Southern Cross Group Management, L.P.

Allegations: COPERNICO PURPORTED TO ASSERT CLAIMS DERIVATIVELY ON BEHALF OF ULTRAPETROL FOR BREACH OF FIDUCIARY DUTY, AIDING AND ABETTING BREACH OF FIDUCIARY DUTY, AND CONSPIRACY TO COMMIT BREACH OF FIDUCIARY DUTY, EACH ARISING OUT OF A RESTRUCTURING SUPPORT AGREEMENT ENTERED INTO BY (AMONG OTHER PARTIES) ULTRAPETROL, SPARROW CAPITAL, AND SOUTHERN CROSS LATIN AMERICA PRIVATE EQUITY FUND III, L.P. AND SOUTHERN CROSS LATIN AMERICA PRIVATE EQUITY FUND IV, L.P. ("THE FUNDS") AS OF NOVEMBER 18, 2016 (THE "RESTRUCTURING SUPPORT AGREEMENT"), AN INVESTMENT AGREEMENT ENTERED INTO BY (AMONG OTHER PARTIES) ULTRAPETROL, SPARROW RIVER, SPARROW OFFSHORE, AND THE FUNDS AS OF NOVEMBER 23, 2016 (THE "INVESTMENT AGREEMENT"), AND CERTAIN OTHER EVENTS AND AGREEMENTS RELATING TO ULTRAPETROL. COPERNICO FURTHER ASSERTED A CLAIM FOR BREACH OF FIDUCIARY DUTY ON ITS OWN BEHALF ARISING OUT OF THE RESTRUCTURING AGREEMENT, THE INVESTMENT AGREEMENT, AND CERTAIN OTHER EVENTS AND AGREEMENTS RELATING TO ULTRAPETROL. COPERNICO FURTHER ASSERTED A CLAIM UNDER SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934, 15 U.S.C. § 78J (B), AND RULE 10B 5 PROMULGATED THEREUNDER, AND A CLAIM UNDER SECTION 18(A) OF THE SECURITIES EXCHANGE ACT OF 1934, 15 U.S.C. § 78R, WITH BOTH SUCH CLAIMS (TOGETHER, THE "SECURITIES CLAIMS") ARISING OUT OF COPERNICO'S PURCHASES OF ULTRAPETROL STOCK, DURING OR AFTER JUNE 2016, FOLLOWING ALLEGED MISSTATEMENTS OR OMISSIONS CONCERNING THE VALUE OF ULTRAPETROL'S ASSETS IN CERTAIN OF ULTRAPETROL'S FILINGS WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION. COPERNICO NAMED SEBASTIAN VILLA AND RAUL SOTOMAYOR, DIRECTORS OF ULTRAPETROL (AND THE OTHER NAMED OFFICERS AND DIRECTORS) AS DEFENDANTS WITH RESPECT TO ITS PURPORTED DERIVATIVE CLAIMS FOR BREACH OF FIDUCIARY DUTY AND CONSPIRACY TO COMMIT BREACH OF FIDUCIARY DUTY, AND WITH RESPECT TO ITS SECURITIES CLAIMS. COPERNICO NAMED THE FUNDS AS DEFENDANTS SOLELY WITH RESPECT TO ITS PURPORTED DERIVATIVE CLAIM FOR AIDING AND ABETTING BREACH OF FIDUCIARY DUTY. COPERNICO SOUGHT INJUNCTIVE RELIEF AND AN AWARD OF MONEY DAMAGES IN AN AMOUNT TO BE DETERMINED AT TRIAL PLUS ITS COSTS AND ATTORNEYS' FEES. SEE SECTION 14. Status: Final Summary: ON OR ABOUT MARCH 14, 2017, THE PARTIES ENTERED INTO A SETTLEMENT AGREEMENT IN CONNECTION WITH THIS ACTION PURSUANT TO WHICH SPARROW CAPITAL INVESTMENTS LTD. PAID $200,000 TO THE PLAINTIFF. ON APRIL 12, 2017, THE COURT ENTERED A STIPULATION AND ORDER OF VOLUNTARY DISMISSAL WITH PREJUDICE. THE COMPLAINT AND ALL CLAIMS CONTAINED IN THE COMPLAINT WERE DISMISSED WITH PREJUDICE. IN FURTHERANCE OF THE SETTLEMENT AGREEMENT, COPERNICO ALSO ENTERED INTO A RELEASE DATED APRIL 27, 2017. ACCORDINGLY, THIS MATTER IS NO LONGER OUTSTANDING AND THERE ARE NO FURTHER PROCEEDINGS.

Allegations: THE CHILEAN SVS HAD FILED ADMINISTRATIVE CHARGES, AND ON MARCH 9, 2012, THE SVS IMPOSED FINES, AGAINST MEMBERS OF LA POLAR'S FORMER MANAGEMENT; LA POLAR'S FORMER EXTERNAL AUDITORS, PRICEWATERHOUSECOOPERS; AND ALL INDIVIDUALS WHO SAT ON LA POLAR'S BOARD BETWEEN 2007 ­- 2011, INCLUDING RAÚL SOTOMAYOR AND NORBERTO MORITA. WHILE THE SVS MADE CLEAR THAT NO MEMBER OF THE BOARD (OTHER THAN FORMER LA POLAR MANAGEMENT) HAD ANY KNOWLEDGE OR INVOLVEMENT IN THE ALLEGED WRONGDOINGS, IT BASED ITS DECISION TO FINE ALL 10 NON­MANAGEMENT BOARD MEMBERS ON AN ALLEGED FAILURE TO EXERCISE A DUTY OF CARE. THE SVS MADE A FINDING THAT MR. SOTOMAYOR DID NOT COMPLY WITH THE DUTY OF CARE THAT ARTICLES 39 AND 41 OF THE CHILEAN CORPORATION LAW IMPOSE ON DIRECTORS OF STOCK CORPORATIONS, AND DID NOT COMPLY WITH THE DUTIES IMPOSED BY ARTICLE 50 BIS OF THE CHILEAN CORPORATIONS LAW ON THE MEMBERS OF THE DIRECTORS COMMITTEE. THE SVS MADE A FINDING THAT MR. MORITA DID NOT COMPLY WITH THE DUTY OF CARE THAT ARTICLES 39 AND 41 OF THE CHILEAN CORPORATION LAW IMPOSE ON DIRECTORS OF STOCK CORPORATIONS. Status: Final Sanction Detail: THE SVS IMPOSED A FINE OF 2,000 UF (APPROXIMATELY $73,000) ON MR. SOTOMAYOR AND A FINE OF 1,500 UF (APPROXIMATELY $55,000) ON MR. MORITA. IN ORDER TO FILE THE APPEAL DESCRIBED IN PART 13 BELOW, MR. SOTOMAYOR AND MR. MORITA WERE REQUIRED TO PAY 25% OF THE RESPECTIVE FINES IMPOSED AGAINST THEM, WHICH THEY DID ON MARCH 27, 2012. Summary: ON MARCH 9, 2012, THE CHILEAN SVS IMPOSED FINES AGAINST RAÚL SOTOMAYOR AND NORBERTO MORITA AS DESCRIBED IN RESPONSE TO QUESTION 12. ON MARCH 27, 2012, MR. SOTOMAYOR AND MR. MORITA EACH FILED A REVIEW MOTION OF THE SVS DECISION TO THE CIVIL TRIBUNALS OF SANTIAGO, REPUBLIC OF CHILE. WITH RESPECT TO MR. SOTOMAYOR, THE CIVIL TRIBUNALS ISSUED ITS FINAL AWARD ON JUNE 12, 2014, CONFIRMING THE DECISION OF THE SVS. MR. SOTOMAYOR FILED AN APPEAL MOTION AGAINST THE ABOVE-MENTIONED AWARD, ON JULY 27, 2014. THE APPEAL MOTION WAS REJECTED ON MAY 25, 2015 BY THE COURT OF APPEALS OF SANTIAGO. ACCORDINGLY, MR. SOTOMAYOR FILED A NULLITY MOTION BEFORE THE SUPREME COURT OF CHILE. IN SEPTEMBER 2015, MR. SOTOMAYOR ABANDONED THE NULLITY MOTION AND PAID THE REMAINING 75% OF THE FINE IMPOSED AGAINST HIM. FINAL DETERMINATION OF ANY INTEREST DUE IN RESPECT OF THE FINE BY THE CIVIL TRIBUNALS IS PENDING. THE AWARD OF THE CIVIL TRIBUNALS IS FINAL AND THERE ARE NO FURTHER PROCEEDINGS. WITH RESPECT TO MR. MORITA, THE CIVIL TRIBUNALS ISSUED ITS FINAL AWARD ON SEPTEMBER 5, 2014, CONFIRMING THE DECISION OF THE SVS. MR. MORITA FILED AN APPEAL MOTION AGAINST THE ABOVE-MENTIONED AWARD, ON SEPTEMBER 26, 2014. THE APPEAL MOTION WAS REJECTED ON APRIL 17, 2015 BY THE COURT OF APPEALS OF SANTIAGO. ACCORDINGLY, ON MAY 6, 2015, MR. NORITA FILED A NULLITY MOTION BEFORE THE SUPREME COURT OF CHILE. IN SEPTEMBER 2015, MR. MORITA ABANDONED THE NULLITY MOTION AND PAID THE REMAINING 75% OF THE FINE IMPOSED AGAINST HIM. IN 2021 THE GENERAL TREASURY OF THE REPUBLIC MADE AN INITIAL DETERMINATION OF THE INTERESTS DUE IN RESPECT OF THE FINE. MR MORITA´S DEFENSE HAS CHALLENGED THIS DETERMINATION, ARGUING THAT THE STATUTE OF LIMITATION HAS ALREADY ELAPSED, AMONG OTHER ALLEGATIONS. A FINAL DECISION ABOUT THIS CHALLENGE IS STILL PENDING. THE AWARD OF THE CIVILTRIBUNALS IS FINAL AND THERE ARE NO FURTHER PROCEEDINGS.