Document:

Exhibit
      10.10

     

    MASTER
      SECURITY AGREEMENT

     

    
      	
              To:

            	
              Valens
                U.S. SPV I, LLC, as Agent 
                c/o
                  Valens Capital Management, LLC

                335
                  Madison Avenue, 10th
                  floor

                New
                  York, New York 10017

              

            

    

     

    Date:
      September 18, 2007

     

    To
      Whom
      It May Concern:

     

    1. To
      secure
      the payment of all Obligations (as hereafter defined), True North Energy
      Corporation, a Nevada corporation (“TNEC”),
      ICF
      Energy Corporation, a Texas corporation (“ICF”,
      and
      together with TNEC, the “Companies”
and
      each a “Company”),
      each
      of the other undersigned parties (other than Valens U.S. SPV I, LLC, as agent
      (the “Agent”)
      for
      the Purchasers (as defined in the Securities Purchase Agreement defined herein))
      and each other entity that is required to enter into this Master Security
      Agreement (each an “Assignor”
and,
      collectively, the “Assignors”)
      hereby
      assigns and grants to the Agent, for the ratable benefit of the Creditor Parties
      (as defined in the Securities Purchase Agreement), a continuing security
      interest in all of the following property now owned or at any time hereafter
      acquired by such Assignor, or in which such Assignor now has or at any time
      in
      the future may acquire any right, title or interest: 

     

    (a) All
      cash,
      cash equivalents, accounts, accounts receivable, deposit accounts (including,
      without limitation, Lockbox Deposit Accounts (as defined below), inventory,
      equipment, goods, fixtures, documents, instruments (including, without
      limitation, promissory notes), contract rights, general intangibles (including,
      without limitation, payment intangibles and an absolute right to license on
      terms no less favorable than those currently in effect among such Assignor’s
      affiliates), chattel paper, supporting obligations, investment property
      (including, without limitation, all equity interests owned by any Assignor),
      letter-of-credit rights, all commercial tort claims set forth on Schedule C,
      trademarks, trademark applications, tradestyles, patents, patent applications,
      copyrights, copyright applications and other intellectual property in which
      such
      Assignor now has or hereafter may acquire any right, title or interest, all
      proceeds and products thereof (including, without limitation, proceeds of
      insurance) and all additions, accessions and substitutions thereto or therefor;
      

     

    (b) All
      of
      those certain Oil and Gas Leases and Lands (all such Oil and Gas Leases and
      Lands being herein called the “Subject Interests,” as hereinafter further
      defined) which are described in Exhibit
      A
      and/or
      to which reference may be made in Exhibit
      A
      and/or
      which are covered by any of the leases described on Exhibit
      A
      hereto;

     

    (c) All
      rights, titles, interests and estates now owned or hereafter acquired by such
      Assignor in and to (i) any and all properties now or hereafter pooled or
      unitized with any of the Subject Interests, and (ii) all presently existing
      or
      future operating agreements and unitization, communitization and pooling
      agreements and the units operated thereby to the extent the same relate to
      all
      or any part of the Subject Interests, including, without limitation, all units
      formed under or pursuant to any applicable laws (the rights, titles, interests
      and estates described in this clause (b) also being included within the term
      “Subject Interests” as used herein);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) All
      presently existing and future agreements entered into between such Assignor
      and
      any third party that provide for the acquisition by such Assignor of any
      interest in any of the properties or interests specifically described in
Exhibit
      A
      or which
      relate to any of the properties and interests specifically described in
Exhibit
      A;

     

    (e) The
      Hydrocarbons (as defined below) (including inventory) which are in, under,
      upon,
      produced or to be produced from or attributable to the Lands (as defined
      below);

     

    (f) The
      Accounts and Contract Rights (as defined below);

     

    (g) The
      Operating Equipment (as defined below); 

     

    (h) The
      Well
      Data (as defined below);

     

    (i) The
      rights and security interests of such Assignor held by such Assignor to secure
      the obligation of the first purchaser to pay the purchase price of the
      Hydrocarbons;

     

    (j) All
      surface leases, rights-of-way, franchises, easements, servitudes, licenses,
      privileges, tenements, hereditaments and appurtenances now existing or in the
      future obtained in connection with any of the aforesaid, and all other items
      of
      value and incident thereto which such Assignor may, at any time, have or be
      entitled; and

     

    (k) All
      and
      any different and additional rights of any nature, of value or convenience
      in
      the enjoyment, development, operation or production, in any way, of any property
      or interest included in any of the foregoing clauses, and in all revenues,
      income, rents, issues, profits and other benefits arising therefrom or from
      any
      contract now in existence or hereafter entered into pertaining thereto, and
      in
      all rights and claims accrued or to accrue for the removal by anyone of
      Hydrocarbons from, or other act causing damage to, any of such properties or
      interests.

     

    All
      the
      aforesaid properties, rights and interests set forth in clauses (a) through
      (h)
      above, together with any and all substitutions, replacements, corrections or
      amendments thereto, or renewals, extensions or ratifications thereof, or of
      any
      instrument relating thereto, and together with any additions thereto which
      may
      be subject to the Agent’s Lien (as defined below), being hereinafter called the
“Collateral”.

     

    As
      used
      herein, the following terms shall have the following meanings:

     

    “Accounts
      and Contract Rights”
shall
      mean all accounts (including accounts in the form of joint interest billings
      under applicable operating agreements), contract rights and general intangibles
      of any Assignor now or hereafter existing, or hereafter acquired by, or on
      behalf of, any Assignor, or any Assignor’s successors in interest, relating to
      or arising from the ownership, operation and development of the Collateral
      and
      to the production, processing, treating, sale, purchase, exchange or
      transportation of Hydrocarbons (defined below) produced or to be produced from
      or attributable to the Collateral or any units or pooled interest units in
      which
      all or a portion of the Collateral forms a part, together with all accounts
      and
      proceeds accruing to any Assignor attributable to the sale of Hydrocarbons
      produced from the Collateral or any units or pooled interest units in which
      all
      or a portion of the Collateral forms a part.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Hydrocarbons”
shall
      mean oil, gas, coalbed methane gas, casinghead gas, drip gasolines, natural
      gasoline, condensate, distillate, as-extracted collateral and all other liquid
      or gaseous hydrocarbons produced or to be produced in conjunction therewith,
      and
      all products, byproducts and all other substances derived therefrom or the
      processing thereof, and all other minerals and substances, including, but not
      limited to, sulphur, lignite, coal, uranium, thorium, iron, geothermal steam,
      water, carbon dioxide, helium and any and all other minerals, ores, or
      substances of value and the products and proceeds therefrom, including, without
      limitation, all gas resulting from the in-situ combustion of coal or
      lignite.

     

    “Lands”
shall
      mean the lands described in Exhibit
      A
      and
      shall include any lands, the description of which is contained in Exhibit
      A
      or
      incorporated in Exhibit
      A
      by
      reference to another instrument or document, including, without limitation,
      all
      lands described in the Oil and Gas Leases listed on Exhibit
      A
      hereto,
      and shall also include any lands now or hereafter unitized, pooled, spaced
      or
      otherwise combined, whether by statute, order, agreement, declaration or
      otherwise, with lands the description of which is contained in Exhibit
      A
      or is
      incorporated in Exhibit
      A
      by
      reference.

     

    “Lien”
shall
      mean any mortgage, deed of trust, collateral assignment, lien, pledge, charge,
      security interest or other encumbrance.

     

    “Oil
      and Gas Leases”
shall
      mean oil, gas and mineral leases, oil and gas leases, oil leases, gas leases,
      other mineral leases, subleases, top leases, any rights resulting in an
      ownership interest in Hydrocarbons and all operating rights relating to any
      of
      the foregoing (whether operated by virtue of such leases, or assignments or
      applicable operating agreements), and all other interests pertaining to any
      of
      the foregoing, including, without limitation, all royalty and overriding royalty
      interests, production payments and net profit interests, mineral fee interests,
      and all reversionary, remainder, carried and contingent interests relating
      to
      any of the foregoing and all other rights therein which are described and/or
      to
      which reference may be made on Exhibit
      A.

     

    “Operating
      Equipment”
shall
      mean all Personal Property (as defined below) and fixtures affixed or situated
      upon all or any part of the Collateral, including, without limitation, all
      surface or subsurface machinery, equipment, facilities or other property of
      whatsoever kind or nature now or hereafter located on any of the Lands which
      are
      useful for the production, treatment, storage or transportation of oil or gas,
      including, but not by way of limitation, all oil wells, gas wells, water wells,
      injection wells, casing, tubing, rods, pumping units and engines, Christmas
      trees, derricks, separators, gun barrels, flow lines, tanks, gas systems (for
      gathering, treating and compression), water systems (for treating, disposal
      and
      injection), power plants, poles, lines, transformers, starters and controllers,
      machine shops, tools, storage yards and equipment stored therein, buildings
      and
      camps, telegraph, telephone and other communication systems, roads, loading
      racks and shipping facilities.

     

    
      
        
        

      

      
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    “Personal
      Property”
shall
      mean that portion of the Collateral that is personal property.

     

    “Well
      Data”
shall
      mean all logs, drilling reports, division orders, transfer orders, operating
      agreements, contracts and other agreements, abstracts, title opinions, files,
      records, seismic data, memoranda and other information in the possession or
      control of any Assignor or to which any Assignor has access relating to the
      Lands and/or any wells located thereon.

     

    2. Except
      as
      otherwise defined herein, all capitalized terms used herein shall have the
      meanings provided such terms in the Securities Purchase Agreement referred
      to
      below. All items of Collateral which are defined in the UCC shall have the
      meanings set forth in the UCC. For purposes hereof, the term "UCC" means the
      Uniform Commercial Code as the same may, from time to time, be in effect in
      the
      State of New York; provided, that in the event that, by reason of mandatory
      provisions of law, any or all of the attachment, perfection or priority of,
      or
      remedies with respect to, the Agent’s security interest in any Collateral is
      governed by the Uniform Commercial Code as in effect in a jurisdiction other
      than the State of New York, the term “UCC” shall mean the Uniform Commercial
      Code as in effect in such other jurisdiction for purposes of the provisions
      of
      this Master Security Agreement relating to such attachment, perfection, priority
      or remedies and for purposes of definitions related to such provisions; provided
      further, that to the extent that the UCC is used to define any term herein
      and
      such term is defined differently in different Articles or Divisions of the
      UCC,
      the definition of such term contained in Article or Division 9 shall
      govern.

     

    3. The
      term
“Obligations”
as
      used
      herein shall mean and include all debts, liabilities and obligations owing
      by
      each Assignor to any Creditor Party arising under, out of, or in connection
      with: (i) that certain Securities Purchase Agreement dated as of the date hereof
      by and among the Companies, the Purchasers (as therein defined) and the Agent
      (the “Securities
      Purchase Agreement”)
      and
      (ii) the Related Agreements referred to in the Securities Purchase Agreement
      (the Securities Purchase Agreement and each Related Agreement, as each may
      be
      amended, modified, restated or supplemented from time to time, collectively,
      the
“Documents”),
      and
      in connection with any documents, instruments or agreements relating to or
      executed in connection with the Documents or any documents, instruments or
      agreements referred to therein or otherwise, and in connection with any other
      indebtedness, obligations or liabilities of each such Assignor to any Creditor
      Party, whether now existing or hereafter arising, direct or indirect, liquidated
      or unliquidated, absolute or contingent, due or not due and whether under,
      pursuant to or evidenced by a note, agreement, guaranty, instrument or
      otherwise, including, without limitation, obligations, liabilities and
      indebtedness of each Assignor for post-petition interest, fees, costs and
      charges that accrue after the commencement of any case by or against such
      Assignor under any bankruptcy, insolvency, reorganization or like proceeding
      (collectively, the “Debtor
      Relief Laws”)
      in
      each case, irrespective of the genuineness, validity, regularity or
      enforceability of such Obligations, or of any instrument evidencing any of
      the
      Obligations or of any collateral therefor or of the existence or extent of
      such
      collateral, and irrespective of the allowability, allowance or disallowance
      of
      any or all of the Obligations in any case commenced by or against any Assignor
      under any Debtor Relief Law.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4. Each
      Assignor hereby jointly and severally represents, warrants and covenants to
      the
      Agent that:

     

    (a) it
      is a
      corporation, partnership or limited liability company, as the case may be,
      validly existing, in good standing and formed under the respective laws of
      its
      jurisdiction of formation set forth on Schedule
      B,
      and
      each Assignor will provide the Agent thirty (30) days’ prior written notice of
      any change in any of its respective jurisdiction of formation;

     

    (b) its
      legal
      name is as set forth in its Certificate of Incorporation or other organizational
      document (as applicable) as amended through the date hereof and as set forth
      on
Schedule
      B,
      and it
      will provide the Agent thirty (30) days’ prior written notice of any change in
      its legal name;

     

    (c) its
      organizational identification number (if applicable) is as set forth on
Schedule
      B
      hereto,
      and it will provide the Agent thirty (30) days’ prior written notice of any
      change in its organizational identification number;

     

    (d) it
      is the
      lawful owner of its Collateral and it has the sole right to grant a security
      interest therein and will defend the Collateral against all claims and demands
      of all persons and entities;

     

    (e) it
      will
      keep its Collateral free and clear of all attachments, levies, taxes, liens,
      security interests and encumbrances of every kind and nature (“Encumbrances”),
      except (i) Encumbrances securing the Obligations and (ii) Encumbrances securing
      indebtedness of each such Assignor not to exceed $75,000 in the aggregate for
      all such Assignors so long as all such Encumbrances are removed or otherwise
      released to the Agent’s satisfaction within ten (10) days of the creation
      thereof;

     

    (f) it
      will,
      at its and the other Assignors’ joint and several cost and expense keep the
      Collateral in good state of repair (ordinary wear and tear excepted) and will
      not waste or destroy the same or any part thereof other than ordinary course
      discarding of items no longer used or useful in its or such other Assignors’
business;

     

    (g) it
      will
      not, without the Agent’s prior written consent, sell, exchange, lease or
      otherwise dispose of any Collateral, whether by sale, lease or otherwise, except
      for the sale of inventory in the ordinary course of business and for the
      disposition or transfer in the ordinary course of business during any fiscal
      year of obsolete and worn-out equipment or equipment no longer necessary for
      its
      ongoing needs, having an aggregate fair market value of not more than $25,000
      and only to the extent that:

     

    (i) the
      proceeds of each such disposition are used to acquire replacement Collateral
      which is subject to the Agent’s first priority perfected security interest, or
      are used to repay the Obligations or to pay general corporate expenses;
      or

     

    
      
        
        

      

      
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    (ii) following
      the occurrence of an Event of Default which continues to exist the proceeds
      of
      which are remitted to the Agent to be held as cash collateral for the
      Obligations;

     

    (h) it
      will
      insure or cause the Collateral to be insured in the Agent’s name (as additional
      insured and lender loss payee) against loss or damage by fire, theft, burglary,
      pilferage, loss in transit and such other hazards as the Agent shall specify
      in
      amounts and under policies by insurers acceptable to the Agent and all premiums
      thereon shall be paid by such Assignor and the policies delivered to the Agent.
      If any such Assignor fails to do so, the Agent may procure such insurance and
      the cost thereof shall be promptly reimbursed by the Assignors, jointly and
      severally, and shall constitute Obligations;

     

    (i) it
      will
      expressly agree that if additional loss payees and/or lender loss payees, other
      than the Agent, are named to the Collateral, the Agent will always be assigned
      to first lien position until all Obligations have been met;

     

    (j) it
      will
      at all reasonable times allow any Creditor Party or such Creditor Party’s
      representatives free access to and the right of inspection of the
      Collateral;

     

    (k) such
      Assignor (jointly and severally with each other Assignor) hereby indemnifies
      and
      saves each Creditor Party harmless from all loss, costs, damage, liability
      and/or expense, including reasonable attorneys’ fees, that any Creditor Party
      may sustain or incur to enforce payment, performance or fulfillment of any
      of
      the Obligations and/or in the enforcement of this Master Security Agreement
      or
      in the prosecution or defense of any action or proceeding either against any
      Creditor Party or any Assignor concerning any matter growing out of or in
      connection with this Master Security Agreement, and/or any of the Obligations
      and/or any of the Collateral except to the extent caused by any Creditor Party’s
      own gross negligence or willful misconduct (as determined by a court of
      competent jurisdiction in a final and nonappealable decision) In addition,
      each
      Assignor hereby indemnifies and saves each Creditor Party harmless from any
      claim, cost, expense, liability, obligation, loss or damage (including
      reasonable legal fees) of any nature, incurred by or imposed upon any Creditor
      Party which results, arises out of or is based upon: (i) any misrepresentation
      by any Assignor or breach of any warranty by any Assignor in this Agreement
      or
      any Document or any agreement between any Assignor and the Agent and/or any
      Creditor Party relating hereto or thereto; or (ii) any breach or default in
      performance by the Assignors of any covenant or undertaking to be performed
      by
      the Assignors hereunder or under any Document, or any other agreement entered
      into by any Assignor and the Agent and/or any Creditor Party relating hereto
      or
      thereto or (iii) (a) unless such violation is caused by the gross negligence
      or
      willful misconduct of any 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 Assignor and/or any Assignor’s
      properties, whether or not caused by or within the control of any Creditor
      Party
      and/or (b) unless such presence, release or threat of release is caused by
      the
      gross negligence or willful misconduct of any Creditor Party, the presence,
      release or threat of release of any hazardous, toxic or harmful substances,
      wastes, materials, pollutants or contaminants (including, without limitation,
      asbestos, polychlorinated biphenyls, petroleum products, flammable explosives,
      radioactive materials, infectious substances or raw materials which include
      hazardous constituents) or any other substances or raw materials which are
      included under or regulated by Environmental Laws on, in, under or affecting
      all
      or any portion of any property of any Assignor or any surrounding areas, in
      all
      other cases, regardless of whether or not caused by or within the control of
      any
      Creditor Party; 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (l) all
      commercial tort claims (as defined in the Uniform Commercial Code as in effect
      in the State of New York) held by any Assignor are set forth on Schedule C
      to
      this Master Security Agreement; each Assignor hereby agrees that it shall
      promptly, and in any event within five (5) business days after the same is
      acquired by it, notify the Agent of any commercial tort claim acquired by it
      and
      unless otherwise consented to in writing by the Agent, it shall enter into
      a
      supplement to this Master Security Agreement granting to the Agent, for the
      ratable benefit of the Creditor Parties, a security interest in such commercial
      tort claim, securing the Obligations; and

     

    (m) (i)
      Not
      later than thirty (30) days following the delivery to ICF by the Agent of the
      form of lockbox documentation described below, ICF shall and shall cause
      Commerce Bank
      or
      such other financial institution accepted by the Agent in writing as may be
      selected by ICF
      (the
“Lockbox Bank”) to enter into all such documentation acceptable to the Agent
      pursuant to which, among other things, the Lockbox Bank agrees to, following
      notification by the Agent (which notification the Agent shall only give
      following the occurrence and during the continuance of an Event of Default),
      comply only with the instructions or other directions of the Agent concerning
      the lockboxes maintained by ICF (the “Lockboxes”) with the Lockbox Bank and the
      Lockbox Deposit Account (as defined below). Not later than thirty (30) days
      following the delivery to ICF by the Agent of the form of lockbox documentation
      described above, ICF will (x) irrevocably direct all of its present and future
      Account Debtors (as defined below) and other persons or entities obligated
      to
      make payments constituting Collateral to make such payments directly to the
      Lockboxes at the Lockbox Bank (each such direction pursuant to this clause
      (x),
      a “Direction Notice”) and (y) provide the Agent with copies of each Direction
      Notice, each of which shall be agreed to and acknowledged by the respective
      Account Debtor. 

     

    (ii)
      Upon
      receipt of such payments, the Lockbox Bank shall agree to deposit the proceeds
      of such payments immediately upon receipt thereof in that certain deposit
      account maintained at the Lockbox Bank , or such other deposit account accepted
      by the Agent in writing (the “Lockbox Deposit Account”). All of ICF’s invoices,
      account statements and other written or oral communications directing,
      instructing, demanding or requesting payment of any Account (as hereinafter
      defined) of ICF or any other amount constituting Collateral shall conspicuously
      direct that all payments be made to the Lockbox or such other address as the
      Agent may direct in writing. If, notwithstanding the instructions to Account
      Debtors, ICF receives any payments, ICF shall immediately remit such payments
      to
      the Lockbox Deposit Account in their original form with all necessary
      endorsements. Until so remitted, ICF shall hold all such payments in trust
      for
      and as the property of the Agent, for the ratable benefit of the Creditor
      Parties, and shall not commingle such payments with any of its other funds
      or
      property. For the purpose of this Master Security Agreement, (x) “Accounts”
shall mean all “accounts”, as such term is defined in the UCC as in effect in
      the State of New York on the date hereof, now owned or hereafter acquired by
      ICF
      and (y) “Account Debtor” shall mean any person or entity who is or may be
      obligated with respect to, or on account of, an Account. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (iii)
      Each Company agrees that, notwithstanding anything contained in this Agreement
      to the contrary, failure to comply with Section 4(m)(i) above shall constitute
      an immediate Event of Default hereunder, not subject to any cure or grace.
      

     

    5. The
      occurrence of any of the following events or conditions shall constitute an
      “Event
      of Default”
under
      this Master Security Agreement:

     

    (a) any
      covenant or any other term or condition of this Master Security Agreement is
      breached in any material respect and such breach, to the extent subject to
      cure,
      shall continue without remedy for a period of fifteen (15) days after the
      occurrence thereof;

     

    (b) any
      representation or warranty, or statement made or furnished to any Creditor
      Party
      under this Master Security Agreement by any Assignor or on any Assignor’s behalf
      should prove to be false or misleading in any material respect on the date
      as of
      which made or deemed made;

     

    (c) the
      loss,
      theft, substantial damage, destruction, sale or encumbrance to or of any of
      the
      Collateral or the making of any levy, seizure or attachment thereof or thereon
      except to the extent:

     

    (i) such
      loss
      is covered by insurance proceeds which are used to replace the item or repay
      the
      Creditor Parties; or

     

    (ii) said
      levy, seizure or attachment does not secure indebtedness in excess of $100,000
      in the aggregate for all Assignors and such levy, seizure or attachment has
      been
      removed or otherwise released within ten (10) days of the creation or the
      assertion thereof.

     

    (d) an
      Event
      of Default (or similar term) shall have occurred under and as defined in any
      Document or any document, instrument or agreement entered into in connection
      therewith.

     

    6. Upon
      the
      occurrence of any Event of Default and at any time thereafter, the Agent may
      and
      shall, following the request of those Purchasers holding not less than fifty
      percent (50%) of the outstanding amount under the Notes issued under the
      Securities Purchase Agreement, declare all Obligations immediately due and
      payable and the Agent shall have the remedies of a secured party provided in
      the
      UCC as in effect in the State of New York, this Agreement and other applicable
      law. Upon the occurrence of any Event of Default and at any time thereafter,
      the
      Agent will have the right to take possession of the Collateral and to maintain
      such possession on any Assignor’s premises or to remove the Collateral or any
      part thereof to such other premises as the Agent may desire. Upon the Agent’s
      request, each Assignor shall assemble or cause the Collateral to be assembled
      and make it available to the Agent at a place designated by the Agent. If any
      notification of intended disposition of any Collateral is required by law,
      such
      notification, if mailed, shall be deemed properly and reasonably given if mailed
      at least ten (10) days before such disposition, postage prepaid, addressed
      to
      the applicable Assignor either at such Assignor’s address shown herein or at any
      address appearing on the Agent’s records for such Assignor. Any proceeds of any
      disposition of any of the Collateral shall be applied by the Agent to the
      payment of all expenses in connection with the sale of the Collateral, including
      reasonable attorneys’ fees and other legal expenses and disbursements and the
      reasonable expenses of retaking, holding, preparing for sale, selling, and
      the
      like, and any balance of such proceeds may be applied by the Agent toward the
      payment of the Obligations in such order of application as the Agent may elect,
      and each Assignor shall be liable for any deficiency. For the avoidance of
      doubt, following the occurrence and during the continuance of an Event of
      Default, the Agent shall have the immediate right to withdraw any and all monies
      contained in the Lockbox Deposit Account or any other deposit accounts in the
      name of any Assignor and controlled by the Agent and apply same to the repayment
      of the Obligations (in such order of application as the Agent may elect). The
      parties hereto each hereby agree that the exercise by any party hereto of any
      right granted to it or the exercise by any party hereto of any remedy available
      to it (including, without limitation, the issuance of a notice of redemption,
      a
      borrowing request and/or notice of default), in each case, hereunder, under
      the
      Securities Purchase Agreement or under any other Related Agreement shall not
      constitute confidential information and no party shall have any duty to the
      other party to maintain such information as confidential.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    7. Each
      Purchaser hereby irrevocably (i) appoints the Agent to act as collateral agent
      for the Purchasers under this Master Security Agreement, and (ii) authorizes
      the
      Agent to enter into any Related Agreement to which it is a party and to perform
      its duties and obligations thereunder, together with all powers reasonably
      incidental thereto and the Agent hereby accepts such appointment. All Collateral
      shall be held or administered by the Agent (or its duly-appointed agent) for
      its
      benefit and for the benefit of the other Creditor Parties. Any proceeds received
      by the Agent from the foreclosure, sale, lease or other disposition of any
      of
      the Collateral shall be paid over to the Agent for application in accordance
      with Section 6. The Agent shall have no duties or responsibilities except as
      set
      forth in this Agreement, nor shall it have any fiduciary relationship with
      any
      Purchaser, and no implied covenants, responsibilities, duties, obligations,
      or
      liabilities shall be read into this Agreement or any Related Agreement or
      otherwise exist against the Agent.

     

    8. If
      any
      Assignor defaults in the performance or fulfillment of any of the terms,
      conditions, promises, covenants, provisions or warranties on such Assignor’s
      part to be performed or fulfilled under or pursuant to this Master Security
      Agreement, the Agent may, at its option without waiving its right to enforce
      this Master Security Agreement according to its terms, immediately or at any
      time thereafter and without notice to any Assignor, perform or fulfill the
      same
      or cause the performance or fulfillment of the same for each Assignor’s joint
      and several account and at each Assignor’s joint and several cost and expense,
      and the cost and expense thereof (including reasonable attorneys’ fees) shall be
      added to the Obligations and shall be payable on demand with interest thereon
      at
      the highest rate permitted by law, or, at the Agent’s option, debited by the
      Agent from the Lockbox Deposit Account or any other deposit accounts in the
      name
      of any Assignor and controlled by the Agent.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    9. Each
      Assignor appoints the Agent, any of the Agent’s officers, employees or any other
      person or entity whom the Agent may designate as such Assignor’s attorney with
      power to (a)(i) execute such documents in each such Assignor’s behalf and to
      supply any omitted information and correct patent errors in any documents
      executed by any Assignor or on any Assignor’s behalf; (ii) to file financing
      statements against such Assignor covering the Collateral (and, in connection
      with the filing of any such financing statements, describe the Collateral as
      “all assets and all personal property, whether now owned and/or hereafter
      acquired” (or any substantially similar variation thereof)); (iii) to sign such
      Assignor’s name on any invoice or bill of lading relating to any accounts
      receivable, drafts against account debtors, schedules and assignments of
      accounts receivable, notices of assignment, financing statements and other
      public records, verifications of accounts receivable and notices to or from
      account debtors and (iv) to do all other things the Agent deems necessary to
      carry out the terms of this Master Security Agreement and (b) upon the
      occurrence and during the continuance of an Event of Default; (i) endorse such
      Assignor’s name on any checks, notes, acceptances, money orders, drafts or other
      forms of payment or security that may come into the Agent’s possession; (ii)
      sign such Assignor’s name on any invoice or bill of lading relating to any
      accounts receivable, drafts against account debtors, schedules and assignments
      of accounts receivable, notices of assignment, financing statements and other
      public records, verifications of accounts receivable and notices to or from
      account debtors; (iii) verify the validity, amount or any other matter relating
      to any accounts receivable by mail, telephone, telegraph or otherwise with
      account debtors; (iv) do all other things necessary to carry out this Master
      Security Agreement, any other Related Agreement and all other related documents;
      and (v) notify the post office authorities to change the address for delivery
      of
      such Assignor’s mail to an address designated by the Agent, and to receive, open
      and dispose of all mail addressed to such Assignor. Each Assignor hereby
      ratifies and approves all acts of the attorney and neither the Agent nor the
      attorney will be liable for any acts of commission or omission, nor for any
      error of judgment or mistake of fact or law other than gross negligence or
      willful misconduct (as determined by a court of competent jurisdiction in a
      final and non-appealable decision). This power being coupled with an interest,
      is irrevocable so long as any of the Obligations remains unpaid.

     

    10. No
      delay
      or failure on the Agent’s part in exercising any right, privilege or option
      hereunder shall operate as a waiver of such or of any other right, privilege,
      remedy or option, and no waiver whatever shall be valid unless in writing,
      signed by the Agent and then only to the extent therein set forth, and no waiver
      by the Agent of any default shall operate as a waiver of any other default
      or of
      the same default on a future occasion. The Agent’s books and records containing
      entries with respect to the Obligations shall be admissible in evidence in
      any
      action or proceeding, shall be binding upon each Assignor for the purpose of
      establishing the items therein set forth and shall constitute prima facie proof
      thereof. The Agent shall have the right to enforce any one or more of the
      remedies available to the Agent, successively, alternately or concurrently.
      Each
      Assignor agrees to join with the Agent in executing such documents or other
      instruments to the extent required by the UCC in form reasonably satisfactory
      to
      the Agent and in executing such other documents or instruments as may be
      required or deemed necessary, in each case in the exercise of the Agent’s
      reasonable discretion, by the Agent for purposes of affecting or continuing
      the
      Agent’s security interest in the Collateral.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    11. The
      Assignors shall jointly and severally pay all of the Agent’s or any Purchaser’s
      out-of-pocket costs and expenses, including reasonable fees and disbursements
      of
      in-house or outside counsel and appraisers, in connection with the preparation,
      execution and delivery of the Documents, and in connection with the prosecution
      or defense of any action, contest, dispute, suit or proceeding concerning any
      matter in any way arising out of, related to or connected with any Document.
      The
      Assignors shall also jointly and severally pay all of the Agent’s or any
      Purchaser’s reasonable fees, charges, out-of-pocket costs and expenses,
      including fees and disbursements of counsel and appraisers, in connection with
      (a) the preparation, execution and delivery of any waiver, any amendment thereto
      or consent proposed or executed in connection with the transactions contemplated
      by the Documents, (b) the Agent’s obtaining performance of the Obligations under
      the Documents, including, but not limited to the enforcement or defense of
      the
      Agent’s security interests, assignments of rights and liens hereunder as valid
      perfected security interests, (c) any attempt to inspect, verify, protect,
      collect, sell, liquidate or otherwise dispose of any Collateral, (d) any
      appraisals or re-appraisals of any property (real or personal) pledged to the
      Agent by any Assignor as Collateral for, or any other Person as security for,
      the Obligations hereunder and (e) any consultations in connection with any
      of
      the foregoing. The Assignors shall also jointly and severally pay the Agent’s or
      any Purchaser’s customary bank charges for all bank services (including wire
      transfers) performed or caused to be performed by the Agent or any Purchaser
      for
      any Assignor at any Assignor’s request or in connection with any Assignor’s loan
      account (if any) with any Creditor Party. All such costs and expenses together
      with all filing, recording and search fees, taxes and interest payable by the
      Assignors to any Creditor Party shall be payable on demand and shall be secured
      by the Collateral. If any tax by any nation or government, any state or other
      political subdivision thereof, and any agency, department or other entity
      exercising executive, legislative, judicial, regulatory or administrative
      functions of or pertaining to government (each, a “Governmental
      Authority”)
      is or
      may be imposed on or as a result of any transaction between any Assignor, on
      the
      one hand, and any Creditor Party on the other hand, which such Creditor Party
      is
      or may be required to withhold or pay, the Assignors hereby jointly and
      severally indemnify and hold such Creditor Party harmless in respect of such
      taxes, and the Assignors will repay to such Creditor Party the amount of any
      such taxes which shall be charged to the Assignors’ account; and until the
      Assignors shall furnish such Creditor Party with indemnity therefor (or supply
      such Creditor Party with evidence satisfactory to it that due provision for
      the
      payment thereof has been made), such Creditor Party may hold without interest
      any balance standing to each Assignor’s credit (if any) and the Agent shall
      retain its liens in any and all Collateral.

     

    12. THIS
      MASTER SECURITY AGREEMENT 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.
      All of the rights, remedies, options, privileges and elections given to the
      Agent hereunder shall inure to the benefit of the Agent’s successors and
      assigns. The term “Agent”
      as
      herein used shall include the Agent, any parent of the Agent, any of the Agent’s
      subsidiaries and any co-subsidiaries of the Agent’s parent, whether now existing
      or hereafter created or acquired, and all of the terms, conditions, promises,
      covenants, provisions and warranties of this Master Security Agreement shall
      inure to the benefit of each of the foregoing, and shall bind the
      representatives, successors and assigns of each Assignor.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    13. Each
      Assignor 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 Assignor, on the one hand,
      and
      any Creditor Party, on the other hand, pertaining to this Master Security
      Agreement or to any matter arising out of or related to this Master Security
      Agreement, provided, that each Creditor Party and each Assignor 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 Master Security Agreement shall be deemed or operate to preclude
      the Agent from bringing suit or taking other legal action in any other
      jurisdiction to collect, the Obligations, to realize on the Collateral or any
      other security for the Obligations, or to enforce a judgment or other court
      order in favor of the Agent. Each Assignor expressly submits and consents in
      advance to such jurisdiction in any action or suit commenced in any such court,
      and each Assignor hereby waives any objection which it may have based upon
      lack
      of personal jurisdiction, improper venue or forum non conveniens.
      Each
      Assignor hereby waives personal service of the summons, complaint and other
      process issues 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 assignor at the address set forth on the signature lines
      hereto and that service so made shall be deemed completed upon the earlier
      of
      such Assignor’s actual receipt thereof or three (3) days after deposit in the
      U.S. mails, proper postage prepaid.

     

    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 Assignor arising out of, connected with, related or incidental to
      the
      relationship established between them in connection with this Master Security
      Agreement or the transactions related hereto.

     

    14. It
      is
      understood and agreed that any person or entity that desires to become an
      Assignor hereunder, or is required to execute a counterpart of this Master
      Security Agreement after the date hereof pursuant to the requirements of any
      Document, shall become an Assignor hereunder by (a) executing a Joinder
      Agreement in form and substance satisfactory to the Agent, (b) delivering
      supplements to such exhibits and annexes to such Documents as the Agent shall
      reasonably request and (c) taking all actions as specified in this Master
      Security Agreement as would have been taken by such Assignor had it been an
      original party to this Master Security Agreement, in each case with all
      documents required above to be delivered to the Agent and with all documents
      and
      actions required above to be taken to the reasonable satisfaction of the
      Agent.

     

    15. All
      notices from the Agent to any Assignor shall be sufficiently given if mailed
      or
      delivered to such Assignor’s address set forth below.

     

    [Balance
      of Page Intentionally Left Blank; Signature Page Follows]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    16. This
      Master Security 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.

    
      	 	 	 
	 	
              Very
                truly yours,

               

              TRUE
                NORTH ENERGY CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	/s/
              John
              I. Folnovic
	 	
              

              Name:
                John I. Folnovic

              Title:
                President and CEO

            
	 	 
	 	
              Address:

              1400
                Woodloch Forest Drive

              Suite
                530

              The
                Woodlands, TX 77380

              Attention:
                Executive Officer

              Facsimile:
                (832) 553-7244

            

    

     

    
      	 	 	 
	 	
              ICF
                ENERGY CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	/s/
              John
              I. Folnovic
	 	
              

              Name:
                John I. Folnovic

              Title:
                President and CEO

            
	 	 
	 	
              Address:

              c/o
                True North Energy Corporation

              1400
                Woodloch Forest Drive

              Suite
                530

              The
                Woodlands, TX 77380

              Attention:
                Executive Officer

              Facsimile:
                (832) 553-7244

            

    

     

    [Signatures
      Continue on the Following Page.]

    
      
        
        

      

      
        13

        
          

        

      

       

    

     

    
      	 	 	 
	 	
              ACKNOWLEDGED:

               

              VALENS
                U.S. SPV I, LLC, as Agent and as a Purchaser

            
	 	 	 
	 	
              By:

            	
              Valens
                Capital Management, LLC, as investment manager

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Eugene Grin
	 	
              

              Name:
                Eugene Grin

              Title:
                Authorized Signatory

            
	 	 
	 	
              Address:

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th
                Floor

              New
                York, New York 10017

            

    

     

    
      	 	 	 
	 	
              VALENS
                OFFSHORE SPV II, CORP., as a Purchaser

            
	 	 	 
	 	
              By:

            	
              Valens
                Capital Management, LLC, as investment manager

            
	 
 	 
 	 
 
	
            	By:  	/s/ Eugene Grin
	 	
              

              Name:
                Eugene Grin

              Title:
                Authorized Signatory

            
	 	
            
	 	
              Address:

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th
                Floor

              New
                York, New York 10017

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    to

    MASTER
      SECURITY AGREEMENT

    by

    ICF
      ENERGY CORPORATION

    and

    TRUE
      NORTH ENERGY CORPORATION

    

    Part
      I

    Brazoria
      County, TX

    

    
      	
              Oil
                and Gas Leases and Minerals

              (all
                recording references are to the Official Records of Brazoria County,
                Texas)

               

            
	
              Lessor

            	 	
              Lessee

            	 	
              Lease
                Date

            	 	
              Recording
                Information

            
	
              Eugenia
                T. Whitlock Trust

            	 	
              Roger
                A Soape Inc

            	 	
              03/20/00

            	 	
              00
                018426

            
	 	 	 	 	 	 	 
	
              Cornelia
                H. Decker , et al

            	 	
              Roger
                A Soape Inc

            	 	
              03/20/00

            	 	
              00
                021735

            
	 	 	 	 	 	 	 
	
              Sylvia
                A. Woodruff

            	 	
              Roger
                A Soape Inc

            	 	
              03/02/00

            	 	
              00
                013450

            
	 	 	 	 	 	 	 
	
              Billie
                Glenn Cornman

            	 	
              Roger
                A Soape Inc

            	 	
              03/02/00

            	 	
              00
                015575

            
	 	 	 	 	 	 	 
	
              Vera
                Carmel Brown

            	 	
              Roger
                A Soape Inc

            	 	
              03/02/00

            	 	
              00
                015576

            
	 	 	 	 	 	 	 
	
              Ernest
                E. Freeman, et ux

            	 	
              Roger
                A Soape Inc

            	 	
              03/02/00

            	 	
              00
                015577

            
	 	 	 	 	 	 	 
	
              J.
                H. Rayburn Jr, et al

            	 	
              Roger
                A Soape Inc

            	 	
              02/17/00

            	 	
              00
                013453

            
	 	 	 	 	 	 	 
	
              Mary
                L. Chase

            	 	
              Roger
                A Soape Inc

            	 	
              02/24/00

            	 	
              00
                024490

            
	 	 	 	 	 	 	 
	
              J.
                H. Rayburn, Jr.

            	 	
              Roger
                A Soape Inc

            	 	
              02/17/00

            	 	
              00
                018427

            
	 	 	 	 	 	 	 
	
              Jack
                S. Josey

            	 	
              Roger
                A Soape Inc

            	 	
              07/25/00

            	 	
              00
                044259

            
	 	 	 	 	 	 	 
	
              J.
                Shelby Bryan

            	 	
              Roger
                A Soape Inc

            	 	
              07/28/00

            	 	
              00
                044258

            
	 	 	 	 	 	 	 
	
              Josephine
                S Masterson

            	 	
              Roger
                A Soape Inc

            	 	
              09/18/00

            	 	
              01
                036412

            
	 	 	 	 	 	 	 
	
              Kay
                C. Foster

            	 	
              Roger
                A Soape Inc

            	 	
              02/05/00

            	 	
              00
                013451

            
	 	 	 	 	 	 	 
	
              Marjorie
                Persson, et al

            	 	
              Roger
                A Soape Inc

            	 	
              02/06/00

            	 	
              00
                013452

            
	 	 	 	 	 	 	 
	
              Michael
                M. Martin

            	 	
              Roger
                A Soape Inc

            	 	
              03/17/00

            	 	
              00
                018428

            
	 	 	 	 	 	 	 
	
              William
                Polk Martin

            	 	
              Roger
                A Soape Inc

            	 	
              03/17/00

            	 	
              00
                018429

            
	 	 	 	 	 	 	 
	
              Thomas
                Masterson, III, et al

            	 	
              Roger
                A Soape Inc

            	 	
              07/17/00

            	 	
              00
                033346

            
	 	 	 	 	 	 	 
	
              Peter
                M. Turnbull

            	 	
              Roger
                A Soape Inc

            	 	
              07/11/00

            	 	
              00
                039724

            
	 	 	 	 	 	 	 
	
              Gloria
                C. Wilburn

            	 	
              Roger
                A Soape Inc

            	 	
              08/10/00

            	 	
              00
                039725

            
	 	 	 	 	 	 	 
	
              Lynne
                Fisher Echegaray

            	 	
              Roger
                A Soape Inc

            	 	
              08/15/00

            	 	
              00
                044257

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

      	
              Oil
                and Gas Leases and Minerals

              (all
                recording references are to the Official Records of Brazoria County,
                Texas)

               

            
	
              Lessor

            	 	
              Lessee

            	 	
              Lease
                Date

            	 	
              Recording
                Information

            

    

    
      	
              Betsy
                Schwarz Vaughan, et al

            	 	
              Roger
                A Soape Inc

            	 	
              08/26/00

            	 	
              00
                046881

            
	 	 	 	 	 	 	 
	
              Compass
                Bank Trustee

            	 	
              Prime
                Natural Resources Inc

            	 	
              12/20/00

            	 	
              01
                037779

            
	 	 	 	 	 	 	 
	
              Mary
                Nell Enlow Boyd

            	 	
              Roger
                A Soape Inc

            	 	
              03/01/03

            	 	
              03
                017685

            
	 	 	 	 	 	 	 
	
              Robert
                M. Davant Jr., et al

            	 	
              Roger
                A Soape Inc

            	 	
              06/23/00

            	 	
              00
                033342

            
	 	 	 	 	 	 	 
	
              Elizabeth
                L. Howe

            	 	
              Roger
                A Soape Inc

            	 	
              07/01/00

            	 	
              00
                033343

            
	 	 	 	 	 	 	 
	
              Amelia
                Ann Sundberg

            	 	
              Roger
                A Soape Inc

            	 	
              07/01/00

            	 	
              00
                033344

            
	 	 	 	 	 	 	 
	
              Valerie
                L. Hundley

            	 	
              Roger
                A Soape Inc

            	 	
              07/01/00

            	 	
              00
                033345

            
	 	 	 	 	 	 	 
	
              Mary
                L. Crecy

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/01/02

            	 	
              02
                025904

            
	 	 	 	 	 	 	 
	
              James
                T. Little

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/03/02

            	 	
              02
                025905

            
	 	 	 	 	 	 	 
	
              Mary
                Lou Eckerdt

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/02/02

            	 	
              02
                025906

            
	 	 	 	 	 	 	 
	
              Betty
                Lou Patterson

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                025907

            
	 	 	 	 	 	 	 
	
              John
                W. Berry Jr

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                025908

            
	 	 	 	 	 	 	 
	
              Robert
                Little

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                025909

            
	 	 	 	 	 	 	 
	
              Lewis
                B. Demille

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                025910

            
	 	 	 	 	 	 	 
	
              Norma
                Lathrop

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                019489

            
	 	 	 	 	 	 	 
	
              James
                F. Lathrop, Jr.

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                019490

            
	 	 	 	 	 	 	 
	
              Holy
                Comforter Episcopal

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/05/02

            	 	
              02
                019492

            
	 	 	 	 	 	 	 
	
              Anne
                H Mealey

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                019493

            
	 	 	 	 	 	 	 
	
              Louise
                A. Miller

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                019494

            
	 	 	 	 	 	 	 
	
              George
                Loe

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                029006

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              Oil
                and Gas Leases and Minerals

              (all
                recording references are to the Official Records of Brazoria County,
                Texas)

               

            
	
              Lessor

            	 	
              Lessee

            	 	
              Lease
                Date

            	 	
              Recording
                Information

            

    

    
      	
              Laura
                Ruth Haynie

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/04/02

            	 	
              02
                033083

            
	 	 	 	 	 	 	 
	
              Paris
                Eugene Smith

            	 	
              Prime
                Natural Resources Inc

            	 	
              06/03/02

            	 	
              02
                033084

            
	 	 	 	 	 	 	 
	
              Sarah
                Janin Wilson Zerr

            	 	
              Prime
                Natural Resources Inc

            	 	
              06/03/02

            	 	
              02
                039347

            
	 	 	 	 	 	 	 
	
              K.
                Wortham Smith

            	 	
              Prime
                Natural Resources Inc

            	 	
              06/03/02

            	 	
              02
                043286

            
	 	 	 	 	 	 	 
	
              Floyd
                Fiser, Jr.

            	 	
              Prime
                Natural Resources Inc

            	 	
              10/23/02

            	 	
              03
                003092

            
	 	 	 	 	 	 	 
	
              Corinne
                Laurie Brierley

            	 	
              Prime
                Natural Resources Inc

            	 	
              10/23/02

            	 	
              03
                003091

            
	 	 	 	 	 	 	 
	
              Fern
                Fletcher

            	 	
              Prime
                Natural Resources Inc

            	 	
              02/21/03

            	 	
              03
                022644

            
	 	 	 	 	 	 	 
	
              Shirley
                W. Fiser, et al

            	 	
              Prime
                Natural Resources Inc

            	 	
              10/23/02

            	 	
              03
                026623

            
	 	 	 	 	 	 	 
	
              Herman
                Bell, et ux

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/07/02

            	 	
              02
                019491

            
	 	 	 	 	 	 	 
	
              Jimmy
                Phillips, Jr.

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/04/02

            	 	
              02
                019495

            
	 	 	 	 	 	 	 
	
              Michael
                Phillips

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/04/02

            	 	
              02
                019496

            
	 	 	 	 	 	 	 
	
              Arthur
                Ray Clark, Sr., et ux

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/09/02

            	 	
              02
                029005

            
	 	 	 	 	 	 	 
	
              Peggy
                Gupton Boone

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/21/02

            	 	
              02-029001

            
	 	 	 	 	 	 	 
	
              Dolores
                Gupton Rader

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/21/02

            	 	
              02-029002

            
	 	 	 	 	 	 	 
	
              Kirby
                W. Gupton

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/06/02

            	 	
              02
                029003

            
	 	 	 	 	 	 	 
	
              Denise
                Gupton Ingram

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/18/02

            	 	
              02
                029004

            
	 	 	 	 	 	 	 
	
              Earnestine
                Grise Randon

            	 	
              Prime
                Natural Resources Inc

            	 	
              03/09/02

            	 	
              02-029000

            
	 	 	 	 	 	 	 
	
              Devon
                Energy Production Co.

            	 	
              Prime
                Natural Resources Inc

            	 	
              04/29/02

            	 	
              02
                049386

            
	 	 	 	 	 	 	 
	
              Anthony
                Alexander, Sr.

            	 	
              Prime
                Natural Resources Inc

            	 	
              04/24/02

            	 	
              02
                031957

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

      	
              Oil
                and Gas Leases and Minerals

              (all
                recording references are to the Official Records of Brazoria County,
                Texas)

               

            
	
              Lessor

            	 	
              Lessee

            	 	
              Lease
                Date

            	 	
              Recording
                Information

            

    

    
      	
              Josephine
                Masterson

            	 	
              Prime
                Natural Resources Inc

            	 	
              04/23/02

            	 	
              02
                039348

            
	 	 	 	 	 	 	 
	
              Jack
                S. Josey

            	 	
              Prime
                Natural Resources Inc

            	 	
              05/03/02

            	 	
              02
                039349

            
	 	 	 	 	 	 	 
	
              J.
                Shelby Bryan

            	 	
              Prime
                Natural Resources Inc

            	 	
              06/14/02

            	 	
              02
                055294

            
	 	 	 	 	 	 	 
	
              Eugenia
                T. Whitlock Trust

            	 	
              Prime
                Natural Resources Inc

            	 	
              04/22/02

            	 	
              03
                010299

            
	 	 	 	 	 	 	 
	
              Ethel
                F. Graham, Indep. Exec.

            	 	
              Prime
                Natural Resources Inc

            	 	
              11/15/03

            	 	
              03
                078513

            
	 	 	 	 	 	 	 
	
              Devon
                Energy Production Co.

            	 	
              Prime
                Natural Resources Inc

            	 	
              04/02/03

            	 	
              03
                023650

            
	 	 	 
	
              Fee
                Mineral Tract

            	 	
              All
                of Prime Natural Resources, Inc. interest in 316.85 acres, more or
                less
                out of the S. F. Austin League No. 48. being the same lands conveyed
                to
                Prime Natural Resources, Inc. by Mineral and Royalty Deed from Roger
                A.
                Soape, Inc. dated July 18, 2003, recorded as Document No. 03 046145
                of the
                Official Records of Brazoria County, Texas.

            
	 
	
              Units

            
	 	 	 
	
              O’
                Leary Unit No. 1

            	 	
              662
                acres of land, more or less, out of the Stephen F. Austin League
                No. 48,
                A-26 and the George Harrison Survey, A-73, Brazoria County, Texas,
                described in that certain Designation of Unit (O’Leary Gas Unit) filed
                June 13, 2003, recorded under Clerk’s File No. 03-035767, as amended by
                documents recorded under Clerk’s File Nos. 03-046147 and 2004020014 of the
                Official Records of Brazoria County, Texas.

            
	 	 	 
	
              Devon
                Fee Gas Unit

            	 	
              401.85
                acres, more or less, out of the Stephen F. Austin League No. 48,
                A-26,
                Brazoria County, Texas, being the Devon Fee Gas Unit as described
                in that
                certain designation of Unit dated April 28, 2004, recorded at Entry
                2004024815, in the Official Records of Brazoria County,
                Texas.

            

    

     

    Wells

    

    
      	
              Well

            	 	
              API
                Well No.

            	 	
              Working
                Interest

            	 	
              Net
                Revenue Interest

            
	
              O’Leary
                Unit No. 1

            	 	
              42-039-32803

            	 	
              40.6700%

            	 	
              29.0120%

            
	
              Devon
                Fee No. 1

               

               

            	 	
              42-039-32823

            	 	
              75.0000%

            	 	
              60.4500%*

               

              Includes
                fee minerals

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Contracts

    

    DEVON
      FEE NO. 1

    

    
      	 	
              1.

            	
              Gas
                Transportation Agreement
                dated August 1, 2007, between Sweeny Gathering, L.P.. and Prime Natural
                Resources, Inc.

            

    

    

    
      	 	
              2.

            	
              Participation
                Agreement
                dated October 1, 2003 between Burk Davis Gulf Coast and Prime Natural
                Resources, Inc.

            

    

    

    
      	 	
              3.

            	
              Joint
                Operating Agreement
                dated October 1, 2003 between Davis Gulf Coast and Prime Natural
                Resources, Inc.

            

    

    

    
      	 	
              4.

            	
              Crude
                Oil Sales Contract dated
                May 24, 2004 between Cokinos Oil Company and Prime Natural Resources,
                Inc.

            

    

    

    
      	 	
              5.

            	
              Gas
                Sales Contract
                dated May 24, 2004 between Prime Natural Resources, Inc. and Cokinos
                Oil
                Company

            

    

     

    O’LEARY
      GAS UNIT

    

    
      	 	
              1.

            	
              Crude
                Oil Sales Contract dated
                June 25, 2007 between Cokinos Oil Company and Prime Natural Resources,
                Inc.

            

    

    

    
      	 	
              2.

            	
              Joint
                Operating Agreement
                dated February 14, 2003 between Davis Gulf Coast and Prime Natural
                Resources, Inc.

            

    

    

    
      	 	
              3.

            	
              Letter
                Agreement
                dated May 2, 2003 between Davis Gulf Coast and Prime Natural Resources,
                Inc.

            

    

    

    
      	 	
              4.

            	
              Letter
                Agreement
                dated March 13, 2003 between Davis Gulf Coast and Prime Natural Resources,
                Inc.

            

    

    

    
      	 	
              5.

            	
              Letter
                of Intent
                dated February 10, 2003 between Davis Gulf Coast and Prime Natural
                Resources, Inc. 

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6.

            	
              Sales
                Letter
                dated May 1, 2003 between Hilcorp and Prime Natural Resources, Inc.
                

            

    

    

    PROSPECTS
      

    

    
      	 	
              1.

            	
              Letter
                Agreement
                dated May 1, 2003 between Hilcorp and Prime Natural Resources, Inc.
                

            

    

    
      
        
        

      

      
        20

        
          

        

      

       

    

     

    Part
      2

    Moffat
      County, Colorado

     

    Oil
      and
      Gas Leases 

     

    An
      undivided 100 % of the leasehold estate (record title and operating rights)
      created by the following described Oil and Gas Leases covering the following
      described Lands:

    

      
        	
                Lessor:

              	 	
                United
                  States of America COC-69739

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                July
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075039

              
	 	 	
                Description:

              	 	
                T5N-R97W,
                  6th PM

              
	 	 	 	 	
                Section
                  28: W/2 NW/4

              
	 	 	 	 	
                Section
                  29: E/2 NE/4; W/2 E/2; S/2 NW/4; SW/4

              
	 	 	 	 	
                Section
                  30: Lots 5, 6, 7 and 8; S/2 NE/4; E/2 W/2;
                  SE/4

              

      

       

      
        	
                Lessor:

              	 	
                United
                  States of America COC-69740

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                July
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075040

              
	 	 	
                Description:

              	 	
                T5N-R97W,
                  6th PM

              
	 	 	 	 	
                Section
                  31: Lots 5, 6, 7 and 8; E/2; E/2
                  W/2

              

      

       

      
        	
                Lessor:

              	 	
                United
                  States of America COC-69741

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075041

              
	
                 

              	 	
                Description:

              	 	
                T5N-R97W,
                  6th PM

              
	 	 	 	 	
                Section
                  32: W/2 E/2; W/2; SE/4 SE/4

              
	 	 	 	 	
                Section
                  33: W/2 E/2; E/2 W/2; SW/4 NW/4; W/2
                  SW/4

              

      

       

      
        	
                Lessor:

              	 	
                United
                  States of America COC-69744

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075042

              
	 	 	
                Description:

              	 	
                T4N-R98W,
                  6th PM

              
	 	 	 	 	
                Section
                  25: Lots 1, 3 and 5; N/2; N/2 S/2; SW/4 SW/4

              
	 	 	 	 	
                Section
                  26: SE/4 NE/4; E/2 SE/4

              
	 	 	 	 	
                Section
                  35: E/2 E/2

              
	 	 	 	 	
                Section
                  36: Lots 4, 5, 12, 13, 16 and 18; W/2
                  W/2

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	
                Lessor:

              	 	
                United
                  States of America COC-69746

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                July
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075043

              
	 	 	
                Description:

              	 	
                T4N-R98W,
                  6th PM

              
	 	 	 	 	
                Section
                  11: Lots 5, 6, 7 and 8; S/2

              
	 	 	 	 	
                Section
                  12: Lots 5, 6, 7 and 8; S/2

              
	 	 	 	 	
                Section
                  13: All

              
	 	 	 	 	
                Section
                  14: All

              
	 	 	 	 	 
	
                Lessor:

              	 	
                United
                  States of America COC-69749

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075044

              
	 	 	
                Description:

              	 	
                T4N-R98W,
                  6th PM

              
	 	 	 	 	
                Section
                  23: N/2; SW/4

              
	 	 	 	 	
                Section
                  24: All

              
	 	 	 	 	 
	
                Lessor:

              	 	
                United
                  States of America COC-69751

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075045

              
	 	 	
                Description:

              	 	
                T4N-R98W

              
	 	 	 	 	
                Section
                  27: All

              
	 	 	 	 	
                Section
                  28: All

              
	 	 	 	 	 
	
                Lessor:

              	 	
                United
                  States of America COC-69752

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075046

              
	 	 	
                Description:

              	 	
                T4N-R98W,
                  6th PM

              
	 	 	 	 	
                Section
                  29: S/2 N/2; S/2

              
	 	 	 	 	
                Section
                  30: Lots 7, 8 and 10; S/2 NE/4; NE/4 SW/4; 

              
	 	 	 	 	
                SE/4

              
	 	 	 	 	
                Section
                  31: Lots 8, 9, 14, 15 and 20; E/2

              
	 	 	 	 	
                Section
                  32: All

              
	 	 	 	 	 
	
                Lessor:

              	 	
                United
                  States of America COC-69753

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075047

              
	 	 	
                Description:

              	 	
                T4N-R98W,
                  6th PM

              
	 	 	 	 	
                Section
                  33: All

              
	 	 	 	 	
                Section
                  34: All

              

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	
                Lessor:

              	 	
                United
                  States of America COC-69758

              
	 	 	
                Lessee:

              	 	
                DEP
                  Mineral Services, Inc.

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075048

              
	 	 	
                Description:

              	 	
                T5N-R98W,
                  6th PM

              
	 	 	 	 	
                Section
                  11: NE/4; E/2 NW/4; NW/4 NW/4; NE/4 SW/4; 

              
	 	 	 	 	
                N/2
                  SE/4

              
	 	 	 	 	
                Section
                  12: W/2

              
	 	 	 	 	
                Section
                  14: NW/4 NW/4

              
	 	 	 	 	
                Section
                  15: E/2 NE/4

              
	 	 	 	 	 
	
                Lessor:

              	 	
                United
                  States of America COC-69784

              
	 	 	
                Lessee:

              	 	
                Constance
                  N. Knight

              
	 	 	
                Date:

              	 	
                December
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075038

              
	 	 	
                Description:

              	 	
                T5N-R99W,
                  6th PM

              
	 	 	 	 	
                Section
                  27: All

              
	 	 	 	 	
                Section
                  28: All

              
	 	 	 	 	
                Section
                  33: All

              
	 	 	 	 	
                Section
                  34: All

              
	 	 	 	 	 
	
                Lessor:

              	 	
                United
                  States of America COC-69426

              
	 	 	
                Lessee:

              	 	
                Over
                  The Hill Land Services, LLC

              
	 	 	
                Date:

              	 	
                August
                  1, 2006

              
	 	 	
                Recorded:

              	 	
                Reception
                  No. 20075037

              
	 	 	
                Description:

              	 	
                T4N-R97W,
                  6th PM

              
	 	 	 	 	
                Section
                  17: N/2; N/2 SE/4; SW/4

              
	 	 	 	 	
                Section
                  18: Lots 5, 6, 7 and 8; E/2 W/2; E/2

              
	 	 	 	 	
                Section
                  19: Lots 5, 6, 7 and 8; E/2 W/2; E/2

              
	 	 	 	 	
                Section
                  20: W/2; SE/4

              

      

      
         

        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

    

    Part
      3

    Alaska

    

    Anchorage
      Recording District

    Third
      Judicial District

     

    
      	
              Oil
                and Gas Leases

              (all
                recording references are to Official Records of the Anchorage Recording
                District, Alaska)

               

            
	
              Lease
                Number

            	
               

            	
              Grantor

            	
               

            	
              Grantee

            	
               

            	
              Lease
                Date

            	
               

            	
              Recording
                Information

            
	
              ADL
                389932

            	 	
              SOA

            	 	
              Richard
                E. Wagner

            	 	
              01/01/02

            	 	
              2007-058530-0

            
	
              ADL
                390087

            	 	
              SOA

            	 	
              Monte
                J. Allen

            	 	
              12/01/02

            	 	
              2007-058531-0

            
	
              ADL
                390567

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Kenneth
                A. Mehaffey

              George
                Kasper

            	 	
              06/01/05

            	 	
              2007-058532-0

            
	
              ADL
                390722

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

              Robert
                James Newman

              H.
                Jerry Hodgden

            	 	
              10/01/06

            	 	
              2007-058533-0

            
	
              ADL
                390723

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

              Robert
                James Newman

              H.
                Jerry Hodgden

            	 	
              10/01/06

            	 	
              2007-058534-0

            
	
              ADL
                390745

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

            	 	
              10/01/06

            	 	
              2007-058535-0

            
	
              ADL
                390572

            	 	
              SOA

            	 	
              Monte
                J. Allen

            	 	
              10/01/06

            	 	
              2007-058536-0

            
	
              ADL
                390383

            	 	
              SOA

            	 	
              Douglas
                A. Barr

              Daniel
                K. Donkel

              George
                Kasper

              Robert
                O. Bolt

            	 	
              10/01/03

            	 	
              2007-058537-0

            

    

    

    Barrow
      Recording District

    Second
      Judicial District

     

    
      	
              Oil
                and Gas Leases

              (all
                recording references are to Official Records of the Barrow Recording
                District, Alaska)

               

            
	
              Lease
                Number

            	
               

            	
              Grantor

            	
               

            	
              Grantee

            	
               

            	
              Lease
                Date

            	
               

            	
              Recording
                Information

            
	
              ADL
                390834

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

            	 	
              03/01/07

            	 	
              2007-000320-0

            
	
              ADL
                390839

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

            	 	
              03/01/07

            	 	
              2007-000321-0

            
	
              ADL
                390840

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

            	 	
              03/01/07

            	 	
              2007-000322-0

            
	
              ADL
                390841

            	 	
              SOA

            	 	
              Daniel
                K. Donkel

              Samuel
                H. Cade

            	 	
              03/01/07

            	 	
              2007-000323-0

            

    

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

     

    
      	
              Entity

            	 	
              Jurisdiction
                of 

              Formation

            	 	
              Organization
                Identification Number

            
	
              True
                North Energy Corporation

            	 	
              Nevada

            	 	
              C9161-2004

            
	
              ICF
                Energy Corporation

            	 	
              Texas

            	 	
              800864855

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    
       

      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      C

     

    COMMERCIAL
      TORT CLAIMS

     

    None.Exhibit
      10.11

     

    FUNDS
      ESCROW AGREEMENT

     

    This
      Agreement (this “Agreement”)
      is
      dated as of the 18th day of September, 2007 among True North Energy Corporation,
      a Nevada corporation (“TNEC”),
      ICF
      Energy Corporation, a Texas corporation (“ICF”;
      and
      together with TNEC, the “Companies”
and
      each a “Company”),
      Valens U.S. SPV I, LLC, a Delaware limited liability company (“Valens
      U.S.”),
      Valens Offshore SPV II, Corp, a Delaware corporation (“Valens
      Offshore”;
      and
      together with Valens U.S., collectively, the “Purchasers”
and
      each a “Purchaser”),
      and
      Loeb & Loeb LLP (the “Escrow
      Agent”):

     

    WITNESSETH:

     

    WHEREAS,
      the Purchasers have advised the Escrow Agent that (a) the Companies, the
      Purchasers and Valens U.S., as agent for the Purchasers have entered into a
      Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      for
      the sale by the Companies to each Purchaser of a secured term note
      (collectively, the “Term
      Notes”),
      (b)
      each Company has
      issued to each Purchaser two (2) common stock purchase warrants (collectively,
      the “Warrants”)
      in
      connection with the issuance of each Term Note, and (c) each Company and each
      Purchaser have entered into various Registration Rights Agreements covering
      the
      registration of such Company’s common stock underlying each of the Warrants (the
“Registration
      Rights Agreements”);

     

    WHEREAS,
      the Companies and the Purchasers wish to deliver to the Escrow Agent copies
      of
      the Documents (as hereafter defined) and, following the satisfaction of all
      closing conditions relating to the Documents, the Purchasers to deliver the
      Escrowed Payment (as hereafter defined), in each case, to be held and released
      by Escrow Agent in accordance with the terms and conditions of this Agreement;
      and

     

    WHEREAS,
      the Escrow Agent is willing to serve as escrow agent pursuant to the terms
      and
      conditions of this Agreement;

     

    NOW
      THEREFORE, the parties agree as follows:

     

    ARTICLE
      I

     

    INTERPRETATION

     

    1.1. Definitions.
      Whenever used in this Agreement, the following terms shall have the meanings
      set
      forth below.

     

    (a) “Agreement”
      means this Agreement, as amended, modified and/or supplemented from time to
      time
      by written agreement among the parties hereto.

     

    (b) “Disbursement
      Letter” means that certain letter delivered to the Escrow Agent by the
      Companies, acceptable in form and substance to each Purchaser, setting forth
      wire instructions and amounts to be funded at the Closing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) “Documents”
      means copies of the Disbursement Letter, the Securities Purchase Agreement,
      the
      Term Notes, the Warrants and the Registration Rights Agreements.

     

    (d) “Escrowed
      Payment” means $3,750,000.

     

    (e) “Purchaser
      Payments” means the payments to be paid to each Purchaser, as set forth on
      Schedule A hereto.

     

    (f) “VCM
      Payment” means the payment to be paid to Valens Capital Management, LLC, the
      fund manager, as set forth on Schedule A hereto.

     

    1.2. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement among the parties hereto with respect
      to the arrangement with the Escrow Agent and supersedes all prior agreements,
      understandings, negotiations and discussions of the parties, whether oral or
      written with respect to the arrangement with the Escrow Agent. There are no
      warranties, representations and other agreements made by the parties in
      connection with the arrangement with the Escrow Agent except as specifically
      set
      forth in this Agreement.

     

    1.3. Extended
      Meanings.
      In this
      Agreement words importing the singular number include the plural and vice versa;
      words importing the masculine gender include the feminine and neuter genders.
      The word “person” includes an individual, body corporate, partnership, trustee
      or trust or unincorporated association, executor, administrator or legal
      representative.

     

    1.4. Waivers
      and Amendments.
      This
      Agreement may be amended, modified, superseded, cancelled, renewed or extended,
      and the terms and conditions hereof may be waived, in each case only by a
      written instrument signed by all parties hereto, or, in the case of a waiver,
      by
      the party waiving compliance. Except as expressly stated herein, no delay on
      the
      part of any party in exercising any right, power or privilege hereunder shall
      operate as a waiver thereof, nor shall any waiver on the part of any party
      of
      any right, power or privilege hereunder preclude any other or future exercise
      of
      any other right, power or privilege hereunder.

     

    1.5. Headings.
      The
      division of this Agreement into articles, sections, subsections and paragraphs
      and the insertion of headings are for convenience of reference only and shall
      not affect the construction or interpretation of this Agreement.

     

    1.6. Law
      Governing this Agreement; Consent to Jurisdiction.
      THIS
      AGREEMENT 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. With
      respect to any suit, action or proceeding relating to this Agreement or to
      the
      transactions contemplated hereby (“Proceedings”),
      each
      party hereto irrevocably submits to the exclusive jurisdiction of the courts
      of
      the County of New York, State of New York and the United States District court
      located in the county of New York in the State of New York. Each party hereto
      hereby irrevocably and unconditionally (a) waives trial by jury in any
      Proceeding relating to this Agreement and for any related counterclaim and
      (b)
      waives any objection which it may have at any time to the laying of venue of
      any
      Proceeding brought in any such court, waives any claim that such Proceedings
      have been brought in an inconvenient forum and further waives the right to
      object, with respect to such Proceedings, that such court does not have
      jurisdiction over such party. As between either or both of the Companies, on
      the
      one hand, and any Purchaser, on the other, 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 Agreement is determined by a
      court of competent jurisdiction to be invalid or unenforceable, then the
      remainder of this Agreement shall not be affected and shall remain in full
      force
      and effect.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    1.7. Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Agreement 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 to favor any party against the
      other.

     

    ARTICLE
      II

     

    APPOINTMENT
      OF AND DELIVERIES TO THE ESCROW AGENT

     

    2.1. Appointment.
      Each
      Company and each Purchaser hereby irrevocably designate and appoint the Escrow
      Agent as their escrow agent for the purposes set forth herein, and the Escrow
      Agent by its execution and delivery of this Agreement hereby accepts such
      appointment under the terms and conditions set forth herein.

     

    2.2. Copies
      of Documents to Escrow Agent.
      On or
      about the date hereof, each Purchaser and each Company shall deliver to the
      Escrow Agent copies of the Documents executed by such parties.

     

    2.3. Delivery
      of Escrowed Payment to Escrow Agent.
      Following the satisfaction of all closing conditions relating to the Documents
      (other than the funding of the Escrowed Payment), the Purchasers shall deliver
      to the Escrow Agent the Escrowed Payment. At such time, the Escrow Agent shall
      hold the Escrowed Payment as agent for the Companies, subject to the terms
      and
      conditions of this Agreement.

     

    2.4. Intention
      to Create Escrow Over the Escrowed Payment.
      Each
      Purchaser and each Company intend that the Escrowed Payment shall be held in
      escrow by the Escrow Agent and released from escrow by the Escrow Agent only
      in
      accordance with the terms and conditions of this Agreement.

     

    ARTICLE
      III

     

    RELEASE
      OF ESCROW

     

    3.1. Release
      of Escrow.
      Subject
      to the provisions of Section 4.2, the Escrow Agent shall release the Escrowed
      Payment from escrow as follows:

     

    (a) Upon
      receipt by the Escrow Agent of (i) oral instructions from David Grin and/or
      Eugene Grin (each of whom is a director of each Purchaser) consenting to the
      release of the Escrowed Payment from escrow in accordance with the Disbursement
      Letter following the Escrow Agent’s receipt of the Escrowed Payment, (ii) the
      Disbursement Letter, and (iii) the Escrowed Payment, the Escrowed Payment shall
      promptly be disbursed in accordance with the Disbursement Letter. The
      Disbursement Letter shall include, without limitation, Escrow Agent’s
      authorization to retain from the Escrowed Payment Escrow Agent’s fee for acting
      as Escrow Agent hereunder, and (A) the VCM Payment for delivery to Valens
      Capital Management, LLC and (B) the Purchaser Payments for delivery to each
      Purchaser, both in accordance with the Disbursement Letter.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) Upon
      receipt by the Escrow Agent of a final and non-appealable judgment, order,
      decree or award of a court of competent jurisdiction (a “Court
      Order”)
      relating to the Escrowed Payment, the Escrow Agent shall remit the Escrowed
      Payment in accordance with the Court Order. Any Court Order shall be accompanied
      by an opinion of counsel for the party presenting the Court Order to the Escrow
      Agent (which opinion shall be reasonably satisfactory to the Escrow Agent)
      to
      the effect that the court issuing the Court Order is a court of competent
      jurisdiction and that the Court Order is final and non-appealable.

     

    3.2. Acknowledgement
      of Companies and Purchasers; Disputes.
      Each
      Company and each Purchaser acknowledge that the only terms and conditions upon
      which the Escrowed Payment are to be released from escrow are as set forth
      in
      Sections 3 and 4 of this Agreement. Each Company and each Purchaser reaffirm
      their agreement to abide by the terms and conditions of this Agreement with
      respect to the release of the Escrowed Payment. Any dispute with respect to
      the
      release of the Escrowed Payment shall be resolved pursuant to Section 4.2 or
      by
      written agreement among the Companies and the Purchasers.

     

    ARTICLE
      IV

     

    CONCERNING
      THE ESCROW AGENT

     

    4.1. Duties
      and Responsibilities of the Escrow Agent.
      The
      Escrow Agent’s duties and responsibilities shall be subject to the following
      terms and conditions:

     

    (a) Each
      Purchaser and each Company acknowledge and agree that the Escrow Agent (i)
      shall
      not be required to inquire into whether any Purchaser, either Company or any
      other party is entitled to receipt of any Document or all or any portion of
      the
      Escrowed Payment; (ii) shall not be called upon to construe or review any
      Document or any other document, instrument or agreement entered into in
      connection therewith; (iii) shall be obligated only for the performance of
      such
      duties as are specifically assumed by the Escrow Agent pursuant to this
      Agreement; (iv) may rely on and shall be protected in acting or refraining
      from
      acting upon any written notice, instruction, instrument, statement, request
      or
      document furnished to it hereunder and believed by the Escrow Agent in good
      faith to be genuine and to have been signed or presented by the proper person
      or
      party, without being required to determine the authenticity or correctness
      of
      any fact stated therein or the propriety or validity or the service thereof;
      (v)
      may assume that any person purporting to give notice or make any statement
      or
      execute any document in connection with the provisions hereof has been duly
      authorized to do so; (vi) shall not be responsible for the identity, authority
      or rights of any person, firm or company executing or delivering or purporting
      to execute or deliver this Agreement or any Document or any funds deposited
      hereunder or any endorsement thereon or assignment thereof; (vii) shall not
      be
      under any duty to give the property held by Escrow Agent hereunder any greater
      degree of care than Escrow Agent gives its own similar property; and (viii)
      may
      consult counsel satisfactory to Escrow Agent (including, without limitation,
      Loeb & Loeb LLP or such other counsel of Escrow Agent’s choosing), the
      opinion of such counsel to be full and complete authorization and protection
      in
      respect of any action taken, suffered or omitted by Escrow Agent hereunder
      in
      good faith and in accordance with the opinion of such counsel.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b) Each
      Purchaser and each Company acknowledge that the Escrow Agent is acting solely
      as
      a stakeholder at their request and that the Escrow Agent shall not be liable
      for
      any action taken by Escrow Agent in good faith and believed by Escrow Agent
      to
      be authorized or within the rights or powers conferred upon Escrow Agent by
      this
      Agreement. Each Purchaser and the Companies hereby, jointly and severally,
      indemnify and hold harmless the Escrow Agent and any of Escrow Agent’s partners,
      employees, agents and representatives from and against any and all actions
      taken
      or omitted to be taken by Escrow Agent or any of them hereunder and any and
      all
      claims, losses, liabilities, costs, damages and expenses suffered and/or
      incurred by the Escrow Agent arising in any manner whatsoever out of the
      transactions contemplated by this Agreement and/or any transaction related
      in
      any way hereto, including the fees of outside counsel and other costs and
      expenses of defending itself against any claims, losses, liabilities, costs,
      damages and expenses arising in any manner whatsoever out the transactions
      contemplated by this Agreement and/or any transaction related in any way hereto,
      except for such claims, losses, liabilities, costs, damages and expenses
      incurred by reason of the Escrow Agent’s gross negligence or willful misconduct.
      The Escrow Agent shall owe a duty only to the Purchasers and the Companies
      under
      this Agreement and to no other person.

     

    (c) The
      Purchasers and the Companies shall jointly and severally reimburse the Escrow
      Agent for its reasonable out-of-pocket expenses (including counsel fees (which
      counsel may be Loeb & Loeb LLP or such other counsel of the Escrow Agent’s
      choosing) incurred in connection with the performance of its duties and
      responsibilities hereunder, which shall be (subject to Section 4.1(b))
      $2,000.

     

    (d) The
      Escrow Agent may at any time resign as Escrow Agent hereunder by giving five
      (5)
      business days prior written notice of resignation to the Purchasers and the
      Companies. Prior to the effective date of resignation as specified in such
      notice, the Purchasers and the Companies will issue to the Escrow Agent a joint
      instruction authorizing delivery of the Documents and the Escrowed Payment
      to a
      substitute Escrow Agent selected by the Purchasers and the Companies. If no
      successor Escrow Agent is named by the Purchasers and the Companies, the Escrow
      Agent may apply to a court of competent jurisdiction in the State of New York
      for appointment of a successor Escrow Agent, and deposit the Documents and
      the
      Escrowed Payment with the clerk of any such court, and/or otherwise commence
      an
      interpleader or similar action for a determination of where to deposit the
      same.

     

    (e) The
      Escrow Agent does not have and will not have any interest in the Documents
      and
      the Escrowed Payment, but is serving only as escrow agent, having only
      possession thereof.

     

    (f) The
      Escrow Agent shall not be liable for any action taken or omitted by it in good
      faith and reasonably believed by it to be authorized hereby or within the rights
      or powers conferred upon it hereunder, nor for action taken or omitted by it
      in
      good faith, and in accordance with advice of counsel (which counsel may be
      Loeb
& Loeb LLP or such other counsel of the Escrow Agent’s choosing), and shall
      not be liable for any mistake of fact or error of judgment or for any acts
      or
      omissions of any kind except to the extent any such liability arose from its
      own
      willful misconduct or gross negligence.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (g) This
      Agreement sets forth exclusively the duties of the Escrow Agent with respect
      to
      any and all matters pertinent thereto and no implied duties or obligations
      shall
      be read into this Agreement.

     

    (h) The
      Escrow Agent shall be permitted to act as counsel for any Purchaser or either
      or
      both of the Companies, as the case may be, in any dispute as to the disposition
      of the Documents and the Escrowed Payment, in any other dispute between any
      Purchaser and either or both of the Companies, whether or not the Escrow Agent
      is then holding the Documents and/or the Escrowed Payment and continues to
      act
      as the Escrow Agent hereunder.

     

    (i) The
      provisions of this Section 4.1 shall survive the resignation of the Escrow
      Agent
      or the termination of this Agreement.

     

    4.2. Dispute
      Resolution; Judgments.
      Resolution of disputes arising under this Agreement shall be subject to the
      following terms and conditions:

     

    (a) If
      any
      dispute shall arise with respect to the delivery, ownership, right of possession
      or disposition of the Documents and/or the Escrowed Payment, or if the Escrow
      Agent shall in good faith be uncertain as to its duties or rights hereunder,
      the
      Escrow Agent shall be authorized, without liability to anyone, to (i) refrain
      from taking any action other than to continue to hold the Documents and the
      Escrowed Payment pending receipt of a joint instruction from the Purchasers
      and
      the Companies, (ii) commence an interpleader or similar action, suit or
      proceeding for the resolution of any such dispute; and/or (iii) deposit the
      Documents and the Escrowed Payment with any court of competent jurisdiction
      in
      the State of New York, in which event the Escrow Agent shall give written notice
      thereof to the Purchasers and the Companies and shall thereupon be relieved
      and
      discharged from all further obligations pursuant to this Agreement. The Escrow
      Agent may, but shall be under no duty to, institute or defend any legal
      proceedings which relate to the Documents and the Escrowed Payment. The Escrow
      Agent shall have the right to retain counsel if it becomes involved in any
      disagreement, dispute or litigation on account of this Agreement or otherwise
      determines that it is necessary to consult counsel which such counsel may be
      Loeb & Loeb LLP or such other counsel of the Escrow Agent’s
      choosing.

     

    (b) The
      Escrow Agent is hereby expressly authorized to comply with and obey any Court
      Order. In case the Escrow Agent obeys or complies with a Court Order, the Escrow
      Agent shall not be liable to any Purchaser, either Company or to any other
      person, firm, company or entity by reason of such compliance.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

     

    GENERAL
      MATTERS

     

    5.1. Termination.
      This
      escrow shall terminate upon disbursement of the Escrowed Payment in accordance
      with the terms of this Agreement or earlier upon the agreement in writing of
      the
      Purchasers and the Companies or resignation of the Escrow Agent in accordance
      with the terms hereof.

     

    5.2. Notices.
      All
      notices, requests, demands and other communications required or permitted
      hereunder shall be in writing and shall be deemed to have been duly given one
      (1) day after being sent by telecopy (with copy delivered by overnight courier,
      regular or certified mail):

     

    
      	
              (a) If
                to the Companies, to:

            	
              c/o
                True North Energy Corporation

              1400
                Woodloch Forest Drive

              Suite
                530

              The
                Woodlands, Texas 773802

              Fax:
                (823) 553-7244

              Attention:
                Chief Executive Officer

            
	 	 
	
              With
                a copy to:

            	
              Gordon
                Arata McCollam Duplantis 

              &
                Eagan, LLP

              2200
                West Loop South, Suite 1050

              Houston,
                Texas 77027

              Fax:
                (713) 333-5501

              Attention:
                J. Lanier Yeates

            
	 	 
	
              (b) If
                to the Purchasers, to:

            	
              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

              Attention:
                Portfolio Services

              Facsimile:
                212-581-5037

            
	 	 
	
              (c) If
                to the Escrow Agent, to:

            	
              Loeb
                & Loeb LLP

              345
                Park Avenue

              New
                York, New York 10154

              Fax:
                (212) 407-4990

              Attention:
                Scott J. Giordano, Esq.

            

    

     

    or
      to
      such other address as any of them shall give to the others by notice made
      pursuant to this Section 5.2.

     

    5.3. Interest.
      The
      Escrowed Payment shall not be held in an interest bearing account nor will
      interest be payable in connection therewith.

     

    5.4. Assignment;
      Binding Agreement.
      Neither
      this Agreement nor any right or obligation hereunder shall be assignable by
      any
      party without the prior written consent of the other parties hereto. This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective legal representatives, successors and assigns.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    5.5. Invalidity.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstance, is held invalid, illegal, or
      unenforceable in any respect for any reason, the validity, legality and
      enforceability of any such provision in every other respect and of the remaining
      provisions contained herein shall not be in any way impaired thereby, it being
      intended that all of the rights and privileges of the parties hereto shall
      be
      enforceable to the fullest extent permitted by law.

     

    5.6. Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same agreement. This Agreement may be executed by facsimile
      transmission.

     

    [Signatures
      appear on the following pages]

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      and year first above written.

    
      	 	 	 
	 	
              COMPANIES:

            
	 	 
	 	
              TRUE
                NORTH ENERGY CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	
              /s/
                John I. Folnovic

            
	 	
              

              Name: John
                I. Folnovic

            
	 	
              Title: President
                and Chief Executive
                Officer

            

    

    
      
        	 	 	 
	 	
                
                  ICF
                    ENERGY CORPORATION

                

              
	 
 	 
 	 
 
	
              	By:  	
                /s/
                  John I. Folnovic 

              
	 	
                

                Name: John
                  I. Folnovic

              
	 	
                
                  Title: President
                    and Chief Executive
                    Officer

                

              

      

    

    
      	 	 	 
	 	
              
                PURCHASERS:

              

            
	 	 
	 	
              
                VALENS
                  U.S. SPV I, LLC

              

            
	 	 	 
	 	
              By:

            	
              Valens
                Capital Management, LLC,

              
                its
                  investment manager

              

            
	 
 	 
 	 
 
	
            	By:  	 /s/
              Eugene Grin
	 	
              

              Name:
                Eugene Grin

            
	 	
              Title:
                Authorized Signatory

            

    

    
      	 	 	 
	 	
              VALENS
                OFFSHORE SPV II, CORP.

            
	 	 	 
	 	By:  	
              Valens
                Capital Management, LLC,

              
                its
                  investment manager

              

            
	 
 	 
 	 
 
	
            	By:  	 /s/
              Eugene Grin
	 	
              

              Name:
                Eugene Grin

            
	 	Title:
              Authorized Signatory

    

     

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              
                
                  ESCROW
                    AGENT:

                

              

            
	 	 
	 	
              
                
                  LOEB
                    & LOEB LLP

                

              

            
	 	 	 
	 	 	 
	
            	By:  	  /s/
              Scott J. Giordamo
	 	
              

              Name:
                Scott J. Giordamo

            
	 	
              Title:
                Partner

            

    

     

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A TO FUNDS ESCROW AGREEMENT

     

    
      	
              PURCHASERS

            	 	
              PRINCIPAL
                NOTE AMOUNTS

            
	
              VALENS
                U.S. SPV I, LLC

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

              Fax: 212-581-5037

            	 	
              Term
                Note in an aggregate principal amount of $1,875,404

            
	 	 	 
	
              VALENS
                OFFSHORE SPV II, CORP.

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

              Fax: 212-581-5037

            	 	
              Term
                Note in an aggregate principal amount of $1,874,596

            
	
              TOTAL

            	 	
              $3,750,000

            

    

     

    
      	
              PURCHASERS

            	 	
              PURCHASER
                PAYMENTS

            
	
              VALENS
                U.S. SPV I, LLC

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

              Fax: 212-581-5037

            	 	
              Aggregate
                payments payable in connection with investment by Valens U.S. SPV
                I, LLC
                ($46,886).

            
	 	 	 
	
              VALENS
                OFFSHORE SPV II, CORP.

              c/o
                Valens Capital Management, LLC

              335
                Madison Avenue, 10th Floor

              New
                York, New York 10017

              Fax: 212-581-5037

            	 	
              Aggregate
                payments payable in connection with investment by Valens Offshore
                SPV II,
                Corp. ($46,864)

            
	
              TOTAL

            	 	
              $93,750

            

    

     

    
      	
              FUND
                MANAGER

            	 	
              VCM
                PAYMENT

            
	
              VALENS
                CAPITAL MANAGEMENT, L.L.C.

              335
                Madison Avenue, 10th
                Floor

              New
                York, New York 10017

              Fax:
                212-581-5037

            	 	
              Payment
                payable in connection with investment by Valens U.S. SPV I, LLC and
                Valens
                Offshore SPV II, Corp. for each of which Valens Capital Management,
                L.L.C.
                is the investment manager.

            
	
              TOTAL

            	 	
              $71,250

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