Document:

Exhibit
      4.6

     

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
      SAID
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO ICF ENERGY CORPORATION THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    Right
      to
      Purchase Shares of Common Stock of

    ICF
      ENERGY CORPORATION

    (subject
      to adjustment as provided herein)

     

    COMMON
      STOCK PURCHASE WARRANT

     

    
      
        	
                No.
                  _________________

              	
                Issue
                  Date: September 18, 2007

              

      

       

    

    ICF
      ENERGY CORPORATION, a corporation organized under the laws of the State of
      Texas
      (the “Company”),
      hereby certifies that, for value received, VALENS U.S. SPV I, LLC,
      or
      assigns (the “Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company
      (as
      defined herein) from and after the Issue Date of this Warrant, up to the
      Specified Number of Shares (as defined below) at the Exercise Price per share
      (as defined below). The number and character of such shares of Common Stock
      and
      the applicable Exercise Price per share are subject to adjustment as provided
      herein.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

     

    1. The
      term
“Common
      Stock”
      includes (i) the Company’s Common Stock, par value $0.01 per share; and (ii) any
      other securities into which or for which any of the securities described in
      the
      preceding clause (i) may be converted or exchanged pursuant to a plan of
      recapitalization, reorganization, merger, sale of assets or
      otherwise.

     

    2. The
      term
“Company”
shall
      include ICF ENERGY CORPORATION and any person or entity which shall succeed,
      or
      assume the obligations of, ICF ENERGY CORPORATION hereunder.

     

    3. The
      “Exercise
      Price”
      applicable under this Warrant shall be $0.01 per share.

     

    4. The
      term
“Other
      Securities”
refers
      to any stock (other than Common Stock) and other securities of the Company
      or
      any other person (corporate or otherwise) which the holder of the Warrant at
      any
      time shall be entitled to receive, or shall have received, on the exercise
      of
      the Warrant, in lieu of or in addition to Common Stock, or which at any time
      shall be issuable or shall have been issued in exchange for or in replacement
      of
      Common Stock or Other Securities pursuant to Section 4 or
      otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. The
      term
“Purchase
      Agreement”
means
      the Securities Purchase Agreement dated as of the date hereof among the Holder,
      all other Purchasers as defined thereunder, Holder, as agent for such
      Purchasers, True North Energy Corporation and the Company, as amended, modified,
      restated and/or supplemented from time to time.

     

    6. The
      term
“Specified
      Number of Shares”
shall
      mean zero (0), but such amount shall automatically increase to Five Hundred
      One
      (501) of
      the
      fully paid and nonaccessable shares of Common Stock without further action
      in
      the event Holder shall not have received evidence satisfactory in all respects
      to the Holder that True North Energy Corporation shall have acquired all of
      the
      Assets (as defined in that Purchase and Sale Agreement to be entered into on
      or
      about October 1, 2007 among Angel LLC, CN Energy LLC, Swanson Energy Company,
      LLC, Fuel Exploration, LLC, MHBR Energy, LLC, Rocky Mountain Rig LLC and True
      North Energy Corporation) on terms reasonably acceptable to the Holder on or
      prior to January 18, 2008. 

     

    1. Exercise
      of Warrant.

     

    1.1 Number
      of Shares Issuable upon Exercise.
      From
      and after the date hereof, the Holder shall be entitled to receive, upon
      exercise of this Warrant in whole or in part, by delivery of an original or
      fax
      copy of an exercise notice in the form attached hereto as Exhibit A (the
“Exercise
      Notice”),
      shares of Common Stock of the Company, subject to adjustment pursuant to Section
      4.

     

    1.2 Fair
      Market Value.
      For
      purposes hereof, the “Fair
      Market Value”
of
      a
      share of Common Stock as of a particular date (the “Determination
      Date”)
      shall
      mean:

     

    (a) If
      the
      Company’s Common Stock is traded on the American Stock Exchange or another
      national exchange or is quoted on the National or Capital Market of The Nasdaq
      Stock Market, Inc. (“Nasdaq”),
      then
      the closing or last sale price, respectively, reported for the last business
      day
      immediately preceding the Determination Date.

     

    (b) If
      the
      Company’s Common Stock is not traded on the American Stock Exchange or another
      national exchange or on the Nasdaq but is traded on the NASD Over the Counter
      Bulletin Board, then the mean of the average of the closing bid and asked prices
      reported for the last business day immediately preceding the Determination
      Date.

     

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree or in the absence of agreement
      by arbitration in accordance with the rules then in effect of the American
      Arbitration Association, before a single arbitrator to be chosen from a panel
      of
      persons qualified by education and training to pass on the matter to be
      decided.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then issuable
      upon exercise of the Warrant are outstanding at the Determination
      Date.

     

    1.3 Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of this Warrant, upon the request
      of
      the holder hereof acknowledge in writing its continuing obligation to afford
      to
      such holder any rights to which such holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such holder any such
      rights.

     

    1.4 Trustee
      for Warrant Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      holders of this Warrant pursuant to Subsection 3.2, such bank or trust company
      shall have all the powers and duties of a warrant agent (as hereinafter
      described) and shall accept, in its own name for the account of the Company
      or
      such successor person as may be entitled thereto, all amounts otherwise payable
      to the Company or such successor, as the case may be, on exercise of this
      Warrant pursuant to this Section 1. 

     

    2. Procedure
      for Exercise.

     

    2.1 Delivery
      of Stock Certificates, Etc., on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder as the record owner of such
      shares as of the close of business on the date on which this Warrant shall
      have
      been surrendered and payment made for such shares in accordance herewith. As
      soon as practicable after the exercise of this Warrant in full or in part,
      and
      in any event within three (3) business days thereafter, the Company at its
      expense (including the payment by it of any applicable issue taxes) will cause
      to be issued in the name of and delivered to the Holder, or as such Holder
      (upon
      payment by such Holder of any applicable transfer taxes) may direct in
      compliance with applicable securities laws, a certificate or certificates for
      the number of duly and validly issued, fully paid and nonassessable shares
      of
      Common Stock (or Other Securities) to which such Holder shall be entitled on
      such exercise, plus, in lieu of any fractional share to which such holder would
      otherwise be entitled, cash equal to such fraction multiplied by the then Fair
      Market Value of one full share, together with any other stock or other
      securities and property (including cash, where applicable) to which such Holder
      is entitled upon such exercise pursuant to Section 1 or otherwise.

     

    2.2 Exercise.

     

    (a) Payment
      may be made either (i) in cash by wire transfer of immediately available funds
      or by certified or official bank check payable to the order of the Company
      equal
      to the applicable aggregate Exercise Price, (ii) by delivery of this Warrant,
      or
      shares of Common Stock and/or Common Stock receivable upon exercise of this
      Warrant in accordance with the formula set forth in subsection (b) below, or
      (iii) by a combination of any of the foregoing methods, for the number of Common
      Shares specified in such Exercise Notice (as such exercise number shall be
      adjusted to reflect any adjustment in the total number of shares of Common
      Stock
      issuable to the Holder per the terms of this Warrant) and the Holder shall
      thereupon be entitled to receive the number of duly authorized, validly issued,
      fully-paid and non-assessable shares of Common Stock (or Other Securities)
      determined as provided herein.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) Notwithstanding
      any provisions herein to the contrary, if the Fair Market Value of one share
      of
      Common Stock is greater than the Exercise Price (at the date of calculation
      as
      set forth below), in lieu of exercising this Warrant for cash, the Holder may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being exercised) by surrender of this Warrant at the
      principal office of the Company together with the properly endorsed Exercise
      Notice in which event the Company shall issue to the Holder a number of shares
      of Common Stock computed using the following formula:

     

    
      
        	
                X=

              	 	
                Y(A-B)

              	 
	 	 	
                A

              	 
	 	 	 
	
                Where
                  X =

              	 	
                the
                  number of shares of Common Stock to be issued to the
                  Holder

              
	
                 

              	 	
                 

              
	
                Y
                  =

              	 	
                the
                  number of shares of Common Stock purchasable under this Warrant
                  or, if
                  only a portion of this Warrant is being exercised, the portion
                  of this
                  Warrant being exercised (at the date of such
                  calculation)

              
	
                 

              	 	
                 

              
	
                A
                  =

              	 	
                the
                  Fair Market Value of one share of the Company’s Common Stock (at the date
                  of such calculation)

              
	
                 

              	 	
                 

              
	
                B
                  =

              	 	
                the
                  Exercise Price per share (as adjusted to the date of such
                  calculation)

              

      

    

     

    Notwithstanding
      anything to the contrary set forth in Section 2.2(a) above, to the extent that
      a
      registration statement registering all the shares of Common Stock of the Company
      issuable upon exercise of this Warrant has been declared effective by the
      Securities and Exchange Commission and remains effective as of the date of
      the
      proposed exercise set forth in an Exercise Notice, the Holder shall, upon such
      proposed exercise, make payment to the Company of each respective Exercise
      Price
      set forth in such Exercise Notice in cash by wire transfer of immediately
      available funds or by certified or official bank check only.

     

    3. Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

     

    3.1 Reorganization,
      Consolidation, Merger, Etc.
      If
      there occurs any capital reorganization or any reclassification of the Common
      Stock of the Company, the consolidation or merger of the Company with or into
      another person (other than a merger or consolidation of the Company in which
      the
      Company is the continuing entity and which does not result in any reorganization
      or reclassification of its outstanding Common Stock) or the sale or conveyance
      of all or substantially all of the assets of the Company to another person,
      then, as a condition precedent to any such reorganization, reclassification,
      consolidation, merger, sale or conveyance, the Holder will be entitled to
      receive upon surrender of the Warrant to the Company (a) to the extent there
      are
      cash proceeds resulting from the consummation of such reorganization,
      reclassification, consolidation, merger, sale or conveyance, in exchange for
      such Warrant, cash in an amount equal to the cash proceeds that would have
      been
      payable to the Holder had the Holder exercised such Warrant immediately prior
      to
      the consummation of such reorganization, reclassification, consolidation,
      merger, sale or conveyance, less the aggregate Exercise Price payable upon
      exercise of the Warrant, and (b) to the extent that the Holder would be entitled
      to receive Common stock (or Other Securities) (in addition to or in lieu of
      cash
      in connection with any such reorganization, reclassification, consolidation,
      merger, sale or conveyance), the same kind and amounts of securities or other
      assets, or both, that are issuable or distributable to the holders of
      outstanding Common Stock (or Other Securities) of the Company with respect
      to
      their Common Stock (or Other Securities) upon such reorganization,
      reclassification, consolidation, merger, sale or conveyance, as would have
      been
      deliverable to the Holder had the Holder exercised such Warrant immediately
      prior to the consummation of such reorganization, reclassification,
      consolidation, merger, sale or conveyance less an amount of such securities
      having a value equal to the aggregate Exercise Price payable upon exercise
      of
      the Warrant.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3.2 Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and other securities
      and property (including cash, where applicable) receivable by the Holder
      pursuant to Section 3.1, or, if the Holder shall so instruct the Company, to
      a
      bank or trust company specified by the Holder and having its principal office
      in
      New York, NY as trustee for the Holder (the “Trustee”).
      

     

    3.3 Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the shares of stock and other securities and property receivable on the exercise
      of this Warrant after the consummation of such reorganization, consolidation
      or
      merger or the effective date of dissolution following any such transfer, as
      the
      case may be, and shall be binding upon the issuer of any such stock or other
      securities, including, in the case of any such transfer, the person acquiring
      all or substantially all of the properties or assets of the Company, whether
      or
      not such person shall have expressly assumed the terms of this Warrant as
      provided in Section 4. In the event this Warrant does not continue in full
      force
      and effect after the consummation of the transactions described in this Section
      3, then the Company’s securities and property (including cash, where applicable)
      receivable by the Holder will be delivered to the Holder or the Trustee as
      contemplated by Section 3.2.

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock or any preferred
      stock issued by the Company, (b) subdivide its outstanding shares of Common
      Stock or (c) combine its outstanding shares of the Common Stock into a smaller
      number of shares of the Common Stock, then, in each such event, the Exercise
      Price shall, simultaneously with the happening of such event, be adjusted by
      multiplying the then Exercise Price by a fraction, the numerator of which shall
      be the number of shares of Common Stock outstanding immediately prior to such
      event and the denominator of which shall be the number of shares of Common
      Stock
      outstanding immediately after such event, and the product so obtained shall
      thereafter be the Exercise Price then in effect. The Exercise Price, as so
      adjusted, shall be readjusted in the same manner upon the happening of any
      successive event or events described herein in this Section 4. The number of
      shares of Common Stock that the Holder shall thereafter, on the exercise hereof
      as provided in Section 1, be entitled to receive shall be adjusted to a number
      determined by multiplying the number of shares of Common Stock that would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is Exercise Price that would
      otherwise (but for the provisions of this Section 4) be in effect, and (b)
      the
      denominator is the Exercise Price in effect on the date of such exercise (taking
      into account the provisions of this Section 4). Notwithstanding the foregoing,
      in no event shall the Exercise Price be less than the par value of the Common
      Stock.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of this Warrant, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of this
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or receivable
      by
      the Company for any additional shares of Common Stock (or Other Securities)
      issued or sold or deemed to have been issued or sold, (b) the number of shares
      of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
      and (c) the Exercise Price and the number of shares of Common Stock to be
      received upon exercise of this Warrant, in effect immediately prior to such
      adjustment or readjustment and as adjusted or readjusted as provided in this
      Warrant. The Company will forthwith mail a copy of each such certificate to
      the
      Holder and any warrant agent of the Company (appointed pursuant to Section
      11
      hereof).

     

    6. Reservation
      of Stock, Etc., Issuable on Exercise of Warrant.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of this Warrant, shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of this
      Warrant.

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”)
      in
      whole or in part. On the surrender for exchange of this Warrant, with the
      Transferor’s endorsement in the form of Exhibit B attached hereto (the
“Transferor
      Endorsement Form”)
      and
      together with evidence reasonably satisfactory to the Company demonstrating
      compliance with applicable securities laws, which shall include, without
      limitation, the provision of a legal opinion from the Transferor’s counsel (at
      the Company’s expense) that such transfer is exempt from the registration
      requirements of applicable securities laws, the Company at its expense (but
      with
      payment by the Transferor of any applicable transfer taxes) will issue and
      deliver to or on the order of the Transferor thereof a new Warrant of like
      tenor, in the name of the Transferor and/or the transferee(s) specified in
      such
      Transferor Endorsement Form (each a “Transferee”),
      calling in the aggregate on the face or faces thereof for the number of shares
      of Common Stock called for on the face or faces of the Warrant so surrendered
      by
      the Transferor.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

     

    9. Registration
      Rights.
      The
      Holder has been granted certain registration rights by the Company. These
      registration rights are set forth in a Registration Rights Agreement entered
      into by the Company and Holder dated as of the date hereof, as the same may
      be
      amended, modified and/or supplemented from time to time.

     

    10. Maximum
      Exercise.
      Notwithstanding anything herein to the contrary, in no event shall the Holder
      be
      entitled to exercise any portion of this Warrant in excess of that portion
      of
      this Warrant upon exercise of which the sum of (a) the number of shares of
      Common Stock beneficially owned by the Holder and its Affiliates (other than
      shares of Common Stock which may be deemed beneficially owned through the
      ownership of the unexercised portion of the Warrant or the unexercised or
      unconverted portion of any other security of the Holder subject to a limitation
      on conversion analogous to the limitations contained herein) and (b) the number
      of shares of Common Stock issuable upon the exercise of the portion of this
      Warrant with respect to which the determination of this proviso is being made,
      would result in beneficial ownership by the Holder and its Affiliates of any
      amount greater than 9.99% of the then outstanding shares of Common Stock
      (whether or not, at the time of such exercise, the Holder and its Affiliates
      beneficially own more than 9.99% of the then outstanding shares of Common
      Stock). As used herein, the term “Affiliate” means any person or entity that,
      directly or indirectly through one or more intermediaries, controls or is
      controlled by or is under common control with a person or entity, as such terms
      are used in and construed under Rule 144 under the Securities Act.   For
      purposes of the second preceding sentence, beneficial ownership shall be
      determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
      in clause (a) of such sentence. For any reason at any time, upon written or
      oral
      request of the Holder, the Company shall within one (1) business day confirm
      orally and in writing to the Holder the number of shares of Common Stock
      outstanding as of any given date. The limitations set forth herein (x) may
      be
      waived by the Holder upon provision of no less than sixty-one (61) days prior
      written notice to the Company and (y) shall automatically become null and void
      following notice to the Company upon the occurrence and during the continuance
      of an Event of Default (as defined in the Notes referred to and as defined
      in
      the Purchase Agreement).

     

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      for the purpose of issuing Common Stock (or Other Securities) on the exercise
      of
      this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section
      7, and replacing this Warrant pursuant to Section 8, or any of the foregoing,
      and thereafter any such issuance, exchange or replacement, as the case may
      be,
      shall be made at such office by such agent. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

     

    13. Notices,
      Etc.
      All
      notices and other communications from the Company to the Holder shall be mailed
      by first class registered or certified mail, postage prepaid, at such address
      as
      may have been furnished to the Company in writing by such Holder or, until
      any
      such Holder furnishes to the Company an address, then to, and at the address
      of,
      the last Holder who has so furnished an address to the Company.

     

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. THIS WARRANT SHALL
      BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT
      CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY
      IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE
      OF
      NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION
      AND BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. The individuals executing
      this Warrant on behalf of the Company agree to submit to the jurisdiction of
      such courts and waive trial by jury. The prevailing party shall be entitled
      to
      recover from the other party its reasonable attorneys’ fees and costs. In the
      event that any provision of this Warrant 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 Warrant. The headings in this
      Warrant are for purposes of reference only, and shall not limit or otherwise
      affect any of the terms hereof. The invalidity or unenforceability of any
      provision hereof shall in no way affect the validity or enforceability of any
      other provision hereof. The Company acknowledges that legal counsel participated
      in the preparation of this Warrant 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 Warrant to favor any party
      against the other party.

     

    [Signatures
      Appear on the Following Page.]

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

      Exhibit
        4.6

    

     

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above.

    
      	 	 	 
	 	
              ICF
                ENERGY CORPORATION

            
	 	 	 
	
              WITNESS:

            	 	 
	 
 	 
 	 
 
	/s/ John Metzger	By:  	
              /s/
                John I. Folnovic

            
	
              

            	
              

              Name:
                John
                I. Folnovic

            
	 	Title: President
              and Chief Executive Officer

    

     

    
      
        
        

      

      
        
           

        

        
          

        

      

      
        
        

      

    

     

      Exhibit
        4.6

       

    

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION

     

    (To
      Be
      Signed Only On Exercise Of Warrant)

     

    
      	
              TO:

            	
              ICF
                ENERGY CORPORATION 
                c/o
                  True North Energy Corporation

                1400
                  Woodloch Forest Drive

                Suite
                  530

                The
                  Woodlands, Texas
                  77380

              

            

       

        Attention: Chief
          Financial Officer

      

    

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____), hereby irrevocably elects to purchase (check applicable
      box):

     

    
      	
              ________

            	
              ________
                shares of the Common Stock covered by such Warrant; or

            
	 	 
	
              ________

            	
              the
                maximum number of shares of Common Stock covered by such Warrant
                pursuant
                to the cashless exercise procedure set forth in Section
                2.

            

    

     

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

     

    
      	
              ________

            	
              $__________
                in lawful money of the United States; and/or

            
	 	 
	
              ________

            	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of _______ shares of Common Stock (using a Fair Market Value
                of
                $_______ per share for purposes of this calculation);
                and/or

            
	 	 
	
              ________

            	
              the
                cancellation of such number of shares of Common Stock as is necessary,
                in
                accordance with the formula set forth in Section 2.2, to exercise
                this
                Warrant with respect to the maximum number of shares of Common Stock
                purchasable pursuant to the cashless exercise procedure set forth
                in
                Section 2.

            

    

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to
      _______________________________________________________________________________
      whose address is
      ___________________________________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities
      Act”)
      or
      pursuant to an exemption from registration under the Securities
      Act.

     

     

    
      	
              Dated:

            	 	 
	 	
              
 	
              
                
(Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	 	 
	 	 	
              Address:

            	 
	 	 	 	
              
  

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      Exhibit
        4.6

       

    

    EXHIBIT
      B

     

    FORM
      OF TRANSFEROR ENDORSEMENT

     

    (To
      Be
      Signed Only On Transfer Of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of ICF ENERGY CORPORATION into which the within Warrant relates specified
      under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of ICF ENERGY
      CORPORATION with full power of substitution in the premises.

     

    
      	
              Transferees

            	
               

            	
              Address

            	
               

            	
              Percentage
                Transferred

            	
               

            	
              Number
                

              Transferred

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    
      	
              Dated:

            	 	 
	 	
              

            	
              
                
(Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	 	 
	 	 	
              Address:

            	 
	 	 	 	
              
                

              

               

              
                

              

               

            
	 	 	
              SIGNED
                IN THE PRESENCE OF:

            
	 	 	 
	 	 	
              
                
 (Name)

            

    

     

    ACCEPTED
      AND AGREED:

    [TRANSFEREE]

     

    
      

    

    (Name)Exhibit
      10.1

     

    SECURITIES
      PURCHASE AGREEMENT

     

    VALENS
      U.S. SPV I, LLC, as Agent

     

    with

     

    TRUE
      NORTH ENERGY CORPORATION

     

    and

     

    ICF
      ENERGY CORPORATION

     

    Dated:
      September 18, 2007

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      

      TABLE
        OF CONTENTS

      

      
        	 	 	 	 	
                Page

              
	
                1.

              	
                Agreement
                  to Sell and Purchase

              	 	
                1

              
	 	 	 	
                 

              
	
                2.

              	
                Fees,
                  Warrants and Overriding Royalty Interests

              	 	
                2

              
	 	 	 	
                 

              
	
                3.

              	
                Closing,
                  Delivery and Payment.

              	 	
                3

              
	 	
                3.1

              	
                Closing

              	 	
                3

              
	 	
                3.2

              	
                Delivery

              	 	
                3

              
	 	 	 	
                 

              
	
                4.

              	
                Representations
                  and Warranties of the Companies

              	 	
                3

              
	 	
                4.1

              	
                Organization,
                  Good Standing and Qualification

              	 	
                3

              
	 	
                4.2

              	
                Subsidiaries

              	 	
                4

              
	 	
                4.3

              	
                Capitalization;
                  Voting Rights.

              	 	
                5

              
	 	
                4.4

              	
                Authorization;
                  Binding Obligations

              	 	
                
                  5

                

              
	 	
                4.5

              	
                Liabilities;
                  Solvency

              	 	
                6

              
	 	
                4.6

              	
                Agreements;
                  Action

              	 	
                7

              
	 	
                4.7

              	
                Obligations
                  to Related Parties

              	 	
                8

              
	 	
                4.8

              	
                Changes

              	 	
                9

              
	 	
                4.9

              	
                Title
                  to Properties and Assets; Liens, Etc

              	 	
                10

              
	 	
                4.10

              	
                Intellectual
                  Property.

              	 	
                11

              
	 	
                4.11

              	
                Compliance
                  with Other Instruments

              	 	
                11

              
	 	
                4.12

              	
                Litigation

              	 	
                12

              
	 	
                4.13

              	
                Tax
                  Returns and Payments

              	 	
                12

              
	 	
                4.14

              	
                Employees

              	 	
                12

              
	 	
                4.15

              	
                Registration
                  Rights and Voting Rights

              	 	
                13

              
	 	
                4.16

              	
                Compliance
                  with Laws; Permits

              	 	
                13

              
	 	
                4.17

              	
                Environmental
                  and Safety Laws

              	 	
                
                  13

                

              
	 	
                4.18

              	
                Valid
                  Offering

              	 	
                14

              
	 	
                4.19

              	
                Full
                  Disclosure

              	 	
                14

              
	 	
                4.20

              	
                Insurance

              	 	
                14

              
	 	
                4.21

              	
                SEC
                  Reports

              	 	
                
                  14

                

              
	 	
                4.22

              	
                Listing

              	 	
                15

              
	 	
                4.23

              	
                No
                  Integrated Offering

              	 	
                15

              
	 	
                4.24

              	
                Stop
                  Transfer

              	 	
                
                  15

                

              
	 	
                4.25

              	
                Dilution

              	 	
                
                  15

                

              
	 	
                4.26

              	
                Patriot
                  Act

              	 	
                16

              
	 	
                4.27

              	
                ERISA

              	 	
                
                  
                    16

                  

                

              
	 	
                4.28

              	
                Oil
                  and Gas Properties; Titles, Etc

              	 	
                
                  16

                

              
	 	
                4.29

              	
                Maintenance
                  of Oil and Gas Properties

              	 	
                17

              
	 	
                4.30

              	
                Gas
                  Imbalances, Prepayments

              	 	
                17

              
	 	
                4.31

              	
                Marketing
                  of Production

              	 	
                
                  17

                

              
	 	
                4.32

              	
                Swap
                  Agreements

              	 	
                
                  17

                

              
	 	 	 	
                 

              
	
                5.

              	
                Representations
                  and Warranties of Each Purchaser

              	 	
                18

              
	 	
                5.1

              	
                No
                  Shorting

              	 	
                18

              
	 	
                5.2

              	
                Requisite
                  Power and Authority

              	 	
                18

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      
        

        TABLE
          OF CONTENTS

      

       

      
        	 	 	 	 	
                Page

              
	 	
                5.3

              	
                Investment
                  Representations

              	 	
                
                  
                    18

                  

                

              
	 	
                5.4

              	
                The
                  Purchaser Bears Economic Risk

              	 	
                
                  18

                

              
	 	
                5.5

              	
                Acquisition
                  for Own Account

              	 	
                19

              
	 	
                5.6

              	
                The
                  Purchaser Can Protect Its Interest

              	 	
                19

              
	 	
                5.7

              	
                Accredited
                  Investor

              	 	
                19

              
	 	
                5.8

              	
                Legends.

              	 	
                19

              
	 	 	 	 
	
                6.

              	
                Covenants
                  of the Companies

              	 	
                20

              
	 	
                6.1

              	
                Stop
                  Orders

              	 	
                
                  20

                

              
	 	
                6.2

              	
                Listing

              	 	
                
                  20

                

              
	 	
                6.3

              	
                Market
                  Regulations

              	 	
                21

              
	 	
                6.4

              	
                Disclosure
                  Controls

              	 	
                21

              
	 	
                6.5

              	
                Reporting
                  Requirements

              	 	
                21

              
	 	
                6.6

              	
                Use
                  of Funds

              	 	
                22

              
	 	
                6.7

              	
                Access
                  to Facilities

              	 	
                
                  
                    22

                  

                

              
	 	
                6.8

              	
                Taxes

              	 	
                23

              
	 	
                6.9

              	
                Insurance

              	 	
                
                  23

                

              
	 	
                6.10

              	
                Intellectual
                  Property

              	 	
                24

              
	 	
                6.11

              	
                Properties

              	 	
                
                  24

                

              
	 	
                6.12

              	
                Confidentiality

              	 	
                
                  24

                

              
	 	
                6.13

              	
                Required
                  Approvals

              	 	
                25

              
	 	
                6.14

              	
                Reissuance
                  of Securities

              	 	
                26

              
	 	
                6.15

              	
                Opinion

              	 	
                
                  26

                

              
	 	
                6.16

              	
                Margin
                  Stock

              	 	
                
                  26

                

              
	 	
                6.17

              	
                FIRPTA

              	 	
                
                  26

                

              
	 	
                6.18

              	
                Financing
                  Right of First Refusal.

              	 	
                27

              
	 	
                6.19

              	
                Authorization
                  and Reservation of Shares

              	 	
                
                  27

                

              
	 	
                6.20

              	
                Summaries;
                  Reports

              	 	
                28

              
	 	
                6.21

              	
                Lockbox
                  Accounts

              	 	
                28

              
	 	
                6.22

              	
                Prohibitions
                  of Payment Under Subordinated Debt Documentation

              	 	
                28

              
	 	
                6.23

              	
                Financial
                  Statements; Other Information

              	 	
                
                  
                    28

                  

                

              
	 	
                6.24

              	
                Operation
                  and Maintenance of Oil and Gas Properties

              	 	
                
                  28

                

              
	 	
                6.25

              	
                Reserve
                  Reports.

              	 	
                
                  29

                

              
	 	
                6.26

              	
                Marketing
                  Activities

              	 	
                30

              
	 	
                6.27

              	
                Sale
                  of Oil and Gas Properties

              	 	
                
                  30

                

              
	 	
                6.28

              	
                Gas
                  Imbalances, Take-or-Pay or Other Prepayments

              	 	
                
                  30

                

              
	 	
                6.29

              	
                Swap
                  Agreements

              	 	
                
                  30

                

              
	 	
                6.30

              	
                Investor
                  Relations/Public Relations

              	 	
                
                  30

                

              
	 	
                6.31

              	
                Board
                  Observation Rights

              	 	
                31

              
	 	 	 	
                 

              
	
                7.

              	
                Covenants
                  of the Creditor Parties

              	 	
                
                  31

                

              
	 	
                7.1

              	
                Confidentiality

              	 	
                
                  31

                

              
	 	
                7.2

              	
                Non
                  Public Information

              	 	
                
                  31

                

              
	 	
                7.3

              	
                Limitation
                  on Acquisition of Common Stock of any Company

              	 	
                
                  31

                

              
	 	
                7.4

              	
                Release
                  of Colorado and Alaska Collateral

              	 	
                
                  32

                

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
        

        TABLE
          OF CONTENTS
 

      

      
        	 	 	 	
                
                  Page

                

              
	
                8.

              	
                Covenants
                  of the Companies and the Creditor Parties Regarding
                  Indemnification.

              	 	
                32

              
	 	
                8.1

              	
                Company
                  Indemnification

              	 	
                
                  32

                

              
	 	
                8.2

              	
                Creditor
                  Parties’ Indemnification

              	 	
                
                  33

                

              
	 	 	 	
                 

              
	
                9.

              	
                Exercise
                  of the Warrants.

              	 	
                
                  33

                

              
	 	
                9.1

              	
                Mechanics
                  of Exercise.

              	 	
                
                  33

                

              
	 	 	 	
                 

              
	
                10.

              	
                Registration
                  Rights.

              	 	
                34

              
	 	
                10.1

              	
                Registration
                  Rights Granted

              	 	
                
                  34

                

              
	 	
                10.2

              	
                Offering
                  Restrictions

              	 	
                
                  34

                

              
	 	 	 	
                 

              
	
                11.

              	
                Miscellaneous.

              	 	
                
                  34

                

              
	 	
                11.1

              	
                Governing
                  Law, Jurisdiction and Waiver of Jury Trial.

              	 	
                
                  34

                

              
	 	
                11.2

              	
                Severability

              	 	
                36

              
	 	
                11.3

              	
                Survival

              	 	
                
                  36

                

              
	 	
                11.4

              	
                Successors

              	 	
                
                  36

                

              
	 	
                11.5

              	
                Entire
                  Agreement; Maximum Interest

              	 	
                37

              
	 	
                11.6

              	
                Amendment
                  and Waiver.

              	 	
                
                  37

                

              
	 	
                11.7

              	
                Delays
                  or Omissions

              	 	
                38

              
	 	
                11.8

              	
                Notices

              	 	
                
                  38

                

              
	 	
                11.9

              	
                Attorneys’
                  Fees

              	 	
                
                  39

                

              
	 	
                11.10

              	
                Titles
                  and Subtitles

              	 	
                
                  39

                

              
	 	
                11.11

              	
                Facsimile
                  Signatures; Counterparts

              	 	
                
                  39

                

              
	 	
                11.12

              	
                Broker’s
                  Fees

              	 	
                
                  39

                

              
	 	
                11.13

              	
                Construction

              	 	
                
                  
                    39

                  

                

              
	 	
                11.14

              	
                Joint
                  and Several Obligations.

              	 	
                
                  40

                

              
	 	
                11.15

              	
                Agency

              	 	
                
                  40

                

              

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      LIST
        OF EXHIBITS

       

      
        	
                Form
                  of Term Note

              	 	
                Exhibit
                  A

              
	
                Form
                  of TNEC Warrant

              	 	
                Exhibit
                  B-1

              
	
                Form
                  of ICF Warrant

              	 	
                Exhibit
                  B-2

              
	
                Form
                  of Opinion

              	 	
                Exhibit
                  C

              
	
                Form
                  of Escrow Agreement

              	 	
                Exhibit
                  D

              

      

       

      LIST
        OF SCHEDULES

       

      
        	
                Schedule
                  4.2

              	 	
                Subsidiaries

              
	
                Schedule
                  4.3

              	 	
                Capitalization

              
	
                Schedule
                  4.6

              	 	
                Agreements

              
	
                Schedule
                  4.7

              	 	
                Obligations
                  to Related Parties

              
	
                Schedule
                  4.9

              	 	
                Title
                  to Properties and Assets, Liens, Etc. 

              
	
                Schedule
                  4.12

              	 	
                Litigation

              
	
                Schedule
                  4.13

              	 	
                Tax
                  Returns and Payments

              
	
                Schedule
                  4.14

              	 	
                Employees

              
	
                Schedule
                  4.15

              	 	
                Voting
                  Rights

              
	
                Schedule
                  4.17

              	 	
                Environmental
                  

              
	
                Schedule
                  6.13

              	 	
                Required
                  Approvals 

              
	
                Schedule
                  11.12

              	 	
                Brokers

              

      

       

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

    

     

    SECURITIES
      PURCHASE AGREEMENT

     

    THIS
      SECURITIES PURCHASE AGREEMENT (this “Agreement”)
      is
      made and entered into as of September 18, 2007, by and among TRUE NORTH ENERGY
      CORPORATION, a Nevada corporation (“TNEC”),
      ICF
      ENERGY CORPORATION, a Texas corporation (“ICF”
and
      together with TNEC, each a “Company”
and
      collectively the “Companies”),
      and
      VALENS U.S. SPV I, LLC, a Delaware limited liability company, as agent (the
      “Agent”), and the purchasers from time to time party hereto (the “Purchasers”
and, together with the Agent, the “Creditor Parties”).

     

    RECITALS

     

    WHEREAS,
      the Companies have authorized the sale to each Purchaser of a Secured Term
      Note
      in the form of Exhibit
      A
      hereto
      in the aggregate principal amount set forth opposite such Purchaser’s name on
Schedule
      1
      hereto
      (each as amended, modified and/or supplemented from time to time, individually,
      each a “Note”
and
      collectively, the “Notes”);

     

    WHEREAS,
      (a) TNEC wishes to issue to each Purchaser a warrant in the form of Exhibit
      B-1
      hereto
      (as amended, modified and/or supplemented from time to time, individually,
      each
      a “TNEC
      Warrant”
and
      collectively, the “TNEC
      Warrants”)
      to
      purchase an aggregate amount of up to 1,953,126 shares of TNEC’s common stock,
      collectively, $0.0001 par value per share (the “TNEC
      Common Stock”)
      (subject to adjustment as set forth therein) and (b) ICF wishes to issue to
      each
      Purchaser a warrant in the form of Exhibit B-2 hereto (as amended, modified
      and/or supplemented from time to time, individually, each an “ICF
      Warrant”
and
      collectively, the “ICF
      Warrants,”
and
      together with the TNEC Warrants, the “Warrants”
and
      each a “Warrant”)
      to
      purchase, collectively, an aggregate amount of up to 1,000 shares of ICF’s
      common stock, $0.01 par value per share (the “ICF
      Common Stock”
and
      together with the TNEC Common Stock, the “Common
      Stock”)
      (subject to adjustment as set forth therein), each in connection with such
      Purchaser’s purchase of the applicable Note;

     

    WHEREAS,
      each Purchaser desires to purchase the applicable Note and the applicable
      Warrants on the terms and conditions set forth herein; and

     

    WHEREAS,
      the Companies desire to issue and sell the applicable Note, and desire to issue
      and sell the applicable Warrants, to each Purchaser on the terms and conditions
      set forth herein.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing recitals and the mutual promises,
      representations, warranties and covenants hereinafter set forth and for other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

     

    1. Agreement
      to Sell and Purchase.
      Pursuant to the terms and conditions set forth in this Agreement, on the Closing
      Date (as defined in Section 3), the Companies shall sell to each Purchaser,
      and
      each Purchaser shall purchase from the Companies, the applicable Note. The
      sale
      of the Notes on the Closing Date shall be known as the “Offering”.
      Each
      Note will mature on the Maturity Date (as defined in each Note). Collectively,
      the Notes, the Warrants and the Common Stock issuable upon exercise of any
      of
      the Warrants are referred to as the “Securities”.
      All
      obligations of the Companies to each Purchaser pursuant to the applicable Note
      shall be joint and several.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2. Fees,
      Warrants and Overriding Royalty Interests.
      On the
      Closing Date:

     

    (a) TNEC
      will
      issue and deliver to each Purchaser the applicable TNEC Warrants to purchase,
      collectively, an aggregate amount of up to 1,953,126 shares of TNEC Common
      Stock
      (subject to adjustment as set forth therein) and ICF will issue and deliver
      to
      each Purchaser the applicable ICF Warrants to purchase an aggregate amount
      of up
      to 1,000 shares of ICF Common Stock (subject to adjustment as set forth therein)
      in connection with the Offering, pursuant to Section 1 hereof. All the
      representations, covenants, warranties, undertakings, and indemnification,
      and
      other rights made or granted to or for the benefit of each Purchaser by the
      applicable Company are hereby also made and granted for the benefit of the
      holder of each of the Warrants and shares of Common Stock issuable upon exercise
      of any of such Warrants (the “Warrant
      Shares”).

     

    (b) Subject
      to the terms of Section 2(d) below, the Companies shall jointly and severally
      pay (i) to Valens Capital Management, LLC, the investment manager of the each
      Purchaser (“VCM”), a non-refundable payment in an amount equal to Fifty-Six
      Thousand Two Hundred Fifty Dollars ($56,250), plus
      reasonable expenses (including legal fees and expenses) incurred in connection
      with the entering into of this Agreement and the Related Agreements (as
      hereinafter defined), and expenses incurred in connection with VCM’s due
      diligence review of the Company and its Subsidiaries) and all related matters;
      (ii) to Valens U.S. SPV I, LLC a non-refundable payment in an amount equal
      to
      Twenty-Three Thousand Four Hundred Forty-Three Dollars ($23,443); (iii) to
      Valens U.S. SPV I, LLC an advance prepayment discount deposit equal to
      Twenty-Three Thousand Four Hundred Forty-Three Dollars ($23,443); (iv) to Valens
      Offshore SPV II, Corp. a non-refundable payment in an amount equal to
      Twenty-Three Thousand Four Hundred Thirty-Two Dollars ($23,432); and (v) to
      Valens Offshore SPV II, Corp. an advance prepayment discount deposit equal
      to
      Twenty-Three Thousand Four Hundred Thirty-Two Dollars ($23,432). Each of the
      foregoing payments in clauses (i), (ii), (iii), (iv) and (v) above shall be
      deemed fully earned on the Closing Date and shall not be subject to rebate
      or
      proration for any reason. 

     

    (c) In
      consideration of each Purchaser’s entering into this Agreement and purchasing
      the applicable Note from the Companies, the applicable TNEC Warrants from TNEC
      and the applicable ICF Warrants from ICF, ICF shall issue to such
      Purchasers an aggregate five percent (5.0%) overriding royalty interest
      (the “ORRI”)
      in the
      oil and gas properties of ICF (subject to adjustment as set forth in the
      Assignment of Overriding Royalty Interest (as defined in Section 4.1 below));
      provided, however, such aggregate percentage shall automatically reduce to
      three
      percent (3%) upon the indefeasible payment in full of all Obligations (as
      defined in each Security Document).  The ORRI shall be irrevocable and
      shall survive the termination of this Agreement and payment in full of the
      Notes. ICF shall execute and deliver all such documentation and take such
      further action as may be required by any Purchaser in connection with the
      issuance of the ORRI to such Purchaser.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) The
      payment and the expenses referred to in the preceding clause (b) (net of
      deposits previously paid by the Companies) shall be paid at closing out of
      funds
      held pursuant to the Escrow Agreement (as defined in Section 4.1) and a
      disbursement letter (the “Disbursement
      Letter”).

     

    3. Closing,
      Delivery and Payment.

     

    3.1 Closing.
      Subject
      to the terms and conditions herein, the closing of the transactions contemplated
      hereby (the “Closing”),
      shall
      take place on the date hereof, at such time or place as the Companies and the
      Agent may mutually agree (such date is hereinafter referred to as the
“Closing
      Date”).

     

    3.2 Delivery.
      Pursuant to the Escrow Agreement, at the Closing on the Closing Date, the
      Companies will deliver to each Purchaser, among other things, the applicable
      Note and the Warrants and such Purchaser will deliver to the Companies, among
      other things, the amounts set forth opposite its name in the Disbursement Letter
      by certified funds or wire transfer. Each Company hereby acknowledges and agrees
      that each Purchaser’s obligation to purchase the applicable Note from the
      Companies on the Closing Date shall be contingent upon the satisfaction (or
      waiver by the Agent in its sole discretion) of the items and matters set forth
      in the closing checklist provided by the Agent to the Companies on or prior
      to
      the Closing Date.

     

    4. Representations
      and Warranties of the Companies.
      Each
      Company hereby represents and warrants to each Creditor Party as
      follows:

     

    4.1 Organization,
      Good Standing and Qualification.
      Such
      Company and each of its Subsidiaries is a corporation, partnership or limited
      liability company, as the case may be, duly organized, validly existing and
      in
      good standing under the laws of its jurisdiction of organization. Such Company
      and each of its Subsidiaries has the corporate, limited liability company or
      partnership, as the case may be, power and authority to own and operate its
      properties and assets and, insofar as it is or shall be a party thereto, to
      (a)
      execute and deliver (i) this Agreement, (ii) the Notes and the Warrants to
      be
      issued in connection with this Agreement, (iii) the Master Security Agreement
      dated as of the date hereof among the Companies, certain Subsidiaries of the
      Companies, if any, the Purchasers and the Agent (as amended, modified and/or
      supplemented from time to time, the “Master
      Security Agreement”),
      (iv)
      each Registration Rights Agreement relating to the Securities issued in
      connection with the TNEC Warrants dated as of the date hereof among TNEC and
      the
      applicable Purchaser (as amended, modified and/or supplemented from time to
      time, the “TNEC
      Registration Rights Agreements”),
      (v)
      each Registration Rights Agreement relating to the Securities issued in
      connection with the ICF Warrants dated as of the date hereof among ICF and
      the
      applicable Purchaser (as amended, modified and/or supplemented from time to
      time, the “ICF
      Registration Rights Agreements”
and
      together with the TNEC Registration Rights Agreements, the “Registration
      Rights Agreements”),
      (vi)
      each Deed of Trust, Security Agreement, Financing Statement and Assignment
      of
      Production dated as of the date hereof made by ICF in favor of the Agent for
      the
      ratable benefit of the Purchasers (each, as amended, modified and/or
      supplemented from time to time, a “Deed
      of Trust”,
      and
      collectively, “Deeds
      of Trust”)
      concerning (A) twelve (12) non-producing oil and gas leases located in the
      Cook
      Inlet Area of the Kenai Peninsula Borough of Alaska and in the Beaufort Sea
      Area
      of the North Slope Borough (the “Alaska
      Property”),
      (B)
      twelve (12) non-producing oil and gas leases covering federal lands located
      in
      Moffet County, Colorado and issued by the Bureau of Land Management on behalf
      of
      the United States (the “Colorado
      Property”)
      and
      (C) those oil, gas and mineral leases compromising the Devon Fee Gas Unit and
      the O’Leary Gas Unit located in Brazoria County, Texas (the “Texas
      Property”)
      (vii)
      the Stock Pledge Agreement dated as of the date hereof between TNEC and the
      Agent (as amended, modified and/or supplemented from time to time, the
“Stock
      Pledge Agreement”),
      (viii) the Funds Escrow Agreement dated as of the date hereof among the
      Companies, the Purchasers and the escrow agent referred to therein,
      substantially in the form of Exhibit
      D
      hereto
      (as amended, modified and/or supplemented from time to time, the “Escrow
      Agreement”),
      (ix)
      the Collateral Assignment in favor of the Agent for the ratable benefit of
      the
      Purchasers of that certain Purchase and Sale Agreement by and between Prime
      Natural Resources, Inc. and ICF with a limited appearance by TNEC (the
“Acquisition
      Agreement”)
      dated
      as of August
      31, 2007 among
      Prime Natural Resources, Inc.,
      TNEC
      and
      ICF (as amended modified and/or supplemented from time to time, the
“Collateral
      Assignment”
and
      collectively with the Master Security Agreement, the Stock Pledge Agreement,
      each Deed of Trust and each other security agreement, deed of trust and/or
      mortgage from time to time entered into by either Company and/or any of their
      Subsidiaries or in favor of the Agent for the ratable benefit of the Purchasers,
      the “Security
      Documents”
and
      each a “Security
      Document”),
      (x)
      each Assignment of Overriding Royalty Interest dated as of the date hereof
      between ICF and the applicable Purchaser (as amended, modified and/or
      supplemented from time to time the, “Assignments
      of Overriding Royalty Interest”),
      and
      (xi) all other documents, instruments and agreements entered into in connection
      with the transactions contemplated hereby and thereby (the preceding clauses
      (ii) through (xi), collectively, the “Related
      Agreements”);
      (b)
      issue and sell the Notes; (c) issue and sell the Warrants and the Warrant Shares
      and (d) carry out the provisions of this Agreement and the Related Agreements
      and to carry on its business as presently conducted. Such Company and each
      of
      its Subsidiaries is duly qualified and is authorized to do business and is
      in
      good standing as a foreign corporation, partnership or limited liability
      company, as the case may be, in all jurisdictions in which the nature or
      location of its activities and of its properties (both owned and leased) makes
      such qualification necessary, except for those jurisdictions in which failure
      to
      do so has not, or could not reasonably be expected to have, individually or
      in
      the aggregate, a material adverse effect on the business, assets, liabilities,
      condition (financial or otherwise), properties, operations or prospects of
      such
      Company and its Subsidiaries, taken individually and as a whole (a “Material
      Adverse Effect”).

     

    
      
        
        

      

      
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    4.2 Subsidiaries.
      Each
      direct and indirect Subsidiary of each Company, the direct owner of such
      Subsidiary and its percentage ownership thereof, is set forth on Schedule 4.2.
      For the purpose of this Agreement, a “Subsidiary”
of
      any
      person or entity means (a) a corporation or other entity whose shares of stock
      or other ownership interests having ordinary voting power (other than stock
      or
      other ownership interests having such power only by reason of the happening
      of a
      contingency) to elect a majority of the directors of such corporation, or other
      persons or entities performing similar functions for such person or entity,
      are
      owned, directly or indirectly, by such person or entity or (b) a corporation
      or
      other entity in which such person or entity owns, directly or indirectly, more
      than 50% of the equity interests at such time.

     

    
      
        
        

      

      
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    4.3 Capitalization;
      Voting Rights.

     

    (a) With
      respect to TNEC, the authorized capital stock as of the date hereof consists
      of
      270,000,000 shares, of which 250,000,000 are shares of common stock, par value
      $0.0001 per share, 66,680,973 shares of which are issued and outstanding
      and 20,000,000 are
      shares of preferred stock, par value $0.0001
      per share of which no shares
      of
      preferred stock are issued and outstanding. The authorized, issued and
      outstanding capital stock of each Subsidiary of TNEC (other than ICF) is set
      forth on Schedule 4.3.

     

    (b) With
      respect to ICF, the authorized capital stock as of the date hereof consists
      of
      100,000 shares, of which 100,000 are shares of common stock, par value $0.01
      per
      share, 10,000 shares of which are issued and outstanding . The authorized,
      issued and outstanding capital stock (or equivalent thereof) of each Subsidiary
      of ICF is set forth on Schedule 4.3.

     

    (c) Except
      as
      disclosed on Schedule 4.3 and, in the case of TNEC, except as disclosed in
      its
      Exchange Act Filings (as defined in Section 4.5 below), other than: (i) the
      shares reserved for issuance under any Company’s stock option plans; and (ii)
      shares which may be granted pursuant to this Agreement and the Related
      Agreements, there are no outstanding options, warrants, rights (including
      conversion or preemptive rights and rights of first refusal), proxy or
      stockholder agreements or arrangements or agreements of any kind for the
      purchase or acquisition from any Company of any of its Securities. Except as
      disclosed on Schedule 4.3, neither the offer, issuance or sale of any of the
      Notes or the Warrants, or the issuance of any of the Warrant Shares, nor the
      consummation of any transaction contemplated hereby will result in a change
      in
      the price or number of any Securities of any Company outstanding, under
      anti-dilution or other similar provisions contained in or affecting any such
      Securities.

     

    (d) All
      issued and outstanding shares of each Company’s common stock: (i) have been duly
      authorized and validly issued and are fully paid and nonassessable; and (ii)
      were issued in compliance with all applicable state and federal laws concerning
      the issuance of securities.

     

    (e) The
      rights, preferences, privileges and restrictions of the shares of each Company’s
      Common Stock are as stated in such Company’s Certificate or Articles of
      Incorporation as amended through the date hereof (such Company’s “Charter”).
      The
      Warrant Shares have been duly and validly reserved for issuance. When issued
      in
      compliance with the provisions of this Agreement and each Company’s Charter, the
      Warrant Shares will be validly issued, fully paid and nonassessable, and will
      be
      free of any liens or encumbrances; provided, however, that the Securities may
      be
      subject to restrictions on transfer under state and/or federal securities laws
      as set forth herein or as otherwise required by such laws at the time a transfer
      is proposed.

     

    4.4 Authorization;
      Binding Obligations.
      All
      corporate, partnership or limited liability company, as the case may be, action
      on the part of each Company and each of its Subsidiaries (including their
      respective officers and directors) necessary for the authorization of this
      Agreement and the Related Agreements, the performance of all obligations of
      each
      Company and its Subsidiaries hereunder and under the other Related Agreements
      at
      the Closing and, the authorization, sale, issuance and delivery of the Notes
      and
      Warrants has been taken or will be taken prior to the Closing. This Agreement
      and the Related Agreements, when executed and delivered and to the extent it
      is
      a party thereto, will be valid and binding obligations of each Company and
      each
      of its Subsidiaries, enforceable against each such person or entity in
      accordance with their terms, except:

    
       

      (a) as
        limited by applicable bankruptcy, insolvency, reorganization, moratorium
        or
        other laws of general application affecting enforcement of creditors’ rights;
        and

       

    

    
      
        
        

      

      
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    (b) general
      principles of equity that restrict the availability of equitable or legal
      remedies.

     

    The
      sale
      of each Note is not and will not be subject to any preemptive rights or rights
      of first refusal that have not been properly waived or complied with. The
      issuance of the Warrants and the subsequent exercise of any of the Warrants
      for
      Warrant Shares are not and will not be subject to any preemptive rights or
      rights of first refusal that have not been properly waived or complied
      with.

     

    4.5 Liabilities;
      Solvency.
      (a) No
      Company nor any of its Subsidiaries has any liabilities, except current
      liabilities incurred in the ordinary course of business and liabilities
      disclosed in any of the Company’s filings under the Securities Exchange Act of
      1934 (“Exchange
      Act”)
      made
      prior to the date of this Agreement (collectively, the “Exchange
      Act Filings”),
      copies of which have been provided to the Creditor Parties.

     

    (a) Both
      before and after giving effect to (x) the transactions contemplated hereby
      that
      are to be consummated on the Closing Date, (y) the disbursement of the proceeds
      of, or the assumption of the liability in respect of, each Note pursuant to
      the
      instructions or agreement of the Companies and (z) the payment and accrual
      of
      all transaction costs in connection with the foregoing, each Company and each
      Subsidiary of the Companies, is and will be, Solvent. For purposes of this
      Section 4.5(b), “Solvent”
means,
      with respect to any individual, sole proprietorship, partnership, limited
      liability partnership, joint venture, trust, unincorporated organization,
      association, corporation, limited liability company, institution, public benefit
      corporation, entity or government (whether federal, state, county, city,
      municipal or otherwise, including any instrumentality, division, agency, body
      or
      department thereof), and shall include such Person’s successors and assigns
      (each, a “Person”)
      on a
      particular date, that on such date (i) the fair value of the property of such
      Person is greater than the total amount of liabilities, including contingent
      liabilities, of such Person; (ii) the present fair salable value of the assets
      of such Person is not less than the amount that will be required to pay the
      probable liability of such Person on its debts as they become absolute and
      matured; (iii) such Person does not intend to, and does not believe that it
      will, incur debts or liabilities beyond such Person’s ability to pay as such
      debts and liabilities mature; and (iv) such Person is not engaged in a business
      or transaction, and is not about to engage in a business or transaction, for
      which such Person’s property would constitute and unreasonably small capital.
      The amount of contingent liabilities (such as litigation, guaranties and pension
      plan liabilities) at any time shall be computed as the amount that, in light
      of
      all the facts and circumstances existing at the time, represents the amount
      that
      can reasonably be expected to become an actual or matured
      liability.

     

    
      
        
        

      

      
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    4.6 Agreements;
      Action.
      Except
      as set forth on Schedule 4.6 or, in the case of TNEC, as disclosed in any
      Exchange Act Filing:

     

    (a) There
      are
      no agreements, understandings, instruments, contracts, proposed transactions,
      judgments, orders, writs or decrees to which any Company or any of its
      Subsidiaries is a party or by which it is bound which may involve: (i)
      obligations (contingent or otherwise) of, or payments to, any Company or any
      of
      its Subsidiaries in excess of $75,000 (other than obligations of, or payments
      to, any Company or any of its Subsidiaries arising from purchase or sale
      agreements entered into in the ordinary course of business); or (ii) the
      transfer or license of any patent, copyright, trade secret or other proprietary
      right to or from any Company or any of its Subsidiaries (other than licenses
      arising from the purchase of “off the shelf” or other standard products); or
      (iii) provisions restricting the development, manufacture or distribution of
      any
      Company’s or any of its Subsidiaries products or services; or (iv)
      indemnification by any Company or any of its Subsidiaries with respect to
      infringements of proprietary rights.

     

    (b) Since
      its
      date of formation (with respect to ICF) and April 30, 2007 (with respect to
      TNEC) (as applicable, with respect to such Company, the “Measurement
      Date”),
      no
      Company nor any of its Subsidiaries has: (i) declared or paid any dividends,
      or
      authorized or made any distribution upon or with respect to any class or series
      of its capital stock; (ii) incurred any indebtedness for money borrowed or
      any
      other liabilities (other than ordinary course obligations) individually in
      excess of $75,000 or, in the case of indebtedness and/or liabilities
      individually less than $75,000, in excess of $75,000 in the aggregate; (iii)
      made any loans or advances to any person or entity not in excess, individually
      or in the aggregate, of $200,000, other than ordinary course advances for travel
      expenses; or (iv) sold, exchanged or otherwise disposed of any of its assets
      or
      rights, other than the sale of its inventory in the ordinary course of
      business.

     

    (c) For
      the
      purposes of subsections (a) and (b) above, all indebtedness, liabilities,
      agreements, understandings, instruments, contracts and proposed transactions
      involving the same person or entity (including persons or entities any Company
      or any Subsidiary of such Company has reason to believe are affiliated
      therewith) shall be aggregated for the purpose of meeting the individual minimum
      dollar amounts of such subsections.

     

    (d) TNEC
      maintains disclosure controls and procedures (“Disclosure
      Controls”)
      designed to ensure that information required to be disclosed by TNEC in the
      reports that it files or submits under the Exchange Act is recorded, processed,
      summarized, and reported, within the time periods specified in the rules and
      forms of the Securities and Exchange Commission (“SEC”).

     

    (e) Each
      Company makes and keep books, records, and accounts, that, in reasonable detail,
      accurately and fairly reflect the transactions and dispositions of such
      Company’s assets. Each Company maintains internal control over financial
      reporting (“Financial
      Reporting Controls”)
      designed by, or under the supervision of, such Company’s principal executive and
      principal financial officers, and effected by such Company’s board of directors,
      management, and other personnel, to provide reasonable assurance regarding
      the
      reliability of financial reporting and the preparation of financial statements
      for external purposes in accordance with generally accepted accounting
      principles (“GAAP”),
      including that:

    
       

      (i) transactions
        are executed in accordance with management’s general or specific
        authorization;

       

    

    
      
        
        

      

      
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    (ii) unauthorized
      acquisition, use, or disposition of such Company’s assets that could have a
      material effect on the financial statements are prevented or timely
      detected;

     

    (iii) transactions
      are recorded as necessary to permit preparation of financial statements in
      accordance with GAAP, and that such Company’s receipts and expenditures are
      being made only in accordance with authorizations of such Company’s management
      and board of directors;

     

    (iv) transactions
      are recorded as necessary to maintain accountability for assets;
      and

     

    (v) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals, and appropriate action is taken with respect to any
      differences.

     

    (vi) there
      is
      no weakness in any of TNEC’s Disclosure Controls or Financial Reporting Controls
      that is required to be disclosed in any of the Exchange Act Filings, except
      as
      so disclosed.

     

    4.7 Obligations
      to Related Parties.
      Except
      as set forth on Schedule 4.7, or, in the case of TNEC, as disclosed in any
      Exchange Act Filing, there are no obligations of any Company or any of its
      Subsidiaries to officers, directors, stockholders or employees of any Company
      or
      any of its Subsidiaries other than:

     

    (a) for
      payment of salary for services rendered and for bonus payments;

     

    (b) reimbursement
      for reasonable expenses incurred on behalf of any Company and its
      Subsidiaries;

     

    (c) for
      other
      standard employee benefits made generally available to all employees (including
      stock option agreements outstanding under any stock option plan approved by
      the
      Board of Directors of any Company and each Subsidiary of such Company, as
      applicable); and

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d) obligations
      listed in any Company’s and each of its Subsidiary’s financial statements or
      disclosed in any of TNEC’s Exchange Act Filings.

     

    Except
      as
      described above or set forth on Schedule 4.7, none of the officers, directors
      or, to the best of each Company’s knowledge, key employees or stockholders of
      any Company or any of its Subsidiaries or any members of their immediate
      families, are indebted to any Company or any of its Subsidiaries, individually
      or in the aggregate, in excess of $50,000 or have any direct or indirect
      ownership interest in any firm or corporation with which any Company or any
      of
      its Subsidiaries is affiliated or with which any Company or any of its
      Subsidiaries has a business relationship, or any firm or corporation which
      competes with any Company or any of its Subsidiaries, other than passive
      investments in publicly traded companies (representing less than one percent
      (1%) of such company) which may compete with any Company or any of its
      Subsidiaries. Except as described above, no officer, director or stockholder
      of
      any Company or any of its Subsidiaries, or any member of their immediate
      families, is, directly or indirectly, interested in any material contract with
      any Company or any of its Subsidiaries and no agreements, understandings or
      proposed transactions are contemplated between any Company or any of its
      Subsidiaries and any such person. Except as set forth on Schedule 4.7, no
      Company nor any of its Subsidiaries is a guarantor or indemnitor of any
      indebtedness of any other person or entity.

     

    4.8 Changes.
      Since
      the Measurement Date, except as disclosed, in the case of TNEC, any Exchange
      Act
      Filing or, in the case of each Company, in any Schedule to this Agreement or
      to
      any of the Related Agreements, there has not been:

     

    (a) any
      change in the business, assets, liabilities, condition (financial or otherwise),
      properties, operations or prospects of any Company or any of its Subsidiaries,
      which individually or in the aggregate has had, or could reasonably be expected
      to have, individually or in the aggregate, a Material Adverse
      Effect;

     

    (b) any
      resignation or termination of any officer, key employee or group of employees
      of
      any Company or any of its Subsidiaries;

     

    (c) any
      material change, except in the ordinary course of business, in the contingent
      obligations of any Company or any of its Subsidiaries by way of guaranty,
      endorsement, indemnity, warranty or otherwise;

     

    (d) any
      damage, destruction or loss, whether or not covered by insurance, which has
      had,
      or could reasonably be expected to have, individually or in the aggregate,
      a
      Material Adverse Effect;

     

    (e) any
      waiver by any Company or any of its Subsidiaries of a valuable right or of
      a
      material debt owed to it;

     

    (f) any
      direct or indirect loans made by any Company or any of its Subsidiaries to
      any
      stockholder, employee, officer or director of any Company or any of its
      Subsidiaries, other than advances made in the ordinary course of
      business;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (g) any
      material change in any compensation arrangement or agreement with any employee,
      officer, director or stockholder of any Company or any of its
      Subsidiaries;

     

    (h) any
      declaration or payment of any dividend or other distribution of the assets
      of
      any Company or any of its Subsidiaries;

     

    (i) any
      labor
      organization activity related to any Company or any of its
      Subsidiaries;

     

    (j) any
      debt,
      obligation or liability incurred, assumed or guaranteed by any Company or any
      of
      its Subsidiaries, except those for immaterial amounts and for current
      liabilities incurred in the ordinary course of business;

     

    (k) any
      sale,
      assignment or transfer of any patents, trademarks, copyrights, trade secrets
      or
      other intangible assets owned by any Company or any of its
      Subsidiaries;

     

    (l) any
      change in any material agreement to which any Company or any of its Subsidiaries
      is a party or by which either any Company or any of its Subsidiaries is bound
      which either individually or in the aggregate has had, or could reasonably
      be
      expected to have, individually or in the aggregate, a Material Adverse
      Effect;

     

    (m) any
      other
      event or condition of any character that, either individually or in the
      aggregate, has had, or could reasonably be expected to have, individually or
      in
      the aggregate, a Material Adverse Effect; or

     

    (n) any
      arrangement or commitment by any Company or any of its Subsidiaries to do any
      of
      the acts described in subsection (a) through (m) above.

     

    4.9 Title
      to Properties and Assets; Liens, Etc.
      Except
      as set forth on Schedule 4.9 or, in the case of TNEC, in any Exchange Act
      Filing, each Company and each of its Subsidiaries has good and marketable title
      to its properties and assets, and good title to its leasehold interests, in
      each
      case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other
      than:

     

    (a) those
      resulting from taxes which have not yet become delinquent;

     

    (b) minor
      liens and encumbrances which do not materially detract from the value of the
      property subject thereto or materially impair the operations of any Company
      or
      any of its Subsidiaries, so long as in each such case, such liens and
      encumbrances have no effect on the lien priority of the Agent in such property;
      and

     

    (c) those
      that have otherwise arisen in the ordinary course of business, so long as they
      have no effect on the lien priority of the Agent therein.

     

    
      
        
        

      

      
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    All
      facilities, machinery, equipment, fixtures, vehicles and other properties owned,
      leased or used by each Company and its Subsidiaries are in good operating
      condition and repair and are reasonably fit and usable for the purposes for
      which they are being used. Except as set forth on Schedule 4.9, each Company
      and
      its Subsidiaries are in compliance with all material terms of each lease to
      which it is a party or is otherwise bound.

     

    4.10 Intellectual
      Property.

     

    (a) Each
      Company and each of its Subsidiaries owns or possesses sufficient legal rights
      to all patents, trademarks, service marks, trade names, copyrights, trade
      secrets, licenses, information and other proprietary rights and processes
      necessary for its business as now conducted and, to each Company’s knowledge, as
      presently proposed to be conducted (the “Intellectual
      Property”),
      without any known infringement of the rights of others. There are no outstanding
      options, licenses or agreements of any kind relating to the foregoing
      proprietary rights, nor is any Company or any of its Subsidiaries bound by
      or a
      party to any options, licenses or agreements of any kind with respect to the
      patents, trademarks, service marks, trade names, copyrights, trade secrets,
      licenses, information and other proprietary rights and processes of any other
      person or entity other than such licenses or agreements arising from the
      purchase of “off the shelf” or standard products.

     

    (b) No
      Company nor any of its Subsidiaries has received any communications alleging
      that such Company or any of its Subsidiaries has violated any of the patents,
      trademarks, service marks, trade names, copyrights or trade secrets or other
      proprietary rights of any other person or entity, nor is any Company or any
      of
      its Subsidiaries aware of any basis therefor.

     

    (c) Neither
      Company believes it is or will be necessary to utilize any inventions, trade
      secrets or proprietary information of any of its employees made prior to their
      employment by any Company or any of its Subsidiaries, except for inventions,
      trade secrets or proprietary information that have been rightfully assigned
      to
      such Company or any of its Subsidiaries.

     

    4.11 Compliance
      with Other Instruments.
      No
      Company nor any of their Subsidiaries is in violation or default of (a) any
      term
      of its Charter or Bylaws, or (b) any provision of any indebtedness, mortgage,
      indenture, contract, agreement or instrument to which it is party or by which
      it
      is bound or of any judgment, decree, order or writ, which violation or default,
      in the case of this clause (b), has had, or could reasonably be expected to
      have, either individually or in the aggregate, a Material Adverse Effect. The
      execution, delivery and performance of and compliance with this Agreement and
      the Related Agreements to which it is a party, and the issuance and sale of
      the
      Notes by the Companies and the other Securities by the Companies each pursuant
      hereto and thereto, will not, with or without the passage of time or giving
      of
      notice, result in any such material violation, or be in conflict with or
      constitute a default under any such term or provision, or result in the creation
      of any mortgage, pledge, lien, encumbrance or charge upon any of the properties
      or assets of any Company or any of its Subsidiaries or the suspension,
      revocation, impairment, forfeiture or nonrenewal of any permit, license,
      authorization or approval applicable to any Company, its business or operations
      or any of its assets or properties.

     

    
      
        
        

      

      
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    4.12 Litigation.
      Except
      as set forth on Schedule 4.12 hereto or, in the case of TNEC, in any Exchange
      Act Filing, there is no action, suit, proceeding or investigation pending or,
      to
      any Company’s knowledge, currently threatened against any Company or any of its
      Subsidiaries that prevents any Company or any of its Subsidiaries from entering
      into this Agreement or the other Related Agreements, or from consummating the
      transactions contemplated hereby or thereby, or which has had, or could
      reasonably be expected to have, either individually or in the aggregate, a
      Material Adverse Effect or any change in the current equity ownership of any
      Company or any of its Subsidiaries, nor is any Company aware that there is
      any
      basis to assert any of the foregoing. No Company nor any of its Subsidiaries
      is
      a party to or subject to the provisions of any order, writ, injunction, judgment
      or decree of any court or government agency or instrumentality. There is no
      action, suit, proceeding or investigation by any Company or any of its
      Subsidiaries currently pending or which any Company or any of its Subsidiaries
      intends to initiate.

     

    4.13 Tax
      Returns and Payments.
      Each
      Company and each of its Subsidiaries has timely filed all tax returns (federal,
      state and local) required to be filed by it. All taxes shown to be due and
      payable on such returns, any assessments imposed, and all other taxes due and
      payable by each Company or any of its Subsidiaries on or before the Closing,
      have been paid or will be paid prior to the time they become delinquent. Except
      as set forth on Schedule 4.13, no Company nor any of its Subsidiaries has been
      advised:

     

    (a) that
      any
      of its returns, federal, state or other, have been or are being audited as
      of
      the date hereof; or

     

    (b) of
      any
      adjustment, deficiency, assessment or court decision in respect of its federal,
      state or other taxes.

     

    No
      Company has any knowledge of any liability for any tax to be imposed upon its
      properties or assets as of the date of this Agreement that is not adequately
      provided for.

     

    4.14 Employees.
      Except
      as set forth on Schedule 4.14, no Company nor any of its Subsidiaries has any
      collective bargaining agreements with any of its employees. There is no labor
      union organizing activity pending or, to any Company’s knowledge, threatened
      with respect to any Company or any of its Subsidiaries. Except as disclosed,
      in
      the case of TNEC, in the Exchange Act Filings or, in the case of each Company
      on
      Schedule 4.14, no Company nor any of its Subsidiaries is a party to or bound
      by
      any currently effective employment contract, deferred compensation arrangement,
      bonus plan, incentive plan, profit sharing plan, retirement agreement or other
      employee compensation plan or agreement. To each Company’s knowledge, no
      employee of any Company or any of its Subsidiaries, nor any consultant with
      whom
      any Company or any of its Subsidiaries has contracted, is in violation of any
      term of any employment contract, proprietary information agreement or any other
      agreement relating to the right of any such individual to be employed by, or
      to
      contract with, any Company or any of its Subsidiaries because of the nature
      of
      the business to be conducted by any Company or any of its Subsidiaries; and
      to
      each Company’s knowledge the continued employment by each Company and its
      Subsidiaries of their present employees, and the performance of each Company’s
      and its Subsidiaries’ contracts with its independent contractors, will not
      result in any such violation. No Company nor any of its Subsidiaries is aware
      that any of its employees is obligated under any contract (including licenses,
      covenants or commitments of any nature) or other agreement, or subject to any
      judgment, decree or order of any court or administrative agency that would
      interfere with their duties to such Company or any of its Subsidiaries. No
      Company nor any of its Subsidiaries has received any notice alleging that any
      such violation has occurred. Except for employees who have a current effective
      employment agreement with any Company or any of its Subsidiaries, no employee
      of
      any Company or any of its Subsidiaries has been granted the right to continued
      employment by any Company or any of its Subsidiaries or to any material
      compensation following termination of employment with any Company or any of
      its
      Subsidiaries. Except as set forth on Schedule 4.14, no Company is aware that
      any
      officer, key employee or group of employees intends to terminate his, her or
      their employment with any Company or any of its Subsidiaries, nor does any
      Company or any of its Subsidiaries have a present intention to terminate the
      employment of any officer, key employee or group of employees.

     

    
      
        
        

      

      
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    4.15 Registration
      Rights and Voting Rights.
      Except
      as set forth on Schedule 4.15 and, in the case of TNEC, except as disclosed
      in Exchange Act Filings, neither Company nor any of its Subsidiaries is
      presently under any obligation, and no Company nor any of its Subsidiaries
      has
      granted any rights, to register any Company’s or any of its Subsidiaries’
presently outstanding securities or any of its securities that may hereafter
      be
      issued. Except as set forth on Schedule 4.15 and, in the case of TNEC, except
      as
      disclosed in Exchange Act Filings, to each Company’s knowledge, no stockholder
      of any Company or any of its Subsidiaries has entered into any agreement with
      respect to the voting of equity securities of any Company or any of its
      Subsidiaries.

     

    4.16 Compliance
      with Laws; Permits.
      No
      Company nor any of its Subsidiaries is in violation of any provision of the
      Sarbanes Oxley Act of 2002 or any SEC related regulation or rule or any rule
      of
      the Principal Market (as defined in Section 4.22) promulgated thereunder, as
      applicable, or any other applicable statute, rule, regulation, order or
      restriction of any domestic or foreign government or any instrumentality or
      agency thereof in respect of the conduct of its business or the ownership of
      its
      properties which has had, or could reasonably be expected to have, either
      individually or in the aggregate, a Material Adverse Effect. No governmental
      orders, permissions, consents, approvals or authorizations are required to
      be
      obtained and no registrations or declarations are required to be filed in
      connection with the execution and delivery of this Agreement or any other
      Related Agreement and the issuance of any of the Securities, except such as
      have
      been duly and validly obtained or filed, or with respect to any filings that
      must be made after the Closing, as will be filed in a timely manner. Each
      Company and its Subsidiaries or, to the extent applicable, the operator(s),
      has
      all material franchises, permits, licenses and any similar authority necessary
      for the conduct of its business as now being conducted by it, the lack of which
      could, either individually or in the aggregate, reasonably be expected to have
      a
      Material Adverse Effect.

     

    4.17 Environmental
      and Safety Laws.
      No
      Company nor any of its Subsidiaries is in violation of any applicable statute,
      law or regulation relating to the environment or occupational health and safety,
      and to its knowledge, no material expenditures are or will be required in order
      to comply with any such existing statute, law or regulation. Except as set
      forth
      on Schedule 4.17, no Hazardous Materials (as hereinafter defined in this Section
      4.17) are used or have been used, stored, or disposed of by any Company or
      any
      of its Subsidiaries or, to any Company’s knowledge, by any other person or
      entity on any property owned, leased or used by any Company or any of its
      Subsidiaries. For the purposes of the preceding sentence, “Hazardous
      Materials”
shall
      mean:

     

    (a) materials
      which are listed or otherwise defined as “hazardous” or “toxic” under any
      applicable local, state, federal and/or foreign laws and regulations that govern
      the existence and/or remedy of contamination on property, the protection of
      the
      environment from contamination, the control of hazardous wastes, or other
      activities involving hazardous substances, including building materials;
      or

     

    
      
        
        

      

      
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    (b) any
      petroleum products or nuclear materials.

     

    4.18 Valid
      Offering.
      Assuming the accuracy of the representations and warranties of the Purchasers
      contained in this Agreement, the offer, sale and issuance of the Securities
      will
      be exempt from the registration requirements of the Securities Act of 1933,
      as
      amended (the “Securities
      Act”),
      and
      will have been registered or qualified (or are exempt from registration and
      qualification) under the registration, permit or qualification requirements
      of
      all applicable state securities laws.

     

    4.19 Full
      Disclosure.
      Each
      Company and each of its Subsidiaries has provided the Purchasers with all
      information requested by the Purchasers in connection with the Purchasers’
decision to purchase the Notes and Warrants, including all information each
      Company and its Subsidiaries believe is reasonably necessary to make such
      investment decision. Neither this Agreement, the Related Agreements, the
      exhibits and schedules hereto and thereto nor any other document delivered
      by
      any Company or any of its Subsidiaries to the Purchasers or their respective
      attorneys or agents in connection herewith or therewith or with the transactions
      contemplated hereby or thereby, contain any untrue statement of a material
      fact
      nor omit to state a material fact necessary in order to make the statements
      contained herein or therein, in light of the circumstances in which they are
      made, not misleading. Any financial projections and other estimates provided
      to
      the Purchasers by any Company or any of its Subsidiaries were based on such
      Company’s and its Subsidiaries’ experience in the industry and on assumptions of
      fact and opinion as to future events which such Company or any of its
      Subsidiaries, at the date of the issuance of such projections or estimates,
      believed to be reasonable.

     

    4.20 Insurance.
      Each
      Company and each of its Subsidiaries has general commercial, product liability,
      fire and casualty insurance policies with coverages which each Company believes
      are customary for companies similarly situated to such Company and its
      Subsidiaries in the same or similar business.

     

    4.21 SEC
      Reports.
      Except
      as set forth on Schedule 4.21, TNEC has filed all proxy statements, reports
      and
      other documents required to be filed by it under the Securities Exchange Act
      1934, as amended (the “Exchange
      Act”).
      TNEC
      has furnished the Purchasers copies of: (i) its Annual Reports on Form 10 KSB
      for its fiscal years ended April 30, 2007 and (ii) its Quarterly Reports on
      Form
      10 QSB for its fiscal quarter ended January 31, 2007 and the Form 8 K filings
      which it has made during the fiscal year 2007 to date (collectively, the
“SEC
      Reports”).
      Except as set forth on Schedule 4.21, each such SEC Report was, at the time
      of
      its filing, in substantial compliance with the requirements of its respective
      form and none of such SEC Reports, nor the financial statements (and the notes
      thereto) included in such SEC Reports, as of their respective filing dates,
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading.

     

    
      
        
        

      

      
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    4.22 Listing.
      

     

    (a) The
      ICF’s
      Common Stock is not listed or quoted, as applicable, on a Principal Market
      (as
      hereafter defined in this Section 4.22). ICF has not received any notice that
      the ICF Common Stock will be prevented from being listed or quoted on, as
      applicable, the Principal Market or that the ICF Common Stock will not meet
      all
      requirements for such listing or quotation, as applicable. For purposes hereof,
      the term “Principal
      Market”
means
      the NASD Over The Counter Bulletin Board, NASDAQ Capital Market, NASDAQ Global
      Markets System, American Stock Exchange or New York Stock Exchange (whichever
      of
      the foregoing is at the time the principal trading exchange or market for the
      Common Stock of ICF and/or TNEC).

     

    (b) The
      TNEC
      Common Stock is listed or quoted, as applicable, on a Principal Market and
      satisfies, and at all times hereafter will satisfy, all requirements for the
      continuation of such listing or quotation, as applicable. TNEC has not received
      any notice that the TNEC Common Stock will be delisted from, or no longer quoted
      on, as applicable, the Principal Market or that the TNEC Common Stock does
      not
      meet all requirements for such listing or quotation, as applicable.

     

    4.23 No
      Integrated Offering.
      No
      Company, nor any of its Subsidiaries or affiliates, nor any person acting on
      their behalf, has directly or indirectly made any offers or sales of any
      security or solicited any offers to buy any security under circumstances that
      would cause the offering of the Securities pursuant to this Agreement or any
      of
      the Related Agreements to be integrated with prior offerings by any Company
      for
      purposes of the Securities Act which would prevent any Company from selling
      the
      Securities pursuant to Rule 506 under the Securities Act, or any applicable
      exchange-related stockholder approval provisions, nor will any Company or any
      of
      its affiliates or Subsidiaries take any action or steps that would cause the
      offering of the Securities to be integrated with other offerings.

     

    4.24 Stop
      Transfer.
      The
      Securities are restricted securities as of the date of this Agreement. No
      Company nor any of its Subsidiaries will issue any stop transfer order or other
      order impeding the sale and delivery of any of the Securities at such time
      as
      the Securities are registered for public sale or an exemption from registration
      is available, except as required by state and federal securities
      laws.

     

    4.25 Dilution.
      Each
      Company specifically acknowledges that its obligation to issue the shares of
      its
      Common Stock upon exercise of any of the Warrants is binding upon such Company
      and enforceable regardless of the dilution such issuance may have on the
      ownership interests of other shareholders of such Company.

     

    
      
        
        

      

      
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    4.26 Patriot
      Act.
      Each
      Company certifies that, to the best of its knowledge, neither it nor any of
      its
      Subsidiaries has been designated, nor is or shall be owned or controlled, by
      a
“suspected terrorist” as defined in Executive Order 13224. Each Company hereby
      acknowledges that each of the Creditor Parties seeks to comply with all
      applicable laws concerning money laundering and related activities. In
      furtherance of those efforts, each Company hereby represents, warrants and
      covenants that: (a) none of the cash or property that any Company or any of
      its
      Subsidiaries will pay or will contribute to any Creditor Party has been or
      shall
      be derived from, or related to, any activity that is deemed criminal under
      United States law; and (b) no contribution or payment by any Company or any
      of
      its Subsidiaries to any Creditor Party, to the extent that they are within
      any
      Company’s and/or its Subsidiaries’ control shall cause such Creditor Party to be
      in violation of the United States Bank Secrecy Act, the United States
      International Money Laundering Control Act of 1986 or the United States
      International Money Laundering Abatement and Anti-Terrorist Financing Act of
      2001. Each Company shall promptly notify the Creditor Parties if any of these
      representations, warranties or covenants ceases to be true and accurate
      regarding any Company or any of its Subsidiaries. Each Company shall provide
      the
      Creditor Parties all additional information regarding any Company or any of
      its
      Subsidiaries that any Creditor Party deems necessary or convenient to ensure
      compliance with all applicable laws concerning money laundering and similar
      activities. Each Company understands and agrees that if at any time it is
      discovered that any of the foregoing representations, warranties or covenants
      are incorrect, or if otherwise required by applicable law or regulation related
      to money laundering or similar activities, the Creditor Parties may undertake
      appropriate actions to ensure compliance with applicable law or regulation,
      including but not limited to segregation and/or redemption of any Purchaser’s
      investment in any Company. Each Company further understands that any Creditor
      Party may release confidential information about any Company and its
      Subsidiaries and, if applicable, any underlying beneficial owners, to proper
      authorities if such Creditor Party, in its sole discretion, determines that
      it
      is in the best interests of such Creditor Party in light of relevant rules
      and
      regulations under the laws set forth in subsection (b) above.

     

    4.27 ERISA.
      Based
      upon the Employee Retirement Income Security Act of 1974 (“ERISA”),
      and
      the regulations and published interpretations thereunder: (a) no Company nor
      any
      of its Subsidiaries has engaged in any Prohibited Transactions (as defined
      in
      Section 406 of ERISA and Section 4975 of the Internal Revenue Code of 1986,
      as
      amended (the “Code”));
      (b)
      each Company and each of its Subsidiaries has met all applicable minimum funding
      requirements under Section 302 of ERISA in respect of its plans; (c) no Company
      nor any of its Subsidiaries has any knowledge of any event or occurrence which
      would cause the Pension Benefit Guaranty Corporation to institute proceedings
      under Title IV of ERISA to terminate any employee benefit plan(s); (d) no
      Company nor any of its Subsidiaries has any fiduciary responsibility for
      investments with respect to any plan existing for the benefit of persons other
      than such Company’s or such Subsidiary’s employees; and (e) no such Company nor
      any of its Subsidiaries has withdrawn, completely or partially, from any
      multi-employer pension plan so as to incur liability under the Multiemployer
      Pension Plan Amendments Act of 1980.

     

    4.28 Oil
      and Gas Properties; Titles, Etc.
      Each
      Company has good and defensible title to the working interests and net revenue
      interests in its oil and gas leases, oil and gas fee properties, and related
      properties (“Oil
      and Gas Properties”)
      evaluated in the most recent reserve report delivered to Purchasers free and
      clear of all liens except liens permitted by Section 4.9. The Company specified
      as the owner in the aforementioned reserve report owns the net interests in
      production attributable to the Oil and Gas Properties as reflected in such
      reserve report, and the ownership of such Oil and Gas Properties shall not
      obligate such Company to bear the costs and expenses relating to the
      maintenance, development and operations of any such Oil and Gas Property in
      an
      amount in excess of the working interest of such Oil and Gas Property set forth
      in such reserve report that is not offset by a corresponding proportionate
      increase in such Company’s net revenue interest in such Oil and Gas Property.

     

    
      
        
        

      

      
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    4.29 Maintenance
      of Oil and Gas Properties.
      The Oil
      and Gas Properties of the Companies have been maintained, operated and developed
      in a good and workmanlike manner and in conformity in all material respects
      with
      all governmental requirements and in conformity in all material respects with
      the provisions of all leases, subleases or other contracts comprising a part
      of
      the Oil and Gas Properties and other contracts and agreements forming a part
      of
      the Oil and Gas Properties of the Companies. Specifically in connection with
      the
      foregoing, (i) no Oil and Gas Property of any Company is subject to having
      allowable production reduced below the full and regular allowable (including
      the
      maximum permissible tolerance) because of any overproduction (whether or not
      the
      same was permissible at the time) and (ii) none of the wells comprising a part
      of the Oil and Gas Properties of either Company is deviated from the vertical
      more than the maximum permitted by governmental requirements, and such wells
      are, in fact, bottomed under and are producing from, and the well bores are
      wholly within, the Oil and Gas Properties of the applicable Company. All
      pipelines, wells, gas processing plants, platforms and other material
      improvements, fixtures and equipment owned in whole or in part by either Company
      that are necessary to conduct normal operations are being maintained in a state
      adequate to conduct normal operations, and with respect to such of the foregoing
      which are operated by either Company, in a manner consistent with such Company’s
      past practices. 

     

    4.30 Gas
      Imbalances, Prepayments.
      On a
      net basis there are no gas imbalances, take or pay or other prepayments which
      would require either Company to deliver hydrocarbons produced from the Oil
      and
      Gas Properties at some future time without then or thereafter receiving full
      payment therefor. 

     

    4.31 Marketing
      of Production.
      Each
      Company is receiving a price for all production sold thereunder which is
      computed substantially in accordance with the terms of the relevant contract
      and
      are not having deliveries curtailed substantially below the subject Oil and
      Gas
      Property’s delivery capacity), no material agreements exist which are not
      cancelable on 60 days notice or less without penalty or detriment for the sale
      of production from such Company’s hydrocarbons (including, without limitation,
      calls on or other rights to purchase, production, whether or not the same are
      currently being exercised) that (a) pertain to the sale of production at a
      fixed
      price and (b) have a maturity or expiry date of longer than six (6) months
      from
      the date hereof. 

     

    4.32 Swap
      Agreements.
      Neither
      Company is a party to any Swap Agreement. For the purposes hereof, “Swap
      Agreement”
shall
      mean any agreement with respect to any swap, forward, future or derivative
      transaction or option or similar agreement, whether exchange traded,
      "over-the-counter" or otherwise, involving, or settled by reference to, one
      or
      more interest rates, currencies, commodities, equity or debt instruments of
      securities, or economic, financial or pricing indices or measures of economic,
      financial or pricing risk or value or any similar transaction or any combination
      of these transactions.

     

    
      
        
        

      

      
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    5. Representations
      and Warranties of Each Purchaser.
      Each
      Purchaser hereby represents and warrants, severally and not jointly, to the
      Companies as follows (such representations and warranties do not lessen or
      obviate the representations and warranties of the Companies set forth in this
      Agreement):

     

    5.1 No
      Shorting.
      Neither
      such Purchaser nor any of its affiliates or investment partners has caused
      or
      will cause, any person or entity to directly engage in “short sales” of any
      Company’s Common Stock as long as the Notes shall be outstanding.

     

    5.2 Requisite
      Power and Authority.
      Such
      Purchaser has all necessary power and authority under all applicable provisions
      of law to execute and deliver this Agreement and the Related Agreements and
      to
      carry out their provisions. All corporate action on such Purchaser’s part
      required for the lawful execution and delivery of this Agreement and the Related
      Agreements have been or will be effectively taken prior to the Closing. Upon
      their execution and delivery, this Agreement and the Related Agreements will
      be
      valid and binding obligations of such Purchaser, enforceable in accordance
      with
      their terms, except:

     

    (a) as
      limited by applicable bankruptcy, insolvency, reorganization, moratorium or
      other laws of general application affecting enforcement of creditors’ rights;
      and

     

    (b) as
      limited by general principles of equity that restrict the availability of
      equitable and legal remedies.

     

    5.3 Investment
      Representations.
      Such
      Purchaser understands that the Securities are being offered and sold pursuant
      to
      an exemption from registration contained in the Securities Act based in part
      upon such Purchaser’s representations contained in this Agreement, including,
      without limitation, that such Purchaser is an “accredited investor” within the
      meaning of Regulation D under the Securities Act. Such Purchaser confirms that
      it has received or has had full access to all the information it considers
      necessary or appropriate to make an informed investment decision with respect
      to
      the Notes and the Warrants to be purchased by it under this Agreement and the
      Warrant Shares acquired by it upon the exercise of any or all of the Warrants.
      Such Purchaser further confirms that it has had an opportunity to ask questions
      and receive answers from the Companies regarding the Companies’ and their
      Subsidiaries’ business, management and financial affairs and the terms and
      conditions of the Offering, the Notes, the Warrants and the Securities and
      to
      obtain additional information (to the extent any Company possessed such
      information or could acquire it without unreasonable effort or expense)
      necessary to verify any information furnished to such Purchaser or to which
      such
      Purchaser had access.

     

    5.4 The
      Purchaser Bears Economic Risk.
      Such
      Purchaser has substantial experience in evaluating and investing in private
      placement transactions of securities in companies similar to each Company so
      that it is capable of evaluating the merits and risks of its investment in
      each
      Company and has the capacity to protect its own interests. Such Purchaser must
      bear the economic risk of this investment until the Securities are sold pursuant
      to: (a) an effective registration statement under the Securities Act; or (b)
      an
      exemption from registration is available with respect to such sale.

     

    
      
        
        

      

      
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    5.5 Acquisition
      for Own Account.
      Such
      Purchaser is acquiring the applicable Note and Warrants and the applicable
      Warrant Shares for such Purchaser’s own account for investment only, and not as
      a nominee or agent and not with a view towards or for resale in connection
      with
      their distribution.

     

    5.6 The
      Purchaser Can Protect Its Interest.
      Such
      Purchaser represents that by reason of its, or of its management’s business and
      financial experience, such Purchaser has the capacity to evaluate the merits
      and
      risks of its investment in the applicable Note, the Warrants and the Securities
      and to protect its own interests in connection with the transactions
      contemplated in this Agreement and the Related Agreements. Further, such
      Purchaser is aware of no publication of any advertisement in connection with
      the
      transactions contemplated in the Agreement or the Related
      Agreements.

     

    5.7 Accredited
      Investor.
      Such
      Purchaser represents that it is an accredited investor within the meaning of
      Regulation D under the Securities Act.

     

    5.8 Legends.

     

    (a) The
      Warrant Shares, if issued pursuant to the ICF Warrants, if not issued by DWAC
      system (as defined in Section 9.1(b)), shall bear a legend which shall be in
      substantially the following form until such shares are covered by an effective
      registration statement filed with the SEC:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.
      THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND
      APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO ICF THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    (b) The
      ICF
      Warrants shall bear substantially the following legend:

     

    “THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR THE
      UNDERLYING SHARES OF COMMON STOCK UNDER SAID ACT AND APPLICABLE STATE SECURITIES
      LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO ICF THAT SUCH
      REGISTRATION IS NOT REQUIRED.”

     

    
      
        
        

      

      
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    (c) The
      Warrant Shares, if issued pursuant to the TNEC Warrants, if not issued by DWAC
      system, shall bear a legend which shall be in substantially the following form
      until such shares are covered by an effective registration statement filed
      with
      the SEC:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.
      THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND
      APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO TNEC THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    (d) The
      TNEC
      Warrants shall bear substantially the following legend:

     

    “THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR THE
      UNDERLYING SHARES OF COMMON STOCK UNDER SAID ACT AND APPLICABLE STATE SECURITIES
      LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO TRUE NORTH ENERGY
      CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    6. Covenants
      of the Companies.
      Each
      Company covenants and agrees with each Creditor Party as follows:

     

    6.1 Stop
      Orders.
      TNEC,
      and to the extent the ICF Common Stock is publicly traded, ICF, will advise
      the
      Agent, promptly after it receives notice of issuance by the SEC, any state
      securities commission or any other regulatory authority of any stop order or
      of
      any order preventing or suspending any offering of any securities of such
      Company, or of the suspension of the qualification of such Company’s Common
      Stock for offering or sale in any jurisdiction, or the initiation of any
      proceeding for any such purpose.

     

    6.2 Listing.
      TNEC,
      and to the extent the ICF Common Stock is publicly traded, ICF, shall promptly
      secure the listing or quotation, as applicable, of the shares of such Company’s
      Common Stock issuable upon the exercise of any of the Warrants on the Principal
      Market upon which shares of such Company’s Common Stock are listed or quoted for
      trading, as applicable (subject to official notice of issuance) and shall
      maintain such listing or quotation, as applicable, so long as any other shares
      of such Company’s Common Stock shall be so listed or quoted, as applicable.
      TNEC, and to the extent the ICF Common Stock is publicly traded, ICF, will
      maintain the listing or quotation, as applicable, of such Company’s Common Stock
      on the Principal Market, and will comply in all material respects with such
      Company’s reporting, filing and other obligations under the bylaws or rules of
      the National Association of Securities Dealers (“NASD”)
      and
      such exchanges, as applicable.

     

    
      
        
        

      

      
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    6.3 Market
      Regulations.
      Such
      Company shall notify the SEC, NASD and applicable state authorities, in
      accordance with their requirements, of the transactions contemplated by this
      Agreement, and shall take all other necessary action and proceedings as may
      be
      required and permitted by applicable law, rule and regulation, for the legal
      and
      valid issuance of the applicable Securities to each Purchaser and promptly
      provide copies thereof to such Purchaser.

     

    6.4 Disclosure
      Controls.
      To the
      extent ICF’s common stock is publicly traded, ICF shall maintain Disclosure
      Controls designed to ensure that information required to be disclosed by such
      Company in the reports that it files or submits under the Exchange Act is
      recorded, processed, summarized and reported, within the time periods specified
      in the rules and forms of the SEC.

     

    6.5 Reporting
      Requirements.
      Such
      Company will deliver, or cause to be delivered, to the Agent each of the
      following, which shall be in form and detail acceptable to the
      Agent:

     

    (a) As
      soon
      as available, and in any event within ninety (90) days after the end of each
      fiscal year of such Company, each of such Company’s and each of its
      Subsidiaries’ audited financial statements with a report of independent
      certified public accountants of recognized standing selected by such Company
      and
      acceptable to the Agent (the “Accountants”),
      which
      annual financial statements shall be without qualification and shall include
      such Company’s and each of its Subsidiaries’ balance sheet as at the end of such
      fiscal year and the related statements of each of such Company’s and each of its
      Subsidiaries’ income, retained earnings and cash flows for the fiscal year then
      ended, prepared on a consolidating and consolidated basis to include each
      Company, each Subsidiary of each Company and each of their respective
      affiliates, all in reasonable detail and prepared in accordance with GAAP,
      together with (i) if and when available, copies of any management letters
      prepared by the Accountants; and (ii) a certificate of such Company’s President,
      Chief Executive Officer or Chief Financial Officer stating that such financial
      statements have been prepared in accordance with GAAP and whether or not such
      officer has knowledge of the occurrence of any Event of Default (as defined
      in
      each Note) and, if so, stating in reasonable detail the facts with respect
      thereto;

     

    (b) As
      soon
      as available and in any event within forty five (45) days after the end of
      each
      fiscal quarter of such Company, an unaudited/internal balance sheet and
      statements of income, retained earnings and cash flows of such Company and
      each
      of its Subsidiaries as at the end of and for such quarter and for the year
      to
      date period then ended, prepared on a consolidating and consolidated basis
      to
      include each Company, each Subsidiary of each Company and each of their
      respective affiliates, in reasonable detail and stating in comparative form
      the
      figures for the corresponding date and periods in the previous year, all
      prepared in accordance with GAAP, subject to year-end adjustments and
      accompanied by a certificate of such Company’s President, Chief Executive
      Officer or Chief Financial Officer, stating (i) that such financial statements
      have been prepared in accordance with GAAP, subject to year-end audit
      adjustments, and (ii) whether or not such officer has knowledge of the
      occurrence of any Event of Default (as defined in each Note) not theretofore
      reported and remedied and, if so, stating in reasonable detail the facts with
      respect thereto;

     

    
      
        
        

      

      
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    (c) As
      soon
      as available and in any event within fifteen (15) days after the end of each
      calendar month, an unaudited/internal balance sheet and statements of income,
      retained earnings and cash flows of such Company and of each its Subsidiaries
      as
      at the end of and for such month and for the year to date period then ended,
      prepared on a consolidating and consolidated basis to include each Company,
      each
      Subsidiary of each Company and each of their respective affiliates, in
      reasonable detail and stating in comparative form the figures for the
      corresponding date and periods in the previous year, all prepared in accordance
      with GAAP, subject to year-end adjustments and accompanied by a certificate
      of
      such Company’s President, Chief Executive Officer or Chief Financial Officer,
      stating (i) that such financial statements have been prepared in accordance
      with
      GAAP, subject to year-end audit adjustments, and (ii) whether or not such
      officer has knowledge of the occurrence of any Event of Default (as defined
      in
      each Note) not theretofore reported and remedied and, if so, stating in
      reasonable detail the facts with respect thereto; and

     

    (d) TNEC,
      and
      to the extent the ICF Common Stock is publicly traded, ICF shall timely file
      with the SEC all reports required to be filed pursuant to the Exchange Act
      and
      refrain from terminating its status as an issuer required by the Exchange Act
      to
      file reports thereunder even if the Exchange Act or the rules or regulations
      thereunder would permit such termination. Promptly after (i) the filing thereof,
      copies of the such Company’s most recent registration statements and annual,
      quarterly, monthly or other regular reports which such Company files with the
      Securities and Exchange Commission (the “SEC”),
      and
      (ii) the issuance thereof, copies of such financial statements, reports and
      proxy statements as such Company shall send to its stockholders;
      and

     

    (e) Such
      Company shall deliver, or cause the applicable Subsidiary of such Company to
      deliver, such other information as the Agent or any Purchaser shall reasonably
      request.

     

    6.6 Use
      of
      Funds.
      The
      Companies shall use the proceeds of the sale of the Notes and the Warrants
      solely for the following: (a) for the purpose of acquiring the oil and gas
      properties described in the Acquisition Agreement, (b) to fund the payments
      and
      each Creditor Party’s legal and due diligence expenses, each as set forth in
      Section 2 hereof and (c) for general working capital purposes.

     

    6.7 Access
      to Facilities.
      Each
      Company and each of its Subsidiaries will permit any representatives designated
      by the Agent (or any successor of the Agent), upon reasonable notice and during
      normal business hours, at such person’s expense and accompanied by a
      representative of such Company or any Subsidiary (provided that no such prior
      notice shall be required to be given and no such representative of such Company
      or any Subsidiary shall be required to accompany the Agent in the event the
      Agent believes such access is necessary to preserve or protect the Collateral
      (as defined in any Security Document) or following the occurrence and during
      the
      continuance of an Event of Default (as defined in each Note)), to:

     

    (a) visit
      and
      inspect any of the properties of such Company or any of its
      Subsidiaries;

     

    
      
        
        

      

      
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    (b) examine
      the corporate and financial records of such Company or any of its Subsidiaries
      (unless such examination is not permitted by federal, state or local law or
      by
      contract) and make copies thereof or extracts therefrom; and

     

    (c) discuss
      the affairs, finances and accounts of such Company or any of its Subsidiaries
      with the directors, officers and independent accountants of such Company or
      any
      of its Subsidiaries.

     

    Notwithstanding
      the foregoing, no Company nor any of its Subsidiaries will provide any material,
      non-public information to any Creditor Party unless such Creditor Party signs
      a
      confidentiality agreement and otherwise complies with Regulation FD, under
      the
      federal securities laws.

     

    6.8 Taxes.
      Each
      Company and each of its Subsidiaries will promptly pay and discharge, or cause
      to be paid and discharged, when due and payable, all taxes, assessments and
      governmental charges or levies imposed upon the income, profits, property or
      business of such Company and its Subsidiaries; provided, however, that any
      such
      tax, assessment, charge or levy need not be paid currently if (a) the validity
      thereof shall currently and diligently be contested in good faith by appropriate
      proceedings, (b) such tax, assessment, charge or levy shall have no effect
      on
      the lien priority of the Agent in any property of such Company or any of its
      Subsidiaries and (c) if such Company and/or such Subsidiary shall have set
      aside
      on its books adequate reserves with respect thereto in accordance with GAAP;
      and
      provided, further, that such Company and its Subsidiaries will pay all such
      taxes, assessments, charges or levies forthwith upon the commencement of
      proceedings to foreclose any lien which may have attached as security
      therefor.

     

    6.9 Insurance.
      

     

    (a) Each
      Company shall bear the full risk of loss from any loss of any nature whatsoever
      with respect to the Collateral (as defined in each of the Security Documents)
      and such Company and each of its Subsidiaries will, jointly and severally,
      bear
      the full risk of loss from any loss of any nature whatsoever with respect to
      the
      assets pledged to the Agent, for the ratable benefit of Purchasers, as security
      for the Obligations (as defined in each of the Security Documents). Furthermore,
      such Company will insure or cause the Collateral to be insured in the Agent’s
      name as an additional insured and lender loss payee, with an appropriate loss
      payable endorsement in form and substance satisfactory to the Agent, against
      loss or damage by fire, flood, sprinkler leakage, theft, burglary, pilferage,
      loss in transit and other risks customarily insured against by companies in
      similar business similarly situated as such Company and its Subsidiaries
      including but not limited to workers compensation, public and product liability
      and business interruption, and such other hazards as the Agent shall specify
      in
      amounts and under insurance policies and bonds by insurers acceptable to the
      Agent and all premiums thereon shall be paid by such Company and the policies
      delivered to the Agent. If such Company or any of its Subsidiaries fails to
      obtain the insurance and in such amounts of coverage as otherwise required
      pursuant to this Section 6.9, the Agent may procure such insurance and the
      cost
      thereof shall be promptly reimbursed by such Company and shall constitute
      Obligations;

     

    
      
        
        

      

      
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    (b) Each
      Company’s insurance coverage shall not be impaired or invalidated by any act or
      neglect of such Company or any of its Subsidiaries and the insurer will provide
      the Agent with no less than thirty (30) days notice prior of cancellation;
      and

     

    (c) The
      Agent, in connection with its status as a lender loss payee, will be assigned
      at
      all times to a first lien position until such time as all the Obligations have
      been indefeasibly satisfied in full.

     

    6.10 Intellectual
      Property.
      Each
      Company and each of its Subsidiaries shall maintain in full force and effect
      its
      existence, rights and franchises and all licenses and other rights to use
      Intellectual Property owned or possessed by it and reasonably deemed to be
      necessary to the conduct of its business.

     

    6.11 Properties.
      Each
      Company and each of its Subsidiaries will keep its properties in good repair,
      working order and condition, reasonable wear and tear excepted, and from time
      to
      time make all needful and proper repairs, renewals, replacements, additions
      and
      improvements thereto; and each Company and each of its Subsidiaries will at
      all
      times comply with each provision of all leases to which it is a party or under
      which it occupies property if the breach of such provision could, either
      individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    6.12 Confidentiality.
      No
      Company will, nor will it permit any of its Subsidiaries to, disclose, and
      will
      not include in any public announcement, the name of any Creditor Party, unless
      expressly agreed to by such Creditor Party or unless and until such disclosure
      is required by law or applicable regulation, and then only to the extent of
      such
      requirement. Notwithstanding the foregoing, each Company may disclose any
      Creditor Party’s identity and the terms of this Agreement and the Related
      Agreements to its current and prospective debt and equity financing sources.
      Each Creditor Party shall be permitted to discuss, distribute or otherwise
      transfer any non-public information of either Company and its Subsidiaries
      in
      such Creditor Party’s possession now or in the future to potential or actual (a)
      direct or indirect investors in such Creditor Party and (b) third party
      assignees or transferees of all or a portion of the obligations of such Company
      and/or any of its Subsidiaries hereunder and under the Related Agreements,
      to
      the extent that such investor or assignee or transferee enters into a
      confidentiality agreement for the benefit of such Company in such form as may
      be
      necessary to addresses such Company’s Regulation FD requirements.

     

    
      
        
        

      

      
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    6.13 Required
      Approvals.
      (a)
      Until
      such time as all Obligations (as defined in any Security Document) shall have
      been indefeasibly paid in full, no Company, without the prior written consent
      of
      the Agent, shall, or shall permit any of its Subsidiaries to:

     

    (i) (A)
      directly or indirectly declare or pay any dividends, other than dividends paid
      to the Company or any of its wholly-owned Subsidiaries, provided, however,
      so
      long as no Event of Default (as defined in each Note) shall have occurred and
      be
      continuing, ICF shall not require the Agent’s prior written consent to pay any
      dividends to TNEC and/or any Purchaser owning ICF Common Stock, (B) issue any
      preferred stock that is mandatorily redeemable prior to the one year anniversary
      of the Maturity Date (as defined in each Note) or (C) redeem any of its
      preferred stock or other equity interests;

     

    (ii) liquidate,
      dissolve or effect a material reorganization (it being understood that in no
      event shall any Company or any of its Subsidiaries dissolve, liquidate or merge
      with any other person or entity (unless, in the case of such a merger, any
      Company or, in the case of merger not involving any Company, such Subsidiary,
      as
      applicable, is the surviving entity));

     

    (iii) become
      subject to (including, without limitation, by way of amendment to or
      modification of) any agreement or instrument which by its terms would (under
      any
      circumstances) restrict any Company’s or any of its Subsidiaries, right to
      perform the provisions of this Agreement, any Related Agreement or any of the
      agreements contemplated hereby or thereby;

     

    (iv) materially
      alter or change the scope of the business of any Company and its Subsidiaries
      taken as a whole; or

     

    (v) (A)
      create, incur, assume or suffer to exist any indebtedness (exclusive of trade
      debt and debt incurred to finance the purchase of equipment (not in excess
      of
      five percent (5%) of the fair market value of any Company’s and its
      Subsidiaries’ assets)) whether secured or unsecured other than (1) any Company’s
      obligations owed to the Creditor Parties, (2) indebtedness set forth on Schedule
      6.13 attached hereto and made a part hereof and any refinancings or replacements
      thereof on terms no less favorable to the Purchasers than the indebtedness
      being
      refinanced or replaced, and (3) any indebtedness incurred in connection with
      the
      purchase of assets (other than equipment) in the ordinary course of business,
      or
      any refinancings or replacements thereof on terms no less favorable to the
      Purchasers than the indebtedness being refinanced or replaced, so long as any
      lien relating thereto shall only encumber the fixed assets so purchased and
      no
      other assets of any Company or any of its Subsidiaries; (B) cancel any
      indebtedness owing to it in excess of $50,000 in the aggregate during any 12
      month period; (C) assume, guarantee, endorse or otherwise become directly or
      contingently liable in connection with any obligations of any other person
      or
      entity, except the endorsement of negotiable instruments by any Company or
      any
      Subsidiary thereof for deposit or collection or similar transactions in the
      ordinary course of business or guarantees of indebtedness otherwise permitted
      to
      be outstanding pursuant to this clause (v).

     

    
      
        
        

      

      
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    (b) No
      Company, without the prior written consent of the Agent, shall, nor shall any
      Company permit any of its Subsidiaries to create or acquire any Subsidiary
      after
      the date hereof unless (i) such Subsidiary is a wholly-owned Subsidiary of
      any
      Company and (ii) such Subsidiary becomes a party to the Master Security
      Agreement and the Stock Pledge Agreement (either by executing a new agreement,
      a
      counterpart of an existing agreement or an assumption or joinder agreement
      in
      respect of an existing agreement) and executes and delivers to the Agent a
      guaranty in form and substance acceptable to Agent (which such guaranty shall
      be
      deemed to be a “Related
      Agreement”
      hereunder) and, to the extent required by the Agent, satisfies each condition
      of
      this Agreement and the Related Agreements as if such Subsidiary were a
      Subsidiary on the Closing Date.

     

    6.14 Reissuance
      of Securities.
      Each
      Company agrees to reissue the applicable Warrant or Warrant Shares, as
      applicable, without the legends set forth in Section 5.8 above at such time
      as:

     

    (a) the
      holder thereof is permitted to dispose of such Securities pursuant to Rule
      144(k) under the Securities Act; or

     

    (b) upon
      resale subject to an effective registration statement after such Securities
      are
      registered under the Securities Act.

     

    Each
      Company agrees to cooperate with the Purchasers in connection with all resales
      pursuant to Rule 144(d) and Rule 144(k) and provide legal opinions necessary
      to
      allow such resales provided the applicable Company and its counsel receive
      reasonably requested representations from the Purchasers and broker, if
      any.

     

    6.15 Opinion.
      On the
      Closing Date, each Company will deliver to the Creditor Parties such opinions
      of
      counsel acceptable to the Agent from such Company’s external legal counsel,
      including, without limitation, an opinion of counsel substantially in the form
      attached hereto as Exhibit C. Each Company will provide, at each Company’s joint
      and several expense, such other legal opinions in the future as are deemed
      reasonably necessary by the Agent (and acceptable to the Agent) in connection
      with the exercise of any of the Warrants.

     

    6.16 Margin
      Stock.
      No
      Company will permit any of the proceeds of the Notes or the Warrants to be
      used
      directly or indirectly to “purchase” or “carry” “margin stock” or to repay
      indebtedness incurred to “purchase” or “carry” “margin stock” within the
      respective meanings of each of the quoted terms under Regulation U of the Board
      of Governors of the Federal Reserve System as now and from time to time
      hereafter in effect.

     

    6.17 FIRPTA.
      No
      Company or any of its Subsidiaries, is a “United States real property holding
      corporation” as such term is defined in Section 897(c)(2) of the Code and
      Treasury Regulation Section 1.897-2 promulgated thereunder and no Company or
      any
      of its Subsidiaries shall at any time take any action or otherwise acquire
      any
      interest in any asset or property to the extent the effect of which shall cause
      such Company and/or such Subsidiary, as the case may be, to be a “United States
      real property holding corporation” as such term is defined in Section 897(c)(2)
      of the Code and Treasury Regulation Section 1.897-2 promulgated
      thereunder.

     

    
      
        
        

      

      
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    6.18 Financing
      Right of First Refusal.

     

    (a) Until
      such time as all Obligations (as defined in any Security Documents) shall have
      been indefeasibly paid in full, each Company hereby grants to the Purchasers
      a
      right of first refusal to provide any Additional Financing (as hereinafter
      defined in this clause (a)) to be issued by such Company and/or any of its
      Subsidiaries, subject to the following terms and conditions. From and after
      the
      date hereof, prior to the incurrence of any additional indebtedness and/or
      the
      sale or issuance of any equity interests of any Company or any of its
      Subsidiaries other than any indebtedness incurred in connection with the
      transactions contemplated by that certain Purchase and Sale Agreement to be
      entered into on or about October 1, 2007 among Angel LLC, CN Energy LLC, Swason
      Energy Company, LLC, Fuel Exploration LLC, MHBR Energy, LLC, Rocky Mountain
      Rig
      LLC and TNEC (an “Additional
      Financing”),
      the
      applicable Company and/or any Subsidiary of such Company, as the case may be,
      shall notify the Agent of its intention to enter into such Additional Financing.
      In connection therewith, the applicable Company and/or the applicable Subsidiary
      thereof shall submit a fully executed term sheet (a “Proposed
      Term Sheet”)
      to the
      Agent setting forth the terms, conditions and pricing of any such Additional
      Financing (such financing to be negotiated on “arm’s length” terms and the terms
      thereof to be negotiated in good faith) proposed to be entered into by the
      applicable Company and/or such Subsidiary. The Agent shall have the right,
      but
      not the obligation, to deliver its own proposed term sheet (the “Purchaser
      Term Sheet”)
      setting forth the terms and conditions upon which the Purchasers would be
      willing to provide such Additional Financing to the applicable Company and/or
      such Subsidiary. The Purchaser Term Sheet shall contain terms no less favorable
      to the applicable Company and/or such Subsidiary than those outlined in Proposed
      Term Sheet. The Agent shall deliver such Purchaser Term Sheet within ten (10)
      business days of receipt of each such Proposed Term Sheet. If the provisions
      of
      the Purchaser Term Sheet are at least as favorable to the applicable Company
      and/or such Subsidiary, as the case may be, as the provisions of the Proposed
      Term Sheet, the applicable Company and/or such Subsidiary shall enter into
      and
      consummate the Additional Financing transaction outlined in the Purchaser Term
      Sheet.

     

    (b) Until
      such time as all Obligations (as defined in any Security Documents) shall have
      been indefeasibly paid in full, no Company will, nor will it permit its
      Subsidiaries to, agree, directly or indirectly, to any restriction with any
      person or entity which limits the ability of the Purchasers to consummate an
      Additional Financing with any Company or any of its Subsidiaries.

     

    6.19 Authorization
      and Reservation of Shares.
      Each
      Company shall at all times have authorized and reserved a sufficient number
      of
      shares of such Company’s Common Stock to provide for the exercise of any or all
      of the Warrants issued by such Company to the Purchasers.

     

    
      
        
        

      

      
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    6.20 Summaries;
      Reports.
      ICF
      shall deliver to the Agent, between the 22nd
      and last
      day of each month, summaries of its lease operating expenses and production
      relating to its oil and gas properties as and for the immediately preceding
      month. ICF shall deliver to the Agent, between the 22nd
      and last
      day of each month, or at such other time as the Agent shall request, an economic
      reserve report prepared by a registered professional engineer acceptable to
      the
      Agent.

     

    6.21 Lockbox
      Accounts.
      ICF
      will maintain one or more lockbox accounts with one or more banks acceptable
      to
      the Agent into which the account debtors obligated in respect of the Collateral
      shall be directed to remit all payments in respect thereof.

     

    6.22 Prohibitions
      of Payment Under Subordinated Debt Documentation.
      Neither
      Company nor any of their Subsidiaries shall, without the prior written consent
      of the Agent, make any payments in respect of the indebtedness evidenced by
      the
      Subordinated Debt Documentation unless such payments are expressly permitted
      by
      the applicable Subordination Agreement. For the purposes hereof, “Subordination
      Agreement”
shall
      mean those subordination agreements listed on Schedule 6.22 hereof, as each
      such
      agreement may be amended, modified and supplemented from time to time. The
      provisions of this Section 6.22 shall not be subject to any cure or grace period
      notwithstanding any term or provision of this Agreement or any Related Agreement
      to the contrary.

     

    6.23 Financial
      Statements; Other Information.
      The
      Companies will furnish to the Agent: 

     

    (a) Notice
      of Sales of Oil and Gas Properties.
      In the
      event any Company intends to sell, transfer, assign or otherwise dispose of
      any
      Oil or Gas Properties, prior written notice of such disposition, the price
      thereof and the anticipated date of closing and any other details thereof
      requested by the Agent. 

     

    (b) Production
      Report and Lease Operating Statements.
      Within
      60 days after the end of each fiscal quarter, a report setting forth, for each
      calendar month during the then current fiscal year to date, the volume of sold
      production and sales attributable to production (and the prices at which such
      sales were made and the revenues derived from such sales) for each such calendar
      month from the Oil and Gas Properties, and setting forth the related ad valorem,
      severance and production taxes and lease operating expenses attributable thereto
      and incurred for each such calendar month. 

     

    6.24 Operation
      and Maintenance of Oil and Gas Properties.
      Each
      Company, at its own expense, will: 

     

    (a) operate
      its Oil and Gas Properties or cause such Oil and Gas Properties to be operated
      in a careful and efficient manner in accordance with the practices of the
      industry and in material compliance with all applicable contracts and agreements
      and in material compliance with all governmental requirements, including,
      without limitation, applicable pro ration requirements and environmental laws,
      and all applicable laws, rules and regulations of every other governmental
      authority from time to time constituted to regulate the development and
      operation of its Oil and Gas Properties and the production and sale of
      hydrocarbons and other minerals therefrom. 

     

    
      
        
        

      

      
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    (b) promptly
      pay and discharge, or make reasonable and customary efforts to cause to be
      paid
      and discharged in accordance with prudent operator standards, all delay rentals,
      royalties, expenses and indebtedness accruing under the leases or other
      agreements affecting or pertaining to its Oil and Gas Properties and will do
      all
      other things necessary to keep unimpaired their rights with respect thereto
      and
      prevent any forfeiture thereof or default thereunder. 

     

    (c) promptly
      perform or make reasonable and customary efforts to cause to be performed,
      in
      accordance with industry standards, the obligations required by each and all
      of
      the assignments, deeds, leases, sub-leases, contracts and agreements affecting
      its interests in its Oil and Gas Properties and other material Properties.
      

     

    (d) operate
      its Oil and Gas Properties or cause or make reasonable and customary efforts
      to
      cause such Oil and Gas Properties to be operated in accordance with the
      practices of the industry and in material compliance with all applicable
      contracts and agreements. 

     

    (e) to
      the
      extent the Company is not the operator of any Property, such Company shall
      use
      reasonable efforts to cause the operator to comply with this Section 6.24.
      

     

    6.25 Reserve
      Reports.

     

    (a) On
      or
      before March 1st and September 1st of each year, commencing January 1, 2008,
      the
      Companies shall furnish to the Agent a reserve report evaluating the Oil and
      Gas
      Properties of the Companies as of the immediately preceding January 1 or July
      1,
      as applicable. The reserve report as of January 1 of each year shall be prepared
      by one or more approved petroleum engineers, and the July 1 reserve report
      of
      each year shall be prepared by or under the supervision of the chief engineer
      of
      the Companies who shall certify such reserve report to be true and accurate
      and
      to have been prepared in accordance with the procedures used in the immediately
      preceding January 1 reserve report. 

     

    (b) With
      the
      delivery of each reserve report, the Companies shall provide to the Agent a
      certificate certifying that in all material respects: (i) the information
      contained in the reserve report and any other information delivered in
      connection therewith is true and correct, (ii) the Companies have good and
      defensible title to the working interests and net revenue interests in the
      Oil
      and Gas Properties evaluated in such reserve report and such Oil and Gas
      Properties are free of all liens except for liens permitted by Section 4.9,
      (iii) except as set forth on an exhibit to the certificate, on a net basis
      there
      are no gas imbalances, take or pay or other prepayments with respect to its
      Oil
      and Gas Properties evaluated in such reserve report which would require either
      Company to deliver hydrocarbons either generally or produced from such Oil
      and
      Gas Properties at some future time without then or thereafter receiving full
      payment therefor, (iv) none of their Oil and Gas Properties have been sold
      since
      the date of the last certificate, (v) attached to the certificate is a list
      of
      all marketing agreements entered into subsequent to the later of the date hereof
      or the most recently delivered reserve report, and (vi) attached thereto is
      a
      schedule of the Oil and Gas Properties evaluated by such reserve report.

     

    
      
        
        

      

      
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    6.26 Marketing
      Activities.
      The
      Companies will not engage in marketing activities for any hydrocarbons or enter
      into any contracts related thereto other than (a) contracts for the sale of
      hydrocarbons scheduled or reasonably estimated to be produced from their proved
      Oil and Gas Properties during the period of such contract, (b) contracts for
      the
      sale of hydrocarbons scheduled or reasonably estimated to be produced from
      proved Oil and Gas Properties of third parties during the period of such
      contract associated with the Oil and Gas Properties of the Companies that the
      Companies have the right to market pursuant to joint operating agreements,
      unitization agreements or other similar contracts that are usual and customary
      in the oil and gas business and (b) other contracts for the purchase and/or
      sale
      of hydrocarbons of third parties (i) which have generally offsetting provisions
      (i.e. corresponding pricing mechanics, delivery dates and points and volumes)
      such that no “position” is taken and (ii) for which appropriate credit support
      has been taken to alleviate the material credit risks of the counterparty
      thereto. 

     

    6.27 Sale
      of Oil and Gas Properties.
      The
      Companies will not sell, assign, farm-out, convey or otherwise transfer any
      Oil
      and Gas Property or related equipment except for (a) the sale of hydrocarbons
      in
      the ordinary course of business; (b) farmouts in the ordinary course of business
      of undeveloped acreage or undrilled depths and assignments in connection with
      such farmouts; (c) the sale or transfer of equipment that is no longer necessary
      for the business of the Companies or is replaced by equipment of at least
      comparable value and use; (d) the sale or other disposition of any Oil and
      Gas
      Property or any interest therein; provided that (i) 100% of the consideration
      received in respect of such sale or other disposition shall be cash, (ii) the
      consideration received in respect of such sale or other disposition shall be
      equal to or greater than the fair market value of the Oil and Gas Property
      or
      interest therein, and (iii) the Companies will apply the net proceeds from
      any
      such sale to prepay the Obligations to the extent of such net
      proceeds.

     

    6.28 Gas
      Imbalances, Take-or-Pay or Other Prepayments.
      The
      Companies will not allow gas imbalances, take-or-pay or other prepayments with
      respect to the Oil and Gas Properties that would require either Company to
      deliver hydrocarbons at some future time without then or thereafter receiving
      full payment therefor. 

     

    6.29 Swap
      Agreements.
      The
      Companies will not enter into any Swap Agreements.

     

    6.30 Investor
      Relations/Public Relations.
      Each
      Company hereby agrees to incorporate into its annual budget an amount of funds
      necessary to maintain a comprehensive investor relations and public relations
      program (an “IR/PR
      Program”),
      which
      IR/PR Program shall incorporate elements customarily utilized by companies
      of
      similar size and in a similar industry as such Company and its
      Subsidiaries.

     

    
      
        
        

      

      
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    6.31 Board
      Observation Rights.
      Until
      such time as all Obligations (as defined in each Security Document) for
      indebtedness have been indefeasibly paid in full, the Creditor Parties will
      be
      entitled to the following board observation rights (“Board
      Observation Rights”):
      ICF
      shall permit one representative on behalf of the Creditor Parties to attend
      all
      meetings of the board of directors of ICF (the “Board
      of Directors”)
      in a
      non-voting observer capacity, which observation right shall include the ability
      to observe discussions of the Board of Directors, and shall provide such
      representative with copies of all notices, minutes, written consents, and other
      materials that it provides to members of the Board of Directors, at the time
      it
      provides them to such members. The observation right may be exercised in person
      or via telephone or videophone participation. Each Creditor Party agrees, on
      behalf of itself and any representative exercising the observation rights set
      forth herein, that so long as it shall exercise its observation right (a) it
      shall hold in strict confidence pursuant to a confidentiality and non-disclosure
      agreement (in form and substance satisfactory to such Creditor Party) all
      information and materials that it may receive or be given access to in
      connection with meetings of the Board of Directors and to act in a fiduciary
      manner with respect to all information so provided (provided that this shall
      not
      limit its ability to discuss such matters with its officers, directors or legal
      counsel, as necessary), and (b) the Board of Directors may withhold from it
      certain information or material furnished or made available to the Board of
      Directors or exclude it from certain confidential “closed sessions” of the Board
      of Directors if the furnishing or availability of such information or material
      or its presence at such “closed sessions” would jeopardize ICF’s attorney-client
      privilege or if the Board of Directors otherwise reasonably so requires. The
      Board Observation Rights set forth in this Section 6.31 shall automatically
      terminate and be of no further force or effect upon the indefeasibly payment
      in
      full of all Obligations (as defined in each Security Document) for
      indebtedness.

     

    7. Covenants
      of the Creditor Parties.
      Each
      Creditor Party covenants and agrees with the Companies as follows:

     

    7.1 Confidentiality.
      No
      Creditor Party will disclose, nor will it include in any public announcement,
      the name of any Company, unless expressly agreed to by such Company or unless
      and until such disclosure is required by law or applicable regulation, and
      then
      only to the extent of such requirement.

     

    7.2 Non
      Public Information.
      No
      Purchaser will effect any sales in the shares of Common Stock while in
      possession of material, non-public information regarding any Company if such
      sales would violate applicable securities law.

     

    7.3 Limitation
      on Acquisition of Common Stock of any Company.
      Notwithstanding anything to the contrary contained in this Agreement, any
      Related Agreement or any document, instrument or agreement entered into in
      connection with any other transactions between any Purchaser and any Company,
      such Purchaser may not acquire stock in any Company (including, without
      limitation, pursuant to a contract to purchase, by exercising an option or
      warrant, by converting any other security or instrument, by acquiring or
      exercising any other right to acquire, shares of stock or other security
      convertible into shares of stock in any Company, or otherwise, and such
      contracts, options, warrants, conversion or other rights shall not be
      enforceable or exercisable) to the extent such stock acquisition would cause
      any
      interest (including any original issue discount) payable by any Company to
      such
      Purchaser not to qualify as “portfolio interest” within the meaning of Section
      881(c)(2) of the Code, by reason of Section 881(c)(3) of the Code, taking into
      account the constructive ownership rules under Section 871(h)(3)(C) of the
      Code
      (the “Stock
      Acquisition Limitation”).
      The
      Stock Acquisition Limitation shall automatically become null and void without
      any notice to any Company upon the earlier to occur of either (a) the delivery
      of a Notice of Redemption (as defined in each Note) or (b) the existence of
      an
      Event of Default (as defined in each Note).

     

    
      
        
        

      

      
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    7.4 Release
      of Colorado and Alaska Collateral.
      If
      twelve (12) months after the date hereof, the Companies are current in their
      payments under the Notes and no Event of Default (as defined in each Note)
      has
      occurred and is continuing, then the Agent shall release, or cause the release
      of, the liens and security interests created solely under the Deeds of Trust
      on
      the Alaska Property and the Colorado Property and any other documents entered
      into in connection with such Deeds of Trust and shall execute and deliver all
      agreements and other documents reasonably requested by the Companies to effect
      and evidence such release. For purposes of clarification, the foregoing lien
      release shall not be deemed to release in any manner whatsoever, and the Agent
      hereby retains all such liens and security interests, on all assets of the
      Companies other than the Alaska Property and the Colorado Property.

     

    8. Covenants
      of the Companies and the Creditor Parties Regarding
      Indemnification.

     

    8.1 Company
      Indemnification.
      Each
      Company agrees to indemnify, hold harmless, reimburse and defend, on a joint
      and
      several basis, each Creditor Party, each of such Creditor Party’s officers,
      directors, agents, affiliates, control persons, and principal shareholders,
      against all claims, costs, expenses, liabilities, obligations, losses or damages
      (including reasonable legal fees) of any nature, incurred by or imposed upon
      such Creditor Party which result, arise out of or are based upon: (a) any
      misrepresentation by any Company or any of its Subsidiaries or breach of any
      warranty by any Company or any of its Subsidiaries in this Agreement, any other
      Related Agreement or in any exhibits or schedules attached hereto or thereto;
      or
      (b) any breach or default in performance by any Company or any of its
      Subsidiaries of any covenant or undertaking to be performed by any Company
      or
      any of its Subsidiaries hereunder, under any other Related Agreement or any
      other agreement entered into by any Company and/or any of its Subsidiaries
      and
      such Creditor Party relating hereto or thereto; or (c) (i) unless such violation
      is caused by the gross negligence or willful misconduct of such Creditor Party,
      the violation of any local, state or federal law, rule or regulation pertaining
      to environmental regulation, contamination or cleanup (collectively,
“Environmental
      Laws”),
      including without limitation, the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980 (42 U.S.C. §9601 et seq. and 40 CFR
§302.1 et seq.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C.
      §6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. §1251 et
      seq., and 40 CFR §116.1 et seq.), the Hazardous Materials Transportation Act (49
      U.S.C. §1801 et seq.) and the regulations promulgated pursuant to said laws, all
      as amended and relating to or affecting any Company and/or any Subsidiary of
      any
      Company and any Company’s and/or any Company’s Subsidiary’s properties, whether
      or not caused by or within the control of such Creditor Party and/or (ii) unless
      such presence, release or threat of release is caused by the gross negligence
      or
      willful misconduct of such Creditor Party, the presence, release or threat
      of
      release of any Hazardous Materials (including, without limitation, asbestos,
      polychlorinated biphenyls, petroleum products, flammable explosives, radioactive
      materials, infectious substances or raw materials which include hazardous
      constituents) on, in, under or affecting all or any portion of any property
      of
      any Company and/or any Subsidiary of any Company or any surrounding areas,
      in
      all other cases, regardless of whether or not caused by or within the control
      of
      such Creditor Party.

     

    
      
        
        

      

      
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    8.2 Creditor
      Party Indemnification.
      Each
      Creditor Party agrees to indemnify, hold harmless, reimburse and defend each
      Company and each of such Company’s officers, directors, agents, affiliates,
      control persons and principal shareholders, at all times against any claims,
      costs, expenses, liabilities, obligations, losses or damages (including
      reasonable legal fees) of any nature, incurred by or imposed upon such Company
      which result, arise out of or are based upon: (i) any misrepresentation by
      such
      Creditor Party or breach of any warranty by such Creditor Party in this
      Agreement or in any exhibits or schedules attached hereto or any Related
      Agreement; or (ii) any breach or default in performance by such Creditor Party
      of any covenant or undertaking to be performed by such Creditor Party hereunder,
      or any other agreement entered into by such Company and such Creditor Party
      relating hereto.

     

    9. Exercise
      of the Warrants.

     

    9.1 Mechanics
      of Exercise.

     

    (a) Provided
      any Purchaser has notified the applicable Company of such Purchaser’s intention
      to sell the Warrant Shares and the Warrant Shares are included in an effective
      registration statement or are otherwise exempt from registration when sold:
      (i)
      upon the exercise of the respective Warrant or part thereof, such Company shall,
      at its own cost and expense, take all necessary action (including the issuance
      of an opinion of counsel reasonably acceptable to such Purchaser following
      a
      request by such Purchaser) to assure that such Company’s transfer agent shall
      issue shares of such Company Common Stock in the name of such Purchaser (or
      its
      nominee) or such other persons as designated by such Purchaser in accordance
      with Section 9.1(b) hereof and in such denominations to be specified
      representing the number of Warrant Shares issuable upon such exercise; and
      (ii) such Company warrants that no instructions other than these
      instructions have been or will be given to the transfer agent of such Company
      Common Stock and that after the Effectiveness Date (as defined in the
      Registration Rights Agreement) the Warrant Shares issued will be freely
      transferable subject to the prospectus delivery requirements of the Securities
      Act and the provisions of this Agreement, and will not contain a legend
      restricting the resale or transferability of the Warrant Shares.

     

    (b) Each
      Purchaser will give notice of its decision to exercise its right to exercise
      of
      the Warrants or part thereof by telecopying or otherwise delivering an executed
      and completed notice of the number of shares to be subscribed to the applicable
      Company (the “Form
      of Subscription”).
      No
      Purchaser will be required to surrender the respective Warrant(s) until such
      Purchaser receives a credit to the account of such Purchaser’s prime broker
      through the DWAC system (as defined below), representing the Warrant Shares
      or
      until the respective Warrant(s) has been fully exercised. Each date on which
      a
      Form of Subscription is telecopied or delivered to the applicable Company in
      accordance with the provisions hereof shall be deemed an “Exercise
      Date”.
      Pursuant to the terms of the Form of Subscription, the applicable Company will
      issue instructions to the transfer agent accompanied by an opinion of counsel
      within one (1) business day of the date of the delivery to the applicable
      Company of the Form of Subscription and shall cause the transfer agent to
      transmit the certificates representing the Warrant Shares set forth in the
      applicable Form of Subscription to the Holder by crediting the account of the
      applicable Purchaser’s prime broker with the Depository Trust Company
      (“DTC”)
      through its Deposit Withdrawal Agent Commission (“DWAC”)
      system
      within four (4) business days after receipt by the applicable Company of the
      Form of Subscription (the “Delivery
      Date”).

     

    
      
        
        

      

      
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    (c) Each
      Company understands that a delay in the delivery of the Warrant Shares in the
      form required pursuant to Section 9 hereof beyond the Delivery Date could result
      in economic loss to the applicable Purchaser. In the event that the applicable
      Company fails to direct its transfer agent to deliver the Warrant Shares to
      such
      Purchaser via the DWAC system within the time frame set forth in Section 9.1(b)
      above and the Warrant Shares are not delivered to such Purchaser by the Delivery
      Date, as compensation to such Purchaser for such loss, each Company jointly
      and
      severally agrees to pay late payments to such Purchaser for late issuance of
      the
      Warrant Shares in the form required pursuant to Section 9 hereof upon exercise
      of either or both of the Warrants in the amount equal to the greater of: (i)
      $500 per business day after the Delivery Date; or (ii) such Purchaser’s actual
      damages from such delayed delivery. Each Company shall jointly and severally
      pay
      any payments incurred under this Section in immediately available funds upon
      demand and, in the case of actual damages, accompanied by reasonable
      documentation of the amount of such damages. Such documentation shall show
      the
      number of shares of Common Stock such Purchaser is forced to purchase (in an
      open market transaction) which such Purchaser anticipated receiving upon such
      exercise, and shall be calculated as the amount by which (x) such Purchaser’s
      total purchase price (including customary brokerage commissions, if any) for
      the
      shares of Common Stock so purchased exceeds (y) the aggregate amount of the
      Exercise Price for the Warrants, for which such Form of Subscription was not
      timely honored.

     

    10. Registration
      Rights.

     

    10.1 Registration
      Rights Granted.
      Each
      Company hereby grants registration rights to each Purchaser pursuant to the
      respective Registration Rights Agreement.

     

    10.2 Offering
      Restrictions.
      Except
      as previously disclosed in, in the case of TNEC, the SEC Reports or in the
      Exchange Act Filings, or, in the case of each Company, stock or stock options
      granted to employees or directors of any Company (these exceptions hereinafter
      referred to as the “Excepted
      Issuances”),
      no
      Company or any of its Subsidiaries will, prior to the full exercise by the
      Purchasers of the Warrants, (a) enter into any equity line of credit agreement
      or similar agreement or (b) issue, or enter into any agreement to issue, any
      securities with a variable/floating conversion and/or pricing feature which
      are
      or could be (by conversion or registration) free-trading securities (i.e. common
      stock subject to a registration statement).

     

    11. Miscellaneous.

     

    11.1 Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a) THIS
      AGREEMENT AND THE OTHER RELATED AGREEMENTS SHALL BE GOVERNED BY AND CONSTRUED
      AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
      TO
      CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF
      CONFLICTS OF LAWS.

     

    
      
        
        

      

      
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    (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 ANY CREDITOR PARTY, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR
      ANY
      OF THE RELATED AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS
      AGREEMENT OR ANY OF THE OTHER RELATED AGREEMENTS; PROVIDED, THAT EACH CREDITOR
      PARTY AND 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 AGREEMENT SHALL BE DEEMED
      OR
      OPERATE TO PRECLUDE ANY CREDITOR PARTY FROM BRINGING SUIT OR TAKING OTHER LEGAL
      ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE ON
      THE
      COLLATERAL (AS DEFINED IN ANY SECURITY DOCUMENT) OR ANY OTHER SECURITY FOR
      THE
      OBLIGATIONS (AS DEFINED IN ANY SECURITY DOCUMENT), OR TO ENFORCE A JUDGMENT
      OR
      OTHER COURT ORDER IN FAVOR OF ANY CREDITOR PARTY. 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 THAT 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 SECTION
      11.8 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.

     

    (c) THE
      PARTIES DESIRE THAT THEIR 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, THE PARTIES HERETO WAIVE 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 ANY CREDITOR PARTY
      AND/OR ANY COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO
      THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, ANY
      OTHER RELATED AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR
      THERETO.

     

    
      
        
        

      

      
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    11.2 Severability.
      Wherever possible each provision of this Agreement and the Related Agreements
      shall be interpreted in such manner as to be effective and valid under
      applicable law, but if any provision of this Agreement or any Related Agreement
      shall be prohibited by or invalid or illegal under applicable law such provision
      shall be ineffective to the extent of such prohibition or invalidity or
      illegality, without invalidating the remainder of such provision or the
      remaining provisions thereof which shall not in any way be affected or impaired
      thereby.

     

    11.3 Survival.
      The
      covenants set forth in Sections 6.1, 6.2, 6.3, 6.4, 6.14, 6.15, 6.16, 6.17
      and
      6.19 and the representations, warranties and agreements made herein shall
      survive any investigation made by the Agent and the closing of the transactions
      contemplated hereby to the extent provided therein. The remainder of the
      covenants not specifically listed in the preceding sentence shall terminate
      and
      be of no further force and effect when the Obligations (as defined in any
      Security Document) shall have been indefeasibly paid in full. All statements
      as
      to factual matters contained in any certificate or other instrument delivered
      by
      or on behalf of any Company pursuant hereto in connection with the transactions
      contemplated hereby shall be deemed to be representations and warranties by
      such
      Company hereunder solely as of the date of such certificate or instrument.
      All
      indemnities set forth herein shall survive the execution, delivery and
      termination of this Agreement and the Notes and the making and repayment of
      the
      obligations arising hereunder, under the Notes and under the other Related
      Agreements.

     

    11.4 Successors.
      

     

    (a) Except
      as
      otherwise expressly provided herein, the provisions hereof shall inure to the
      benefit of, and be binding upon, the successors, heirs, executors and
      administrators of the parties hereto and shall inure to the benefit of and
      be
      enforceable by each person or entity which shall be a holder of the Securities
      from time to time, other than the holders of Common Stock which has been sold
      by
      any Purchaser pursuant to Rule 144 or an effective registration statement.
      Each
      Purchaser may assign any or all of the Obligations to any Person and, subject
      to
      acceptance and recordation thereof by the Agent pursuant to Section 11.4(b)
      and
      receipt by the Agent of a copy of the agreement or instrument pursuant to which
      such assignment is made (each such agreement or instrument, an “Assignment
      Agreement”), any such assignee shall succeed to all of such Purchaser’s rights
      with respect thereto; provided that no Purchaser shall be permitted to assign
      its rights hereunder or under any Related Agreement to a competitor of any
      Company unless an Event of Default (as defined in each Note) has occurred and
      is
      continuing. Each Purchaser may from time to time sell or otherwise grant
      participations in any of the Obligations (as defined in each Security Document)
      and the holder of any such participation shall, subject to the terms of any
      agreement between such Purchaser and such holder, be entitled to the same
      benefits as such Purchaser with respect to any security for the Obligations
      (as
      defined in each Security Document) in which such holder is a participant. Each
      Company agrees that each such holder may exercise any and all rights of banker’s
      lien, set-off and counterclaim with respect to its participation in the
      Obligations (as defined in each Security Document) as fully as though such
      Company were directly indebted to such holder in the amount of such
      participation. No Company may assign any of its rights or obligations hereunder
      without the prior written consent of the Agent. All of the terms, conditions,
      promises, covenants, provisions and warranties of this Agreement shall inure
      to
      the benefit of each of the undersigned, and shall bind the representatives,
      successors and permitted assigns of each Company.

     

    
      
        
        

      

      
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    (b) The
      Agent
      shall maintain, or cause to be maintained, for this purpose only as agent of
      each Company, (i) a copy of each Assignment Agreement delivered to it and (ii)
      a
      registry within the meaning of US Treasury Regulation Section 15f.103-1(c)
      (the
“Register”), in which it will register the name and address of each Purchaser
      and the name and address of each assignee of each Purchaser under this
      Agreement, and the principal amount of the Notes owing to each such Purchaser
      pursuant to the terms hereof and each Assignment Agreement. Each Company and
      each Creditor Party shall treat each Person whose name is recorded in the
      Register as a Purchaser pursuant to the terms hereof as a Purchaser hereunder
      for all purposes of this Agreement, notwithstanding notice to the contrary
      or
      any notation of ownership or other writing or any Note. The Register shall
      be
      available for inspection by any Company or any Purchaser, at any reasonable
      time
      and from time to time, upon reasonable prior notice.

     

    11.5 Entire
      Agreement; Maximum Interest.
      This
      Agreement, the Related Agreements, the exhibits and schedules hereto and thereto
      and the other documents delivered pursuant hereto constitute the full and entire
      understanding and agreement between the parties with regard to the subjects
      hereof and no party shall be liable or bound to any other in any manner by
      any
      representations, warranties, covenants and agreements except as specifically
      set
      forth herein and therein. Nothing contained in this Agreement, any Related
      Agreement or in any document referred to herein or delivered in connection
      herewith shall be deemed to establish or require the payment of a rate of
      interest or other charges in excess of the maximum rate permitted by applicable
      law. In the event that the rate of interest or dividends required to be paid
      or
      other charges hereunder exceed the maximum rate permitted by such law, any
      payments in excess of such maximum shall be credited against amounts owed by
      such Company to the Purchasers and thus refunded to such Company.

     

    11.6 Amendment
      and Waiver.

     

    (a) This
      Agreement may be amended or modified only upon the written consent of the
      Companies and the Creditor Parties.

     

    (b) The
      obligations of each Company and the rights of the Creditor Parties under this
      Agreement may be waived only with the written consent of the Creditor
      Parties.

     

    (c) The
      obligations of the Creditor Parties and the rights of the Companies under this
      Agreement may be waived only with the written consent of the
      Companies.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    11.7 Delays
      or Omissions.
      It is
      agreed that no delay or omission to exercise any right, power or remedy accruing
      to any party, upon any breach, default or noncompliance by another party under
      this Agreement or the Related Agreements, shall impair any such right, power
      or
      remedy, nor shall it be construed to be a waiver of any such breach, default
      or
      noncompliance, or any acquiescence therein, or of or in any similar breach,
      default or noncompliance thereafter occurring. All remedies, either under this
      Agreement or the Related Agreements, by law or otherwise afforded to any party,
      shall be cumulative and not alternative.

     

    11.8 Notices.
      All
      notices required or permitted hereunder shall be in writing and shall be deemed
      effectively given:

     

    (a) upon
      personal delivery to the party to be notified;

     

    (b) when
      sent
      by confirmed facsimile if sent during normal business hours of the recipient,
      if
      not, then on the next business day;

     

    (c) three
      (3)
      business days after having been sent by registered or certified mail, return
      receipt requested, postage prepaid; or

     

    (d) one
      (1)
      day after deposit with a nationally recognized overnight courier, specifying
      next day delivery, with written verification of receipt.

     

    All
      communications shall be sent as follows:

     

    
      	
              If
                to any Company, to:

            	 	
              c/o
                True North Energy Corporation

            
	
            	 	
              1400
                Woodloch Forest Drive

              Suite
                530

              The
                Woodlands, Texas 77380

              Attention:
                Chief Executive Officer

              Facsimile:
                (832) 553-7244

            
	 	 	 
	 	 	
              with
                a copy to:

            
	 	 	 
	 	 	
              Gordon
                Arata McCollam Duplantis & Eagan, LLP

              2200
                West Loop South

              Suite
                1050

              Houston,
                Texas 77027

              Attention:
                J. Lanier Yeates

              Facsimile:
                (713) 333-5501

            
	 	 	 
	
              If
                to the Creditor Parties, to:

            	 	
              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

              Attention:
                Portfolio Services

              Facsimile:
                212-581-5037

            
	 	 	 
	 	 	
              with
                a copy to:

            
	 	 	 
	 	 	
              Portfolio
                Services

              Valens
                Capital Management, LLC

              335
                Madison Avenue, 10th
                Floor

              New
                York, New York 10017

              Facsimile:
                212-581-5037

            
	 	 	 
	 	 	
              and
                to:

            
	 	 	 
	 	 	
              Scott
                J. Giordano, Esq.

              Loeb
                & Loeb LLP

              345
                Park Avenue

              New
                York, New York 10154

              Facsimile:
                212-407-4990

            
	 
	
              If
                to a Purchaser, to the address indicated under its signature on the
                signature pages hereto,

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    or
      at
      such other address as any Company or any Creditor Party may designate by written
      notice to the other parties hereto given in accordance herewith.

     

    11.9 Attorneys’
      Fees.
      In the
      event that any suit or action is instituted to enforce any provision in this
      Agreement or any Related Agreement, the prevailing party in such dispute shall
      be entitled to recover from the losing party all fees, costs and expenses of
      enforcing any right of such prevailing party under or with respect to this
      Agreement and/or such Related Agreement, including, without limitation, such
      reasonable fees and expenses of attorneys and accountants, which shall include,
      without limitation, all fees, costs and expenses of appeals.

     

    11.10 Titles
      and Subtitles.
      The
      titles of the sections and subsections of this Agreement are for convenience
      of
      reference only and are not to be considered in construing this
      Agreement.

     

    11.11 Facsimile
      Signatures; Counterparts.
      This
      Agreement may be executed by facsimile signatures and in any number of
      counterparts, each of which shall be an original, but all of which together
      shall constitute one agreement.

     

    11.12 Broker’s
      Fees.
      Except
      as set forth on Schedule 11.12 hereof, each party hereto represents and warrants
      that no agent, broker, investment banker, person or firm acting on behalf of
      or
      under the authority of such party hereto is or will be entitled to any broker’s
      or finder’s fee or any other commission directly or indirectly in connection
      with the transactions contemplated herein. Each party hereto further agrees
      to
      indemnify each other party for any claims, losses or expenses incurred by such
      other party as a result of the representation in this Section 11.12 being
      untrue.

     

    11.13 Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Agreement and the Related Agreements 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 Agreement or any
      Related Agreement to favor any party against the other.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    11.14 Joint
      and Several Obligations.

     

    (a) All
      obligations and liabilities of each Company to each Creditor Party (the
“Obligations”)
      shall
      be joint and several, and such obligations and liabilities on the part of the
      Companies shall in no way be affected by any extensions, renewals and
      forbearance granted by the Creditor Parties to any Company, failure of the
      Creditor Parties to give any Company any notice, any failure of the Creditor
      Parties to pursue to preserve its rights against any Company, the release by
      the
      Agent of any collateral now or thereafter acquired from any Company, and such
      agreement by any Company to pay upon any notice issued pursuant thereto is
      unconditional and unaffected by prior recourse by any Creditor Party to any
      Company or any collateral for such Obligations or the lack thereof.

     

    (b) Each
      Company expressly waives any and all rights of subrogation, reimbursement,
      indemnity, exoneration, contribution or any other claim which such Company
      may
      now or hereafter have against the other or other person or entity directly
      or
      contingently liable for the Obligations, or against or with respect to any
      other’s property (including, without limitation, any property which is
      collateral for the Obligations), arising from the existence or performance
      of
      this Agreement, until all Obligations have been indefeasibly paid in full and
      this Agreement has been irrevocably terminated.

     

    (c) Each
      Company represents and warrants to each Creditor Party that (i) Companies have
      one or more common shareholders, directors and officers, (ii) the businesses
      and
      corporate activities of Companies are closely related to, and substantially
      benefit, the business and corporate activities of Companies, (iii) the financial
      and other operations of Companies are performed on a combined basis as if
      Companies constituted a consolidated corporate group and (iv) Companies will
      receive a substantial economic benefit from entering into this Agreement and
      will receive a substantial economic benefit from all amounts advanced by any
      Purchaser to each Company in connection with the transactions contemplated
      hereby, in each case, whether or not such amount is used directly by any
      Company.

     

    11.15 Agency.
      Each
      Purchaser hereby irrevocably designates and appoints the Agent as the agent
      of
      such Purchaser under this Agreement and the Related Agreements, and each such
      Purchaser irrevocably authorizes the Agent, in such capacity, to take such
      action on its behalf under the provisions of this Agreement and the Related
      Agreements and to exercise such powers and perform such duties as are expressly
      delegated to the Agent by the terms of this Agreement and the Related
      Agreements, together with such other powers as are reasonably incidental
      thereto. Notwithstanding any provision to the contrary elsewhere in this
      Agreement, the Agent shall not have any duties or responsibilities, except
      those
      expressly set forth herein, or any fiduciary relationship with any Purchaser,
      and no implied covenants, functions, responsibilities, duties, obligations
      or
      liabilities shall be read into this Agreement or any Related Agreement or
      otherwise exist against the Agent.

     

    [The
      Remainder of this Page is Intentionally Left Blank.]

    

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed the SECURITIES PURCHASE
      AGREEMENT as of the date set forth in the first paragraph hereof.

     

    
      	
              COMPANIES:

            	 	
              AGENT:

            
	 	 	 
	TRUE
              NORTH ENERGY CORPORATION	 	
              VALENS
                U.S. SPV I, LLC, as Agent

            
	 	 	 	 	 
	 	 	 	By:	Valens Capital
              Management, LLC, its
              investment manager
	 	 	 	 	 
	By:	
              /s/
                John I. Folnovic

            	 	By:	
              /s/
                Eugene Grin

            
	 	
              Name:

              Title:

            	 	 	
              Name:
                Eugene Grin

              Title:
                Authorized
                Signatory

            
	 	 	 	 	 
	 	 	 	PURCHASERS:
	 	 	 	 	 
	ICF
              ENERGY CORPORATION	 	VALENS
              U.S. SPV I, LLC
	 	 	 	
            	
            
	 	 	 	By:	Valens Capital
              Management, LLC, its
              investment manager
	 	 	 	 	 
	By:	
              /s/
                John I. Folnovic

            	 	By:	
              /s/
                Eugene Grin 

            
	 	
              Name:

              Title:

            	 	 	
              Name:
                Eugene Grin

              Title:
                Authorized
                Signatory

            
	 	 	 	 	 
	 	 	 	 	
              Address
                for notices: 

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

            
	 	 	 	 	 
	 	 	 	VALENS
              OFFSHORE SPV II, CORP. 
	 	 	 	 	 
	 	 	 	By:	Valens Capital
              Management, LLC, its
              investment manager
	 	 	 	 	 
	 	 	 	By:	
              /s/
                Eugene Grin

            
	 	 	 	 	
              Name:
                Eugene Grin

              Title:
                Authorized
                Signatory

            
	 	 	 	 	 
	 	 	 	 	
              Address
                for notices: 

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

    

      
        	
                NAME

              	 	
                NOTE
                  AMOUNT

              
	 	 	 
	
                Valens
                  U.S. SPV I, LLC

              	 	
                $1,875,404

              
	 	 	 
	
                Valens
                  Offshore SPV II, CORP.

              	 	
                $1,874,596

              

      

    

     

    
      
        
           

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      4.2

    

    1. TNEC
      holds 100% of the issued and outstanding shares of its only subsidiary - ICF
      Energy Corporation.

    

    2. ICF
      Energy Corporation has no subsidiaries.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.3

    

    1. Pursuant
      to two promissory notes of TNEC made payable to EH&P Investments AG (each in
      the principal amount of $250,000, one dated April 10, 2007 and the other dated
      May 15, 2007) issued in replacement of a promissory note in the principal amount
      of $500,000 and made payable to EH&P Investments AG dated March 30, 2007,
      TNEC has issued the following Warrants: Warrant dated August 30, 2007 for the
      purchase of 182,249 shares of common stock of TNEC at a purchase price of $1.92
      per share and Warrant dated August 30, 2007 for the purchase of 298,330 shares
      of common stock of TNEC at a purchase price of $1.17 per share (each subject
      to
      adjustment of the purchase price upon split, subdivision, stock dividend or
      combination of shares). The Warrants are exercisable for a period of three
      years
      from the date of the Warrants. 

    

    2. TNEC
      is
      currently negotiating with Angel, LLC, CN Energy, LLC, Swanson Energy Company,
      LLC, Fuel Exploration, LLC, MHBR Energy, LLC and Rocky Mountain Rig, LLC
      (collectively, the “Sellers”)
      for
      the purchase of certain oil, gas and mineral properties and other related assets
      held by Sellers in the State of Wyoming (the “Powder River Acquisition”). If the
      sale is consummated, it is anticipated that a portion of the purchase price
      will
      be paid to Sellers in the form of 23,346,304 shares of TNEC’s common stock. The
      purchase and sale agreement between Sellers and TNEC has not been fully
      negotiated and remains subject to change in regard to the number of shares
      of
      TNEC’s common stock, if any, that will be issued pursuant to the Powder River
      Acquisition. 

    

    3. Pursuant
      to the Purchase and Sale Agreement by and between Prime Natural Resources,
      Inc.
      (“Prime”)
      and
      ICF Energy Corporation executed August 31, 2007, TNEC will be required to issue
      1,928,375 shares of TNEC’s common stock to Prime at the closing of such
      transaction. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE4.6

    

    1.
       Promissory
      notes of TNEC made payable to EH&P Investments AG described in Item 1 on
      Schedule 4.3.
      

    

    2. Retainer
      Agreement between TNEC and Gottbetter & Partners, LLP dated March 1, 2006
      for the preparation and filing of certain specified SEC documents, effective
      through February 28, 2008. This agreement provides for the payment of a flat
      monthly fee of $5,000 for providing certain services described therein and
      for
      the payment of all other legal services on a hourly basis in accordance with
      the
      schedule attached thereto. 

    

    3. Agreement
      by and between Energy Capital Solutions, L.P. (“ECS”)
      and
      TNEC for financial advisory services dated February 28, 2007 (“ECS
      Agreement”).
      

    

    4. Premium
      Financing Agreement by and between Talbot Premium Financing and TNEC dated
      February 14, 2007 wherein TNEC agreed to make nine monthly payments of
      $28,756.81 each beginning March 1, 2007 and concluding on November 1, 2007
      for
      the purpose of financing the balance owed on TNEC’s insurance premiums for the
      12 month term commencing 1-29-07. 

    

    5. Investor
      Relations Service Agreement by and between Senergy Communications Inc.
      (“Senergy”)
      and
      TNEC dated May 1, 2006 which provides that TNEC will pay Senergy $6,000 per
      month for the services listed therein and will pay additional amounts approved
      in advance by TNEC for additional services . 

    

    6. The
      agreements between TNEC and its legal and other advisors related to the Powder
      River Acquisition.

    

    7. The
      agreements between TNEC and its legal and other advisors related to the
      acquisition and financing of the assets being acquired from Prime Natural
      Resources, Inc. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.7

    

    1. TNEC
      from
      time to time engages Gordon, Arata, McCollam, Duplantis & Eagan L.L.P.
      (“Gordon
      Arata”)
      to
      provide legal advice and services to TNEC. J. Lanier Yeates, a partner in Gordon
      Arata, is a stockholder of TNEC as a result of having been appointed to TNEC’s
      Advisory Board. (As described in TNEC’s Exchange Act filings, members of the
      Advisory Board receive shares of TNEC’s common stock as compensation for their
      services to the Company.) 

    

    2. The
      following interests in leases in the State of Alaska (Cook Inlet) are currently
      held in the name of Massimilliano Pozzoni, a shareholder, officer and director
      of TNEC. Mr. Pozzoni and TNEC have agreed that when Mr. Pozzoni’s leasehold
      interests are recorded with the Alaska Department of Natural Resources, Mr.
      Pozzoni will assign his leasehold interests to TNEC. 

    

    
      	
              %
                Interest

            	
               

            	
              Tract
                #

            	
               

            	
              ADL
                #

            	
               

            	
              Township

            	
               

            	
              Range

            	
               

            	
              Sections

            	
               

            	
              Issued
                Acreage

            
	
              25%
                

            	 	
              CI-2003-495

            	 	
              390383

            	 	
              12N

            	 	
              10W

            	 	
              5,
                7, 8

            	 	
              926.51

            
	
              50%

            	 	
              CIA-2005-111

            	 	
              390722

            	 	
              4N

            	 	
              18W
                

            	 	
              1,
                2, 3, 10, 11, 12, 13, 14, 15

            	 	
              5760

            
	
              50%

            	 	
              CIA-2005-151

            	 	
              390723

            	 	
              5N

            	 	
              17W

            	 	
              19,
                20, 21, 28, 29, 30, 31, 32, 33

            	 	
              5747

            
	
              75%

            	 	
              CIA-2005-498

            	 	
              390745

            	 	
              12N

            	 	
              10W

            	 	
              17,
                20

            	 	
              471

            

    

    

    Mr.
      Pozzoni and TNEC have agreed that when Mr. Pozzoni acquires title to the
      following interests in leases in the State of Alaska (Cook Inlet), he will
      assign such leasehold interests to TNEC. (A sufficient number of assignments
      of
      these interests to Mr. Pozzoni were not executed, and since the time the initial
      assignments were executed, the assignee has died. Replacement assignments are
      being requested from the estate of the deceased assignee for
      recordation).

     

    
      	
              %
                Interest

            	
               

            	
              Tract
                #

            	
               

            	
              ADL
                #

            	
               

            	
              Township

            	
               

            	
              Range

            	
               

            	
              Sections

            	
               

            	
              Issued
                Acreage

            
	
              25%

            	 	
              CI-2002-0108

            	 	
              390087

            	 	
              4N

            	 	
              17W

            	 	
              4,
                5, 6, 7, 8, 9, 16, 17, 18

            	 	
              5646

            
	
              25%

            	 	
              CI-2003-495

            	 	
              390383

            	 	
              12N

            	 	
              10W

            	 	
              5
                ,
                7, 8

            	 	
              926.51

            
	
              50%

            	 	
              CI-2001-0546

            	 	
              389932

            	 	
              13N

            	 	
              9W

            	 	
              8

            	 	
              640
                m/l

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      4.9

    

    1. The
      representations and warranties with respect to title to the Texas leasehold
      interests are based upon the Limited
      Title Opinions rendered by Gordon
      Arata McCollam Duplantis & Eagan, LLP, dated August 31, 2007, addressed to
TNEC
      and ICF
      covering the O’Leary Unit No. 1, Four Corners Prospect, Brazoria County,
      Texas and the
      Devon
      Fee Gas Unit, Four Corners Prospect, Brazoria County, Texas.

    

    2. The
      representations and warranties with respect to title to the Alaska leasehold
      interests are based on the Opinion Letter rendered by Large & Associates PC,
      dated September 14, 2007, addressed to TNEC covering real property included
      in
      Alaska Oil and Gas Leases, Lease Numbers: ADL 389932; ADL 390087; ADL 390383;
      ADL 390567; ADL 390572; ADL 390722; ADL 390723; ADL 390745; ADL 390834; ADL
      390839; ADL 390840; and ADL 39084.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.12

    

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.13

    

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.14

    

    None
      other than as described in TNEC’s Exchange Act filings.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.15

    

    1. Pursuant
      to that certain promissory note of TNEC in the principal amount of $125,000
      made
      payable to Uphill Limited Liability Company, Steven J. Revenig, Trustee
      (“Uphill”)
      dated
      August 20, 2007, Uphill received 50,000 shares of TNEC’s restricted common stock
      with respect to which Uphill has piggyback registration
      rights.

     

    2. Pursuant
      to that certain promissory note of TNEC in the principal amount of $125,000
      made
      payable to T. Swanson, Inc. (“Swanson”)
      dated
      August 20, 2007, Swanson received 50,000 shares of TNEC’s restricted common
      stock with respect to which Swanson has piggyback registration
      rights.

     

    3. If
      the
      Powder River Acquisition takes place, the Sellers will have piggyback
      registration rights in regard to the shares of common stock issued to them
      in
      that transaction. 

    

    4. Prime
      Natural Resources
      will be
      granted piggyback registration rights in regard to the shares of TNEC common
      stock issued to it in connection with the purchase of assets pursuant to the
      Purchase and Sale Agreement by and between Prime Natural Resources, Inc. and
      ICF
      Energy Corporation (described in Item 3, Schedule 4.3).

    

    5. Following
      the closing of this transaction, ECS will be granted a warrant for the purchase
      of 300,000 shares of the common stock of TNEC. ECS will have piggyback
      registration rights in regard to the shares of common stock purchased upon
      exercise of the warrant. 

    

    6. The
      ECS
      Agreement described on Schedule 4.6, Item 3, provides for issuance of warrants
      of common stock of TNEC to ECS upon the successful completion of a Private
      Placement (as defined therein). Such warrants will contain provisions which
      will
      require, under certain circumstances, TNEC to grant registration rights in
      the
      event a public offering of TNEC’s common stock is filed with the SEC, subject to
      customary restrictions and conditions. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.17

    

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4.21

    

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      6.13

    

    1. The
      debt
      to EH&P Investments AG as evidenced by the EH&P Notes described in Item
      1 to Schedule 4.6.

    

    2. Any
      financing in connection with the Powder River Acquisition including, but not
      limited to, amounts borrowed from Swanson and Uphill to be used as a deposit
      for
      that acquisition. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6.22

    

    1. Subordination
      Agreement by and between EH&P Investments AG and TNEC dated September 18,
      2007.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      11.12

    

    1.
      The
      obligations to Energy Capital Solutions described in Item 3 to Schedule
      4.6.

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