Document:

EXHIBIT 10.5

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is effective as
of the 15th day of June 2005, by and between Robert Grizzle, an individual
("Employee"), and Navidec Financial Services Inc., a Colorado corporation (the
"Company").

WHEREAS, the Company and Employee entered into an Employment Agreement, dated as
of September 9, 2004, relating the terms and conditions of Employee's employment
with the Company (the "Employment Agreement"); and

WHEREAS, the Company and Employee desire to amend and restate the Employment
Agreement; and

WHEREAS, the Company has determined that it is in the best interests of the
Company and its stockholders to enter into this Agreement setting forth the
rights, obligations and duties of both the Company and the Employee; and

WHEREAS, the Company wishes to assure itself of the services of the Employee for
the period hereinafter provided, and the Employee is willing to be employed by
the Company for said period, upon the terms and conditions provided in this
Agreement.

IN CONSIDERATION of the mutual covenants and promises herein contained, and
subject to the terms and conditions herein set forth, Employee and the Company
hereby agree as follows:

     1. Term of Employment; Duties.
        ---------------------------

     (a) The "Term of Employment" shall commence on the effective date of this
Agreement and shall continue for an initial term of two (2) years unless earlier
terminated as provided in this Agreement (the "Initial Term"). After the Initial
Term, the Term of Employment will automatically renew for successive one (1)
year terms unless and until either party delivers notice of termination to the
other within thirty (30) days of the expirations of the then current term.

     (b) During the Term of Employment, the Company shall employ Employee, and
Employee shall work for the Company, as President, Chief Operating Officer and
Corporate Secretary. In such capacity, Employee shall perform such duties as are
traditional and customary to that position and as may be reasonably directed by
the Board of Directors of the Company (the "Board")

     (c) During the Term of Employment, except as set forth below, Employee
shall devote full time and effort to carrying out Employee's duties for the
Company hereunder, shall not engage in any activity which would be inconsistent
with such duties or with the objectives of the Business (as defined below), and
shall diligently perform Employee's obligations and discharge Employee's duties

<PAGE>

hereunder; provided, however, nothing in this Paragraph shall prevent Employee
from devoting time to managing investments, participating with charitable
organizations and trade groups or other similar activities. The "Business" of
the Company is to investigate, acquire, and manage business opportunities for
the Company.

     2. Compensation. During the Term of Employment, the following compensation
and benefits shall be payable and provided to Employee:

     (a) Employee shall receive from the Company an annual base salary of
$90,000 ("Base Salary"), which shall be payable in accordance with the standard
practice of the Company in the payment of salaries of its employees. Employee's
Base Salary shall be adjusted in accordance with other executives of the Company
and its Subsidiaries.

     No less frequently than monthly, the Base Salary will be reviewed and may
be adjusted upward at the discretion of the Board.

     Employee shall be entitled to all granted options, including an option to
purchase 200,000 shares of the Company's common stock at an exercise price of
$0.05 per share that shall be fully vested and exercisable at the time of this
grant pursuant to the terms and conditions of the Company's 2005 Stock Option
Plan.

     (b) The Company shall provide Employee with such medical, hospitalization,
insurance, including but not limited to disability insurance, pension plan,
profit sharing and employee benefits and such other similar employment
privileges and benefits ("Benefits") as are afforded generally from time to time
to other executive employees of the Company, and four (4) weeks paid vacation
each year.

     (c) The Company shall provide Employee with a Company car to be leased for
no more than $375 per month at Company expense including insurance.

     (d) Employee shall also be eligible to participate in the Navidec Financial
Services, Inc. Management Incentive Plan.

     (e) At the sole discretion of the Board, Employee shall receive in addition
to his Base Salary annual incentive compensation (an "Annual Bonus") in an
amount and in a form to be determined by the Board upon the advice of the
Compensation Committee.

     (f) Employee shall be entitled to receive prompt reimbursement for all pre-
approved reasonable employment-related expenses incurred by Employee, upon the
receipt by the Company of an accounting in accordance with the practices,
policies and procedures applicable to other executive employees of the Company.

     3. Early Termination: Death. Notwithstanding anything to the contrary in
Paragraph 1 hereof, if Employee dies during the Term of Employment, the Term of
Employment shall terminate. Upon such termination, Employee's estate or

<PAGE>

beneficiaries shall be entitled to receive any Base Salary and Benefits earned
and accrued but unpaid through the date on which his death occurs. Employee's
estate shall receive Employee's Annual Bonus (if any), prorated for the number
of months during the fiscal year during which Employee was paid his Base Salary
("Prorated Annual Bonus"). The Prorated Annual Bonus shall be calculated and
paid in the ordinary course after completion of the fiscal year. In addition,
Employee's family ("Family") shall continue to receive health insurance coverage
("Family Health Insurance") during such one (1) year period, to the extent
permitted by the Company's health plan contract(s), or if not permitted, as
purchased by the Company at no cost to the Family. The parties shall have no
further obligation under this Agreement.

     4. Early Termination: Disability. Notwithstanding anything to the contrary
in Paragraph 1 hereof, if Employee has at any time been unable, by virtue of
illness or other physical or mental disability, to perform substantially and
continuously the duties assigned to Employee under this Agreement for a period
of ninety (90) consecutive days or one hundred twenty (120) calendar days out of
any period of one hundred eighty (180) consecutive calendar days during the Term
of Employment and the Board has received a medical opinion from a physician
reasonably acceptable to both the Company and the Employee that Employee remains
disabled after said period ("Disability"), then the Company shall have the right
to terminate the Term of Employment upon notice to Employee. Upon such
termination, Employee shall be entitled to receive any Base Salary and Benefits
earned and accrued but unpaid through the date of termination, including,
without limitation, the additional disability insurance described in Paragraph
2(b) hereof. In addition, the Employee shall have the right to receive a
Prorated Annual Bonus to the date of termination. Employee and Family shall
continue to receive health insurance coverage during a one (1) year period
following the date of termination, to the extent permitted by the Company's
health plan contract(s), or if not permitted, as purchased by the Company at no
cost to the Family. The parties shall have no further obligation under this
Agreement except that Employee shall not be relieved of Employee's obligations
under Paragraph 8.

     5. Early Termination: Termination by the Company for Cause. Notwithstanding
anything to the contrary in Paragraph 1 hereof, the Term of Employment may be
terminated by the Company upon notice to Employee for "Cause." The term "Cause"
shall mean Employee's: (a) final, unappealable conviction of a felony involving
fraud, dishonesty or moral turpitude; (b) willful or intentional violation of
Paragraph 8 of this Agreement which breach is not cured within thirty (30) days
after Employee's receipt of written notice from the Company; (c) willful or
intentional material breach of this Agreement which breach is not cured within
thirty (30) days after Employee's receipt of written notice from the Company.
Upon such termination, Employee shall be entitled to receive any Base Salary and
Benefits earned and accrued but unpaid through the date of termination and a
Prorated Annual Bonus to the date of termination. The parties shall have no
further obligation under this Agreement except that Employee shall not be
relieved of Employee's obligations under Paragraph 8.

<PAGE>

     6. Early Termination: Termination by the Company without Cause. In the
event that the Term of Employment is terminated by the Company without Cause,
Employee shall be entitled to receive: (a) any Base Salary and Benefits earned
and accrued but unpaid through the date of termination; (b) a lump sum cash
payment (or six monthly payments based on the Company's financial status as
determined by the Board), net of any applicable withholding taxes, in an amount
equal to six months salary at the highest base salary in effect during the
twelve months prior to termination plus the Annual Bonus paid to Employee for
the last fiscal year prior to termination prorated to the date of termination;
(c) continuation of Benefits to the extent allowed under the Company's plans for
one (1) year from the date of termination; and (d) notwithstanding any provision
to the contrary in any plan or agreement relating to stock options for shares of
the Company, immediate vesting of all of Employee's non-vested options for
shares of the Company's capital stock ("Accelerated Option Vesting")
(collectively, the "Severance Payments"). In the event the Company cannot,
pursuant to any of its benefits plans, pay any Benefits under such plan,
Employee shall be entitled to a lump sum payment equal to the after-tax value of
such Benefits. The parties shall have no further obligation under this
Agreement. Employee acknowledges and agrees that payment of Severance Payments
pursuant to this Agreement shall be conditioned upon the Company's receipt of a
release, in form satisfactory to the Company, of all claims that Employee may
have against the Company, its directors, officers, employees and/or agents and
the Employee's satisfaction of the requirements of Paragraph 8 below.

     7. Early Termination: Resignation by the Employee.
        -----------------------------------------------

     (a) For Good Reason.

     (i) Notwithstanding anything to the contrary in Paragraph 1 hereof, the
Term of Employment may be terminated by Employee upon notice to the Company for
"Good Reason." For purposes of this Agreement, "Good Reason" includes the
occurrence of any of the following circumstances, without Employee's express
consent: (i) a material adverse change or material diminution in Employee's
position, duties, reporting relationships or responsibilities (as reasonably
determined by Employee in his good faith discretion); (ii) a change in the
required location of the performance of Employee's duties; (iii) a reduction in
either Employee's annual rate of Base Salary or level of participation in any
non-discretionary bonus plan for which he is eligible under Paragraph 2(c); (iv)
an elimination or reduction of Employee's participation in any benefit plan
generally available to executive employees of the Company, unless the Company
continues to offer Employee benefits substantially similar to those made
available by such plan; or (v) a breach of this Agreement by the Company which
is not cured within sixty (60) days of written notice to the Company. Employee's
continued employment will not constitute consent to, or a waiver of rights with
respect to, any circumstance constituting Good Reason; provided, however, that
Employee will be deemed to have waived his rights pursuant to the circumstances
constituting Good Reason set forth in clauses (i) through (v) of the preceding
sentence if he has not provided to the Company a notice of termination
(described below) within ninety (90) days following his knowledge of the
circumstances constituting Good Reason.

<PAGE>

     (ii) Upon such termination for Good Reason, Employee shall be entitled to
receive the Severance Payments as described in Paragraph 6 of this Agreement. In
the event the Company cannot, pursuant to any of its benefits plans, pay any
Benefits under such plan, Employee shall be entitled to a lump sum payment equal
to the after-tax value of such benefits. The parties shall have no further
obligation under this Agreement except that Employee shall not be relieved of
Employee's obligations under Paragraph 8.

     (iii) Any termination of Employee's employment by Employee must be
communicated by written notice of termination to the Company in accordance with
Paragraph 20 which notice must set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Employee's
employment under this Paragraph 7.

     (b) Other than for Good Reason. In the event that the Term of Employment is
terminated by Employee other than as set forth in Paragraph 7(a) above, Employee
shall be entitled to receive any Base Salary and Benefits earned and accrued but
unpaid through the date of termination. The parties shall have no further
obligation under this Agreement except that Employee shall not be relieved of
Employee's obligations under Paragraph 8.

     8. Confidentiality and Non-Competition.
        ------------------------------------

     (a) Employee acknowledges that Employee has had or shall have unlimited
access to Confidential Information (as defined below) and business methods
relating to the Company's Business and operations and that the Company would be
injured and the goodwill of the Company would be damaged if Employee were to
breach the covenants set forth in this Paragraph 8. Employee further
acknowledges that the covenants set forth in this Paragraph 8 are reasonable in
scope and duration. "Confidential Information" shall include, without
limitation: (i) specific business strategies relating to the Company's Business,
as its Business is being conducted at the time of any alleged breach of this
Paragraph 8; (ii) methodologies of pricing used by the Business; (iii) customer
lists; and (iv) all other information reasonably deemed by the Company to be
confidential and/or proprietary in nature that Employee knows, or should
reasonably know, is confidential and/or proprietary.

     (b) During the Term of Employment and thereafter, except as may be required
by law or necessary in connection with any dealings with any public agency or
authority, Employee shall not disclose, disseminate, divulge, discuss, copy or
otherwise use or suffer to be used, in competition with, or in a manner harmful
to the interests of, the Company, any written Confidential Information
respecting any material aspect of the Company's Business, excepting only use of
such data or information as is: (i) at the time disclosed, through no act or
failure to act on the part of Employee, generally known or available to the
public; (ii) furnished to Employee by a third party as a matter of right and
without restriction on disclosure; or (iii) required to be disclosed by court
order. Upon termination of the Term of Employment, Employee shall return to the
Company or, at the Company's direction, destroy, any and all materials in
tangible or electronic form containing Confidential Information belonging to the
Company.

<PAGE>

     (c) During the Term of Employment and for a period of one (1) years
thereafter (except in the event this Agreement is terminated by the Company
pursuant to Paragraph 6 or this Agreement is terminated by the Employee pursuant
to Paragraph 7(a) and Employee has waived his right to collect the Severance
Payments), Employee shall not in North America, or in any international market
in which the Company is, as of the date of termination, doing business, directly
or indirectly, whether as an individual on Employee's own account, or as a
shareholder, partner, joint venturer, director, officer, employee, consultant,
creditor and/or agent, of any person, firm or organization or otherwise:

     (i) own, manage, control or participate in the ownership, management or
control of, or be employed or engaged by or otherwise affiliated or associated
as a consultant, independent contractor or otherwise with, any other
corporation, partnership, proprietorship, firm, association or other business
entity or otherwise engage in any business that is engaged in, or otherwise
directly competes with, the Business of the Company or any of the Company's
Subsidiaries (as defined herein), as such Business is conducted on the date
Employee ceases to be employed by the Company, in any capacity, including as a
consultant;

     (ii) solicit any person who, at the time of termination, is an employee or
officer of the Company or any Subsidiary, or a customer of the Business of the
Company or any Subsidiary (in its capacity as a customer of the Business) to
terminate his, her or its relationship with the Company or the Business (in the
case of a customer);

     (iii) solicit any supplier of the Company or any Subsidiary (in its
capacity as a supplier of the Business), to refuse to do business with the
Company or any Subsidiary, or to do business on any less favorable terms than
the Supplier's previous terms with the Company or its Subsidiary, as the case
may be; or

     (iv) engage in disparagement (which shall not include the providing of
accurate information without invidious intent) of the Company or any Subsidiary
by any means to any person.

     (d) Notwithstanding anything herein to the contrary, Employee shall be
permitted to own shares of any class of capital stock of any publicly held
corporation so long as the aggregate holdings of Employee represent less than
two percent (2%) of the outstanding shares of such class of capital stock.

     9. Change in Control.
        ------------------

     (a) If there is a Change in Control (as defined below), Employee shall be
entitled to Accelerated Option Vesting.

<PAGE>

     (b) For purposes of this Agreement, a "Change in Control" will occur: (i)
upon the sale or other disposition to a person, entity or group (as defined for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended)
(each, a "Person") of 50% or more of the consolidated assets of the Company
taken as a whole; (ii) if any Person becomes the beneficial owner of, or has the
right to acquire (by contract, option, warrant, conversion of convertible
securities or otherwise), 50% or more of the outstanding equity securities of
the Company entitled to vote for the election of directors; and (iii) upon the
merger, consolidation or reorganization with another corporation.
Notwithstanding anything herein to the contrary, a "Change in Control" does not
occur upon an initial public offering of the Company's equity securities
pursuant to an effective registration statement under the Securities Act of
1933, as amended, or upon a transaction, merger, consolidation or reorganization
in which the Company exchanges or offers to exchange newly issued or treasury
shares in an amount less than 50% of the then outstanding equity securities of
the Company entitled to vote for the election of directors, for 51% or more of
the outstanding equity securities entitled to vote for the election of at least
the majority of the directors of a corporation (the "Acquired Corporation"), or
for all or substantially all of the assets of the Acquired Corporation.

     (c) If all or any portion of the amount payable to Employee under this
Agreement, either alone or together with other amounts that Employee is entitled
to receive in connection with a Change in Control constitutes "excess parachute
payments," within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the "Code"), or successor provision, that are subject to the
excise tax imposed by Section 4999 of the Code (or any similar tax or
assessment), the amounts payable to Employee under this Agreement will be
increased to the extent necessary to place Employee in the same after-tax
position as Employee would have been in had no such excise tax or assessment
(including any interest or penalties thereon) been imposed on any such payment
paid or payable to Employee under this Agreement or any other payment that
Employee may receive as a result of such Change in Control. The determination of
the amount of any such tax or assessment and the resulting amount of incremental
payment required by this Paragraph 9(c) will be made by the independent
accounting firm employed by the Company immediately prior to the applicable
Change in Control, within thirty (30) calendar days after the payment of the
amount payable to Employee under this Agreement which triggered an incremental
payment under this Paragraph 9(c), and such incremental payment will be made
within five (5) business days after the determination has been made.

     10. Rights and Remedies Upon Breach.
         --------------------------------

     (a) Employee expressly agrees and understands that the remedy at law for
any breach by Employee of Paragraph 8 may be inadequate and that the damages
flowing from such breach may not be readily susceptible to being measured in
monetary terms. Accordingly, it is acknowledged that upon adequate proof of
Employee's violation of Paragraph 8, the Company may be entitled, among other
remedies, to injunctive relief and may obtain a temporary restraining order
restraining any threatened or further breach. Nothing in this Paragraph 10(a)
shall be deemed to limit the Company's remedies at law or in equity for any
breach by Employee of any of the provisions of this Agreement which may be
pursued or availed of by the Company.

<PAGE>

     (b) In the event any court of competent jurisdiction determines that the
specified time period or geographical area set forth in Paragraph 8 is
unreasonable, arbitrary or against public policy, then a lesser time period or
geographical area that is determined by the court to be reasonable,
non-arbitrary and not against public policy may be enforced.

     (c) In the event the Company has asserted in a formal legal action that
Employee is violating any legally enforceable provision of Paragraph 8 as to
which there is a specific time period during which Employee is prohibited from
taking certain actions or engaging in certain activities, then, in such event
the violation shall toll the running of the time period from the date of the
assertion until the violation ceases.

     11. Expenses. Employee is authorized to incur reasonable expenses for
carrying out and promoting the business of the Company, including expenses for
entertainment, travel and similar items, but only in accordance with the
policies of the Company, as from time to time adopted.

     12. Withholding Taxes. All payments to Employee or his beneficiary shall be
subject to withholding on account of federal, state and local taxes as required
by law. If any payment hereunder is insufficient to provide the amount of such
taxes required to be withheld, the Company may withhold such taxes from any
other payment due Employee or his beneficiary. In the event all cash payments
due Employee are insufficient to provide the required amount of such withholding
taxes, Employee or his beneficiary, within five (5) days after written notice
from the Company, shall pay to the Company the amount of such withholding taxes
in excess of all cash payments due Employee or his beneficiary.

     13. Assignability; Binding Nature. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors, heirs (in
the case of Employee) and assigns. No rights or obligations of the Company under
this Agreement may be assigned or transferred by the Company, except in
connection with a Change in Control where the assignee or transferee agrees, in
writing, to assume such rights and obligations of the Company under this
Agreement. No obligations of Employee under this Agreement may be assigned or
transferred by Employee.

     14. Entire Agreement. Except to the extent otherwise provided herein and
except for the Confidentiality and Proprietary Information Agreement, dated as
of __________, ______, by and between the Company and the Employee, this
Agreement contains the entire understanding and agreement between the parties
concerning the subject matter hereof and supersedes any prior agreements,
whether written or oral, between the parties concerning the subject matter
hereof.

     15. Amendment or Waiver. No provision in this Agreement may be amended
unless such amendment is agreed to in writing and signed by both Employee and an
authorized officer of the Company. No waiver by either party of any breach by
the other party of any condition or provision contained in this Agreement to be

<PAGE>

performed by such other party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent time.
Any waiver must be in writing and signed by the Employee or an authorized
officer of the Company, as the case may be.

     16. Severability. In the event that any provision or portion of this
Agreement shall be determined to be invalid or unenforceable for any reason, in
whole or in part, the remaining provisions of this Agreement shall be unaffected
thereby and shall remain in full force and effect to the fullest extent
permitted by law.

     17. Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of Employee's employment with the
Company to the extent necessary to the intended preservation of such rights and
obligations as described in this Agreement.

     18. Governing Law. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of Colorado, without
reference to principles of conflict of laws.

     19. Arbitration. With the sole exception of the injunctive relief
contemplated by Paragraph 10(a), any controversy or claim arising out of any
aspect of the relationship of the parties hereto, will be settled by binding
arbitration in Denver, Colorado by a panel of three arbitrators in accordance
with the Commercial Arbitration Rules of the American Arbitration Association.
Judgment upon any arbitration award may be entered in any court having
jurisdiction thereof and the parties consent to the jurisdiction of the courts
of the State of Colorado for this purpose.

     20. Notices. Any notice given to either party shall be in writing and shall
be effective when given, and shall in any event be deemed to be given upon
receipt, or if earlier, (a) five (5) days after deposit with the U.S. Postal
Service or other applicable postal service, if delivered by first class mail,
postage prepaid, (b) upon delivery, if delivered by hand, (c) one (1) business
day after the business day of deposit with Federal Express or similar overnight
courier, freight prepaid or (d) one (1) business day after the business day of
facsimile transmission, if delivered by facsimile transmission with copy by
first class mail, postage prepaid, and shall be duly addressed to the party
concerned at the address indicated below or to such changed address as such
party may subsequently give such notice of:

                             If to the Company, to:
                          6399 S. Fiddlers Green Circle
                                    Suite 300
                           Greenwood Village, CO 80111

                               If to Employee, to:
                             ======================

<PAGE>

     21. Headings. The headings of the Paragraphs contained in this Agreement
are for convenience only and shall not be deemed to control or affect the
meaning or construction of any provision of this Agreement.

     22. Counterparts; Facsimile Signatures. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original but all of
which together will constitute one and the same instrument. This Agreement may
be executed by facsimile signature and the facsimile signature of any party
shall constitute and original in all respects.

IN WITNESS WHEREOF, the parties hereto have executed or caused to be executed
this instrument on the date first above written.

=====================================

 /s/  Robert D. Grizzle
Name: Robert D. Grizzle
      -------------------------------

=====================================

NAVIDEC FINANCIAL SERVICES, INC.

By: /s/  John R. McKowen
    ---------------------------------
         John R. McKowen
Its:     Chief Executive Officer
     --------------------------------EXHIBIT 10.7

                                    Merger of

                                 BPZ ENERGY INC.

                                      Into

                              NAVIDEC MERGER CORP.

                          A wholly owned subsidiary of

                                  NAVIDEC, INC.

                               Dated July __, 2004

<PAGE>

                                MERGER AGREEMENT

     MERGER AGREEMENT (this "Agreement"), dated as of July __, 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

<PAGE>

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

<PAGE>

     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

<PAGE>

     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

<PAGE>

                                  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
          Financial. Between the date of this Agreement and the Closing Date the

                                        5

<PAGE>

          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

                                       7

<PAGE>

          future may be assessed against Navidec with respect to the period then
          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.

                                       8

<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.

                                       9

<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.

                                       10

<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.

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<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

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