name: ________________________________
Title: _______________________________ Title: ________________________________
Date: ________________________________ Date: ________________________________
Acd/rental adjust
