Document:

<PAGE>
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                                                                   EXHIBIT 10.19

<TABLE>
<S>                                         <C>                              <C>
SOLICITATION, OFFER AND AWARD               1. Caption                                            Page of Pages
                                                Natural Gas and Electricity               1             |             33

2. Contract Number  3. Solicitation Number  4. Type of Solicitation          5. Date Issued  6. Type of Market
                                            [ ] Sealed Bid (IFB)                             [X] Open
                                            [X] Sealed Proposals (RFP)                       [ ] Set Aside
                                            [ ] Sole Source                                  [ ] Open with Sub-Contracting Set Aside
                                            [ ] Human Care Agreements
POAM-2006-D-0005-B  POAM-2006-R-0005        [ ] Emergency                       6/26/2006

7. Issued By:                               8. Address Offer To:
Office of Contracting and Procurement       Office of Contracting and Procurement
Group VII                                   Group VII
441 4th Street, NW, Suite 700 South         441 4th Street, NW, Suite 703 South, Bid Counter
Washington, DC 20001                        Washington, DC 20001

NOTE: In sealed bid solicitations "offer" and "offeror" means "bid" and "bidder".

                                                            SOLICITATION

9.   Sealed offers in original and 6 copies for furnishing the supplies or services in the Schedule will be received at the place
     specified in Item 8, or if hand carried to the bid counter located at 441 4th Street, NW, Suite 703S, Bid Counter, Washington,
     DC until 2:00 p.m. local time, 26-Jul-06.

CAUTION - Late Submissions, Modifications, and Withdrawals: See 27 DCMR Chapters 15 & 16 as applicable. All offers are subject to
all terms and conditions contained in this solicitation.

                             A. Name                     B. Telephone          C. Email Address
10. For Information Contact                      ----------------------------
                                                 (Area Code)  (Number)  (Ext)
                                                 -----------  --------  -----
                             Delorise P. Ragins      202      727-6605         delorise.ragins@dc.gov

                                                        11. Table of Contents

(x) Section             Description              Page No.  (X) Section                           Description                Page No.
--- ------- ------------------------------------ --------  --- ------- ---------------------------------------------------- --------
                  PART I - THE SCHEDULE                                            PART II - CONTRACT CLAUSES
[X]    A    Solicitation/Contract Form               1     [X]    I    Contract Clauses                                        17
[X]    B    Supplies or Services and Price/Cost      2            PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS
[X]    C    Specifications/Work Statement            6     [X]    J    List of Attachments                                     21
[X]    D    Packaging and Marking                   12                     PART IV - REPRESENTATIONS AND INSTRUCTIONS
[X]    E    Inspection and Acceptance               13            K    Representations, certifications and other               22
[X]    F    Deliveries or Performance               14     [X]         statements of offerors
[X]    G    Contract Administration Data            15     [X]    L    Instructions, conditions & notices to offerors          26
[X]    H    Special Contract Requirements           16     [X]    M    Evaluation Factors for Award                            32

                                                                OFFER

12.  In compliance with the above, the undersigned agrees, if this offer is accepted within 120 calendar days from the date for
     receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each
     item, delivered at the designated point(s), within the time specified herein.

13.  Discount for Prompt Payment                 10 Calendar Days %   20 Calendar Days %   30 Calendar Days %   _____ Calendar Days
                                                         N/A                  N/A                  N/A                  N/A

                                                  Amendment Number           Date           Amendment Number            Date
                                                 ------------------   ------------------   ------------------   -------------------
14.  Acknowledgement of Amendments (The offeror           1                 7/10/06
     acknowledges receipt of amendments to the   __________________   __________________   __________________   ___________________
     SOLICITATION):                              __________________   __________________   __________________   ___________________

15A.                                             16.  Name and Title of Person Authorized to Sign Offer/Contract
      Name and   World Energy Solutions, Inc.
     Address of  446 Main Street                 Jonathan Harvey
       Offeror   Worcester, MA 01608             VP Business Development

       15B. Telephone          [ ] 15C. Check if remittance address is different from  17. Signature           18. Offer Date
-----------------------------      above - Refer to Section G
(Area Code)   (Number)  (Ext)
-----------   --------  -----                                                         /s/ Jonathan M. Harvey       7/13/06
    703       795-8927                                                                ----------------------

                                                AWARD (TO BE COMPLETED BY GOVERNMENT)

19. Accepted as to Items Numbered                20. Amount  21. Accounting and Appropriation
___________________________________________________________      ___________________________________________________________________
___________________________________________________________

22. Name of Contracting Officer (Type or Print)  23. Signature of Contracting Officer (District of Columbia)  24. Award Date

John Soderberg                                   /s/ John Soderberg                                           8/18/06
                                                 -------------------------------------

                Government of the District of Columbia           Office of Contracting & Procurement
</TABLE>

                              Sol. First Page Offer Award Form - DCOCP-209-V2206

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION B: SUPPLIES OR SERVICES AND PRICE

B.1  The Government of the District of Columbia, Office of Contracting and
     Procurement as well as DC Energy on behalf of the Executive Branch and
     DCMAP II Task Force (hereafter referred to as the District) and the Office
     of Property Management (OPM) to secure the best value for energy supply and
     the transportation/transmission of such energy supply to District
     facilities, large and small commercial as well as residential accounts. The
     District is seeking a contractor to provide but not limited to the
     following services: performance of real-time, online reverse energy
     auctions, energy acquisition services and energy consultant services.

B.2  The District contemplates award of a single contract based on reimbursement
     by willing suppliers at a rate per dth or per kWh over the life of the
     contract for all accounts awarded as a result of services provided. Fees
     paid will be based on the amount of actual or historical dth/kWh used. All
     fees for this contract will be paid by the energy supplier.

B.3  REQUIRED PRICING

     Prospective Contractor must submit indicative fees for all of the scenarios
     in the tables below for both electricity and natural gas. These fees shall
     encompass all of the costs of providing all services as described in
     Section C.3 including but not limited to: tariff and rate analysis at the
     account level, price- to-beat analysis at the RFP level and pulling utility
     quality data directly from utilities for all accounts included. For pricing
     purposes the Contractor should assume this fee will be in place for the
     Contractor's full five (5) year contract (one year base period and four one
     year options).

CLIN

0001                               BASE YEAR
ELECTRICITY

<TABLE>
<CAPTION>
   0-250        251-500       501-750         751-
MILLION KWH   MILLION KWH   MILLION KWH   MILLION KWH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
   .0013         .0013         .0013         .0013
</TABLE>

CLIN

0002

NATURAL GAS

<TABLE>
<CAPTION>
   0-1.0        1.0-2.0       2.0-3.0         3.0-
MILLION DTH   MILLION DTH   MILLION DTH   MILLION DTH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
    .05           .05           .05           .05
</TABLE>

                                                                               2

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

CLIN

0001                             OPTION YEAR ONE
ELECTRICITY

<TABLE>
<CAPTION>
   0-250        251-500       501-750         751-
MILLION KWH   MILLION KWH   MILLION KWH   MILLION KWH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
   .0013         .0013         .0013         .0013
</TABLE>

CLIN

0002
NATURAL GAS

<TABLE>
<CAPTION>
   0-1.0        1.0-2.0       2.0-3.0         3.0-
MILLION DTH   MILLION DTH   MILLION DTH   MILLION DTH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
    .05           .05           .05           .05
</TABLE>

CLIN

0001                             OPTION YEAR TWO
ELECTRICITY

<TABLE>
<CAPTION>
   0-250        251-500       501-750         751-
MILLION KWH   MILLION KWH   MILLION KWH   MILLION KWH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
   .0013         .0013         .0013         .0013
</TABLE>

CLIN

0002
NATURAL GAS

<TABLE>
<CAPTION>
   0-1.0        1.0-2.0       2.0-3.0         3.0-
MILLION DTH   MILLION DTH   MILLION DTH   MILLION DTH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
    .05           .05           .05           .05
</TABLE>

                                                                               3

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

CLIN

0001                            OPTION YEAR THREE
ELECTRICITY

<TABLE>
<CAPTION>
   0-250        251-500       501-750         751-
MILLION KWH   MILLION KWH   MILLION KWH   MILLION KWH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
   .0013         .0013         .0013         .0013
</TABLE>

CLIN

0002
NATURAL GAS

<TABLE>
<CAPTION>
   0-1.0        1.0-2.0       2.0-3.0         3.0-
MILLION DTH   MILLION DTH   MILLION DTH   MILLION DTH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
    .05           .05           .05           .05
</TABLE>

CLIN

0001                            OPTION YEAR FOUR
ELECTRICITY

<TABLE>
<CAPTION>
   0-250        251-500       501-750         751-
MILLION KWH   MILLION KWH   MILLION KWH   MILLION KWH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
   .0013         .0013         .0013         .0013
</TABLE>

CLIN

0002
NATURAL GAS

<TABLE>
<CAPTION>
   0-1.0        1.0-2.0       2.0-3.0         3.0-
MILLION DTH   MILLION DTH   MILLION DTH   MILLION DTH
-----------   -----------   -----------   -----------
<S>           <C>           <C>           <C>
    .05           .05           .05           .05
</TABLE>

B.4  All work will be performed on a no upfront cost basis. The Contractor will
     be reimbursed by winning suppliers at a rate per dth or per kWh over the
     life of the contract for all accounts awarded as a result of services
     provided. Fees paid will be based on the amount of actual or historical
     dth/kWh used. The District will include payment and reporting terms between
     energy suppliers and the Contractor on the District's supply RFP.

     Contractors are advised that the District is under no obligation to accept
     pricing received through each auction and may elect not to award supply
     contracts if they are deemed not to be in the best interest of the
     District. The District has the sole authority to make this

                                                                               4

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     decision and may elect to accept all, some, or none of the prices submitted
     through the auction. If the District decides not to award supply contracts
     for any accounts, the Contractor will receive no compensation for services
     provided. Contractors will only be responsible for providing contract
     management services to accounts for which energy supply service is awarded.

                                                                               5
<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION C: DESCRIPTIONS/SPECIFICATIONS

C.1  SCOPE OF WORK

     Energy is an extremely complex commodity for Government entities to
     procure, especially considering today's volatile energy market and the
     recent financial problems of a number of once credit-worthy energy service
     providers. It is the desire of the District of Columbia Office of
     Contracting and Procurement as well as DC Energy on behalf of the Executive
     Branch and DC MAP II Task Force and OPM (hereafter referred to as the
     District) to secure the best value for energy supply and the
     transportation/transmission of such energy supply to District facilities,
     large and small commercial as well as residential accounts. The District is
     therefore issuing this Request for Proposal (RFP) for qualified Contractors
     to provide supply-side energy procurement and management services. When
     used in this document, the term "energy" shall mean both natural gas and
     electric power. The District is requesting proposals for the provision of
     performance-based supply-side energy management services, which include but
     are not limited to: performance of real-time, online reverse energy
     auctions, energy acquisition services and energy consultant services. The
     successful offorer (i.e. Contractor) will provide the full requirements for
     a term of one (1) base year and (4) option years from the date of award.
     The Contractor must possess a combination of energy consultant skills and
     the technology to perform real-time, online reverse energy auctions all on
     a no upfront cost basis (performance based). The District reserves the
     right to engage the awarded Contractor in energy procurements for other
     commodities under a similar fee structure in the future.

C.2  BACKGROUND

     This Scope of Work defines the minimum requirements for the Contractor to
     provide complete energy supply acquisition management services. The
     District reserves the right to negotiate additional tasks with the awarded
     Contractor. The Contractor will assist in the development and execution of
     subsequent energy procurement RFP's for all existing District facilities
     energy accounts and additional eligible facilities which will include
     larger and small commercial as well as residential customers which choose
     to participate. The pricing component of the RFP's will be conducted via an
     on-line, real-time reverse auction. The Contractor will be required to
     assist the District in analyzing rates and tariffs for accounts to develop
     a comprehensive energy procurement strategy, and will help implement a
     total supply-side management solution for all accounts contained in the
     final energy aggregation. The initial engagement will be conducting the
     supply procurement for natural gas. Other procurements may be conducted at
     the option of the District.

                                                                               6

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

C.3  REQUIREMENTS

C.3.1 MINIMUM REQUIREMENTS

     FAILURE TO MEET ANY OF THE FOLLOWING MINIMUM REQUIREMENTS MAY CONSTITUTE A
     TECHNICALLY UNACCEPTABLE OFFER. EACH CONTRACTOR MUST PROVIDE EVIDENCE OF
     THE FOLLOWING:

     -    The Contractor must be willing to accept all risk in the form of no
          upfront payment. There will be no upfront costs to the District and
          if, in the best interest of the District, a contract is not executed
          after the reverse auction, the District will be under no obligation to
          compensate the Contractors for services rendered. Provide a statement
          certifying acknowledgement of these requirements.

     -    The Contractor must be "supplier neutral" with no ownership ties,
          partnerships, or other business relationships with any specific
          supplier that would reasonably be considered a conflict of interest.

     -    The Contractor must have conducted an electricity and/or natural gas
          auction for at least one federal, state or local government client,
          large and small commercial groups, as well as residential which
          resulted in energy supply contract awards serving at least 500
          accounts.

     -    The Contractor must have an information technology platform which can
          execute real-time, online reverse energy auctions.

     -    The energy auction platform used must provide an automatic audit trail
          of time stamped bids and bidder information for each company
          participating in the auction.

     -    The auction platform must be protected from products that would
          prevent authorized bidders from submitting a price, provide for
          application of security measures and include a process of continuous
          monitoring.

     -    The energy auction platform has successfully been used to solicit bids
          for pricing products other than firm fixed price and index price bids.

     -    Specific examples which demonstrate the Contractors experience in
          providing supply-side energy consulting services to local, state or
          federal clients and information, regarding measurable success of the
          resulting auction.

     -    Two specific examples which demonstrate the Contractor's ability to
          market and effectively increase the size of an energy aggregation for
          clients. One example should be representative of a local, state and/or
          federal entity.

     -    A minimum of six (6) references, three (3) of which are different
          local, state or federal agencies which demonstrate the Contractor's
          ability to conduct real-time,

                                                                               7

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

          online reverse energy auctions on behalf of clients with accounts in
          multiple utilities and or rate classes.

     -    An example of the Contractor's price-to-beat analysis, calculated at
          the individual account level, for a past procurement that included at
          least 100 accounts.

     -    The Contractor will analyze accounts and aggregate them into auction
          trenches in order to promote more competition and bidding.

C.3.2 PROCUREMENT / CONSULTANT SERVICES REQUIREMENT

     -    Provide market expertise, information and recommendations throughout
          the process.

     -    Conduct a survey of active and licensed energy suppliers as registered
          in the applicable utilities in order to determine market strategies
          which will result in the most competitive bids and maximize savings
          for the District.

     -    Define data requirements, identify sources of data, and create a
          central data repository of all relevant account information. As
          needed, the District will assist the Contractor with this task by
          providing authorizations to collect account numbers and available
          historical data from the servicing utility and/or current competitive
          suppliers. The Contractor will be responsible for pulling utility
          quality data for all accounts included in the procurement directly
          from the utility and all costs associated with this task.

     -    Meet with the District's staff to answer questions, explain the
          procurement process, and discuss market conditions.

     -    Create a supply RFP that requires bidders to provide the lowest bid
          prices available in the market that conform to the District's specific
          RFP supply pricing types and service terms sought.

     -    Advertise the procurement RFP and contact registered suppliers for the
          applicable utilities to inform them of the procurement. At the
          District's direction, the Contractor will register prospective bidders
          as users of the reverse auction platform and answer any questions
          regarding the use of the software system.

     -    Establish a pre-qualification process for potential energy suppliers.
          The Contractor will work with the District to develop sound financial
          and technical qualifications that suppliers must meet in order to bid.
          These qualifications will include, but are not limited to: viability
          to meet the terms and conditions of the District contracts, proof of
          appropriate licenses and transport agreements, adherence to switching
          rules and enrollment processes, and ability to meet minimum load
          requirements for competitive supply.

                                                                               8

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     -    Provide the technology and facilities to host bidder's conferences
          between potential suppliers, the District, and the Contractor. In
          addition, the Contractor will perform coordination of pre-bid
          teleconferencing and/or meetings as necessary to ensure registered
          bidders understand the procurement process. In addition to
          facilitating bidder's conference(s), the Contractor will provide
          questions and answers from the meeting. After the District's review,
          questions and answers will be posted for all potential bidders to
          access through the customized website described below.

     -    Create a customized website for each of the District's reverse auction
          energy procurements which will serve as a centralized site for all
          parties to access their data and be notified of updates. In addition
          to posting questions and answers from bidder's conferences, the
          Contractor will also post rules for the use of the procurement
          platform, historical usage data/demand data in downloadable excel
          files, contract terms and conditions, and other important data as
          defined by the District. This customized web site will be accessible
          to both the District and qualified suppliers.

     -    Assist the District, as requested, to determine the best contract
          structure for each bidding event within the procurement and provide
          recommendations for RFP language changes. The Contractor will provide
          information regarding the best time to hold the procurement based on
          the District's specified timeline for the procurements.

     -    Review the final RFP to ensure that it meets both the District's and
          suppliers' requirements. Final RFP must be approved by the Contracting
          Officer.

     -    Assist the District in procuring 10% of the electrical energy supply
          from renewal sources and in certifying any renewable energy credits
          resulting from energy supply contract awards as well as other
          projects.

     -    Create pricing scenarios and forecasts from data provided by the
          District, other customers, servicing utilities, and market data which
          may serve as the baseline against which bid prices are compared. To
          ensure the most accurate calculations, the Contractor will be required
          to build a price-to-beat for every account included in the procurement
          vs. simply analyzing price-to-beat at the utility rate / tariff level.

     -    Assist the District with reaching pricing decisions that adhere to
          cost savings goals regarding risk avoidance, savings maximization,
          renewable power goals and other objectives that the District deems
          appropriate.

C.3.3 ENERGY REVERSE AUCTION SERVICES REQUIREMENTS

     -    Notify supplies of the specific auction schedule, conduct the auction
          and perform other necessary administrative duties associated with the
          auction. The auction

                                                                               9

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

          will be conducted via a password protected on-line real-time reverse
          auction platform.

     -    Monitor the auction and maintain an audit trail of all supplier
          communications, bid prices, bid times, and results which will be
          provided to the District in paper form post-auction. Additionally, the
          lowest bid price submitted will be clearly identified.

     -    Assist the District, as requested, in making a determination of which
          bid is the "best bid" and whether accepting bid prices are in the
          District's best interests. The District reserves the right to request
          pricing bids for 12, 24, and 36 month durations.

     -    The Contractor will not bind nor act or represent itself as performing
          in the capacity of the District at any time during the procurement
          process, unless specifically authorized to do so by the District.

     -    Perform up to four additional procurements for the same account set if
          pricing received through the original auction is not reflective of
          competitive market pricing at that point in time or if the District
          determines that more advantageous pricing can be achieved at a later
          date.

     -    All reverse auctions will be held in offices at 441 4th Street NW,
          Washington D.C. 2001.

C.3.4 CONTRACT MANAGEMENT SERVICES REQUIREMENTS

     -    Work with awarded energy supplier to ensure account transition is
          completed in a timely and accurate manner, and assist in resolving any
          issues that arise after the contract is awarded.

     -    Store contracts and accounts on a password-protected on-line database
          that the District and its clients can access over the web, and update
          each account on a monthly basis with actual usage as the account
          consumes energy over the life of the contract.

     -    Provide periodic market updates and identify the potential for
          additional savings as requested by the District.

C.3.5 KEY PERSONNEL

     The Contractor and /or Sub-Contract key personnel will be identify and make
     during the duration of the program to ensure its smooth planning,
     implementation, and execution.

C.3.6 AVAILABILITY

     The Contractor will conduct teleconferencing and travel as necessary to
     execute required planning and performance of this Scope of Work.

                                                                              10

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

C.3.7 SCHEDULE

     A detailed schedule will be agreed upon by the District and the Contractor
     prior to each auction. The District will actively work with the Contractor
     throughout the project from a time, personnel, and resource standpoint.

C.3.8 PROTECTION OF CONTRACT INFORMATION

     The Contractor will take the necessary and usual steps to maintain the
     confidentiality of information submitted by Suppliers prior to award of the
     supply contract.

C.3.9 WRITTEN NOTIFICATION

     Ten (10) business days prior to the day of the procurement, the District
     will confirm with the vendor that the accounts for which data is being
     provided to suppliers is the final set of accounts to be included in the
     procurement.

C.3.10 PAYMENT AND BILLING

     All work will be performed on a no upfront cost basis. The Contractor will
     be reimbursed by winning suppliers at a rate per dth or per kWh over the
     life of the contract for all accounts awarded as a result of services
     provided. Fees paid will be based on the amount of actual or historical
     dth/kWh used. The District will include payment and reporting terms between
     energy suppliers and the Contractor in the District's supply RFP.

     CONTRACTORS ARE ADVISED THAT THE DISTRICT IS UNDER NO OBLIGATION TO ACCEPT
     PRICING RECEIVED THROUGH EACH AUCTION AND MAY ELECT NOT TO AWARD SUPPLY
     CONTRACTS IF THEY ARE DEEMED NOT TO BE IN THE BEST INTEREST OF THE
     DISTRICT. THE DISTRICT HAS THE SOLE AUTHORITY TO MAKE THIS DECISION AND MAY
     ELECT TO ACCEPT ALL, SOME, OR NONE OF THE PRICES SUBMITTED THROUGH THE
     AUCTION. IF THE DISTRICT DECIDES NOT TO AWARD SUPPLY CONTRACTS FOR ANY
     ACCOUNTS, THE CONTRACTOR WILL RECEIVE NO COMPENSATION FOR SERVICES
     PROVIDED. CONTRACTORS WILL ONLY BE RESPONSIBLE FOR PROVIDING CONTRACT
     MANAGEMENT SERVICES TO ACCOUNTS FOR WHICH ENERGY SUPPLY SERVICE IS AWARDED.

C.4  CONTRACT ADMINISTRATION

     When awarded, this contract shall be executed by the District of Columbia
     Government. The Contracting Officer (CO) for the execution of this contract
     is:

          John Soderberg
          441 4th St. NW
          Suite 700 South
          Washington, DC 20001
          Phone: (202) 671-2155
          Fax: (202) 727-9385
          Email: john.soderberg@de.gov

C.5  PRICE PROPOSAL

                                                                              11

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

C.5.1 GENERAL.

     The District is requesting pricing for a term of five (5) years.

     Notes and Instructions to Contractor Regarding Pricing

     The Contractor agrees to hold the indicative fees provided for a period of
     __________ up to one hundred and eighty 180 days from date its proposal is
     submitted.

C.6  SUBMISSION OF PROPOSALS

     In order to facilitate timely evaluation of Contractors proposals, the
     District will request and evaluate both technical qualifications proposals
     and price proposals.

     Proposed Contractors must submit three copies of their proposal, to include
     both Technical and Price proposal, which includes the following:

     a.   Name, address, telephone number, federal tax identification number and
          DUNS number

     b.   Complete responses to Sections C3

     c.   Proposals, technical and price, must be received no later than 3:30PM
          EST July 26, 2006 at the address listed below. Email and faxed
          proposals will be accepted but the original documents must be received
          by 3:30 PM EST July 26, 2006. Any documents that require signature
          should be faxed.

          Return to:

               Office of Contracting and Procurement
               Bid Room: Attn: John Soderberg
               441 4th Street, N.W.
               Suite 700 South
               Washington, D.C. 20001
               Fax: (202) 727-8843
               Email: john.soderberg@dc.gov

CAUTION: PROSPECTIVE CONTRACTORS ARE CAUTIONED THAT ANY AMENDMENTS MUST BE
ACKNOWLEDGED WITH THEIR PROPOSAL

                                                                              12

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION D: PACKAGING AND MARKING

The packaging and marking requirements for the resultant contract shall be
governed by clause number (2), Shipping Instructions-Consignment, of the
Government of the District of Columbia's Standard Contract Provisions for use
with Supplies and Services Contracts, dated November, 2004.

                                                                              13

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION E: INSPECTION AND ACCEPTANCE

The inspection and acceptance requirements for the resultant contract shall be
governed by clause number clause number six (6), Inspection of Services of the
Government of the District of Columbia's Standard Contract Provisions for
Supplies and Services Contracts, dated November, 2004.

                                                                              14
<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION F: DELIVERIES OR PERFORMANCE

F.1  TERM OF CONTRACT

     The term of the contract shall be for a period of one (1) year from the
     effective date of award specified on page one of the Contract.

F.2  OPTION TO EXTEND THE TERM OF THE CONTRACT

F.2.1 The District may extend the term of this contract for a period of four (4)
     one year option periods, or successive fractions thereof, by written notice
     to the Contractor before the expiration of the contract, provided that the
     District will give the Contractor a preliminary written notice of its
     intent to extend at least thirty (30) days before the contract expires. The
     preliminary notice does not commit the District to an extension. The
     exercise of this option is subject to the availability of funds at the time
     of the exercise of this option. The Contractor may waive the thirty (30)
     day preliminary notice requirement by providing a written waiver to the
     Contracting Officer prior to expiration of the contract.

F.2.2 If the District exercises this option, the extended contract shall be
     considered to include this option provision.

F.2.3 The price for the option period shall be as specified in the contract.

F.2.4 The total duration of this contract, including the exercise of any options
     under this clause, shall not exceed five (5) year.

                                                                              15

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION G: CONTRACT ADMINISTRATION DATA

G.1  PAYMENT

     All work will be performed on a no upfront cost basis. The Contractor will
     be reimbursed by winning suppliers at a rate per dth or per kWh over the
     life of the contract for all accounts awarded as a result of services
     provided. Fees paid will be based on the amount of actual or historical
     dth/kWh used. The District will include payment and reporting terms between
     energy suppliers and the Contractor in the District's supply RFP.

G.2  AUTHORIZED CHANGES BY THE CONTRACTING OFFICER

G.2.1 The Contracting Officer is the only person authorized to approve changes
     in any of the requirements of this contract.

G.2.2 The Contractor shall not comply with any order, directive or request that
     changes or modifies the requirements of this contract, unless issued in
     writing and signed by the Contracting Officer.

G.2.3 In the event the Contractor effects any change at the instruction or
     request of any person other than the Contracting Officer, the change will
     be considered to have been made without authority and no adjustment will be
     made in the contract price to cover any cost increase incurred as a result
     thereof.

G.3  CONTRACTING OFFICER'S TECHNICAL REPRESENTATIVE (COTR)

G.3.1 The COTR is responsible for general administration of the contract and
     advising the Contracting Officer as to the Contractor's compliance or
     noncompliance with the contract. In addition, the COTR is responsible for
     the day-to-day monitoring and supervision of the contract, of ensuring that
     the work conforms to the requirements of this contract and such other
     responsibilities and authorities as may be specified in the contract. The
     COTR for this contract is:

          Name:      Dr. Anthony Jiminez
          Title:     Utilities Mgt Specialist
          Agency:    Office of Property Management
          Address:   441 4th Street, N.W. Suite 1100
          Telephone: (202) 724-3999

G.3.2 The COTR shall not have authority to make any changes in the
     specifications or scope of work or terms and conditions of the contract.

G.3.3 The Contractor may be held fully responsible for any changes not
     authorized in advance, in writing, by the Contracting Officer; may be
     denied compensation or other relief for any additional work performed that
     is not so authorized; and may also be required, at no additional cost to
     the District, to take all corrective action necessitated by reason of the
     unauthorized changes.

                                                                              16

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION H: SPECIAL CONTRACT REQUIREMENTS

H.1  PUBLICITY

     The Contractor shall at all times obtain the prior written approval from
     the Contracting Officer before it, any of its officers, agents, employees
     or subcontractors, either during or after expiration or termination of the
     contract, make any statement, or issue any material, for publication
     through any medium of communication, bearing on the work performed or data
     collected under this contract.

H.2  FREEDOM OF INFORMATION ACT

     The District of Columbia Freedom of Information Act, at D.C. Official Code
     Section 2-532(a-3), requires the District to make available for inspection
     and copying any record produced or collected pursuant to a District
     contract with a private contractor to perform a public function, to the
     same extent as if the record were maintained by the agency on whose behalf
     the contract is made. If the Contractor receives a request for such
     information, the Contractor shall immediately send the request to the COTR
     designated in subsection G.3 who will provide the request to the FOIA
     Officer for the agency with programmatic responsibility in accordance with
     the D.C. Freedom of Information Act. If the agency with programmatic
     responsibility receives a request for a record maintained by the Contractor
     pursuant to the contract, the COTR will forward a copy to the Contractor.
     In either event, the Contractor is required by law to provide all
     responsive records to the COTR within the timeframe designated by the COTR.
     The FOIA Officer for the agency with programmatic responsibility will
     determine the releasability of the records. The District will reimburse the
     Contractor for the costs of searching and copying the records in accordance
     with D.C. Official Code Section 2-532 and Chapter 4 of Title 1 of the D.C.
     Municipal Regulations.

H.3  PROTECTION OF PROPERTY:

     The Contractor shall be responsible for any damage to the building,
     interior, or their approaches in delivering equipment covered by this
     contract.

H.4  AMERICANS WITH DISABILITIES ACT OF 1990 (ADA)

     During the performance of the contract, the Contractor and any of its
     subcontractors shall comply with the ADA. The ADA makes it unlawful to
     discriminate in employment against a qualified individual with a
     disability. Sec. 42 U.S.C. Section 12101 et seq.

H.5  SECTION 504 OF THE REHABILITATION ACT OF 1973, AS AMENDED.

     During the performance of the contract, the Contractor and any of its
     subcontractors shall comply with Section 504 of the Rehabilitation Act of
     1973, as amended. This Act prohibits discrimination against disabled people
     in federally funded program and activities. See 29 U.S.C. Section 794 et
     seq.

                                                                              17

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION I: CONTRACT CLAUSES

I.1  APPLICABILITY OF STANDARD CONTRACT PROVISIONS

     The Standard Contract Provisions for use with District of Columbia
     Government Supplies and Services Contracts dated November 2004 ("SCP"), are
     incorporated as part of the contract resulting from this solicitation. To
     obtain a copy of the SCP go to www.ocp.dc.gov, click on OCP Policies under
     the heading "Information", then click on "Standard Contract Provisions -
     Supplies and Services Contracts".

I.2  CONTRACTS THAT CROSS FISCAL YEARS

     Continuation of this contract beyond the current fiscal year is contingent
     upon future fiscal appropriations.

I.3  CONFIDENTIALITY OF INFORMATION

     All information obtained by the Contractor relating to any employee or
     customer of the District will be kept in absolute confidence and shall not
     be used by the Contractor in connection with any other matters, nor shall
     any such information be disclosed to any other person, firm, or
     corporation, in accordance with the District and Federal laws governing the
     confidentiality of records.

I.4  TIME

     Time, if stated in a number of days, will include Saturdays, Sundays, and
     holidays, unless otherwise stated herein.

I.5  RIGHTS IN DATA

I.5.1 "Data," as used herein, means recorded information, regardless of form or
     the media on which it may be recorded. The term includes technical data and
     computer software. The term does not include information incidental to
     contract administration, such as financial, administrative, cost or
     pricing, or management information.

I.5.2 The term "Technical Data", as used herein, means recorded information,
     regardless of form or characteristic, of a scientific or technical nature.
     It may, for example, document research, experimental, developmental or
     engineering work, or be usable or used to define a design or process or to
     procure, produce, support, maintain, or operate material. The data may be
     graphic or pictorial delineations in media such as drawings or photographs,
     text in specifications or related performance or design type documents or
     computer printouts. Examples of technical data include research and
     engineering data, engineering drawings and associated lists,
     specifications, standards, process sheets, manuals, technical reports,
     catalog item identifications, and related information, and computer
     software documentation. Technical data does not include computer software
     or financial, administrative, cost and pricing, and management data or
     other information incidental to contract administration.

                                                                              18

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

I.5.3 The term "Computer Software", as used herein means computer programs and
     computer databases. "Computer Programs", as used herein means a series of
     instructions or statements in a form acceptable to a computer, designed to
     cause the computer to execute an operation or operations. "Computer
     Programs" include operating systems, assemblers, compilers, interpreters,
     data management systems, utility programs, sort merge programs, and
     automated data processing equipment maintenance diagnostic programs, as
     well as applications programs such as payroll, inventory control and
     engineering analysis programs. Computer programs may be either
     machine-dependent or machine-independent, and may be general purpose in
     nature or designed to satisfy the requirements of a particular user.

I.5.4 The term "computer databases", as used herein, means a collection of data
     in a form capable of being processed and operated on by a computer.

I.5.5 All data first produced in the performance of this Contract shall be the
     sole property of the District. The Contractor hereby acknowledges that all
     data, including, without limitation, computer program codes, produced by
     Contractor for the District under this Contract, are works made for hire
     and are the sole property of the District; but, to the extent any such data
     may not, by operation of law, be works made for hire, Contractor hereby
     transfers and assigns to the District the ownership of copyright in such
     works, whether published or unpublished. The Contractor agrees to give the
     District all assistance reasonable necessary to perfect such rights
     including, but not limited to, the works and supporting documentation and
     the execution of any instrument required to register copyrights. The
     Contractor agrees not to assert any rights in common law or in equity in
     such data. The Contractor shall not publish or reproduce such data in whole
     or in part or in any manner or form, or authorize others to do so, without
     written consent of the District until such time as the District may have
     released such data to the public.

I.5.6 The District will have restricted rights in data, including computer
     software and all accompanying documentation, manuals and instructional
     materials, listed or described in a license or agreement made a part of
     this contract, which the parties have agreed will be furnished with
     restricted rights, provided however, notwithstanding any contrary provision
     in any such license or agreement, such restricted rights shall include, as
     a minimum the right to:

I.5.7 Use the computer software and all accompanying documentation and manuals
     or instructional materials with the computer for which or with which it was
     acquired, including use at any District installation to which the computer
     may be transferred by the District;

I.5.8 Use the computer software and all accompanying documentation and manuals
     or instructional materials with a backup computer if the computer for which
     or with which it was acquired is inoperative;

I.5.9 Copy computer programs for safekeeping (archives) or backup purposes; and
     modify the computer software and all accompanying documentation and manuals
     or instructional

                                                                              19

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     materials, or combine it with other software, subject to the provision that
     the modified portions shall remains subject to these restrictions.

I.5.10 The restricted rights set forth in section I.5.6 are of no effect unless

     (i)  the data is marked by the Contractor with the following legend:

RESTRICTED RIGHTS LEGEND

     Use, duplication, or disclosure is subject to restrictions stated in
     Contract No. _________________________________________________________
     With __________________________________________ (Contractor's Name); and

     (ii) If the data is computer software, the related computer software
          documentation includes a prominent statement of the restrictions
          applicable to the computer software. The Contractor may not place any
          legend on the computer software indicating restrictions on the
          District's rights in such software unless the restrictions are set
          forth in a license or agreement made a part of the contract prior to
          the delivery date of the software. Failure of the Contractor to apply
          a restricted rights legend to such computer software shall relieve the
          District of liability with respect to such unmarked software.

I.5.11 In addition to the rights granted in Section I.5.6 above, the Contractor
     hereby grants to the District a nonexclusive, paid-up license throughout
     the world, of the same scope as restricted firths set forth in Section
     I.5.6 above, under any copyright owned by the Contractor, in any work of
     authorship prepared for or acquired by the District under this Contract.
     Unless written approval of the Contracting Officer is obtained, the
     Contractor shall not include in technical data or computer software
     prepared for or acquired by the District under this contract any works of
     authorship in which copyright is not owned by the Contractor without
     acquiring for the District any rights necessary to perfect a copyright
     license of the scope specified in the first sentence of this paragraph.

I.5.12 Whenever any data, including computer software, are to be obtained from a
     subcontractor under this contract, the Contractor shall use this clause,
     I.5, Rights in Data, in the subcontract, without alteration, and no other
     clause shall be used to enlarge or diminish the District's or the
     Contractor's right in that subcontractor data or computer software which is
     required for the District.

I.5.13 For all computer software furnished to the District with the rights
     specified in Section I.5.5, the Contractor shall furnish to the District, a
     copy of the source code with such rights of the scope specified in Section
     I.5.5. For all computer software furnished to the District with the
     restricted rights specified in Section I.5.6, the District, if the
     Contractor, either directly or through a successor or affiliate shall cease
     to provide the maintenance or warranty services provided the District under
     this contract or any paid-up maintenance agreement, or if Contractor should
     be declared bankrupt or insolvent by a court of competent jurisdiction,
     shall have the right to obtain, for its own and sole use only, a single
     copy of the then current version of the source code supplied under this
     contract,

                                                                              20

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     and a single copy of the documentation associated therewith, upon payment
     to the person in control of the source code the reasonable cost of making
     each copy.

I.5.14 The Contractor shall indemnify and save and hold harmless the District,
     its officers, agents and employees acting within the scope of their
     official duties against any liability, including costs and expenses, (i)
     for violation of proprietary rights, copyrights, or rights or privacy,
     arising out of the publication, translation, reproduction, delivery,
     performance, use or disposition of any data furnished under this contract,
     or (ii) based upon any data furnished under this contract, or based upon
     libelous or other unlawful matter contained in such data.

I.5.15 Nothing contained in this clause shall imply a license to the District
     under any patent, or be construed as affecting the scope of any license or
     other right otherwise granted to the District under any patent.

I.5.16 Paragraphs I.5.6, I.5.7, I.5.8, I.5.11 and I.5.12 above are not
     applicable to material furnished to the Contractor by the District and
     incorporated in the work furnished under contract, provided that such
     incorporated material is identified by the Contractor at the time of
     delivery of such work.

I.6  OTHER CONTRACTORS

     The Contractor shall not commit or permit any act that will interfere with
     the performance of work by another District contractor or by any District
     employee.

I.7  SUBCONTRACTS

     The Contractor hereunder shall not subcontract any of the Contractor's work
     or services to any subcontractor without the prior written consent of the
     Contracting Officer. Any work or service so subcontracted shall be
     performed pursuant to a subcontract agreement which the District will have
     the right to review and approve prior to its execution by the Contract. Any
     such subcontract shall specify that the Contractor and the subcontractor
     shall be subject to every provision of this contract. Notwithstanding any
     such subcontract approved by the District, the Contractor shall remain
     liable to the District for all Contractor's work and services required
     hereunder.

I.8  ORDER OF PRECEDENCE

     Any inconsistency in this solicitation shall be resolved by giving
     precedence in the following order: the Supplies or Services and Price/Cost
     Section (Section B), Specifications/Work Statement (Section C), the Special
     Contract Requirements (Section H), the Contract Clauses (Section I), and
     the SCP.

I.9  CONTRACTS IN EXCESS OF ONE MILLION DOLLARS

     Any contract in excess of $1,000,000 shall not be binding or give rise to
     any claim or demand against the District until approved by the Council of
     the District of Columbia and signed by the Contracting Officer.

                                                                              21

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION J: ATTACHMENT

J.1  Tax Certification Affidavit

                                                                              22
<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION K: REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1  AUTHORIZED NEGOTIATORS

     The offeror represents that the following persons are authorized to
     negotiate on its behalf with the District in connection with this request
     for proposals: (list names, titles, and telephone numbers of the authorized
     negotiators).

     ___________________________________________________________________________

     ___________________________________________________________________________

     ___________________________________________________________________________

K.2  TYPE OF BUSINESS ORGANIZATION

K.2.1 The offeror, by checking the applicable box, represents that

     (a)  It operates as:

          [ ]  a corporation incorporated under the laws of the State of:
               _______________

          [ ]  an individual,

          [ ]  a partnership,

          [ ]  a nonprofit organization, or

          [ ]  a joint venture

     (b)  If the offeror is a foreign entity, it operates as:

          [ ]  an individual,

          [ ]  a joint venture, or

          [ ]  a corporation registered for business in ________________________
                                                                (Country)

K.3  CERTIFICATION AS TO COMPLIANCE WITH EQUAL OPPORTUNITY OBLIGATIONS

     Mayor's Order 85-85, "Compliance with Equal Opportunity Obligations in
     Contract", dated June 10, 1985 and the Office of Human Rights' regulations,
     Chapter 11, "Equal Employment Opportunity Requirements in Contracts",
     promulgated August 15, 1986 (4 DCMR Chapter 11.33 DCR 4952) are included as
     a part of this solicitation and require the following certification for
     contracts subject to the order. Failure to complete the certification may
     result in rejection of the offeror for a contract subject to the order. I
     hereby certify that I am fully aware of the content of the Mayor's Order
     85-85 and the Office of Human Rights' regulations, Chapter 11, and agree to
     comply with them in performance of this contract.

                                                                              23

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

Offeror                                 Date
        -----------------------------        -----------------------------------
Name                                    Title
     --------------------------------         ----------------------------------

Signature
          ---------------------------

     Offeror ___ has ___ has not participated in a previous contract or
     subcontract subject to the Mayor's Order 85-85. Offeror ___ has ___ has not
     filed a required compliance reports, and representations indicating
     submission of required reports signed by proposed subofferors. (The above
     representations need not be submitted in connection with contracts or
     subcontracts which are exempt from the Mayor's Order.)

K.4  BUY AMERICAN CERTIFICATION

     The offeror hereby certifies that each end product, except the end products
     listed below, is a domestic end product (See Clause 23 of the SCP, "Buy
     American Act"), and that components of unknown origin are considered to
     have been mined, produced, or manufactured outside the United States.

     ________________________________ EXCLUDED END PRODUCTS

     ________________________________ COUNTRY OF ORIGIN

K.5  DISTRICT EMPLOYEES NOT TO BENEFIT CERTIFICATION

     Each offeror shall check one of the following:

          [ ]  No person listed in Clause 13 of the SCP, "District Employees Not
               To Benefit" will benefit from this contract.

          [ ]  The following person(s) listed in Clause 13 may benefit from this
               contract. For each person listed, attach the affidavit required
               by Clause 13 of the SCP.

          ______________________________________________________________________

          ______________________________________________________________________

K.6  CERTIFICATION OF INDEPENDENT PRICE DETERMINATION

     (a)  Each signature of the offeror is considered to be a certification by
          the signatory that:

          1)   The prices in this contract have been arrived at independently,
               without, for the purpose of restricting competition, any
               consultation, communication, or agreement with any offeror or
               competitor relating to:

               (i)  those prices

               (ii) the intention to submit a contract, or

               (iii) the methods or factors used to calculate the prices in the
                    contract.

                                                                              24

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

          2)   The prices in this contract have not been and will not be
               knowingly disclosed by the offeror, directly or indirectly, to
               any other offeror or competitor before contract opening unless
               otherwise required by law; and

          3)   No attempt has been made or will be made by the offeror to induce
               any other concern to submit or not to submit a contract for the
               purpose of restricting competition.

     (b)  Each signature on the offer is considered to be a certification by the
          signatory that the signatory:

          1)   Is the person in the offeror's organization responsible for
               determining the prices being offered in this contract, and that
               the signatory has not participated and will not participate in
               any action contrary to subparagraphs (a)(1) through (a)(3) above;
               or

          2)   Has been authorized, in writing, to act as agent for the
               following principals in certifying that those principals have not
               participated, and will not participate in any action contrary to
               subparagraphs (a)(1) through (a)(3) above:

               _________________________________________________________________
               (INSERT FULL NAME OF PERSON(S) IN THE ORGANIZATION RESPONSIBLE
               FOR DETERMINING THE PRICES OFFERED IN THIS CONTRACT AND THE TITLE
               OF HIS OR HER POSITION IN THE OFFEROR'S ORGANIZATION);

               (i)  As an authorized agent, does certify that the principals
                    named in subdivision (b)(2) have not participated, and will
                    not participate, in any action contrary to subparagraphs
                    (a)(1) through (a)(3) above; and

               (ii) As an agent, has not participated, and will not participate,
                    in any action contrary to subparagraphs (a)(1) through
                    (a)(3) above.

     (c)  If the offeror deletes or modifies subparagraph (a)(2) above, the
          offeror must furnish with its offer a signed statement setting forth
          in detail the circumstances of the disclosure.

K.7  TAX CERTIFICATION

     Each offeror must submit with its offer, a sworn Tax Certification
     Affidavit, incorporated herein as Attachment J.1.

K.8  METROPOLITAN WASHINGTON COUNCIL OF GOVERNMENTS RIDER CLAUSE

                                                                              25

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     USE OF CONTRACT(S) BY MEMBERS COMPRISING THE METROPOLITAN WASHINGTON
     COUNCIL OF GOVERNMENTS PURCHASING OFFICERS' COMMITTEE.

A.   If authorized by the bidder(s) resultant contract(s) will be extended to
     any or all of the listed members as designated by the bidder to purchase at
     contract prices in accordance with contract terms.

B.   Any member utilizing such contract(s) will place its own order(s) with the
     successful Contractor. There shall be no obligation on the part of any
     participating member to utilize the contract(s).

C.   A negative reply will not adversely affect consideration of your
     bid/proposal.

D.   It is awarded vendor's responsibility to notify the members shown below of
     the availability of the Contractor(s).

E.   Each participating jurisdiction has the option of executing a separate
     contract with the awardees. Contracts entered into with a participating
     jurisdiction may contain general terms and conditions unique to that
     jurisdiction including, by way of illustration and not limitation, clauses
     covering minority participation, non-discrimination, indemnification,
     naming the jurisdiction as an additional insured under any required
     Comprehensive General Liability policies, and venue. If, when preparing
     such a contract, the general terms and conditions of a jurisdiction are
     unacceptable to the awardees, the awardees may withdraw its extension of
     the award to that jurisdiction.

F.   The issuing jurisdiction shall not be held liable for any costs or damages
     incurred by another jurisdiction as a result of any award extended to that
     jurisdiction by the awardees.

IN PRICING SECTION OF CONTRACT:

BIDDER'S AUTHORIZATION TO EXTEND CONTRACT:

<TABLE>
<CAPTION>
YES    NO   JURISDICTION
---   ---   ------------
<S>   <C>   <C>
___   ___   Alexandria, Virginia
___   ___   Alexandria Public School
___   ___   Arlington County, Virginia
___   ___   Arlington County Public School
___   ___   Bowie, Maryland
___   ___   College Park, Maryland
___   ___   Culpepper County, Virginia
___   ___   District of Columbia
___   ___   D.C. Public Schools
___   ___   D.C. Water & Sewer Auth.
___   ___   Fairfax, Virginia
___   ___   Fairfax County, Virginia
___   ___   Fairfax County Water Authority
___   ___   Falls Church, Virginia
___   ___   Fauquier City Sch. & Govt., VA
___   ___   Frederick County, Maryland
___   ___   Frederick County, P.S.
___   ___   GAITHERSBURG, MARYLAND
___   ___   Greenbelt, Maryland
___   ___   MD-Nat. Cap. Park & Ping. Comm.
</TABLE>

<TABLE>
<CAPTION>
YES    NO   JURISDICTION
---   ---   ------------
<S>   <C>   <C>
___   ___   Met. Wash. Airports Authority
___   ___   Met. Wash. Council of Government
___   ___   Montgomery College
___   ___   Montgomery County, Maryland
___   ___   Mont. County Public Schools
___   ___   Prince George's County, Maryland
___   ___   Prince George's Public School
___   ___   Prince William County, Virginia
___   ___   Prince William
___   ___   Prince William County Ser. Auth.
___   ___   Rockville, Maryland
___   ___   Stafford County, Virginia
___   ___   Takoma Park, Maryland
___   ___   Vienna, Virginia
___   ___   Wash. Metro Area Transit Auth.
___   ___   Wash. Suburban Sanitary Comm.
___   ___   Herndon, Virginia
___   ___   LOUDON COUNTY, VIRGINIA
___   ___   Manassas, Virginia
</TABLE>

                                                                              26

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

SECTION L: INSTRUCTIONS, CONDITIONS AND NOTICES TO OFFERORS

L.1  METHOD OF AWARD

     L.1.1 MOST ADVANTAGEOUS TO THE DISTRICT

          The District reserves the right to accept/reject any/or all proposals
          resulting from this solicitation. The Contracting Officer may reject
          all proposals or waive any minor informality or irregularity in
          proposals received whenever it is determined that such action is in
          the best interest of the District.

     L.1.3 The District intends, but is not obligated, to award a single
          contract resulting from this solicitation to the responsible offeror
          whose offer conforming to the solicitation will be most advantageous
          to the District, cost or price, technical and other factors, specified
          elsewhere in this solicitation considered.

     L.1.2 INITIAL OFFERS

          The District may award a contract on the basis of initial offers
          received, without discussion. Therefore, each initial offer should
          contain the offeror's best terms from a standpoint of cost or price,
          technical and other factors.

L.2  PROPOSAL FORM, ORGANIZATION AND CONTENT

     One original and six (6) copies of the written proposals shall be submitted
     in two parts, titled "Technical Proposal" and "Price Proposal". Proposals
     shall be typewritten in 12 point font size on 8.5" by 11" bond paper.
     Telephonic, telegraphic, and facsimile proposals will not be accepted. EACH
     PROPOSAL SHALL BE SUBMITTED IN A SEAL ENVELOPE CONSPICUOUSLY MARKED:
     "PROPOSAL IN RESPONSE TO SOLICITATION NO. (INSERT SOLICITATION NUMBER,
     TITLE AND NAME OF OFFEROR)".

     (Offerors are directed to the specific proposal evaluation criteria found
     in Section M of this solicitation, EVALUATION FACTORS FOR AWARD. The
     Offeror shall respond to each factor in a way that will allow the District
     to evaluate the Offeror's response. The Offeror shall submit information in
     a clear, concise, factual and logical manner providing a comprehensive
     description of program supplies and services delivery thereof. The
     information requested below for the technical proposal shall facilitate
     evaluation and best value source selection for all proposals. The technical
     proposal must contain sufficient detail to provide a clear AND CONCISE
     REPRESENTATION OF THE REQUIREMENTS IN SECTION C.)

L.3  PROPOSAL SUBMISSION DATE AND TIME, AND LATE SUBMISSIONS, LATE
     MODIFICATIONS, WITHDRAWAL OR MODIFICATION OR PROPOSALS AND LATE PROPOSALS

L.3.1 PROPOSAL SUBMISSION

     Proposals must be submitted no later than 3:00 p.m. local time on July 26,
     2006. Proposals, modifications to proposals, or requests for withdrawals
     that are received in the

                                                                              27

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NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     designated District office after the exact local time specified above, are
     "late" and shall be considered only if they are received before the award
     is made and one (1) or more of the following circumstances apply:

     (a)  The proposal or modification was sent by registered or certified mail
          not later than the fifth (5th) day before the date specified for
          receipt of offers;

     (b)  The proposal or modification was sent by mail and it is determined by
          the Contracting Officer that the late receipt at the location
          specified in the solicitation was caused by mishandling by the
          District, or

     (c)  The proposal is the only proposal received.

L.3.2 WITHDRAWAL OR MODIFICATION OF PROPOSALS

     An offeror may modify or withdraw its proposal upon written, telegraphic
     notice, or facsimile transmission if received at the location designed in
     the solicitation for submission of proposals, but not later than the
     closing date for receipt of proposals.

L.3.3 POSTMARKS

     The only acceptable evidence to establish the date of a late proposal, late
     modification or late withdrawal sent either by registered or certified mail
     shall be a U.S. or Canadian Postal Service postmark on the wrapper or on
     the original receipt from the U.S. or Canadian Postal Service. If neither
     postmark shows a legible date, the proposal, modification or request for
     withdrawal shall be deemed to have been mailed late. When the postmark
     shows the date but not the hour, the time is presumed to be the last minute
     of the date shown. If no date is shown on the postmark, the proposal shall
     be considered late unless the offeror can furnish evidence from the postal
     authorities of timely mailing.

L.3.4 LATE MODIFICATIONS

     A late modification of a successful proposal, which makes its terms more
     favorable to the District, shall be considered at any time it is received
     any may be accepted.

L.3.5 LATE PROPOSALS

     A late proposal, late modification or late request for withdrawal of an
     offer that is not considered shall be held unopened, unless opened for
     identification, until after award and then retained with unsuccessful
     offers resulting from this solicitation.

L.4  EXPLANATION TO PROSPECTIVE OFFERORS

     If a prospective offeror has any questions relative to this solicitation,
     the prospective offeror shall submit the question in writing to the contact
     person, identified on page one. The prospective offeror shall submit
     questions no later than 10 DAYS prior to the closing date and time
     indicated for this solicitation. The District will not consider any
     questions received less than 10 days before the date set for submission of
     proposals. The District

                                                                              28

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     will furnish responses promptly to all other prospective offerors. An
     amendment to the solicitation will be issued if that information is
     necessary in submitting offers, or if the lack of it would be prejudicial
     to any other prospective offerors. Oral explanations or instructions given
     before the award of the contract will not be binding.

L.5  FAILURE TO SUBMIT OFFERS

     Recipients of this solicitation not responding with an offer should not
     return this solicitation. Instead, they should advise the Contracting
     Officer, John Soderberg, 441 4th Street N.W., Suite 700 South, Washington
     DC, 20001 by letter or postcard whether they want to receive future
     solicitations for similar requirements. It is also requested that such
     recipients advise the Contracting Officer, John Soderberg of the reason for
     not submitting a proposal in response to this solicitation. If a recipient
     does not submit an offer and does not notify the Contracting Officer, that
     future solicitations are desired, the recipient's name may be removed from
     the applicable mailing list.

L.6  RESTRICTION ON DISCLOSURE AND USE OF DATA

L.6.1 Offerors who include in their proposal data that they do not want
     disclosed to the public or used by the District except for use in the
     procurement process shall mark the title page with the following legend:

     "This proposal includes data that shall not be disclosed outside the
     District and shall not be duplicated, used or disclosed in whole or in part
     for any purpose except for use in the procurement process.

     If, however, a contract is awarded to this offeror as a result of or in
     connection with the submission of this data, the District will have the
     right to duplicate, use, or disclose the data to the extent consistent with
     the District's needs in the procurement process. The restriction does not
     limit the District's right to use, without restriction, information
     contained in this proposal if it is obtained from another source. The data
     subject to this restriction are contained in sheets (insert page numbers or
     other identification of sheets)."

L.6.2 Mark each sheet of data it wishes to restrict with the following legend:

          "Use or disclosure of data contained on this sheet is subject to the
          restriction on the title page of this proposal."

L.7  PROPOSALS WITH OPTION YEARS

     The offeror shall include option year prices in its price/cost proposal. An
     offer may be determined to be unacceptable if it fails to include option
     year pricing.

L.8  PROPOSAL PROTESTS

     Any actual or prospective offeror or contractor who is aggrieved in
     connection with the solicitation or award of a contract, must file with the
     D.C. Contract Appeal Board (Board) a protest no later than 10 business days
     after the basis of protest is known or

                                                                              29

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     should have been know, whichever is earlier. A protest based on alleged
     improprieties in a solicitation which are apparent at the time set for
     receipt of initial proposals shall be filed with the Board prior to the
     time set for receipt of initial proposals. In procurement in which
     proposals are requested, alleged improprieties which do not exist in the
     initial solicitation, but which are subsequently incorporated into the
     solicitation, must be protested no later than the next closing time for
     receipt of proposals following the incorporation. The protest shall be
     filed in writing, with the Contract Appeals Board, 717 14th Street, N.W.,
     Suite 430, Washington, D.C. 20004. The aggrieved person shall also mail a
     copy of the protest to the Contracting Officer for the solicitation.

L.9  SIGNING OF OFFERS

     The offeror shall sign the offer and print or type its name on the
     Solicitation, Offer and Award form of this solicitation. Offers signed by
     an agent shall be accompanied by evidence of that agent's authority, unless
     that evidence has been previously furnished to the Contracting Officer.

L.10 UNNECESSARILY ELABORATE PROPOSALS

     Unnecessarily elaborate brochures or other presentations beyond those
     sufficient to present a complete and effective response to this
     solicitation are not desired and may be construed as an indication of the
     offeror's lack of cost consciousness. Elaborate artwork, expensive paper
     and bindings, and expensive visual and other presentation aids are neither
     necessary nor desired.

L.11 RETENTION OF PROPOSALS

     All proposal documents will be the property of the District and retained by
     the District, and therefore will not be returned to the offerors.

L.12 PROPOSAL COSTS

     The District is not liable for any costs incurred by the offerors in
     submitting proposals in response to this solicitation.

L.13 ELECTRONIC COPY OF PROPOSALS FOR FREEDOM OF INFORMATION ACT REQUESTS

     In addition to other proposal submission requirements, the offeror must
     submit an electronic copy of its proposal, redacted in accordance with any
     applicable exemptions from disclosure in D.C. Official Code Section 2-534,
     in order for the District to comply with Section 2-536(b) that requires the
     District to make available electronically copies of records that must be
     made public. The District's policy is to release documents relating to
     District proposals following award of the contract, subject to applicable
     FOIA exemption under Section 2-534(a)(l).

L.14 ACKNOWLEDGEMENT OF AMENDMENTS

                                                                              30

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     The offeror shall acknowledge receipt of any amendment to this solicitation
     (a) by signing and returning the amendment; (b) by identifying the
     amendment number and date in the space provided for this purpose in Section
     A, Solicitation, Offer and Award form; or (c) by letter or telegram
     including mailgrams. The District must receive the acknowledgement by the
     date and time specified for receipt of offers. Offerors' failure to
     acknowledge an amendment may result in rejection of the offer.

L.15 BEST AND FINAL OFFERS

     If, subsequent to receiving original proposals, negotiations are conducted,
     all offerors within the competitive range will be so notified and will be
     provided an opportunity to submit written best and final offers at the
     designated date and time. Best and Final Offers will be subject to the Late
     Submissions, Late Modifications and Late Withdrawals of Proposals provision
     of the solicitation. After receipt of best and final offers, no discussions
     will be reopened unless the Contracting Officer determines that it is
     clearly in the District's best interest to do so, e.g., it is clear that
     information available at that time is inadequate to reasonably justify
     Contractor selection and award based on the best and final offers received.
     If discussions are reopened, the Contracting Officer shall issue an
     additional request for best and final offers to all offerors still within
     the competitive range.

L.16 LEGAL STATUS OF OFFEROR

     Each proposal must provide the following information:

L.16.1 Name, address, telephone number and federal tax identification number of
     offeror;

L.16.2 A copy of each District of Columbia license, registration or
     certification that the offeror is required by law to obtain. This mandate
     also requires the offeror to provide a copy of the executed "Clean Hands
     Certification" that is referenced in D.C. Official Code Section 47-2862
     (2001), if the offeror is required by law to make such certification. If
     the offeror is a corporation or partnership and does not provide a copy of
     its license, registration or certification to transact business in the
     District of Columbia, the offer shall certify its intent to obtain the
     necessary license, registration or certification prior to contract award or
     its exemption from such requirements; and

L.16.3 If the offeror is a partnership or joint venture, the names and addresses
     of the general partners or individual members of the joint venture, and
     copies of any joint venture or teaming agreements.

L.18 FAMILIARIZATION WITH CONDITIONS

     Offerors shall thoroughly familiarize themselves with the terms and
     conditions of this solicitation, acquainting themselves with all available
     information regarding difficulties which may be encountered, and the
     conditions under which the work is to be accomplished. Contractors will not
     be relieved from assuming all responsibility for properly estimating the
     difficulties and the cost of performing the services required herein

                                                                              31

<PAGE>

NATURAL GAS/ELECTRICITY                                         POAM-2006-R-0005

     due to their failure to investigate the conditions or to become acquainted
     with all information, schedules and liability concerning the services to be
     performed.

L.19 STANDARDS OF RESPONSIBILITY

     The prospective contractor must demonstrate to the satisfaction of the
     District the capability in all respects to perform fully the contract
     requirements, therefore, the prospective contractor must submit the
     documentation listed below, within five (5) days of the request by the
     District.

L.19.1 Evidence of adequate financial resources, credit or the ability to obtain
     such resources as required during the performance of the contract.

L.19.2 Evidence of the ability to comply with the required or proposed delivery
     or performance schedule, taking into consideration all existing commercial
     and governmental business commitments.

L.19.3 Evidence of the necessary organization, experience, accounting and
     operational control, technical skills or the ability to obtain them.

L.19.4 Evidence of compliance with the applicable District licensing and tax
     laws and regulations.

L.19.5 Evidence of a satisfactory performance record, record of integrity and
     business ethics.

L.19.6 Evidence of the necessary production, construction and technical
     equipment and facilities or the ability to obtain them.

L.19.7 Evidence of other qualifications and eligibility criteria necessary to
     receive an award under the applicable laws and regulations.

L.19.8 If the prospective contractor fails to supply the information requested,
     the Contracting Officer shall make the determination of responsibility or
     nonresponsibility based upon available information. If the available
     information is insufficient to make a determination of responsibility, the
     Contracting Officer shall determine the prospective contractor to be
     nonresponsible.

                                                                              32
<PAGE>

<TABLE>
<S>                                                  <C>                               <C>
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT   1. Contract Number                                Page Of Pages
                                                        ____________________________             1           |           1

2. Amendment/Modification Number  3. Effective Date  4. Requisition/Purchase Req. No.  5. Solicitation Caption
   Amendment #2                      8/16/2006          ____________________________   Natural Gas/Electricity

6. Issued by:                CODE [_______________]  7. Administered by (If other than line 6)

   Office of Contracting and Procurement                Office of Contracting and Procurement
   Group VII                                            Group VII
   441 4th Street, N.W., Suite 700 South                441 4th Street, N.W., Suite 700 South
   Washington, D.C. 20001                               Washington, D.C. 20001

8. Name and Address of Contractor (No. street, city, county, state and zip code)  [X] 9A. Amendment of Solicitation No.
                                                                                          POAM-2006-R-000
                                                                                  [ ] 9B. Dated (See Item 11)

                                                                                  [ ] 10A. Modification of Contract or Order No.

                                                                                  [ ] 10B. Dated (See Item 13)
Code [__________]                                          Facility [__________]           8/11/2006

                                      11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ]  The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
     [ ] is extended. [X] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of
the following methods:

(a) By completing Items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each
copy of the offer submitted; or (c) BY separate letter or fax which includes a reference to the solicitation and amendment number.
FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED
MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change
may be made by letter or fax, provided each letter or telegram makes reference to the solicitation and this amendment, and is
received prior to the opening hour and date specified.

12. Accounting and Appropriation Data (If Required)

                                 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTORS/ORDERS,
                                     IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14

     A.   This change order is issued pursuant to (Specify Authority):
          The changes set forth in Item 14 are made in the contract/order no. in item 10A.

     B.   The above numbered contract/order is modified to reflect the administrative changes (such as changes in paying office,
          appropriation data, etc.) set forth in item 14, pursuant to the authority of 27 DCMR. Chapter 36. Section 3601.2.

     C.   This supplemental agreement is entered into pursuant to authority of:

     D.   Other (Specify type of modification and authority)

E. IMPORTANT: Contractor [ ] is not [X] is required to sign this document and return 1 copies to the issuing office.

14.  Description of Amendment/Modification (Organized by UCF Section headings, including solicitation/contract subject matter where
     feasible.)

A. Under Section M.1, paragraph 4 this paragraph is amended by the deletion of the last sentence, which states "Multiple awards will
not be considered." and replaced with "The District reserves the right to award multiple contracts."

15A. Name and title of signer (Type or Print)        16A. Name of Contracting Officer
                                                     John Soderberg

15B. Name of Contractor   15C. Date Signed           16B. District of Columbia                16C. Date Signed

-----------------------        ------------------    ---------------------------------------       -------------------
            (Signature)                                   (Signature of Contracting Officer)
</TABLE>
<PAGE>

<TABLE>
<S>                                                  <C>                               <C>
AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT   1. CONTRACT NUMBER                                PAGE OF PAGES
                                                        _____________________________            1           |           2

2. Amendment/Modification Number  3. Effective Date  4. Requisition/Purchase Req. No.  5. Solicitation Caption
   Amendment No. 1                   7/10/07            _____________________________  Natural Gas/Electricity

6. Issued By                 CODE [_______________]  7. Administered by (If other than line 6)
   Office of the Contracting and Procurement            Office of Contracting and Procurement
   Group VII                                            Group VII
   441 4th Street, N.W., Suite 700 South                441 4th Street, N.W., Suite 700 South
   Washington, D.C. 20001                               Washington, D.C. 20001

8. Name And Address Of Contractor (No. Street, county, State and zip code)        [X] 9A. Amendment of Solicitation No.
                                                                                          POAM-2006-R-0005
                                                                                  [ ] 9B. Dated (See Item 11)
                                                                                          7/10/06

                                                                                  [ ] 10A. Modification of Contract/Order No.

Code [__________]                                          Facility [__________]  [ ] 10B. Dated (See Item 13)

                                      11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [ ] is
extended [X] is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the
solicitation or as amended, by one of the following methods:

(a) By completing Items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each
copy of the offer submitted; or (c) BY separate letter or fax which includes a reference to the solicitation and amendment number.
FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATA SPECIFIED
MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change
may be made by letter or fax, provided each letter or telegram makes reference to the solicitation and this amendment, and is
received prior to the opening hour and data specified.

12. Accounting and Appropriation Data (If Required)

                                 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
                                     IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

     A.   This change order is issued pursuant to (Specify Authority):
          The changes set forth in Item 14 are made in the contract/order no. in item 10A.

     B.   The above numbered contract/order is modified to reflect the administrative changes (such as changes in paying office,
          appropriation date, etc.) set forth in item 14, pursuant to the authority of 27 DCMR, Chapter 36, Section 3601.2.

     C.   This supplemental agreement is entered into pursuant to authority of:

     D.   Other (specify type of modification and authority)

E. IMPORTANT: Contractor [ ] is not [X] is required to sign this document and return 1 copies to the issuing office.

14.  Description of Amendment/Modification (Organized by UCF Section headings, including solicitation/contract subject matter where
     feasible.)

     A. Question:

     Under Section C.1, the RFP reads "The District is requested proposals for the provision of performance-based supply side energy
     services, which include but are not limited to: performance of real time, online reverse energy auctions, energy acquisition
     services and energy consultant service. Does this mean that the RFP response can only be in the form of a reverse auction?

     Answer:

     Reverse auction is the only acceptable process that the District will consider.

     B. Question:

     Under Section C.3.1, the RFP states "The RFP must have conducted an energy auction for at least one federal, state or local
     government client, large and small commercial groups, as well as residential which resulted in energy supply contract awards
     servicing at least 500 accounts. Is the 500 residential accounts an absolute requirement? or does it suffice that the auction
     process proposed meets the requirements of the RFP for Governmental groups?

15A. Name and title of signer (Type or Print)        16A. Name of Contracting Officer
                                                     John Soderberg

15B. Name of Contractor  15C. Date Signed            16B. District of Columbia                16C. Date Signed

-----------------------       ------------------     ---------------------------------------       --------------------------
            (Signature)                                   (Signature of Contracting Officer)
</TABLE>

<PAGE>

AMENDMENT OF SOLICITATION / MODIFICATION OF CONTRACT

Page 2 of 2

Answer

     The District has included residential accounts and a total number of
     accounts of 500. The District wants some degree of assurance that the
     Contractor can handle many accounts simultaneously. Generally the
     government accounts are larger than the residential accounts. The District
     would like some residential experience.

C.   On page 9 of the solicitation Section C.6 Submission of Proposals, Delete
     the second paragraph. Submission of proposals shall be in accordance with
     page 25 Section L.2 Proposal Form, Organization and content.

D.   E-mail proposals are not acceptable and the due date and time for accepting
     proposals is 2:00 p.m. on July 26, 2006.

                                        2

<PAGE>

<TABLE>
<S>                                         <C>                              <C>
SOLICITATION, OFFER AND AWARD               1. Caption                                            Page of Pages
                                                Natural Gas and Electricity               1             |             33

2. Contract Number  3. Solicitation Number  4. Type of Solicitation          5. Date Issued  6. Type of Market
                                            [ ] Sealed Bid (IFB)                             [X] Open
                                            [X] Sealed Proposals (RFP)                       [ ] Set Aside
                                            [ ] Sole Source                                  [ ] Open with Sub-Contracting Set Aside
                                            [ ] Human Care Agreements
                    POAM-2006-R-0005        [ ] Emergency                       6/26/2006

7. Issued By:                               8. Address Offer To:
Office of Contracting and Procurement       Office of Contracting and Procurement
Group VII                                   Group VII
441 4th Street, NW, Suite 700 South         441 4th Street, NW, Suite 700 South
Washington, DC 20001                        Washington, DC 20001

NOTE: In sealed bid solicitations "offer" and "offeror" means "bid" and "bidder".

                                                            SOLICITATION

9.   Sealed offers in original and 6 copies for furnishing the supplies or services in the Schedule will be received at the place
     specified in Item 8, or if hand carried to the bid counter located at 441 4th Street, NW, Suite 700 South, Washington, DC until
     3:00 p.m. local time, 26-Jul-06.

CAUTION - Late Submissions, Modifications, and Withdrawals: See 27 DCMR Chapters 15 & 16 as applicable. All offers are subject to
all terms and conditions contained in this solicitation.

                             A. Name                     B. Telephone          C. Email Address
10. For Information Contact                      ----------------------------
                                                 (Area Code)  (Number)  (Ext)
                                                 -----------  --------  -----
                             Delorise P. Ragins      202      727-6605         delorise.ragins@dc.gov

                                                        11. Table of Contents

(x) Section             Description              Page No.  (X) Section                           Description                Page No.
--- ------- ------------------------------------ --------  --- ------- ---------------------------------------------------- --------
                  PART I - THE SCHEDULE                                            PART II - CONTRACT CLAUSES
[X]    A    Solicitation/Contract Form               1     [X]    I    Contract Clauses                                        17
[X]    B    Supplies or Services and Price/Cost      2            PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS
[X]    C    Specifications/Work Statement            6     [X]    J    List of Attachments                                     21
[X]    D    Packaging and Marking                   12                     PART IV - REPRESENTATIONS AND INSTRUCTIONS
[X]    E    Inspection and Acceptance               13            K    Representations, certifications and other               22
[X]    F    Deliveries or Performance               14     [X]         statements of offerors
[X]    G    Contract Administration Data            15     [X]    L    Instructions, conditions & notices to offerors          26
[X]    H    Special Contract Requirements           16     [X]    M    Evaluation Factors for Award                            32

                                                                OFFER

12.  In compliance with the above, the undersigned agrees, if this offer is accepted within 120 calendar days from the date for
     receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each
     item, delivered at the designated point(s), within the time specified herein.

13.  Discount for Prompt Payment                 10 Calendar Days %  20 Calendar Days %  30 Calendar Days %  _____ Calendar Days

                                                  Amendment Number          Date          Amendment Number           Date
                                                 ------------------  ------------------  ------------------  -------------------
14.  Acknowledgement of Amendments (The offeror  __________________  __________________  __________________  ___________________
     acknowledges receipt of amendments to the   __________________  __________________  __________________  ___________________
     SOLICITATION):                              __________________  __________________  __________________  ___________________

15A.                                             16.  Name and Title of Person Authorized to Sign Offer/Contract
      Name and   ______________________________
     Address of  ______________________________       __________________________
       Offeror   ______________________________       __________________________

       15B. Telephone         [ ] 15C. Check if remittance address is different from  17. Signature           18. Offer Date
----------------------------      above - Refer to Section G
(Area Code)  (Number)  (Ext)
___________  ________  _____                                                          ----------------------      --------------

                                                AWARD (TO BE COMPLETED BY GOVERNMENT)

19. Accepted as to Items Numbered                20. Amount  21. Accounting and Appropriation
___________________________________________________________
___________________________________________________________

22. Name of Contracting Officer (Type or Print)  23. Signature of Contracting Officer (District of Columbia)  24. Award Date
John Soderberg
               -------------------------------       ------------------------------------------------------       ----------

Government of the District of Columbia               Office of Contracting & Procurement
</TABLE>

                              Sol. First Page Offer Award Form - DCOCP-209-V2206--------------------------------------------------------------------------------

                          REGISTRATION RIGHTS AGREEMENT

                                  BY AND AMONG

                         ULTRAPETROL (BAHAMAS) LIMITED.

                                       and

                              SOLIMAR HOLDINGS LTD.

                                       AND

                         INVERSIONES LOS AVELLANOS S.A.

                                       AND

                        HAZELS (BAHAMAS) INVESTMENTS INC.

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

                         Dated as of September 21, 2006

      THIS REGISTRATION RIGHTS AGREEMENT, dated as of September 21, 2006, is
made by and between Ultrapetrol (Bahamas) Limited, a corporation organized under
the laws of the Islands of the Bahamas (the "Company"), Solimar Holdings, Ltd.,
a corporation organized under the laws of Bermuda ("Solimar"), Inversiones Los
Avellanos S.A., a corporation organized under the laws of Chile ("Los
Avellanos"), and Hazels (Bahamas) Investments Inc., a company organized under
the laws of Bahamas ("Hazels" and together with Solimar and Los Avellanos, the
"Stockholders" and each, a "Stockholder").

      In consideration of the mutual covenants and agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby agree as follows:

1.    CERTAIN DEFINITIONS.

      In addition to the terms defined elsewhere in this Agreement, the
following terms shall have the following meanings:

      "Affiliate" of any Person means any other Person which directly or
indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, such Person. The term "control" (including the
terms "controlling," "controlled by" and "under common control with") as used
with respect to any Person means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or
otherwise.

      "Agreement" means this Registration Rights Agreement, including all
amendments, modifications and supplements and any exhibits or schedules to any
of the foregoing, and shall refer to this Registration Rights Agreement as the
same may be in effect at the time such reference becomes operative.

      "Common Shares" means shares of common stock, par value $.01 per share, of
the Company and any other shares into which such shares are converted pursuant
to a recapitalization or reorganization.

      "Company" has the meaning set forth in the introductory paragraph.

      "Complete Solimar Disposition" means the disposition by Solimar and any
transferees of Solimar of 100% of the Registrable Common Shares of the Company
beneficially owned by Solimar and such transferees at the date of the closing of
a Qualifying IPO (irrespective of whether such complete disposition is effected
through a single transaction or series of transactions and whether through
registered offerings or private resales under an exemption from registration
under the Securities Act).

      "Demand Registration" has the meaning set forth in Section 2(a) hereof.

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

      "Follow-on" means an underwritten offering of Common Shares registered
under the Securities Act that meets the requirements set forth in Section 11
hereof.

                                        1

      "Free Writing Prospectus" has the meaning given such term in Rule 405
under the Securities Act.

      "Governmental Entity" means any national, federal, state, municipal,
local, territorial, foreign or other government or any department, commission,
board, bureau, agency, regulatory authority or instrumentality thereof, or any
court, judicial, administrative or arbitral body or public or private tribunal.

      "Holder" means any Person who owns, beneficially or otherwise, Registrable
Common Shares at the date of this Agreement and any transferee or successor of
such Person that is, at the date of this Agreement, (i) an Affiliate of such
Holder, or (ii) solely with respect to Solimar, a beneficial or record owner of
common stock of Solimar.

      "Initiating Holder" has the meaning set forth in Section 2(a) hereof.

      "Los Avellanos/Hazels Tag-along Right" has the meaning set forth in
Section 12 hereof.

      "Person" means any individual, sole proprietorship, partnership, limited
liability company, joint venture, trust, incorporated organization, association,
corporation, institution, public benefit corporation, Governmental Entity or any
other entity.

      "Piggyback Registration" has the meaning set forth in Section 4(a) hereof.

      "Prospectus" means the prospectus or prospectuses included in any
Registration Statement, as amended or supplemented by any prospectus supplement,
with respect to the terms of the offering of any portion of the Registrable
Common Shares covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus or prospectuses.

      "Qualifying Follow-on" means the first Follow-on that, alone or when
aggregated with one or more prior Follow-ons, results in aggregate gross
proceeds to Solimar and/or Los Avellanos and Hazels of at least US$50,000,000.

      "Qualifying IPO" means the sale in an underwritten offering of Common
Shares registered under the Securities Act that constitutes the Company's
initial public offering in the United States.

      "Registrable Common Shares" means the Common Shares held by the
Stockholders as of the date of the Qualifying IPO; including, without
limitation, any shares which have been transferred from one Holder to another
since that date; provided, however, that Registrable Common Shares shall not
include any securities previously sold by a Person to the public either pursuant
to a Registration Statement or Rule 144.

      "Registration Expenses" has the meaning set forth in Section 7(a) hereof.

      "Registration Statement" means any registration statement of the Company
filed with the SEC which covers any of the Registrable Common Shares pursuant to
the provisions of this Agreement, including the Prospectus, amendments and
supplements to such Registration Statement, including post-effective amendments,
all exhibits and all materials incorporated by reference in such Registration
Statement.

      "SEC" means the United States Securities and Exchange Commission.

                                        2

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

      "Shelf Registration" has the meaning set forth in Section 3(a) hereof.

      "Solimar Exclusivity Period" means that period of time from the end of the
lock-up period, if any, for a Qualifying Follow-on through the earlier to occur
of (a) the third anniversary thereof and (b) a Complete Solimar Disposition;
provided that (i) the Solimar Exclusivity Period shall terminate if, on or after
the second anniversary of the end of any lock-up period for a Qualifying
Follow-on, Solimar owns less than 5% of the issued and outstanding Common
Shares, (ii) upon the written request of Los Avellanos and/or Hazels, Solimar,
in its sole discretion, may waive, in whole or in part, the Solimar Exclusivity
Period, and (iii) the Solimar Exclusivity Period shall be extended by an
additional 180 days if any Stockholder has requested a Follow-on and (A) Solimar
elects not to participate in such offering or (B) Los Avellanos and/or Hazels
elect (I) not to participate in such offering and (II) to exercise the Los
Avellanos/Hazels Tag-along Right within the Solimar Exclusivity Period
(determined without application of this clause (iii)).

      "Stockholder" has the meaning set forth in the introductory paragraph.

      "Suspension Notice" has the meaning set forth in Section 6(f) hereof.

      "Underwritten registration" or "underwritten offering" means a transaction
in which securities of the Company are sold to underwriters on a firm commitment
basis for reoffering to the public pursuant to a Registration Statement.

      "Withdrawn Demand Registration" has the meaning set forth in Section 2(f)
hereof.

2.    DEMAND REGISTRATIONS.

      (a)   Right to Request Registration. At any time after the end of the
lock-up period for a Qualifying IPO, the Company and any Stockholder(s) shall
have the right to request one or more Follow-ons. Following a Qualified
Follow-on, but subject to the Solimar Exclusivity Period, any remaining
Stockholder(s) owning at least 5% of the Common Shares at such time issued and
outstanding, may request registration under the Securities Act (each, the
"Initiating Holder") of all or part of the Registrable Common Shares held by it
("Demand Registration"). For the avoidance of doubt, it shall be understood that
neither Los Avellanos nor Hazels may request a Demand Registration until the
expiration of the Solimar Exclusivity Period.

      Within 10 days after receipt of any such request for Demand Registration,
the Company shall give written notice of such request to all other Stockholders
and shall, subject to the provisions of Sections 2(c) and 2(d) hereof, include
in such registration all such Registrable Common Shares with respect to which
the Company has received written requests for inclusion therein within 15 days
after the date of the Company's notice. Such participation by any Stockholder
other than the Initiating Holder shall not reduce the number of Demand
Registrations allocated to such Stockholder under Section 2(b) hereof.

                                        3

      (b)   Number of Demand Registrations. Subject to the provisions of
Section 2(a), Solimar shall be entitled to request an aggregate of four Demand
Registrations and Los Avellanos and Hazels shall be entitled to request an
aggregate of two Demand Registrations. A registration shall not count as one of
the permitted Demand Registrations (i) until the Registration Statement related
to such Demand Registration has become effective, (ii) if the Initiating Holder
requesting such registration is not able to have registered and sold 80% of the
Registrable Common Shares requested by such Initiating Holder to be included in
such registration or (iii) in the case of a Demand Registration that would be
the last permitted Demand Registration requested by such Initiating Holder
hereunder, if the Initiating Holder requesting such registration is not able to
have registered and sold all of the Registrable Common Shares requested to be
included by such Initiating Holder in such registration.

      (c)   Priority on Demand Registrations. The Company shall not include in
any Demand Registration any securities which are not Registrable Common Shares
without the prior written consent of all Holders of Registrable Common Shares to
be included in such registration, and, if such Demand Registration is an
underwritten offering, without the prior written consent of the managing
underwriter(s). If the managing underwriter(s) of the requested Demand
Registration advise the Company in writing that in their opinion the number of
shares of Registrable Common Shares proposed to be included in any such
registration exceeds the number of Common Shares which can be sold in such
offering without having an adverse affect on the price of the Registrable Common
Shares to be sold in such offering, the Company shall include in such
registration only the number of shares of Registrable Common Shares which in the
opinion of such managing underwriter(s) can be sold without having the adverse
effect referred to above. If the number of shares which can be sold without
having the adverse effect referred to above is less than the number of shares of
Registrable Common Shares proposed to be registered, the amount of Registrable
Common Shares to be so sold shall be allocated during the Solimar Exclusivity
Period first to shares of Registrable Common Shares requested to be registered
by Solimar or any transferee of such Registrable Common Shares and second to the
shares of Registrable Common Shares requested to be registered by Los Avellanos
and Hazels or any transferee of such Registrable Common Shares that is an
Affiliate of Los Avellanos or Hazels, as applicable.

      (d)   Restrictions on Demand Registrations. The Company shall not be
obligated to effect any Demand Registration within three months after the
termination of an offering under a previous Demand Registration or after the
termination of an offering under a previous registration under which the
Initiating Holder had piggyback rights pursuant to Section 4 hereof where the
Initiating Holder sold 50% or more of the Registrable Common Shares requested to
be included therein. The Company may postpone for up to 90 days the filing or
the effectiveness of a Registration Statement for a Demand Registration if,
based on the good faith judgment of the Company's board of directors, such
postponement or withdrawal is necessary in order to avoid premature disclosure
of a matter the board has determined would not be in the best interest of the
Company to be disclosed at such time; provided, that in no event shall the
Company withdraw a Registration Statement after such Registration Statement has
been declared effective; and provided, further, that in the event described
above, the Initiating Holder requesting such Demand Registration shall be
entitled to withdraw such request and, if

                                        4

such request is withdrawn, such Demand Registration shall not count as one of
such Initiating Holder's permitted Demand Registrations. The Company shall
provide written notice to the Initiating Holder requesting such Demand
Registration of (i) any postponement or withdrawal of the filing or
effectiveness of a Registration Statement pursuant to this Section 2(d), (ii)
the Company's decision to file or seek effectiveness of such Registration
Statement following such withdrawal or postponement and (iii) the effectiveness
of such Registration Statement. The Company may defer the filing of a particular
Registration Statement pursuant to this Section 2(d) only once during any
12-month period.

      (e)   Selection of Underwriters. If any of the Registrable Common Shares
covered by a Demand Registration are to be sold in an underwritten offering, (i)
during the Solimar Exclusivity Period, Solimar shall have the right to select
the managing underwriter(s) to administer the offering, subject, only in the
event that Los Avellanos and Hazels waive in writing their rights under Section
2(a) to include Registrable Common Shares in such Demand Registration, to the
approval of the Company, which shall not be unreasonably withheld; and (ii)
following the expiration of the Solimar Exclusivity Period, the Initiating
Holder shall have the right to select the managing underwriter(s) to administer
the offering, subject to the approval of the Company, which shall not be
unreasonably withheld.

      (f)   Effective Period of Demand Registrations. After any Registration
Statement related to a Demand Registration filed pursuant to this Agreement has
become effective, the Company shall use its best efforts to keep such
Registration Statement effective for a period equal to 180 days from the date on
which the SEC declares such Registration Statement effective (or if such
Registration Statement is not effective during any period within such 180 days,
such 180-day period shall be extended by the number of days during such period
when such Registration Statement is not effective), or such shorter period which
shall terminate when all of the Registrable Common Shares covered by such
Registration Statement have been sold pursuant to such Registration Statement.
If the Company shall withdraw any Registration Statement prior to the
effectiveness thereof pursuant to Section 2(d) (a "Withdrawn Demand
Registration"), the Initiating Holder of the Registrable Common Shares
originally covered by such Withdrawn Demand Registration shall be entitled to a
replacement Demand Registration for which (subject to the provisions of this
Section 2) the Company shall use its best efforts to keep effective a
Registration Statement for a period commencing on the effective date of such
Registration Statement and ending on the earlier to occur of the date (i) which
is 180 days from the effective date of such Registration Statement and (ii) on
which all of the Registrable Common Shares covered by such Registration
Statement have been sold. Such additional Demand Registration otherwise shall be
subject to all of the provisions of this Agreement.

3.    SHELF REGISTRATION.

      (a)   At such time following the expiration of any lock-up period
relating to a Qualifying Follow-on, when the Company is able to use Form F-3
under the Securities Act (or any successor form) for sales of Registrable Common
Shares by a Stockholder, at the request of (i) Solimar, during the Solimar
Exclusivity Period, or (ii) following the

                                        5

expiration of the Solimar Exclusivity Period, any remaining Stockholder or
Stockholders, the Company shall use commercially reasonable efforts to effect,
as expeditiously as possible, the registration under the Securities Act of any
number of Registrable Common Shares for which it receives requests in accordance
with this Section 3(a) (the "Shelf Registration"). The Company shall use its
best efforts to cause such Registration Statement to become effective as
promptly as practicable and maintain the effectiveness of such Registration
Statement (subject to the terms and conditions herein) for a period ending on
the earlier of (i) two years following the date on which such Registration
Statement first becomes effective and (ii) the date on which all Registrable
Common Shares covered by such Registration Statement (A) have been sold and the
distribution contemplated thereby has been completed or (B) have become freely
tradeable pursuant to Rule 144 without regard to volume.

      (b)   The Shelf Registration Statement filed pursuant to this Section 3
shall, to the extent possible under applicable law, be effected to permit sales
on a continuous basis pursuant to Rule 415 under the Securities Act. Any
takedown under the Shelf Registration pursuant to this Section 3 may or may not
be underwritten; provided, however, that (i) the requesting Stockholder may
request any underwritten takedown only be effected as a Demand Registration (in
which event, unless such Demand Registration would not require representatives
of the Company to meet with prospective purchasers of the Common Shares, a
Demand Registration must be available thereunder and the number of Demand
Registrations available to the requesting Stockholder shall be reduced by one
under Section 2(b)) or (ii) Stockholders may request an unlimited number of
underwritten takedowns to be effected in accordance with the terms of Section 4.
The Company shall be entitled to effect the Shelf Registration on Form F-3 or,
if that form is unavailable to the Company, Form F-1 under the Securities Act.

      (c)   In the event of a request for a Shelf Registration pursuant to
Section 3(a), the Company shall give written notice of the proposed filing of
the Registration Statement in connection therewith to all Stockholders offering
to each of such Stockholders the opportunity to have any or all of the
Registrable Common Shares held by such Stockholder included in such Registration
Statement, unless such request is made by Solimar during the Solimar Exclusivity
Period and the Los Avellanos/Hazels Tag-along Right is not operative. Each
Holder desiring to have its Registrable Common Shares registered under this
Section 3(c) shall so advise the Company in writing within 15 days after the
date of such notice from the Company (which request shall set forth the amount
of Registrable Common Shares for which registration is requested), and, subject
to the limitations in the immediately preceding sentence, the Company shall
include in such Registration Statement all such Registrable Common Shares so
requested to be included therein.

      (d)   Neither the Company nor any other holder of the Company's
securities who has registration rights (other than the Stockholders in
accordance with this Section 3), may include its securities in any Shelf
Registration effected pursuant to this Section 3.

                                        6

4.    PIGGYBACK REGISTRATIONS.

      (a)   Right to Piggyback. If at any time following the expiration of any
lock-up period relating to a Qualifying Follow-on, the Company proposes to
register any of its common equity securities under the Securities Act (other
than a registration statement on Form S-8 or on Form F-4 or any similar
successor forms thereto), whether for its own account or for the account of one
or more Stockholders (subject to the terms of this Agreement), and the
registration form to be used may be used for any registration of Registrable
Common Shares (a "Piggyback Registration"), the Company shall give prompt
written notice (in any event within 20 days after its receipt of notice of any
exercise of other demand registration rights) to all Holders of its intention to
effect such a registration. During the Solimar Exclusivity Period, no Holder
other than Solimar and its transferees shall be entitled to participate in such
Piggyback Registration, provided, however, that Los Avellanos and Hazels may
participate to the extent permitted by the Los Avellanos/Hazels Tag-along Right,
if operative at such time; and provided further that such other Holders may
participate in such Piggyback Registration if the proposed offering to which
such request relates is an underwritten offering and consummation of such
offering will result in a Complete Solimar Disposition, and provided, further,
that such other Holders may participate in such Piggyback Registration on a
pro-rata basis after the end of the Solimar Exclusivity Period. Subject to
Sections 4(b) and 4(c) hereof, the Company shall include in such Registration
Statement all such Registrable Common Shares requested by Solimar or its
transferees (or, to the extent permitted by the provisos to the immediately
preceding sentence, such other Holder or Holders as shall participate in such
Piggyback Registration) in writing to be included therein. Following the
expiration of the Solimar Exclusivity Period, each remaining Holder (including
Solimar, if a Complete Solimar Disposition shall not have occurred prior to the
end of the Solimar Exclusivity Period) shall have the opportunity to have any or
all of the Registrable Common Shares held by such Holder included in such
Registration Statement. In such event, the Company shall include in such
Registration Statement all such Registrable Common Shares with respect to which
the Company has received written requests for inclusion therein. All requests
made to the Company for registration of Registrable Common Shares under this
Section 4(a) must be made within 15 days after the date of the Company's notice.
The Company may postpone or withdraw the filing or the effectiveness of a
Piggyback Registration at any time in its sole discretion. The Company shall
promptly notify each Holder (which notice may be in the initial notice of the of
Company's intention to effect a registration of its Common Shares) in the event
that such Holder's Registrable Common Shares cannot be registered under this
Section 4(a) during the Solimar Exclusivity Period.

      (b)   Priority on Primary Piggyback Registrations. If a Piggyback
Registration is a primary underwritten registration on behalf of the Company,
and the managing underwriter(s) advise the Company in writing that in their
opinion the number of Common Shares requested to be included in such
registration exceeds the number which can be sold in such offering without
having an adverse effect on such offering, the Company shall include in such
registration (A) if such registration occurs during the Solimar Exclusivity
Period, (i) first, the Common Shares the Company proposes to sell, (ii) second,
the Registrable Common Shares requested to be included therein by Solimar or any
transferee of such Registrable Common Shares and (iii) to the extent permitted
by

                                        7

the provisos to Section 4(a), the Registrable Common Shares requested to be
included therein by such other Holder or Holders as shall be permitted to
participate in such Piggyback Registration; and (B) if such registration occurs
after the expiration of the Solimar Exclusivity Period, (i) first, the Common
Shares the Company proposes to sell and (ii) second, pro rata among the Holders
of such Common Shares on the basis of the number of Common Shares requested to
be registered by such Holders.

      (c)   Priority on Secondary Piggyback Registrations. If a Piggyback
Registration is a secondary underwritten registration on behalf of a holder of
Common Shares, and the managing underwriter(s) advise the Company in writing
that in their opinion the number of Common Shares requested to be included in
such registration exceeds the number which can be sold in such offering without
having an adverse effect on such offering, the Company shall include in such
registration (i) first, the Common Shares requested to be included therein by
the holders requesting such registration, pro rata among such holders on the
basis of the number of Common Shares requested to be registered by such holders,
(ii) second, the Registrable Common Shares requested to be included therein by
Solimar (if Solimar has not effected a Complete Solimar Disposition at such
time) or any transferee of Solimar's Registrable Common Shares and (iii) third,
the Registrable Common Shares requested to be included therein by such other
Holder or Holders as shall be permitted to participate in such Piggyback
Registration.

      (d)   Priority of Registration Rights. Notwithstanding any provision
herein to the contrary, the parties hereto agree that any registration rights
granted to any holder of Common Stock, other than a Holder, shall be at all
times subject and subordinate to the rights of the Holders granted herein.

      (e)   Selection of Underwriters. If any Piggyback Registration is a
primary underwritten offering, the Company shall have the right to select the
managing underwriter(s) to administer any such offering.

      (f)   Other Registrations. If the Company has previously filed a
Registration Statement with respect to Registrable Common Shares, and if such
previous registration has not been withdrawn or abandoned, the Company shall not
be obligated to cause to become effective any other registration of Common
Shares under the Securities Act, whether on its own behalf or at the request of
any holder or holders of such Common Shares, until a period of at least 90 days
has elapsed from the termination of the offering under the previous
registration.

5.    HOLDBACK AGREEMENTS.

      The Company agrees not to effect any sale or distribution of any of its
equity securities during the 10 days prior to and during the 180 days (as such
180-day period may be extended pursuant to any lock-up agreement between the
Company and the underwriter(s) managing such offering) beginning on the
effective date of any underwritten Demand Registration, any underwritten Shelf
Registration, any underwritten Piggyback Registration (except as part of such
underwritten registration or pursuant to registrations on Form S-8 or F-4 or any
successor forms thereto), or any underwritten registration relating to a
Follow-on or a Qualifying Follow-on, unless in any such case such underwriter(s)
otherwise agree to a shorter period.

                                        8

6.    REGISTRATION PROCEDURES.

      (a)     Whenever the Holders request that any Registrable Common Shares be
registered pursuant to and in accordance with this Agreement, the Company shall
use its best efforts to effect the registration and the sale of such Registrable
Common Shares in accordance with the intended methods of disposition thereof,
and pursuant thereto the Company shall as expeditiously as possible:

      (i)     prepare and file with the SEC a Registration Statement with
              respect to such Registrable Common Shares and use its best efforts
              to cause such Registration Statement to become effective as soon
              as practicable thereafter; and before filing a Registration
              Statement, Prospectus or Free Writing Prospectus or any amendments
              or supplements thereto, furnish not fewer than five business days
              prior to the initial filing of such Registration Statement or
              Prospectus and with reasonable and customary periods to review for
              subsequent filings, and not fewer than one business day prior to
              the filing of such Free Writing Prospectus, to the Holders of
              Registrable Common Shares covered by such Registration Statement
              and the underwriters(s), if any, copies of all such documents
              proposed to be filed, including documents incorporated by
              reference in the Prospectus and, if requested by such Holders, the
              exhibits to such Registration Statement, and such Holders shall
              have the opportunity to object to any information pertaining to
              such Holders that is contained therein and the Company will make
              the corrections reasonably requested by such Holders with respect
              to such information prior to filing any Registration Statement or
              amendment thereto, any Prospectus or any supplement thereto or any
              Free Writing Prospectus;

      (ii)    prepare and file with the SEC such amendments and supplements to
              such Registration Statement and the Prospectus used in connection
              therewith as may be necessary to keep such Registration Statement
              effective for a period of not less than 180 days, in the case of a
              Demand Registration or such shorter period as is necessary to
              complete the distribution of the Common Shares covered by such
              Registration Statement and comply with the provisions of the Act
              with respect to the disposition of all Common Shares covered by
              such Registration Statement during such period in accordance with
              the intended methods of disposition by the sellers thereof set
              forth in such Registration Statement;

      (iii)   furnish to each seller of Registrable Common Shares such number of
              copies of such Registration Statement, each amendment and
              supplement thereto, the Prospectus included in such Registration
              Statement (including each preliminary Prospectus, if any) and such
              other documents as such seller may reasonably request in order to
              facilitate the disposition of the Registrable Common Shares owned
              by such seller;

      (iv)    use its best efforts to register or qualify such Registrable
              Common Shares under such other securities or blue sky laws of such
              jurisdictions as any seller reasonably requests and do any and all
              other acts and things which

                                        9

              may be reasonably necessary or advisable to enable such seller to
              consummate the disposition in such jurisdictions of the
              Registrable Common Shares owned by such seller (provided, that the
              Company will not be required to (x) qualify generally to do
              business in any jurisdiction where it would not otherwise be
              required to qualify but for this subparagraph 6(a)(iv), (y)
              subject itself to taxation in any such jurisdiction, or (z)
              consent to general service of process in any such jurisdiction);

      (v)     notify each seller of such Registrable Common Shares, at any time
              when a Prospectus relating thereto is required to be delivered
              under the Securities Act, of the occurrence of any event as a
              result of which the Prospectus included in such Registration
              Statement, taken together with any previously filed Free Writing
              Prospectuses, contains an untrue statement of a material fact or
              omits any fact necessary to make the statements therein not
              misleading, and, at the request of any such seller, the Company
              shall prepare a supplement or amendment to such Prospectus or a
              Free Writing Prospectus, as requested by such seller, so that, as
              thereafter delivered to the purchasers of such Registrable Common
              Shares, such Prospectus, taken together with all previously filed
              Free Writing Prospectuses, shall not contain an untrue statement
              of a material fact or omit to state any material fact necessary to
              make the statements therein not misleading;

      (vi)    in the case of an underwritten offering, enter into such customary
              agreements (including underwriting agreements in customary form
              with customary indemnification provisions) and take all such other
              actions as the Holders of a majority of the Registrable Common
              Shares being sold in such offering or the underwriters reasonably
              request in order to expedite or facilitate the disposition of such
              Registrable Common Shares (including, without limitation, making
              members of senior management of the Company available to
              participate in, and cause them to cooperate with the underwriters
              in connection with, "road-show" and other customary marketing
              activities (including one-on-one meetings with prospective
              purchasers of the Registrable Common Shares)) and cause to be
              delivered to the underwriter(s) and the sellers, if any, opinions
              of outside counsel to the Company in customary form, covering such
              matters as are customarily covered by opinions for an underwritten
              public offering as the underwriter(s) may request and addressed to
              the underwriter(s);

      (vii)   make available, for inspection by any seller of Registrable Common
              Shares, any underwriter participating in any disposition pursuant
              to such Registration Statement, and any attorney, accountant or
              other agent retained by any such seller or underwriter, all
              financial and other records, pertinent corporate documents and
              properties of the Company, and cause the Company's officers,
              directors, employees and independent accountants to supply all
              information reasonably requested by any such seller,

                                       10

              underwriter, attorney, accountant or agent in connection with such
              Registration Statement;

      (viii)  use its best efforts to cause all such Registrable Common Shares
              to be listed on each securities exchange on which securities of
              the same class issued by the Company are then listed;

      (ix)    if requested, cause to be delivered, immediately prior to the
              effectiveness of the Registration Statement (and, in the case of
              an underwritten offering, at the time of delivery of any
              Registrable Common Shares sold pursuant thereto), letters from the
              Company's independent certified public accountants addressed to
              each selling Holder (unless such selling Holder does not provide
              to such accountants the appropriate representation letter required
              by rules governing the accounting profession) and each
              underwriter, if any, stating that such accountants are independent
              registered public accountants within the meaning of the Securities
              Act and the applicable rules and regulations adopted by the SEC
              thereunder and the rules and regulations of the Public Company
              Accounting Oversight Board, and otherwise in customary form and
              covering such financial and accounting matters as are customarily
              covered by letters of the independent registered public
              accountants delivered in connection with primary or secondary
              underwritten public offerings, as the case may be;

      (x)     make generally available to its stockholders a consolidated
              earnings statement (which need not be audited) for the 12 months
              beginning after the effective date of a Registration Statement as
              soon as reasonably practicable after the end of such period, which
              earnings statement shall satisfy the requirements of an earnings
              statement under Section 11(a) of the Securities Act; and

      (xi)    promptly notify each seller of Registrable Common Shares and the
              underwriter(s), if any:

                    (A)   when the Registration Statement, any pre-effective
                          amendment, the Prospectus or any Prospectus
                          supplement, any Free Writing Prospectus related
                          thereto or post-effective amendment to the
                          Registration Statement has been filed and, with
                          respect to the Registration Statement or any
                          post-effective amendment, when the same has become
                          effective;

                    (B)   of any comments of the SEC or of any written request
                          by the SEC for amendments or supplements to the
                          Registration Statement or Prospectus or any Free
                          Writing Prospectus;

                    (C)   of the notification to the Company by the SEC of its
                          initiation of any proceeding with respect to the
                          issuance by the SEC of any stop order suspending the
                          effectiveness of the Registration Statement; and

                                       11

                    (D)   of the receipt by the Company of any notification with
                          respect to the suspension of the qualification of any
                          Registrable Common Shares for sale under the
                          applicable securities or blue sky laws of any
                          jurisdiction.

      (b)   The Company shall ensure that, (i) any Registration Statement, on
the effective date thereof and (ii) any Prospectus (including any Free Writing
Prospectus relating thereto, taken together), as of its issue date, conform in
all respects to the requirements of the Securities Act and the rules and
regulations of the SEC and did not include any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading.

      (c)   The Company shall make available to each Holder whose Registrable
Common Shares are included in a Registration Statement (i) promptly after the
same is prepared and publicly distributed, filed with the SEC, or received by
the Company, one copy of each Registration Statement and any amendment thereto,
each preliminary Prospectus (if any) and Prospectus and each amendment or
supplement thereto, each Free Writing Prospectus relating thereto, each letter
written by or on behalf of the Company to the SEC or the staff of the SEC (or
other Governmental Entity or self-regulatory body or other body having
jurisdiction, including any domestic or foreign securities exchange), and each
item of correspondence from the SEC or the staff of the SEC (or other
Governmental Entity or self-regulatory body or other body having jurisdiction,
including any domestic or foreign securities exchange), in each case relating to
such Registration Statement, and (ii) such number of copies of a Prospectus,
including any preliminary Prospectus, and all amendments and supplements thereto
and such other documents as such Holder may reasonably request in order to
facilitate the disposition of the Registrable Common Shares owned by such
Holder. The Company will promptly notify each Holder by facsimile of the
effectiveness of each Registration Statement or any post-effective amendment.
The Company will promptly respond to any and all comments received from the SEC
or the staff of the SEC, with a view towards causing each Registration Statement
or any amendment thereto to be declared effective by the SEC as soon as
practicable and shall file an acceleration request as soon as practicable
following the resolution or clearance of all SEC comments. If the SEC or the
staff of the SEC notifies the Company that any such Registration Statement or
any amendment thereto will not be subject to review, the Company shall file an
acceleration request promptly upon the written request of (i) Solimar during the
Solimar Exclusivity Period and (ii) following the Solimar Exclusivity Period,
the Holders of a majority of the Registrable Common Shares covered by such
Registration Statement.

      (d)   At all times after the Company has filed a registration statement
with the SEC pursuant to the requirements of either the Securities Act or the
Exchange Act, the Company shall file or furnish all reports required to be filed
by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder within the time periods established
for such reports by such rules and regulations, and take such further action as
any Holders may reasonably request, all to the extent required to enable such
Holders to be eligible to sell Registrable Common Shares pursuant to Rule 144
(or any similar rule then in effect).

                                       12

      (e)   The Company may require each seller of Registrable Common Shares as
to which any registration is being effected to furnish to the Company any other
information regarding such seller and the distribution of such Registrable
Common Shares as the Company may from time to time reasonably request in
writing.

      (f)   Each seller of Registrable Common Shares agrees by having its
shares treated as Registrable Common Shares hereunder that, upon notice of the
happening of any event as a result of which the Prospectus included in such
Registration Statement, taken together with any Free Writing Prospectuses filed
with respect thereto, contains an untrue statement of a material fact or omits
any material fact necessary to make the statements therein not misleading (a
"Suspension Notice"), such seller will forthwith discontinue disposition of
Registrable Common Shares for a reasonable length of time not to exceed 60 days
until such seller is advised in writing by the Company that the use of the
Prospectus may be resumed and is furnished with a supplemented or amended
Prospectus or Free Writing Prospectus as contemplated by Section 6(c) hereof,
and, if so directed by the Company, such seller will deliver to the Company (at
the Company's expense) all copies, other than permanent file copies then in such
seller's possession, of the Prospectus covering such Registrable Common Shares
current at the time of receipt of such notice and any such Free Writing
Prospectus; provided, however, that all such postponements of sales of
Registrable Common Shares by the Holders shall not exceed 90 days in the
aggregate in any one year. If the Company shall give any notice to suspend the
disposition of Registrable Common Shares pursuant to a Prospectus, the Company
shall extend the period of time during which the Company is required to maintain
the Registration Statement effective pursuant to this Agreement by the number of
days during the period from and including the date of the giving of such notice
to and including the date such seller either is advised by the Company that the
use of the Prospectus may be resumed or receives the copies of the supplemented
or amended Prospectus or a Free Writing Prospectus contemplated by Section 6(c).
In any event, the Company shall not be entitled to deliver more than three
Suspension Notices in any one year.

7.    REGISTRATION EXPENSES.

      (a)   All expenses incident to the Company's performance of or compliance
with this Agreement, including, without limitation, all registration and filing
fees, fees and expenses of compliance with securities or blue sky laws, listing
application fees, printing expenses, transfer agent's and registrar's fees, cost
of distributing Prospectuses in preliminary and final form as well as any
supplements thereto and Free Writing Prospectuses relating thereto, and fees and
expenses of counsel for the Company, of counsel for the underwriter(s), if any
(to the extent such expenses are not paid by the underwriter(s) directly), and
of all independent registered public accountants and other Persons retained by
the Company and all travel and other expenses for "road show" or similar
presentations (all such expenses being herein called "Registration Expenses")
(but not including any underwriting discounts or commissions attributable to the
sale of Registrable Common Shares or fees and expenses of more than one counsel
representing the Holders of Registrable Common Shares), shall be borne by the
Company. In addition, the Company shall pay its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting

                                       13

duties), the expense of any annual audit or quarterly review, the expense of any
liability insurance and the expenses and fees for listing the securities to be
registered on each securities exchange on which they are to be listed.

      (b)   In connection with each registration initiated hereunder (whether a
Demand Registration, a Shelf Registration, a Piggyback Registration, or a
registration relating to a Follow-on or a Qualifying Follow-on), the Company
shall reimburse the Holders covered by such registration for the reasonable fees
and disbursements of one law firm chosen by Solimar or its transferee, in the
case of any registration hereunder during the Solimar Exclusivity Period, or
chosen by the Holders of a majority of the Registrable Common Shares included in
such registration.

      (c)   The obligation of the Company to bear the expenses described in
Section 7(a) and to reimburse the Holders for the expenses described in Section
7(b) shall apply irrespective of whether, once properly demanded, if applicable,
a registration or any related Registration Statement becomes effective, the
registration is withdrawn or suspended, is converted to another form of
registration and irrespective of when any of the foregoing shall occur;
provided, however, that Registration Expenses for any Registration Statement
withdrawn solely at the request of a Holder of Registrable Common Shares (unless
withdrawn following postponement of filing by the Company in accordance with
Section 2(d)) or any supplements or amendments to a Registration Statement or
Prospectus resulting from a misstatement furnished to the Company by a Holder
shall be borne by such Holder.

8.    INDEMNIFICATION.

      (a)   The Company shall indemnify, to the fullest extent permitted by
law, each Holder, its officers, directors and Affiliates and each Person who
controls such Holder (within the meaning of the Securities Act) against all
losses, claims, damages, liabilities and expenses arising out of or based upon
any untrue or alleged untrue statement of material fact contained in any
Registration Statement, Prospectus or preliminary Prospectus or any amendment
thereof or supplement thereto or any Free Writing Prospectus related thereto or
any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading or any
violation or alleged violation by the Company of the Securities Act, the
Exchange Act or applicable blue sky laws, except insofar as the same are made in
reliance and in conformity with information relating to such Holder furnished in
writing to the Company by such Holder expressly for use therein. In connection
with an underwritten offering, the Company shall indemnify such underwriters,
their officers and directors and each Person who controls such underwriters
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities and expenses arising out of or based upon any untrue or alleged
untrue statement of material fact contained in any Registration Statement,
Prospectus or preliminary Prospectus or any amendment thereof or supplement
thereto or any Free Writing prospectus related thereto or any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading or any violation or alleged
violation by the Company of the Securities Act, the Exchange Act or applicable
blue sky laws, except insofar as the

                                       14

same are made in reliance and in conformity with information relating to the
underwriters furnished in writing to the company by the underwriters expressly
for use therein.

      (b)   In connection with any Registration Statement in which a Holder is
participating, each such Holder shall furnish to the Company in writing such
information and certificates as the Company reasonably requests for use in
connection with any such Registration Statement or Prospectus and, shall
indemnify, to the fullest extent permitted by law, the Company, its officers,
directors Affiliates, and each Person who controls the Company (within the
meaning of the Securities Act) against all losses, claims, damages, liabilities
and expenses arising out of or based upon any untrue or alleged untrue statement
of material fact contained in the Registration Statement, Prospectus or
preliminary Prospectus or any amendment thereof or supplement thereto or Free
Writing Prospectus related thereto or any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, but only to the extent that the same are made in
reliance and in conformity with information relating to such Holder furnished in
writing to the Company by such Holder expressly for use therein; provided,
however, that the obligation to indemnify shall be several, not joint and
several, among such Holders and the liability of each such Holder shall be in
proportion to and limited to the net proceeds received by such Holder from the
sale of Registrable Common Shares pursuant to such Registration Statement.

      (c)   Any Person entitled to indemnification hereunder shall (i) give
prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification, provided that the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have under this Section 8 except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses)
by such failure; and provided, further, that the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have to an indemnified party otherwise than under this Section 8 and
(ii) unless in such indemnified party's reasonable judgment a conflict of
interest between such indemnified and indemnifying parties may exist with
respect to such claim, permit such indemnifying party to assume the defense of
such claim with counsel reasonably satisfactory to the indemnified party. If
such defense is assumed, the indemnifying party shall not be subject to any
liability for any settlement made by the indemnified party without its consent
(but such consent will not be unreasonably withheld). An indemnifying party who
is not entitled to, or elects not to, assume the defense of a claim shall not be
obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment of any indemnified party there may be one or more legal or
equitable defenses available to such indemnified party which are in addition to
or may conflict with those available to another indemnified party with respect
to such claim.

      (d)   The indemnification provided for under this Agreement shall remain
in full force and effect regardless of any investigation made by or on behalf of
the indemnified party or any officer, director or controlling Person of such
indemnified party and shall survive the transfer of Common Shares.

      (e)   If the indemnification provided for in or pursuant to this Section
8 is due in accordance with the terms hereof, but is held by a court to be
unavailable or

                                       15

unenforceable in respect of any losses, claims, damages, liabilities or expenses
referred to herein, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified Person as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of such indemnified
party on the other in connection with the statements or omissions which result
in such losses, claims, damages, liabilities or expenses as well as any other
relevant equitable considerations. The relative fault of the indemnifying party
on the one hand and of the indemnified Person on the other shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the indemnifying party or by
the indemnified party, and by such party's relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. In
no event shall the liability of any selling Holder be greater in amount than the
amount of net proceeds received by such Holder upon such sale or the amount for
which such indemnifying party would have been obligated to pay by way of
indemnification if the indemnification provided for under Section 8(a) or 8(b)
hereof had been available under the circumstances.

9.    PARTICIPATION IN UNDERWRITTEN REGISTRATIONS.

      No Person may participate in any registration hereunder which is
underwritten unless such Person (a) agrees to sell such Person's Common Shares
on the basis provided in any underwriting arrangements approved by the Person or
Persons entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

10.   RULE 144.

      The Company covenants that it will file or furnish the reports required to
be filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder within the time periods established
for filing or furnishing such reports by such rules and regulations, and it will
take such further action as any Holder may reasonably request to make available
adequate current public information with respect to the Company meeting the
current public information requirements of Rule 144(c) under the Securities Act,
as such rule may be amended from time to time, to the extent required to enable
such Holder to sell Registrable Common Shares without registration under the
Securities Act within the limitation of the exemptions provided by (i) Rule 144
under the Securities Act, as such rule may be amended from time to time, or (ii)
any similar rule or regulation hereafter adopted by the SEC. Upon the request of
any Holder, the Company will deliver to such Holder a written statement as to
whether it has complied with the requirements of this Section 10.

11.   FOLLOW-ON.

      In order for a public offering of Common Shares to qualify as a Follow-on,
each of the following conditions shall be satisfied:

      (a)   The offering must follow the Qualifying IPO.

                                       16

      (b)   The offering must be underwritten by one or more underwriters on a
      firm commitment basis.

      (c)   In the event Solimar and Los Avellanos and Hazels participate in any
      Follow-on, such participation shall be pro rata until such point as Los
      Avellanos and Hazels shall have realized, from such Follow-on and all
      previous Follow-ons, aggregate gross proceeds of $18,320,000 (it being
      understood and agreed that, regardless of whether Solimar participates in
      one or more Follow-ons, Los Avellanos and Hazels shall not be permitted to
      realize from all Follow-ons aggregate gross proceeds in excess of
      $18,320,000); thereafter, or if Los Avellanos and Hazels do not
      participate in one or more Follow-ons, Solimar shall be permitted to sell
      as many additional Common Shares in a Follow-on or the Qualifying
      Follow-on as it and the underwriter(s) shall agree.

      (d)   The following conditions shall also be satisfied, as applicable.

            (i)     If the Follow-on is to consist solely of secondary shares,
            then any Stockholder may request registration of such shares under
            the Securities Act. Any such request shall not constitute a Demand
            Registration for purposes of this Agreement.

            (ii)    No secondary seller other than the Stockholders may
            participate in any offering intended to constitute a Follow-on.

            (iii)   If the Follow-on is to consist solely of secondary shares,
            then the participating Stockholders may jointly select the managing
            underwriter(s) to administer the offering.

            (iv)    If the Company proposes to register Common Shares under the
            Securities Act (other than a registration statement on Form S-8 or
            on Form F-4 or any similar successor forms thereto) at a time when a
            Qualifying Follow-on has yet to occur, the Company shall give prompt
            written notice to each of Solimar, Los Avellanos and Hazels, each of
            which shall be entitled to participate in such registration, subject
            to the allocation provisions of clause (c) above. Any such
            participation shall not constitute a Piggyback Registration for
            purposes of this Agreement.

            (v)     After the Registration Statement related to the Follow-on
            has become effective, the Company shall use its best efforts to keep
            such Registration Statement effective for a period equal to 180 days
            from the date on which the SEC declares such Registration Statement
            effective (or if such Registration Statement is not effective during
            any period within such 180 days, such 180-day period shall be
            extended by the number of days during such period when such
            Registration Statement is not effective), or such shorter period
            which shall terminate when all of the Registrable Common Shares
            covered by such Registration Statement have been sold pursuant to
            such Registration Statement.

                                       17

12.   LOS AVELLANOS/HAZELS TAG-ALONG RIGHT

      If the Qualifying Follow-on is an offering by Solimar in which Los
Avellanos and Hazels elect not to participate, then, notwithstanding the
commencement of the Solimar Exclusivity Period, Los Avellanos and Hazels shall
each have the right to participate in any underwritten offering initiated
hereunder by Solimar; provided, however, that such right is limited to such
number of Common Shares as produces aggregate gross proceeds to Los Avellanos
and Hazels of $18,320,000 (the "Los Avellanos/Hazels Tag-along Right"). The Los
Avellanos/Hazels Tag-along Right shall be transferable to any Affiliate of Los
Avellanos or Hazels.

13.   MISCELLANEOUS.

      (a)   Notices. All notices, requests, consents and other communications
required or permitted hereunder shall be in writing and shall be hand delivered
or mailed postage prepaid by registered or certified mail or by facsimile
transmission (with immediate telephone confirmation thereafter),

      If to the Company:

            Ultrapetrol (Bahamas) Limited
            Ocean Centre, Montague Foreshore
            East Bay Street
            Nassau, Bahamas
            Attention: Chief Executive Officer
            Facsimile No.: (242) 394-8430

      with a copy to:

            Seward & Kissel LLP
            One Battery Park Plaza
            New York, New York 10004
            Attention: Lawrence Rutkowski, Esq.
            Facsimile No.: (212) 480-8421

      If to Solimar:

            Solimar Holdings Ltd.
            AIG-GE Capital Latin American Infrastructure Fund L.P.
            American International Building
            29 Richmond Road
            Pembroke HM08
            Bermuda
            Attention: Company Secretary
            Facsimile: (441) 292-2276

                                       18

      with copies to:

            EMP Global LLC
            2020 K Street, NW, Suite 400
            Washington, D.C. 20006
            Attention: James F. Martin/Michael P. Kelley
            Facsimile: (202) 293-7163

            Covington & Burling LLP
            1330 Avenue of the Americas
            New York, NY 10019
            Attention: Bruce C. Bennett
            Facsimile: (212) 841-1010

      If to Los Avellanos:

            Inversiones Los Avellanos S.A.
            El Bosque Norte 0440
            11th Floor
            Santiago, Chile
            Attention: Ignacio Larrain
            Facsimile No.: (562) 203-5041

      with a copy to:

            Seward & Kissel LLP
            One Battery Park Plaza
            New York, New York 10004
            Attention: Lawrence Rutkowski, Esq.
            Facsimile No.: (212) 480-8421

or if to another Holder, to the addresses set forth on the counterpart signature
pages of this Agreement signed by such Holder.

If to a transferee Holder, to the address of such Holder set forth in the
transfer documentation provided to the Company or at such other address as such
party each may specify by written notice to the others, and each such notice,
request, consent and other communication shall for all purposes of this
Agreement be treated as being effective or having been given when delivered
personally or upon receipt of facsimile confirmation if transmitted by
facsimile, or, if sent by mail, at the time of its receipt.

      (b)   No Waivers. No failure or delay by any party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

                                       19

      (c)   Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, it being understood that subsequent Holders of the
Registrable Common Shares are intended third party beneficiaries of this
Agreement.

      (d)   Governing Law. The laws of the State of New York shall govern the
enforceability and validity of this Agreement, the construction of its terms and
the interpretation of the rights and duties of the parties.

      (e)   Jurisdiction. Any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby may be brought in any federal
or state court located in the County and State of New York, and each of the
parties hereby consents to the jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection
which it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an
inconvenient forum. Process in any such suit, action or proceeding may be served
on any party anywhere in the world, whether within or without the jurisdiction
of any such court. Without limiting the foregoing, each party agrees that
service of process on such party as provided in Section 10(a) shall be deemed
effective service of process on such party.

      (f)   Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

      (g)   Counterparts; Effectiveness. This Agreement may be executed in any
number of counterparts (including by facsimile) and by different parties hereto
in separate counterparts, with the same effect as if all parties had signed the
same document. All such counterparts shall be deemed an original, shall be
construed together and shall constitute one and the same instrument. This
Agreement shall become effective when each party hereto shall have received
counterparts hereof signed by all of the other parties hereto.

      (h)   Entire Agreement. This Agreement contains the entire agreement
among the parties hereto with respect to the subject matter hereof and
supersedes and replaces all other prior agreements, written or oral, among the
parties hereto with respect to the subject matter hereof.

      (i)   Captions. The headings and other captions in this Agreement are for
convenience and reference only and shall not be used in interpreting, construing
or enforcing any provision of this Agreement.

      (j)   Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction or other authority
to be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated so long as the
economic or legal substance of the transactions

                                       20

contemplated hereby is not affected in any manner materially adverse to any
party. Upon such a determination, the parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest
extent possible.

      (k)   Amendments. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given
without the prior written consent of the Holders of a majority of the
Registrable Common Shares (as constituted on the date hereof); provided,
however, that without a Holder's prior written consent no such amendment,
modification, supplement or waiver shall affect adversely such Holder's rights
hereunder in a discriminatory manner inconsistent with its adverse effects on
rights of other Holders hereunder (other than as reflected by the different
number of shares held by such Holder); provided, further, that the consent or
agreement of the Company shall be required with regard to any termination,
amendment, modification or supplement of, or waivers or consents to departures
from, the terms hereof, which affect the Company's obligations hereunder. This
Agreement cannot be changed, modified, discharged or terminated by oral
agreement.

      (l)   Aggregation of Shares. All Registrable Common Shares held by or
acquired by any Affiliated Persons will be aggregated together for the purpose
of determining the availability of any rights under this Agreement. All
Registrable Common Shares held by Solimar, Affiliates of Solimar and transferees
of such Registrable Common Shares will be aggregated together for the purpose of
determining the availability of rights under this Agreement.

      (m)   Equitable Relief. Without limiting the remedies available, the
parties hereto acknowledge that any failure by the Company to comply with its
obligations under this Agreement will result in material irreparable injury to
the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, any Holder shall have the right to obtain such relief as
may be required to specifically enforce the Company's obligations under this
Agreement.

      (n)   Hazels and Los Avellanos Deemed Acting Together. With respect to
all actions taken or refrained from being taken by either Hazels or Los
Avellanos under this Agreement, the other of such parties shall be deemed also
to have taken, or refrained from taking, such action. For the avoidance of
doubt, for all purposes under this Agreement, Los Avellanos and Hazels shall be
deemed to be acting together.

                            [Signature Page Follows]

                                       21

      IN WITNESS WHEREOF, this Registration Rights Agreement has been duly
executed by each of the parties hereto as of the date first written above.

                                       ULTRAPETROL (BAHAMAS) LIMITED

                                       By: /s/ Felipe Menendez R.
                                           ----------------------
                                       Name: Felipe Menendez R.
                                       Title: President

                                       SOLIMAR HOLDINGS LTD.

                                       By: /s/ James F. Martin
                                           -------------------
                                       Name: James F. Martin
                                       Title: Attorney-in-Fact

                                       INVERSIONES LOS AVELLANOS S.A.

                                       By: /s/ Ricardo Menendez R.
                                           -----------------------
                                       Name: Ricardo Menedez R.
                                       Title: Attorney-in-Fact

                                       HAZELS (BAHAMAS) INVESTMENTS INC.

                                       By: /s/ Ricardo Menendez R.
                                           -----------------------
                                       Name: Ricardo Menendez R.
                                       Title: Attorney-in-Fact

                                       22

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