Document:

Unassociated Document

    
      

    

    Exhibit
      10.8

    
       

       

      SECURITY
        AGREEMENT

       

       

      THIS
        SECURITY AGREEMENT is made on this 19 day of September, 2007 between uVuMobile,
        Inc., a Georgia corporation ("Debtor"), and Ray Jones ("Secured
        Party").

       

      
        
          	
                  1.

                	
                  SECURITY
                    INTEREST.
                    Debtor grants to Secured Party a security interest in the assets
                    of the
                    Debtor up to the first $66,500 including intellectual property,
                    inventory,
                    equipment, appliances, furnishings, and fixtures now or hereafter
                    placed
                    upon the premises known as its corporate headquarters, located
                    at 2160
                    Satellite Boulevard, Suite 130, Duluth, GA 30097 (the "Premises")
                    or used
                    in connection therewith and in which Debtor now has or hereafter
                    acquires
                    any right and the proceeds therefrom. As additional collateral,
                    Debtor
                    assigns to Secured Party a security interest in all of its right,
                    title,
                    and interest to any trademarks, trade names, contract rights,
                    and
                    leasehold interests in which Debtor now has or hereafter acquires.
                    (All of
                    the foregoing assets of the Debtor shall hereinafter be collectively
                    referenced to as the “Collateral”.) This security interest shall secure
                    the payment and performance of Debtor's promissory note of even
                    date
                    herewith in the principal amount of Fifty Thousand ($50,000)
                    Dollars (the
                    “Note”) and the payment and performance of all other liabilities and
                    obligations of Debtor to Secured Party of every kind and description,
                    direct or indirect, absolute or contingent, due or to become
                    due now
                    existing or hereafter
                    arising.

                

        

        
          	
                   

                	
                   

                

        

        
          	
                  2.

                	
                  COVENANTS.
                    Debtor hereby warrants and
                    covenants: (a) the Collateral will be kept at the Premises and
                    the
                    Collateral will not be removed from the Premises other than in
                    the
                    ordinary course of business; (b) the Debtor's place of business
                    is located
                    at the Premises and Debtor will immediately notify Secured Party
                    in
                    writing of any change in or discontinuance of Debtor's place
                    of business;
                    (c) the parties intend that the Collateral is and will at all
                    times remain
                    personal property despite the fact and irrespective of the manner
                    in which
                    it is attached to realty; (d) the Debtor will not sell, dispose,
                    or
                    otherwise transfer the Collateral or any interest therein without
                    the
                    prior written consent of Secured Party, and the Debtor shall
                    keep the
                    Collateral free from unpaid charges (including rent), taxes,
                    and liens;
                    (e) the Debtor shall execute alone or with Secured Party any
                    financing
                    statement or other document or procure any document, and pay
                    the cost of
                    filing the same in all public offices wherever filing is deemed
                    by Secured
                    Party to be necessary; (f) Debtor shall maintain insurance at
                    all times
                    with respect to all Collateral against risks of fire, theft,
                    and other
                    such risks and in such amounts as Secured Party may reasonably
                    require and
                    the policies shall be payable to both the Secured Party and the
                    Debtor as
                    their interests appear and shall provide for ten (10) days written
                    notice
                    of cancellation to Secured Party; and (g) the Debtor shall make
                    all
                    repairs, replacements, additions, and improvements necessary
                    to maintain
                    any equipment in good working order and condition. At its option,
                    Secured
                    Party may discharge taxes, liens, or other encumbrances at any
                    time levied
                    or placed on the collateral, may pay rent or insurance due on
                    the
                    Collateral and may pay for the maintenance and preservation of
                    the
                    Collateral. Debtor agrees to reimburse Secured Party on demand
                    for any
                    payment made, or any expense incurred by Secured Party pursuant
                    to the
                    foregoing authorization.

                

        

        
          	
                   

                	
                   

                

        

        This
          security interest will be released
          at either the earlier of payment of principle and interest on the Note,
          or upon
          conversion of the Note into the Qualified Strategic Financing described
          in the
          Note.

        
          	
                   

                	
                   

                

        

        
          	
                  3.

                	
                  DEFAULT.
                    The Debtor shall be in default
                    under this Agreement upon the happening of any of the following:
                    (a) any
                    misrepresentation in connection with this Agreement on the part
                    of the
                    Debtor; (b) any noncompliance with or nonperformance of the Debtor's
                    obligations under the Note or this Agreement; or (c) if Debtor
                    is involved
                    in any financial difficulty as evidenced by (i) an assignment
                    for the
                    benefit of creditors, or (ii) an attachment or receivership of
                    assets not
                    dissolved within thirty (30) days, or (iii) the institution of
                    bankruptcy
                    proceedings, whether voluntary or involuntary, which is not dismissed
                    within thirty (30) days from the date on which it is filed. Upon
                    default
                    and at any time thereafter, Secured Party may declare all obligations
                    secured hereby immediately due and payable and shall have the
                    remedies of
                    a secured party under the Uniform Commercial Code. Secured Party
                    may
                    require the Debtor to make the Collateral available to Secured
                    Party at a
                    place which is mutually convenient. No waiver by Secured Party
                    of any
                    default shall operate as a waiver of any other default or of
                    the same
                    default on a future occasion. This Agreement shall inure to the
                    benefit up
                    and bind the heirs, executors, administrators, successors, and
                    assigns of
                    the parties. This Agreement shall have the effect of an instrument
                    under
                    seal.

                

        

         

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                Secured
                  Party:

              	 	
                Debtor:

              
	 	 	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/
                  Ray Jones

              	 	
                By:

              	
                /s/
                  William J. Loughman

              
	 	 	 	
                William
                  J. Loughman

              
	 	 	 
	
                Its:

              	 	 	
                Its:

              	
                Chief
                  Financial Officer

              
	 	 	 
	 	 	 
	
                Date:

              	
                9/19/07

              	 	
                Date:

              	
                9/19/07Exhibit
      4.1

     

    SECURED
      TERM NOTE

     

    FOR
      VALUE
      RECEIVED, each of TRUE NORTH ENERGY CORPORATION, a Nevada corporation
      (“TNEC”),
      and
      ICF ENERGY CORPORATION, a Texas corporation (“ICF”,
      and
      together with TNEC, each a “Company”
and
      collectively the “Companies”),
      hereby jointly and severally, promises to pay to Valens Offshore SPV II, Corp.
      c/o Valens Capital Management, LLC, 335 Madison Avenue, 10th
      Floor,
      New York, New York 10017, Fax: 212-581-5037 (the “Holder”)
      or its
      registered assigns or successors in interest, the sum of One Million Eight
      Hundred Seventy-Four Thousand Five Hundred Ninety-Six Dollars ($1,874,596),
      together with any accrued and unpaid interest hereon, on September 18, 2010
      (the
“Maturity
      Date”)
      if not
      indefeasibly sooner paid in full.

     

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in that certain Securities Purchase Agreement (as amended, modified and/or
      supplemented from time to time, the “Purchase
      Agreement”)
      dated
      as of the date hereof among the Companies, the Holder, any other Purchasers
      thereunder and Valens U.S. SPV I, LLC, as agent for the Purchasers.

     

    The
      following terms shall apply to this Secured Term Note (this “Note”
      ):

     

    ARTICLE
      I

     

    CONTRACT
      RATE AND AMORTIZATION

     

    1.1 Contract
      Rate.
      Subject
      to Sections 3.2 and 4.10, interest payable on the outstanding principal amount
      of this Note (the “Principal
      Amount”)
      shall
      accrue at a rate per annum equal to thirteen percent (13.0%) (the “Contract
      Rate”).
      Interest shall be (i) calculated on the basis of a 360 day year, and (ii)
      payable monthly, in arrears, commencing on October 1, 2007, on the first
      business day of each consecutive calendar month thereafter through and including
      the Maturity Date, and on the Maturity Date, whether by acceleration or
      otherwise.

     

    1.2 Contract
      Rate Payments.
      The
      Contract Rate shall be calculated on the last business day of each calendar
      month hereafter until the Maturity Date and shall be subject to adjustment
      as
      set forth herein.

     

    1.3 Principal
      Payments.
      Amortizing payments of the Principal Amount shall be jointly and severally
      made
      by the Companies on October 1, 2007 and on the first business day of each
      succeeding month thereafter through and including the Maturity Date (each,
      an
“Amortization
      Date”).
      Commencing on the first Amortization Date, the Companies shall, jointly and
      severally, make monthly payments to the Holder on each Amortization Date in
      an
      amount equal to the applicable Amortization Amount (which shall include any
      accrued and unpaid interest on such portion of the Principal Amount) plus any
      and all other unpaid amounts which are then owing under this Note, the Purchase
      Agreement and/or any other Related Agreement (collectively, the “Monthly
      Amount”).
      Any
      outstanding Principal Amount together with any accrued and unpaid interest
      and
      any and all other unpaid amounts which are then owing by any Company to the
      Holder under this Note, the Purchase Agreement and/or any other Related
      Agreement shall be due and payable on the Maturity Date. For purposes of this
      Section, the term “Amortization
      Amount”
shall
      mean (a) for each Amortization Date during the period commencing on the date
      hereof and ending on the one-year anniversary of the date hereof (the
“Anniversary
      Date”),
      an
      amount equal to the greater of (i) $100,000 and (ii) sixty percent (60%) of
      the
      Net Revenue (the “Net
      Revenue Amount”)
      relating to all oil and gas properties of ICF (collectively, the “Oil
      and Gas Properties”)
      for
      the calendar month immediately preceding the applicable Amortization Date and
      (b) for each Amortization Date thereafter, an amount equal to the greater of
      (i)
      $100,000 and (ii) eighty percent (80%) of the Net Revenue Amount relating to
      the
      Oil and Gas Properties for the calendar month immediately preceding the
      applicable Amortization Date, provided,
      however,
      such
      percentage shall increase to one hundred percent (100%) upon the occurrence
      and
      during the continuance of an Event of Default. The term “Net
      Revenue”
shall
      mean the gross proceeds paid to ICF in respect of oil, gas and/or other
      hydrocarbon production in which it has an interest whether or not such proceeds
      are remitted to the lockbox account and/or any other blocked account established
      by any Company in connection with the transactions contemplated hereby net
      of,
      in each case, with respect to the period for which such Net Revenue relates,
      the
      reasonable ordinary day to day expenses associated with ICF’s operation of the
      leases, wells and equipment, including pumping fuel, lube, water, chemicals,
      materials, wireline, labor, maintenance, routine production equipment
      replacement, repairs, routine workover costs to maintain production from an
      existing completed well, royalty, overriding royalty, insurance, third-party
      engineering, salt water disposal, processing fees, environmental and disposal,
      transportation, government regulations, supplies, severance tax, outside
      operating expenditures and ad valorem tax, to the extent, and only the extent,
      properly allocated to the operation of the Oil and Gas Properties and chargeable
      to ICF or TNEC under the accounting procedures contained in applicable operating
      agreements, excluding, however, any capital expenditures, in each case using
      accounting practices and procedures ordinary and customary in the oil and gas
      industry, all of which shall be subject to the Holder’s approval which shall be
      provided in the exercise of the Holder’s reasonable discretion based on such
      supporting documentation from the Companies as the Holder shall reasonably
      request. Once the Amortization Amount has been paid on each Amortization Date,
      the balance of the Net Revenue Amount relating to the Oil and Gas Properties
      for
      the calendar month immediately preceding the applicable Amortization Date shall
      be available to ICF and/or TNEC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

     

    OPTIONAL
      PREPAYMENT

     

    2.1 The
      Companies may, jointly and severally, prepay this Note at any time, in whole
      or
      in part, without any prepayment penalty. The Note may be prepaid in full by
      paying to the Holder a sum of money equal to one hundred percent (100%) of
      the
      unpaid Principal Amount of the Note, together with accrued but unpaid interest
      thereon and any and all other sums due, accrued or payable to the Holder arising
      under the Note, the Purchase Agreement or any other Related Agreement. This
      Note
      may be prepaid in part by paying to the Holder a sum of money equal to the
      portion of the Note to be prepaid, which prepayment shall be applied to the
      unpaid Principal Amount of the Note, accrued but unpaid interest thereon or
      to
      other sums due to Holder arising under the Note, the Purchase Agreement or
      any
      other Related Agreement, as directed by Holder. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

     

    EVENTS
      OF DEFAULT

     

    3.1 Events
      of Default.
      The
      occurrence of any of the following events set forth in this Section 3.1 shall
      constitute an event of default (“Event
      of Default”)
      hereunder:

     

    (a) Failure
      to Pay.
      Any
      Company fails to pay when due any installment of principal, interest or other
      fees hereon in accordance herewith, or any Company fails to pay any of the
      other
      Obligations (under and as defined in any Security Document) when due, and,
      in
      any such case, such failure shall continue for a period of three (3) days
      following the date upon which any such payment was due.

     

    (b) Breach
      of Covenant.
      Any
      Company or any of its Subsidiaries breaches any covenant or any other term
      or
      condition of this Note in any material respect and such breach, if subject
      to
      cure, continues for a period of fifteen (15) days after the occurrence
      thereof.

     

    (c) Breach
      of Representations and Warranties.
      Any
      representation, warranty or statement made or furnished by any Company or any
      of
      its Subsidiaries in this Note, the Purchase Agreement or any other Related
      Agreement shall at any time be false or misleading in any material respect
      on
      the date as of which made or deemed made.

     

    (d) Default
      Under Other Agreements.
      The
      occurrence of any default (or similar term) in the observance or performance
      of
      any other agreement or condition relating to any indebtedness or contingent
      obligation, of any Company or any of its Subsidiaries (including, without
      limitation, the indebtedness evidenced by the Subordinated Debt Documentation)
      beyond the period of grace (if any), the effect of which default is to cause,
      or
      permit the holder or holders of such indebtedness or beneficiary or
      beneficiaries of such contingent obligation to cause, such indebtedness to
      become due prior to its stated maturity or such contingent obligation to become
      payable;

     

    (e) Material
      Adverse Effect.
      Any
      change or the occurrence of any event which could reasonably be expected to
      have
      a Material Adverse Effect;

     

    (f) Bankruptcy.
      Any
      Company or any of its Subsidiaries shall (i) apply for, consent to or
      suffer to exist the appointment of, or the taking of possession by, a receiver,
      custodian, trustee or liquidator of itself or of all or a substantial part
      of
      its property, (ii) make a general assignment for the benefit of creditors,
      (iii) commence a voluntary case under the federal bankruptcy laws (as now or
      hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file
      a
      petition seeking to take advantage of any other law providing for the relief
      of
      debtors, (vi) acquiesce to, without challenge within ten (10) days of the filing
      thereof, or failure to have dismissed, within thirty (30) days, any petition
      filed against it in any involuntary case under such bankruptcy laws, or (vii)
      take any action for the purpose of effecting any of the foregoing;

     

    (g) Judgments.
      Attachments or levies in excess of $75,000 in the aggregate are made upon any
      Company’s or any of its Subsidiaries’ assets or a judgment is rendered against
      any Company’s or any Company’s Subsidiary’s property involving a liability of
      more than $75,000 which shall not have been vacated, discharged, stayed or
      bonded within thirty (30) days from the entry thereof;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (h) Insolvency.
      Any
      Company or any of its Subsidiaries shall admit in writing its inability, or
      be
      generally unable, to pay its debts as they become due or cease operations of
      its
      present business;

     

    (i) Change
      of Control.
      A
      Change of Control (as defined below) shall occur with respect to any Company,
      unless Holder shall have expressly consented to such Change of Control in
      writing. A “Change
      of Control”
shall
      mean any event or circumstance as a result of which (i) any “Person”
or
      “group”
(as
      such terms are defined in Sections 13(d) and 14(d) of the Exchange Act, as
      in
      effect on the date hereof), other than the Holder, is or becomes the
“beneficial
      owner”
(as
      defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or
      indirectly, of 35% or more on a fully diluted basis of the then outstanding
      voting equity interest of any Company (other than a “Person”
or
      “group”
that
      beneficially owns 35% or more of such outstanding voting equity interests of
      such Company on the date hereof), (ii) the Board of Directors of any Company
      shall cease to consist of a majority of such Company’s board of directors on the
      date hereof (or directors appointed by a majority of the board of directors
      in
      effect immediately prior to such appointment) or (iii) any Company or any of
      its
      Subsidiaries merges or consolidates with, or sells all or substantially all
      of
      its assets to, any other person or entity;

     

    (j) Indictment;
      Proceedings.
      The
      indictment or threatened indictment of any Company or any of its Subsidiaries
      or
      any executive officer of any Company or any of its Subsidiaries under any
      criminal statute, or commencement or threatened commencement of criminal or
      civil proceeding against any Company, any Subsidiary of any Company or any
      executive officer of any Company or any of its Subsidiaries, pursuant to which
      statute or proceeding penalties or remedies sought or available include
      forfeiture of any of the property of any Company or any of its Subsidiaries;
      or

     

    (k) The
      Purchase Agreement and Related Agreements.
      (i) An
      Event of Default shall occur under and as defined in the Purchase Agreement
      or
      any other Related Agreement, (ii) any Company or any of its Subsidiary shall
      breach any term or provision of the Purchase Agreement or any other Related
      Agreement in any material respect and such breach, if capable of cure, continues
      unremedied for a period of fifteen (15) days after the occurrence thereof,
      (iii)
      any Company or any of its Subsidiary attempts to terminate, challenges the
      validity of, or its liability under, the Purchase Agreement or any Related
      Agreement, (iv) any proceeding shall be brought by any Person other than the
      Holder to challenge the validity, binding effect of the Purchase Agreement
      or
      any Related Agreement or (v) the Purchase Agreement or any Related Agreement
      ceases to be a valid, binding and enforceable obligation of any Company or
      any
      of its Subsidiary (to the extent such persons or entities are a party
      thereto).

     

    3.2 Default
      Interest.
      Following the occurrence and during the continuance of an Event of Default,
      the
      Companies shall, jointly and severally, pay additional interest on the
      outstanding principal balance of this Note in an amount equal to two percent
      (2%) per month, and all outstanding obligations under this Note, the Purchase
      Agreement and each other Related Agreement, including unpaid interest, shall
      continue to accrue interest at such additional interest rate from the date
      of
      such Event of Default until the date such Event of Default is cured or
      waived.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.3 Default
      Payment.
      Following the occurrence and during the continuance of an Event of Default,
      the
      Holder, at its option, may demand repayment in full of all obligations and
      liabilities owing by each Company to the Holder under this Note, the Purchase
      Agreement and/or any other Related Agreement and/or may elect, in addition
      to
      all rights and remedies of the Holder under the Purchase Agreement and the
      other
      Related Agreements and all obligations and liabilities of each Company under
      the
      Purchase Agreement and the other Related Agreements, to require the Companies,
      jointly and severally, to make a Default Payment (“Default
      Payment”).
      The
      Default Payment shall be one hundred twenty-five percent (125%) of the
      outstanding principal amount of the Note, plus accrued but unpaid interest,
      all
      other fees then remaining unpaid, and all other amounts payable hereunder.
      The
      Default Payment shall be applied first to any fees due and payable pro rata,
      based on outstanding Principal Amounts, to the Holder and the other Purchasers
      pursuant to the Notes, the Purchase Agreement, and/or the other Related
      Agreements, then to accrued and unpaid interest due on this Note and then to
      the
      outstanding principal balance of the Notes. The Default Payment shall be due
      and
      payable immediately on the date that the Holder has demanded payment of the
      Default Payment pursuant to this Section 3.3.

     

    ARTICLE
      IV

     

    MISCELLANEOUS

     

    4.1 Issuance
      of New Note.
      Upon
      any partial redemption of this Note, a new Note containing the same date and
      provisions of this Note shall, at the request of the Holder, be issued by the
      Companies to the Holder for the principal balance of this Note and interest
      which shall not have been paid as of such date. Subject to the provisions of
      Article III of this Note, the Companies shall not pay any costs, fees or any
      other consideration to the Holder for the production and issuance of a new
      Note.

     

    4.2 Cumulative
      Remedies.
      The
      remedies under this Note shall be cumulative.

     

    4.3 Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    4.4 Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effectively given: (a) upon personal delivery to the party notified,
      (b)
      when sent by confirmed telex or facsimile if sent during normal business hours
      of the recipient, if not, then on the next business day, (c) five days after
      having been sent by registered or certified mail, return receipt requested,
      postage prepaid, or (d) one day after deposit with a nationally recognized
      overnight courier, specifying next day delivery, with written verification
      of
      receipt. All communications shall be sent to the Companies at the address
      provided for such Company in the Purchase Agreement executed in connection
      herewith, and to the Holder at the address provided in the Purchase Agreement
      for the Holder, with a copy to Valens Capital Management, LLC, Attn: Portfolio
      Services, 335 Madison Avenue, 10th
      Floor,
      New York, New York 10017, facsimile number (212) 581-5037, or at such other
      address as any Company or the Holder may designate by ten days advance written
      notice to the other parties hereto.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    4.5 Amendment
      Provision.
      The
      term “Note” and all references thereto, as used throughout this instrument,
      shall mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as such successor instrument may be amended or supplemented.

     

    4.6 Assignability.
      This
      Note shall be jointly and severally binding upon the Companies and their
      respective successors and assigns, and shall inure to the benefit of the Holder
      and its successors and assigns, and may be assigned by the Holder in accordance
      with the requirements of the Purchase Agreement. No Company may assign any
      of
      its obligations under this Note without the prior written consent of the Holder,
      any such purported assignment without such consent being null and
      void.

     

    4.7 Cost
      of Collection.
      In case
      of any Event of Default under this Note, the Companies shall, jointly and
      severally, pay to the Holder the Holder’s reasonable costs of collection,
      including reasonable attorneys’ fees.

     

    4.8 Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a) THIS
      NOTE
      SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAW.

     

    (b) EACH
      COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
      TO
      HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN SUCH COMPANY, ON THE ONE
      HAND,
      AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER
      RELATED AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE
      OR
      ANY OF THE RELATED AGREEMENTS; PROVIDED,
      THAT
      EACH COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
      HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK;
      AND FURTHER PROVIDED,
      THAT
      NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
      HOLDER. EACH COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
      JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH COMPANY
      HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL
      JURISDICTION, IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      EACH
      COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
      PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
      SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL
      ADDRESSED TO SUCH COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE AGREEMENT
      AND
      THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH
      COMPANY’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S.
      MAILS, PROPER POSTAGE PREPAID.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c) EACH
      COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH COMPANY HERETO WAIVES ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER AND/OR SUCH
      COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, ANY OTHER
      RELATED AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

     

    4.9 Severability.
      In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Note.

     

    4.10 Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum rate permitted by such law, any payments in excess
      of such maximum rate shall be credited against amounts owed by the Companies
      to
      the Holder and thus refunded to the Companies.

     

    4.11 Security
      Interest and Mortgages.
      The
      Holder has been granted a security interest (a) in certain assets of the
      Companies as more fully described in the Security Documents, (b) in the equity
      interests of TNEC in ICF pursuant to the Stock Pledge Agreement and (c) certain
      oil and gas properties pursuant to one or more mortgages dated as of the date
      hereof.

     

    4.12 Construction;
      Counterparts.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the other. This
      Note may be executed in one or more counterparts, each of which shall be deemed
      an original and all of which together shall be deemed to constitute one
      agreement. It is understood and agreed that if facsimile copies of this Note
      bearing facsimile signatures are exchanged between the parties hereto, such
      copies shall in all respects have the same weight, force and legal effect and
      shall be fully as valid, binding, and enforceable as if such signed facsimile
      copies were original documents bearing original signature.

     

    
      
        
        

      

      
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    4.13 Registered
      Obligation.
      This
      Note is intended to be a registered obligation within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i) and the Companies (or their agent) shall
      register this Note (and thereafter shall maintain such registration) as to
      both
      principal and any stated interest. Notwithstanding any document, instrument
      or
      agreement relating to this Note to the contrary, transfer of this Note (or
      the
      right to any payments of principal or stated interest thereunder) may only
      be
      effected by (a) surrender of this Note and either the reissuance by the
      Companies of this Note to the new holder or the issuance by the Companies of
      a
      new instrument to the new holder, or (b) transfer through a book entry system
      maintained by the Companies (or their agent), within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i)(B).

     

    4.14 Right
      to Sue.
      The
      Companies are each personally obligated and fully liable for the amounts due
      under this Note. The Holder has the right to sue the Companies on this Note
      and
      obtain a personal judgment against the Companies for the satisfaction of the
      amount due under this Note, either before or after judicial foreclosure of
      any
      Deed of Trust which is security for this Note under, among other things, A.S.
      Sections 09.45.170 - 09.45.220.

     

    [Signatures
      Follow This Page]

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the Companies have caused this Secured Term Note to be signed
      in their respective names effective as of this 18th day of September
      2007.

    
      	 	 	 
	 	TRUE
              NORTH
              ENERGY CORPORATION
	 
 	 
 	 
 
	
            	By:  	/s/ John
              I.
              Folnovic
	 	
              
Name:
              John I. Folnovic
	 	Title: President and CEO

    

     

    
      	 	 	 
	 	ICF
              ENERGY
              CORPORATION
	 
 	 
 	 
 
	
            	By:  	/s/ John
              I.
              Folnovic
	 	
              
Name: John
              I. Folnovic
	 	Title: President
              and CEO
	 	 
	WITNESS:	 
	
               

              
                /s/
                  John Metzger

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