IVANHOE ENERGY INC
PLEDGE AGREEMENT DATED JULY 11, 2008
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>o42313exv10w4.htm
<DESCRIPTION>PLEDGE AGREEMENT DATED JULY 11, 2008
<TEXT>
<HTML>
<HEAD>
<TITLE>PLEDGE AGREEMENT DATED JULY 11, 2008</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit 10.4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLEDGE AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">THIS PLEDGE AGREEMENT is made as of the 11th day of July, 2008, by <B>IVANHOE ENERGY INC.</B>, a
corporation incorporated under the laws of the Yukon Territory (the &#147;<B>Corporation</B>&#148;) in favour of
<B>TALISMAN ENERGY CANADA </B>(who and whose successors and assigns are herein called the &#147;<B>Secured
Party</B>&#148;).</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>WHEREAS:</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation has issued its debenture dated as of the date hereof to the Secured Party in the
principal amount of Cdn. $67,500,000 (such debenture as amended, supplemented or restated from time
to time is herein called the &#147;<B>Debenture</B>&#148;); and</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation has agreed to pledge the Debenture to the Secured Party as general and continuing
collateral security for the indebtedness and obligations of the Corporation as hereinafter set
forth;</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NOW THEREFORE </B>in consideration of the premises and of the sum of $10.00 now paid by the Secured
Party to the Corporation, the receipt and sufficiency of which are hereby acknowledged, the
Corporation agrees with the Secured Party as follows:</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Defined Terms and Headings</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Terms and expressions which are defined in the Debenture shall, when used
herein, and unless otherwise defined or indicated herein, have the meanings ascribed to
them in the Debenture;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The division of this Agreement into Sections and the insertion of headings is
for convenience of reference only and shall not affect the construction or
interpretation of this Agreement;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The terms &#147;<B><I>this Agreement</I></B>&#148;, &#147;<B><I>hereof</I></B>&#148;, &#147;<B><I>hereunder</I></B>&#148; and similar expressions refer
to this Agreement and not to any particular Section or other portion hereof and include
any amendments or supplements hereto. Unless otherwise stated, references herein to
Sections are to Sections of this Agreement;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Words importing the singular number shall include the plural and vice versa,
and words importing gender shall include the masculine, feminine and neuter genders;
and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The word &#147;including&#148; shall not be construed to limit or restrict the matter
that precedes it.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Pledge of Debenture</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Debenture is hereby delivered and assigned, deposited with and pledged to the Secured Party to
be held by the Secured Party as continuing collateral security for the payment and performance in
full by the Corporation of all of the liabilities and obligations, present or future,</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">direct or indirect, absolute or contingent, matured or not, at any time owing by the Corporation to
the Secured Party under or in connection with each of the Transaction Documents and every part of
such liabilities and obligations (collectively, the &#147;<B>Liabilities</B>&#148;).</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Rights as Secured Party to Enforce Debenture</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Secured Party is hereby authorized as the Secured Party of the Debenture, and without selling
or purchasing the Debenture, to exercise any and all rights of a Secured Party of the Debenture,
both before and after the occurrence of an Event of Default under the Debenture (herein called an
&#147;<B>Event of Default</B>&#148;), to enforce all terms, covenants, provisions and agreements therein contained,
and after an Event of Default has occurred and is continuing, to enforce the security thereby
constituted and to exercise or cause to be exercised all or any of the remedies therein provided to
or for the benefit of the Secured Party under the Debenture. Except as provided in Sections&nbsp;8 and 9
hereof, nothing herein shall be deemed to suspend or otherwise modify or affect the obligations of
the Corporation or the rights of the Secured Party under the Debenture, all as provided in the
Debenture.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Realization by Sale</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to the foregoing rights and remedies, the Secured Party shall be entitled, upon an
Event of Default occurring, to sell or otherwise dispose of the Debenture by public sale (including
public auction) or private or closed tender or by private contract, with only those notices, if
any, as are required by Applicable Law, and with or without advertising and without any other
formality (except as otherwise required by applicable law), and such sale or disposition shall be
on such terms and conditions as to title, credit and otherwise and as to upset or reserve bid or
price as may seem advantageous to the Secured Party, and the Secured Party shall not be required to
accept the highest or any bid or tender at any public sale. The Secured Party may itself purchase
the Debenture unless prohibited from doing so by Applicable Law. The Secured Party may rescind or
vary any contract for the sale or other disposition of the Debenture and may resell the Debenture
without being answerable for any loss occasioned thereby, and may delay any sale or disposition of
the Debenture in whole or in part.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Proceeds of Realization</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The proceeds from any exercise or enforcement of all or any of the rights and remedies of the
Secured Party hereunder shall be applied by the Secured Party on account of the Liabilities in such
order or manner as the Secured Party and Corporation may agree to or, failing that, as the Secured
Party may determine, all without prejudice to the Secured Party&#146;s claim upon the Corporation for
any deficiency under the Liabilities, provided the Secured Party shall only be liable to account
for amounts actually received by it.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Power of Attorney</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To give full effect hereto, the Secured Party or any officer of the Secured Party is hereby
appointed attorney irrevocably of the Corporation, with full power of substitution, for and in the
name of the Corporation to sign and seal all documents and to fill in all blanks in signed powers
of attorney and transfers necessary in order to complete the transfer of the Debenture to the
Secured Party or its officers or to any purchaser.</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Records</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The records of the Secured Party as to payment of any Liabilities being in default or of any demand
for payment having been made will be <I>prima facie </I>evidence of such default or demand, absent
manifest error.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Satisfaction of Interest</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Full payment by the Corporation to the Secured Party of interest as may be provided for in the
Notes or the Asset Transfer Agreement for any period in respect of the debts, liabilities and
obligations of the Corporation to the Secured Party thereunder shall be deemed to be payment in
full satisfaction of any interest payment for the same period in respect of the corresponding
Principal Sum provided for under the terms of the Debenture.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Principal Sum</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the Principal Sum of the Debenture and the interest rate provided for therein on
such Principal Sum, the obligations secured by the deposit to the Secured Party of the Debenture as
provided for herein shall not exceed the amount of the Liabilities.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Charges and Expenses</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation shall pay to the Secured Party all reasonable out-of-pocket costs and expenses,
including all reasonable legal fees (on a solicitor and his own client basis) and other reasonable
expenses incurred by the Secured Party from time to time in the registration, enforcement,
realization and collection of or in respect of this Agreement. All such amounts shall become part
of the Liabilities, shall be payable by the Corporation on demand, shall bear interest at the rate
set forth in the Debenture in respect of the principal amount thereof calculated from the date
incurred by the Secured Party to the date paid by the Corporation, and such amounts and interest
shall be secured by the Debenture. This provision shall not be construed to limit any other
provisions of the Debenture dealing with the charge-back to the Corporation of expenses incurred by
the Secured Party.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Remedies Not Exclusive</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each and every right, remedy and power conferred by this Agreement is in supplement of and in
addition to and not in substitution for any other right, remedy or power the Secured Party may have
from time to time under this Agreement, the Debenture or the other Transaction Documents, or in any
other agreement or under the law in force at the time of the exercise of such right, remedy or
power. The Secured Party may proceed by way of any action, suit, remedy or other proceeding at law
or in equity and no such remedy for the enforcement of the rights of the Secured Party shall be
exclusive of or dependent on any other such remedy. Any one or more of such remedies may from time
to time be exercised separately or in combination.
Notwithstanding the foregoing, the Secured Party shall not be bound to deal with the Debenture, to
exercise any right or remedy as aforesaid, or to preserve rights against other persons.</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Extensions</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Secured Party may grant renewals, extensions of time and other indulgences, take, release and
give up securities, accept compositions, grant releases and discharges, perfect or fail to perfect
any securities, and otherwise deal or fail to deal with the Corporation, guarantors, sureties and
others and with the Debenture and other securities as the Secured Party may see fit, all without
prejudice to the liability of the Corporation to the Secured Party or the rights and powers of the
Secured Party under this Debenture or the other Transaction Documents.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Amendments or Supplemental Debentures</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any amendments or supplemental debentures to or restatements of the Debenture shall, upon execution
by the Corporation and delivery to the Secured Party, be deemed to be deposited hereunder and
included in the term &#147;Debenture&#148; for the purposes hereof, unless expressly provided otherwise.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Merger</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Neither the taking of any judgment nor the exercise of any power of sale shall operate to
extinguish the liability of the Corporation to make payment of, or to satisfy the Liabilities nor
shall the acceptance of any payment or alternate security constitute or create any novation, and it
is further agreed that the taking of a judgment or judgments under any of the covenants herein
contained shall not operate as a merger of such covenants.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Governing Law</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement shall be governed by and interpreted in accordance with the laws of the Province of
Alberta and the laws of Canada applicable therein and shall be treated as an Alberta contract. The
Corporation irrevocably submits to the non-exclusive jurisdiction of the courts of the Province of
Alberta, without prejudice to the rights of the Secured Party to take proceedings in any other
jurisdictions.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Assignment by Corporation</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to Section&nbsp;4.1(t) of the Debenture, the Corporation shall not and cannot assign its
obligations under this Agreement, or take any steps or enter into any transaction of any nature
which would have that effect, without the prior written consent of the Secured Party, which may be
arbitrarily withheld. Subject thereto, all obligations of the Corporation hereunder shall bind the
Corporation and its successors and assigns.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Assignment by Secured Party</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to any agreement to the contrary between the Corporation and the Secured Party, the Secured
Party may at any time assign this Agreement.</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-5-<!-- /Folio -->



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Copy Received</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation acknowledges having received from the Secured Party a copy of this executed
Agreement and waives its right to receive a copy of any financing statement or financing change
statement registered in respect thereof or any verification or confirmation statement provided in
respect thereof.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Severability</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If one or more of the provisions of this Agreement is, or is adjudged to be, invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired thereby, and such invalid, illegal or
unenforceable provision shall, to the extent permitted at law, be severable.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Waivers and Consents</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No waiver of any provision hereof, or consent to any action or inaction shall be effective unless
the same is in writing and signed by the party granting the same. Such waivers and consents shall
not extend to any matters other than those in respect of which the same were given, and the same
may be subject to such conditions as the party giving the same may stipulate.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Further Assurances</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each party shall promptly cure any defect by it in the execution and delivery
of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Corporation, at its expense, shall promptly deliver to the Secured Party,
upon request by the Secured Party in writing, all such other and further documents,
agreements, opinions, certificates and instruments (executed, as necessary) in order to
give effect to the covenants and agreements of the Corporation in this Agreement, all
as may be reasonably necessary or appropriate in connection therewith.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Not Bound to Advance or Commit</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Neither the execution and delivery nor the registration of the Debenture shall for any reason
whatsoever obligate or bind the Secured Party to advance any moneys or provide any credit or make
any commitment or, having advanced or committed a portion, obligate the Secured Party in any way to
advance or commit the balance or any further portion thereof; but nevertheless the Debenture and
the mortgages, charges and security interests thereby constituted shall take effect forthwith upon
execution of the Debenture and shall operate as security for the Liabilities.</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-6-<!-- /Folio -->



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effective Notice</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any and all notices or other communications required or permitted pursuant to this Agreement shall
be in writing and shall be given in the manner stipulated in the Debenture.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF </B>the Corporation has executed and delivered this Agreement as of the
11<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of July, 2008.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>IVANHOE ENERGY INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD align="left">Per:</TD>
    <TD align="left">&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">/s/ <I>&#147;Ian S. Barnett&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
