Document:

EXHIBIT 4.2

The  securities  represented  by this Warrant and issuable upon exercise  hereof
have not been  registered  under the  Securities  Act of 1933,  as amended  (the
"Act"),  or under the provisions of any applicable  state  securities  laws, but
have been  acquired by the  registered  holder hereof for purposes of investment
and in reliance on statutory  exemptions under the Act, and under any applicable
state securities laws. These securities and the securities  issued upon exercise
hereof may not be sold, pledged,  transferred or assigned,  nor may this Warrant
be exercised,  except in a transaction  which is exempt under the  provisions of
the Act and any  applicable  state  securities  laws or pursuant to an effective
registration statement.

                          COMMON STOCK PURCHASE WARRANT
                          -----------------------------

Date of Issuance: July 6, 2005                              Certificate No. W-1

     For  value  received,   Navidec  Financial   Services,   Inc.,  a  Colorado
corporation  (the  "Company"),  hereby  grants to The  Elevation  Fund,  LLC,  a
Delaware  limited  liability  company or its permitted  transferees  and assigns
("Elevation"),  the right to purchase from the Company a total of 100,000 shares
of the Company's common stock, par value $0.001 per share ("Common Stock"), at a
price per share of equal to $1.00 per share (the "Initial Exercise Price").  The
exercise  price and number of Warrant  Shares  (and the amount and kind of other
securities) for which this Warrant is exercisable shall be subject to adjustment
as provided in Section 2 hereof. This Warrant is being issued in connection with
the Loan Agreement  between Elevation and the Company of even date herewith (the
"Loan Agreement").  Certain capitalized terms used herein are defined in Section
4 hereof.

     This Warrant is subject to the following provisions:

     SECTION 1. Exercise of Warrant.
                -------------------

     (a)  Terms of  Warrants;  Exercise  Period.  Subject  to the  terms of this
Agreement,  the Registered  Holder shall have the right,  commencing on the date
hereof and expiring on the five year anniversary hereof (the "Expiration Date"),
to exercise this Warrant,  in whole or in part, and receive from the Company the
number of Warrant Shares which the Registered Holder may at the time be entitled
to receive on exercise of this Warrant and payment of the Exercise Price then in
effect  for the  Warrant  Shares.  To the  extent  not  exercised  prior  to the
Expiration  Date,  this Warrant shall become void and all rights  thereunder and
all rights in respect thereof under this Agreement shall cease as of such time.

     (b) Exercise Procedure.

          (i) This  Warrant  shall be deemed to have been  exercised on the date
     specified  in a written  notice from the  Registered  Holder to the Company
     (the "Exercise Time") and within three business days following the Exercise
     Time, the Registered Holder shall deliver the following to the Company:

<PAGE>

               (A) a completed Exercise Agreement,  as described in Section 1(c)
          below;

               (B) this Warrant;

               (C)  if  this  Warrant  is not  registered  in  the  name  of the
          Registered  Holder, an Assignment or Assignments in the form set forth
          in Exhibit II hereto  evidencing the assignment of this Warrant to the
          Registered  Holder,  in which case the  Registered  Holder  shall have
          complied with the provisions set forth in Section 6 hereof; and

               (D) a check  payable  to the  Company  in an amount  equal to the
          product of the  Exercise  Price (as such term is defined in Section 2)
          multiplied by the number of Warrant  Shares being  purchased upon such
          exercise (the "Aggregate Exercise Price").

          (ii)  Certificates  for Warrant Shares purchased upon exercise of this
     Warrant shall be delivered by the Company to the  Registered  Holder within
     five business days after the date of the Exercise Time. Unless this Warrant
     has  expired or all of the  purchase  rights  represented  hereby have been
     exercised, the Company shall prepare a new Warrant, substantially identical
     hereto,  representing the rights formerly  represented by this Warrant that
     have not expired or been exercised and shall,  within such five day period,
     deliver  such new  Warrant to the Person  designated  for  delivery  in the
     Exercise Agreement.

          (iii) The Warrant  Shares  issuable  upon the exercise of this Warrant
     shall be  deemed  to have  been  issued  to the  Registered  Holder  at the
     Exercise Time,  and the Registered  Holder shall be deemed for all purposes
     to have become the record  holder of such  Warrant  Shares at the  Exercise
     Time.

          (iv) The Company  shall not close its books  against  the  transfer of
     this Warrant or of any Warrant  Shares issued or issuable upon the exercise
     of this Warrant in any manner which  interferes with the timely exercise of
     this Warrant.

          (v) The Company shall assist and cooperate with the Registered  Holder
     or any  Registered  Holder  required  to make any  governmental  filings or
     obtain  any  governmental  approvals  prior  to or in  connection  with any
     exercise of this Warrant.

          (vi) The Company shall at all times reserve and keep  available out of
     its  authorized  but  unissued  capital  stock,  solely for the  purpose of
     issuance upon the exercise of this Warrant,  the maximum  number of Warrant
     Shares issuable upon the exercise of this Warrant. All Warrant Shares which
     are so issuable  shall,  when  issued and upon the payment of the  Exercise
     Price therefor,  be duly and validly issued,  fully paid and  nonassessable
     and free from all taxes, liens

                                       2

<PAGE>

     and charges. The Company shall take all such actions as may be necessary to
     assure that all such Warrant Shares may be so issued  without  violation by
     the  Company  of any  applicable  law  or  governmental  regulation  or any
     requirements of any domestic  securities  exchange upon which securities of
     the Company may be listed  (except for  official  notice of issuance  which
     shall be immediately delivered by the Company upon each such issuance).

     (c) Exercise Agreement.  Upon any exercise of this Warrant,  the Registered
Holder  shall  deliver an Exercise  Agreement in the form set forth in Exhibit I
hereto,  except that if the  Warrant  Shares are not to be issued in the name of
the Person in whose name this  Warrant is  registered,  the  Exercise  Agreement
shall also state the name of the Person to whom the certificates for the Warrant
Shares are to be issued,  and if the number of Warrant  Shares to be issued does
not include all the Warrant Shares  purchasable  hereunder,  it shall also state
the name of the Person to whom a new Warrant for the unexercised  portion of the
rights  hereunder is to be issued.  Such Exercise  Agreement  shall be dated the
actual date of execution thereof.

     SECTION 2.  Adjustment of Exercise Price and Number of Shares.  In order to
prevent dilution of the rights granted under this Warrant,  the Initial Exercise
Price  shall be  subject to  adjustment  from time to time as  provided  in this
Section  2 (such  price or such  price as last  adjusted  pursuant  to the terms
hereof,  as the case may be, is herein  called the  "Exercise  Price"),  and the
number of Warrant  Shares  obtainable  upon  exercise of this  Warrant  shall be
subject to adjustment from time to time as provided in this Section 2.

     (a)  Reorganization,  Reclassification,  Consolidation,  Merger or Sale. In
case of any reclassification,  capital  reorganization,  consolidation,  merger,
sale of all or  substantially  all of the Company's  assets to another Person or
any other change in the Common Stock of the Company, other than as a result of a
subdivision,  combination,  or stock dividend provided for in Section 2(b) below
(any of which,  a "Change  Event"),  then,  as a condition of such Change Event,
lawful provision shall be made, and duly executed documents  evidencing the same
from the Company or its successor  shall be delivered to the Registered  Holder,
so that the  Registered  Holder  shall  have the right at any time  prior to the
expiration  of this Warrant to purchase,  at a total price equal to that payable
upon the exercise of this Warrant  (subject to adjustment of the Exercise  Price
as  provided  in  Section  2),  the kind and amount of shares of stock and other
securities  and property  receivable in  connection  with such Change Event by a
holder of the same number of shares of Common Stock as were  purchasable  by the
Registered  Holder  immediately  prior to such  Change  Event.  In any such case
appropriate  provisions shall be made with respect to the rights and interest of
the  Registered  Holder  so that  the  provisions  hereof  shall  thereafter  be
applicable with respect to any shares of stock or other  securities and property
deliverable upon exercise hereof,  and appropriate  adjustments shall be made to
the purchase price per share payable hereunder,  provided the aggregate purchase
price shall remain the same.

                                       3
<PAGE>

     (b) Subdivisions, Combinations and Other Issuances. If the Company shall at
any time prior to the expiration of this Warrant (i) subdivide its Common Stock,
by split-up or otherwise,  or combine its Common Stock, or (ii) issue additional
shares of its Common Stock or other equity securities as a dividend with respect
to any shares of its Common Stock, the number of shares of Common Stock issuable
on the exercise of this Warrant shall forthwith be proportionately  increased in
the case of a subdivision or stock, or proportionately  decreased in the case of
a combination.  Appropriate adjustments shall also be made to the purchase price
payable per share, but the aggregate purchase price payable for the total number
of Warrant Shares  purchasable under this Warrant (as adjusted) shall remain the
same. Any adjustment under this Section 2(b) shall become effective at the close
of business on the date the subdivision or combination becomes effective,  or as
of the record  date of such  dividend,  or in the event  that no record  date is
fixed, upon the making of such dividend.

     (c)  Issuance  of New  Warrant.  Upon the  occurrence  of any of the events
listed in this Section 2 that results in an  adjustment  of the type,  number or
exercise price of the securities  underlying this Warrant, the Registered Holder
shall have the right to receive a new warrant  reflecting  such  adjustment upon
the Registered Holder tendering this Warrant in exchange.  The new warrant shall
otherwise have terms identical to this Warrant.

     (d) Notices.

          (i) The Company shall give written notice to the Registered  Holder of
     this Warrant at least 10 days prior to the date on which the Company closes
     its books or takes a record for determining  rights to vote with respect to
     any event described in this Section 2 or any dissolution or liquidation.

          (ii) The  Company  shall also give  written  notice to the  Registered
     Holder  of this  Warrant  at least 10 days  prior to the date on which  any
     event described in this Section 2 or any  dissolution or liquidation  shall
     take place.

     SECTION 3. Registration Rights.

     (a) Piggyback Registration.

          (i) If, at any time  commencing on the date hereof and expiring on the
     Expiration  Date, the Company  prepares and files a Registration  Statement
     under the Act or otherwise registers  securities under the Act as to any of
     its securities (other than under a Registration  Statement pursuant to Form
     S-8 or Form S-4) (each such filing,  a  "Registration  Document"),  it will
     give  written  notice by  registered  mail,  at least 20 days  prior to the
     filing of such  Registration  Document  to the  Registered  Holders  of the
     Registrable  Securities of its intention to do so; provided,  however, that
     the Company is not required to include any  Registrable  Securities  in the
     registration statement on Form SB-2

                                       4

<PAGE>

     filed by the  Company on June 21,  2005.  The  Company  shall  include  all
     Registrable Securities in such Registration Documents with respect to which
     the Company has received written  requests for inclusion  therein within 10
     days of actual receipt of the Company's notice.

          (ii) Subject to the Loan  Agreement,  the Company shall have the right
     at any time after it shall  have  given  written  notice  pursuant  to this
     Section 3(a)  (irrespective  of whether a written  request for inclusion of
     any Registration  Securities shall have been made) to elect not to file any
     such  Registration  Document,  or to withdraw the same after the filing but
     prior to the effective date thereof.

     (b)  Covenants of the Company with Respect to  Registration.  In connection
with the  filing  of any  Registration  Document  by the  Company,  the  Company
covenants and agrees as follows:

          (i) The Company  shall use its best  efforts to have any  registration
     statement declared effective at the earliest  practicable time. The Company
     will promptly notify each Registered Holder of such Registrable  Securities
     and confirm such advice in writing,  (i) when such  registration  statement
     becomes  effective,   (ii)  when  any  post-effective   amendment  to  such
     registration  statement  becomes  effective and (iii) of any request by the
     SEC for any amendment or supplement to such  registration  statement or any
     prospectus relating thereto or for additional information.

          (ii) The  Company  shall  furnish  to each  Registered  Holder of such
     Registrable Securities such number of copies of such registration statement
     and of each such amendment and  supplement  thereto (in each case including
     each preliminary  prospectus and summary prospectus) in conformity with the
     requirements of the Act, and such other documents as the Registered Holders
     may  reasonably  request  in order to  facilitate  the  disposition  of the
     Registrable Securities by such Registered Holders.

          (iii) If the  Company  shall  fail to comply  with the  provisions  of
     Sections  3(a) and  3(b),  the  Company  shall,  in  addition  to any other
     equitable or other relief available to the Registered Holder(s),  be liable
     for  any  or  all  special  and  consequential  damages  sustained  by  the
     Registered   Holder(s)   requesting   registration  of  their   Registrable
     Securities.

          (iv) The Company shall  prepare and file with the SEC such  amendments
     and supplements to such  registration  statement and the prospectus used in
     connection   therewith  as  may  be  reasonably   necessary  to  keep  such
     registration  statement  effective  for at least 12 months (or such  longer
     period as permitted by the Act),  and to comply with the  provisions of the
     Act with  respect  to the  disposition  of all  securities  covered by such
     registration  statement  during such period in accordance with the intended
     methods of disposition by the  Registered  Holder or Registered  Holders of
     Registrable Securities set forth in such registration  statement. If at any
     time the SEC should  institute or threaten to institute any proceedings for
     the purpose of

                                       5

<PAGE>

     issuing a stop order suspending the  effectiveness of any such registration
     statement,  the Company  will  promptly  notify each  Registered  Holder of
     Registrable  Securities and will use all reasonable  efforts to prevent the
     issuance of any such stop order or to obtain the withdrawal thereof as soon
     as  possible.  The Company will use its good faith  reasonable  efforts and
     take all reasonably necessary action which may be required in qualifying or
     registering the Registrable Securities included in a registration statement
     for offering and sale under the  securities or blue sky laws of such states
     as reasonably are required by the Registered  Holder(s),  provided that the
     Company  shall not be obligated  to execute or file any general  consent to
     service of process or to qualify as a foreign  corporation  to do  business
     under the laws of any such  jurisdiction.  The  Company  shall use its good
     faith reasonable  efforts to cause such Registrable  Securities  covered by
     such registration statement to be registered with or approved by such other
     governmental  agencies  or  authorities  of the United  States or any State
     thereof as may be reasonably  necessary to enable the Registered  Holder(s)
     thereof to consummate the disposition of such Registrable Securities.

          (v) The  Company  shall  indemnify  the  Registered  Holder(s)  of the
     Registrable  Securities to be sold pursuant to any  registration  statement
     and each person,  if any, who controls such  Registered  Holders within the
     meaning  of  Section 15 of the Act or  Section  20(a) of the  Exchange  Act
     against  all loss,  claim,  damage,  expense or  liability  (including  all
     expenses  reasonably  incurred in  investigating,  preparing  or  defending
     against any claim whatsoever) to which any of them may become subject under
     the Act,  the  Exchange Act or  otherwise,  arising from such  registration
     statement.

          (vi)  If  requested  by  the  Company  prior  to  the  filing  of  any
     registration  statement  covering the Registrable  Securities,  each of the
     Registered Holder(s) of the Registrable Securities to be sold pursuant to a
     registration statement,  and their successors and assigns, shall severally,
     and not jointly, indemnify the Company, its officers and directors and each
     person,  if any, who controls the Company  within the meaning of Section 15
     of the Act or Section 20(a) of the Exchange Act,  against all loss,  claim,
     damage or expense or liability  (including all expenses reasonably incurred
     in  investigating,  preparing or defending against any claim whatsoever) to
     which they may become subject under the Act, the Exchange Act or otherwise,
     arising from written  information  furnished by such Registered  Holder, or
     their successors or assigns,  for specific  inclusion in such  registration
     statement,  except that the maximum amount which may be recovered from each
     Registered  Holder pursuant to this paragraph or otherwise shall be limited
     to the amount of net proceeds  received by the  Registered  Holder from the
     sale of the Registrable Securities.

          (vii)  Nothing  contained  in this  Agreement  shall be  construed  as
     requiring the Registered  Holder(s) to exercise their Warrants prior to the
     filing of any registration statement or the effectiveness thereof.

          (viii) The Company shall not,  directly or indirectly,  enter into any
     merger,  business  combination  or  consolidation  in which (i) the Company
     shall not be the surviving  corporation  and (ii) the  shareholders  of the
     Company are to

                                       6

<PAGE>

     receive,  in whole or in part,  capital  stock or other  securities  of the
     surviving  corporation,  unless the surviving  corporation  shall, prior to
     such merger,  business  combination or  consolidation,  agree in writing to
     assume the  obligations of the Company under this  Agreement,  and for that
     purpose references hereunder to "Registrable Securities" shall be deemed to
     include the securities  which the  Registered  Holders would be entitled to
     receive in  exchange  for  Registrable  Securities  under any such  merger,
     business  combination  or  consolidation,  provided that to the extent such
     securities  to be received are  convertible  into shares of Common Stock of
     the issuer  thereof,  then any such shares of Common Stock as are issued or
     issuable  upon  conversion  of said  convertible  securities  shall also be
     included within the definition of "Registrable Securities."

          (ix) In the event of an underwritten  registered offering the managing
     underwriter(s)  advise the  Company in writing  that in their  opinion  the
     number  of  Registrable   Securities  exceeds  the  number  of  Registrable
     Securities  which  can be sold  therein  without  adversely  affecting  the
     marketability   of  the   offering,   the  Company  will  include  in  such
     registration the number of Registrable  Securities requested to be included
     which in the opinion of such  underwriter(s)  can be sold without adversely
     affecting the marketability of the offering,  pro rata among the respective
     holders thereof on the basis of the amount of Registrable  Securities owned
     by each such holder.  In the event the number of shares  available  under a
     registration  statement  filed pursuant to Section 3(a) is  insufficient to
     cover 100% of the  Registrable  Securities  required  to be covered by such
     Registration Statement, the Company shall amend the registration statement,
     or file a new registration statement (on the short form available therefor,
     if  applicable),  or  both,  so as to  cover  100%  of the  number  of such
     Registrable Securities as of the trading day immediately preceding the date
     of the filing of such  amendment  or new  registration  statement,  in each
     case, as soon as  practicable.  The Company shall use its  reasonable  best
     efforts to cause such  amendment  or new  registration  statement to become
     effective as soon as practicable following the filing thereof.

          (x)  All  expenses  incident  to  the  Company's   performance  of  or
     compliance  with  this   Agreement,   including   without   limitation  all
     registration  and  filing  fees,  fees  and  expenses  of  compliance  with
     securities  or blue sky laws,  printing  expenses,  messenger  and delivery
     expenses,  and fees and  disbursements  of counsel  for the Company and all
     independent certified public accountants, underwriters (excluding discounts
     and commissions) and other Persons retained by the Company will be borne by
     the  Company.  In no  event  shall  the  Company  be  obligated  to pay any
     discounts or  commissions  with respect to the shares sold by any holder of
     Registrable Securities.

     SECTION 4. Definitions. The following terms have the meanings set forth
below:

     "Act" means the Securities Act of 1933, as amended.

     "Convertible  Securities"  means any  evidence of  indebtedness,  shares or
other securities convertible into or exchangeable for Common Stock.

                                       7
<PAGE>

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Fair  Market  Value"  shall be  determined  on a per Share basis as of the
close of the business day  preceding the date of exercise,  which  determination
shall be made as  follows:  (a) if the  Common  Stock is  listed  on a  national
securities  exchange  or  admitted to  unlisted  trading  privileges  on such an
exchange or quoted on either the National  Market System or the Small Cap Market
of the automated  quotation  service operated by The Nasdaq Stock Market,  Inc.,
the Fair Market Value shall be the last  reported sale price of that security on
such  exchange or system on the day for which the current  market price is to be
determined  or, if no such sale is made on such day,  the average of the highest
closing bid and lowest asked price for such day on such exchange or system;  (b)
if the Common  Stock is not so listed or quoted or admitted to unlisted  trading
privileges,  the Fair Market  Value  shall be the  average of the last  reported
highest bid and lowest asked  prices  quoted on the Nasdaq  Electronic  Bulletin
Board, or, if not so quoted,  then by the National Quotation Bureau, Inc. on the
last  business  day prior to the day for which  the Fair  Market  Value is to be
determined; or (c) if the Common Stock is not so listed or quoted or admitted to
unlisted trading privileges and bid and asked prices are not reported,  the Fair
Market  Value shall be  determined  by the  Company's  Board of Directors in its
reasonable, good faith judgment.

     "Options" means rights,  options, or warrants to subscribe for, purchase or
otherwise acquire either Common Stock or Convertible Securities.

     "Person" means an individual, a limited liability company, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization and a
government or any department or agency thereof.

     "Registered Holders" means,  collectively,  Elevation and each other holder
of a Warrant or Warrant  Shares,  if any,  reflected as such on the books of the
Company.

     "Registrable Securities" means the Warrant Shares.

     "Warrant"  means the right to purchase one or more Warrant Shares  pursuant
to the  terms  of this  Warrant,  as the  same may be  transferred,  divided  or
exchanged pursuant to the terms hereof.

     "Warrant Shares" means shares of the Common Stock issuable upon exercise of
the  Warrant;  provided,  however,  that if  there  is a  change  such  that the
securities  issuable  upon exercise of the Warrant are issued by an entity other
than the Company or there is a change in the class of  securities  so  issuable,
then the term "Warrant  Shares" shall mean shares of the security  issuable upon
exercise  of the Warrant if such  security is issuable in shares,  or shall mean
the equivalent  units in which such security is issuable if such security is not
issuable in shares.

                                       8

<PAGE>

     SECTION 5. No Voting Rights;  Limitations of Liability.  This Warrant shall
not  entitle  the  holder  hereof  to any  voting  rights  or other  rights as a
stockholder of the Company.  No provision  hereof, in the absence of affirmative
action by the Registered  Holder to purchase Warrant Shares,  and no enumeration
herein of the rights or privileges of the  Registered  Holder shall give rise to
any liability of such holder for the Exercise Price of Warrant Shares acquirable
by exercise hereof or as a stockholder of the Company.

     SECTION 6. Warrant  Transferable.  Subject to  compliance  with  applicable
securities  laws and the terms of this  Section 6, this  Warrant  and all rights
hereunder  are  transferable,  in  whole  or in  part,  without  charge  to  the
Registered  Holder  upon  surrender  of this  Warrant  with a properly  executed
Assignment  (in the form of Exhibit II  hereto) at the  principal  office of the
Company.

     SECTION 7. Warrant Exchangeable for Different  Denominations.  This Warrant
is  exchangeable,  upon the  surrender  hereof by the  Registered  Holder at the
principal office of the Company,  for new Warrants of like tenor representing in
the aggregate the purchase rights hereunder, and each of such new Warrants shall
represent such portion of such rights as is designated by the Registered  Holder
at the time of such  surrender.  The  date the  Company  initially  issues  this
Warrant  shall be deemed to be the "Date of Issuance"  hereof  regardless of the
number of times new  certificates  representing  the unexpired  and  unexercised
rights  formerly  represented  by this  Warrant  shall be issued.  All  Warrants
representing  portions  of the rights  hereunder  are  referred to herein as the
"Warrants."

     SECTION 8. Replacement. Upon receipt of evidence reasonably satisfactory to
the Company of the ownership and the loss,  theft,  destruction or mutilation of
any certificate evidencing this Warrant, and in the case of any such loss, theft
or  destruction,  upon  receipt  of  indemnity  reasonably  satisfactory  to the
Company,  or,  in the  case  of any  such  mutilation  upon  surrender  of  such
certificate, the Company shall (at the expense of the Registered Holder) execute
and  deliver  in  lieu of  such  certificate  a new  certificate  of  like  kind
representing  the same rights  represented  by such lost,  stolen,  destroyed or
mutilated  certificate  and dated the date of such lost,  stolen,  destroyed  or
mutilated certificate.

     SECTION 9. Notices. All notices, requests,  deliveries,  consents and other
communications  provided  for herein  shall be in writing and shall be effective
upon  delivery in person,  faxed,  or mailed by  certified or  registered  mail,
return receipt requested, postage pre-paid, addressed as follows:

                                       9
<PAGE>

         If to the Company, to:

                  Navidec Financial Services, inc.
                  6399 S. Fiddler's Green Circle, Suite 300
                  Greenwood Village, CO 80111
                  Attn: Robert D. Grizzle

                  with a copy to:

                  Ballard Sphar Andrews & Ingersoll, LLP
                  1225 17th Street
                  Suite 2300
                  Denver, CO  80202-5596
                  Attn: Roger Davidson
                  Fax: (303) 296-3956

         If to Elevation, to:

                  The Elevation Fund, LLC
                  8400 East Prentice Avenue
                  Penthouse, Suite 1500
                  Greenwood Village, CO 80111
                  Attn:  Lance J. Baller
                  Fax No.:  (303) 265-9382

                  with a copy to:

                  Brownstein Hyatt & Farber, P.C.
                  410 Seventeenth Street, 22nd Floor
                  Denver, CO  80202
                  Attn:  Adam J. Agron
                  Fax No.:  (303) 223-1111

or, in any case, at such other address or addresses as shall have been furnished
in writing to the Company (in the case of a Registered Holder of Warrants) or to
the  Registered  Holders of Warrants (in the case of the Company) in  accordance
with the provisions of this paragraph.

     SECTION 10. Amendment and Waiver.  Except as otherwise provided herein, the
provisions  of the  Warrants  may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the  Company has  obtained  the  written  consent of the  Registered
Holders of Warrants representing a majority of the Warrant Shares obtainable

                                       10
<PAGE>

upon exercise of the then-outstanding Warrants;  provided, however, that no such
action may change the Exercise  Price of the Warrants or the number of shares or
class of capital  stock  obtainable  upon  exercise of each Warrant  without the
written consent of all Registered Holders.

     SECTION 11. Descriptive Headings; Governing Law.

     (a) The  descriptive  headings of the several  Sections of this Warrant are
inserted for convenience only and do not constitute a part of this Warrant.

     (b)  All  issues  and  questions  concerning  the  construction,  validity,
enforcement  and  interpretation  of this  Agreement  shall be governed  by, and
construed in accordance with, the laws of the State of Colorado,  without giving
effect to any choice of law or conflict of law rules or  provisions  (whether of
the  State  of  Colorado  or  any  other  jurisdiction)  that  would  cause  the
application of the laws of any jurisdiction other than the State of Colorado.

     SECTION 12. Warrant  Register.  The Company shall maintain at its principal
executive  office books for the registration and the registration of transfer of
this  Warrant.  The  Company  may deem and  treat the  Registered  Holder as the
absolute  owner  hereof  (notwithstanding  any  notation of  ownership  or other
writing  thereon  made by anyone) for all  purposes and shall not be affected by
any notice to the contrary.

     SECTION  13.  Fractions  of  Shares.  The  Company  may,  but  shall not be
required,  to issue a  fraction  of a Warrant  Share upon the  exercise  of this
Warrant in whole or in part.  As to any  fraction  of a share  which the Company
elects not to issue,  the Company  shall make a cash  payment in respect of such
fraction  in an  amount  equal to the same  fraction  of the  market  price of a
Warrant  Share on the  date of such  exercise  (as  determined  by the  board of
directors in its reasonable discretion).

                                    * * * * *

                                       11

<PAGE>

     IN WITNESS  WHEREOF,  the Company has caused this  Warrant to be signed and
attested  by its  duly  authorized  officers  and to be  dated as of the Date of
Issuance hereof.

                        NAVIDEC FINANCIAL SERVICES, INC.

                                  By:  /s/ Robert D. Grizzle
                                       -----------------------------------------
                                       Name: Robert D. Grizzle
                                       Title: President, Chief Operating Officer
                                       and Chief Financial Officer

                                       12EXHIBIT 10.1

THE SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY
HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE
"SECURITIES ACT), OR ANY OTHER APPLICABLE SECURITIES LAW AND,  ACCORDINGLY,  THE
SECURITIES REPRESENTED BY THIS WARRANT MAY NOT BE RESOLD,  PLEDGED, OR OTHERWISE
TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN
A  TRANSACTION  EXEMPT  FROM  REGISTRATION  UNDER,  THE  SECURITIES  ACT  AND IN
ACCORDANCE WITH ANY OTHER APPLICABLE SECURITIES LAWS.

                                     WARRANT

                 To Purchase 1,000,000 Shares of Common Stock of

                    BPZ ENERGY, INC. (formerly Navidec, Inc.)

      Issue Dale: March 21, 2005 (Pursuant to Agreement dated July 8, 2004)

    Exercise Price: $2.00 per share, subject to adjustment as provided below.

     This Common Stock Purchase Warrant (the "Warrant") certifies that for value
received,  Navidec Financial  Services,  Inc, (the "Holder") or its assigns,  is
entitled  to  subscribe  for and  purchase  from  the  Company  (as  hereinafter
defined),  in whole or in part,  1,000,000  shares of duty  authorized,  validly
issued,  fully paid and  nonassessable  shares of Common  Stock (as  hereinafter
defined) at an initial  Exercise  Price (as  hereinafter  defined)  per share of
$2.00,  subject,  however,  to the  provisions and upon the terms and conditions
hereinafter  set forth.  The number of Warrants (as  hereinafter  defined),  the
number of shares of Common Stock purchasable  hereunder,  and the Exercise Price
therefor are subject to adjustment as  hereinafter  set forth.  This Warrant and
all rights  hereunder  shall expire at 5:00 p.m.,  Houston,  Texas time,  on the
Expiration Date (as hereinafter defined).

As used herein, the following terms shall have the meanings set forth below:

     "Company" shall mean BPZ Energy,  Inc., a Colorado  corporation,  (formerly
Navidec,  Inc.) and shall also include any successor thereto with respect to the
obligations hereunder, by merger, consolidation or otherwise.

     "Common  Stock" shall mean and include the Company's  Common Stock,  no par
value,   and   shall   also   include   (i)  in  case  of  any   reorganization,
reclassification,  consolidation,  merger,  share exchange or sale,  transfer or
other disposition of assets of the character  referred to in Section 3.5 hereof,
the stock, cash, assets or other securities provided for in such Section 3.5 and
(ii) any other  shares of common  stock of the Company into which such shares of
Common Stock may be converted.

     "Exercise Date" shall have the meaning set forth in Section 1.3 herein.

     "Exercise  Price" shall mean the initial  purchase price of $2.00 per share
of Common Stock payable upon exercise of the Warrants,  as adjusted from time to
time pursuant to the provisions herein.

     "Expiration  Date" shall mean 5:00 p.m.,  Houston,  Texas time, on July 31.
2006.

<PAGE>

     "Outstanding"  when used with reference to Common Stock, shall mean (except
as otherwise  expressly  provided  herein) at any date as of which the number of
shares  thereof is to be determined,  all issued shares of Common Stock,  except
shares then owned or held by or for the account of the Company.

     "Person"  shall  mean  an  individual,   a  corporation,   a  company,   an
association,  a firm, a partnership,  a society,  a joint stock company;  or any
other  organization  or  institution  or anyone  who acts for such a person in a
representative capacity.

     "Warrant" shall mean the right upon exercise to purchase one Warrant Share.

     "Warrant Office" shall have the meaning set forth in Section 2.1 herein.

     "Warrant  Shares"  shall  mean the  shares of  Common  Stock  purchased  or
purchasable by the holder hereof upon the exercise of the Warrants.

                                    ARTICLE I

                              EXERCISE OF WARRANTS

     1.1 Method of Exercise. The Warrants represented hereby may be exercised by
the holder hereof, in whole or in part, at any time and from time to time, until
5:00 p.m.,  Houston,  Texas time on the Expiration  Date under the provisions of
Section 1.2.  Notwithstanding  the foregoing,  the Warrants may not be exercised
unless the Company has sufficient  authorized  shares  available for issuance of
the  Warrant  Shares  or until  such time as an  amendment  to the  Articles  of
incorporation of the Company  providing for an increase in the authorized shares
of the Company  sufficient to issue the Warrant  Shares has been approved by the
shareholders of the Company.

     1.2 Exercise For Cash.  To exercise the  Warrants,  the holder hereof shall
deliver to the Company,  at the Warrant Office designated in Section 2.1 hereof,
(i) a written notice in the form of the Exercise  Notice attached as Exhibit "A"
hereto,  staling therein the election of such holder to exercise the Warrants in
the manner provided in the Exercise Notice; (ii) payment in full of the Exercise
Price in cash or by certified or official bank check payable to the order of the
Company or by wire transfer of immediately available funds to the account of the
Company for all Warrant Shares purchased hereunder;  and (iii) this Warrant. The
Company  may, at its  option,  accept a  non-certified  check in payment for the
Warrant  Shares,  but will not issue the Warrant Shares to the holder until such
time as the Company has received available funds in its bank account.

     1.3  Delivery  of  Warrant  Shares.  The  Warrants  shall be  deemed  to be
exercised on the date of receipt by the Company of (i) the Exercise  Notice (ii)
payment  in good  funds for the  Warrant  Shares,  and (iii)  surrender  of this
Warrant,  as  aforesaid,  and such date is referred  to herein as the  "Exercise
Date". Upon such exercise,  the Company shall, as promptly as practicable and in
any event  within ten (10)  business  days,  issue and  deliver to such holder a
certificate or certificates for the full number of the Warrant Shares purchased,
and shall, unless the Warrants have expired,  deliver to the holder hereof a new
Warrant  representing  the number of Warrants,  if any, that shall not have been
exercised,  in all other  respects  identical to this  Warrant.  As permitted by
applicable law, the Person in whose name the  certificates  for Common Stock are
to be issued  shall be deemed to have  become a holder of record of such  Common
Stock on the Exercise  Date and shall be entitled to all of the benefits of such
holder on the Exercise Date,  including without  limitation the right to receive
dividends  and other  distributions  for which the record date falls on or after
the Exercise Date and to exercise voting rights.

                                       2
<PAGE>

     1.4  Expenses  and Taxes.  The Company  shall pay all  expenses,  and taxes
(including,  without  limitation,  all  documentary,  stamp,  transfer  or other
transactional  taxes) other than income taxes,  attributable to the preparation,
issuance or delivery of the Warrants and of the shares of Common Stock  issuable
upon  exercise  of the  Warrants.  To the extent  that this  Warrant  may have a
compensatory aspect to the holder at the time of its issuance,  the Company will
fully comply with the reporting  requirements of the Internal  Revenue  Service,
which it shall determine in its sole discretion,  including the reporting of any
gain which may be realized upon exercise.

     1.5  Reservation of Shares.  At all times after the date of an amendment to
the Articles of  Incorporation  of the Company  providing for an increase in the
authorized shares of the Company  sufficient to issue the Warrant Shares, for so
long as the Warrants remain  outstanding,  the Company shall reserve,  free from
preemptive  rights,  out of its  treasury  Common  Stock or its  authorized  but
unissued  shares of Common Stock,  or both,  solely for the purpose of effecting
the exercise of the Warrants,  a sufficient  number of shares of Common Stock to
provide for the exercise of the Warrants.

     1.6 Valid  Issuance.  All shares of Common  Stock  that may be issued  upon
exercise of the Warrants will, upon issuance by the Company, be duly and validly
issued,  fully paid and nonassessable and free from all taxes, liens and charges
with respect to the issuance thereof and, without limiting the generality of the
foregoing,  the  Company  shall take no action or fail to take any action  which
will cause a contrary result  (including,  without  limitation,  any action that
would  cause the  Exercise  Price to be less than the par value,  if any, of the
Common Stock).

     1.7 Acknowledgment of Registration  Rights. The Company agrees that it will
include the Warrant Shares in the next  registration  statement filed subsequent
to the issuance of this Warrant on a registration  form that may be utilized for
this purpose,  to the extent it is legally  permitted to do so. Once filed,  the
Company  will use  commercially  reasonable  efforts  to have such  registration
statement declared  effective within a reasonable time after filing.  Should any
holder exercise  Warrants prior to the  registration  statement being effective,
the  registration  statement  shall  reflect or be  amended to reflect  that the
registration  covers the resale of the Warrant Shares of any holder  electing to
exercise the Warrant prior to the  effectiveness of the registration  statement.
All of the expenses of the  registration  shall be borne by the Company,  except
for any underwriting fees attributable to the Warrant Shares.  The Company shall
have the right to delete from any resale  registration  statement the securities
of any Warrant  holder or holder of any Common Stock issued  hereunder who fails
to  respond  to a  request  for  reasonable  information  deemed  necessary  for
inclusion in the  registration  statement.  The  registration  rights  contained
herein shall survive the exercise of the Warrants and shall remain  binding upon
the Company and the holder of the Warrants or the Common Stock issued  hereunder
until such time as such  registration  rights are no longer in force and effect.
At the time of the exercise of the Warrants in accordance  with the terms hereof
and upon the written request of the holder hereof,  the Company will acknowledge
in writing  its  continuing  obligation  to afford to such holder  those  rights
contained in this Section 1.7.

     1.8 No  Fractional  Shares.  The  Company  shall not be  required  to issue
fractional shares of Common Stock on the exercise of this Warrant.  If more than
one Warrant shall be presented for exercise at the same time by the same holder,
the number of full shares of Common  Stock  which  shall be  issuable  upon such
exercise shall be computed on the basis of the aggregate  number of whole shares
of Common Stock  purchasable  on exercise of the Warrants so  presented.  If any
fraction of a share of Common Stock  would,  except for the  provisions  of this
Section 1.8, be issuable upon the exercise of this Warrant, the Company

                                       3
<PAGE>

shall pay an amount in cash  calculated by it to be equal to the closing  market
price of one share of Common Stock on the last trading day immediately preceding
the Exercise Date,  multiplied by such  fraction,  computed to the nearest whole
cent.

                                   ARTICLE II

                                    TRANSFER

     2.1  Warrant  Office.  The  Company  shall  maintain  an office for certain
purposes specified herein (the "Warrant  Office"),  which office shall initially
be the Company's offices at 11999 Katy Freeway, Suite 560, Houston, Texas 77079,
and may  subsequently  be such other  office of the  Company or of any  transfer
agent of the Common Stock in the  continental  United States as to which written
notice has  previously  been  given to the  holder  hereof.  The  Company  shall
maintain,  at the  Warrant  Office,  a register  for the  Warrants  in which the
Company  shall  record  the name and  address  of the  Person in whose name this
Warrant  has been  issued,  as well as the name and  address  of each  permitted
assignee of the rights of the registered owner hereof.

     2.2  Ownership  of  Warrants.  The Company may deem and treat the Person in
whose  name  the  Warrants  are  registered  as  the  holder  and  owner  hereof
(notwithstanding  any  notations of  ownership or writing  hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary until  presentation of this Warrant for registration of transfer
as provided in this  Article II.  Notwithstanding  the  foregoing,  the Warrants
represented hereby, if properly assigned in compliance with this Article lI, may
be exercised by an assignee for the purchase of Warrant  Shares without having a
new Warrant issued.

     2.3 Restrictions on Transfer of Warrants. The Company agrees to maintain at
the Warrant  Office books for the  registration  and  transferor  the  Warrants.
Subject to the restrictions on transfer of the Warrants in this Section 2.3, the
Company,  from time to time, shall register the transfer of the Warrants in such
books upon surrender of this Warrant at the Warrant Office property  endorsed or
accompanied by appropriate  instruments of transfer and written instructions for
transfer  satisfactory  to the Company as  reflected  in the  Assignment  Notice
attached as Exhibit "B" hereto.  Upon any such  transfer and upon payment by the
holder or its transferee of any applicable transfer taxes, new Warrants shall be
issued to the transferee and the transferor (as their  respective  interests may
appear) and the  surrendered  Warrants  shall be canceled  by the  Company.  The
Company  shall pay all taxes  (other than  securities  transfer  taxes or income
taxes)  and all other  expenses  and  charges  payable  in  connection  with the
transfer of the Warrants pursuant to this Section 2.3.

          2.3.1 The holder of the Warrants agrees that it will neither (i)
transfer the Warrants prior to delivery to the Company of written notice of such
transfer, nor (ii) transfer such Warrant Shares prior to delivery to the Company
of written notice of such transfer, or until registration of such Warrant Shares
under the Securities Act and any applicable state securities or blue sky laws
has become effective.

     2.4 Compliance  with  Securities  Laws. The holder hereof  understands  and
agrees that the following  restrictions  and limitations  shall be applicable to
all Warrant Shares and to all resales or other transfers thereof pursuant to the
Securities Act:

          2.4.1 The holder hereof agrees that the Warrant Shares shall not be
sold or otherwise transferred unless the Warrant Shares are registered under the
Securities Act and applicable state securities or blue sky laws or are exempt
therefrom.

                                       4
<PAGE>

          2.4.2 A legend in substantially the following form will be placed on
the certificate(s) evidencing the Warrant Shares:

           "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
           REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
           "SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW AND,
           ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE
           MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT
           PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A
           TRANSACTION EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT
           AND IN ACCORDANCE WITH ANY OTHER APPLICABLE SECURITIES LAWS."

          2.4.3 Stop transfer instructions will be imposed with respect to the
Warrant Shares so as to restrict resale or other transfer thereof, subject to
this Section 2.4.

          2.4.4 The holder understands that it must bear the economic risk of
the investment for an indefinite period of time because the Warrant Shares have
not been registered under the Securities Act and therefore cannot be sold unless
they are subsequently registered under the Securities Act or an exemption from
such registration is available. The holder acknowledges that the holder or the
holder's representative is familiar with the condition, financial and otherwise,
of the Company. The Company will provide any information which the holder or the
holder's representative may reasonably request and which the Company can legally
provide, in connection with the holder's decision to acquire or exercise this
Warrant. The holder or the holder's representative has such knowledge and
experience in financial and business matters that the holder or the holder's
representative is able to weigh the information so received and to evaluate the
merits and risks of the holder's investment in the Warrant Shares.

                                   ARTICLE III

                                  ANTI-DILUTION

     3.1 Stock Splits and Reverse Splits. In the event that the Company shall at
any time subdivide its outstanding  shares of Common Stock into a greater number
of shares,  the Exercise Price in effect  immediately  prior to such subdivision
shall be  proportionately  reduced and the number of Warrant Shares  purchasable
pursuant  to this  Warrant  immediately  prior  to  such  subdivision  shall  be
proportionately  increased,  and  conversely,  in the event that the outstanding
shares of Common  stock shall at any lime be combined  into a smaller  number of
shares, the Exercise Price in effect immediately prior to such combination shall
be  proportionately  increased and the number of Warrant Shares purchasable upon
the  exercise of this Warrant  immediately  prior to such  combination  shall be
proportionately  reduced.  Except as provided in this Section 3.1, no adjustment
in the Exercise Price and no change in the number of Warrant Shares  purchasable
shall be made  under  this  Article  III as a result of or by reason of any such
subdivision or combination.

     3.2  Reorganizations  and Asset  Sales.  If any capital  reorganization  or
reclassification  of the capital  stock of the  Company,  or any  consolidation,
merger or share  exchange  of the  Company  with  another  Person,  or the sale,
transfer  or other  disposition  of all or  substantially  all of its  assets to
another  Person shall be effected in such a way that a holder of Common Stock of
the Company  shall be entitled to receive  capital  stock,  securities or assets
with respect to or in exchange for their shares,  then the following  provisions
shall apply:

                                       5
<PAGE>

          3.2.1 As a condition of such reorganization, reclassification,
consolidation, merger, share exchange, sale, transfer or other disposition
(except as otherwise provided below in this Section 3.2), lawful and adequate
provisions shall be made whereby the holder of Warrants shall thereafter have
the right to purchase and receive upon the terms and conditions specified in
this Warrant and in lieu of the Warrant Shares immediately theretofore
receivable upon the exercise of the rights represented hereby, such shares of
capital stock, securities or assets as may be issued or payable with respect to
or in exchange for a number of outstanding shares of such Common Stock equal to
the number of Warrant Shares immediately theretofore so receivable had such
reorganization, reclassification, consolidation, merger, share exchange or sale
not taken place, and in any such case appropriate provision reasonably
satisfactory to such holder shall be made with respect to the rights and
interests of such holder to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the Exercise Price and of the
number of Warrant Shares receivable upon the exercise) shall thereafter be
applicable, as nearly as possible, in relation to any shares of capital stock,
securities or assets thereafter deliverable upon the exercise of Warrants.

          3.2.2 In the event of a merger, share exchange or consolidation of the
Company with or into another Person as a result of which a number of shares of
common stock or its equivalent of the successor Person greater or lesser than
the number of shares of Common Stock outstanding immediately prior to such
merger, share exchange or consolidation are issuable to holders of Common Stock,
then the Exercise Price in effect immediately prior to such merger, share
exchange or consolidation shall be adjusted in the same manner as though there
were a subdivision or combination of the outstanding shares of Common Stock.

          3.2.3 The Company shall not effect any such consolidation, merger,
share exchange, sale, transfer or other disposition unless prior to or
simultaneously with the consummation thereof the successor Person (if other than
the Company) resulting from such consolidation, share exchange or merger or the
Person purchasing or otherwise acquiring such assets shall have assumed by
written instrument executed and mailed or delivered to the holder hereof at the
last address of such holder appearing on the books of the Company the obligation
to deliver to such holder such shares of capital stock, securities or assets as,
in accordance with the foregoing provisions, such holder may be entitled to
receive, and all other liabilities and obligations of the Company hereunder.
Upon written request by the holder hereof, such successor Person will issue a
new Warrant revised to reflect the modifications in this Warrant effected
pursuant to this Section 3.2.

          3.2.4 If a purchase, tender or exchange offer is made to and accepted
by the holders of 50% or more of the outstanding shares of Common Stock, the
Company shall not effect any consolidation, merger, share exchange or sale,
transfer or other disposition of all or substantially all of the Company's
assets with the Person having made such offer or with any affiliate of such
Person, unless prior to the consummation of such consolidation, merger, share
exchange, sale, transfer or other disposition the holder hereof shad have been
given a reasonable opportunity to then elect to receive upon the exercise of the
Warrants either the capital stock, securities or assets then issuable with
respect to the Common Stock or the capital stock, securities or assets, or the
equivalent, issued to previous holders of the Common Stock in accordance with
such offer.

     3.3 Adjustment for Asset  Distribution.  If the Company declares a dividend
or other  distribution  payable  to all  holders  of shares  of Common  Stock in
evidences  of  indebtedness  of the  Company  or  other  assets  of the  Company
(including  cash (other than  regular  cash  dividends  declared by the Board of
Directors),  capital stock (other than Common Stock,  Convertible  Securities or
options or rights  thereto) or other  property),  the  Exercise  Price in effect
immediately prior to such declaration of such dividend or other distribution

                                       6

<PAGE>

shall  be  adjusted  by  multiplying  such  Exercise  Price by a  fraction,  the
numerator  of which shall be the current  market price per share of Common Stock
on the record date for making such dividend or distribution,  less the amount of
such dividend or  distribution,  in the case of a cash dividend or distribution,
or the fair market value of such dividend or distribution (as determined in good
faith by, and reflected in a formal resolution of, the Board of Directors of the
Company) in the case of any other  dividend or  distribution,  applicable to one
share of Common Stock, and the denominator of which shall be such current market
price per share of Common Stock.  Such reduction shall be made whenever any such
dividend or  distribution  is made and shall be  effective  as of the date as of
which a record is taken for purpose of such  dividend or  distribution  or, if a
record is not  taken,  the date as of which  holders  of record of Common  Stock
entitled to such dividend or distribution  are  determined.  The "current market
price" per share of Common Stock shall be the closing  market price of one share
of  Common  Stock  on the last  trading  day  immediately  preceding  the  event
requiring an adjustment.

     3.4 Notice of  Adjustment.  Whenever  the  Exercise  Price or the number of
Warrant  Shares  issuable upon the exercise of the Warrants shall be adjusted as
herein  provided,  or the rights of the holder  hereof shall change by reason of
other events specified  herein,  the Company shall compute the adjusted Exercise
Price  and the  adjusted  number  of  Warrant  Shares  in  accordance  with  the
provisions hereof and shall prepare an Officer's  Certificate  setting forth the
adjusted  Exercise Price and the adjusted number of Warrant Shares issuable upon
the exercise of the Warrants or specifying the other shares of stock, securities
or assets  receivable  as a result of such  change in  rights,  and  showing  in
reasonable  detail the facts and  calculations  upon which such  adjustments  or
other  changes  are based.  The  Company  shall cause to be mailed to the holder
hereof copies of such Officer's  Certificate together with a notice stating that
the Exercise Price and the number of Warrant Shares purchasable upon exercise of
the Warrants have been adjusted and setting  forth the adjusted  Exercise  Price
and the adjusted number of Warrant Shares  purchasable  upon the exercise of the
Warrants.

     3.5 Notifications to Holders. In case at any time the Company proposes:

          (i) to declare any dividend upon its Common Stock payable in capital
     stock or make any special dividend or other distribution (other than cash
     dividends) to the holders of its Common Stock;

          (ii) to offer for subscription pro rata to all of the holders of its
     Common Stock any additional shares of capital stock of any class or other
     rights;

          (iii) to effect any capital reorganization, or reclassification of the
     capital stock of the Company, or consolidation, merger or share exchange of
     the Company with another Person, or sale, transfer or other disposition of
     all or substantially all of its assets; or

          (iv) to effect a voluntary or involuntary dissolution, liquidation or
     winding up of the Company,

then, in any one or more of such cases, the Company shall give the holder hereof
(a) at least 10 days' (but not more than 90 days') prior  written  notice of the
date on which the books of the Company  shall  close or a record  shall be taken
for such dividend, distribution or subscription rights or for determining rights
to  vote  in  respect  of  such  issuance,   reorganization,   reclassification,
consolidation, merger, share exchange, sale, transfer, disposition, dissolution,
liquidation  or  winding  up,  and  (b)  in  the  case  of  any  such  issuance,
reorganization,  reclassification,  consolidation, merger, share exchange, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 10 days'
(but not more than 90 days') prior written notice of the

                                       7

<PAGE>

date  when the same  shall  take  place.  Such  notice  in  accordance  with the
foregoing  clause  (a) shall  also  specify,  in the case of any such  dividend,
distribution  or  subscription  rights,  the date on which the holders of Common
Stock  shall  be  entitled  thereto,  and such  notice  in  accordance  with the
foregoing  clause (b) shall also specify the date on which the holders of Common
Stock shall be entitled to exchange their Common Stock,  as the case may be, for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,   consolidation,   merger,  share  exchange,  safe,  transfer,
disposition, dissolution, liquidation or winding up, as the case may be.

                                   ARTICLE IV

                                  MISCELLANEOUS

     4.1 Entire  Agreement.  This Warrant contains the entire agreement  between
the holder hereof and the Company with respect to the Warrant Shares purchasable
or issuable upon exercise hereof and the related transactions and supersedes all
prior arrangements or understandings with respect thereto.

     4.2  Governing  Law.  This  warrant  shall be governed by and  construed in
accordance with the laws of the State of Texas.

     4.3 Waiver and  Amendment.  Any term or  provision  of this  Warrant may be
waived at any time by the party which is entitled  to the  benefits  thereof and
any term or provision of this Warrant may be amended or supplemented at any time
by agreement of the holder hereof and the Company, except that any waiver of any
term or condition, or any amendment or supplementation, of this Warrant shall be
in  writing.  A waiver of any breach or  failure to enforce  any of the terms or
conditions of this Warrant shall not in any way effect, limit or waive a party's
rights hereunder at any time to enforce strict compliance  thereafter with every
term or condition of this Warrant,

     4.4  Illegality.  In the  event  that  any one or  more  of the  provisions
contained  in this  Warrant  shall  be  determined  to be  invalid,  illegal  or
unenforceable  in any  respect  for  any  reason,  the  validity,  legality  and
enforceability  of any such  provision  in any other  respect and the  remaining
provisions  of this Warrant shall not, at the election of the party for whom the
benefit of the provision exists, be in any way impaired.

     4.5 Copy of  Warrant.  A copy of this  Warrant  shall be  filed  among  the
records of the Company.

     4.6 Notice.  Any notice or other document required or permitted to be given
or delivered to the holder  hereof shall be in writing and delivered at, or sent
by certified or registered mail to such holder at, the last address shown on the
books of the Company  maintained at the Warrant Office for the  registration  of
this Warrant or at any more recent address of which the holder hereof shall have
notified  the  Company in  writing.  Any notice or other  document  required  or
permitted to be given or  delivered  to the  Company,  other than such notice or
documents required to be delivered to the Warrant Office, shall be delivered at,
or sent by certified or registered  mail to, the offices of the Company at 11999
Katy Freeway,  Suite 560, Houston, Texas 77079, or such other address within the
continental United States of America as shall have been furnished by the Company
to the holder of this Warrant,  with a copy to: Mark W. Coffin,  Adams and Reese
LLP, 1221 McKinney, Suite 4400, Houston, Texas 77010.

                                       8
<PAGE>

     4.7 Limitation of Liability: Not Stockholders. No provision of this Warrant
shall be  construed  as  conferring  upon the  holder  hereof the right to vole,
consent,  receive  dividends or receive notices (other than as herein  expressly
provided) in respect of meetings of  stockholders  for the election of directors
of the Company or any other matter  whatsoever as a stockholder  of the Company.
No provision hereof,  in the absence of affirmative  action by the holder hereof
to purchase shares of Common Stock, and no mere enumeration herein of the rights
or  privileges  of the holder  hereof,  shall give rise to any liability of such
holder for the purchase  price of any shares of Common Stock or as a stockholder
of the  Company,  whether  such  liability  is  asserted  by the  Company  or by
creditors of the Company.

     4.8 Exchange. Loss. Destruction,  etc, of Warrant. Upon receipt of evidence
satisfactory  to the Company of the loss,  theft,  mutilation or  destruction of
this  Warrant,  and in the case of any such  loss,  theft  or  destruction  upon
delivery of a bond of indemnity  or such other  security in such form and amount
as shall be  reasonably  satisfactory  to the  Company,  or in the event of such
mutilation  upon surrender and  cancellation  of this Warrant,  the Company will
make and  deliver a new  Warrant of like  tenor,  in lieu of such lost,  stolen,
destroyed or mutilated Warrant.  Any Warrant issued under the provisions of this
Section 4.8 in lieu of any Warrant alleged to be lost,  destroyed or stolen,  or
in lieu of any  mutilated  Warrant,  shall  constitute  an original  contractual
obligation on the part of the Company.  This Warrant shall be promptly  canceled
by the Company  upon the  surrender  hereof in  connection  with any exchange or
replacement.  The Company  shall pay all taxes (other than  securities  transfer
taxes or income taxes) and art other expenses and charges  payable in connection
with the  preparation,  execution  and  delivery  of  Warrants  pursuant to this
Section 4.8.

     4.9  Headings.  The Article and Section and other  headings  herein are for
convenience  only and are not a part of this  Warrant  and shall not  affect the
interpretation thereof.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in its
name.

                                    BPZ ENERGY, INC.

                                    By:  /s/  Manuel P. Zuniga Pflucker
                                         ---------------------------------------
                                    Name:    Manuel P. Zuniga Pflucker
                                    Title:   President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]