Modelsim is exiting with code 211.

I highly doubt the code is causing this problem.

For future, I highly suggest you use Verilog 2001 styles, where you can specify input/output and type on the actual ports:

module counter (
  output  count,
  input clk, reset
);
function increment ( val);

It is much more readable than verilog '95.

I can only assume the crash is some setup issue. What OS are you using? How are you running the sim?