Document:

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                                                                   EXHIBIT 10.12

                                ESCROW AGREEMENT

THIS AGREEMENT is made as of the 12th day of October, 2006

AMONG:

WORLD ENERGY SOLUTIONS, INC.
(the "ISSUER")

AND:

COMPUTERSHARE INVESTOR SERVICES INC.
(the "ESCROW AGENT")

AND:

EACH OF THE UNDERSIGNED SECURITYHOLDERS OF THE ISSUER
(a "SECURITYHOLDER" or "YOU")

(collectively, the "PARTIES")

THIS AGREEMENT is being entered into by the Parties under National Policy 46-201
Escrow for Initial Public Offerings (the "POLICY") in connection with the
proposed distribution (the "IPO") by the Issuer, an established issuer, of its
shares of common stock, at par value of $0.0001 per share (the "COMMON STOCK")
by prospectus and by certain securityholders, (which exclude each of the
"Securityholders" named herein) (the PERMITTED SECONDARY OFFERING).

FOR GOOD AND VALUABLE CONSIDERATION, the Parties agree as follows:

PART 1 ESCROW

1.1  APPOINTMENT OF ESCROW AGENT

The Issuer and the Securityholders appoint the Escrow Agent to act as escrow
agent under this Agreement. The Escrow Agent accepts the appointment.

1.2  DEPOSIT OF ESCROW SECURITIES IN ESCROW

(1)  You are depositing the securities (ESCROW SECURITIES) listed opposite your
     name in Schedule "A", as of the date hereof, with the Escrow Agent to be
     held in escrow under this Agreement. You will immediately deliver or cause
     to be delivered to the Escrow Agent any share certificates or other
     evidence of these securities which you have or which you may later receive.

(2)  If you receive any other securities (ADDITIONAL ESCROW SECURITIES):

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     (a)  as a dividend or other distribution on escrow securities;

     (b)  on the exercise of a right of purchase, conversion or exchange
          attaching to escrow securities, including securities received on
          conversion of special warrants;

     (c)  on a subdivision, or compulsory or automatic conversion or exchange of
          escrow securities; or

     (d)  from a successor issuer in a business combination, if Part 6 of this
          Agreement applies,

     you will deposit them in escrow with the Escrow Agent. You will deliver or
     cause to be delivered to the Escrow Agent any share certificates or other
     evidence of those additional escrow securities. When this Agreement refers
     to ESCROW SECURITIES, it includes additional escrow securities.

(3)  You will immediately deliver to the Escrow Agent any replacement share
     certificates or other evidence of additional escrow securities issued to
     you.

1.3  DIRECTION TO ESCROW AGENT

The Issuer and the Securityholders direct the Escrow Agent to hold the escrow
securities in escrow until they are released from escrow under this Agreement.

PART 2 RELEASE OF ESCROW SECURITIES

2.1  RELEASE SCHEDULE FOR AN ESTABLISHED ISSUER

2.1.1 USUAL CASE

If the issuer is an ESTABLISHED ISSUER (as defined in Section 3.3 of the Policy)
and you have not sold any escrow securities in a permitted secondary offering,
your escrow securities will be released as follows:

<TABLE>
<S>                                <C>
On ____________, 2___, the date    1/4 of your escrow securities
the Issuer's securities are
listed on a Canadian exchange
(THE LISTING DATE)
6 months after the listing date    1/3 of your remaining escrow securities
12 months after the listing date   1/2 of your remaining escrow securities
18 months after the listing date   your remaining escrow securities
</TABLE>

*    In the simplest case, where there are no changes to the escrow securities
     initially deposited and no additional escrow securities, then the release
     schedule outlined above results in the escrow securities being released in
     equal tranches of 25%.

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2.1.2 ALTERNATE MEANING OF "LISTING DATE"

If the Issuer is an established issuer, an alternate meaning for LISTING DATE is
the date the Issuer completes its IPO if the Issuer's securities are listed on a
Canadian exchange immediately before its IPO.

2.1.3 IF THERE IS A PERMITTED SECONDARY OFFERING

(1)  If the Issuer is an established issuer and you have sold in a permitted
     secondary offering 25% or more of your escrow securities, your escrow
     securities will be released as follows:

<TABLE>
<S>                                <C>
For delivery to complete the IPO   All escrow securities sold by you
                                   in the permitted secondary offering
6 months after the listing date    1/3 of your remaining escrow securities
12 months after the listing date   1/2 of your remaining escrow securities
18 months after the listing date   your remaining escrow securities
</TABLE>

*    In the simplest case, where there are no changes to the remaining escrow
     securities upon completion of the permitted secondary offering and no
     additional escrow securities, the release schedule outlined above results
     in the remaining escrow securities being released in equal tranches of 33
     1/3%.

(2)  If the Issuer is an established issuer and you have sold in a permitted
     secondary offering less than 25% of your escrow securities, your escrow
     securities will be released as follows:

<TABLE>
<S>                                <C>
For delivery to complete the IPO   All escrow securities sold by you
                                   in the permitted secondary offering
On the listing date                1/4 of your original number of escrow
                                   securities less the escrow securities
                                   sold by you in the permitted secondary
                                   offering
6 months after the listing date    1/3 of your remaining escrow securities
12 months after the listing date   1/2 of your remaining escrow securities
18 months after the listing date   your remaining escrow securities
</TABLE>

*    In the simplest case, where there are no changes to the remaining escrow
     securities upon completion of the permitted secondary offering and no
     additional escrow securities, the release schedule outlined above results
     in the remaining escrow securities being released in equal tranches of 33
     1/3% after completion of the release on the listing date.

2.1.4 ADDITIONAL ESCROW SECURITIES

If you acquire additional escrow securities, those securities will be added to
the securities already in escrow, to increase the number of remaining escrow
securities. After that, all of the escrow securities will be released in
accordance with the applicable release schedule in the tables above.

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2.2  DELIVERY OF SHARE CERTIFICATES FOR ESCROW SECURITIES

The Escrow Agent will send to each Securityholder any share certificates or
other evidence of that Securityholder's escrow securities in the possession of
the Escrow Agent released from escrow as soon as reasonably practicable after
the release.

2.3  REPLACEMENT CERTIFICATES

If, on the date a Securityholder's escrow securities are to be released, the
Escrow Agent holds a share certificate or other evidence representing more
escrow securities than are to be released, the Escrow Agent will deliver the
share certificate or other evidence to the Issuer or its transfer agent and
request replacement share certificates or other evidence. The Issuer will cause
replacement share certificates or other evidence to be prepared and delivered to
the Escrow Agent. After the Escrow Agent receives the replacement share
certificates or other evidence, the Escrow Agent will send to the Securityholder
or at the Securityholder's direction, the replacement share certificate or other
evidence of the escrow securities released. The Escrow Agent and Issuer will act
as soon as reasonably practicable.

2.4  RELEASE UPON DEATH

(1)  If a Securityholder dies, the Securityholder's escrow securities will be
     released from escrow. The Escrow Agent will deliver any share certificates
     or other evidence of the escrow securities in the possession of the Escrow
     Agent to the Securityholder's legal representative.

(2)  Prior to delivery the Escrow Agent must receive:

     (a)  a certified copy of the death certificate; and

     (b)  any evidence of the legal representative's status that the Escrow
          Agent may reasonably require.

PART 3 DEALING WITH ESCROW SECURITIES

3.1  RESTRICTION ON TRANSFER, ETC.

Unless it is expressly permitted in this Agreement, you will not sell, transfer,
assign, mortgage, enter into a derivative transaction concerning, or otherwise
deal in any way with your escrow securities or any related share certificates or
other evidence of the escrow securities. If a Securityholder is a private
company controlled by one or more principals (as defined in Section 3.5 of the
Policy) of the Issuer, the Securityholder may not participate in a transaction
that results in a change of its control or a change in the economic exposure of
the principals to the risks of holding escrow securities.

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3.2  PLEDGE, MORTGAGE OR CHARGE AS COLLATERAL FOR A LOAN

You may pledge, mortgage or charge your escrow securities to a financial
institution as collateral for a loan, provided that no escrow securities or any
share certificates or other evidence of escrow securities will be transferred or
delivered by the Escrow Agent to the financial institution for this purpose. The
loan agreement must provide that the escrow securities will remain in escrow if
the lender realizes on the escrow securities to satisfy the loan.

3.3  VOTING OF ESCROW SECURITIES

You may exercise any voting rights attached to your escrow securities.

3.4  DIVIDENDS ON ESCROW SECURITIES

You may receive a dividend or other distribution on your escrow securities, and
elect the manner of payment from the standard options offered by the Issuer. If
the Escrow Agent receives a dividend or other distribution on your escrow
securities, other than additional escrow securities, the Escrow Agent will pay
the dividend or other distribution to you on receipt.

3.5  EXERCISE OF OTHER RIGHTS ATTACHING TO ESCROW SECURITIES

You may exercise your rights to exchange or convert your escrow securities in
accordance with this Agreement.

PART 4 PERMITTED TRANSFERS WITHIN ESCROW

4.1  TRANSFER TO DIRECTORS AND SENIOR OFFICERS

(1)  You may transfer escrow securities within escrow to existing or, upon their
     appointment, incoming directors or senior officers of the Issuer or any of
     its material operating subsidiaries, if the Issuer's board of directors has
     approved the transfer.

(2)  Prior to the transfer the Escrow Agent must receive:

     (a)  a certified copy of the resolution of the board of directors of the
          Issuer approving the transfer;

     (b)  a certificate signed by a director or officer of the Issuer authorized
          to sign, stating that the transfer is to a director or senior officer
          of the Issuer or a material operating subsidiary and that any required
          approval from the Canadian exchange the Issuer is listed on has been
          received;

     (c)  an acknowledgment in the form of Schedule "B" signed by the
          transferee;

     (d)  copies of the letters sent to the securities regulators described in
          subsection (3) accompanying the acknowledgement; and

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     (e)  a transfer power of attorney, completed and executed by the transferor
          in accordance with the requirements of the Issuer's transfer agent.

(3)  At least 10 days prior to the transfer, the Issuer will file a copy of the
     acknowledgement with the securities regulators in the jurisdictions in
     which it is a reporting issuer.

4.2  TRANSFER TO OTHER PRINCIPALS

(1)  You may transfer escrow securities within escrow:

     (a)  to a person or company that before the proposed transfer holds more
          than 20% of the voting rights attached to the Issuer's outstanding
          securities; or

     (b)  to a person or company that after the proposed transfer

          (i)  will hold more than 10% of the voting rights attached to the
               Issuer's outstanding securities, and

          (ii) has the right to elect or appoint one or more directors or senior
               officers of the Issuer or any of its material operating
               subsidiaries.

(2)  Prior to the transfer the Escrow Agent must receive:

     (a)  a certificate signed by a director or officer of the Issuer authorized
          to sign, stating that:

          (i)  the transfer is to a person or company that the officer believes,
               after reasonable investigation, holds more than 20% of the voting
               rights attached to the Issuer's outstanding securities before the
               proposed transfer; or

          (ii) the transfer is to a person or company that:

               (A)  the officer believes, after reasonable investigation, will
                    hold more than 10% of the voting rights attached to the
                    Issuer's outstanding securities; and

               (B)  has the right to elect or appoint one or more directors or
                    senior officers of the Issuer or any of its material
                    operating subsidiaries

               after the proposed transfer; and

          (iii) any required approval from the Canadian exchange the Issuer is
               listed on has been received;

     (b)  an acknowledgment in the form of Schedule "B" signed by the
          transferee;

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     (c)  copies of the letters sent to the securities regulators described in
          subsection (3) accompanying the acknowledgement; and

     (d)  a transfer power of attorney, completed and executed by the transferor
          in accordance with the requirements of the Issuer's transfer agent.

(3)  At least 10 days prior to the transfer, the Issuer will file a copy of the
     acknowledgement with the securities regulators in the jurisdictions in
     which it is a reporting issuer.

4.3  TRANSFER UPON BANKRUPTCY

(1)  You may transfer escrow securities within escrow to a trustee in bankruptcy
     or another person or company entitled to escrow securities on bankruptcy.

(2)  Prior to the transfer, the Escrow Agent must receive:

     (a)  a certified copy of either

          (i)  the assignment in bankruptcy filed with the Superintendent of
               Bankruptcy, or

          (ii) the receiving order adjudging the Securityholder bankrupt;

     (b)  a certified copy of a certificate of appointment of the trustee in
          bankruptcy;

     (c)  a transfer power of attorney, duly completed and executed by the
          transferor in accordance with the requirements of the Issuer's
          transfer agent; and

     (d)  an acknowledgment in the form of Schedule "B" signed by

          (i)  the trustee in bankruptcy, or

          (ii) on direction from the trustee, with evidence of that direction
               attached to the acknowledgement form, another person or company
               legally entitled to the escrow securities.

(3)  Within 10 days after the transfer, the transferee of the escrow securities
     will file a copy of the acknowledgement with the securities regulators in
     the jurisdictions in which the Issuer is a reporting issuer.

4.4  TRANSFER UPON REALIZATION OF PLEDGED, MORTGAGED OR CHARGED ESCROW
     SECURITIES

(1)  You may transfer within escrow to a financial institution the escrow
     securities you have pledged, mortgaged or charged under Section 3.2 to that
     financial institution as collateral for a loan on realization of the loan.

(2)  Prior to the transfer the Escrow Agent must receive:

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     (a)  a statutory declaration of an officer of the financial institution
          that the financial institution is legally entitled to the escrow
          securities;

     (b)  a transfer power of attorney, executed by the transferor in accordance
          with the requirements of the Issuer's transfer agent; and

     (c)  an acknowledgement in the form of Schedule "B" signed by the financial
          institution.

(3)  Within 10 days after the transfer, the transferee of the escrow securities
     will file a copy of the acknowledgement with the securities regulators in
     the jurisdictions in which the Issuer is a reporting issuer.

4.5  TRANSFER TO CERTAIN PLANS AND FUNDS

(1)  You may transfer escrow securities within escrow to or between a registered
     retirement savings plan (RRSP), registered retirement income fund (RRIF) or
     other similar registered plan or fund with a trustee, where the annuitant
     of the RRSP or RRIF, or the beneficiaries of the other registered plan or
     fund are limited to you and your spouse, children and parents or, if you
     are the trustee of such a registered plan or fund, to the annuitant of the
     RRSP or RRIF, or a beneficiary of the other registered plan or fund, as
     applicable, or his or her spouse, children and parents.

(2)  Prior to the transfer the Escrow Agent must receive:

     (a)  evidence from the trustee of the transferee plan or fund, or the
          trustee's agent, stating that, to the best of the trustee's knowledge,
          the annuitant of the RRSP or RRIF or the beneficiaries of the other
          registered plan or fund do not include any person or company other
          than you and your spouse, children and parents;

     (b)  a transfer power of attorney, executed by the transferor in accordance
          with the requirements of the Issuer's transfer agent; and

     (c)  an acknowledgement in the form of Schedule "B" signed by the trustee
          of the plan or fund.

(3)  Within 10 days after the transfer, the transferee of the escrow securities
     will file a copy of the acknowledgement with the securities regulators in
     the jurisdictions in which the Issuer is a reporting issuer.

4.6  EFFECT OF TRANSFER WITHIN ESCROW

After the transfer of escrow securities within escrow, the escrow securities
will remain in escrow and be released from escrow under this Agreement as if no
transfer has occurred, on the same

<PAGE>

terms that applied before the transfer. The Escrow Agent will not deliver any
share certificates or other evidence of the escrow securities to transferees
under this Part 4.

PART 5 BUSINESS COMBINATIONS

5.1  BUSINESS COMBINATIONS

This Part applies to the following (BUSINESS COMBINATIONS):

(a)  a formal take-over bid for all outstanding equity securities of the Issuer
     or which, if successful, would result in a change of control of the Issuer;

(b)  a formal issuer bid for all outstanding equity securities of the Issuer;

(c)  a statutory arrangement;

(d)  an amalgamation;

(e)  a merger; and

(f)  a reorganization that has an effect similar to an amalgamation or merger.

5.2  DELIVERY TO ESCROW AGENT

(1)  You may tender your escrow securities to a person or company in a business
     combination. At least five business days prior to the date the escrow
     securities must be tendered under the business combination, you must
     deliver to the Escrow Agent:

     (a)  a written direction signed by you that directs the Escrow Agent to
          deliver to the depositary under the business combination any share
          certificates or other evidence of the escrow securities and a
          completed and executed cover letter or similar document and, where
          required, transfer power of attorney completed and executed for
          transfer in accordance with the requirements of the depositary, and
          any other documentation specified or provided by you and required to
          be delivered to the depositary under the business combination; and

     (b)  any other information concerning the business combination as the
          Escrow Agent may reasonably require.

5.3  DELIVERY TO DEPOSITARY

(1)  As soon as reasonably practicable, and in any event no later than three
     business days after the Escrow Agent receives the documents and information
     required under Section 5.2, the Escrow Agent will deliver to the
     depositary, in accordance with the direction, any share certificates or
     other evidence of the escrow securities, and a letter addressed to the
     depositary that:

     (a)  identifies the escrow securities that are being tendered;

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     (b)  states that the escrow securities are held in escrow;

     (c)  states that the escrow securities are delivered only for the purposes
          of the business combination and that they will be released from escrow
          only after the Escrow Agent receives the information described in
          Section 5.4;

     (d)  if any share certificates or other evidence of the escrow securities
          have been delivered to the depositary, requires the depositary to
          return to the Escrow Agent, as soon as practicable, any share
          certificates or other evidence of escrow securities that are not
          released from escrow into the business combination; and

     (e)  where applicable, requires the depositary to deliver or cause to be
          delivered to the Escrow Agent, as soon as practicable, any share
          certificates or other evidence of additional escrow securities that
          you acquire under the business combination.

5.4  RELEASE OF ESCROW SECURITIES TO DEPOSITARY

(1)  The Escrow Agent will release from escrow the tendered escrow securities
     when the Escrow Agent receives a declaration signed by the depositary or,
     if the direction identifies the depositary as acting on behalf of another
     person or company in respect of the business combination, by that other
     person or company, that:

          (i)  the terms and conditions of the business combination have been
               met or waived; and

          (ii) the escrow securities have either been taken up and paid for or
               are subject to an unconditional obligation to be taken up and
               paid for under the business combination.

5.5  ESCROW OF NEW SECURITIES

(1)  If you receive securities (NEW SECURITIES) of another issuer (SUCCESSOR
     ISSUER) in exchange for your escrow securities, the new securities will be
     subject to escrow in substitution for the tendered escrow securities, if
     immediately after completion of the business combination:

     (a)  the successor issuer is not an exempt issuer (as defined in Section
          3.2 of the Policy);

     (b)  you are a principal (as defined in Section 3.5 of the Policy) of the
          successor issuer; and

     (c)  you hold more than 1% of the voting rights attached to the successor
          issuer's outstanding securities (in calculating this percentage,
          include securities that may be issued to you under outstanding
          convertible securities in both your securities and the total
          securities outstanding).

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5.6  RELEASE FROM ESCROW OF NEW SECURITIES

(1)  As soon as reasonably practicable after the Escrow Agent receives:

     (a)  a certificate from the successor issuer signed by a director or
          officer of the successor issuer authorized to sign

          (i)  stating that it is a successor issuer to the Issuer as a result
               of a business combination and whether it is an emerging issuer or
               an established issuer under the Policy; and

          (ii) listing the Securityholders whose new securities are subject to
               escrow under Section 5.5;

     the escrow securities of the Securityholders whose new securities are not
     subject to escrow under Section 5.5 will be released and the Escrow Agent
     will send any share certificates or other evidence of the escrow securities
     in the possession of the Escrow Agent in accordance with Section 2.2.

(2)  If your new securities are subject to escrow, unless subsection (3)
     applies, the Escrow Agent will hold your new securities in escrow on the
     same terms and conditions, including release dates, as applied to the
     escrow securities that you exchanged.

(3)  If the Issuer is:

     (a)  an emerging issuer, the successor issuer is an established issuer, and
          the business combination occurs 18 months or more after the Issuer's
          listing date, all escrow securities will be released immediately; and

     (b)  an emerging issuer, the successor issuer is an established issuer, and
          the business combination occurs within 18 months after the Issuer's
          listing date, all escrow securities that would have been released to
          that time, if the Issuer was an established issuer on its listing
          date, will be released immediately. Remaining escrow securities will
          be released in equal installments on the date that is 6 months, 12
          months and 18 months after the Issuer's listing date.

PART 6 RESIGNATION OF ESCROW AGENT

6.1  RESIGNATION OF ESCROW AGENT

(1)  If the Escrow Agent wishes to resign as escrow agent, the Escrow Agent will
     give written notice to the Issuer.

(2)  If the Issuer wishes to terminate the Escrow Agent as escrow agent, the
     Issuer will give written notice to the Escrow Agent.

<PAGE>

(3)  If the Escrow Agent resigns or is terminated, the Issuer will be
     responsible for ensuring that the Escrow Agent is replaced, not later than
     the resignation or termination date, by another escrow agent that is
     acceptable to the securities regulators having jurisdiction in the matter
     and that has accepted such appointment, which appointment will be binding
     on the Issuer and the Securityholders.

(4)  The resignation or termination of the Escrow Agent will be effective, and
     the Escrow Agent will cease to be bound by this Agreement, on the date that
     is 60 days after the date of receipt of the notices referred to above by
     the Escrow Agent or Issuer, as applicable, or on such other date as the
     Escrow Agent and the Issuer may agree upon (the "resignation or termination
     date"), provided that the resignation or termination date will not be less
     than 10 business days before a release date.

(5)  If the Issuer has not appointed a successor escrow agent within 60 days of
     the resignation or termination date, the Escrow Agent will apply, at the
     Issuer's expense, to a court of competent jurisdiction for the appointment
     of a successor escrow agent, and the duties and responsibilities of the
     Escrow Agent will cease immediately upon such appointment.

(6)  On any new appointment under this Section, the successor Escrow Agent will
     be vested with the same powers, rights, duties and obligations as if it had
     been originally named herein as Escrow Agent, without any further
     assurance, conveyance, act or deed. The predecessor Escrow Agent, upon
     receipt of payment for any outstanding account for its services and
     expenses then unpaid, will transfer, deliver and pay over to the successor
     Escrow Agent, who will be entitled to receive, all securities, records or
     other property on deposit with the predecessor Escrow Agent in relation to
     this Agreement, and the predecessor Escrow Agent will thereupon be
     discharged as Escrow Agent.

(7)  If any changes are made to Part 7 of this Agreement as a result of the
     appointment of the successor Escrow Agent, those changes must not be
     inconsistent with the Policy and the terms of this Agreement, and the
     Issuer to this Agreement will file a copy of the new Agreement with the
     securities regulators with jurisdiction over this Agreement and the escrow
     securities.

PART 7 OTHER CONTRACTUAL ARRANGEMENTS

7.1  ESCROW AGENT NOT A TRUSTEE

The Escrow Agent accepts duties and responsibilities under this Agreement, and
the escrow securities and any share certificates or other evidence of these
securities, solely as a custodian, bailee and agent. No trust is intended to be,
or is or will be, created hereby and the Escrow Agent shall owe no duties
hereunder as a trustee.

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7.2  ESCROW AGENT NOT RESPONSIBLE FOR GENUINENESS

The Escrow Agent will not be responsible or liable in any manner whatever for
the sufficiency, correctness, genuineness or validity of any escrow security
deposited with it.

7.3  ESCROW AGENT NOT RESPONSIBLE FOR FURNISHED INFORMATION

The Escrow Agent will have no responsibility for seeking, obtaining, compiling,
preparing or determining the accuracy of any information or document, including
the representative capacity in which a party purports to act, that the Escrow
Agent receives as a condition to a release from escrow or a transfer of escrow
securities within escrow under this Agreement.

7.4  ESCROW AGENT NOT RESPONSIBLE AFTER RELEASE

The Escrow Agent will have no responsibility for escrow securities that it has
released to a Securityholder or at a Securityholder's direction according to
this Agreement.

7.5  INDEMNIFICATION OF ESCROW AGENT

The Issuer and each Securityholder hereby jointly and severally agree to
indemnify and hold harmless the Escrow Agent, its affiliates, and their current
and former directors, officers, employees and agents from and against any and
all claims, demands, losses, penalties, costs, expenses, fees and liabilities,
including, without limitation, legal fees and expenses, directly or indirectly
arising out of, in connection with, or in respect of, this Agreement, except
where same result directly and principally from negligence, willful misconduct
or bad faith on the part of the Escrow Agent. This indemnity survives the
release of the escrow securities, the resignation or termination of the Escrow
Agent and the termination of this Agreement.

7.6  ADDITIONAL PROVISIONS

(1) The Escrow Agent will be protected in acting and relying reasonably upon any
notice, direction, instruction, order, certificate, confirmation, request,
waiver, consent, receipt, statutory declaration or other paper or document
(collectively referred to as "Documents") furnished to it and purportedly signed
by any officer or person required to or entitled to execute and deliver to the
Escrow Agent any such Document in connection with this Agreement, not only as to
its due execution and the validity and effectiveness of its provisions, but also
as to the truth or accuracy of any information therein contained, which it in
good faith believes to be genuine.

(2) The Escrow Agent will not be bound by any notice of a claim or demand with
respect thereto, or any waiver, modification, amendment, termination or
rescission of this Agreement unless received by it in writing, and signed by the
other Parties and approved by the securities regulators with jurisdiction as set
out in Section 9.6, and, if the duties or indemnification of the Escrow Agent in
this Agreement are affected, unless it has given its prior written consent.

(3) The Escrow Agent may consult with or retain such legal counsel and advisors
as it may reasonably require for the purpose of discharging its duties or
determining its rights under this Agreement and may rely and act upon the advice
of such counsel or advisor. Provided that the Escrow Agent has obtained the
prior written consent of the Issuer, the Issuer will pay or reimburse the Escrow
Agent for any reasonable fees, expenses and disbursements of such counsel or
advisors.

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(4) In the event of any disagreement arising under the terms of this Agreement,
the Escrow Agent will be entitled, at its option, to refuse to comply with any
and all demands whatsoever until the dispute is settled either by a written
agreement among the Parties or by a court of competent jurisdiction.

(5) The Escrow Agent will have no duties or responsibilities except as expressly
provided in this Agreement and will have no duty or responsibility under the
Policy or arising under any other agreement, including any agreement referred to
in this Agreement, to which the Escrow Agent is not a party.

(6) The Escrow Agent will have the right not to act and will not be liable for
refusing to act unless it has received clear and reasonable documentation that
complies with the terms of this Agreement. Such documentation must not require
the exercise of any discretion or independent judgment.

(7) The Escrow Agent is authorized to cancel any share certificate delivered to
it and hold such Securityholder's escrow securities in electronic or
uncertificated form only, pending release of such securities from escrow.

(8) The Escrow Agent will have no responsibility with respect to any escrow
securities in respect of which no share certificate or other evidence or
electronic or uncertificated form of these securities has been delivered to it,
or otherwise received by it.

7.7  LIMITATION OF LIABILITY OF ESCROW AGENT

The Escrow Agent will not be liable to any of the Parties hereunder for any
action taken or omitted to be taken by it under or in connection with this
Agreement, except for losses directly, principally and immediately caused by its
bad faith, willful misconduct or negligence. Under no circumstances will the
Escrow Agent be liable for any special, indirect, incidental, consequential,
exemplary, aggravated or punitive losses or damages hereunder, including any
loss of profits, whether foreseeable or unforeseeable.

7.8  REMUNERATION OF ESCROW AGENT

The Issuer will pay the Escrow Agent reasonable remuneration for its services
under this Agreement, which fees are subject to revision from time to time on 30
days' written notice. The Issuer will reimburse the Escrow Agent for its
reasonable expenses and disbursements. Any amount due under this Section and
unpaid 30 days after request for such payment, will bear interest from the
expiration of such period at a rate per annum equal to the then current rate
charged by the Escrow Agent, payable on demand.

<PAGE>

PART 8 NOTICES

8.1  NOTICE TO ESCROW AGENT

Documents will be considered to have been delivered to the Escrow Agent on the
next business day following the date of transmission, if delivered by fax, the
date of delivery, if delivered by hand during normal business hours or by
prepaid courier, or 5 business days after the date of mailing, if delivered by
mail, to the following:

Name and Address: Computershare Investor Services Inc.
                  100 University Avenue
                  8th Floor
                  Toronto, Ontario, M5J 2Y1
                  Canada
Attn:             Manager, Client Services
Fax:              (416) 981-9800

8.2  NOTICE TO ISSUER

Documents will be considered to have been delivered to the Issuer on the next
business day following the date of transmission, if delivered by fax, the date
of delivery, if delivered by hand during normal business hours or by prepaid
courier, or 5 business days after the date of mailing, if delivered by mail, to
the following:

Name and Address: World Energy Solutions, Inc.
                  446 Main Street
                  Worcester, MA 01608
                  United States
Attn:             Philip V. Adams
Fax:              (508) 459-8101

8.3  DELIVERIES TO SECURITYHOLDERS

Documents will be considered to have been delivered to a Securityholder on the
date of delivery, if delivered by hand or by prepaid courier, or 5 business days
after the date of mailing, if delivered by mail, to the address on the Issuer's
share register.

Any share certificates or other evidence of a Securityholder's escrow securities
will be sent to the Securityholder's address on the Issuer's share register
unless the Securityholder has advised the Escrow Agent in writing otherwise at
least ten business days before the escrow securities are released from escrow.
The Issuer will provide the Escrow Agent with each Securityholder's address as
listed on the Issuer's share register.

8.4  CHANGE OF ADDRESS

(1)  The Escrow Agent may change its address for delivery by delivering notice
     of the change of address to the Issuer and to each Securityholder.

<PAGE>

(2)  The Issuer may change its address for delivery by delivering notice of the
     change of address to the Escrow Agent and to each Securityholder.

(3)  A Securityholder may change that Securityholder's address for delivery by
     delivering notice of the change of address to the Issuer and to the Escrow
     Agent.

8.5  POSTAL INTERRUPTION

A Party to this Agreement will not mail a document it is required to mail under
this Agreement if the Party is aware of an actual or impending disruption of
postal service.

PART 9 GENERAL

9.1  INTERPRETATION - "HOLDING SECURITIES"

When this Agreement refers to securities that a Securityholder "holds", it means
that the Securityholder has direct or indirect beneficial ownership of or
control or direction over the securities.

9.2  FURTHER ASSURANCES

The Parties will execute and deliver any further documents and perform any
further acts reasonably requested by any of the Parties to this Agreement which
are necessary to carry out the intent of this Agreement.

9.3  TIME

Time is of the essence of this Agreement.

9.4  INCOMPLETE IPO

If the Issuer does not complete its IPO and has become a reporting issuer in one
or more jurisdictions because it has obtained a receipt for its IPO prospectus,
this Agreement will remain in effect until the securities regulators in those
jurisdictions order that the Issuer has ceased to be a reporting issuer.

9.5  GOVERNING LAWS

The laws of the province of Ontario (the "PRINCIPAL REGULATOR") and the
applicable laws of Canada will govern this Agreement.

9.6  JURISDICTION

The securities regulator in each jurisdiction where the Issuer files its IPO
prospectus has jurisdiction over this Agreement and the escrow securities.

<PAGE>

9.7  CONSENT OF SECURITIES REGULATORS TO AMENDMENT

Except for amendments made under Part 3, the securities regulators with
jurisdiction must approve any amendment to this Agreement and will apply mutual
reliance principles in reviewing any amendments that are filed with them.
Therefore, the consent of the Principal Regulator will evidence the consent of
all securities regulators with jurisdiction.

9.8  COUNTERPARTS

The Parties may execute this Agreement by fax and in counterparts, each of which
will be considered an original and all of which will be one agreement.

9.9  SINGULAR AND PLURAL

Wherever a singular expression is used in this Agreement, that expression is
considered as including the plural or the body corporate where required by the
context.

9.10 LANGUAGE

This Agreement has been drawn up in the English language at the request of all
parties. Cette convention a ete redige en anglais a la demande de toutes les
Parties.

9.11 BENEFIT AND BINDING EFFECT

This Agreement will benefit and bind the Parties and their heirs, executors,
administrators, successors and permitted assigns and all persons claiming
through them as if they had been a Party to this Agreement.

9.12 ENTIRE AGREEMENT

This is the entire agreement among the Parties concerning the subject matter set
out in this Agreement and supersedes any and all prior understandings and
agreements.

9.13 SUCCESSOR TO ESCROW AGENT

Any corporation with which the Escrow Agent may be amalgamated, merged or
consolidated, or any corporation succeeding to the business of the Escrow Agent
will be the successor of the Escrow Agent under this Agreement without any
further act on its part or on the part of any of the Parties, provided that the
successor is recognized as a transfer agent by the Canadian exchange the Issuer
is listed on and notice is given to the securities regulators with jurisdiction.
<PAGE>

9.14 TERMINATION

This escrow agreement shall terminate upon the disbursement by the Escrow Agent
of all of the securities held in escrow in accordance with this escrow
agreement; provided, however, that the provisions of Part 7 shall survive such
termination.

The Parties have executed and delivered this Agreement as of the date set out
above.

COMPUTERSHARE INVESTOR SERVICES INC.

/s/ Graham Sheward
------------------------------------
Authorized signatory

/s/ Kevin Beninger
------------------------------------
Authorized signatory

WORLD ENERGY SOLUTIONS, INC.

/s/ James F. Parslow
------------------------------------
Authorized signatory

/s/ Philip V. Adams
------------------------------------
Authorized signatory

                                           )
                                           )
Signed, sealed and delivered by            )
RICHARD DOMALESKI in the presence of:      )
                                           )
                                           )
/s/ Philip V. Adams                        )   /s/ Richard Domaleski
------------------------------------       )   ---------------------------------
Signature of Witness                       )   RICHARD DOMALESKI
                                           )
/s/ Philip V. Adams                        )
------------------------------------       )
Name of Witness                            )

<PAGE>

                                           )
                                           )
Signed, sealed and delivered by            )
NICHOLAS ZALDASTANI in the presence of:    )
                                           )
                                           )
/s/ illegible                              )   /s/ Nicholas Zaldastani
------------------------------------       )   ---------------------------------
Signature of Witness                       )   NICHOLAS ZALDASTANI
                                           )
illegible                                  )
------------------------------------       )
Name of Witness                            )

                                           )
Signed, sealed and delivered by            )
PHILIP ADAMS in the presence of:           )
                                           )
                                           )
/s/ Richard Domaleski                      )   /s/ Philip Adams
------------------------------------       )   ---------------------------------
Signature of Witness                       )   PHILIP ADAMS
                                           )
Richard Domaleski                          )
------------------------------------       )
Name of Witness                            )

                                           )
Signed, sealed and delivered by            )
EDWARD LIBBEY in the presence of:          )
                                           )
                                           )
/s/ Dianne Libbey                          )   /s/ Edward Libbey
------------------------------------       )   ---------------------------------
Signature of Witness                       )   EDWARD LIBBEY
                                           )
Dianne Libbey                              )
------------------------------------       )
Name of Witness                            )

                                           )
Signed, sealed and delivered by            )
PATRICK BISCHOFF in the presence of:       )
                                           )
                                           )
/s/ Theodore Carey                         )   /s/ Patrick Bischoff
------------------------------------       )   ---------------------------------
Signature of Witness                       )   PATRICK BISCHOFF
                                           )
Theodore Carey                             )
------------------------------------       )
Name of Witness                            )

<PAGE>

Signed, sealed and delivered by          )
ROMAN HOLDINGS TRUST in the presence of: )
                                         )
                                         )
/s/ Susan A. Clemente                    ) /s/ David T. Bunker
------------------------------------     ) ---------------------------------
Signature of Witness                     ) DAVID T. BUNKER, TRUSTEE NOT
                                         ) INDIVIDUALLY
Susan A. Clemente                        )
------------------------------------     )
Name of Witness                          )

                                         )
Signed, sealed and delivered by          )
ROMAN HOLDINGS TRUST in the presence of: )
                                         )
                                         )
/s/ Scott L. Sweeney                     ) /s/ Dana Domaleski
------------------------------------     ) ---------------------------------
Signature of Witness                     ) DANA DOMALESKI, TRUSTEE
                                         )
Scott L. Sweeney                         )
------------------------------------     )
Name of Witness                          )
<PAGE>

                       SCHEDULE "A" - TO ESCROW AGREEMENT

SECURITYHOLDER

NAME: RICHARD DOMALESKI/ROMAN HOLDINGS TRUST

SECURITIES: COMMON STOCK

ADDRESS FOR NOTICE:

Richard Domaleski      473 Whittimore Street, Leicester, MA 01514

Roman Holdings Trust   2935 Barrymore Court, Orlando, FL 32835

SECURITIES:

<TABLE>
<CAPTION>
CLASS OR DESCRIPTION                 NUMBER       CERTIFICATE(S) (IF APPLICABLE)
--------------------               ----------     ------------------------------
<S>                                <C>            <C>
Common Stock                       19,145,000(1)  149 (voting) - Roman Holdings
                                                  Trust
                                                  181 (voting) - Domaleski
</TABLE>

Note:

(1)  Includes 145,000 shares held in the name of Mr. Domaleski and 19,000,000
     shares held by Dana Domaleski and David T. Bunker, as co-trustees of the
     Roman Holdings Trust, of which Mr. Domaleski is the principal beneficiary.
     The trustees disclaim beneficial ownership of these shares.

SECURITYHOLDER

NAME: NICHOLAS ZALDASTANI

SECURITIES: COMMON STOCK AND WARRANTS

ADDRESS FOR NOTICE:

2699 Filbert Street, San Francisco, CA 94123

SECURITIES:

<TABLE>
<CAPTION>
CLASS OR DESCRIPTION                 NUMBER       CERTIFICATE(S) (IF APPLICABLE)
--------------------               ----------     ------------------------------
<S>                                <C>            <C>
Common Stock                        2,507,928     12 (non-voting)
                                                  4, 5, 15 (all voting)
Warrants (exercisable for shares
  of common stock)                    410,959     4, 5, 25
</TABLE>

<PAGE>

SECURITYHOLDER

NAME: PHILIP ADAMS

SECURITIES: COMMON STOCK AND OPTIONS

ADDRESS FOR NOTICE:

125 Central Street, Concord, MA 01742

SECURITIES:

<TABLE>
<CAPTION>
CLASS OR DESCRIPTION                 NUMBER       CERTIFICATE(S) (IF APPLICABLE)
--------------------               ----------     ------------------------------
<S>                                <C>            <C>
Common Stock                        1,650,000     2, 15 (all non-voting)
Options (exercisable for shares
   of common stock)                   850,000
</TABLE>

SECURITYHOLDER

NAME: EDWARD LIBBEY

SECURITIES: COMMON STOCK, OPTIONS AND WARRANTS

ADDRESS FOR NOTICE:

Flat 3C, River View Heights, 27 Bermondsey Wall West, London, SE16 4TN, England

SECURITIES:

<TABLE>
<CAPTION>
CLASS OR DESCRIPTION                 NUMBER       CERTIFICATE(S) (IF APPLICABLE)
--------------------               ----------     ------------------------------
<S>                                <C>            <C>
Common Stock                        1,571,051(2)  23 (Dianne Libbey), 24, 157,
                                                  189 (all voting)
                                                  3 (Series A)
Options (exercisable for shares
   of common stock)                   300,000
Warrants (exercisable for shares
   of common stock)                    27,397     3
</TABLE>

Note:

(2)  Includes 703,000 shares of common stock held in the name of Mr. Libbey's
     wife, Dianne Libbey.

<PAGE>

SECURITYHOLDER

NAME: PATRICK BISCHOFF

SECURITIES: COMMON STOCK

ADDRESS FOR NOTICE:

9400 Laguna Niguel Drive, #102, Las Vegas, NV 89134

SECURITIES:

<TABLE>
<CAPTION>
CLASS OR DESCRIPTION                 NUMBER       CERTIFICATE(S) (IF APPLICABLE)
--------------------               ----------     ------------------------------
<S>                                <C>            <C>
Common Stock                       924,339(3)     50 (Series A)
</TABLE>

Note:

(3)  Consists of shares held by Spinnaker Ventures LLC, of which Mr. Bischoff is
     the managing director and sole stockholder and over which he holds voting
     and investment power. Spinnaker Ventures LLC is owned by the Bischoff
     Alaska Irrevocable Trust of which Mr. Bischoff is a trustee. Mr. Bischoff
     disclaims beneficial ownership of these shares.

<PAGE>

                       SCHEDULE "B" - TO ESCROW AGREEMENT

ACKNOWLEDGEMENT AND AGREEMENT TO BE BOUND

I acknowledge that the securities listed in the attached Schedule "A" (the
"escrow securities") have been or will be transferred to me and that the escrow
securities are subject to an Escrow Agreement dated ______________________, 2006
(the "Escrow Agreement").

For other good and valuable consideration, I agree to be bound by the Escrow
Agreement in respect of the escrow securities, as if I were an original
signatory to the Escrow Agreement.

Dated at __________________ on _________

Where the Transferee is an individual:   )
                                         )
Signed, sealed and delivered by          )
[TRANSFEREE] in the presence of:         )
                                         )
                                         )
--------------------------------------   )   -----------------------------------
Signature of Witness                     )   [TRANSFEREE]
                                         )
--------------------------------------   )
Name of Witness                          )

Where the Transferee is not an
individual:

[TRANSFEREE]

--------------------------------------
Authorized signatory

--------------------------------------
Authorized signatory<PAGE>
                                                                   EXHIBIT 10.17

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY
STATE SECURITIES LAWS AND MAY NOT BE SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT AND
LAWS.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                          WORLD ENERGY SOLUTIONS, INC.

                                   Expires [ ]

No.  [ ]

                                                                       [ ], 2006

         FOR VALUE RECEIVED, subject to the provisions hereinafter set forth,
the undersigned, World Energy Solutions, Inc., a Delaware corporation (together
with its successors and assigns, the "Issuer"), hereby certifies that

                             SPROTT SECURITIES INC.

or its registered assigns is entitled to subscribe for and purchase at an
initial exercise price of C$_____ per share (the "Warrant Price"), during the
period specified in this Warrant, 1,000,000 shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and
non-assessable shares of common stock, $0.0001 par value per share of the Issuer
(the "Warrant Stock") all subject to adjustment and upon the terms and
conditions as hereinafter provided. Capitalized terms used in this Warrant and
not otherwise defined herein shall have the respective meanings specified in
Section 7 hereof.

         1. Term. The right to subscribe for and purchase shares of Warrant
Stock represented hereby shall commence on the one year anniversary of the date
hereof and shall expire at 5:00 P.M., Eastern Time, on [ ], being 18 months
following the one year anniversary of the date hereof (such period being the
"Term").

         2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and
Exchange.

               (a) Time of Exercise. The purchase rights represented by this
Warrant may be exercised in whole or in part at any time and from time to time
during the Term.

               (b) Method of Exercise. The Holder hereof may exercise this
Warrant, in whole or in part, by the surrender of this Warrant (with the
exercise form attached hereto duly

<PAGE>

completed and executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election by certified or official bank check
or wire transfer of immediately available funds.

               (c) Cashless Exercise. The Holder hereof may exercise this
Warrant, in whole or in part, by the surrender of this Warrant (with the
exercise form attached hereto duly executed) pursuant to a Cashless Exercise (as
defined below). For the purposes of this Warrant, "Cashless Exercise" shall mean
an event whereby the Company shall issue to the Holder the number of shares of
Warrant Stock determined as follows:

                            N =      B-A
                                  ---------
                                      Y

where:

N = Number of shares of Common Stock to be issued to the Holder

Y = the Fair Market Value of one share of Common Stock

A = the aggregate Warrant Price

         (i.e., Number of shares of Common Stock for which the Warrant is
exercised multiplied by the Warrant Price per share)

B = the aggregate Fair Market Value

         (i.e., Fair Market Value per share of Common Stock multiplied by the
number of shares of Common Stock for which the Warrant is exercised)

                     For purposes of the calculation above, "Fair Market Value"
of one share of Warrant Stock shall mean, as of any date: (a) the fair market
value of a share of Common Stock, as determined from the average of the closing
prices per share of the Common Stock over the preceding 5 trading days on the
Toronto Stock Exchange or, if the majority of shares of Common Stock are not so
traded as of the time of exercise, the principal securities exchange on which
the Common Stock is listed or admitted to trading, or (b) if such quotations are
not available, the fair market value per share of the Common Stock on the date
such notice was received by the Company as reasonably determined in good faith
by the Board of Directors of the Company.

               (d) Issuance of Stock Certificates. In the event of any exercise
of the rights represented by this Warrant in accordance with and subject to the
terms and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof as soon as practicable after such exercise, and

                                      -2-
<PAGE>

the Holder hereof shall be deemed for all purposes to be the Holder of the
shares of Warrant Stock so purchased as of the date of such exercise, and (ii)
unless this Warrant has expired, a new Warrant representing the number of shares
of Warrant Stock, if any, with respect to which this Warrant shall not then have
been exercised (less any amount thereof which shall have been cancelled in
payment or partial payment of the Warrant Price as hereinabove provided) shall
also be issued to the Holder hereof within such time.

               (e) Transferability of Warrant; Warrant Stock. Subject to
applicable laws, rules and regulations and the provisions of this Section 2(e)
and of Section 2(f) hereof, this Warrant may be transferred on the books of the
Issuer upon surrender of this Warrant by the Holder hereof in person or by duly
authorized attorney at the principal office of the Issuer, properly endorsed (by
the Holder executing an assignment in the form attached hereto) and upon payment
of any necessary transfer tax or other governmental charge imposed upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants for the purchase of the same aggregate number of shares of Warrant
Stock, each new Warrant to represent the right to purchase such number of shares
of Warrant Stock as the Holder hereof shall designate at the time of such
exchange. All Warrants issued on transfers or exchanges shall be dated the
Closing Date as if they had been issued at such date and shall be identical to
this Warrant except as to the number of shares of Warrant Stock issuable
pursuant hereto.

               (f) Compliance with Securities Laws.

                     (i) The Holder of this Warrant, by acceptance hereof,
acknowledges that this Warrant and the shares of Warrant Stock to be issued upon
exercise hereof are being acquired solely for the Holder's own account and not
as a nominee for any other party, and for investment, and that the Holder will
not offer, sell or otherwise dispose of this Warrant or any shares of Warrant
Stock to be issued upon exercise hereof except pursuant to an effective
registration statement, or an exemption from registration, under the Securities
Act and any applicable state securities laws.

                     (ii) Except as provided in paragraph (iii) below, this
Warrant and all certificates representing shares of Warrant Stock issued upon
exercise hereof shall be stamped or imprinted with a legend in substantially the
following form:

         "THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
         HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED, OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD EXCEPT
         PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR AN EXEMPTION FROM
         REGISTRATION, UNDER SAID ACT AND LAWS.

                     (iii) The restrictions imposed by this Section 2(f) upon
the transfer of this Warrant and the shares of Warrant Stock to be purchased
upon exercise hereof shall terminate (A) when such securities shall have been
effectively registered under the Securities Act, or (B) upon the Issuer's
receipt of an opinion of counsel, in form and substance reasonably satisfactory
to the Issuer, addressed to the Issuer to the effect that such restrictions are
no longer required to ensure compliance with the Securities Act. Whenever such
restrictions

                                      -3-
<PAGE>

shall cease and terminate as to any such securities, the Holder thereof shall be
entitled to receive from the Issuer (or its transfer agent and registrar),
without expense (other than applicable transfer taxes, if any), new Warrants
(or, in the case of shares of Warrant Stock, new stock certificates) of like
tenor not bearing the legend required by paragraph (ii) above relating to the
Securities Act and state securities laws.

               (g) Continuing Rights of Holder. The Issuer will, at the time of
or at any time after each exercise of this Warrant, upon the request of the
Holder hereof or of any shares of Warrant Stock issued upon such exercise,
acknowledge in writing the extent, if any, of its continuing obligation to
afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant,
provided that if any such Holder shall fail to make any such request, the
failure shall not affect the continuing obligation of the Issuer to afford such
rights to such Holder.

               (h) Recapitalization, Reorganization, Reclassification,
Consolidation, Merger or Sale.

                     (i) Without limiting any other provision hereof, in case
the Issuer after the Closing Date shall do any of the following (each a
"Triggering Event") (a) consolidate with or merge into any other Person and the
Issuer shall not be the continuing or surviving corporation of such
consolidation or merger, or (b) permit any other Person to consolidate with or
merge into the Issuer and the Issuer shall be the continuing or surviving Person
but, in connection with such consolidation or merger, any Capital Stock of the
Issuer shall be changed into or exchanged for securities of any other Person or
cash or any other property, or (c) transfer all or substantially all of its
properties or assets to any other Person, or (d) effect a capital reorganization
or reclassification of its Capital Stock, or (e) enter into any other
transaction similar to any of the foregoing, then, and in the case of each such
Triggering Event, proper provision shall be made so that, upon the basis and the
terms and in the manner provided in this Warrant, the Holder of this Warrant
shall be entitled upon the exercise hereof at any time after the consummation of
such Triggering Event, to the extent this Warrant is not exercised prior to such
Triggering Event, or is not redeemed in connection with such Triggering Event,
to receive at the Warrant Price in effect at the time immediately prior to the
consummation of such Triggering Event in lieu of the Common Stock issuable upon
such exercise of this Warrant prior to such Triggering Event, the securities,
cash and property to which such Holder would have been entitled upon the
consummation of such Triggering Event if such Holder had exercised the rights
represented by this Warrant immediately prior thereto, subject to adjustments
(subsequent to such corporate action) as nearly equivalent as possible to the
adjustments provided for in Section 4 hereof. The Issuer shall give reasonable
prior notice (but no less than 5 Business Days' prior notice) of any Triggering
Event to the Holder of this Warrant in accordance with Section 10 hereof.

                     (ii) Notwithstanding anything contained in this Warrant to
the contrary, the Issuer will not effect any Triggering Event unless, prior to
the consummation thereof, each Person (other than the Issuer) which may be
required to deliver any securities, cash or property upon the exercise of this
Warrant as provided herein, shall,by written instrument delivered to, and
reasonably satisfactory to, the Holder, assume the obligations of the Issuer
under this Warrant (and if the Issuer shall survive the consummation of such
Triggering Event,

                                      -4-

<PAGE>

such assumption shall be in addition to, and shall not release the Issuer from,
any continuing obligations of the Issuer under this Warrant) provided, however,
that the failure to so assume such obligations shall not affect the validity of,
or give to any party a right to challenge, the Triggering Event.

         3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

               (a) The Issuer represents, warrants, covenants and agrees that
all shares of Warrant Stock which may be issued upon the exercise of this
Warrant, will, upon issuance, be duly authorized, validly issued, fully paid and
non-assessable and free from all taxes, liens and charges created by or through
the Issuer with respect to issuance (other than restrictions under federal and
state securities laws). The Issuer further covenants and agrees that during the
Term, the Issuer will at all times have authorized and reserved a sufficient
number of shares of Common Stock to provide for the exercise of this Warrant.

               (b) If any shares of the Common Stock required to be reserved for
issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its reasonable best efforts as expeditiously as possible at its
expense to cause such shares to be duly registered or qualified. To the extent
permissible under the applicable securities exchange rules, if the Issuer shall
list any shares of Common Stock on any securities exchange it will, at its
expense, list thereon, maintain and increase when necessary such listing of, all
shares of Warrant Stock from time to time issued upon exercise of this Warrant
or as otherwise provided hereunder and unissued shares of Warrant Stock which
are at any time issuable hereunder, so long as any shares of Common Stock shall
be so listed. The Issuer will also list on any such securities exchange, and
will maintain such listing of, any other securities which the Holder of this
Warrant shall be entitled to receive upon the exercise of this Warrant, if at
the time, any securities of the same class shall be listed on such securities
exchange by the Issuer.

               (c) The Issuer shall not by any action including, without
limitation, amending its Certificate of Incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
actions as may be necessary or appropriate to protect the rights of the Holder
hereof against impairment. Without limiting the generality of the foregoing,
without the consent of the Requisite Holders, the Issuer will (i) not permit the
par value, if any, of its Common Stock to exceed the then effective Warrant
Price, (ii) not amend or modify any provision of the Certificate of
Incorporation or by-laws of the Issuer in any manner that would adversely affect
in any way the powers, preferences or relative participating, optional or other
special rights of the Holders of the Warrants disproportionately in relation to
the holders of the Common Stock, (iii) take all such action as may be reasonably
necessary in order that the Issuer may validly and legally issue fully paid and
nonassessable shares of Common Stock, free and clear of any liens, claims,
encumbrances and restrictions (other than as provided herein and restrictions
under federal and state securities laws) created by or through Issuer with
respect to such issuance upon the exercise of this Warrant, and (iv) use its
reasonable best efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
necessary to enable the Issuer to perform its obligations under this Warrant.

                                      -5-
<PAGE>

         4. Adjustment of Warrant Price and Warrant Stock Number. The Warrant
Stock Number and the Warrant Price shall be subject to adjustment from time to
time upon the happening of certain events, and the Holder hereof shall have
additional rights, as follows:

               (a) Subdivision or Combination of Shares. If the Issuer, at any
time while this Warrant is outstanding, shall subdivide or combine any shares of
Common Stock, (i) in case of subdivision of shares, the Warrant Stock Number
shall be proportionately increased (as at the effective date of such
subdivision) to reflect the increase in the total number of shares of Common
Stock outstanding as a result of such subdivision, or (ii) in the case of a
combination of shares, the Warrant Stock Number shall be proportionately reduced
(as at the effective date of such combination) to reflect the reduction in the
total number of shares of Common Stock outstanding as a result of such
combination.

               (b) Certain Dividends and Distributions. If the Issuer, at any
time while this Warrant is outstanding, shall pay a dividend in, or make any
other distribution to its stockholders (without consideration therefor) of,
shares of Common Stock the Warrant Stock Number shall be adjusted, as at the
date of such payment or other distribution), to that number determined by
multiplying the Warrant Stock Number in effect immediately prior to such payment
or other distribution, by a fraction (1) the numerator of which shall be the
total number of shares of Common Stock outstanding immediately after such
dividend or distribution (plus in the event that the Issuer paid cash for
fractional shares, the number of additional shares which would have been
outstanding had the Issuer issued fractional shares in connection with said
dividends), and (2) the denominator of which shall be the total number of shares
of Common Stock outstanding immediately prior to such dividend or distribution.

               (c) Other Action Affecting Common Stock. In case after the
Closing Date, the Issuer shall take any action affecting its Common Stock, and
the failure to make any adjustment would not fairly protect the purchase rights
represented by this Warrant in accordance with the essential intent and
principle of this Section 4, then the Warrant Stock Number shall be adjusted in
such manner and at such time as the Board may in good faith determine to be
equitable in the circumstances.

               (d) Adjustment of Warrant Price. Upon each adjustment in the
Warrant Stock Number pursuant to any of the foregoing provisions of this Section
4, the Warrant Price shall be adjusted, to the nearest ten thousandth of one
cent, to the product obtained by multiplying the Warrant Price immediately prior
to such adjustment in the Warrant Stock Number by a fraction, the numerator of
which shall be the Warrant Stock Number immediately before giving effect to such
adjustment and the denominator of which shall be the Warrant Stock Number
immediately after giving effect to such adjustment; provided, however, that if
at any time, as a result of any adjustments hereunder, the Warrant Price shall
be less than the par value per share of Warrant Stock, then the price payable
per share of Warrant Stock by the Holder hereunder in the event of an exercise
of this Warrant at such time in whole or in part shall be an amount equal to the
par value per share of such Warrant Stock.

         5. Notice of Adjustments. Whenever the Warrant Price or Warrant Stock
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, an "adjustment"), the Issuer shall cause its Chief Financial Officer
to prepare and execute a

                                      -6-
<PAGE>

certificate setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment
was calculated (including a description of the basis on which the Board made any
determination hereunder), and the Warrant Price and Warrant Stock Number after
giving effect to such adjustment, and shall cause copies of such certificate to
be delivered to the Holder promptly after each adjustment. Any dispute between
the Issuer and the Holder with respect to the matters set forth in such
certificate may at the option of the Holder, at its expense, be submitted to the
Company's independent registered accounting firm, which firm shall be requested
to deliver a written opinion as to such matters to the Issuer and the Holder
within thirty days after submission to it of such dispute. Such opinion shall be
final and binding on the parties hereto.

         6. Fractional Shares. No fractional shares of Warrant Stock will be
issued in connection with any exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefor equal in amount to the
fair market value of such fractional shares.

         7. Definitions. For the purposes of this Warrant, the following terms
have the following meanings:

         "Affiliate" means, with respect to any Person, (a) each Person that,
directly or indirectly, owns or controls, whether beneficially, or as a trustee,
guardian or other fiduciary, 5% or more of the Voting Stock of such Person, (b)
each Person that controls, is controlled by or is under common control with such
Person, (c) each of such Person's officers, directors, joint venturers and
partners and (d) in the case of the Issuer, the immediate family members,
spouses and lineal descendants of individuals who are Affiliates of the Issuer.
For the purposes of this definition, "control" of a Person shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of its management or policies, whether through the ownership of voting
securities, by contract or otherwise.

         "Board" shall mean the Board of Directors of the Issuer.

         "Business Day" means any day except a Saturday, a Sunday, legal holiday
in New York City or a day on which banking institutions are closed.

         "Capital Stock" means and includes (i) any and all shares, interests,
participations or other equivalents of or interests in (however designated)
corporate stock, including, without limitation, shares of preferred or
preference stock, (ii) all partnership interests (whether general or limited) in
any Person which is a partnership, (iii) all membership interests or limited
liability company interests in any limited liability company, and (iv) all
equity or ownership interests in any Person of any other type.

         "Certificate of Incorporation" means the Certificate of Incorporation
of the Issuer as in effect on the Closing Date, and as hereafter from time to
time amended, modified, supplemented or restated in accordance with its terms
and pursuant to applicable law.

         "Closing Date" means [ ].

         "Common Stock" means the Common Stock of the Issuer, par value $0.0001
per share, and any other Capital Stock into which such stock may hereafter be
changed.

                                      -7-

<PAGE>

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any similar federal statute at the time in effect.

         "Holders" mean the Persons who shall from time to time own any Warrant.
The term "Holder" means one of the Holders.

         "Independent Appraiser" means a nationally recognized investment
banking firm or other nationally recognized firm, in each case, that is
regularly engaged in the business of appraising the Capital Stock or assets of
corporations or other entities as going concerns, and which is not affiliated
with either the Issuer or the Holder.

         "Issuer" has the meaning specified in the first paragraph hereof.

         "Person" means an individual, a corporation, a partnership, a trust, a
limited liability company, an unincorporated organization or a government
organization or an agency or political subdivision thereof.

         "Requisite Holders" means at any time the Holders of Warrants (other
than the Issuer or any Subsidiary thereof) exercisable for a majority of the
shares of Warrant Stock issuable under the Warrants at the time outstanding.

         "Securities" means any debt or equity securities of the Issuer, whether
now or hereafter authorized, any instrument convertible into or exchangeable for
Securities or a Security, and any option, warrant or other right to purchase or
acquire any Security. "Security" means one of the Securities.

         "Securities Act" means the Securities Act of 1933, as amended, or any
similar federal statute then in effect.

         "Subsidiary" means any corporation at least 50% of whose outstanding
Voting Stock shall at the time be owned directly or indirectly by the Issuer or
by one or more of its Subsidiaries, or by the Issuer and one or more of its
Subsidiaries.

         "Voting Stock", any class or classes (however designated) of Capital
Stock having ordinary voting power for the election of a majority of the members
of the Board (or other governing body) of the corporation, other than Capital
Stock having such power only by reason of the happening of a contingency.

         "Warrants" means this Warrant and any other warrants of like tenor
issued in substitution or exchange for any thereof pursuant to the provisions of
Section 2(d) or 2(e) hereof or of any of such other Warrants.

         "Warrant Price" means the exercise price per share of Common Stock
specified in the first paragraph of this Warrant and such other exercise prices
as shall result from the adjustments specified in Section 4 hereof.

         "Warrant Stock Number" means at any time the aggregate number of shares
of Warrant Stock which may at such time be purchased upon exercise of this
Warrant (without

                                      -8-
<PAGE>

regard to the exercisability of the Warrant pursuant to Section 5), after giving
effect to all prior adjustments to such number made or required to be made under
the terms hereof.

         "Warrant Stock" means Common Stock issuable upon exercise of any
Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

         8. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Requisite Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Stock Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised, change the manner
of payment of the Warrant Price or modify any provision of this Section 8
without the consent of the Holder of this Warrant.

         9. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
CONFLICTS OF LAW PRINCIPLES THEREOF.

         10. Notices. All notices and other communications provided for
hereunder shall be in writing and delivered by hand or sent by first class
registered mail, return receipt requested, or sent by telecopy (with such
telecopy to be confirmed promptly in writing sent by first class registered
mail, return receipt requested), and if to the Holder of this Warrant or of
Warrant Stock issued pursuant hereto, addressed to such Holder at its last known
address or telecopy number appearing on the books of the Issuer maintained for
such purposes, and if to the Issuer, addressed to:

                          World Energy Solutions, Inc.
                          446 Main Street
                          Worcester, Massachusetts 01608
                          Attn: Richard Domaleski

                          with a copy to:

                          John H. Chory
                          Wilmer Cutler Pickering Hale and Dorr LLP
                          1100 Winter Street
                          Waltham, Massachusetts 02451

or to such other address or addresses or telecopy number or numbers as any such
party may most recently have designated in writing to the other parties hereto
by such notice. All such communications shall be deemed to have been given or
made when so delivered by hand, upon actual receipt if sent by telecopy, or
three business days after being so mailed.

         11. Remedies. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the fullest extent permitted by
law, such terms may be specifically enforced by a decree for the

                                      -9-

<PAGE>

specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise. Time is of the
essence in this Warrant.

         12. Successors and Assigns. This Warrant and the rights evidenced
hereby shall inure to the benefit of and be binding upon the successors and
assigns of the Issuer, the Holder hereof and (to the extent provided herein) the
Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any
such Holder or Holder of Warrant Stock.

         13. No Voting Rights. This Warrant does not confer upon the Holder any
right to vote on, consent to, or otherwise participate with respect to matters
to, a vote of the stockholders of the Issuer or to receive notice as a
stockholder of the Issuer, as such, in respect of any matters whatsoever, nor
any other rights or liabilities as a stockholder, prior to the exercise hereof;
this Warrant does, however, require certain notices to the Holder as set forth
herein.

         14. Modification and Severability. If, in any action before any court
or agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be invalid, illegal or unenforceable, then such
provision shall be deemed modified to the extent necessary to make it
enforceable by such court or agency. If any such provision is not enforceable as
set forth in the preceding sentence, the unenforceability of such provision
shall not affect the other provisions of this Warrant, but this Warrant shall be
construed as if such unenforceable provision had never been contained herein and
shall be conclusively deemed to be severable therefrom.

         15. Lost Certificate. If this Warrant evidencing the Warrants issued
hereby becomes lost, stolen, mutilated or destroyed, the Issuer may, in its
discretion, acting reasonably, issue and countersign a new Warrant of like
denomination, tenor and date and representing an identical right or interest as
the Warrant so lost, stolen, mutilated or destroyed.

         16. Integration. This Warrant replaces all prior agreements, supersedes
all prior negotiations and constitutes the entire agreement of the parties with
respect to the transactions contemplated herein.

         17. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                            [SIGNATURE PAGE FOLLOWS]

                                      -10-
<PAGE>

                                        WORLD ENERGY SOLUTIONS, INC.

                                        By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                      -11-
<PAGE>

                                  EXERCISE FORM

[              ]

               The undersigned hereby irrevocably elects to exercise the right
to purchase represented by the attached Warrant for, and to purchase thereunder,
shares of Common Stock, par value $.0001 per share (the "Common Stock"), of
World Energy Solutions, Inc. (the "Issuer"), as provided for therein, and
tenders herewith payment of the Warrant Price in full in accordance with the
terms of the attached Warrant.

               Please issue a certificate or certificates for such shares of
Common Stock in the following name or names and denominations:

If said number of shares of Common Stock shall not be all the shares of Common
Stock issuable upon exercise of the attached Warrant, a new Warrant is to be
issued in the name of the undersigned for the balance remaining of such shares
of Common Stock less any fraction of a share of Common Stock paid in cash.

Dated:                                  Signature
       ---------------------------                 ----------------------------

                                        Address
                                                   ----------------------------

                                                   ----------------------------

                                      -12-
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby
sells, assigns and transfers unto ______________ the within Warrant and all
rights evidenced thereby and does irrevocably constitute and appoint
______________, attorney, to transfer the said Warrant on the books of the
within named corporation.

Dated:                                  Signature
       ---------------------------                 ----------------------------

                                        Address
                                                   ----------------------------

                                                   ----------------------------

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby
sells, assigns and transfers unto ______________ the right to purchase
______________ shares of the Common Stock issuable upon exercise of the attached
Warrant, and does irrevocably constitute and appoint ______________, attorney,
to transfer that part of the said Warrant on the books of the within named
corporation.

Dated:                                  Signature
       ---------------------------                 ----------------------------

                                        Address
                                                   ----------------------------

                                                   ----------------------------

FOR USE BY THE ISSUER ONLY:

This Warrant No. cancelled (or transferred or exchanged) this __________ day
of _____________, 20___, shares of Common Stock issued therefor in the name of
_____________________, Warrant No.___ issued for_________________ shares of
Common Stock in the name of _____________________.

                                      -13-

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