Document:

Exhibit 10.1

                                    Merger of

                                 BPZ ENERGY INC.

                                      Into

                              NAVIDEC MERGER CORP.

                          A wholly owned subsidiary of

                                  NAVIDEC, INC.

                               Dated July 8, 2004

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                                MERGER AGREEMENT

     MERGER AGREEMENT (this "Agreement"), dated as of July 8, 2004, by and among
Navidec, Inc., a Colorado corporation ("Navidec"), Navidec Merger Corp., a
Colorado transitory corporation ("Merger Corp."), and BPZ Energy, Inc., a Texas
corporation ("BPZ"). Each of Navidec, Merger Corp. and BPZ is sometimes referred
to herein as a "Party" and together, as the "Parties."

                              W I T N E S S E T H :

     WHEREAS, the shareholders of BPZ, listed on Schedule A ("BPZ
Shareholders"), hold all of the issued and outstanding shares of BPZ common
stock, no par value per share (the "BPZ Common Stock"); and

     WHEREAS, Navidec is subject to the reporting requirements of Sections 13(a)
and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), and shares of Navidec common stock, no par value per share (the "Navidec
Common Stock"), are listed on the NASD OTC Electronic Bulletin Board; and

     WHEREAS, pursuant to this Agreement, Merger Corp. will merge with and into
BPZ on the terms and subject to the conditions set forth herein (the "Merger")
and, in connection therewith, and subject to the satisfaction of certain
conditions, up to 27,000,000 shares of Navidec Common Stock shall be issued to
BPZ in accordance with Schedule A and in the manner set forth in Article II
hereof and upon the terms and conditions otherwise set forth in this Agreement
in order that BPZ shall be the surviving entity and shall be a wholly-owned
subsidiary of Navidec, and BPZ shall own 71% of the issued and outstanding
shares of Navidec Common Stock and the name of the Company shall be changed to
BPZ Energy, Inc. and,

     WHEREAS, the respective Boards of Directors of the Parties have adopted
resolutions approving this Agreement and declaring its advisability;

     WHEREAS, for federal income tax purposes, the Merger is intended to qualify
as a tax-free reorganization in accordance with the provisions of Section
368(a)(2)(E) of the Internal Revenue Code of 1986, as amended (the "Code").

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements herein contained, the Parties do hereby agree, subject to the
terms and conditions hereinafter set forth, as follows:

                                    Article I
                                   THE MERGER
                                   ----------

     1.1 Consummation of the Merger. Unless this Agreement has been terminated
and the transactions contemplated have been abandoned pursuant to Section 9.1,
and subject to the satisfaction or waiver of the conditions set forth in Article
V, the consummation of the Merger (the "Closing") shall take place in accordance
with the applicable provisions of the Colorado Business Corporations Act (the
"CBCA") at 10:00 a.m. on the second business day after satisfaction or waiver of

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the conditions set forth in Article V (other than those to be satisfied at or as
of the date of the Closing) at the Denver offices of Ballard Spahr Andrews &
Ingersoll, LLP, unless another date, time or place is agreed to by the Parties
(the "Closing Date") at which time Merger Corp. will merge with and into BPZ,
and BPZ shall be the surviving entity and become a wholly-owned subsidiary of
Navidec. BPZ shall file a Certificate of Merger in the State of Texas and the
State of Colorado, and BPZ shall be the surviving corporation (the "Surviving
Corporation").

     1.2 Subsequent Actions. If, at any time after the Closing Date, the
Surviving Corporation shall consider or be advised that any deeds, bills of
sale, assignments, assurances or any other actions or things are necessary or
desirable to vest, perfect or confirm the Surviving Corporation's right, title
or interest in, to or under any of the rights, properties, privileges,
franchises or assets of either of its constituent corporations acquired or to be
acquired by the Surviving Corporation as a result of, or in connection with, the
Merger, or otherwise to carry out the intent of this Agreement, the officers and
directors of the Surviving Corporation shall be authorized to execute and
deliver, in the name and on behalf of the Parties, all such deeds, bills of
sale, assignments and assurances and to take and do, in the name and on behalf
of each such corporation, all such other actions and things as may be necessary
or desirable to vest, perfect or confirm any and all right, title and interest
in, to and under such rights, properties, privileges, franchises or assets in
the Surviving Corporation or otherwise to carry out the intent of this
Agreement.

     1.3 Surviving Corporation: Certificate of Incorporation; By-laws; Officers
and Directors. Unless otherwise agreed to by the Parties prior to the Closing,
on the Closing Date:

          (a) the certificate of incorporation of Surviving Corporation as in
effect immediately prior to the Closing (a true and correct copy of which is
attached hereto as Schedule 1.3(a)) shall be, at and after the Closing Date, the
certificate of incorporation of Surviving Corporation (the "Certificate of
Incorporation") until further altered, amended or repealed in accordance with
the this Agreement or applicable law;

          (b) the by-laws of Surviving Corporation as in effect immediately
prior to the Closing (a true and correct copy of which is attached hereto as
Schedule 1.3(b)) shall be, at and after the Closing Date, the by-laws of
Surviving Corporation until further altered, amended or repealed in accordance
with this Agreement, such by-laws or applicable law; and

          (c) the officers and directors of Surviving Corporation and Navidec
from and after the Closing shall be the Persons set forth on Schedule 1.3(c),
until their successors are elected or appointed and qualified or until their
earlier resignation or removal.

                                   Article II
                                  CAPITAL STOCK
                                  -------------

     2.1 Treatment of Capital Stock. The manner and basis of converting shares
of BPZ Common Stock for shares of common stock, no par value per share, of
Navidec by virtue of the Merger and without any action on the part of the
Parties or any holder thereof, shall be as set forth in this Article II. At or
before Closing, all shares of BPZ Preferred Stock shall convert to BPZ Common
Stock.

                                       2

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     2.2 Conversion of BPZ Common Stock. At the Closing, the BPZ Common Stock,
shall be converted into 9,000,000 shares of validly issued, fully paid and
nonassessable shares of Navidec Common Stock (the "BPZ Converted Shares") in
exchange for all of the BPZ Common Stock issued and outstanding. Immediately
subsequent to the Closing Date, Navidec shall file a proxy statement with the
Securities and Exchange Commission to seek shareholder approval to amend the
Navidec Articles of Incorporation to change the name of Navidec to BPZ Energy,
Inc. and to increase the number of shares of Navidec Common Stock authorized for
issuance to 100,000,000 shares. To provide capital to satisfy the requirements
of Section 2.5. Except as otherwise provided herein, commencing immediately
after the Closing, each certificate (a "BPZ Certificate") which, immediately
prior to the Closing, represents all or a portion of the BPZ Common Stock shall
evidence the right to receive a proportionate share of the BPZ Converted Shares
on the basis set forth in this Section 2.2 and dividends or distributions, if
any, pursuant to Section 2.4 hereof.

     2.3 Conversion of Merger Corp. Common Stock. At the Closing, each share of
Merger Corp. Common Stock issued and outstanding immediately prior to the
Closing, and all rights in respect thereof, shall forthwith cease to exist and
shall be converted into one validly issued, fully paid and nonassessable share
of common stock of BPZ.

     2.4 Exchange Procedures. On the Closing Date, BPZ shall surrender to
Navidec one or more BPZ Certificates representing the BPZ Common Stock, together
with a duly executed and completed letter of transmittal and all other documents
and materials reasonably required by Navidec to be delivered in connection
therewith, and shall be entitled to receive a certificate or certificates
representing the BPZ Converted Shares into which the shares of BPZ Common Stock
which immediately prior to the Closing were represented by such surrendered BPZ
Certificate or Certificates shall have been converted pursuant to the provisions
of Section 2.2. Unless and until a BPZ Certificate is so surrendered, no
dividend or other distribution, if any, payable to the holders of record of
shares of Navidec Common Stock as of any date subsequent to the Closing Date
shall be paid to the holder of such BPZ Certificate in respect thereof or in
respect of the Navidec Common Stock into which such BPZ Certificate is
exchangeable. Except as otherwise provided herein, upon the surrender of a BPZ
Certificate, the record holder of the certificate or certificates representing
shares of Navidec Common Stock issued in exchange therefor shall be entitled to
receive (i) at the time of surrender, the amount of any dividends or other
distributions (net of any applicable tax withholdings) having a record date
after the Closing Date and a payment date prior to the surrender date, and (ii)
at the appropriate payment date, the amount of dividends or other distributions
(net of any applicable tax withholdings) having a record date after the Closing
Date and a payment date subsequent to the surrender date, in each case, payable
in respect of such shares of Navidec Common Stock. No interest shall be payable
in respect of the payment of dividends or distributions pursuant to the
immediately preceding sentence.

                                       3

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     2.5 Earn-Out Provisions.

          (a) Notwithstanding anything in this Agreement to the contrary,
promptly following the date (which date shall be no later than 24 months from
the Closing Date) that the Surviving Corporation (or any successor thereto)
receives confirmation from a licensed petroleum engineer that it owns proven
reserves totaling greater than fifty billion cubic feet (bcfe) of natural gas or
its equivalent in crude oil or any combination thereof as barrels of oil
equivalent (boe), such date being referred to herein as an "Earn-Out Achievement
Date", the BPZ Shareholders shall be entitled to and shall receive an additional
9,000,000 shares of validly issued, fully paid and non-assessable Navidec Common
Stock (the "First BPZ Earn-Out Shares"), as set forth on Schedule A, and the BPZ
Shareholders shall in addition be entitled to receive, with respect to the First
BPZ Earn-Out Shares, the amount of any dividends or other distributions (net of
any applicable tax withholdings) having a record date after the Earn-Out
Achievement Date, payable in respect of such shares of Navidec Common Stock.
Notwithstanding anything in this Agreement to the contrary, if at any Earn-Out
Achievement Date the Articles of Incorporation of Navidec have not been amended
to accommodate the delivery of the BPZ Earn-Out Shares, the BPZ Earn-Out Shares
shall be deemed issued and shall be delivered as soon as necessary corporate
action has been taken to amend such Articles of Incorporation to increase the
authorized capital as required by Section 8.5 of this Agreement.

          (b) Notwithstanding anything in this Agreement to the contrary,
promptly following the date (which date shall be no later than 36 months from
the first Earn Out Achievement Date as set forth in (a) above) that the
Surviving Corporation (or any successor thereto) is entitled to receive as its
proportionate share from gross production from any oil and gas wells owned or
operated by BPZ not less than 2,000 barrels of oil per day or the energy
equivalent thereof should said production be a mixture of both oil and natural
gas ("BOEPD") (the "Second Earn-Out Achievement Date"), the BPZ Shareholders
shall be entitled to and shall receive 9,000,000 additional shares of validly
issued, fully paid and non-assessable Navidec Common Stock (the "Second BPZ
Earn-Out Shares," and collectively or independently with the First BPZ Earn-Out
Shares, the "BPZ Earn-Out Shares"). In addition to the Second BPZ Earn-Out
Shares, the BPZ Shareholders shall be entitled to receive with respect to the
Second BPZ Earn-Out Shares, the amount of any dividends or other distributions
(net of any applicable tax withholdings) having a record date after the Second
Earn-Out Achievement Date, payable in respect of such shares of Navidec Common
Stock.

     2.6 Federal Income Tax Treatment. It is the intent of the Parties that the
Merger contemplated hereby be treated for federal income tax purposes as a
tax-free merger pursuant to Section 368(a)(2)(E) of the Internal Revenue Code of
1986, as amended (the "IRC"). The Parties shall report the transactions under
this Agreement consistent with such treatment, shall keep such records and file
such information with respect thereto as is required by Treasury Regulation
1.368-3 and shall take no position that is contrary thereto except pursuant to
an administrative finding upon the appeal of a 30-day letter or unless required
to do so pursuant to a determination as defined in IRC Section 1313(a).

                                       4

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                                  Article III
                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     3.1 Representations and Warranties of Navidec and Merger Corp. Except as
set forth in the Navidec disclosure schedule delivered by Navidec to BPZ prior
to the execution of this Agreement (the "Navidec Disclosure Schedule") (each
section of which qualifies the correspondingly numbered representation and
warranty or covenant and any other representation of warranty, if the disclosure
set forth in the Navidec Disclosure Schedule is reasonably apparent to such
other representation or warranty), Navidec and Merger Corp. represent and
warrant to BPZ, as follows:

          (a) Power and Authority. Navidec and Merger Corp. have the corporate
power and authority to enter into this Agreement and to carry out its and their
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized
by the Boards of Directors of Navidec and Merger Corp., and no other corporate
proceedings on the part of Navidec or Merger Corp. is necessary or advisable to
authorize this Agreement and the transactions contemplated hereby.

          (b) No Material Adverse Effect. Since March 31, 2004, there has not
been any material adverse change in the business, operations, properties,
assets, condition, financial or otherwise, of Navidec.

          (c) Due Organization; Power; Qualification; Subsidiaries and
Affiliates, Etc.

               (i) Navidec is a corporation duly organized, validly existing,
          and in good standing under the laws of the state of its incorporation
          and has the corporate power to own its property and to carry on its
          business as now conducted. Navidec is not qualified to do business as
          a foreign corporation in any jurisdiction.

               (ii) Navidec has three subsidiaries namely Merger Corp., Navidec
          Financial Services, Inc. ("Navidec Financial") and Northsight Mortgage
          Corporation ("Northsight"). Navidec has no other subsidiaries or
          affiliates, as that term is used in the regulations promulgated under
          the Securities Act of 1933, as amended (the "Securities Act"). Prior
          to the closing date, Northsight will become a subsidiary of Navidec
          Financial.

          (d) Capitalization.

               (i) As of the date of this Agreement, the total authorized
          capital stock of Navidec consists of 20,000,000 shares of Navidec
          Common Stock. As of the Closing Date except as described in Section
          3.1(d)(ii) below, 5,000,000 shares will be outstanding and/or reserved
          for to permit the exercise of any vested and unexpired options which
          may be outstanding at closing and as set forth on Schedule 3.1(d)(I).
          If subsequent to closing any options are exercised in accordance with
          their terms as set forth on Schedule 3.1(d)(c) any funds received as
          proceeds of such exercises shall be payable by Navidec to Navidec

                                       5

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          Financial. Between the date of this Agreement and the Closing Date the
          management of Navidec may take whatever actions it deems appropriate
          to grant or amend stock or stock option grants to its management and
          employees so long as the combined fully diluted number of shares that
          are issued and outstanding or reserved for does not exceed 5,000,000
          shares at the Closing Date.

               (ii) Immediately upon execution of this Agreement, Navidec with
          the assistance of BPZ shall commence a private placement of Navidec
          Common Shares to raise up to $6 million on a best efforts all or none
          $3 million minimum; best efforts $6 million maximum basis. No more
          than 6,000,000 Navidec Common Shares will be issued in this offering
          and to the extent that the minimum has been reached and Closing has
          occurred, the balance of the shares reserved for the private placement
          may continue to be offered until the maximum has been achieved.

               (iii) Other than 564,500 "A" Stock Purchase Warrants exercisable
          into shares of Navidec Common Stock at an exercise price of $2.00 per
          share, expiring on August 31, 2005, and 564,500 "B" Stock Purchase
          Warrants exercisable into shares of Navidec Common Stock at an
          exercise price of $4.00 per share, expiring on August 31, 2005
          (collectively, the "Warrants"), there are no present and on the
          Closing Date there will be no outstanding subscriptions, options,
          warrants, contracts, calls, puts, agreements, demands or other
          commitments or rights of any type to purchase or acquire any
          securities of Navidec (other than the Warrants), nor are there
          outstanding securities or debt instruments of Navidec which are
          convertible into or exchangeable for any shares of capital stock of
          Navidec, and, other than may be required in connection with this
          agreement, Navidec presently has and as of the Closing Date will have
          no obligations of any kind to issue any additional securities.

               (iv) As contemplated, the Parties agree that prior to Closing,
          Navidec shall establish a record date to spin out the shares of
          Navidec Financial owned by Navidec to all shareholders of record of
          Navidec at the record date. The Parties believe that this transaction
          may require registration. Furthermore, the Parties agree that at or
          before Closing, in addition to assigning the Navidec ownership of
          Northsight to Navidec Financial, all other assets and liabilities of
          Navidec shall be assigned to Navidec Financial. It is contemplated by
          the parties to this Agreement that at the effective date of the
          completion of all transactions contemplated by this Agreement
          including the finalization of the spin-off of Navidec Financial,
          effectively Navidec, as of the Closing Date, would have no assets, no
          liabilities and no effective business other than the businesses of
          BPZ.

          (e) Securities Filings; Financial Information; No Material Adverse
Change.

               (i) The common stock of Navidec is listed on the NASD OTC
          Electronic Bulletin Board. Navidec has filed its annual report on Form
          10-K for the year ended December 31, 2003 and its quarterly report on
          Form 10-QSB for the period ended March 31, 2004 (the "Navidec Periodic

                                       6

<PAGE>

          Reports") with the SEC. The Navidec Periodic Reports were true,
          correct and accurate as of the date of filing and do not contain any
          untrue statement of material fact or omit to state a material fact
          required to be stated therein in order to make the statements therein,
          in light of the circumstances under which they were made, not
          misleading.

               (ii) The Navidec Periodic Reports include Navidec's audited
          balance sheets and income statements for the fiscal years ended
          December 31, 2002 and December 31, 2003, and unaudited financial
          information for March 31, 2003 and 2004 (collectively, the "Financial
          Statements"). The Financial Statements have been prepared in
          accordance with generally accepted accounting principles, do not
          contain any untrue statement of a material fact or omit to state a
          material fact required to be stated therein in order to make the
          statements therein, in light of the circumstances under which they
          were made, not misleading, and fairly present in all material
          respects, the financial condition of Navidec as at the respective
          dates thereof, and the results of operation of Navidec for the periods
          then ended.

               (iii) At March 31, 2004, there were no liabilities, absolute or
          contingent of Navidec that were not shown or reserved against on the
          balance sheets included in the Financial Statements, except
          obligations under the contracts shown on or as otherwise disclosed in
          Schedule 3.1(e) of the Navidec Disclosure Schedule. As of the Closing
          Date, Navidec shall have no assets or liabilities of any kind, whether
          known or unknown, accrued, absolute, contingent or otherwise.

               (iv) Since March 31, 2004, Navidec has not sold or otherwise
          disposed of or encumbered any of the properties or assets reflected on
          the Financial Statements, or other assets owned or leased by it,
          except in the ordinary course of business, or as otherwise disclosed
          on Schedule 3.1(e) of the Navidec Disclosure Schedule.

          (f) Tax Matters.

               (i) Navidec has filed or caused to be filed with the appropriate
          federal, state, county, local and foreign governmental agencies or
          instrumentalities all material tax returns and reports required to be
          filed, and all taxes, assessments, fees and other governmental charges
          have been fully paid when due (subject to any extensions filed on a
          timely basis).

               (ii) There is not pending nor, to the knowledge of Navidec, is
          there any threatened federal, state or local tax audit of Navidec.
          There is no agreement with any federal, state or local taxing
          authority by Navidec that may affect the subsequent tax liabilities of
          Navidec.

               (iii) Without limiting the foregoing: (A) the Financial
          Statements include adequate provisions for all taxes, assessments,
          fees, penalties and governmental charges which have been or in the
          future may be assessed against Navidec with respect to the period then

                                       7

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          ended and all periods prior thereto; and (B) on the date hereof,
          Navidec is not liable for any taxes, assessments, fees or governmental
          charges.

          (g) No Conflict or Default; Enforceability; Corporate Records;
Compliance with Law. Neither the execution and delivery of this Agreement, nor
compliance with the terms and provisions hereof, including without limitation
the consummation of the transactions contemplated hereby, will violate any
statute, regulation or ordinance of any governmental authority, or conflict with
or result in the material breach of any term, condition or provision of the
articles of incorporation, by-laws or other charter documents of Navidec or
Merger Corp., nor of any agreement, deed, contract, mortgage, indenture, writ,
order, decree, legal obligation or instrument to which Navidec or Merger Corp.
is a party or by which Navidec, Merger Corp. or any of its or their assets or
properties is or may be bound; or constitute a material default (or an event
which, with the lapse of time or the giving of notice, or both, would constitute
a material default) thereunder, nor result in the creation or imposition or any
lien, charge or encumbrance, or restriction of any nature whatsoever with
respect to any properties or assets of Navidec or Merger Corp., nor give to
others any interest or rights, including rights of termination, acceleration or
cancellation in or with respect to any of the properties, assets, contracts or
business of Navidec or Merger Corp. This Agreement and all other agreements and
documents delivered by Navidec and Merger Corp. in connection herewith have been
duly executed and delivered by Navidec and Merger Corp. and constitute the
binding obligations of Navidec and Merger Corp. enforceable in accordance with
their respective terms. Navidec and Merger Corp. have permitted, or will permit,
BPZ to examine their respective corporate minute and stock records books. The
corporate minute books contain the articles of incorporation, by-laws and other
charter documents of Navidec and Merger Corp. as in effect on the date hereof
and a true and complete record of all actions by and meetings of the directors
(and committees thereof) and stockholders of Navidec and Merger Corp. and
accurately reflect all transactions referred to therein. To their knowledge,
neither Navidec nor Merger Corp. are in violation of any outstanding arbitration
award, judgment, order or decree; or to their knowledge, in violation of any
material statute, regulation or ordinance ("Law"), including, but not limited
to, any antidiscrimination, hazardous and toxic substances, wage, hour, working
condition, payroll withholding, pension, building, zoning and tax Law. To their
knowledge, there have been no allegations of or inquiries concerning any
material violations of Law by Navidec or Merger Corp. within the past three
years.

          (h) Litigation. Except as disclosed in the Navidec Periodic Reports,
or in Schedule 3.1(h) there are no actions, suits, investigations, or
proceedings pending, nor, to the knowledge of Navidec, threatened against
Navidec or Merger Corp., the performance of the terms and conditions hereof, or
the consummation of the transactions contemplated hereby, in any court or by or
before any governmental body or agency, including without limitation any claim,
proceeding or litigation for the purpose of challenging, enjoining or preventing
the execution, delivery or consummation of this Agreement. Neither Navidec nor
Merger Corp. is subject to any order, judgment, decree, stipulation or consent
or any agreement with any governmental body or agency. As of the Closing Date,
neither Navidec nor Merger Corp. shall be party to any action, suit or
proceeding of any kind.

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<PAGE>

          (i) Governmental and Other Approval. Navidec and Merger Corp each have
all material permits, licenses, orders and approvals of all federal, state,
local or foreign governmental or regulatory bodies required for Navidec and
Merger Corp. to conduct its or their business as presently conducted. All such
permits, licenses, orders and approvals are in full force and effect and no
suspension or cancellation of any of them is threatened, except as would not
reasonably be expected to have a material adverse effect on Navidec or Merger
Corp., and none of such permits, licenses, orders or approvals will be affected
by the consummation of the transactions contemplated by this Agreement. No
approval or authorization of or filing with any governmental authority or any
other person or entity on the part of Navidec or Merger Corp. is required as a
condition to the execution and delivery of this Agreement or the consummation of
the transactions contemplated hereby other than the filing of any documents
contemplated by this Agreement.

          (j) Salaries. Schedule 3.1(j) of the Navidec Disclosure Schedule sets
forth a complete list of all of the persons who are employed by Navidec and
Merger Corp. as of the date of this Agreement, together with their compensation
(including bonuses) for the calendar year ended December 31, 2003, and the rate
of compensation (including bonus arrangements) currently being paid to each such
employee. As of the Closing Date, all employees, agents and officers of Navidec
and Merger Corp. shall have resigned and provided Navidec and Merger Corp. with
general releases in form and substance satisfactory to BPZ.

          (k) Accrued Compensation. Neither Navidec nor Merger Corp. has, nor
shall it on Closing, have any outstanding liability for payment of wages,
vacation pay (whether accrued or otherwise), salaries, bonuses, pensions or
contributions under any labor or employment contract, whether oral or written,
or by reason of any past practices with respect to such employees based upon or
accruing with respect to services of present or former employees of Navidec or
Merger Corp.

          (l) Employee Benefit Plans. Neither Navidec nor Merger Corp. has,
maintains or contributes to and never has had, maintained or contributed to, any
pension plan, profit sharing plan or employee's savings plan, and neither is
otherwise subject to any applicable provisions of the Employee Retirement Income
Security Act of 1974 ("ERISA").

          (m) Material Contracts, Etc. Schedule 3.1(m) of the Navidec Disclosure
Schedule contains an accurate list of all material contracts, commitments,
leases, instruments, agreements, licenses or permits, written or oral, to which
Navidec or Merger Corp. is a party or by which it or its properties are bound
(including without limitation contracts with customers, joint venture or
partnership agreements, contracts with any labor organizations, employment
agreements, consulting agreements, loan agreements, indemnity or guaranty
agreements, BPZ's, mortgages, options to purchase land, liens, pledges or other
security agreements). As of the Closing Date, Navidec and Merger Corp. shall
have terminated and been released from any and all contracts, commitments,
leases, instruments, agreements.

          (n) The representation and warranties contained herein do not contain
any untrue statement of a material fact or omit 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.

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<PAGE>

     3.2 Representations and Warranties of BPZ. Except as set forth in the
disclosure schedule delivered by BPZ to Navidec prior to the execution of this
Agreement (the "BPZ Disclosure Schedule") (each section of which qualifies the
correspondingly numbered representation or warranty or covenant and any other
representation or warranty, if the disclosure set forth in the BPZ Disclosure
Schedule is readily applicable to such other representations or warranty), BPZ
represents and warrants to Navidec as follows:

          (a) Power and Authority. BPZ has the corporate power and authority to
enter into this Agreement and to carry out its obligations hereunder. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by the Board of
Directors of BPZ, and no other corporate proceedings on the part of BPZ are
necessary to authorize this Agreement and the transactions contemplated hereby.

          (b) BPZ Financial Statements. BPZ has heretofore delivered to Navidec
BPZ's audited Balance Sheet and Income Statements for the fiscal years ended
December 31, 2001, December 31, 2002 and December 31, 2003 (collectively, the
"BPZ Financial Statements").

          (c) Financial Information; No Material Adverse Effect.

               (i) The BPZ Financial Statements have been prepared in accordance
          with generally accepted accounting principles, do not contain any
          untrue statement of a material fact or omit to state a material fact
          required to be stated therein in order to make the statements therein,
          in light of the circumstances under which they were made, not
          misleading, and fairly present in all material respects, the financial
          condition of BPZ as at the respective dates thereof, and the results
          of operation of BPZ for the periods then ended.

               (ii) Since December 31, 2003, there has been no material adverse
          change in the business or financial condition or the operations of BPZ
          except as set forth on Schedule 3.2(c) of the BPZ Disclosure Schedule.

               (iii) At December 31, 2003, there were no liabilities, absolute
          or contingent of BPZ that were not shown or reserved against on the
          balance sheets included in the BPZ Financial Statements, except
          obligations under the contracts shown on or as otherwise disclosed in
          Schedule 3.3(n) of the BPZ Disclosure Schedule.

               (iv) Since December 31, 2003, BPZ has not sold or otherwise
          disposed of or encumbered any of the properties or assets reflected on
          the Financial Statements, or other assets owned or leased by it,
          except in the ordinary course of business, or as otherwise disclosed
          on Schedule 3.2(c) of the BPZ Disclosure Schedule.

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<PAGE>

          (d) Due Organization; Power; Qualification; Subsidiaries and
Affiliates, Etc.

               (i) BPZ is a corporation duly organized, validly existing, and in
          good standing under the laws of the state of Texas and has the
          corporate power to own its property and to carry on its business as
          now conducted.

               (ii) Other than a registered Peruvian branch office with the name
          "BPZ Energy, Inc. SUCURSAL Peru",and SMC Corporation, a Delaware
          corporation with a registered branch in Ecuador which are wholly owned
          by BPZ, BPZ has no subsidiaries or affiliates, as that term is used in
          the regulations promulgated under the Securities Act.

          (e) Capitalization.

               (i) As of the date of this Agreement, the total authorized
          capital stock of BPZ consists of 40,000,000 shares of common stock, no
          par value per share, of which 26,320,000 shares are issued and
          outstanding. Additionally, BPZ is authorized to issue 5,000,000 shares
          of preferred stock, of which 905,000 shares are outstanding as Series
          A 6% Callable Convertible Redeemable Preference Shares. All of the
          outstanding BPZ Common Stock and Preferred Stock have been duly
          authorized and validly issued, and are fully paid and non-assessable.

               (ii) There are no present and on the Closing Date there will be
          no outstanding options, warrants, convertible securities or rights
          which may require BPZ to issue additional shares of its capital stock
          other than as listed on Schedule 3.3(e) of the BPZ Disclosure
          Schedule.

          (f) Tax Matters.

               (i) BPZ has filed or caused to be filed with the appropriate
          federal, state, county, local and foreign governmental agencies or
          instrumentalities all material tax returns and tax reports required to
          be filed, and all taxes, assessments, fees and other governmental
          charges have been fully paid when due (subject to any extensions filed
          on a timely basis).

               (ii) There is not pending nor, to the knowledge of BPZ, is there
          any threatened federal, state or local tax audit of BPZ. There is no
          agreement with any federal, state or local taxing authority by BPZ
          that may affect the subsequent tax liabilities of BPZ.

          (g) Title to BPZ Shares. The BPZ Shareholders have full right, title
and interest to all of the BPZ Common Shares as set forth on Schedule A, free
and clear of any lien, encumbrance or claim of any third party whatsoever
including statutory, regulatory or equitable claims. Assignment of the title to
the BPZ Common Shares will not violate any covenant, agreement or condition to
which the BPZ Shareholders are a Party in any way related to change of control
which could in anyway impact the validity of the assignment or the value of the
BPZ assets.

                                       11

<PAGE>

          (h) No Conflict or Default; Enforceability; Corporate Records;
Compliance with Law. Neither the execution and delivery of this Agreement, nor
compliance with the terms and provisions hereof, including without limitation
the consummation of the transactions contemplated hereby, will violate any
statute, regulation or ordinance of any governmental authority, or conflict with
or result in the material breach of any term, condition or provision of the
articles of incorporation, by-laws or other charter documents of BPZ, nor of any
agreement, deed, contract, mortgage, indenture, writ, order, decree, legal
obligation or instrument to which BPZ is a party or by which BPZ or any of its
respective assets or properties are or may be bound; or constitute a material
default (or an event which, with the lapse of time or the giving of notice, or
both, would constitute a material default) thereunder, nor result in the
creation of imposition of any lien, charge or encumbrance, or restriction of any
nature whatsoever with respect to any properties or assets of BPZ, nor give to
others any interest of rights, including rights of termination, acceleration or
cancellation in or with respect to any of the properties, assets, contracts or
business of BPZ. This Agreement and each other agreement and document delivered
by BPZ in connection herewith have been duly executed and delivered and
constitute the binding obligations of BPZ enforceable in accordance with their
respective terms. BPZ has permitted, or will permit, Navidec to examine the
corporate minute and stock records books of BPZ. The corporate minute books
contain the articles of incorporation and by-laws and other charter documents of
BPZ as in effect on the date hereof and a true and complete record of all
actions by and meetings of the directors (and committees thereof) and the BPZ
Shareholders and accurately reflect all transactions referred to therein. BPZ is
not in violation of any outstanding arbitration award, judgment, order or
decree; or in violation of any applicable Law, including, but not limited to,
any antidiscrimination, hazardous and toxic substances, wage, hour, working
condition, payroll withholding, pension, building, zoning and tax Law. There
have been no allegations of or inquiries concerning any violations of law by BPZ
within the past three years.

          (i) Party to Agreements. To its knowledge, BPZ is not in default in
any material respect under any contract or agreement to which BPZ is a party or
by which BPZ or any of its assets is or may be bound.

          (j) Litigation. There are no actions, suits, investigations, or
proceedings pending, or, threatened, against BPZ or with respect to the
conveyance of clear title to BPZ shares, the BPZ shareholders, the performance
of the terms and conditions hereof, or the consummation of the transactions
contemplated hereby, in any court or by or before any governmental body or
agency, including without limitation any claim, proceeding or litigation for the
purpose of challenging, enjoining or preventing the execution, delivery or
consummation of this Agreement.

          (k) Governmental and Other Approval. BPZ has all material permits,
licenses, orders and approvals of all federal, state, local or foreign
governmental or regulatory bodies required for them to conduct their respective
business as presently conducted. All such permits, licenses, orders and
approvals are in full force and effect and no suspension or cancellation of any
of them is threatened, except as would not reasonably be expected to have a
material adverse effect on BPZ, and none of such permits, licenses, orders or
approvals will be affected by the consummation of the transactions contemplated
by this Agreement. No approval or authorization of or filing with any
governmental authority or any other person or entity on the part of BPZ is
required as a condition to the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby other than the filing of
any documents contemplated by this Agreement.

                                       12

<PAGE>

          (l) Salaries. Schedule 3.3(k) of the BPZ Disclosure Schedule sets
forth a complete list of all of the persons who are employed by BPZ as of the
date of this Agreement, together with their compensation (including bonuses) for
the calendar year ended December 31, 2003, and the rate of compensation
(including bonus arrangements) currently being paid to each such employee.

          (m) Accrued Compensation. BPZ does not have any outstanding liability
for payment of wages, vacation pay (whether accrued or otherwise), salaries,
bonuses, pensions or contributions under any labor or employment contract,
whether oral or written, or by reason of any past practices with respect to such
employees based upon or accruing with respect to services of present or former
employees of BPZ other than as disclosed on Schedule 3.3(l) of the BPZ
Disclosure Schedule.

          (n) Employee Benefit Plans. BPZ does not have, maintain or contribute
to and never has had, maintained or contributed to, any pension plan, profit
sharing plan or employee's savings plan, and neither is otherwise subject to any
applicable provisions of the Employee Retirement Income Security Act of 1974
("ERISA").

          (o) Material Contracts, Etc. Schedule 3.3(n) of the BPZ Disclosure
Schedule contains an accurate list of all material contracts, commitments,
leases, instruments, agreements, licenses or permits, written or oral, to which
BPZ is a party or by which it or its properties are bound (including without
limitation contracts with customers, joint venture or partnership agreements,
contracts with any labor organizations, employment agreements, consulting
agreements, loan agreements, indemnity or guaranty agreements, BPZ's, mortgages,
options to purchase land, liens, pledges or other security agreements).

          (p) Assets of BPZ. BPZ, via its Peruvian registered branch BPZ Energy,
Inc. SUCURSAL Peru, has exclusive contractual rights under the Peruvian
Hydrocarbon Regulations to (100%) of Areas VI and XVI, and Block XIX located in
Peru, and five percent (5%) of Block Z-1 plus the balance of interest of
ninety-five percent (95 %), which has been recently released by the former
operator and assigned to BPZ subject to appropriate amendment of the contract,
located in Peru (collectively the "BPZ Owned Peru Blocks"), in each instance
subject to an aggregate ten percent (10%) cost-free interest in the gross
revenues, net of royalties paid to the government, of the BPZ Owned Peru Blocks.
This overriding ten percent (10%) interest is separately owned by BPZ &
Associates, Inc., the predecessor organization that originally developed the
information and relationships that created the prospects and projects currently
owned by BPZ Energy, Inc. Legal descriptions of Areas VI and XVI, and Blocks XIX
and Z-1 are as set forth on Schedule 3.3(o) of the BPZ Disclosure Schedule. In
addition, BPZ's wholly owned subsidiary, SMC Ecuador, Inc., holds a ten percent
(10%) working interest in and to the oil and gas producing property known as the
Campo Gustavo Galindo oilfield of Ecuador.

                                       13

<PAGE>

          (q) The representation and warranties contained herein do not contain
any untrue statement of a material fact or omit 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.

                                   Article IV
                                    COVENANTS
                                    ---------

     4.1 Navidec Negative Covenants. Navidec agrees that, prior to the Closing
Date:

          (a) No dividend shall be declared or paid or other distribution
(whether in cash, stock, property or any combination thereof) or payment
declared or made in respect of Navidec Common Stock, nor shall Navidec purchase,
acquire or redeem or split, combine or reclassify any shares of its capital
stock; provided, however, (subject to Section 3.1(d)), Navidec may affect a
dividend in respect of the Navidec Common Stock, payable in Navidec Common
Stock, and further, Navidec may effect the "spin-off" of Navidec Financial.

          (b) Except pursuant to Section 3.1(d), no change shall be made in the
number of authorized or issued Navidec Common Stock nor shall any option,
warrant, call, right, commitment or agreement (other than this Agreement) of any
character be granted or made by Navidec relating to its authorized or issued
Navidec Common Stock; nor shall Navidec issue, grant or sell any securities or
obligations convertible into or exchangeable for Navidec Common Stock.

          (c) Navidec will not take, agree to take, or knowingly permit to be
taken any action, nor do or knowingly permit to be done anything in the conduct
of the business of Navidec or otherwise, which would be contrary to or in breach
of any of the terms or provisions of this Agreement, or which would cause any of
Navidec's representations and warranties contained herein to be or become untrue
in any material respect at the Closing Date including without limitation
amending Navidec's charter documents and By-laws, except as otherwise provided
hereby.

          (d) Navidec will not (i) incur any indebtedness for borrowed money;
(ii) assume, guarantee, endorse, or otherwise become liable or responsible
(whether directly, contingently or otherwise) for the obligations of any other
individual, firm or corporation; or (iii) make any loans, advances or capital
contributions to or investments in, any other individual, firm or corporation.

          (e) Navidec will not make, alter or change any employment or other
contract with any of its management personnel or make, adopt, alter, revise, or
amend any pension, bonus, profit-sharing or other employee benefit plan, or
grant any salary increase or bonus to any person without the prior written
consent of BPZ.

     4.2 Conduct of Business Pending the Merger. Prior to the effective date of
the Merger, unless each of the Parties hereto shall otherwise agree in writing,
none of Navidec, Merger Corp. or BPZ shall (i) operate its business otherwise
than in the ordinary course, or (ii) authorize, recommend or propose any merger,
consolidation, acquisition of assets, disposition of assets, material change in

                                       14

<PAGE>

its capitalization or any comparable event, not in the ordinary course of
business or in furtherance of the transactions contemplated hereby (in each
case, other than the transactions contemplated hereby and transactions as to
which written notice has been given to the other companies prior to the date
hereof).

                                   Article V
                                CERTAIN COVENANTS
                                -----------------

     5.1 General. Each of the Parties shall use its reasonable best efforts to
take all action and to do all things necessary, proper or advisable in order to
consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the conditions set forth in Article
V below).

     5.2 Navidec Financial. Navidec shall take all steps necessary to effect the
"spin-off" of its wholly owned subsidiary, Navidec Financial to the shareholders
of Navidec as of any record date preceding the Closing. Prior to the spin-off,
Navidec Financial shall be assigned essentially all of the business assets
including two million shares of duly issued fully paid Navidec common stock and
all of the liabilities of Navidec and agree to indemnify Navidec from any
liability relating to the assigned liabilities. Additionally, Navidec
Financial's management shall take the steps deemed necessary at its expense to
qualify the spin-off pursuant to the Securities Act as is required. To the
extent that the actions required to complete the spin-off of Navidec Financial
are not completed prior to the date of Closing, the Parties hereto agree in
accordance with Section 1.2 to cooperate fully with the new management of
Navidec Financial to complete all necessary filings, registrations, and the
execution of all agreements required to consummate the transactions contemplated
and necessary relative to the spin-off.

     5.3 Directors. At Closing, all existing directors of Navidec and Merger
Corp. shall resign except John McKowen. Mr. McKowen shall then appoint a slate
of directors as set forth on Schedule 1.3(c). Navidec shall file any reports
required to be filed with the SEC as a result of the resignation and appointment
of directors, if any, and BPZ shall provide information reasonably requested by
Navidec in connection therewith.

     5.4 Leak Out/Voting Agreements. At Closing, Navidec shall deliver to BPZ
leak out and voting agreements executed by each of the Navidec shareholders
identified on Schedule 5.4 (collectively, the "Leak Out Agreements"). The form
of such Leak Out and Voting Agreements shall be prepared by or on behalf of BPZ
and subject to the approval of Navidec, which approval shall not be unreasonably
withheld, delayed or conditioned. The Voting Agreements shall provide, among
other things for the Navidec shareholders identified on Schedule 5.4 to vote
their Navidec Common Stock favorably on all matters relating to consummate the
transactions contemplated hereby for a period of not less than 1 year or such
shorter period the shareholders own the stock subject to this Agreement.

     5.5 Disclosure. Each of the Parties hereto acknowledges that it has, and
will have, possession of important confidential information ("Confidential
Information") regarding the other Parties. Each of the Parties hereto agrees
that it shall not use any confidential information except in furtherance of the
transactions contemplated hereby and shall not divulge, communicate, furnish or

                                       15

<PAGE>

make accessible any Confidential Information to any person, firm, partnership,
corporation or other entity. No party hereto shall make any public statement
from the date of this Agreement through the Closing Date, including without
limitation any press release, with respect to this Agreement and the
transactions contemplated hereby, without the prior written consent of the other
Parties (which consent may not be unreasonably withheld), except as may be
required by law, in which case the Parties shall consult with each other as to
the nature and scope of the required disclosure and any protective measures
which should be taken to preserve the confidentiality of the disclosed
information. If any party becomes legally compelled to disclose information
relating to this Agreement, such party shall provide the other Parties with
notice of such requirement to allow such party to seek a protective order or
other remedy. If such protective order or other remedy is not obtained, or if
compliance hereof is waived, each party agrees to disclose only that portion of
information which is legally required to be disclosed and to permit the other
Parties at their expense to take all reasonable steps to preserve the
confidentiality of the transactions hereunder.

     5.6 Recommendation of Approval. The Board of Directors of Navidec shall
continue to approve this Agreement and the transactions contemplated hereby
except as the fiduciary obligations and other duties of such Board of Directors
may otherwise require.

     5.7 Access. Prior to the Closing, BPZ shall afford to the officers,
attorneys, accountants, and other authorized representatives of Navidec free and
full access to the premises, books and records of BPZ, respectively, in order
that Navidec may make such investigation as it may desire of the affairs of BPZ,
provided such access is not unreasonably disruptive to BPZ's business. Prior to
the Closing, Navidec shall afford to the officers, attorneys, accountants, and
other authorized representatives of BPZ free and full access to the premises,
books and records of Navidec so that it may make such investigations as it may
desire of the affairs of Navidec, provided such access is not unreasonably
disruptive to Navidec. Notwithstanding the foregoing, the Parties hereto
acknowledge that BPZ is actively in the process of negotiating to acquire
certain oil producing properties and that such transactions may necessarily
involve the acquisition of the entities holding such properties.

     5.8 No Solicitation. Subject to its fiduciary obligations, prior to
Closing, Navidec and BPZ will not, nor will they permit any agent or affiliate
to, solicit, initiate or encourage any Acquisition Proposal (as hereinafter
defined) or furnish any information to, or cooperate with, any person,
corporation, firm or other entity with respect to an Acquisition Proposal. As
used herein "Acquisition Proposal" means a proposal for a merger or other
business combination involving such entity or for the acquisition of a
substantial equity interest in, or a substantial portion of the assets of such
entity other than the Merger.

     5.9 Notice of Developments. Navidec and BPZ shall give prompt written
notice to the other of any development causing a breach of any of its own
representations and warranties in Article III. No disclosure by Navidec, Merger
Corp. or BPZ pursuant to this Section 5.9, however, shall be deemed to amend or
supplement the Disclosure Schedule of the relevant party or to prevent or to
cure any misrepresentation or breach of representation or warranty.

                                       16

<PAGE>

                                   Article VI
                                   CONDITIONS
                                   ----------

     6.1 Conditions to the Obligations of Navidec. The obligations of Navidec to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction, at or before the consummation of the transactions contemplated
hereby of each of the following conditions:

          (a) No action shall have been taken, and no statute, rule, regulation
or order shall have been promulgated, enacted, entered, enforced or deemed
applicable to the transactions contemplated hereby by any federal, state or
foreign government or governmental authority or by any court, domestic or
foreign, including entry of a preliminary or permanent injunction, which would
(i) make the transactions contemplated hereby illegal, (ii) adversely affect BPZ
or BPZ's right to own its assets or operate its business, or (iii) if the
transactions contemplated hereby are consummated, subject any officer, director,
or employee of Navidec to criminal penalties or to civil liabilities not
adequately covered by insurance or enforceable indemnification maintained by
Navidec;

          (b) No action or proceeding before any court or governmental
authority, domestic or foreign, by any government or governmental authority or
by any other person, domestic or foreign, shall be threatened, instituted or
pending which would (i) reasonably be expected to result in any way of the
consequences referred to in clauses (i) through (iii) of paragraph (a) above, or
(ii) relate to any person asserting a claim that (A) he, she or it is the holder
or the beneficial owner of, or has the right to acquire or to obtain beneficial
ownership of, any stock of, or any other voting, equity, or ownership interest
in, BPZ, or (B) is entitled to all or any portion of the Navidec Common Stock;

          (c) BPZ shall have complied in all material respects with the
agreements and covenants herein, and all representations and warranties of BPZ
herein shall be true and correct in all material respects at the time of Closing
as if made at that time, except to the extent they expressly relate to an
earlier date, and Navidec shall have received a certificate to that effect to
the best of the knowledge of BPZ, signed by the President of BPZ;

          (d) BPZ shall have acquired title to or licenses or leases related to
the right to drill for oil and gas on the properties listed on Schedule 6.1(d).
Furthermore, Navidec shall receive comfort that the borrowed funds utilized to
acquire the rights described in this Section 6.1(d) are issued through
facilities that at Closing are not in default and all covenants are at that date
in good standing;

          (e) Navidec and BPZ shall together make arrangements for Navidec to
receive debt or equity financing in one or more transactions to close at or
prior to Closing, in an amount not less than $3 million, upon such terms and
conditions as are acceptable to Navidec and BPZ (the "Financing"). The proceeds
of the Financing will be held in escrow by Navidec and will be released
immediately after Closing to be used by Navidec for working capital and general
corporate purposes.

                                       17

<PAGE>

          (f) A Good Standing Certificate of BPZ, dated no more than 10 days
prior to the Closing Date, from the Secretary of State of Texas;

          (g) The shareholders of BPZ shall have delivered to Navidec, one or
more Certificates representing the BPZ Common Stock, together with a duly
executed and completed letter of transmittal and all other documents and
materials reasonably required by Navidec to be delivered in connection
therewith; and

     6.2 Conditions to the Obligations of BPZ. The obligations of BPZ to
consummate the transactions contemplated hereby are subject to the satisfaction
or waiver, at or before the consummation of the transactions contemplated
hereby, of each of the following conditions:

          (a) No action shall have been taken, and no statute, rule, regulation
or order shall have been promulgated, enacted, entered, enforced or deemed
applicable to the transactions contemplated hereby by any federal, state or
foreign government or governmental authority or by any court, domestic or
foreign, including the entry of a preliminary or permanent injunction, which
would (i) make the transactions contemplated hereby illegal, or (ii) if the
transactions contemplated hereby are consummated, subject any officer, director
or employee of BPZ to criminal penalties or to civil liabilities not adequately
covered by insurance or enforceable indemnification maintained by Navidec;

          (b) No action or proceeding before any court or governmental
authority, domestic or foreign, by any government or governmental authority or
by any other person, domestic or foreign, shall be threatened, instituted or
pending which would reasonably be expected to result in any of the consequences
referred to in clauses (i) or (ii) of paragraph (a) above;

          (c) Navidec shall have complied in all material respects with its
agreements and covenants herein, and all representations and warranties of
Navidec and Merger Corp. herein shall be true and correct in all material
respects at the time of Closing as if made at that time, except to the extent
they expressly relate to an earlier date, and BPZ shall have received a
certificate to that effect to the best of the knowledge of Navidec, signed by
the President of Navidec;

          (d) The financing for a minimum of $3 million as described in Section
6.1(e) shall have been concluded.

          (e) Good Standing Certificates of Navidec and Merger Corp., dated no
more than 10 days prior to the Closing Date, from the Secretary of State of
Colorado;

          (f) All necessary third party and governmental consents and approvals
required for transactions contemplated hereby shall have been obtained;

          (g) Navidec shall have delivered to BPZ copies of the resignations of
all of the directors of Navidec and Merger Corp. as of the Closing Date, with
the exception of Mr. John McKowen, which resignations shall be dated as of the
Closing Date;

                                       18

<PAGE>

          (h) Navidec shall have delivered to BPZ copies of the Leak Out
Agreements executed by the individuals listed on Schedule 4.4; and

          (i) Navidec shall have delivered to BPZ a certificate or certificates
representing the BPZ Converted Shares.

                                  Article VII
                                 INDEMNIFICATION

     7.1 Navidec hereby agrees to indemnify and hold BPZ, and its officers,
directors, employees and agents harmless from and against the following:

          (a) Any and all liabilities, losses, claims, costs, expenses, damages
and judgments (including, without limitation, any legal or other expenses
incurred in connection with investigating or defending any matter, including any
action, that could give rise to such liabilities, losses, claims, costs,
expenses, damages and judgments) (collectively, the "Losses") resulting from or
arising out of any breach of any representation, warranty, or non-performance of
any covenant or agreement on the part of Navidec contained in this Agreement or
in any statement or certificate furnished or to be furnished by Navidec pursuant
hereto or in connection with the transactions contemplated hereby; and

          (b) Any and all losses resulting from or arising out of the conduct of
any business, any act or any omissions by or on behalf of Navidec prior to the
Closing.

     7.2 BPZ hereby agrees, to indemnify and hold Navidec, its officers,
directors, employees and agents harmless from and against any and all Losses
resulting from or arising out of any breach of any representation, warranty, or
non-performance of any covenant or agreement on the part of BPZ contained in
this Agreement or in any statement or certificate furnished or to be furnished
by BPZ pursuant hereto or in connection with the transactions contemplated
hereby. Additionally, after Closing, the newly appointed officers, directors and
affiliates of Navidec shall support any and all reasonable claims that the
former officers and directors may make for indemnification pursuant to the
Navidec Articles of Incorporation and the CBCA regarding their activities prior
to the Closing Date and their resignations pursuant to this Agreement.

     7.3 In case any action shall be commenced involving any person in respect
of which indemnity may be sought pursuant to Section 7.1, 7.2 or 7.3 (the
"Indemnified Party"), the Indemnified Party shall promptly notify the person
against whom such indemnity may be sought (the "Indemnifying Party") in writing.
A delay in giving notice shall only relieve the Indemnifying Party of liability
to the extent the Indemnifying Party suffers actual prejudice because of the
delay. The Indemnifying Party shall have the right, at its option and expense,
to participate in the defense of such a proceeding or claim, but not to control
the defense, negotiation or settlement thereof, which control shall at all times
rest with the Indemnified Party, unless the proceeding or claim involves only
money damages, not an injunction or other equitable relief, and unless the
Indemnifying Party:

                                       19

<PAGE>

          (a) irrevocably acknowledges in writing complete responsibility for
and agrees to indemnify the Indemnified Party, and

          (b) furnishes satisfactory evidence of the financial ability to
indemnify the Indemnified Party, in which case the Indemnifying Party may assume
such control through counsel of its choice and at its expense, but the
Indemnified Party shall continue to have the right to be represented, at its own
expense, by counsel of its choice in connection with the defense of such a
proceeding or claim. If the Indemnifying Party does not assume control of the
defense of such a proceeding or claim, (i) the entire defense of the proceeding
or claim by the Indemnified Party, (ii) any settlement made by the Indemnified
Party, and (iii) any judgment entered in the proceeding or claim shall be deemed
to have been consented to by, and shall be binding on, the Indemnifying Party as
fully as though it alone had assumed the defense thereof and a judgment had been
entered in the proceeding or claim in the amount of such settlement or judgment,
except that the right of the Indemnifying Party to contest the right of the
Indemnified Party to indemnification under the Agreement with respect to the
proceeding or claim shall not be extinguished. If the Indemnifying Party does
assume control of the defense of such a proceeding or claim, it will not,
without the prior written consent of the Indemnified Party settle the proceeding
or claim or consent to entry of any judgment relating thereto which does not
include as an unconditional term thereof the giving by the claimant to the
Indemnified Party a release from all liability in respect of the proceeding or
claim. The Parties hereto agree to cooperate fully with each other in connection
with the defense, negotiation or settlement of any such proceeding or claim.

     7.4 The Parties agree that the representations and warranties contained in
this Agreement will survive the Closing and continue to be binding until the
second anniversary thereof regardless of any investigation made at any time by
any party.

                                  Article VIII
                              POST-CLOSING MATTERS

     8.1 Resignation of Officers. At the closing, Navidec will cause all of its
officers to resign from office.

     8.2 AMEX/NASDAQ Small Cap Listing. Within 180 days following the Closing,
BPZ shall use reasonable commercial efforts to cause Navidec to file an
application for the listing of its common stock on the American Stock Exchange
("AMEX") or the NASDAQ Small Cap.

     8.3 Proceeds from Option Exercises. To the extent that any Navidec options
that are outstanding prior to the Closing are exercised subsequent to the
Closing Date, Navidec shall be obligated to pay the proceeds from said exercises
to Navidec Financial, whether or not Navidec Financial shall have completed its
contemplated spin-off as of the date of the exercise of said options.

     8.4 Investor Relations and Public Relations. From and after the Closing
Date, BPZ shall cause Navidec to retain Navidec Financial for investor relations
and public relations services for a period not less than twelve (12) months, and
agrees, during such period, to budget $360,000 on investor relations and public

                                       20

<PAGE>

relations services (the "PR Agreement"). The PR Agreement shall provide for the
payment of $30,000 per month as a fee plus all expenses of Navidec Financial
payable pursuant to the PR Agreement over the term of the Agreement. The budget
will also include the expenses of Navidec incurred in the furtherance of the
investor relations and public relations function and fees payable to other third
party vendors as may be anticipated by the parties to the PR Agreement. As
partial condition of the services of Navidec Financial, Navidec shall issue to
Navidec Financial a stock purchase warrant exercisable to acquire not more than
1,500,000 shares of Navidec Common Stock at an exercise price of $2.00 per share
which warrant shall expire on the second anniversary date of the PR Agreement.
At Closing, Navidec Financial shall own 2,000,000 shares of Navidec Common
Stock.

     8.5 Amendment of Navidec Articles of Incorporation. At the first annual or
special meeting of shareholders to occur after the Closing Date, the Board of
Directors shall propose an amendment to the Navidec Articles of Incorporation to
increase the commons share capital of the Company in such a fashion as to permit
Navidec to complete the exchange for BPZ Common Stock as provided by Section 2.2
and to change the name of the Company to BPZ Energy, Inc.

     8.6 Affiliate Party Transactions. Until the expiration of the 18th month
anniversary of the Closing Date, neither Navidec nor any of its subsidiaries
shall enter into any agreement, contract or arrangement relating to the issuance
of Navidec debt or equity securities, except as contemplated by Section 6.1(e),
with any affiliate of unless such agreement, contract or arrangement is
negotiated at arms-length at competitive terms.

                                   Article IX
                                  MISCELLANEOUS

     9.1 Termination. This Agreement may be terminated and the transactions
contemplated hereby may be abandoned (i) by the mutual written consent of
Navidec and BPZ at any time, (ii) by either Navidec, on the one hand, or BPZ, on
the other hand, if the transactions contemplated hereby (except the completion
of the spin-off) have not been consummated prior to September 30, 2004; (iii) by
either Navidec, on the one hand, or BPZ, on the other hand, upon 30 days'
written notice to the other, if the non-terminating party is in material breach
of this Agreement and does not cure such breach within such 30 days of receiving
detailed written notice thereof, provided that the party seeking to terminate is
not in material breach or default of this Agreement. In the event of such
termination and abandonment, neither Navidec nor BPZ (or any of their respective
directors or officers) shall have any liability or further obligations to any
other party to this Agreement, except that nothing herein will relieve any party
from liability for any willful breach of this Agreement.

     9.2 Expenses. Whether or not the transactions contemplated are consummated,
all out-of-pocket costs and expenses incurred in connection with this Agreement
and the transactions contemplated will be paid by the party incurring such
expenses; provided, however, (i) BPZ shall at its sole expense, engage legal
counsel of its choosing to prepare, file and distribute all documents which are
required to be filed under the Exchange Act or Securities Act in connection with
the transactions contemplated hereby, and (ii) Navidec Financial shall incur and
pay all expenses of Navidec in connection with same, including, without
limitation, legal fees incurred in connection with preparing and filing all

                                       21

<PAGE>

documents necessary or advisable to be filed with the SEC and otherwise in
connection with the "spin-off" of Navidec Financial to Navidec shareholders and
distribution expenses of the Transfer Agent.

     9.3 Brokers. No broker or finder is entitled to any brokerage or finder's
fee or other commission or fee from any company or based upon arrangements made
by or on behalf of any party with respect to the transactions contemplated by
this Agreement, except as disclosed on Schedule 9.3 annexed hereto, and the
party so indicated on Schedule 9.3 shall be liable for the payment thereof.

     9.4 Arbitration. Any controversy arising out of, connected to, or relating
to any transactions herein contemplated, or this Agreement, or the breach
thereof, including, but not limited to any claims of violations of Federal
and/or state securities acts, banking statues, consumer protection statutes,
federal and/or state anti-racketeering (e.g. RICO) claims as well as any common
law claims and any state law claims of fraud, negligence, negligent
misrepresentations, and/or conversion and any disputes as to the arbitrability
of any such claim shall be settled by arbitration in City and County of Denver,
State of Colorado and in accordance with the commercial rules of the American
Arbitration Association by three (3) arbitrators appointed in accordance with
such rules. Any judgment on the arbitrator's award may be entered in any court
having jurisdiction thereof. The arbitrators shall hear and determine the matter
and shall execute and acknowledge its award, in writing, and if requested by
either party, shall make findings of fact and conclusions of law. Any award
determined by the arbitrators shall be final and binding on the Parties,
however, in the event of any misconduct, partiality, corruption or the like of
any arbitrator, the Parties shall retain any rights of appeal to which they may
be entitled pursuant to applicable Law. The cost and expense of arbitration,
including the fees of the arbitrator, and the reasonable legal and accounting
fees and expenses of the Parties, shall be divided between the Parties in such
proportion as the arbitrators may determine.

     9.5 Other Actions. Each of the Parties hereto agrees to execute and deliver
such other documents, certificates, agreements and other writings and to take
such other actions as may be necessary or desirable to consummate the
transactions contemplated by this Agreement.

     9.6 Entire Agreement; Waiver and Amendment. This Agreement, the exhibits
and schedules hereto contain the entire agreement by and among Navidec, Merger
Corp. and BPZ with respect to the transactions contemplated hereby. Any and all
prior discussions, negotiations, commitments and understandings relating to the
subject matter of this Agreement are superseded by this Agreement. This
Agreement may not be modified, amended or terminated except by a written
agreement specifically referring to this Agreement signed by all of the Parties
hereto. No waiver of any breach or default hereunder shall be considered valid
unless in writing signed by the party giving such waiver, and no such waiver
shall be deemed a waiver of any subsequent breach or default of the same or
similar nature.

     9.7 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado without regard to its
principles of conflicts of laws.

                                       22

<PAGE>

     9.8 Descriptive Headings. The descriptive headings are for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.

     9.9 Notices. All notices or other communications hereunder shall be in
writing and shall be deemed to have been duly given if delivered personally or
sent by registered or certified mail postage prepaid, addressed as follows:

     If to Navidec:               Navidec, Inc.
                                  6399 S Fiddlers Green Circle Suite #300
                                  Greenwood Village, Colorado 80111

     With a copy to:              Ballard Spahr Andrews & Ingersoll, LLP
                                  1225 17th Street Suite 2300
                                  Denver, Colorado  80202
                                  Attn:  Roger V. Davidson

     If to BPZ:                   BPZ Energy Inc.
                                  Shareholder Representatives
                                  11999 Katy Freeway Suite 560
                                  Houston, Texas  77079

     With a copy to:              BPZ Energy Inc.
                                  3900 West Highway 180
                                  Snyder, Texas 79550
                                  Attn: Gordon Gray

     9.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute but one agreement.

     9.11 Publicity. All public announcements relating to this Agreement or the
transactions contemplated hereby will be made only as may be agreed upon by
Navidec and BPZ or, subject always to Section 5.6, as required by applicable
Law. If public disclosure or notice is required by applicable Law, subject
always to Section 5.6, the disclosing party will use its best efforts to give
the other prior written notice of the disclosure to be made.

     9.12 Gender; Number. The use of a particular pronoun herein shall not be
restrictive as to gender, and the use of the singular or plural shall not be
restrictive as to number, but shall be interpreted in all cases as the context
may require.

     9.13 Schedules. The Schedules attached hereto and/or delivered herewith are
an integral part of this Agreement as if fully re-written herein.

     9.14 Binding Effect. This Agreement will be binding upon and will inure to
the benefit of the Parties and their respective heirs, personal representatives,
successors and permitted assigns. Except as herein provided, no party will have
the right to assign this Agreement, or any of such party's rights hereunder,
without the prior written consent of the other Parties.

                                       23

<PAGE>

                           [Signature page to follow]

                                       24

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
by the duly authorized officers of the Parties hereto as of the date first
hereinabove written.

                                           NAVIDEC, INC.

                                           By: /s/  John R. McKowen
                                               ---------------------------------
                                           Name:    John R. McKowen
                                           Title:   President

                                           NAVIDEC MERGER CORP.

                                           By: /s/  John R. McKowen
                                               ---------------------------------
                                           Name:    John R. McKowen
                                           Title:   President

                                           BPZ ENERGY, INC.

                                           By: /s/  Manuel Pablo Zuniga Pflucker
                                               ---------------------------------
                                           Name:    Manuel Pablo Zuniga Pflucker
                                           Title:   President

                                       25

<PAGE>

                                   Schedule A
                                   ----------

                                BPZ Shareholders

                                                           No. of Navidec Shares
                                       No. of BPZ to            be Received
     Name and Address                  Shares Owned             in Exchange
     ----------------                  ------------             -----------

Thomas Kelly                            5,247,737                5,247,737
Allied Crude Purchasing, Inc.           5,619,173                5,619,173
ENERGY SERVICES DEL PERU S.A.C.           737,410                  737,410
Lothian Bancorp                           500,000                  500,000
Fernando Zuniga-Rivero                  5,004,016                5,004,016
Manuel Pablo Zuniga Pflucker            5,004,016                5,004,016
Blanca Pflucker de Zuniga                 240,158                  240,158
Hugh Hay Roe                              747,679                  747,679
Tomas E. Vargas                         1,777,975                1,777,975
Luis Enrico                               283,022                  283,022
Manuel Zavala                              41,341                   41,341
Moises Silva                               19,275                   19,275
Rafael Zoeger                             170,128                  170,128
Carlos Monges                              34,876                   34,876
John R. (Ron) Roberson                  1,117,231                1,117,231
Matthew Benson                            204,154                  204,154
Frederic J.L. Briens                      170,128                  170,128
Martin Escobar                             12,368                   12,368
Daniel Slavinski                           15,312                   15,312
Jose N. Alvarez                            54,002                   54,002

<PAGE>

                                 Schedule 1.3(a)
                                 ---------------

       Certificate of Incorporation of Merger Corp./Surviving Corporation

<PAGE>

                                 Schedule 1.3(b)
                                 ---------------

                  By-laws of Merger Corp./Surviving Corporation

<PAGE>

                                 Schedule 1.3(c)
                                 ---------------

           Officers and Directors of Surviving Corporation and Navidec

<PAGE>

                                  Schedule 5.5
                                  ------------

         Navidec Shareholders to Execute Leak Out and Voting Agreements

                                 John R. McKowen
                                   Jeff Ploen
                                   Chuck Kirby<PAGE>
Exhibit 10.1

                              EMPLOYMENT AGREEMENT
                                BERNARD J WALTER

         THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of the 1st day of July, 2004 (the "Effective Date"), by and between POWER
TECHNOLOGY, INC., a Nevada corporation ("Employer"), and BERNARD J. WALTER, an
individual residing in Houston, Harris County, Texas ("Executive").

                                   WITNESSETH:

         WHEREAS, Employer and Executive desire to enter into an agreement
regarding Executive's employment with Employer pursuant to the terms and
conditions set forth herein;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound hereby, the parties covenant and agree as follows:

         1. EMPLOYMENT. Employer hereby employs Executive and Executive hereby
accepts employment with Employer on the terms and conditions set forth in this
Agreement.

         2. TERM OF EMPLOYMENT. The term of Executive's employment hereunder
(the "Term") shall commence as of July 1, 2004 (the "Commencement Date") and
shall continue (subject to extension and termination by either Employer or
Executive, all as hereinafter provided) for an initial term (the "Initial Term")
expiring on December 31, 2009 (the "Expiration Date"). The Expiration Date
shall, unless terminated by Employer or Executive, be automatically extended for
successive one (1)-year periods following the expiration of the Initial Term. If
Employer desires to terminate Executive's employment under this Agreement at the
end of the Initial Term or at the end of any succeeding one (1)-year term,
Employer shall give written notice of such desire to Executive at least ninety
(90) days prior to the expiration of the Initial Term or any succeeding one
(1)-year term. If Executive desires to terminate Executive's employment under
this Agreement at the end of the Initial Term or at the end of any succeeding
one (l)-year term, Executive shall give written notice of such desire to
Employer at least ninety (90) days prior to the expiration of the Initial Term
or any succeeding one (1)-year term. At the expiration of the then-existing
term, Employer shall have no further obligation to Executive other than payment
of any earned and unpaid Base Salary (as hereafter defined) under Section 3.a.
and any earned and unpaid Bonus (as hereafter defined) under Section 3.b., and
Executive shall have no further obligation to Employer except as set forth in
Sections 8, 9, 10 and 11.

         3. COMPENSATION AND OTHER BENEFITS.

             a. As compensation for all services rendered by Executive in
performance of Executive's duties or obligations under this Agreement, Employer
shall pay Executive the following base salary (the "Base Salary"):

<PAGE>

         $90,000 per year through December 31, 2004, Increasing to $120,000 per
         year from January 1, 2005 to December 31, 2005, Increasing to $180,000
         per year thereafter plus increases effective January 1 of each
         subsequent year of no less than 5% of Ease Salary or such greater
         amount as set by the Compensation Committee,

Executive's Base Salary shall be payable in equal semi-monthly installments or
in the manner and on the timetable which Employer's payroll is customarily
handled or at such intervals as Employer and Executive may hereafter agree to
from time to time.

             b. In addition to receiving the Base Salary provided for in Section
3.a., (i) for the annual periods commencing January 1, 2005, Executive shall be
entitled to a restricted stock grant of 7,500,000 shares of the Employer's
common stock. This stock subject to this grant shall be non dilutive and shall
not be subject to any reverse stock split. In the event of a reverse stock
split, or in the event of the issuance of any additional shares of Employer's
common stock to any person, Employer shall grant to Executive such additional
number of shares necessary to bring Executive's ownership of outstanding issued
shares of Employer to 7.5% of Employer's authorized shares, Executive shall be
entitled to benefit from any forward stock split. These shares granted to
Executive shall not be sold for a period of three years from the effective date
of this Employment agreement without the written permission of the Board of
Directors of Employer,

             c. Additionally, a bonus of up to one hundred percent (100%) of
Executive's Base Salary paid during such one (1) year period, and (ii) for each
six (6) month period commencing through the Expiration Date, Executive shall be
entitled to a bonus of up to one hundred percent (100%) of Executive's Base
Salary during such six (6) month period (in each case, such bonus being referred
to herein as the "Bonus"); provided, however, Executive shall be entitled to
such Bonus if, and only if, Executive has met the performance criteria set by
the Compensation Committee of the Board of Directors of Employer (the
"Compensation Committee") for the applicable period. Executive acknowledges that
the performance criteria for Executive's Bonus to be earned for each six (6)
month period after December 31, 2004, shall be set on or before the beginning of
each applicable bonus period, and Executive shall have the opportunity to meet
with and discuss such criteria with the Compensation Committee prior to the
finalization of such criteria. Upon completion of the criteria for the
applicable period, such criteria shall be communicated to Executive in writing,
If Executive successfully meets the performance criteria established by Employer
(in the reasonable discretion of Employer), Employer shall pay Executive the
earned Bonus amount within thirty (30) days after the end of such applicable
period.

             d. Executive shall be entitled to be reimbursed by Employer for all
reasonable and necessary expenses incurred by Executive in carrying out
Executive's duties under this Agreement in accordance with Employer's standard
policies regarding such reimbursements.

             e. Beginning with the Commencement Date, Executive shall be
entitled during the Term, upon satisfaction of all eligibility requirements, if
any, to participate in all health, dental, disability, life insurance and other
benefit programs now or hereafter established by Employer which cover
substantially all other of Employer's employees and shall receive such other
benefits as may be approved from time to time by Employer.

<PAGE>

             f. During each twelve (12) month period of this Agreement,
Executive shall be entitled to two (2) weeks of paid vacation, increasing to
three (3) weeks after five years of service. In addition, Executive shall be
entitled to receive paid holidays as enjoyed by all other employees of Employer.

             g. Executive shall be entitled to a monthly automobile allowance of
$1,000.

             h. Upon the request of Executive, the Employer shall (i) obtain and
..maintain, during the Term hereof, officers and directors liability insurance
covering Executive in the amount of $5,000,000 containing customary terms and
conditions; and (ii) to the extent permitted under Employer's articles of
incorporation and/or bylaws, indemnify and hold harmless the Executive from and
against all costs (including attorneys fees and costs of suit), losses,
liabilities or cause of action arising out of or relating to his services as
Vice Chairman, Chief Executive Officer, president and director of the Employer.

         4. DUTIES.

             a. Executive is employed to act as Chief Executive Officer and
President of Employer, and to perform the duties and functions that are normal
and customary to such position.

             b. Executive agrees that during the period of employment, Executive
shall devote full-time efforts to Executive's duties as an employee of Employer
and Executive shall use Executive's best efforts to perform the duties of
Executive's position in an efficient and competent manner and shall use
Executive's best efforts to promote the interests of Employer and any affiliated
companies.

             c. During the period of employment, Executive agrees not to (i)
solely or jointly with others undertake or join any planning for or organization
of any business activity competitive with the business activities of Employer,
and (ii) directly or indirectly, engage or participate in any other activities
in conflict with the best interests of Employer.

             d. Executive agrees that during the period of employment Executive
shall refer to Employer all opportunities to which Executive might become
exposed in carrying out Executive's duties and responsibilities hereunder that
relate to the Employer's business.

         6. TERMINATION OF EMPLOYMENT. Executive's employment and this Agreement
shall terminate upon the earliest to occur of any of the following events (the
actual date of such termination being referred to herein, as the "Termination
Date"):

             a. The expiration of the Agreement pursuant to Section 2.

             b. Employer may terminate Executive's employment and this Agreement
for Cause (as defined below), provided, however, that Employer may not terminate
Executive's employment for Cause unless:

<PAGE>

                  (1) No fewer than sixty (60) days prior to the date of
         termination (the actual date of such termination being referred to
         herein as "Date of Termination"), the Employer provides Executive with
         written notice (the "Notice of Consideration") of Employer's intent to
         consider termination of Executive's employment for Cause, which notice
         shall include a detailed description of the specific reasons which form
         the basis for such consideration, and shall specify a date and time for
         Executive to appear before the Company's Board of Directors to present
         arguments and evidence on Executive's own behalf with respect to the
         reasons for consideration identified in the Notice of Consideration
         (which date shall not be less than thirty (30) days after the date the
         Notice of Consideration is provided by Employer to Executive) (the
         "Consideration Date");

                  (2) Executive shall have the opportunity to appear before the
         Company's Board of Directors on the Consideration Date, with or without
         legal representation, at Executive's election, to present such
         arguments and evidence on Executive's own behalf with respect to such
         reasons for consideration; and

                  (3) Following the presentation to the Company's Board of
         Directors as provided in Section 6.b.(2) above or Executive's failure
         to appear before the Board of Directors on the Consideration Date,
         Executive may be terminated for Cause only if (x) the Company's Board
         of Directors, by the affirmative vote of two-thirds (2/3) of the
         members of a quorum of the Board of Directors present at such meeting
         (excluding Executive if Executive is they a member of the Board of
         Directors, and any other member of the Board of Directors reasonably
         believed by the Hoard of Directors to be involved in the events leading
         the Board of Directors to terminate Executive for Cause), determines
         that the actions or inactions of Executive specified in the Notice of
         Termination occurred, that such actions or inactions constitute Cause;
         and (y) the Company's Board of Directors provides Executive with a
         written determination (a "Notice of Termination for Cause") setting
         forth in specific detail the basis of such Termination of Employment,
         which Notice of Termination for Cause shall be consistent with the
         reasons set forth in the Notice of Consideration. Unless the Employer
         establishes both (i) its full compliance with the substantive and
         procedural requirements of this Section 6.b. prior to a termination of
         employment for Cause, and (ii) that Executive's action or inaction
         specified in the Notice of Termination for Cause did occur and
         constituted Cause, any termination of employment shall be deemed a
         termination by Employer without Cause for all purposes of this
         Agreement.

                  (4) After providing a Notice of Consideration pursuant to the
         provisions of Section 6.b.(1), the Employer's Board of Directors may,
         by the affirmative vote of two-thirds (2/3) of the members of a quorum
         of the Board of Directors present at such meeting (excluding for this
         purpose Executive if he is a member of the Board of Directors, and any
         other member of the Board of Directors reasonably believed by the Board
         of Directors to be involved in the

<PAGE>

         events issuing the Notice of Consideration), suspend Executive with pay
         until a final determination pursuant to this Section 6.b. has been
         made.

                  (5) After receiving a Notice of Consideration pursuant to the
         provisions of Section 6.b,(1), Executive may terminate this Agreement
         without Good Reason with thirty (30) days prior written notice.

                  (6) If Executive's employment is terminated under this Section
         6.b., Executive shall be entitled to receive accrued but unpaid
         compensation set forth in Section 3,a, and Section 3.b. hereof through
         the Termination Date and those benefits under Section 34, which are
         required under the Employee Income Retirement Security Act of 1974, as
         amended ("ERISA"), or other applicable laws.

             c. In the event of Executive's death or disability of a permanent
nature rendering the Executive unable to perform Executive's duties hereunder
for a period of not less than ninety (90) days during any one hundred eighty
(180) consecutive day period during the Term hereof, Employer shall pay to the
Executive or the estate of the Executive, as applicable, in the year of death or
disability, compensation which would otherwise be payable to the Executive
pursuant to Section 3 hereof up to (i) the end of the one hundred eighty (180)
day period following death, or (ii) the expiration of the one hundred eighty
(180) day period referred to above during which time the Executive was unable to
perform Executive's duties hereunder to the extent described above.

                  (1) The Term of employment shall end upon the Executive's
         death or the expiration of such one hundred eighty (180) day period and
         a determination by the Employer's Board of Directors of Employer that
         there is no reasonable accommodation (within the meaning of the
         Americans with Disabilities Act) which would enable Executive to
         perform the essential functions of Executive's position under this
         Agreement despite the existence of such disability.

                  (2) For purposes of this Agreement, Executive shall be deemed
         to be unable to perform Executive's duties hereunder when the Board of
         Directors of Employer, upon the advice of a qualified physician
         mutually agreeable to the Executive (or, if appropriate, Executive's
         representative) and the Board of Directors of Employer, shall have
         determined that Executive has become physically or mentally incapable
         (excluding infrequent and temporary absences due to ordinary illness)
         of performing Executive's duties under this Agreement.

                  (3) Before making any termination decision pursuant to this
         Section 6,c., the Board of Directors of Employer shall determine
         whether there is any reasonable accommodation (within the meaning of
         the Americans with Disabilities Act) which would enable Executive to
         perform the essential functions of Executive's position under this
         Agreement despite the existence of any such disability. If such a
         reasonable accommodation is possible, Employer shall make

<PAGE>

         that accommodation and shall not terminate Executive's employment
         hereunder based on such disability.

             d. The Employer may terminate the Executive's employment without
Cause with thirty (30) days prior written notice and the Executive may terminate
Executive's employment for Good Reason (as hereinafter defined) with thirty (30)
days prior written notice. in either event, the Employer shall;

                  (2) Pay the Executive the lesser of one full year of Base
         Salary, or, all accrued but unpaid, as of the Termination Date,
         compensation under Section 3.a. and Section 3.b, plus all base salary
         and car allowance due for the remainder of the contract.

                  (3) Pay for Executive's COBRA benefits for the lesser of the
         Severance Term or the maximum period in which Executive is eligible to
         receive COBRA; however, in no event shall Employer be required to pay
         in excess of $1500 per month toward such COBRA benefits.

                  (4) If Executive is terminated without Cause or for GOOD
         REASON and a Change in Control occurs as described in Section 14 within
         six (6) months after the termination date, the benefits under Section
         14 shall apply.

             e. As used in this Agreement, "CAUSE" shall mean:

                  (1) Any embezzlement or wrongful diversion of funds of
         Employer or any affiliate of Employer by Executive;

                  (2) Gross malfeasance by Executive in the conduct of
         Executive's duties;

                  (3) Material breach of this Agreement and the failure to cure
         such breach; or

                  (4) Gross neglect by Executive in carrying out Executive's
         duties.

             f. As used in this Agreement, "GOOD REASON" shall mean:

                  (1) The failure of Executive to be elected or reelected or to
         be appointed or reappointed, without cause, to the Board of Directors
         of the Employer, to the position of Chairman of the Board of Directors,
         and to the offices of Chief Executive Officer and President of the
         Employer;

                  (2) A material change by the Employer of the Executive's
         function, duties or responsibilities that would cause the Executive's
         position with the Employer to become of less dignity, responsibility,
         importance or scope from the position and attributes thereof described
         in Section 4.a.; or

<PAGE>

                  (3) Any other material breach of this Agreement by the
         Employer that remains uncured for a period of at least thirty (30) days
         following written notice from Executive to Employee of such alleged
         breach, which written notice describes in reasonable detail the nature
         of such alleged breach.

         7. INVENTIONS AND CREATIONS BELONG TO EMPLOYER.

             a. Any and all inventions, discoveries, improvements or creations
(collectively, "Creations") which Executive has conceived or made or may
conceive or make during the period of employment in any way, directly or
indirectly, connected with Employer's Business shall be the sole and exclusive
property of Employer, Executive agrees that all copyrightable works created by
Executive or under Employer's direction in connection with Employer's Business
are "works made for hire" and shall be the sole and complete property of
Employer and that any and all copyrights to such works shall belong to Employer.
To the extent any of the works described in the preceding sentence are not
deemed to be "works made for hire," Executive hereby assigns all proprietary
rights, including copyright, in these works to Employer without further
compensation.

             b. Executive further agrees to (i) disclose promptly to Employer
all such Creations which Executive has made or may make solely, jointly or
commonly with others during the period of employment to the extent connected
with Employer's Business, (ii) assign all such Creations to Employer, and (iii)
execute and sign any and all applications, assignments or other instruments
which Employer may deem necessary in order to enable Employer, at Employer's
expense, to apply for, prosecute and obtain copyrights, patents or other
proprietary rights in the United States and foreign countries or in order to
transfer to Employer all right, title and interest in said Creations.

         8. CONFIDENTIALITY; OWNERSHIP OF INFORMATION. Employer promises that
Employer will, during the Term, provide Executive with access to such
Confidential Information (as defined in Section 9.a.) owned by Employer and that
is used in the operation of Employer's Business as reasonably necessary to allow
Executive to perform Executive's obligations hereunder, Executive acknowledges
that Employer has agreed to provide Executive with a definite term of employment
and with access to such Confidential Information of Employer during that term of
employment.

             a. DEFINITION. For purposes of this Agreement, "Confidential
Information" means any and all information relating directly or indirectly to
Employer that is not generally ascertainable from public or published
information or trade sources and that represents proprietary information to
Employer, excluding, however, (i) Executives' business contacts, (ii)
information already known to Executive prior to Executive's employment with
Employer, and (iii) information required to be divulged in any legal or
administrative proceeding in which Executive is involved. Confidential
Information shall consist of, for example, and not intending to be inclusive,
(A) software (source and object codes), algorithms, computer processing systems,
techniques, methodologies, formulae, processes, compilations of information,
drawings, proposals, job notes, reports, records and specifications, and (B)
information concerning any matters relating to Employer's Business, any of its
customers, prospective customers, customer contacts, licenses, the

<PAGE>

prices it obtains or has obtained for the licensing of its software products and
services, or any other information concerning Employer's Business and Employer's
goodwill.

             b. NO DISCLOSURE. During the Term and at all times thereafter,
Executive shall not disclose or use in any manner, directly or indirectly, and
shall use Executive's best efforts and shall take all reasonable precautions to
prevent the disclosure of, any such trade secrets or other Confidential
Information, except to the extent required in the performance of Executive's
duties or obligations to Employer hereunder or by express prior written consent
of a duly authorized officer or director of Employer (other than Executive).

             c. OWNERSHIP OF INFORMATION. Such Confidential Information is and
shall remain the sole and exclusive property and proprietary information of
Employer or Employer's customers, as the case may be, and is disclosed in
confidence by Employer or permitted to be acquired from such customers in
reliance on Executive's agreement to maintain such Confidential Information in
confidence and not to use or disclose such Confidential Information to any other
person except in furtherance of Employer's Business.

             d. RETURN OF MATERIAL. Upon the expiration or earlier termination
of this Agreement for any reason, Executive shall immediately turn over to
Employer all documents, disks or other magnetic media, or other material in
Executive's possession or under Executive's control that (i) may contain or be
derived from Creations or Confidential Information, or (ii) are connected with
or derived from Executive's services to Employer. Executive shall not retain any
Confidential Information in any form (e,g., computer hard drive, microfilm,
etc.) upon the expiration or earlier termination of this Agreement,

         10. NONCOMPETE; WORKING FOR COMPETITOR. In consideration of Executive's
employment by Employer, Executive will not, at any time during the Term or, if
Executive's employment is terminated pursuant to the provisions of Section 6
(other than Section 6.a.), at any time during the Severance Term, directly or
indirectly, within the United States, for Executive's own account or on behalf
of any direct competitors of Employer, engage in any business or transaction the
same or similar to Employer's Business (whether as an employee, employer,
independent contractor, consultant, agent, principal, partner, stockholder,
corporate officer, director or in any other individual or representative
capacity), without the prior written consent of Employer, which consent may be
withheld by Employer in Employer's sole and absolute discretion.

         11. NON-SOLICITATION OF EMPLOYEES. During the Term and for a period of
twenty-four (24) months after the date of termination of employment, Executive
will not in any way, directly or indirectly (i) induce or attempt to induce any
employee of Employer to quit employment with Employer; (ii) otherwise. interfere
with or disrupt Employer's relationship with its employees; (iii) solicit,
entice or hire away any employee of Employer; or (iv) hire or engage any
employee of Employer or any former employee of Employer whose employment with
Employer ceased less than one year before the date of such firing or engagement.
Executive acknowledges that any attempt on the part of Executive to induce
others to leave Employer's employ, or any effort by Executive to interfere with
Employer's relationship with its other employees would be harmful and damaging
to Employer.

<PAGE>

         12. REMEDIES; INJUNCTION. In the event of a breach or threatened breach
by Executive of any of the provisions of this Agreement, Executive agrees that
Employer, in addition to and not in limitation of any other rights, remedies or
damages available to Employer at law or in equity, shall be entitled to a
permanent injunction without the necessity of proving actual monetary loss in
order to prevent or restrain any such breach by Executive or by Executive's
partners, agents, representatives, servants, employees and/or any and all
persons directly or indirectly acting for or with Executive. It is expressly
understood between the parties that this injunctive or other equitable relief
shall not be Employer's exclusive remedy for any breach of this Agreement, and
Employer shall be entitled to seek any other relief or remedy which it may have
by contract, statute, law or otherwise for any breach hereof.

         13. CHANGE IN CONTROL. A "Change in Control" shall be deemed to have
occurred if (i) in the context of a single event or series of related events
following the effective date of this Employment Agreement, more than 50% of the
Employer's outstanding securities entitled to vote in elections of directors
shall be acquired by any person (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) other than by any
person which includes (A) Executive, or (13) any shareholders of the Employer
who own at least ten percent (10%) of Employer's outstanding securities as of
the Effective Date hereof, or (ii) as the result of a tender offer, merger,
consolidation or sale of assets, or any combination of such transactions, the
persons who were directors of Employer immediately before the transaction shall
cease to constitute a majority of the Board of Directors of Employer or any
successor to Employer. In the event of a Change in Control and any Change in
Control Qualifying Event (as herein defined) shall occur, Executive shall be
permitted to terminate his employment within six (f) months of such Change in
Control Qualifying Event and notwithstanding such termination, Executive shall
be entitled to receive his Base Salary for the remaining Term of this Agreement.
In addition, any options granted to Executive in accordance with Section 5 shall
immediately vest as of such termination date; however, Executive shall not be
eligible to receive the Bonus for any quarter beyond the quarter in which
Executive's employment is terminated. For purposes hereof, a Change in Control
Qualifying Event shall include (i) a significant diminution, without mutual
agreement of the parties, in the nature and scope of Executive's authority,
power, functions or duties, (ii) Employer assigns to Executive, without mutual
agreement of the parties, substantial additional duties or responsibilities
which are inconsistent with the duties of Executive under this Agreement, or
(iii) Employer transfers Executive from the principal office of the Employer.

         14. ARBITRATION. The parties agree that all disputes or questions
arising in connection with this Agreement and/or the termination of Executive's
employment hereunder shall be settled by a single arbitrator pursuant to the
rules of the American Arbitration Association in the City of Houston, Texas, and
the award of the arbitrators shall be final, non-appealable, conclusive and
enforceable in a court of competent jurisdiction; PROVIDED, HOWEVER,
notwithstanding the foregoing, in no event shall any dispute, claim or
disagreement arising under Sections 7, 8, 9, 10 and 11 of this Agreement that
requires injunctive or other equitable relief be required to be submitted to
arbitration pursuant to this provision or otherwise.

         16. EXPENSES. The Employer shall promptly pay or reimburse Executive
for all costs and expenses, including, without limitation, court costs and
attorneys' fees, incurred by Executive as a result of any claim, action or
proceeding (including, without limitation, a claim,

<PAGE>

action or proceeding by Executive against the Employer) arising out of, or
challenging the validity or enforceability of, this Agreement or any provision
hereof.

         17. NOTICES. Any notice, demand or request which may be permitted,
required or desired to be given in connection therewith shall be given in
writing and directed to Employer and Executive as follows:

         If to Employer, at:
                                      1770 St. James Place, Suite 116
                                      Houston, Texas 77056
                                      Attention: Chairman of the Board
                                      Facsimile No., (713) 586-6678

         or, if to Executive, at:     Mr. Bernard J. Walter
                                      1770 St. James Place, Suite 116
                                      Houston, Texas 77056
                                      batteryman@sboglobal.net

Notices shall be deemed properly delivered and received when and if either: (i)
personally delivered; (ii) delivered by nationally-recognized overnight courier;
(iii) when deposited in the U.S. Mail, by registered or certified mail, return
receipt requested, postage prepaid; (iv) sent via internet e mail with a
confirmation of receipt. Any party may change its notice address for purposes
hereof to any address within the continental United States by giving written
notice of such change to the other parties hereto at least fifteen days prior to
the intended effective date of such change.

         18. SEVERABILITY. If any provision of this Agreement is rendered or
declared illegal or unenforceable by reason of any existing, or subsequently
enacted legislation or by decree of a court of last resort, Employer and
Executive shall promptly meet and negotiate substitute provisions for those
rendered or declared illegal or unenforceable, but all the remaining provisions
of this Agreement shall remain in full force and effect.

         19. ASSIGNMENT. This Agreement may not be assigned by any party without
the prior written consent of the other parties.

         20. BINDING AGREEMENT. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto, and their respective legal
representatives, heirs, successors and permitted assigns.

         21. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada.

         22. AGREEMENT READ, UNDERSTOOD AND FAIR. Executive and Employer have
carefully read and considered all provisions of this Agreement and agree that
all of the restrictions

<PAGE>

set forth are fair and reasonable and are reasonably required for the protection
of their respective interests.

         23. SUBJECT TO BOARD AND SHAREHOLDER APPROVAL. This Agreement is
subject to approval of the Board of Directors of Employer. In connection
therewith, Employer agrees to submit a unanimous written consent of the Board of
Directors approving such agreement on or before July 1, 2004, and to advise
Executive promptly following such meeting as to whether this Agreement was
approved. In the event this Agreement is not approved on or before such date,
this Agreement shall be void and of no further force or effect. The parties
agree that this Agreement shall be of no force and effect unless and until it
has been approved by the Board and executed by both parties.

                     [REST OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement on the I"
day of July, 2004, effective as of the Effective Date.

                                             EMPLOYER:
                                             ---------

                                             Power Technologies, Inc., INC.

                                             By: /s/ Hugo Promrehn
                                                 -------------------------------
                                                 Director

                                             EXECUTIVE:
                                             ----------

                                             /s/ Bernard J. Walter
                                             -----------------------------------
                                             Bernard J. Walter
                                             July 6, 2004

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