Document:

Exhibit 10.1

 

 

11999 Katy Freeway, Suite 560

Houston, Texas 77079    (281) 556-6200

 

 

STOCK PURCHASE AGREEMENT

 

by and among

 

BPZ Energy, Inc. and

the Investors Named Herein

 

 

 

Dated July 19, 2005

 

 

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STOCK PURCHASE
AGREEMENT

 

This STOCK PURCHASE AGREEMENT (this “Agreement”),
dated July 19, 2005, is made by and among BPZ Energy, Inc., a
Colorado corporation (the “Company”), and
the Investors named on Schedule 1.1 hereto (the “Investors”).

 

RECITALS

 

WHEREAS, the Company has delivered to each
Investor a Private Placement Memorandum (the “Private Placement Memorandum”)
dated June 2005, and a Purchaser Suitability Questionnaire (the “Questionnaire”)
relating to the transactions contemplated in this Agreement, and the Investor
has executed a Confidentiality Agreement relating to the Company’s business.

 

WHEREAS, the
Company proposes to issue and sell to Investors, and Investors desire to
purchase from the Company, shares of the Company’s common stock, no par value
(the “Common Stock”), on the terms set forth herein.

 

AGREEMENT

 

NOW,
THEREFORE, in
consideration of the mutual covenants and agreements set forth herein and for
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       Purchase

 

1.1                                 Purchase and Sale of Stock.  Subject to the terms and conditions of this
Agreement, the Company will issue and sell to each Investor, and each Investor
severally agrees to purchase from the Company, the number of shares of the
Company’s authorized but unissued Common Stock (the “Shares”) set forth with
respect to such Investor on Schedule 1.1 hereto, at a price per share
equal to $3.00.  The closing (the “Closing”)
of the sale of the Shares shall be effected at the offices of the Company on July 19,
2005, or at such other time and place as may be agreed to by the Investors and
the Company (the “Closing Date”).  At the
Closing, subject to the terms and conditions hereof, the Company shall cause the
issuance of the Shares purchased by such Investor from the Company, against
payment of the full amount of such Investor’s aggregate purchase price by wire
transfer of immediately available funds to the Company’s bank account.

 

1.2                                 Legends.  All certificates representing the Shares
shall bear the following legend (in addition to any legend required by the blue
sky or securities laws of any state or jurisdiction to the extent such laws are
applicable to the shares represented by the certificate so legended):

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES
LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED

 

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OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH
LAWS, PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL
(WHICH OPINION AND COUNSEL ARE REASONABLY SATISFACTORY TO THE COMPANY)
CONFIRMING THE AVAILABILITY OF SUCH EXEMPTION.”

 

The legend set forth above shall be removed and the Company shall issue
a certificate without such legend to the holder of the Shares upon which it is
stamped, if, unless otherwise required by state securities laws, (i) such
Shares are registered for resale under the Securities Act of 1933, as amended
(the “Securities Act”), (ii) in connection with a sale, assignment or
other transfer, such holder provides the Company with an opinion of counsel, in
a generally acceptable form, to the effect that such sale, assignment or
transfer of the Shares may be made without registration under the applicable
requirements of the Securities Act, or (iii) such holder provides the
Company with reasonable assurance that the Shares can be sold, assigned or
transferred pursuant to Rule 144 or Rule 144A promulgated under the
Securities Act.

 

1.3                                 Stop Transfer Orders.  All certificates representing the Shares will
be subject to a stop transfer order with the Depository Trust Company or with
the Company’s transfer agent that restricts the transfer of such shares except
in compliance with this Agreement.

 

2.                                       Representations and Warranties of the Company.  The Company hereby makes the following
representations and warranties to the Investors:

 

2.1                                 Organization, etc.  The Company is a corporation, duly organized
and validly existing and in good standing under the laws of the State of
Colorado, and is qualified or licensed to do business and is in good standing
as a foreign corporation in each other jurisdictions in which the conduct of
its business or the ownership of property requires such qualification or
licensing, except where failure to be so qualified or licensed would not have a
material adverse effect on the financial condition or operations of the Company
and its Subsidiaries (as defined below), taken as a whole (for the Company and
its Subsidiaries, a “Material Adverse Effect”). 
Each company (each, a “Subsidiary”) listed on Schedule 2.1 hereof is duly organized and validly existing
and in good standing under the laws of the jurisdiction of its organization,
and is qualified or licensed to do business and is in good standing as a
foreign corporation in each other jurisdiction in which the conduct of its
business or the ownership of property requires such qualification or licensing,
except where failure to be so qualified or licensed would not have a Material
Adverse Effect.  Except for the
Subsidiaries, the Company does not own, of record or beneficially, the
securities of any other entity.

 

2.2                                 Authority.  The Company has the corporate power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder, and such action has been duly authorized by all necessary action of
the Company’s Board of Directors.  The
issuance and sale of the Shares has
been duly authorized and if, as and when issued in accordance with the terms of
this Agreement and delivered to the Investors, the Shares will be duly and
validly

 

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issued and outstanding, fully paid and non-assessable and will be free
of any Encumbrance (as defined below) created by the Company, in the Company’s
control, or of which the Company has actual knowledge, other than those imposed
pursuant to this Agreement and securities laws of general application.  As used in this Agreement, “Encumbrance”
shall mean any claim, lien, pledge, option, charge, easement, security
interest, deed of trust, mortgage, right of way, encroachment, private building
or use restriction, conditional sales agreement, encumbrance or other right of
third parties, whether voluntarily incurred or arising by operation of law, and
includes, without limitation, any agreement to give any of the foregoing in the
future, and any contingent sale or other title. 
The issuance and sale of the Shares will not be subject to preemptive or
other similar rights of any holder of the Company’s securities.

 

2.3                                 Enforceability.  This Agreement has been duly executed and
delivered by the Company and constitutes a legal, valid and binding agreement
and obligation of the Company enforceable against it in accordance with its
terms subject to bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereafter in effect generally relating to or affecting creditors’
rights.

 

2.4                                 No Violation.  Except as set forth on Schedule 2.4, the execution and
the delivery by the Company of this Agreement and the performance by the
Company of its obligations hereunder, including the issuance and sale of the
Shares, does not and will not (i) conflict with or result in a breach of
the terms, conditions or provisions of, (ii) constitute a default under, (iii) result
in a violation of, or (iv) require any authorization, consent or approval
not heretofore obtained pursuant to, any binding written or oral agreement or
instrument including, without limitation, any charter, bylaw, trust instrument,
indenture or evidence of indebtedness, lease, contract or other obligation or
commitment (each, a “Contractual Obligation”) binding upon the Company or any
Subsidiary or any of their respective properties or assets, or any law, rule,
regulation, restriction, order, writ, judgment, award, determination,
injunction or decree of any court or government, or any decision or ruling of
any arbitrator (each, a “Requirement of Law”) binding upon or applicable to the
Company or any Subsidiary or any of their respective properties or assets and
which would have a Material Adverse Effect.

 

2.5                                 Litigation.  Except as set forth in Schedule 2.5 or the SEC Reports
(as defined in Section 2.7 below), there are no pending or overtly
threatened actions, claims, orders, decrees, investigations, suits or
proceedings by or before any governmental authority, arbitrator, court or
administrative agency which would have a Material Adverse Effect.

 

2.6                                 Capitalization.  The authorized capital stock of the Company
consists of 250,000,000 shares of Common Stock, no par value, 25,962,774 shares
of which have been validly issued and are outstanding as of the date hereof
(and such issued shares are fully paid and non-assessable), and 25,000,000
shares of preferred stock, no par value, of which no shares are outstanding on
the date hereof.  Except as set forth on Schedule 2.6,
the Company owns 100% of the capital stock of each of the Subsidiaries.  Except as set forth on Schedule 2.6 hereto, there do not
exist any other authorized or outstanding securities, options, warrants, calls,
commitments, rights to subscribe or other instruments, agreements or rights of
any character, or any pre-emptive rights, convertible into or exchangeable for,
or requiring or

 

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relating to the issuance, transfer or sale of, any shares of capital
stock or other securities of the Company or any Subsidiary.

 

2.7                                 Annual Report; Financial Statements.  The Company’s Annual Report on Form 10-K
for the year ended December 31, 2004, and Quarterly Report on Form 10-Q
for the quarter ended March 31, 2005 (the “SEC Reports”) have been filed
with the SEC and the SEC Reports complied in all material respects with the rules of
the SEC applicable to such SEC Reports on the date filed with the SEC, and the
SEC Reports did not contain, on the date of filing with the SEC, and do not
contain as of the date hereof, the Private Placement Memorandum does not
contain, as of the date hereof, and the SEC Reports and the Private Placement
Memorandum will not contain as of the Closing Date, any untrue statement of a
material fact, or omit to state any material fact necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading.  As of the date hereof, the
SEC Reports have not been amended.  All
of the consolidated financial statements included in the SEC Reports (the “Company
Financial Statements”):  (i) have
been prepared from and on the basis of, and are in accordance with, the books
and records of the Company and with generally accepted accounting principles
applied on a basis consistent with prior accounting periods; (ii) fairly
and accurately present in all material respects the consolidated financial
condition of the Company as of the date of each such Company Financial
Statement and the results of its operations for the periods therein specified;
and (iii) in the case of the annual financial statements, are accompanied
by the audit opinion of the Company’s independent public accountants.  Except as set forth in Schedule 2.7 or in the Company
Financial Statements, as of the date hereof and as of the Closing Date, the
Company has no liabilities other than (i) liabilities which are reflected
or reserved against in the Company Financial Statements and which remain
outstanding and undischarged as of the date hereof, (ii) liabilities
arising in the ordinary course of business of the Company since December 31,
2004, (iii) liabilities incurred as a result of the transactions described
on Schedule 2.7, or (iv) liabilities which were not required by
generally accepted accounting principles to be reflected or reserved on the
Company Financial Statements.  Since December 31,
2004, except as set forth on Schedule 2.7 hereto, there has not been any
event or change which has had or could reasonably be expected to have a Material
Adverse Effect and the Company has no knowledge of any event or circumstance
that would reasonably be expected to result in such a Material Adverse Effect.

 

2.8                                 Absence of Certain Changes.  Since December 31, 2004 (the “Balance
Sheet Date”), except as set forth on Schedule 2.7 hereto, in the Private
Placement Memorandum and in the SEC Reports, neither the Company nor any of its
Subsidiaries has:

 

(a) redeemed, purchased or otherwise
acquired directly or indirectly any shares of any class or series of its
capital stock, or any instrument or security which consists of or includes a
right to acquire such shares (other than repurchases of restricted stock at
cost required pursuant to agreements outstanding on the date of this Agreement
or entered into after the date of this Agreement in compliance with the
provisions hereof);

 

(b) paid, discharged or satisfied any
claim, liability or obligation (whether absolute, accrued, contingent or
otherwise) other than the payment, discharge or satisfaction in the ordinary
course of business and consistent with past practice of liabilities and
obligations

 

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reflected or reserved against in the Company Financial Statements Sheet
or incurred in the ordinary course of business and consistent with past
practice since the Balance Sheet Date;

 

(c) permitted or allowed any of its
material properties or assets (real, personal or mixed, tangible or intangible)
to be subjected to any mortgage, pledge, claim, lien, security interest,
encumbrance, restriction or charge of any kind outside of the ordinary course
of business;

 

(d) cancelled any debt or waived any
claim or right of substantial value;

 

(e) sold, transferred, licensed, leased,
pledged, mortgaged or otherwise disposed of any of its material properties or
assets (real, personal or mixed, tangible or intangible) or any material amount
of property or assets, except in the ordinary course of business;

 

(f) disposed of or permitted to lapse
any right to the use of any Proprietary Rights (as defined in Section 2.14
hereof), or disposed of or disclosed to any person or entity, other than
representatives of the Investors and persons subject to a nondisclosure
agreement, any trade secret, formula, process, know-how or other Proprietary
Right not yet a matter of public knowledge;

 

(g) granted any material increase or
accrual in or accelerated, any benefit or compensation payable or to become
payable to any officer, director, employee or consultant, including any such
increase, accrual or acceleration pursuant to any benefit plan except in
connection with a promotion or job change or any general increase in the
compensation payable or to become payable to officers, employees or directors
in the ordinary course of business, or entered into or amended in any material
way any employment, material consulting, severance, termination or material
benefit plan agreement or arrangement other than in the ordinary course of
business;

 

(h) declared, paid or set aside for
payment any dividend or other distribution in respect of its capital stock or
redeemed, purchased or otherwise acquired, directly or indirectly, any shares
of capital stock or other securities of the Company or any of its Subsidiaries;

 

(i) made any change in any method of tax
or financial statement accounting or accounting practice that would or would
reasonably be expected to result in any material change in the Company
Financial Statements;

 

(j) paid, loaned or advanced any amount to,
or sold, transferred or leased any material properties or assets (real,
personal or mixed, tangible or intangible) to, or entered into any agreement or
arrangement with, any of its officers or directors or employees or any
Affiliate (as defined in Section 7.1) of any of its officers or directors
or employees, except for directors’ fees and compensation to officers in the
ordinary course of business;

 

(k) except for the Third Amended and Restated
Articles of Incorporation of the Company, amended its certificate of
incorporation or by-laws or similar organizational documents;

 

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(l) issued, sold, transferred, pledged,
disposed of or encumbered any shares of any class or series of its capital
stock, or securities convertible into or exchangeable for, or options,
warrants, calls, commitments or rights of any kind to acquire, any shares of
any class or series of its capital stock, other than shares of Common Stock
reserved for issuance on the date of this Agreement pursuant to the Company’s
2005 Long-Term Incentive Compensation Plan, the exercise of any warrants or
options to purchase Common Stock described on Schedule 2.6 or existing
agreements that require the Company to issue shares of Common Stock;

 

(m) terminated or materially modified or
amended any of its material contracts or waived, released or assigned any
material rights under any material contract or claims, except in the ordinary
course of business and consistent with past practice;

 

(n) revalued in any material respect any of
its assets, including writing down the value of inventory or writing-off notes
or accounts receivable, other than in the ordinary course of business
consistent with past practice or as required by GAAP;

 

(o) adopted a plan of complete or partial
liquidation, dissolution, merger, consolidation, restructuring,
recapitalization or other reorganization of the Company or any of its
Subsidiaries; or

 

(p) agreed, whether in writing or otherwise,
to take any action described in this section.

 

2.9                                 Income Tax Returns.  The Company and the Subsidiaries have filed
all federal and state income tax returns which are required to be filed, and
have paid, or made provision for the payment of, all taxes which have become
due pursuant to said returns or pursuant to any assessment received by the Company
or any Subsidiary, except such taxes, if any, as are being contested in good
faith and as to which adequate reserves have been provided.  The Company has no knowledge of any pending
assessments or adjustments of the income tax payable of the Company or its
Subsidiaries with respect to any year.

 

2.10                           Permits; Compliance With Law.  The Company and each Subsidiary possesses,
and will hereafter possess, all permits, consents, approvals, franchises and
licenses required and rights to all trademarks, trade names, patents, and
fictitious names, if any, necessary to enable them to conduct the business in
which it is now engaged in compliance with applicable law, except where failure
to do so would not have a Material Adverse Effect.  The Company and each Subsidiary are in
compliance with all federal, state and local laws, regulations and ordinances (“Requirements
of Law”) in the conduct of its business and corporate affairs, except where
failure to comply, singly or in the aggregate, would not have a Material Adverse
Effect.

 

2.11                           ERISA.  Except as set forth on Schedule 2.11, the Company and
each Subsidiary is in compliance in all material respects with any applicable
provisions of ERISA; the Company and each Subsidiary has not violated any
provision of any Plan maintained or contributed to by it; no Reportable Event
as defined in ERISA has occurred and is continuing

 

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with respect to any employee benefit plan (“Plan”) initiated by the
Company or any Subsidiary; the Company and each Subsidiary has met its minimum
funding requirements under ERISA with respect to any Plan; and any Plan will be
able to fulfill its benefit obligations as they come due in accordance with the
Plan documents and under generally accepted accounting principles.  Schedule 2.11
describes each Plan maintained by the Company and each of its Subsidiaries.

 

2.12                           Contracts.  Schedule 2.12
sets forth a description of each Contractual Obligation not filed as an exhibit
to the SEC Reports that provides for payments to or by the Company or any
Subsidiary in excess of $25,000, or is otherwise material to the operations of
the Company or any Subsidiary.  Except as
set forth on Schedule 2.4, neither the Company nor any Subsidiary is in
default on any Contractual Obligation, except for such defaults which would not
have a Material Adverse Effect.

 

2.13                           Environmental Matters.  Except as set forth on Schedule 2.13, since September 10,
2004, the Company and its subsidiaries (including the Subsidiaries) have at all
times been in compliance in all material respects with all environmental laws
and regulations applicable to the Company’s current business where the failure
to so comply would not cause a Material Adverse Effect.  Except as described in the SEC Reports or as
set forth on Schedule 2.13,
to the Company’s knowledge none of the operations of the Company or any
Subsidiary is the subject of any federal or state investigation evaluating
whether any remedial action involving a material expenditure is needed to respond
to a release of any toxic or hazardous waste or substance into the
environment.  Except as set forth on Schedule 2.13,
neither the Company nor any Subsidiary has received notice of any actual or
threatened claim, investigation, proceeding, order or decree in connection with
any release of any toxic or hazardous waste or substance into the environment.

 

2.14                           Trademarks, etc.  The Company and the Subsidiaries own, have
sufficient title to, or have the right to use (or can obtain the right to use
on reasonable commercial terms), all patents, trademarks, service marks, trade
names, copyrights, licenses, trade secrets or other proprietary rights
(collectively, the “Proprietary Rights”) necessary to their business as now
conducted without infringing upon the right of any person.  Except for employee confidentiality
agreements with employees and consultants, there are no outstanding material
options, licenses or agreements relating to intellectual property rights of the
Company or any Subsidiary necessary to their business as now conducted, nor is
the Company or any Subsidiary bound by or a party to any material options,
licenses or agreements with respect to the Proprietary Rights of any other
person or entity.  To the Company’s
knowledge, neither the Company nor any Subsidiary has violated or is in current
violation of, and neither the Company nor any Subsidiary has received any
communications alleging that the Company or any Subsidiary has violated or, by
conducting its business as proposed, would violate, any of the Proprietary
Rights of any other person or entity. 
The Company and the Subsidiaries are not aware of any material violation
by a third party of any of their Proprietary Rights necessary to their business
as now conducted.

 

2.15                           Employees.  Except as set forth on Schedule 2.15, all employees of
the Company and each Subsidiary are employed “at will” and may be terminated
without payment of severance or incurrence of any other liability of the
Company or the Subsidiaries; 

 

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no employee of the Company is in violation of any material term of any
employment contract, confidentiality agreement or any other material
Contractual Obligation relating to the right of any such employee to be
employed by the Company or any Subsidiary; and neither the Company nor any
Subsidiary has any employee severance agreement covering any of its
employees.  There are no labor disputes
or union organization activities pending or threatened between the Company or
the Subsidiaries and their employees.

 

2.16                           Title to Properties.  The assets owned or leased by the Company and
its Subsidiaries are all of the assets necessary to conduct the business of the
Company and its Subsidiaries as currently being conducted.  The Company and its Subsidiaries have good
and marketable title to substantially all of the assets they own, real and
personal, movable and immovable, tangible and intangible, free and clear of any
charge, claim, lien, pledge, security interest or other encumbrance, except for:
(a) liens for taxes not yet due and payable, (b) encumbrances
described on Schedule 2.16
hereto, or (c) minor imperfections of title and encumbrances, if any,
which (i) are not substantial in amount, (ii) do not detract from the
value of the property subject thereto, impair the operations of the business of
the Company, or the use or license of certain of the assets of the Company, and
(iii) have arisen in the ordinary course of business consistent with past
practice.

 

2.17                           Related Party Transactions.  Except for those contracts described in the
SEC Reports or on Schedule 2.17
hereto, no existing Contractual Obligation of the Company or its Subsidiaries
is with or for the direct benefit of (i) any party owning, or formerly
owning, beneficially or of record, directly or indirectly, in excess of five
percent (5%) of the outstanding capital stock of the Company, (ii) any
director, officer or similar representative of the Company, (iii) any
natural person related by blood, adoption or marriage to any party described in
(i) or (ii), or (iv) any entity in which any of the foregoing parties
has, directly or indirectly, at least a five percent (5%) beneficial interest
(a “Related Party”).  Without limiting
the generality of the foregoing, no Related Party, directly or indirectly, owns
or controls any material assets or material properties which are used in the
Company’s business and to the actual knowledge of the Company, no Related
Party, directly or indirectly, engages in or has any significant interest in or
connection with any business which is, or has been within the last two years, a
competitor, customer or supplier of the Company or has done business with the
Company or which currently sells or provides products or services which are
similar or related to the products or services sold or provided in connection
with the Business.

 

2.18                           Brokers.  The Company will pay a placement fee of up to
7% of the gross proceeds from the sale of the Shares to Investors and issue
warrants to purchase 100,000 shares to Morgan Keegan & Company, Inc.
(the “Placement Agent”).  Except for such
payments the Company has not agreed to pay or incurred any obligation in
respect of any finder’s fee, brokerage fee or other commission in connection
with the sale of Shares contemplated by this Agreement.

 

2.19                           Securities Law Matters.  Since September 10, 2004, and to the
best of its knowledge from January 1, 2004 until September 9, 2004,
the Company has filed all reports, registration statements, proxy statements
and other materials, together with any amendments required to be made with
respect thereto, that were required to be filed with (i) the SEC under the
Securities Act, or the Securities Exchange Act of 1934, as amended (the “Exchange
Act”),

 

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and (ii) any applicable state securities authorities.  No such filing, as of the date it was filed,
and as of the date hereof and as of the Closing Date, contained or will contain
any untrue statement of a material fact or omitted to state a material fact
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.  Subject to the accuracy of the
representations and warranties of the Investors set forth in Section 3,
the offer, sale and issuance of the Shares to the Investors will be exempt from
registration under the Securities Act.

 

2.20                           No Anti-Dilution Rights.  Except as set forth on Schedule 2.20,
the transactions contemplated hereby will not trigger any anti-dilution
provisions contained in any existing agreements.

 

2.21                           Full Disclosure.  No representation, warranty, schedule or certificate of the
Company made or delivered pursuant to this Agreement or in the Private
Placement Memorandum contains or will contain any untrue statement of fact, or
omits or will omit to state a material fact the absence of which makes such
representation, warranty or other statement misleading.

 

3.                                       Representations and Warranties of Investors.  Each Investor, severally and not jointly,
hereby makes the following representations and warranties as to such Investor:

 

3.1                                 Organization.  Investor, if not a natural person, is duly
organized and validly existing and in good standing under the laws of the state
of its organization.

 

3.2                                 Authority.  
Investor has the corporate or other authority to execute and deliver
this Agreement and the Questionnaire to which such Investor is a party and to perform its
obligations hereunder.

 

3.3                                 No Violation.  The execution and the delivery by Investor of
this Agreement and the Questionnaire, and its purchase of the Shares and the consummation
of the transactions contemplated hereby or to be effected concurrently herewith
do not and will not (a) conflict with or result in a breach of the terms,
conditions or provisions of, (b) constitute a default under, (c) result
in a violation of, or (d) require any authorization, consent or approval
not heretofore obtained pursuant to, any Contractual Obligation or Requirement
of Law to which Investor is a party or is otherwise subject.

 

3.4                                 Enforceability.  This Agreement and the Questionnaire
constitute the legal, valid and binding obligation of Investor and is
enforceable against Investor in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect generally relating to or affecting creditors’ rights.

 

3.5                                 Investment Intent.  Investor is acquiring the Shares for its own
account for investment and not with a view to, or for resale in connection
with, any “distribution” thereof for purposes of the Securities Act.  Investor is an “accredited investor” as such
term is defined in Regulation D under the Securities Act.  Investor acknowledges that the Shares shall
be “restricted securities” within the meaning of Rule 144 (“Rule 144”)
under the Securities Act, will contain a transfer restriction legend and may
only be resold pursuant to an effective

 

9

 

registration statement filed with the SEC under the Securities Act, or
pursuant to Rule 144 or another valid exemption from the registration
requirements of the Act as established by an opinion of counsel reasonably
acceptable to the Company.

 

3.6                                 Investigation.  Investor acknowledges receipt of the Private
Placement Memorandum, and has been given full access by the Company to all
information concerning the business and financial condition, properties,
operations and prospects of the Company that Investor has deemed relevant for
purposes of making the investment contemplated by this Agreement.  By reason of Investor’s knowledge and
experience in financial and business matters in general, the business of the
Company and investments of the type contemplated by this Agreement in
particular, Investor is capable of evaluating the merits and risks of making
the investment in the Shares and is able to bear the economic risk of the
investment (including a complete loss of its investment in the Shares).  Subject to the truth and accuracy of the
representations and warranties made by the Company hereunder, Investor has
conducted such investigation as it deems relevant in connection with its
consummation of the transactions contemplated by this Agreement.

 

3.7                                 Brokers.  Investor has not agreed to pay or incurred
any obligation in respect of any finder’s fee, brokerage fee or other
commission in connection with the sale of Shares contemplated by this
Agreement.

 

4.                                       Conditions to the Obligations of the Company.  The obligations of the Company to consummate
the transactions contemplated by this Agreement on the Closing Date shall be
subject to the satisfaction of each of the conditions set forth in this Section 4,
unless waived by the Company, on or prior to the Closing Date.

 

4.1                                 Representations and Warranties.  If this Agreement is not signed on the
Closing Date, the representations and warranties of the Investors set forth in Section 3
shall be true and correct in all material respects as of the Closing Date as
though made on and as of such date.

 

4.2                                 No Proceedings.  No order, injunction, decree or other action
or legal, administrative, arbitration or other proceeding by any person other
than the Company or investigation by any governmental agency or authority shall
be pending or threatened, challenging or imposing a material limitation on the execution,
delivery or performance of this Agreement, or the consummation of any of the
transactions contemplated hereby.

 

4.3                                 Compliance with Laws.  The purchase of the Shares by each Investor
hereunder shall be legally permitted by all laws and regulations to which each
Investor or the Company is subject.

 

4.4                                 Approval of Documents.  All proceedings taken in connection with the
transactions contemplated hereby and all documents incident to such
transactions shall be reasonably satisfactory in form and substance to the
Company and its counsel.

 

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4.5                                 Questionnaire.  Each investor shall have completed and
executed and delivered to the Company a Questionnaire in a manner reasonably
acceptable to the Company.

 

5.                                       Conditions to the Obligations of Investors.  The obligations of each Investor to
consummate the transactions under this Agreement on the Closing Date shall be
subject to the satisfaction of each of the conditions set forth in this Section 5,
unless waived by each Investor, on or prior to the Closing Date.

 

5.1                                 Representations and Warranties.   If this Agreement is not signed on the
Closing Date, the representations and warranties of the Company set forth in Section 2
shall be true and correct in all material respects as of the Closing Date as
though made on and as of such date; the Company shall have performed all
obligations and complied with all covenants required to be performed or
complied with by the Company under this Agreement on or prior to the Closing
Date; and each Investor shall have received on the Closing Date from the
Company a certificate or certificates, dated the Closing Date, to such effect,
which certificate or certificates shall be signed by an authorized officer of
the Company.

 

5.2                                 No Proceedings.  No order, injunction, decree or other action
or legal, administrative, arbitration or other proceeding by any person or
investigation by any governmental agency or authority shall be pending or, to
the knowledge of the Company, threatened, challenging or imposing a material
limitation on the execution, delivery or performance of this Agreement, the
consummation of any of the transactions contemplated thereby or the operation
by the Company of its businesses as now conducted.

 

5.3                                 Approval of Documents.  All proceedings taken in connection with the
transactions contemplated hereby and all documents incident to such
transactions shall be reasonably satisfactory in form and substance to each
Investor and its counsel.

 

5.4                                 Compliance with Laws.  The purchase of the Shares by each Investor
hereunder shall be legally permitted by all laws and regulations to which each
Investor or the Company is subject.

 

5.5                                 No Material Adverse Change.  Except as described in the SEC Reports or in Schedule 2.7,
there shall have been no event that has had or could reasonably be expected to
have a Materially Adverse Effect since December 31, 2004.

 

5.6                                 Opinion of Counsel.  Investor shall have received an opinion of
counsel to the Company in substantially the form attached as Schedule 5.6
hereto.

 

5.7                                 Minimum Investment.  The Investors shall have agreed to purchase
on the Closing Date shares of Common Stock at a minimum purchase price of
$30,000,000 in the aggregate on the terms set forth herein.

 

11

 

6.                                       Certain Covenants of the Company.

 

6.1                                 Listing of Common Stock.  The
Company shall use its best efforts to cause the Common Stock to be listed on
the American Stock Exchange (or, if such listing cannot be obtained, upon
NASDAQ or another exchange) as soon as practicable following the date
hereof.  The Company shall cause
the Shares to be listed or included on each securities exchange or automated
quotation system on which similar securities issued by the Company are then
listed or included.

 

6.2                                 Shelf Registration.  The Company shall prepare and file or cause
to be prepared and filed with the SEC, as soon as practicable but in any event
no later than thirty (30) days after the date hereof (the “Filing Deadline”), a
Registration Statement on Form SB-2 (or such other form as the Company is
then eligible to use) for an offering to be made on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act registering the resale
from time to time by the Investors of the Shares pursuant to plans of
distribution reasonably acceptable to the Investors (the “Registration
Statement”).  Each Investor agrees to
promptly provide to the Company, in writing, such information as the Company
may reasonably request for inclusion in the Registration Statement.  The Company shall use its best efforts to
cause the Registration Statement to be declared effective under the Securities
Act no later than five (5) Business Days after receipt of notice of “no
review” by the SEC or ninety (90) days from the date hereof in the event of SEC
review (the “Effectiveness Deadline”), and to keep such Registration Statement
continuously effective under the Securities Act until the earlier of (i) the
date on which all Shares covered by the Registration Statement may be sold
without volume restrictions pursuant to Rule 144(k) as determined by the
counsel to the Company pursuant to a written opinion letter to such effect,
addressed to the Company’s transfer agent and to the Investors, or (ii) such
date as all Shares registered on such Registration Statement have been resold
(the earlier to occur of (i) or (ii) is the “Registration Termination
Date”).

 

(a) If a Registration Statement ceases
to be effective for any reason at any time prior to the applicable Registration
Termination Date, the Company shall use its best efforts to reinstate the
effectiveness thereof.

 

(b) The Company shall supplement and
amend the Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Registration Statement, if required by the Securities Act or, to the extent to
which the Company does not reasonably object, as requested by the Investors.

 

(c) All Registration Expenses incurred
in connection with the registrations pursuant to this Section 6.2 shall be
borne by the Company. “Registration Expenses” shall mean all expenses incurred
by the Company in complying with this Section 6.2 hereof including,
without limitation, all registration and filing fees, printing expenses, fees
and disbursements of counsel for the Company, blue sky fees and expenses, and
the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the
Company which shall be paid in any event by the Company and Selling Expenses,
as defined hereinafter).   All Selling
Expenses incurred in connection with any registrations hereunder, shall be
borne by the Investors. “Selling Expenses” shall mean all

 

12

 

brokerage and selling commissions applicable to a sale of the Shares
pursuant to the Registration Statement.

 

(d) The Company may suspend sales of
Shares pursuant to the Registration Statement for a period of not more than thirty
(30) days during any six (6) month period in the event it determines in
good faith that such Registration Statement contains or may contain an untrue
statement of material fact or omits or may omit to state a material fact
required to be stated therein or necessary to make the statement therein not
misleading; provided that the Company shall promptly amend such Registration
Statement in order to correct any untrue statement and/or ensure that such
Registration Statement is not misleading; provided further that subject to the
time limitations set forth above, the Company may delay such amendment if the
Company determines that such delay is in the best interest of the Company in
order to avoid premature public announcements of potential acquisitions or other
extraordinary transactions.  At the time
the Registration Statement is declared effective, each Investor shall be named
as a selling securityholder in the Registration Statement and the related
prospectus in such a manner as to permit such Investor to deliver such
prospectus to purchasers of Shares in accordance with applicable law.

 

(e) The Company shall promptly furnish
to the Placement Agent, without charge, (A) any correspondence from the
SEC or the staff of the SEC to the Company or its representatives relating to
any Registration Statement, and (B) after the same is prepared and filed
with the SEC, one copy of any Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits.

 

(f) The Company shall furnish to the
Investors such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents as they may reasonably request in order to facilitate the
disposition of the Shares owned by them.

 

(g) The Company shall use its best
efforts to register and qualify the securities covered by such registration
statement under such other securities or blue sky laws of such jurisdictions as
shall be reasonably requested by the Investors, provided that the Company shall
not be required in connection therewith or as a condition thereto to qualify to
do business or to file a general consent to service of process in any such states
or jurisdictions.

 

(h) The Company shall notify immediately
each Investor holding Shares covered by such registration statement at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing; provided, however,
that, subject to Section 6.2(e) the Company shall promptly amend such
Registration Statement in order to correct any untrue statement and/or ensure
that such Registration Statement is not misleading.

 

13

 

(i) If the Registration Statement covering the
Shares required to be filed by the Company pursuant to this Section 6.2 is
not (i) filed with the Commission by the date that is the Filing Deadline,
or (ii) declared effective by the Commission by the date that is thirty
(30) days after the Effectiveness Deadline (each of such dates being an “Initial Date”), then the Company shall make the payments to
the Investors as provided in the next sentence as liquidated damages and not as
a penalty.  The amount to be paid by the
Company to the Investors shall be determined as of each Computation Date (as
defined below) and, as applicable, the actual filing and effectiveness dates of
the Registration Statement, and such amount shall be equal to 1.0% (the “Liquidated Damage Rate”) of the purchase price for the
Shares for the period from the Initial Date to the first Computation Date, and
for each 30-day period of any subsequent Computation Dates thereafter,
calculated on a pro rata basis to the date on which the Registration Statement
is filed with (in the event of an Initial Date pursuant to clause (i) above)
or declared effective by (in the event of an Initial Date pursuant to clause (ii) above)
the Commission (the “Periodic Amount”).  The full Periodic Amount shall be paid by the
Company to the Investors, pro rata, by wire transfer of immediately available
funds within three days after each Computation Date and, as applicable, the
actual filing and effectiveness dates of the Registration Statement.

 

As used in this Section 6.2(i),
“Computation Date” means the date which
is 30 days after the Initial Date and, if the Registration Statement to be
filed by the Company pursuant to this Section 6.2 has not theretofore been
filed with the Commission or declared effective by the Commission, as the case
may be, each date which is 30 days after the previous Computation Date until
such Registration Statement is so filed or declared effective, as the case may
be.  Notwithstanding the above, if the
Registration Statement covering the Shares required to be filed by the Company
pursuant to this Section 6.2 is not filed with the Commission by the
Filing Deadline, the Company shall be in default of the terms of this Section 6.2,
and the Investors shall be entitled to damages as set forth above.

 

6.3                                 Termination of Registration Rights. All
rights and obligations provided for in Section 6.2 shall terminate on the
date on which the Company has no obligation to maintain the effectiveness of
the Registration Statement; provided that the rights of any Investor under Section 6.2
shall terminate the earlier of (i) the date on which all Shares covered by
the Registration Statement may be sold without volume restrictions pursuant to Rule 144(k)
as determined by the counsel to the Company pursuant to a written opinion
letter to such effect, addressed to the Company’s transfer agent and to the
Investors, or (ii) such date as all Shares registered on such Registration
Statement have been resold.

 

6.4                                 Reports Under Securities Exchange Act of 1934.
With a view to making available to the Investors the benefits of Rule 144
promulgated under the Securities Act (“SEC Rule 144”) and any other rule or
regulation of the SEC that may at any time permit Investors to sell securities
of the Company to the public without registration or pursuant to a registration
on Form SB-2, the Company agrees to:

 

(a) make and keep public information
available, as those terms are understood and defined in SEC Rule 144, at
all times so long as the Company remains subject to the periodic reporting
requirements under Sections 13 or 15(d) of the Exchange Act;

 

14

 

(b) use its best efforts to take such
action as is necessary to enable the Investors to utilize Form SB-2 for
the sale of their Shares;

 

(c) file with the SEC in a timely manner
all reports and other documents required of the Company under the Securities
Act and the Exchange Act; and

 

(d) furnish to any Investor, so long as
the Investor owns any Shares, forthwith upon request (i) a written
statement by the Company that it has complied with the reporting requirements
of the Securities Act and the Exchange Act, or that it qualifies as a
registrant whose securities may be resold pursuant to Form SB-2, (ii) a
copy of the most recent annual or quarterly report of the Company and such
other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested in availing any Investor of any rule or
regulation of the SEC which permits the selling of any such securities without
registration or pursuant to such form.

 

7.                                       Indemnification.

 

7.1                                 Indemnification by the Company.  The
Company will indemnify each Investor, its officers, directors, employees,
partners, affiliates, agents, representatives and legal counsel, and each
person controlling (or deemed controlling) such Investor within the meaning of
the Securities Act, (collectively, the “Investors’ Agents”) with respect to
which registration, qualification or compliance has been effected pursuant to Section 6.2,
against all claims, losses, damages and liabilities (or actions in respect
thereof), joint or several, arising out of or based on (A) (i) any
untrue statement (or alleged untrue statement) of a material fact contained in
any prospectus, offering circular or other similar document or any amendments
or supplements thereto (including any related registration statement and
amendments or supplements thereto, notification or the like) incident to any
such registration, qualification or compliance, or based on any omission (or
alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances under which they were made, and will reimburse the
Investors and the Investors’ Agents for any legal or any other expenses
reasonably incurred in connection with investigating or defending any such
claim, loss, damages, liability or action, as incurred, or (ii) any
violation by the Company of any federal, state or common law rule or
regulation applicable to the Company in connection with any such registration,
qualification or compliance, and will reimburse each Investor, and each Investors’
Affiliates, for any legal and any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action; or (B) any breach
of any covenant, agreement, representation or warranty of the Company in this
Agreement.  Provided, however,
that the Company shall not be liable under this Section 7: (a) in
any such case to the extent that any such claim, loss, damage, liability or
expense arises out of or is based on any untrue statement or omission based
upon written information furnished to the Company by an instrument duly
executed by such Investor and stated to be specifically for use therein or
furnished in writing by such Investor to the Company in response to a request
by the Company stating specifically that such information will be used by the
Company therein, (b) for any amount
paid in settlement of claims without the Company’s written consent (which
consent shall not be unreasonably withheld), or (c) to the extent that it
is finally judicially determined that such

 

15

 

Liabilities resulted primarily from the willful
misconduct or bad faith of such indemnified party; provided, further,
that if and to the extent that such indemnification is held, by final judicial
determination to be unenforceable, in whole or in part, for any reason, the
Company shall make the maximum contribution to the payment and satisfaction of
such indemnified Liability.  In
connection with the obligation of the Company to indemnify for expenses as set
forth above, if an indemnified party is reimbursed hereunder for any expenses,
such reimbursement of expenses shall be refunded to the extent it is finally
judicially determined that the Liabilities in question resulted primarily from
the willful misconduct or bad faith of such indemnified party.

 

7.2                                 Indemnification by Investors.  Each Investor will indemnify the
Company, each of its directors and officers, each legal counsel and independent
accountant of the Company, each person who controls the Company within the
meaning of the Securities Act, any underwriter, and each other Investor,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on (A) any untrue statement (or alleged untrue
statement) of a material fact contained in any such registration statement,
prospectus, offering circular or other similar document, or any omission (or
alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances under which they were made, and will reimburse the
Company, such directors, and officers, control persons, underwriter and each
other Investor for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, as incurred, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement) or omission (or
alleged omission) is made in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with written
information furnished in writing to the Company by an instrument duly executed
by such Investor and stated to be specifically for use therein or furnished by
such Investor to the Company in response to a request by the Company stating
specifically that such information will be used by the Company therein; or (B) any
breach of any representation or warranty of such Investor in this
Agreement.  Provided, however,
that the indemnity agreement provided in this Section 7 shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability or action if such settlement is
effected without the written consent of the Investor, which consent shall not
be unreasonably withheld. In no event shall an Investor’s indemnification
obligation exceed the net proceeds received from its sale of Shares in such
offering.

 

7.3                                 Notification; Procedure.

 

(a) Each party entitled to
indemnification under this Section 7 (the “Indemnified Party”) shall
give notice to the party required to provide indemnification (the “Indemnifying
Party”) promptly after such Indemnified Party has received written notice of
any claim as to which indemnity may be sought, and shall permit the
Indemnifying Party to assume the defense of any such claim or any litigation
resulting therefrom, provided that counsel for the Indemnifying Party, who
shall conduct the defense of such claim or litigation, shall be approved by the
Indemnified Party (whose approval shall not be unreasonably withheld). The
Indemnified Party may participate in such defense at such party’s expense;
provided, however, that the Indemnifying Party shall bear the expense of such
defense of the Indemnified Party if

 

16

 

representation of both parties by the same counsel would be
inappropriate due to actual or potential conflicts of interest. The failure of
any Indemnified Party to give notice within a reasonable period of time as
provided herein shall relieve the Indemnifying Party of its obligations under
this Section 7, but only to
the extent that such failure to give notice shall materially adversely
prejudice the Indemnifying Party in the defense of any such claim or any such
litigation. No Indemnifying Party, in the defense of any such claim or
litigation, shall, except with the consent of each Indemnified Party, consent
to entry of any judgment or enter into any settlement which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation.

 

(b) If the indemnification provided for
in this Section 7 is held
to be unavailable to an Indemnified Party with respect to any loss, liability,
claim, damage or expense referred to therein, then the Indemnifying Party, in
lieu of indemnifying such Indemnified Party hereunder, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such loss,
liability, claim, damage, or expense in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions
that resulted in such loss, liability, claim, damage or expense as well as any
other relevant equitable considerations; provided, that in no event shall any
contribution by an Investor under this Section 7
exceed the net proceeds from the offering received by such Investor. The
relative fault of the Indemnifying Party and of the Indemnified Party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the Indemnifying Party or by the Indemnified
Party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

 

(c) The obligations of the Company and
each Investor under this Section 7 shall survive the completion of any
offering of the Shares in a Registration Statement under this Section 7,
any investigation made by or on behalf of the Indemnified Party or any officer,
director or controlling Person of such Indemnified Party and will survive the
transfer of securities.

 

(d) Each Investor shall furnish to the
Company such information regarding such Investor and the distribution proposed
by such Investor as the Company may reasonably request in writing and as shall
be reasonably required in connection with any registration, qualification or
compliance referred to in this Section 7.

 

7.4                                 Registration Rights.  Each Investor agrees that if such Investor
wishes to sell securities pursuant to the Registration Statement, it will do so
in accordance with this Agreement.

 

8.                                       Survival of Representations and Warranties.  All representations, warranties and
agreements made by the Company and Investors in this Agreement or in any
certificate or other instrument delivered pursuant hereto shall survive the
Closing and any investigation and discovery by the Company or by Investors, as
the case may be, made at any time with respect thereto.

 

17

 

9.                                       Miscellaneous Provisions.

 

9.1                                 Deliveries.  The Company and Investors hereby covenant and
agree to use their respective best efforts to perform each of their obligations
hereunder, to deliver all certificates and to satisfy all other conditions set
forth in this Agreement and to close the transactions contemplated by this
Agreement on the Closing Date.

 

9.2                                 Successors and Assigns.  This Agreement is executed by, and shall be
binding upon and inure to the benefit of, the parties hereto and each of their
respective successors and assigns; provided, however, that
neither this Agreement nor any right pursuant hereto nor interest herein shall
be assignable except (a) by the Company with the consent of a Majority of
the Investors (as defined in Section 9.9), (b) by the Company in
connection with a merger, consolidation or sale of all or substantially all of
its assets, (c) by an Investor with the prior written consent of the
Company or (d) by an Investor in connection with a sale or other transfer
of the Shares.  None of the provisions of
this Agreement shall be for the benefit of or enforceable by any other person.

 

9.3                                 Notices.  All
notices, demands and other communications provided for or permitted hereunder
shall be made in writing and shall be by registered or certified first-class
mail, return receipt requested, telecopier, courier service or personal
delivery:

 

if to the
Investors at the address set forth on the signature page hereof:

 

	
  if to the Company at the
  following address:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  BPZ Energy, Inc.

  	
   

  	
  Adams and Reese LLP

  
	
  11999 Katy Freeway, Suite 560

  	
   

  	
  4400 One Houston Center

  
	
  Houston, Texas 77079

  	
   

  	
  1221 McKinney

  
	
  Attn: Chief Executive Officer
  and President

  	
   

  	
  Houston, Texas 77010

  
	
  Fax: (281) 556-6377

  	
   

  	
  Attn: Mark W. Coffin

  
	
  Attn: Chief Financial Officer

  	
   

  	
  Fax: (713) 652-5152

  

 

All such notices and communications shall be
deemed to have been duly given: when delivered by hand, if personally
delivered; when delivered by courier, if delivered by commercial overnight
courier service; five business days after being deposited in the mail, postage
prepaid, if mailed; and when receipt is acknowledged, if telecopied.

 

9.4                                 Counterparts.  This Agreement may be executed in any number
of counterparts, and each such counterpart will for all purposes be deemed an
original, and all such counterparts shall constitute one and the same
instrument.

 

9.5                                 Governing Law; Forum.  This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware
applicable to contracts entered into and to be wholly performed therein.  Each
party to this Agreement hereby irrevocably agrees that any legal action or
proceeding arising out of or relating to this

 

18

 

Agreement or any agreements or transactions
contemplated hereby shall be brought in the courts of the State of Delaware or
of the United States of America for the District of Delaware and hereby
expressly submits to the personal jurisdiction and venue of such courts for the
purposes thereof and expressly waives any claim of improper venue and any claim
that such courts are an inconvenient forum. 
Each party hereby irrevocably consents to the service of process of any
of the aforementioned courts in any such suit, action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to
the address set forth in Section 9.3, such service to become effective 10
days after such mailing.

 

9.6                                 Attorneys’ Fees.  If any party should institute any action to
enforce or interpret any term or provision of this Agreement, the party
prevailing in such action, after all appeals have been exhausted, shall be
entitled to its attorneys’ fees, out-of-pocket disbursements and all other
expenses from the non-prevailing party in such action.

 

9.7                                 Entire Agreement.  This Agreement (together with all Exhibits
and Schedules hereto) constitutes the entire understanding and agreement
between the parties hereto with respect to the subject matter hereof and
supersedes all prior and contemporaneous written and oral negotiations,
discussions, agreements and understandings with respect to such subject matter.

 

9.8                                 Section Headings.  The section and subsection headings
contained in this Agreement are included for convenience only and form no part
of the agreement between the parties.

 

9.9                                 Consent of Investors.  Any term or condition hereof may be waived or
amended by the consent of all Investors who have purchased the shares
hereunder.  

 

9.10                           Interpretation.  Each of the Investors and the Company have
participated in the negotiation and drafting of this Agreement.  Accordingly, each of the parties hereby
waives any statutory provision, judicial precedent or other rule of law to
the effect that contractual ambiguities are to be construed against the party
who shall have drafted the same.

 

9.11                           Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be or become
prohibited or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity without invalidating the
remainder of such provision or the remaining provisions of this Agreement except
to the extent that any provision would clearly be contemplated by the parties
to be conditioned upon the validity and enforceability of such invalid or
prohibited provision.

 

9.12                           Public Announcements.   The Company shall issue a press release regarding
the closing of this offering within one (1) business day after the
Closing. Except for such disclosure as the Company is advised by counsel is
required to be included in documents filed with the Securities and Exchange
Commission or otherwise required by law, the Company shall not use the name of,
or make reference to, any Investor or any of its Affiliates in any press
release or in any public manner (including

 

19

 

any reports or filings made by the Company under the Exchange Act)
without such Investor’s prior written consent which consent shall not be
unreasonably withheld.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed and delivered by their
respective representatives hereunto duly authorized as of the date first above
written.

 

 

	
  BPZ ENERGY, INC.,

  	
   

  	
   

  
	
  a Colorado corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Its: 

  	
   

  	
   

  	
   

  
	
  11999 Katy Freeway, Suite 560

  	
   

  	
   

  
	
  Houston, Texas 77079

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INVESTOR

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

20

 

Schedules to BPZ Energy, Inc.

Stock
Purchase Agreement 

Dated
July 19, 2005

 

Schedule 1.1

Investors

 

See attached.

 

1

 

INVESTORS
OF BPZ ENERGY, INC.

 

	
  Investor

  	
   

  	
  Number of Shares

  	
   

  
	
  St. Philip
  Partners, LP

  	
   

  	
  250,000

  	
   

  
	
  Rubicon
  Master Fund

  	
   

  	
  1,667,000

  	
   

  
	
  Sandor
  Capital Master Fund, L.P.

  	
   

  	
  334,000

  	
   

  
	
  Hopewell
  Capital LLC

  	
   

  	
  100,000

  	
   

  
	
  JMG Capital
  Partners, LP

  	
   

  	
  333,334

  	
   

  
	
  JMP Triton
  Offshore Fund, Ltd.

  	
   

  	
  333,333

  	
   

  
	
  Columbus
  Capital Partners, L.P.

  	
   

  	
  560,000

  	
   

  
	
  Columbus
  Capital Offshore Fund, Ltd.

  	
   

  	
  440,000

  	
   

  
	
  Forest Hill
  Select Fund, LP

  	
   

  	
  512,800

  	
   

  
	
  Forest Hill
  Select Offshore Ltd.

  	
   

  	
  287,200

  	
   

  
	
  Lone Oak
  Partners LP

  	
   

  	
  200,000

  	
   

  
	
  Morgan
  Keegan Early Stage Fund, LP

  	
   

  	
  130,675

  	
   

  
	
  Morgan
  Keegan Employee Investment Fund, LP – Class B

  	
   

  	
  36,325

  	
   

  
	
  The
  Schmieding Foundation, Inc.

  	
   

  	
  100,000

  	
   

  
	
  H.C.
  Schmieding Produce Company, Inc.

  	
   

  	
  50,000

  	
   

  
	
  Waverly
  Limited Partnership

  	
   

  	
  100,000

  	
   

  
	
  Meadowbrook
  Opportunity Fund LLC

  	
   

  	
  100,000

  	
   

  
	
  Treaty Oak
  Ironwood

  	
   

  	
  254,300

  	
   

  
	
  Treaty Oak
  Master Fund

  	
   

  	
  203,400

  	
   

  
	
  Atlas
  Capital QP

  	
   

  	
  14,250

  	
   

  
	
  Atlas
  Capital Master Fund

  	
   

  	
  28,050

  	
   

  
	
  Marshall
  Small Cap Growth Fund

  	
   

  	
  530,000

  	
   

  
	
  Cougar
  Trading, LLC

  	
   

  	
  50,000

  	
   

  

 

 

	
  Investor

  	
   

  	
  Number of Shares

  	
   

  
	
  Dynamis
  Energy Fund, LP

  	
   

  	
  890,000

  	
   

  
	
  Dynamis
  Energy Fund Limited

  	
   

  	
  110,000

  	
   

  
	
  José Alvarez

  	
   

  	
  33,333

  	
   

  
	
  Select
  Contrarian Value Partners, L.P.

  	
   

  	
  150,000

  	
   

  
	
  GLG North
  American Opportunity Fund

  	
   

  	
  83,500

  	
   

  
	
  GLG European
  Long-Short Fund

  	
   

  	
  250,500

  	
   

  
	
  DKR
  SoundShore Oasis Holding Fund Ltd.

  	
   

  	
  334,000

  	
   

  
	
  Radian Group
  Inc.

  	
   

  	
  70,000

  	
   

  
	
  WTC-CIF
  Emerging Companies Portfolio

  	
   

  	
  700,000

  	
   

  
	
  The Dow
  Chemical Employees’ Retirement Plan

  	
   

  	
  380,000

  	
   

  
	
  Government
  of Singapore Investment Corporation Pte Ltd.

  	
   

  	
  200,000

  	
   

  
	
  WTC-CTF
  Emerging Companies Portfolio

  	
   

  	
  650,000

  	
   

  
	
  British
  Columbia Investment Management Corporation

  	
   

  	
  150,000

  	
   

  
	
  Oregon
  Investment Council

  	
   

  	
  650,000

  	
   

  
	
  The
  Retirement Program Plan for Employees of Union Carbide Corporation

  	
   

  	
  200,000

  	
   

  
	
  TOTAL

  	
   

  	
  11,466,000Exhibit 10.1

 

SILICON
LABORATORIES INC.

NOTICE OF GRANT OF RESTRICTED STOCK UNITS

 

_________________________________
(the “Participant”)
has been granted an award of Restricted Stock Units (the “Award”) pursuant to the Silicon Laboratories Inc.
2000 Stock Incentive Plan (the “Plan”),
each of which represents the right to receive on the applicable Settlement Date
one (1) share of Common Stock of Silicon Laboratories Inc., as follows:

 

	
  Grant
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  Number
  of Restricted 

  	
   

  	
   

  	
  , subject to
  adjustment as provided by the Restricted Stock

  
	
  Stock
  Units:

  	
  Units Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
  Vesting
  Commencement 

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Settlement
  Date:

  	
  For each
  Restricted Stock Unit, except as otherwise provided by the Restricted Stock
  Units Agreement, the date on which such unit becomes a Vested Unit in
  accordance with the vesting schedule set forth below.

  
	
   

  	
   

  
	
  Vested
  Units:  Except as
  provided in the Restricted Stock Units Agreement and provided that the
  Participant’s Service has not terminated prior to the relevant date, the
  number of Vested Units shall cumulatively increase on each of the first five
  (5) anniversaries of the Vesting Commencement Date by an amount equal to
  twenty percent (20%) of the Number of Restricted Stock Units.

  
	
   

  
	
  Addendum:

  	
   

  	
   

  
					

 

By their signatures below
or by electronic acceptance or authentication in a form authorized by the
Corporation, the Corporation and the Participant agree that the Award is
governed by this Notice and the form of Addendum, if any, attached hereto and
incorporated into this Notice and the Restricted Stock Units Agreement by
reference above and by the provisions of the Restricted Stock Units Agreement
and the Plan, both of which are made a part of this document.  The Participant acknowledges either actual receipt
of copies of the Addendum, if any, the Restricted Stock Units Agreement, the
Plan and the Plan Prospectus or that copies of such documents are available on
the Company’s internal web site and may be viewed and printed by the
Participant for attachment to this Notice. 
The Participant represents that the Participant has read and is familiar
with the provisions of the Addendum, if any, the Restricted Stock Units
Agreement and the Plan, and hereby accepts the Award subject to all of their
terms and conditions.

 

	
  SILICON
  LABORATORIES INC.

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date

  
	
  Address:

  	
  4635
  Boston Lane

  	
   

  	
   

  
	
   

  	
  Austin,
  Texas 78735

  	
   

  	
  Address

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]