Document:

Exhibit 10.04

 

Deed

 

	Specific Security 

Agreement (Shares)	 
	 	 
	Discovery Energy Corp.	 
	 	 
	Texican Energy Corporation	 

 

     

     

    

 

Contents

 

	 	Table of contents	 
	 	 	 
	1	Definitions, interpretation and deed components	2
	 	1.1	Definitions	2
	 	1.2	Interpretation	6
	 	1.3	Interpretation of inclusive expressions	8
	 	1.4	Business Day	8
	 	1.5	Incorporated definitions	8
	 	1.6	Deed components	8
	 	 	 	 
	2	Mortgage	8
	 	2.1	Security interest	8
	 	2.2	Priority	8
	 	2.3	Authorisation	9
	 	 	 	 
	3	Discharge of the Mortgage	9
	 	3.1	Discharge	9
	 	3.2	Final discharge	9
	 	 	 	 
	4	Representations and warranties	9
	 	4.1	Representations and warranties	9
	 	4.2	Survival of representations and warranties	10
	 	4.3	Reliance	10
	 	 	 	 
	5	Undertakings of the Grantor	11
	 	5.1	Dividends and voting	11
	 	5.2	Proxies and authorised representatives	11
	 	5.3	Exceptional Distributions	11
	 	5.4	Controlled Account	11
	 	5.5	Distributions	12
	 	5.6	Other Additional Rights	12
	 	5.7	Performance under the Finance Documents	12
	 	5.8	Notices to the Secured Party	13
	 	5.9	Negative pledge	13
	 	5.10	Further assurances	13
	 	5.11	Title Documents for Certificated Securities	14
	 	5.12	Irrevocable direction for Certificated Securities	14
	 	5.13	Perfection, registration and protection of security	14
	 	5.14	Term of undertakings	15
	 	 	 	 
	6	Enforcement	15
	 	6.1	When enforceable	15
	 	6.2	Assistance in realisation	16
	 	6.3	Postponing or delaying realisation or enforcement	16
	 	 	 	 
	7	Receiver	16
	 	7.1	Appointment of Receiver	16
	 	7.2	Agency of Receiver	16
	 	7.3	Powers of Receiver	16
	 	7.4	Nature of Receiver’s Powers	18
	 	7.5	Status of Receiver after commencement of winding up	18

  

    	 	Specific Security Agreement (Shares)  	Contents 1

     

    

 

Contents

 

	 	7.6	Powers exercisable by the Secured Party	18
	 	7.7	Set off	19
	 	7.8	Notice of exercise of rights	19
	 	7.9	Termination of receivership and possession	19
	 	 	 	 
	8	Application and receipts of money	19
	 	8.1	Order of application	19
	 	8.2	Money actually received	20
	 	8.3	Amounts contingently due	20
	 	8.4	Notice of an Encumbrance	20
	 	8.5	Secured Party’s statement of indebtedness	21
	 	8.6	Secured Party’s receipts	21
	 	8.7	Conversion of currencies on application	21
	 	8.8	Amounts payable on demand	21
	 	 	 	 
	9	Power of Attorney	22
	 	9.1	Appointment of Attorney	22
	 	9.2	Purposes of appointment	22
	 	9.3	Exercise after Event of Default	22
	 	9.4	Delegation and substitution	22
	 	 	 	 
	10	Protection	23
	 	10.1	Protection of third parties	23
	 	10.2	Protection of the Secured Party, Receiver and Attorney	23
	 	 	 	 
	11	Saving provisions	23
	 	11.1	Statutory powers	23
	 	11.2	No notice required unless mandatory	24
	 	11.3	Continuing security	24
	 	11.4	No merger of security	24
	 	11.5	Exclusion of moratorium	24
	 	11.6	Exclusion of PPSA provisions	25
	 	11.7	Conflict	25
	 	11.8	Consent of Secured Party	25
	 	11.9	Completion of blank securities	25
	 	11.10	Principal obligations	26
	 	11.11	No obligation to marshal	26
	 	11.12	Non-avoidance	26
	 	11.13	Increase in financial accommodation	26
	 	 	 	 
	12	General	26
	 	12.1	Confidential information	26
	 	12.2	Performance by Secured Party of the Grantor’s obligations	27
	 	12.3	Grantor to bear cost	27
	 	12.4	Notices	27
	 	12.5	Governing law and jurisdiction	27
	 	12.6	Prohibition and enforceability	27
	 	12.7	Waivers	27
	 	12.8	Variation	28
	 	12.9	Cumulative rights	28
	 	12.10	Assignment	28
	 	12.11	Counterparts	28
	 	12.12	Attorneys	28

 

    	 	Specific Security Agreement (Shares)  	Contents 2

     

    

 

Contents

 

		Schedules	 
	 	 	 
	 	Schedule 1	 
	 	Notice details	30
	 	 	 
	 	Schedule 2	 
	 	Notice of lodgment of Deposit Documents	31
	 	 	 
	 	Schedule 3	 
	 	Irrevocable direction from Grantor	32
	 	 	 
	 	Signing page	33

 

    	 	Specific Security Agreement (Shares)  	Contents 3

     

    

 

 

Specific Security Agreement (Shares)

 

Date ►      16
August 2016

 

Between the parties

 

	Grantor	
        Discovery Energy Corp.

         

        of One Riverway Drive, Suite 1700, Houston, Texas 77056

         

        (Discovery)

	 	 
	Secured Party	
        Texican Energy Corporation

         

        One Allen Center, Suite 1150, 500 Dallas Street, Houston, Texas
        77002

         

        (Texican)

 

	Recitals	
        1    The Grantor is the legal and
        beneficial owner of the Mortgaged Property.

         

        2    The Grantor has agreed to
        grant a security interest in the Mortgaged Property to the Secured Party to secure the payment of the Secured Moneys.

	 	 
	This deed witnesses 	that, for valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows: 

 

    	 	Specific Security Agreement (Shares)  	page 1

     

    

 

		1	Definitions, interpretation
and deed components

 

		1.1	Definitions

 

The meanings of the terms used in this deed are set
out below.

 

	Term	 	Meaning
	 	 	 
	Additional Rights	 	
        all present and future rights and property interests attaching to
        or arising out of or otherwise in respect of the holding of an interest in the Shares including:

         

        1    any Distributions paid or
        payable, any bonus shares or other Marketable Securities issued, and any rights to take up Marketable Securities, in respect of
        the Shares;

         

        2    any proceeds of, or from the
        disposal of or other dealing with, any Shares;

         

        3    any rights or Marketable Security
        resulting from the conversion, consolidation, subdivision, redemption, cancellation, reclassification or forfeiture of any Share;

         

        4    any in specie distribution
        in respect of any Shares; and

         

        5    rights consequent upon a reduction
        of capital, buy back, liquidation or scheme or arrangement,

         

        and any present or future rights and property interests attaching
        to or arising out of or otherwise in respect of any interest in any of the property specified in items 1 to 5 inclusive of this
        definition.

	 	 	 
	Australian Guarantee	 	the document entitled ‘Deed of Guarantee and Indemnity’ between the Guarantor and the Secured Party dated on or about the date of this deed.
	 	 	 
	Australian Security Agreement	 	the document entitled ‘General Security Deed’ between the Guarantor and the Secured Party dated on or about the date of this deed.
	 	 	 
	Attorney	 	an attorney appointed under any Finance Document.
	 	 	 
	Business Day	 	
        1    for the purposes
        of clause 12.4, a day on which banks are open for business in the city where the notice or other communication is received excluding
        a Saturday, Sunday or public holiday; and

         

        2    for all other
        purposes, a day on which banks are open for business in New York excluding a Saturday, Sunday or public holiday.

 

    	 	Specific Security Agreement (Shares)  	page 2

     

    

 

1   Definitions, interpretation and deed components

 

	Term	 	Meaning
	 	 	 
	Certificated Security	 	a Marketable Security title to which is evidenced by a Title Document.
	 	 	 
	Collateral Security	 	any present or future Encumbrance, Guarantee or other document or agreement created or entered into by a Transaction Party or any other person as security for, or to credit enhance, the payment of any of the Secured Moneys.
	 	 	 
	Controlled Account	 	a bank account opened by the Grantor in accordance with clause 5.4.
	 	 	 
	Corporations Act	 	the Corporations Act 2001 (Cth).
	 	 	 
	Deposit Document	 	in respect of the Guarantor, the Title Documents in respect of the relevant Marketable Securities in it.
	 	 	 
	Designated Bank	 	the bank with which the Controlled Account is maintained.
	 	 	 
	Distribution	 	any money owing now or in the future in respect of the Mortgaged Property and includes a cash dividend or other monetary distribution whether of an income or capital nature.
	 	 	 
	Event of Default	 	an Event of Default as defined in the Principal Agreement and any other event of default (however described) under, or as defined in, any Finance Document.
	 	 	 
	Exceptional Distribution	 	
        a Distribution of the following kind:

         

        1    a reduction
        of capital;

         

        2    a buy-back of
        shares under a buy-back scheme or otherwise; or

         

        3    any Distribution
        under a scheme of arrangement.

	 	 	 
	Finance Document	 	
        1    this deed;

         

        2    each Collateral
        Security;

         

        3    the
Principal Agreement;

 

    	 	Specific Security Agreement (Shares)  	page 3

     

    

 

1   Definitions, interpretation and deed components

 

	Term	 	Meaning
	 	 	 
	 	 	
        4    the Australian
        Guarantee;

         

        5    the Australian
        Security Agreement;

         

        6    the US Security
        Agreement;

         

        7    the Securities
        Purchase Agreement;

         

        8    any other Finance
        Document as defined in the Principal Agreement;

         

        9    any document
        which the Grantor and the Secured Party agree, now or in the future, is a Finance Document for the purposes of this deed,

         

        or any document or agreement entered into or given under any of
        the above.

	 	 	 
	Guarantor	 	Discovery Energy SA Pty Ltd, ABN 89 158 204 052
	 	 	 
	Marketable Securities	 	
        1    marketable securities
        as defined in section 9 of the Corporations Act;

         

        2    any option or
        right in respect of an unissued share;

         

        3    any convertible
        note; and

         

        4    any instrument
        or security which is a combination of any of the above.

	 	 	 
	Mortgage	 	the security created or expressed to be created by this deed.
	 	 	 
	Mortgaged Property	 	
        all of the Grantor’s present and future interest in:

         

        1    the Shares;

         

        2    the Additional
        Rights;

         

        3    the Controlled
        Account and any chose in action in respect of the Controlled Account; and

         

        4    any cash or
        other assets deposited by the Grantor at any time with or at the direction of the Secured Party under clause 1.13.

	 	 	 
	Permitted Encumbrance	 	has the same meaning as Permitted Lien in the Principal Agreement.
	 	 	 
	Power	 	any right, power, authority, discretion or remedy conferred on the Secured Party, Receiver or an Attorney by any Finance Document or any applicable law.

 

    	 	Specific Security Agreement (Shares)  	page 4

     

    

 

1   Definitions, interpretation and deed components

 

	Term	 	Meaning
	 	 	 
	PPSA	 	the Personal Property Securities Act 2009 (Cth).
	 	 	 
	Principal Agreement	 	the terms of the Senior Secured Convertible Debentures issued by the Grantor to the Secured Party on 17 August 2016 and thereafter.
	 	 	 
	Receiver	 	a receiver or receiver and manager appointed under this deed.
	 	 	 
	Related Corporation	 	a related body corporate as defined in section 9 of the Corporations Act. 
	 	 	 
	Relevant Corporation	 	any company, corporation, body corporate or other entity whose Marketable Securities form part of the Mortgaged Property.
	 	 	 
	Secured Moneys	 	
        all debts and monetary liabilities of the Grantor to the Secured
        Party under or in relation to any Finance Document and in any capacity and irrespective of whether the debts or liabilities:

         

        1    are present
        or future;

         

        2    are actual,
        prospective, contingent or otherwise;

         

        3    are at any time
        ascertained or unascertained;

         

        4    are owed or
        incurred by or on account of the Grantor alone, or severally or jointly with any other person;

         

        5    are owed to
        or incurred for the account of the Secured Party alone, or severally or jointly with any other person;

         

        6    are owed to
        any other person as agent (whether disclosed or not) for or on behalf of the Secured Party;

         

        7    are owed or
        incurred as principal, interest, fees, charges, Taxes, damages (whether for breach of contract or tort or incurred on any other
        ground), losses, costs or expenses, or on any other account;

         

        8    are owed to
        or incurred for the account of the Secured Party directly or as a result of:

         

        ·    the
        assignment and transfer to the Secured Party of any debt or liability of the Grantor; or

         

        ·    any
        other dealing with any such debt or liability;

         

        9    are owed to
        or incurred for the account of the Secured Party before the date of this deed or before the date of any assignment of this deed
        to the Secured Party by any other person or otherwise; or

         

        10    comprise any
        combination of the above.

 

    	 	Specific Security Agreement (Shares)  	page 5

     

    

 

1   Definitions, interpretation and deed components

 

	Term	 	Meaning
	 	 	 
	Securities Purchase Agreement	 	the purchase agreement for the Senior Secured Convertible Debentures dated 27 May 2016 between the Grantor, the Secured Party and DEC Funding LLC, as amended by a first amendment dated 16 August 2016.
	 	 	 
	Security Agreement	 	the security agreement for the Senior Secured Convertible Debentures dated 16 August 2016 between the Grantor and Secured Party.
	 	 	 
	Security Value	 	the value attributed to the Marketable Securities by the Secured Party in its absolute discretion.
	 	 	 
	Shares	 	any Marketable Security registered in the name of the Grantor in the Guarantor in respect of which the Deposit Document is deposited by the Grantor with the Secured Party for the purposes of this deed.
	 	 	 
	Title Document	 	any original, duplicate or counterpart certificate or document evidencing title or ownership of an asset including, but not limited to, any contract note, entitlement notice, marked transfer or share certificate.
	 	 	 
	Transaction Party	 	
        1   the Grantor;
        or

         

        2   the Guarantor.

	 	 	 
	US Security Agreement	 	the security agreement for the Senior Secured Convertible Debentures dated 27 May 2016 between the Grantor, all of the Grantor’s subsidiaries, DEC Funding LLC, as agent for itself, the Secured Party and certain other secured parties.

 

		1.2	Interpretation

 

In this deed:

 

		(a)	Headings and bold type are for convenience only and do not affect the interpretation of this deed.

 

		(b)	The singular includes the plural and the plural includes the singular.

 

		(c)	Words of any gender include all genders.

 

		(d)	Other parts of speech and grammatical forms of a word or phrase defined in this deed have a corresponding meaning.

 

    	 	Specific Security Agreement (Shares)  	page 6

     

    

 

1   Definitions, interpretation and deed components

 

		(e)	An expression importing a person or entity includes any body corporate, partnership, trust, joint venture or other association,
or any Governmental Agency as well as an individual.

 

		(f)	A reference to any thing (including any right) includes a part of that thing but nothing in this clause 1.2(f) implies that
performance of part of an obligation constitutes performance of the obligation.

 

		(g)	A reference to a clause, party, schedule, attachment or exhibit is a reference to a clause of, and a party, schedule, attachment
or exhibit to, this deed.

 

		(h)	A reference to any legislation includes all delegated legislation made under it and amendments, consolidations, replacements
or re-enactments of any of them.

 

		(i)	A reference to a document includes all amendments or supplements to, or replacements or novations of, that document.

 

		(j)	A reference to a party to a document includes that party’s successors and permitted assignees.

 

		(k)	A promise on the part of 2 or more persons binds them jointly and severally.

 

		(l)	A reference to an agreement other than this deed includes a deed and any legally enforceable undertaking, agreement, arrangement
or understanding, whether or not in writing.

 

		(m)	A reference to an asset includes all property of any nature, including a business, and all rights, revenues and benefits.

 

		(n)	A reference to liquidation or insolvency includes appointment of an administrator, compromise, arrangement, merger, amalgamation,
reconstruction, winding-up, dissolution, deregistration, assignment for the benefit of creditors, scheme, composition or arrangement
with creditors, insolvency, bankruptcy, or any similar procedure or, where applicable, changes in the constitution of any partnership
or person, or death.

 

		(o)	A reference to a document includes any agreement in writing, or any certificate, notice, deed, instrument or other document
of any kind.

 

		(p)	No provision of this deed will be construed adversely to a party because that party was responsible for the preparation of
this deed or that provision.

 

		(q)	A reference to a body, other than a party to this deed (including an institute, association or authority), whether statutory
or not:

 

		(1)	which ceases to exist; or

 

		(2)	whose powers or functions are transferred to another body,

 

is a reference to the body which replaces it or which
substantially succeeds to its powers or functions.

 

		(r)	References to time are to New York time.

 

		(s)	Where this deed confers any power or authority on a person that power or authority may be exercised by that person acting personally
or through an agent or attorney.

 

		(t)	A reference to drawing, accepting, endorsing or other dealing with a bill refers to drawing, accepting, endorsing or dealing
within the meaning of the Bills of Exchange Act 1909 (Cth).

 

    	 	Specific Security Agreement (Shares)  	page 7

     

    

 

2    Mortgage

 

		(u)	An Event of Default is ‘continuing’ or ‘subsisting’ if it has not been:

 

		(1)	remedied to the satisfaction of the Secured Party before a Power relating to that Event of Default is exercised; or

 

		(2)	waived by the Secured Party in accordance with this deed.

 

		1.3	Interpretation of inclusive expressions

 

Specifying anything in this deed after the words ‘includes’
or ‘for example’ or similar expressions does not limit what else is included unless there is express wording to the
contrary.

 

		1.4	Business Day

 

Where the day on or by which any thing is to be done
is not a Business Day, that thing must be done on or by the next Business Day.

 

		1.5	Incorporated definitions

 

A word or phrase (other than one defined in clause 1.1)
defined in the Principal Agreement has the same meaning in this deed.

 

		1.6	Deed components

 

This deed includes any schedule.

 

		2	Mortgage

 

		2.1	Security interest

 

		(a)	The Grantor as beneficial owner grants a security interest in the Mortgaged Property to the Secured Party to secure payment
of the Secured Moneys.

 

This security interest is a mortgage.

 

		(b)	A security interest in specific Shares and other related Mortgaged Property is only created under this deed when the Grantor
deposits with the Secured Party:

 

		(1)	a certified copy of the Deposit Documents in respect of Guarantor which has issued those Shares; and

 

		(2)	a notice in the form of, and completed in accordance with, Schedule 2 signed by the Grantor stating that those Deposit Documents
are lodged with the Secured Party for the purposes of this deed, whereupon a security interest in those Shares and related Mortgaged
Property is created.

 

		2.2	Priority

 

		(a)	The parties intend that the Mortgage take priority over all other Encumbrances and other interests in the Mortgaged Property
at any time other than any Permitted Encumbrance mandatorily preferred by law.

 

    	 	Specific Security Agreement (Shares)  	page 8

     

    

 

3    Discharge of the Mortgage

 

		(b)	Nothing in this deed will be construed as an agreement by the Secured Party to subordinate the Mortgage to any other Encumbrance
or interest affecting the Mortgaged Property at any time.

 

		2.3	Authorisation

 

The Grantor must ensure that it obtains all Authorisations
necessary to permit the grant of the Mortgage in respect of any asset before it acquires any rights in that asset.

 

		3	Discharge of the Mortgage

 

		3.1	Discharge

 

Subject to clause 3.2, at the written request of the
Grantor, the Secured Party must discharge the Mortgage if:

 

		(a)	the Secured Moneys have been paid in full; and

 

		(b)	the Grantor and each other Transaction Party has fully observed and performed its respective obligations under this deed and
each other Finance Document.

 

		3.2	Final discharge

 

		(a)	The Secured Party is not obliged to discharge the Mortgage under clause 3.1 if, at the time the requirements of clause 3.1
are satisfied, the Secured Party is of the opinion (acting reasonably) that the Grantor or any other Transaction Party owes further
Secured Moneys contingently or otherwise to the Secured Party.

 

		(b)	Clause 3.2(a) overrides any other clause to the contrary in this deed.

 

		4	Representations and warranties

 

		4.1	Representations and warranties

 

The Grantor represents and warrants to and for the benefit
of the Secured Party that:

 

		(a)	representations true: each of its representations and warranties contained in the Finance Documents is correct and not
misleading when made or repeated;

 

		(b)	legal and beneficial owner:

 

		(1)	it is the legal and beneficial owner of the Mortgaged Property and

 

		(2)	on it acquiring any property forming part of the Mortgaged Property, it will be the legal and beneficial owner of that property

 

		(c)	no other interests:

 

		(1)	there is no Encumbrance over any of the Mortgaged Property other than an Encumbrance created by a Finance Document and a Permitted
Encumbrance;

 

    	 	Specific Security Agreement (Shares)  	page 9

     

    

 

5    Undertakings of the Grantor

 

		(2)	no person other than the Secured Party holds or has the benefit of an Encumbrance or other interest in the Mortgaged Property
other than under a Permitted Encumbrance; and

 

		(3)	there is no agreement, filing or registration that would enable another person to obtain a priority over the Mortgage which
is inconsistent with the priority contemplated by the Mortgage;

 

		(d)	Security:

 

		(1)	this deed creates the Encumbrance purported to be created by it over the assets purported to be encumbered by it; and

 

		(2)	the Mortgage has been or, in the case of after-acquired property (as defined in the PPSA) subject to the Mortgage on its acquisition,
will be perfected; and

 

		(3)	the Mortgage has the priority contemplated by this deed;

 

		(e)	securities fully paid: all Marketable Securities forming part of the Mortgaged Property are, or upon acquisition will
be, fully paid;

 

		(f)	registers: the share register and any branch register for each Relevant Corporation:

 

		(1)	is located in Australia on the date of this deed; and

 

		(2)	will be located in Australia on the date on which the security interest created under this deed attaches to the Mortgaged Property;

 

		(g)	no further securities: the equity capital in each Relevant Corporation is as notified to the Secured Party in writing
before, or at the same time as, the Mortgage is given, and there is no agreement, arrangement or understanding under which further
Marketable Securities with rights of conversion to shares in a Relevant Corporation may be issued to any person; and

 

		(h)	Finance Documents representations and warranties: to the extent not already provided by this clause 4, any representations
and warranties made by the Grantor in the Finance Documents are taken to be made again for the purposes of this deed.

 

		4.2	Survival of representations and warranties

 

The representations and warranties
in clause 4.1 survive the execution of this deed.

 

		4.3	Reliance

 

		(a)	The Grantor acknowledges that it has not entered into this deed or any other Finance Document in reliance on any representation,
warranty, promise or statement made by or on behalf of the Secured Party or of any person on behalf of the Secured Party.

 

		(b)	The Grantor acknowledges that the Secured Party has entered into each Finance Document in reliance on the representations and
warranties given by the Grantor under this deed.

 

    	 	Specific Security Agreement (Shares)  	page 10

     

    

 

5    Undertakings of the Grantor

 

		5	Undertakings of the Grantor

 

		5.1	Dividends and voting

 

		(a)	Until an Event of Default occurs:

 

		(1)	the Grantor may receive all Distributions, other than Exceptional Distributions, in respect of the Mortgaged Property;
and

 

		(2)	the Grantor may exercise all voting powers in respect of the Mortgaged Property,

 

without the need for any consent or direction from the
Secured Party.

 

		(b)	The Grantor must not, exercise any voting powers in respect of the Mortgaged Property under clause 5.1(a)(2) in any way which
might adversely affect the value of the Mortgaged Property.

 

		(c)	If an Event of Default occurs, the rights of the Grantor under clause 5.1(a) immediately cease and the Secured Party, Receiver
or Attorney is entitled to receive all Distributions and exercise all voting powers in respect of the Mortgaged Property to the
exclusion of the Grantor.

 

		5.2	Proxies and authorised representatives

 

		(a)	The Grantor must not:

 

		(1)	appoint any proxy in respect of the Mortgaged Property without the prior written consent of the Secured Party;

 

		(2)	appoint any authorised representative under section 250D of the Corporations Act or any attorney in respect of the Mortgaged
Property without the prior written consent of the Secured Party.

 

		(b)	The Grantor must ensure that any proxy, authorised representative or attorney:

 

		(1)	complies with any conditions specified by the Secured Party in respect of the appointment of the proxy, authorised representative
or attorney; and

 

		(2)	complies with the Finance Documents.

 

		5.3	Exceptional Distributions

 

The Grantor must promptly after receipt pay all Exceptional
Distributions to the Secured Party.

 

		5.4	Controlled Account

 

		(a)	The Secured Party may require the Grantor to promptly after being requested to do so by the
Secured Party open and maintain a bank account at a bank and branch approved by the Secured Party on terms that:

 

		(1)	nominated Officers of the Secured Party must be signatories to the Controlled Account;

 

		(2)	no withdrawals can be made from the Controlled Account without the signature of one of those Officers;

 

    	 	Specific Security Agreement (Shares)  	page 11

     

    

 

5    Undertakings of the Grantor

 

		(3)	funds may be disposed of from the Controlled Account at the direction of the Secured Party without further consent by the Grantor;
and

 

		(4)	depositing an amount in the Controlled Account will not result in any person coming under a present liability (within the meaning
of section 341(3)(d) of the PPSA) to pay:

 

		·	the Grantor; or

 

		·	a Related Corporation of the Grantor.

 

		(b)	If the Secured Party is not the Designated Bank, the Grantor must cause the Designated Bank to enter into an agreement between
the Designated Bank, the Grantor and the Secured Party in form and substance satisfactory to the Secured Party in which the Designated
Bank agrees that:

 

		(1)	it will comply with and give effect to the terms set out in clause 5.4(a);

 

		(2)	it has no Encumbrance or other interest in the Controlled Account and it waives all rights of set-off and combination in respect
of the Controlled Account; and

 

		(3)	if despite clause 5.4(b)(2) it has any Encumbrance or other interest in the Controlled Account, that Encumbrance or other interest
is subordinated in right and priority of payment to the Secured Party's Encumbrance or other interest and will not be exercised
without the Secured Party’s consent; and

 

		(4)	it agrees that the laws specified in clause 12.5 will govern the Secured Party’s security Interest in the Controlled
Account.

 

		5.5	Distributions

 

		(a)	If an Event of Default occurs, the Grantor must deposit, or cause to be deposited, all Distributions in the Controlled Account.

 

		(b)	The Grantor must give all notices and directions and execute all necessary documents as requested by the Secured Party to ensure
clause 5.5(a) is complied with.

 

		(c)	A Power created under this clause 5.5 is not waived by any failure or delay in exercise, or by the partial exercise, of that
Power.

 

		5.6	Other Additional Rights

 

		(a)	The Grantor must acquire, at its own cost, any Additional Rights (other than Distributions) it is entitled to acquire.

 

		(b)	The Grantor must immediately notify the Secured Party as soon as the Grantor becomes aware of any entitlement to any Additional
Rights.

 

		5.7	Performance under the Finance Documents

 

		(a)	The Grantor must fully and punctually perform its obligations under each Finance Document.

 

		(b)	Without limiting clause 5.7(a), the Grantor must pay the Secured Moneys to the Secured Party in accordance with this deed,
each other Finance Document and each other obligation under which the Secured Moneys are payable.

 

    	 	Specific Security Agreement (Shares)  	page 12

     

    

 

5    Undertakings of the Grantor

 

		(c)	The Grantor must ensure that no Event of Default occurs. Without affecting the liability of the Grantor or the Powers in any
other respect (including where a breach of this clause 5.7(c) is also a breach of another provision of a Finance Document), the
Grantor is not liable in damages for breach of this clause 5.7(c) but the Secured Party may exercise its Powers consequent upon
or following that breach.

 

		5.8	Notices to the Secured Party

 

In addition to its obligations in any other Finance
Document, the Grantor must notify the Secured Party as soon as the Grantor becomes aware of any data contained in a registration
under the PPSA with respect to the Mortgage being or becoming incorrect.

 

		5.9	Negative pledge

 

The Grantor must not:

 

		(a)	sell, assign, transfer or otherwise dispose of or part with possession of;

 

		(b)	create or allow to exist or agree to any Encumbrance over; or

 

		(c)	attempt to do anything listed in clause 5.9(a) and 5.9(b) in respect of,

 

any of the Mortgaged Property except
to the extent expressly permitted by any Finance Document.

 

		5.10	Further assurances

 

The Grantor must:

 

		(a)	do anything which the Secured Party reasonably requests to:

 

		(1)	ensure, or enable the Secured Party to ensure, that this deed, the Mortgage, or any Power is fully effective, enforceable and
perfected with the contemplated priority;

 

		(2)	more satisfactorily assure, mortgage or secure to the Secured Party the Mortgaged Property in a manner consistent with the
Finance Documents; or

 

		(3)	aid the exercise of any Power,

 

including executing any document,
delivering Title Documents, executing and delivering blank transfers or giving notice of the Mortgage to any third party;

 

		(b)	without limiting clause 5.10(a), when the Secured Party requests, execute:

 

		(1)	a legal mortgage in favour of the Secured Party over any of the Mortgaged Property which is a Certificated Security; and

 

		(2)	any other form of security which the Secured Party considers appropriate for the Mortgaged Property,

 

each in form and substance required by the Secured Party;

 

		(c)	without limiting clause 5.10(a), cause a third party to provide any Authorisation or take any other action (including executing
any document) required to give effect to clause 5.10(a).

 

    	 	Specific Security Agreement (Shares)  	page 13

     

    

 

5    Undertakings of the Grantor

 

		5.11	Title Documents for Certificated Securities

 

		(a)	The Grantor must deposit with the Secured Party, or as the Secured Party directs:

 

		(1)	all the Title Documents in respect of any of the Mortgaged Property which is a Certificated Security immediately after the
creation of the Mortgage over that Mortgaged Property or the acquisition of any asset which forms part of the Mortgaged Property
and which is a Certificated Security; and

 

		(2)	transfers in a form and of substance acceptable to the Secured Party, of such of the Mortgaged Property that constitutes Certificated
Securities executed by the Grantor with the name of the transferee, the consideration and the date of transfer and execution left
blank.

 

		(b)	Subject to clause 5.11(c), the Secured Party may retain the Title Documents and transfers deposited with the Secured Party
until the Mortgage is discharged under clause 3.

 

		(c)	If the Mortgage is enforced by the Secured Party, the Secured Party, a Receiver or Attorney is entitled:

 

		(1)	to deal with the Title Documents and to complete any transfers as if it was the absolute and unencumbered owner of the Mortgaged
Property to which the Title Documents relate; and

 

		(2)	in exercising a power of sale, to deliver any Title Document or transfers to a purchaser of the Mortgaged Property to which
it relates.

 

		(d)	While Title Documents for Mortgaged Property are, or in accordance with this deed, should be lodged with the Secured Party,
the Grantor must not elect to convert evidence of the Mortgaged Property from certificates to an uncertificated mode for the purposes
of any automated transfer system operated by ASX Limited or for any other purpose.

 

		(e)	If the Grantor makes any election referred to in clause 5.11(d), the Secured Party may treat it as having no effect.

 

		(f)	The Grantor must ensure that the share register and any branch register for each Relevant Corporation is located in Australia.

 

		5.12	Irrevocable direction for Certificated Securities

 

The Grantor must execute and deliver to the Secured
Party on the date of this deed (or before such later date as the Secured Party may agree in writing) the document in the form and
substance of Schedule 3 in respect of the Mortgaged Property which is constituted by Certificated Securities.

 

		5.13	Perfection, registration and protection of security

 

		(a)	The Grantor must ensure that:

 

		(1)	the Mortgage is perfected in relation to all the Mortgaged Property subject to it in all jurisdictions; and

 

		(2)	this deed and the Mortgage are registered and filed in all registers in all jurisdictions 

 

in which it must be perfected, registered and filed,
to ensure its enforceability, validity, perfection and priority against all persons and to be effective as a security.

 

    	 	Specific Security Agreement (Shares)  	page 14

     

    

 

6    Enforcement

 

		(b)	Whenever the Secured Party requires that a Mortgage be perfected in a particular way in relation to any part of the Mortgaged
Property, the Grantor must ensure that the Mortgage is perfected in that way.

 

		(c)	The Grantor will not be in breach of its obligation under this clause 5.13 and its representation and warranty under clause
4.1(d)(2) will not be incorrect or misleading if the Secured Party fails to take any action which can only be taken by the Secured
Party to enable the Mortgage to be perfected as required under this clause 5.13, after written request from the Grantor to take
that action.

 

		(d)	Whenever any part of the Mortgaged Property is transferred to or retained in a place where this deed or the Mortgage, because
of an increase in the Secured Moneys or otherwise, bears insufficient stamp duty or is not registered or recorded, or for any other
reason is of limited or of no force or effect, unenforceable, inadmissible in evidence or of reduced priority, the Grantor must
within 14 days after that transfer or retention ensure that:

 

		(1)	this deed is stamped to the satisfaction of the Secured Party;

 

		(2)	this deed is in full force and effect, enforceable, perfected, admissible in evidence and not of reduced priority; and

 

		(3)	this deed and the Mortgage are registered in that place, or that part of the Mortgaged Property is removed from that place.

 

		5.14	Term of undertakings

 

Each of the Grantor’s undertakings in this clause
5 continues in full force and effect from the date of this deed until the Mortgage in respect of all the Mortgaged Property is
discharged under clause 3.

 

		6	Enforcement

 

		6.1	When enforceable

 

		(a)	If an Event of Default occurs:

 

		(1)	the Mortgage and each Collateral Security are immediately enforceable without the need for any demand or notice to be given
to the Grantor or any other person;

 

		(2)	the Secured Moneys are immediately due and payable without the need for any demand or notice to be given to the Grantor or
any other person other than a notice expressly required by a Finance Document; and

 

		(3)	the right of the Grantor to deal, for any purpose, with any of the Mortgaged Property, other than by or through a Receiver
appointed under this deed, immediately ceases without the need for any demand or notice to be given to the Grantor or any other
person.

 

		(b)	The Secured Party agrees that it will not exercise any Power to enforce the Mortgage under Chapter 4 of the PPSA until an Event
of Default occurs.

 

    	 	Specific Security Agreement (Shares)  	page 15

     

    

 

7    Receiver

 

		6.2	Assistance in realisation

 

After the Mortgage has become enforceable, the Grantor
must take all action required by the Secured Party, Receiver or Attorney to assist any of them to realise the Mortgaged Property
and exercise any Power including:

 

		(a)	executing all transfers, conveyances, assignments and assurances of any of the Mortgaged Property;

 

		(b)	doing anything necessary or desirable under the law in force in any place where the Mortgaged Property is situated ; and

 

		(c)	giving all notices, orders, directions and consents which the Secured Party, Receiver or Attorney thinks expedient.

 

		6.3	Postponing or delaying realisation or enforcement

 

The Secured Party, a Receiver or Attorney may postpone
or delay the exercise of any Power for such period as the Secured Party, Receiver or Attorney may in its absolute discretion decide.

 

		7	Receiver

 

		7.1	Appointment of Receiver

 

If an Event of Default occurs, the Secured Party may
at any time after its occurrence:

 

		(a)	appoint any person or any 2 or more persons jointly, or severally, or jointly and severally to be a receiver or a receiver
and manager of the Mortgaged Property;

 

		(b)	remove any Receiver and on the removal, retirement or death of any Receiver, appoint another Receiver; and

 

		(c)	fix the remuneration and direct payment of that remuneration and any costs, charges and expenses of the Receiver out of the
proceeds of any realisation of the Mortgaged Property.

 

		7.2	Agency of Receiver

 

		(a)	Subject to clause 7.5, each Receiver is the agent of the Grantor.

 

		(b)	The Grantor is responsible for the acts, defaults and remuneration of the Receiver.

 

		7.3	Powers of Receiver

 

Subject to any express exclusion by the terms of the
Receiver’s appointment, the Receiver has, in addition to any powers conferred on the Receiver by applicable law, and whether
or not in possession of the Mortgaged Property or any part of it, the following powers:

 

		(a)	Manage, possession or control: to manage, take possession of Title Documents or assume control of any of the Mortgaged
Property;

 

		(b)	sale: to sell or concur in selling any of the Mortgaged Property to any person:

 

		(1)	by auction, private treaty or tender;

 

    	 	Specific Security Agreement (Shares)  	page 16

     

    

 

7    Receiver

 

		(2)	on such terms and special conditions as the Secured Party or the Receiver thinks fit;

 

		(3)	for cash or for a deferred payment of the purchase price, in whole or in part, with or without interest or security;

 

		(4)	in conjunction with the sale of any property by any other person; and

 

		(5)	in one lot or in separate parcels,

 

and to complete a share transfer in favour of the Secured
Party or any other person designated by the Secured Party;

 

		(c)	grant options to purchase: to grant to any person an option to purchase any of the Mortgaged Property;

 

		(d)	acquire property: to acquire any interest in any property, in the name or on behalf of the Grantor, which on acquisition
forms part of the Mortgaged Property;

 

		(e)	borrowings and security:

 

		(1)	to raise or borrow any money, in its name or the name, or on behalf of the Grantor, from the Secured Party or any person approved
by the Secured Party in writing; and

 

		(2)	to secure money raised or borrowed under clause 7.3(e)(1) by an Encumbrance over any of the Mortgaged Property, ranking in
priority to, equal with, or after, the Mortgage or any Collateral Security;

 

		(f)	income and bank accounts: to do anything to manage or obtain income from any of the Mortgaged Property including operating
any bank account which forms part of the Mortgaged Property or opening and operating a new bank account;

 

		(g)	compromise: to make or accept any compromise or arrangement;

 

		(h)	surrender Mortgaged Property: to surrender or transfer any of the Mortgaged Property to any person;

 

		(i)	exchange Mortgaged Property: to exchange with any person any of the Mortgaged Property for any other property whether
of equal value or not;

 

		(j)	employ or discharge: to employ or discharge any person as an employee, contractor, agent or professional advisor for
any of the purposes of this deed;

 

		(k)	delegate: to delegate to any person any Power of the Receiver;

 

		(l)	perform or enforce documents: to observe, perform, enforce, exercise or refrain from exercising any right, power, authority,
discretion or remedy of the Grantor under, or otherwise obtain the benefit of:

 

		(1)	any document, agreement or right which attaches to or forms part of the Mortgaged Property; and

 

		(2)	any document or agreement entered into in exercise of any Power by the Receiver;

 

		(m)	receipts: to give receipts for all moneys and other assets which may come into the hands of the Receiver;

 

		(n)	take proceedings: to commence, discontinue, prosecute, defend, settle or compromise in its name or the name or on behalf
of the Grantor, any proceedings including proceedings in relation to any insurance in respect of any of the Mortgaged Property;

 

    	 	Specific Security Agreement (Shares)  	page 17

     

    

 

7    Receiver

 

		(o)	insolvency proceedings: to make any debtor bankrupt, wind-up any company, corporation or other entity and do all things
in relation to any bankruptcy or winding-up which the Receiver thinks necessary or desirable including attending and voting at
creditors’ meetings and appointing proxies for those meetings;

 

		(p)	execute documents: to enter into and execute any document or agreement in the name of the Receiver or the name or on
behalf of the Grantor for any of the purposes of this deed;

 

		(q)	rights: to exercise any right, power, authority, discretion or remedy in respect of the Mortgaged Property including:

 

		(1)	any voting right or power;

 

		(2)	the acceptance of any rights issue or other Additional Right;

 

		(3)	proving in any liquidation, scheme of arrangement or other composition for or arrangement with a member or any secured or unsecured
creditor and whether or not under an order of the court;

 

		(4)	consenting on behalf of the Grantor in respect of the proof referred to in clause 7.3(q)(3); and

 

		(5)	receiving all Distributions;

 

		(r)	ability of Grantor: to do anything the Grantor could do in relation to the Mortgaged Property; and

 

		(s)	incidental power: to do anything necessary or incidental to the exercise of any Power of the Receiver.

 

		7.4	Nature of Receiver’s Powers

 

The Powers of the Receiver must be construed independently
and no one Power limits the generality of any other Power. Any dealing under any Power of the Receiver will be on the terms and
conditions the Receiver thinks fit.

 

		7.5	Status of Receiver after commencement of winding up

 

		(a)	The power to appoint a Receiver under clause 7.1 may be exercised even if, at the time an Event of Default occurs or at the
time when a Receiver is appointed, an order has been made or a resolution has been passed for the winding-up of the Grantor.

 

		(b)	If for any reason, including operation of law, a Receiver:

 

		(1)	appointed in the circumstances described in clause 7.5(a); or

 

		(2)	appointed at any other time,

 

ceases to be the agent of the Grantor upon or by virtue
of, or as a result of, an order being made or a resolution being passed for the winding up of the Grantor, then the Receiver immediately
becomes the agent of the Secured Party.

 

		7.6	Powers exercisable by the Secured Party

 

		(a)	Whether or not a Receiver is appointed under clause 7.1, the Secured Party may, on or after the occurrence of an Event of Default
and without giving notice to any person, exercise any Power that could be conferred on a Receiver in addition to any Power of the
Secured Party.

 

    	 	Specific Security Agreement (Shares)  	page 18

     

    

 

8    Application and receipts of money

 

		(b)	The exercise of any Power by the Secured Party, Receiver or Attorney does not cause or deem the Secured Party, Receiver or
Attorney:

 

		(1)	to be a mortgagee in possession;

 

		(2)	to account as mortgagee in possession; or

 

		(3)	to be answerable for any act or omission for which a mortgagee in possession is liable.

 

		7.7	Set off

 

If any Event of Default is subsisting, the Secured Party
may apply any credit balance in any currency in any of the Grantor’s accounts with the Secured Party in and towards satisfaction
of any of the Secured Moneys.

 

		7.8	Notice of exercise of rights

 

The Secured Party, Receiver or Attorney is not required:

 

		(a)	to give notice of the Mortgage or any Collateral Security to any debtor or creditor of the Grantor or to any other person;

 

		(b)	to enforce payment of any money payable to the Grantor including any of the debts or monetary liabilities charged by this deed
or by any Collateral Security; or

 

		(c)	to obtain the consent of the Grantor to any exercise of a Power.

 

		7.9	Termination of receivership and possession

 

The Secured Party may, at any time, terminate the appointment
of a Receiver and may, at any time, give up, or re-take, possession of the Mortgaged Property.

 

		8	Application
                                         and receipts of money

 

		8.1	Order of application

 

		(a)	At any time after the Mortgage is enforceable, all money received by the Secured Party, Receiver, Attorney or any other person
acting on their behalf under this deed or any Collateral Security may be appropriated and applied towards any amount and in any
order that the Secured Party, Receiver, Attorney or that other person determines in its absolute discretion, to the extent not
prohibited by law.

 

		(b)	Failing a determination under clause 8.1(a), the money must be applied in the following manner and order:

 

		(1)	first, in payment of all costs, charges and expenses (including any GST) of the Secured Party, Receiver or Attorney incurred
in or incidental to the exercise or performance or attempted exercise or performance of any Power;

 

		(2)	second, in payment of any other outgoings the Secured Party, Receiver or Attorney thinks fit to pay;

 

		(3)	third, in payment to the Receiver of his remuneration;

 

    	 	Specific Security Agreement (Shares)  	page 19

     

    

 

8    Application and receipts of money

 

		(4)	fourth, in payment and discharge, in order of their priority, of any Encumbrances of which the Secured Party, Receiver or Attorney
is aware and which have priority to the Mortgage;

 

		(5)	fifth, in payment to the Secured Party towards satisfaction of the Secured Moneys and applied against interest, principal or
any other amount the Secured Party, Receiver or Attorney thinks fit;

 

		(6)	sixth, in payment only to the extent required by law, in order of their priority, of other Encumbrances in respect of the Mortgaged
Property of which the Secured Party, Receiver or Attorney is aware and which are due and payable in accordance with their terms;

 

		(7)	seventh, in payment of the surplus, if any, without interest to the Grantor, and the Secured Party, Receiver or Attorney may
pay the surplus to the credit of an account in the name of the Grantor in the books of any bank carrying on business within Australia
and having done so is under no further liability in respect of that surplus.

 

		(c)	Any amount required by law to be paid in priority to any amount specified in clause 8.1(b) must be paid before any money is
applied in payment of the amount specified in clause 8.1(b).

 

		8.2	Money actually received

 

In applying any money towards satisfaction of the Secured
Moneys the Grantor is to be credited only with so much of the money which is available for that purpose (after deducting any GST
imposed) and which is actually received by the Secured Party, Receiver or Attorney. The credit dates from the time of receipt.

 

		8.3	Amounts contingently due

 

		(a)	If at the time of a distribution of any money under clause 8.1 any part of the Secured Moneys is contingently owing to the
Secured Party, the Secured Party, Receiver or Attorney may retain an amount equal to the amount contingently owing or any part
of it.

 

		(b)	If the Secured Party, Receiver or Attorney retains any amount under clause 8.3(a), it must place that amount on short-
term interest bearing deposit until the amount contingently owing becomes actually due and payable or otherwise ceases to be contingently
owing at which time the Secured Party, Receiver or Attorney must:

 

		(1)	pay to the Secured Party the amount which has become actually due to it; and

 

		(2)	apply the balance of the amount retained, together with any interest on the amount contingently owing, in accordance with clause
8.1.

 

		8.4	Notice of an Encumbrance

 

		(a)	If the Secured Party receives actual or constructive notice of an Encumbrance over the Mortgaged Property or of the perfection
of an Encumbrance, the Secured Party:

 

		(1)	may open a new account in the name of the Grantor in its books; or

 

		(2)	is regarded as having opened a new account in the name of the Grantor in its books,

 

on the date it received or was regarded as having received
notice of the Encumbrance or perfection.

 

    	 	Specific Security Agreement (Shares)  	page 20

     

    

 

8    Application and receipts of money

  

		(b)	From the date on which that new account is opened or regarded as opened:

 

		(1)	all payments made by the Grantor to the Secured Party; and

 

		(2)	all financial accommodation and advances by the Secured Party to the Grantor,

 

are or are regarded as credited and debited, as the case
may be, to the new account unless otherwise specified by the Secured Party.

 

		(c)	The payments by the Grantor under clause 8.4(b) must be applied in the manner determined by the Secured Party or, failing a
determination:

 

		(1)	first, in reduction of the debit balance, if any, in the new account; and

 

		(2)	second, if there is no debit balance in the new account, in reduction of the Secured Moneys which have not been debited or
regarded as debited to the new account.

 

		8.5	Secured Party’s statement of indebtedness

 

A certificate signed by any Officer of the Secured Party
stating:

 

		(a)	the amount of the Secured Moneys due and payable; or

 

		(b)	the amount of the Secured Moneys, whether currently due and payable or not,

 

is sufficient evidence of that amount as at the date
stated on the certificate, or failing that as at the date of the certificate, unless the contrary is proved.

 

		8.6	Secured Party’s receipts

 

		(a)	The receipt of any Officer of the Secured Party for any money payable to or received by the Secured Party under this deed exonerates
the payer from all liability to enquire whether any of the Secured Moneys have become payable.

 

		(b)	Every receipt of an Officer of the Secured Party effectually discharges the payer from:

 

		(1)	any future liability to pay the amount specified in the receipt; and

 

		(2)	being concerned to see to the application of, or being answerable or accountable for any loss or misapplication of, the amount
specified in the receipt.

 

		8.7	Conversion of currencies on application

 

In making an application under clause 8.1, the Secured
Party, Receiver or Attorney may itself, or through its bankers, purchase one currency with another, whether or not through an intermediate
currency, whether spot or forward, in the manner and amounts and at the times it thinks fit.

 

		8.8	Amounts payable on demand

 

If an amount payable under a Finance Document is not
expressed to be payable on a specified date, that amount is payable by the Grantor on demand by the Secured Party.

 

    	 	Specific Security Agreement (Shares)  	page 21

     

    

 

9    Power of Attorney

 

		9	Power of Attorney

 

		9.1	Appointment of Attorney

 

In consideration of the Secured Party entering into
the Finance Documents and for other consideration received, the Grantor irrevocably appoints the Secured Party and each Receiver
severally its Attorney for the purposes set out in clause 9.2.

 

		9.2	Purposes of appointment

 

The Attorney may, in its name or in the name of the
Grantor, Secured Party or Receiver do any of the following:

 

		(a)	do any thing which ought to be done by the Grantor under this deed or any other Finance Document;

 

		(b)	exercise any right, power, authority, discretion or remedy of the Grantor under:

 

		(1)	this deed;

 

		(2)	any other Finance Document; or

 

		(3)	any agreement forming part of the Mortgaged Property;

 

		(c)	do any thing which in the opinion of the Secured Party, Receiver or Attorney is necessary or expedient for securing or perfecting
the Mortgage and any Collateral Security;

 

		(d)	execute in favour of the Secured Party any legal mortgage, transfer, assignment and any other assurance of any of the Mortgaged
Property;

 

		(e)	execute deeds of assignment, composition or release;

 

		(f)	do all things necessary to enable a transfer to be registered in favour of the Secured Party, its nominee or any other person
as the Secured Party directs and deliver any Title Documents as the Secured Party directs;

 

		(g)	sell or otherwise part with the possession of any of the Mortgaged Property; and

 

		(h)	generally, do any other thing, whether or not of the same kind as those set out in clause 9.2(a) to 9.2(g), which in the opinion
of the Secured Party, Receiver or Attorney is necessary or expedient:

 

		(1)	to more satisfactorily secure to the Secured Party the payment of the Secured Moneys; or

 

		(2)	in relation to any of the Mortgaged Property.

 

		9.3	Exercise after Event of Default

 

An Attorney must not exercise any Power under clause
9.2 until an Event of Default occurs but a breach of this clause 9.3 does not affect the validity of the Attorney’s act.

 

		9.4	Delegation and substitution

 

The Attorney may appoint a substitute attorney.

 

    	 	Specific Security Agreement (Shares)  	page 22

     

    

 

10    Protection

 

		10	Protection

 

		10.1	Protection of third parties

 

		(a)	No person dealing with the Secured Party, Receiver or Attorney is bound to enquire whether:

 

		(1)	the Mortgage has become enforceable;

 

		(2)	the Receiver or Attorney is duly appointed; or

 

		(3)	any Power has been properly or regularly exercised.

 

		(b)	No person dealing with the Secured Party, Receiver or Attorney is affected by express notice that the exercise of any Power
was unnecessary or improper.

 

		(c)	The irregular or improper exercise of any Power is, as regards the protection of any person, regarded as authorised by the
Grantor and this deed and is valid.

 

		10.2	Protection of the Secured Party, Receiver and Attorney

 

		(a)	The Secured Party, Receiver or Attorney is not liable for any loss or damage, including consequential loss or damage, arising
directly or indirectly from:

 

		(1)	any omission or delay in the exercise or non exercise of any Power; or

 

		(2)	the neglect, default or dishonesty of any manager, Officer, employee, agent, accountant, auctioneer or solicitor of the Grantor,
the Secured Party, the Receiver or Attorney.

 

		(b)	Clause 10.2(a) does not apply:

 

		(1)	in respect of the Secured Party, to any loss or damage which arises from the wilful default, fraud or gross negligence of the
Secured Party; and

 

		(2)	in respect of a Receiver or Attorney, to any loss or damage which arises from the wilful default, fraud or gross negligence
of the Receiver or Attorney.

 

		11	Saving provisions

 

		11.1	Statutory powers

 

		(a)	Subject to clause 11.1(b), the powers of the Secured Party under this deed or any Collateral Security are in addition to any
powers the Secured Party has under applicable law.

 

		(b)	If the Secured Party exercises a Power in connection with this deed, that exercise is taken not to be an exercise of a Power
under the PPSA unless the Secured Party states otherwise at the time of exercise. However, this clause 11.1(b) does not apply to
a right, power or remedy which can only be exercised under the PPSA.

 

    	 	Specific Security Agreement (Shares)  	page 23

     

    

 

11    Saving provisions

 

		11.2	No notice required unless mandatory

 

To the extent the law permits, the Grantor waives:

 

		(a)	its rights to receive any notice that is required by:

 

		(1)	any provision of the PPSA (including a notice of a verification statement); or

 

		(2)	any other law, before a secured party or Receiver exercises a right, power or remedy; and

 

		(b)	any time period that must otherwise lapse under any law before a secured party or receiver exercises a right, power or remedy.

 

If the law which requires a period of notice or a lapse
of time cannot be excluded, but the law provides that the period of notice or lapse of time may be agreed, that period or lapse
is one day or the minimum period the law allows to be agreed (whichever is the longer).

 

However, nothing in this clause prohibits the Secured
Party or any Receiver from giving a notice under the PPSA or any other law.

 

		11.3	Continuing security

 

The Mortgage is a continuing security despite:

 

		(a)	any settlement of account; or

 

		(b)	the occurrence of any other thing,

 

and remains in full force and effect until the Secured
Party has given a discharge of the Mortgage in respect of all the Mortgaged Property under clause 3.

 

		11.4	No merger of security

 

		(a)	Nothing in this deed merges, extinguishes, postpones, lessens or otherwise prejudicially affects:

 

		(1)	any Encumbrance or indemnity in favour of the Secured Party contained in any Finance Document; or

 

		(2)	any Power.

 

		(b)	No other Encumbrance or Finance Document which the Secured Party has the benefit of in any way prejudicially affects any Power.

 

		11.5	Exclusion of moratorium

 

Without limiting clause 11.6 to the extent not excluded
by law, a provision of any legislation (other than a provision of the PPSA mentioned in section 115(1) of the PPSA) which directly
or indirectly:

 

		(a)	lessens, varies or affects in favour of the Grantor any obligations under this deed or any Finance Document;

 

		(b)	stays, postpones or otherwise prevents or prejudicially affects the exercise by the Secured Party, Receiver or Attorney of
any Power; or

 

		(c)	confers any right on the Grantor or imposes any obligation on the Secured Party or a Receiver or Attorney in connection with
the exercise of any Power,

 

is negatived and excluded from this deed and any Finance
Document and all relief and protection conferred on the Grantor by or under that legislation is also negatived and excluded.

 

    	 	Specific Security Agreement (Shares)  	page 24

     

    

 

11    Saving provisions

 

		11.6	Exclusion of PPSA provisions

 

To the extent the law permits:

 

		(a)	the provisions of the PPSA specified in section 115(1) of that Act (except sections 121(4) (enforcement of security interests
in liquid assets-notice to higher priority parties and grantor), 123 (right to seize collateral), 128 (secured party may dispose
of collateral), 129 (disposal by purchase), 134 (retention of collateral), 135 (notice of retention)) are excluded in full and
will not apply to the Mortgage;

 

		(b)	in the circumstances permitted under section 115(7) of the PPSA, sections 132 (secured party to give statement of account)
and 137(3) (obligation to sell) of the PPSA are also excluded and will not apply to the Mortgage; and

 

		(c)	the Grantor agrees not to exercise its rights to make any request of the Secured Party under section 275 of the PPSA, to authorise
the disclosure of any information under that section or to waive any duty of confidence that would otherwise permit non-disclosure
under that section.

 

		11.7	Conflict

 

Where any right, power, authority, discretion or remedy
of the Secured Party, Receiver or an Attorney under this deed or any Finance Document is inconsistent with the powers conferred
by applicable law then, to the extent not prohibited by that law, the powers conferred by applicable law are regarded as negatived
or varied to the extent of the inconsistency.

 

		11.8	Consent of Secured Party

 

		(a)	Whenever the doing of any thing by the Grantor is dependent upon the consent or approval of the Secured Party, the Secured
Party may withhold its consent or give it conditionally or unconditionally in its absolute discretion unless expressly stated otherwise
in a Finance Document.

 

		(b)	Any conditions imposed on the Grantor under clause 11.8(a) must be complied with by the Grantor.

 

		11.9	Completion of blank securities

 

		(a)	The Secured Party, a Receiver, Attorney or any Officer of the Secured Party may complete, in favour of the Secured Party, any
appointee of the Secured Party or any purchaser, any instrument executed in blank by or on behalf of the Grantor and deposited
with the Secured Party as security under this deed or under any Collateral Security.

 

		(b)	The Secured Party, a Receiver, Attorney or any Officer of the Secured Party must not exercise any Power under clause 11.9(a)
until an Event of Default occurs but a breach of this clause 11.9(b) does not affect the validity of the act of the Secured Party,
Receiver, Attorney or Officer of the Secured Party.

 

    	 	Specific Security Agreement (Shares)  	page 25

     

    

 

12    General

 

		11.10	Principal obligations

 

The Mortgage and each Collateral Security is:

 

		(a)	a principal obligation and is not ancillary or collateral to any other Encumbrance (other than another Collateral Security)
or other obligation; and

 

		(b)	independent of, and unaffected by, any other Encumbrance or other obligation which the Secured Party may hold at any time in
respect of the Secured Moneys.

 

		11.11	No obligation to marshal

 

Before the Secured Party enforces the Mortgage, it is
not required, to marshal or to enforce or apply under, or appropriate, recover or exercise:

 

		(a)	any Encumbrance or Collateral Security held, at any time, by the Secured Party; or

 

		(b)	any moneys or assets which the Secured Party, at any time, holds or is entitled to receive.

 

		11.12	Non-avoidance

 

If any payment by the Grantor to the Secured Party is
at any time avoided for any reason including any legal limitation, disability or incapacity of or affecting the Grantor or any
other thing, and whether or not:

 

		(a)	any transaction relating to the Secured Moneys was illegal, void or substantially avoided; or

 

		(b)	any thing was or ought to have been within the knowledge of the Secured Party,

 

the Grantor:

 

		(c)	as an additional, separate and independent obligation, indemnifies the Secured Party against that avoided payment; and

 

		(d)	acknowledges that any liability of the Grantor under the Finance Documents and any Power is the same as if that payment had
not been made.

 

		11.13	Increase in financial accommodation

 

The Secured Party may at any time increase the financial
accommodation provided under any Finance Document or otherwise provide further financial accommodation.

 

		12	General

 

		12.1	Confidential information

 

The Secured Party must not disclose to any person:

 

		(a)	this Deed; or

 

		(b)	any information about the Grantor,

 

except as permitted in the Principal Agreement.

 

    	 	Specific Security Agreement (Shares)  	page 26

     

    

 

12    General

 

		12.2	Performance by Secured Party of the Grantor’s obligations

 

If the Grantor defaults in fully and punctually performing
any obligation contained or implied in any Finance Document, the Secured Party may, without prejudice to any Power, do all things
necessary or desirable, in the opinion of the Secured Party, to make good or attempt to make good that default to the satisfaction
of the Secured Party.

 

		12.3	Grantor to bear cost

 

Any thing which must be done by the Grantor under this
deed, whether or not at the request of the Secured Party, must be done at the cost of the Grantor.

 

		12.4	Notices

 

Any notice or other communication including any request,
demand, consent or approval, to or by a party to this deed must be given in accordance with the notice requirements of the Principal
Agreement.

 

		12.5	Governing law and jurisdiction

 

		(a)	This deed is governed by the laws of Victoria, Australia.

 

		(b)	The parties irrevocably submit to the non exclusive jurisdiction of the courts of Victoria, Australia.

 

		(c)	The parties irrevocably waive any objection to the venue of any legal process on the basis that the process has been brought
in an inconvenient forum.

 

		(d)	The parties irrevocably waive any immunity in respect of its obligations under this deed that it may acquire from the jurisdiction
of any court or any legal process for any reason including the service of notice, attachment before judgment, attachment in aid
of execution or execution.

 

		(e)	The Grantor appoints Discovery Energy SA Pty Ltd of Level 8, 350 Collins Street, Melbourne, 3000 in relation to proceedings
in Victoria as its agent to receive service of any legal process on its behalf without excluding any other means of service permitted
by the law of the relevant jurisdiction.

 

		12.6	Prohibition and enforceability

 

		(a)	Any provision of, or the application of any provision of, any Finance Document or any Power which is prohibited in any jurisdiction
is, in that jurisdiction, ineffective only to the extent of that prohibition.

 

		(b)	Any provision of, or the application of any provision of, any Finance Document which is void, illegal or unenforceable in any
jurisdiction does not affect the validity, legality or enforceability of that provision in any other jurisdiction or of the remaining
provisions in that or any other jurisdiction.

 

		12.7	Waivers

 

		(a)	Waiver of any right arising from a breach of this deed or of any Power arising upon default under this deed or upon the occurrence
of an Event of Default must be in writing and signed by the party granting the waiver.

 

    	 	Specific Security Agreement (Shares)  	page 27

     

    

 

12    General

 

		(b)	A failure or delay in exercise, or partial exercise, of:

 

		(1)	a right arising from a breach of this deed or the occurrence of an Event of Default; or

 

		(2)	a Power created or arising upon default under this deed or upon the occurrence of an Event of Default,

 

does not result in a waiver of that right or Power.

 

		(c)	A party is not entitled to rely on a delay in the exercise or non exercise of a right or Power arising from a breach of this
deed or on a default under this deed or on the occurrence of an Event of Default as constituting a waiver of that right or Power.

 

		(d)	A party may not rely on any conduct of another party as a defence to exercise of a right or Power by that other party.

 

		(e)	This clause may not itself be waived except by writing.

 

		12.8	Variation

 

A variation of any term of this deed must be in writing
and signed by the parties.

 

		12.9	Cumulative rights

 

The Powers are cumulative and do not exclude any other
right, power, authority, discretion or remedy of the Secured Party, Receiver or Attorney.

 

		12.10	Assignment

 

		(a)	Subject to any Finance Document, the Secured Party may assign its rights under this deed and each Collateral Security without
the consent of the Grantor.

 

		(b)	The Grantor may not assign any of its rights under this deed or any Collateral Security without the prior written consent of
the Secured Party.

 

		12.11	Counterparts

 

This deed may be executed in any number of counterparts.
All counterparts taken together constitute one instrument. A party may execute this deed by signing any counterpart.

 

		12.12	Attorneys

 

Each of the attorneys executing this deed states that
the attorney has no notice of the revocation of the power of attorney appointing that attorney.

 

    	 	Specific Security Agreement (Shares)  	page 28

     

    

 

Schedules

 

	Table of contents	 
	 	 
	Notice details	30
	 	 
	Notice of lodgment of Deposit Documents	31
	 	 
	Irrevocable direction from Grantor	32

 

28-

 

    	 	Specific Security Agreement (Shares)  	page 29

     

    

 

Schedule 1

 

Notice
details

 

	 	Discovery Energy Corp.
	 	 
	Address	One Riverway Drive, Suite 1700, Houston, Texas 77056 
	 	 
	Attention	Keith Spickelmier
	 	 
	Phone	(713) 248-5981
	 	 
	Fax	(713) 622-1937
	 	 
	Email	kspickelmier1@comcast.net and kjm@discoveryenergy.com

 

	 	Texican Energy Corporation
	 	 
	Address	One Allen Center, Suite 1150, 500 Dallas Street, Houston, Texas 77002
	 	 
	Attention	 
	 	 
	Phone	 
	 	 
	Fax	 
	 	 
	Email	 

 

    	 	Specific Security Agreement (Shares)  	page 30

     

    

 

Schedule 2

 

Notice
of lodgment of Deposit Documents

 

Clause 2.1(b)(2)

 

To: Texican Energy Corporation

 

We refer to the Specific Security Agreement (Shares)
dated 16 August 2016 between you and us (Mortgage).

 

Attached to this notice is the Share Certificate for
Discovery Energy SA Pty Ltd which we now lodge with you for the purposes of the Mortgage as required by clause 2.1(b) of the Mortgage.

 

We represent and warrant to you that the equity capital
of Discovery Energy SA Pty Limited is fully represented by [insert full details]1,000,000 Ordinary Fully Paid Shares
and that we are registered as the holder of 1,000,000 Ordinary Fully Paid Shares.

 

	date ►	August 16, 2016	 
	 	 	 
	 	Executed for Discovery Energy Corp. by its authorised signatory:
	 	 	 
	sign here ►	 	 

 

    	 	Specific Security Agreement (Shares)  	page 31

     

    

 

Schedule 3

 

Irrevocable
direction from Grantor

 

Clause 5.12 (Irrevocable direction)

 

DISCOVERY ENERGY CORP.

 

August __, 2016

 

The Share Registrar

 

Discovery Energy SA Pty Ltd (Company)

 

Dear Sir

 

We refer to the 1,000,000 Ordinary Fully Paid Shares
(Shares) that we acquired in the Company on 15 May 2012.

 

Under section 1071H of the Corporations Act you are
irrevocably directed to deliver to Texican Energy Corporation (at [insert address of Secured Party], Attention: [insert
details of to whose attention the share scrip should be delivered]) all certificates and other documents of title in relation
to the Shares, and any shares, debentures or interests issued or made available in relation to the Shares.

 

Yours faithfully

 

for and on behalf of

 

Discovery Energy Corp.

 

	 	 	 
	 	Attorney/Director	 
	 	 	 
	print name	 	 

 

    	 	Specific Security Agreement (Shares)  	page 32

     

    

 

Signing page

 

	 	Executed
    as a deed	 
	 	 	 
	 	Grantor	 
	 	 	 
	 	
        Signed
        by

        Discovery Energy Corp.

        by
	

 

	sign here ►	 	 
	 	Authorised Signatory 	 
	 	 	 
	print name	 	 
	 	 	 
	 	in the presence of:	 
	 	 	 
	sign here ►	 	 
	 	witness	 
	 	 	 
	print name	 	 

 

    	 	Specific Security Agreement (Shares)  	page 33

     

    

 

 

	 	Secured Party	 
	 	 	 
	 	
        Signed sealed and delivered for

        Texican Energy Corporation
	

 

	sign here ►	 	 
	 	Authorised Signatory	 
	 	 	 
	print name	 	 
	 	 	 
	 	in the presence of	 
	 	 	 
	sign here ►	 	 
	 	Witness	 
	 	 	 
	print name	 	 
	 	 	 
	print address	 	 

 

    	 	Specific Security Agreement (Shares)  	page 34Exhibit 10.05

 

	 	Deed
	 	 
	 	16 August 2016 

 

	General security 

agreement	 
	 	 
	Discovery Energy SA Pty Ltd	 
	 	 
	Texican Energy Corporation	 

 

 

      

     

    

 

Contents

 

	 	Table of contents	 
	 	 	 
	1	Definitions, interpretation and deed components	2
	 	1.1	Definitions	2
	 	1.2	Interpretation	6
	 	1.3	Interpretation of inclusive expressions	7
	 	1.4	Incorporated definitions from Principal Agreement	8
	 	1.5	PPSA incorporated definitions	8
	 	1.6	Deed components	8
	 	 	 	 
	2	Security	8
	 	2.1	Security interest	8
	 	2.2	Priority	8
	 	2.3	Collection of proceeds of debts	8
	 	2.4	Controlled Account	9
	 	2.5	Proceeds	9
	 	2.6	Authorisation	10
	 	 	 	 
	3	Discharge of the Security	10
	 	3.1	Discharge	10
	 	3.2	Final discharge	10
	 	 	 	 
	4	Representations and warranties, undertakings	11
	 	4.1	Representations and warranties	11
	 	4.2	Survival of representations and warranties	12
	 	4.3	Reliance	12
	 	4.4	Performance under the Finance Documents	12
	 	4.5	Notices to the Secured Party	12
	 	4.6	Negative pledge and disposal of assets	13
	 	4.7	Permitted dealings	13
	 	4.8	Revolving Assets	13
	 	4.9	Conversion to Revolving Assets	13
	 	4.10	Inventory	13
	 	4.11	Further assurances	14
	 	4.12	Title Documents and Chattel Paper	14
	 	4.13	Perfection, registration and protection of Security	15
	 	4.14	No caveats	15
	 	4.15	Term of undertakings	15
	 	 	 	 
	5	Enforcement	16
	 	5.1	When enforceable	16
	 	5.2	No dealing with assets	16
	 	5.3	Assistance in realisation	16
	 	5.4	Postponing or delaying realisation or enforcement	16
	 	 	 	 
	6	Receiver	17
	 	6.1	Appointment of Receiver	17
	 	6.2	Agency of Receiver	17
	 	6.3	Powers of Receiver	17
	 	6.4	Nature of Receiver’s Powers	19
	 	6.5	Status of Receiver after commencement of winding-up	19

 

    
	 	General security agreement 	Contents 1

  

     

    

 

Contents

 

	 	6.6	Powers exercisable by the Secured Party	19
	 	6.7	Set-off	20
	 	6.8	Notice of exercise of rights	20
	 	6.9	Termination of receivership and possession	20
	 	 	 	 
	7	Application and receipts of money	20
	 	7.1	Order of application	20
	 	7.2	Money actually received	21
	 	7.3	Amounts contingently due	21
	 	7.4	Notice of an Encumbrance	21
	 	7.5	Secured Party’s statement of indebtedness	22
	 	7.6	Secured Party’s receipts	22
	 	7.7	Conversion of currencies on application	22
	 	7.8	Amounts payable on demand	22
	 	 	 	 
	8	Power of attorney	22
	 	8.1	Appointment of Attorney	22
	 	8.2	Purposes of appointment	23
	 	8.3	Exercise after Event of Default	23
	 	8.4	Delegation and substitution	23
	 	 	 	 
	9	Protection	23
	 	9.1	Protection of third parties	23
	 	9.2	Protection of the Secured Party, Receiver and Attorney	24
	 	 	 	 
	10	Savings provisions	24
	 	10.1	Statutory powers	24
	 	10.2	No notice required unless mandatory	24
	 	10.3	Appointment of nominee for PPSA registration	25
	 	10.4	Continuing security	25
	 	10.5	No merger of security	25
	 	10.6	Exclusion of moratorium	25
	 	10.7	Exclusion of PPSA provisions	26
	 	10.8	Conflict	26
	 	10.9	Consent of Secured Party	26
	 	10.10	Completion of blank securities	26
	 	10.11	Principal obligations	26
	 	10.12	No obligation to marshal	27
	 	10.13	Non avoidance	27
	 	10.14	Increase in financial accommodation	27
	 	 	 	 
	11	Third party provisions	27
	 	11.1	Suspense account	27
	 	11.2	Independent obligations	28
	 	11.3	Unconditional nature of obligations	28
	 	11.4	No competition	30
	 	 	 	 
	12	General	31
	 	12.1	Confidential information	31
	 	12.2	Performance by Secured Party of the Grantor’s obligations	31
	 	12.3	Grantor to bear cost	31
	 	12.4	Notices	31
	 	12.5	Governing law and jurisdiction	31

 

    
	 	General security agreement 	Contents 2

  

     

    

 

Contents

 

	 	12.6	Prohibition and enforceability	31
	 	12.7	Waivers	32
	 	12.8	Variation	32
	 	12.9	Cumulative rights	32
	 	12.10	Assignment	32
	 	12.11	Counterparts	32
	 	12.12	Attorneys	32

 

	 	Schedules	 
	 	 	 
	 	Schedule 1	 
	 	Notice details	34
	 	 	 
	 	Schedule 2	 
	 	Serial numbered goods or intangible property	35
	 	 	 
	 	Schedule 3	 
	 	Secured Property with a value greater than $25,000 located outside Australia	37
	 	 	 
	 	Schedule 4	 
	 	Disclosed Contracts	38
	 	 	 
	 	Schedule 5	 
	 	Secured Property in relation to which the Security may be perfected by control	39
	 	 	 
	 	Signing page	40

 

    
	 	General security agreement 	Contents 3

  

     

    

 

	General security agreement

 

Date ►
       16 August 2016

 

Between the parties

 

	Grantor	
        Discovery Energy SA Pty Ltd

        ABN 89 158 204 052 of Level 8, 350 Collins Street,

        Melbourne 3000

        Australia

	 	 
	Secured Party	
        Texican Energy Corporation

        One Allen Center, Suite 1150

        500 Dallas Street

        Houston, Texas 77002

 

	Recitals	
        1   The Grantor
        is, or will be, the legal and beneficial owner of or otherwise has or will have sufficient right, interest or power to grant a
        security interest in the Secured Property.

         

        2   The Grantor
        has agreed to create the Security to secure the payment of the Secured Moneys.

	 	 
	This deed witnesses 	that, for valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows: 

 

    
	 	General security agreement 	page 1

  

     

    

 

		1	Definitions, interpretation and deed
                                         components

 

		1.1	Definitions

 

The meanings of the terms used in this deed are set
out below.

 

	Term	 	Meaning
	 	 	 
	Attorney	 	an attorney appointed under this deed.
	 	 	 
	Australian Guarantee	 	the document entitled ‘Deed of Guarantee and Indemnity’ between the Grantor and the Secured Party dated on or about the date of this deed.
	 	 	 
	Australian Specific Security Agreement	 	the document entitled ‘Specific Security Deed (Shares)’ between the Principal Debtor and the Secured Party dated on or about the date of this deed.
	 	 	 
	Collateral Security 	 	any present or future Encumbrance, Guarantee or other document or agreement created or entered into by a Transaction Party or any other person as security for, or to credit enhance, the payment of any of the Secured Moneys.
	 	 	 
	Controlled Account	 	a bank account opened by the Grantor in accordance with clause 2.4. 
	 	 	 
	Control Event	 	
        1   In respect of
        any Secured Property that is, or would have been, a Revolving Asset:

         

        ·    the
        Grantor breaches, or attempts to breach clause 4.6(a) in respect of the Secured Property or takes any step which would result in
        it doing so;

         

        ·    a
        person takes a step (including signing a notice or direction) which may result in Taxes or an amount owing to a Government Agency,
        ranking ahead of the Security; or

         

        ·    the
        Secured Party gives a notice to the Grantor that the Secured Property is not a Revolving Asset. (However, the Secured Party may
        only give a notice if the Secured Party reasonably considers that it is necessary to do so to protect its rights under this document
        or if an Event of Default is continuing); or

 

    
	 	General security agreement 	page 2

  

     

    

 

1   Definitions, interpretation
and deed components

 

	Term	 	Meaning
	 	 	 
	 	 	
        2   In
        respect of all Secured Property that is or would have been Revolving Assets:

         

        ·   an
        administrator, liquidator or provisional liquidator is appointed in respect of the Grantor or the winding up of the Grantor begins;

         

        ·   a
        receiver, receiver and manager or Controller is appointed to any of the Grantor’s property; or

         

        ·   something
        having a substantially similar effect to the above 2 paragraphs or either of them happens under any law.

	 	 	 
	Corporations Act 	 	the Corporations Act 2001 (Cth).
	 	 	 
	debt	 	includes debts owing by a bank or other financial institution, including in relation to a current trading account.
	 	 	 
	Designated Bank	 	the bank with which a Controlled Account is maintained.
	 	 	 
	Disclosed Contract	 	a contract described in Schedule 4 or any other contract which the Secured Party and the Grantor agree is a Disclosed Contract for the purposes of this deed. 
	 	 	 
	Event of Default 	 	an Event of Default as defined in the Principal Agreement and any other event of default (however described) under, or as defined in, any Finance Document.
	 	 	 
	Finance Document 	 	
        1   this
        deed;

         

        2   each
        Collateral Security;

         

        3   the
        Principal Agreement;

         

        4   the
        Australian Guarantee;

         

        5   the
        Australian Specific Security Agreement;

         

        6   the
        US Security Agreement;

         

        7   the
        Securities Purchase Agreement;

         

        8   any
        other Finance Document as defined in the Principal Agreement;

         

        9   any
        document which the Grantor and the Secured Party agree, now or in the future, is a Finance Document for the purposes of this deed,

         

        or any document or agreement entered into or given
        under any of the above.

	 	 	 
	Intellectual Property Rights 	 	all patents, trade marks, service marks, designs, copyrights, business names, trade secrets, know how and other intellectual property rights and interests (in each case whether registered under any statute or not).

 

    
	 	General security agreement 	page 3

  

     

    

 

1   Definitions, interpretation
and deed components

 

	Term	 	Meaning
	 	 	 
	Marketable Securities	 	
        1    marketable
        securities as defined in section 9 of the Corporations Act; and

         

        2    any
        units (whatever called) in a trust estate which represent a legal or beneficial interest in any of the income or assets of that
        trust estate and includes any options to acquire any units as described.

	 	 	 
	Permitted Encumbrance	 	the meaning given to the term “Permitted Lien” in the Debentures (as defined in the Securities Purchase Agreement).
	 	 	 
	Petroleum Exploration Licence	 	as defined in the Principal Agreement.
	 	 	 
	Power	 	any right, power, authority, discretion or remedy conferred on the Secured Party, a Receiver or an Attorney by any Finance Document or any applicable law.
	 	 	 
	PPSA	 	the Personal Property Securities Act 2009 (Cth).
	 	 	 
	PPSA Security Interest	 	a security interest as defined in the PPSA.
	 	 	 
	Principal Agreement 	 	the terms of the Senior Secured Convertible Debenture issued by the Principal Debtor to the Secured Party dated 17 August 2016 and thereafter.
	 	 	 
	Principal Debtor 	 	Discovery Energy Corporation 
	 	 	 
	Priority Encumbrance	 	
        1   a
        mandatorily preferred by law; or

         

        2   approved
        by the Secured Party as a Priority Encumbrance for the purposes of this deed.

	 	 	 
	Receiver	 	a receiver or receiver and manager appointed under this deed.
	 	 	 
	Related Body Corporate	 	a “related body corporate” as defined in section 50 of the Corporations Act.

 

    
	 	General security agreement 	page 4

  

     

    

 

1   Definitions, interpretation
and deed components

 

	Term	 	Meaning
	 	 	 
	Revolving Asset	 	
        any Secured Property:

         

        ·   which
        is;

         

        –   inventory;

         

        –   a
        negotiable instrument;

         

        –   machinery,
        plant, or equipment which is not inventory and has a value of less than A$1,000 or its equivalent;

         

        –   money
        (including money withdrawn or transferred to a third party from an account of the Grantor with a bank or other financial institution);
        and

         

        ·   in
        relation to which no Control Event has occurred, subject to clause 4.9.

	 	 	 
	Secured Moneys 	 	
        all debts and monetary liabilities of the Grantor and the Principal
        Debtor to the Secured Party under or in relation to any Finance Document and in any capacity, irrespective of whether the debts
        or liabilities:

         

        1   are
        present or future;

         

        2   are
        actual, prospective, contingent or otherwise;

         

        3   are
        at any time ascertained or unascertained;

         

        4    are
        owed or incurred by or on account of the Grantor or the Principal Debtor alone, or severally or jointly with any other person;

         

        5    are
        owed to or incurred for the account of the Secured Party alone, or severally or jointly with any other person;

         

        6    are
        owed to any other person as agent (whether disclosed or not) for or on behalf of the Secured Party;

         

        7    are
        owed or incurred as principal, interest, fees, charges, Taxes, damages (whether for breach of contract or tort or incurred on any
        other ground), losses, costs or expenses, or on any other account;

         

        8    are
        owed to or incurred for the account of the Secured Party directly or as a result of:

         

        ·    the
        assignment or transfer to the Secured Party of any debt or liability of the Grantor or the Principal Debtor; or

         

        ·   any
        other dealing with any such debt or liability;

         

        9    are
        owed to or incurred for the account of the Secured Party before the date of this deed or before the date of any assignment of this
        deed to the Secured Party by any other person or otherwise; or

         

        10  comprise
        any combination of the above.

	 	 	 
	Secured Property	 	all the Grantor’s present and after-acquired property. It includes anything in respect of which the Grantor has at any time sufficient right, interest or power to grant a security interest, excluding for all purposes, the Petroleum Exploration Licence, but including any proceeds thereof.

 

    
	 	General security agreement 	page 5

  

     

    

 

1   Definitions, interpretation
and deed components

 

	Term	 	Meaning
	 	 	 
	Securities Purchase Agreement	 	the purchase agreement for the Senior Secured Convertible Debentures dated 27 May 2016 between the Principal Debtor, the Secured Party and DEC Funding LLC, as amended by a first amendment dated as of [ ] August 2016.
	 	 	 
	Security	 	the security created or expressed to be created by this deed. 
	 	 	 
	Title Document 	 	any original, duplicate or counterpart certificate or document of title including any real property certificate of title, a certificate of units in a unit trust, share certificate or certificate evidencing an Investment Instrument or Negotiable Instrument.
	 	 	 
	Transaction Party	 	
        1   the
        Grantor; or

         

        2   the
        Principal Debtor.

	 	 	 
	US Security Agreement	 	the security agreement for the Senior Secured Convertible Debentures dated 27 May 2016 between the Principal Debtor, all of the Principal Debtor’s subsidiaries and DEC Funding LLC, as agent for itself, the Principal Debtor and other secured parties.

 

		1.2	Interpretation

 

In this deed:

 

		(a)	Headings and bold type are for convenience only and do not affect the interpretation of this deed.

 

		(b)	The singular includes the plural and the plural includes the singular.

 

		(c)	Words of any gender include all genders.

 

		(d)	Other parts of speech and grammatical forms of a word or phrase defined in this deed have a corresponding meaning.

 

		(e)	An expression importing a person includes any company, partnership, joint venture, association, corporation or other body corporate
and any Government Agency as well as an individual.

 

		(f)	A reference to any thing (including any right) includes a part of that thing but nothing in this clause 1.2(f) implies that
performance of part of an obligation constitutes performance of the obligation.

 

		(g)	A reference to a clause, party, schedule, attachment or exhibit is a reference to a clause of, and a party, schedule, attachment
or exhibit to, this deed.

 

    
	 	General security agreement 	page 6

  

     

    

 

1   Definitions, interpretation
and deed components

 

		(h)	A reference to any legislation includes all delegated legislation made under it and amendments, consolidations, replacements
or re-enactments of any of them.

 

		(i)	A reference to a document includes all amendments or supplements to, or replacements or novations of, that document.

 

		(j)	A reference to a party to a document includes that party’s successors and permitted assignees.

 

		(k)	A promise on the part of 2 or more persons binds them jointly and severally.

 

		(l)	A reference to an agreement other than this deed includes a deed and any legally enforceable undertaking, agreement, arrangement
or understanding, whether or not in writing.

 

		(m)	A reference to property or an asset includes any real or personal, present or future, tangible or intangible property, asset
or undertaking (including Intellectual Property Rights) and any right, benefit, interest or revenue in, under or derived from the
property or asset.

 

		(n)	A reference to liquidation or insolvency includes appointment of an administrator, compromise, arrangement, merger, amalgamation,
reconstruction, winding-up, dissolution, deregistration, assignment for the benefit of creditors, scheme, composition or arrangement
with creditors, insolvency, bankruptcy, or any similar procedure or, where applicable, changes in the constitution of any partnership
or person, or death.

 

		(o)	A reference to a document includes any agreement in writing, or any certificate, notice, deed, instrument or other document
of any kind.

 

		(p)	No provision of this deed will be construed adversely to a party because that party was responsible for the preparation of
this deed or that provision.

 

		(q)	A reference to a body, other than a party to this deed (including an institute, association or authority), whether statutory
or not:

 

		(1)	which ceases to exist; or

 

		(2)	whose powers or functions are transferred to another body,

 

is a reference to the body which replaces it or which
substantially succeeds to its powers or functions.

 

		(r)	References to time are to Melbourne time.

 

		(s)	Where this deed confers any power or authority on a person that power or authority may be exercised by that person acting personally
or through an agent or attorney.

 

		(t)	An Event of Default is ‘continuing’ or ‘subsisting’ if it has not been:

 

		(1)	remedied to the satisfaction of the Secured Party before a Power relating to that Event of Default is exercised; or

 

		(2)	waived in writing by the Secured Party.

 

		1.3	Interpretation of inclusive expressions

 

Specifying anything in this deed after the words ‘include’
or ‘for example’ or similar expressions does not limit what else is included unless there is express wording to the
contrary.

 

    
	 	General security agreement 	page 7

  

     

    

 

2   Security

 

		1.4	Incorporated definitions from Principal Agreement

 

A word or phrase (other than one defined in clause 1.1)
defined in the Principal Agreement has the same meaning in this deed.

 

		1.5	PPSA incorporated definitions

 

The following words and phrases defined in the PPSA
have the same meaning in this deed:

 

		(a)	Accession;

 

		(b)	Account;

 

		(c)	Chattel Paper;

 

		(d)	Commingled;

 

		(e)	Investment Instrument; and

 

		(f)	Negotiable Instrument.

 

		1.6	Deed components

 

This deed includes any schedule.

 

		2	Security

 

		2.1	Security interest

 

		(a)	The Grantor grants a security interest in the Secured Property to the Secured Party to secure payment of the Secured Moneys.

 

		(b)	This security interest is a transfer by way of security of Secured Property consisting of Accounts and Chattel Paper which
are not, or cease to be, Revolving Assets.

 

		(c)	To the extent any Secured Property is not transferred, this security interest is a charge. If for any reason it is necessary
to determine the nature of this charge, it is a floating charge over Revolving Assets and a fixed charge over all other Secured
Property.

 

		2.2	Priority

 

		(a)	The parties intend that the Security take priority over all other Encumbrances and other interests in the Secured Property
at any time other than any Priority Encumbrance.

 

		(b)	Nothing in this deed will be construed as an agreement by the Secured Party to subordinate the Security to any other Encumbrance
or interest affecting the Secured Property at any time.

 

		2.3	Collection of proceeds of debts

 

The Grantor may collect as agent for the Secured Party
for this purpose the proceeds of any debts or other amounts now or in the future payable to the Grantor subject to using those
proceeds as permitted under the Finance Documents.

 

    
	 	General security agreement 	page 8

  

     

    

 

2   Security

 

		2.4	Controlled Account

 

		(a)	The Secured Party may require the Grantor to open and maintain a bank account at a bank and branch approved by the Secured
Party on terms that:

 

		(1)	nominated Officers of the Secured Party must be signatories to the Controlled Account;

 

		(2)	no withdrawals can be made from the Controlled Account without the signature of one of those Officers;

 

		(3)	funds may be disposed of from the Controlled Account at the direction of the Secured Party without further consent by the Grantor;
and

 

		(4)	depositing an amount in the Controlled Account will not result in any person coming under a present liability (within the meaning
of section 341(3)(d) of the PPSA) to pay:

 

		·	the Grantor; or

 

		·	a Related Body Corporate of the Grantor.

 

		(b)	If the Secured Party is not the Designated Bank, the Grantor must cause the Designated Bank to enter into an agreement between
the Designated Bank, the Grantor and the Secured Party in form and substance satisfactory to the Secured Party in which the Designated
Bank agrees that:

 

		(1)	it will comply with and give effect to the terms set out in clause 2.4(a);

 

		(2)	it has no Encumbrance or other interest in the Controlled Account and it waives all rights of set-off and combination in respect
of the Controlled Account;

 

		(3)	if despite clause 2.4(b)(2) it has any Encumbrance or other interest in the Controlled Account, that Encumbrance or other interest
is subordinated in right and priority of payment to the Secured Party's Encumbrance or other interest and will not be exercised
without the Secured Party’s consent; and

 

		(4)	it agrees that the laws specified in clause 12.5(b) will govern the Secured Party’s PPSA Security Interest in the Controlled
Account.

 

		2.5	Proceeds

 

		(a)	If a Control Event occurs in respect of any proceeds or in respect of any Secured Property the Grantor must immediately and
until notified otherwise by the Secured Party deposit in the Controlled Account any proceeds the Grantor receives in respect of
any book debt, insurance policy in relation to the Secured Property or any other debts or other amounts now or in the future payable
to the Grantor which are Secured Property.

 

		(b)	Clause 2.5(a) does not apply to proceeds received from any workers’ compensation or public liability policy or reinstatement
policy to the extent that the proceeds are paid to a person:

 

		(1)	entitled to be compensated under the workers’ compensation or public liability policy; or

 

		(2)	under a contract for the reinstatement of the Secured Property.

 

		(c)	The Grantor must give all notices and directions and execute all necessary documents as requested by the Secured Party to ensure
clause 2.5(a) is complied with.

 

    
	 	General security agreement 	page 9

  

     

    

 

3   Discharge of the Security

 

		(d)	A Power created under this clause 2.5 is not waived by any failure or delay in exercise, or by the partial exercise, of that
Power.

 

		2.6	Authorisation

 

		(a)	The Grantor must ensure that it obtains all Authorisations (other than an Authorisation that would be required under a Disclosed
Contract) necessary to permit the grant of the Security in respect of any asset before it acquires any rights in that asset.

 

		(b)	Without limiting clauses 2.6(a) and 12.6, if the grant of the Security in respect of an asset would:

 

		(1)	invalidate, avoid or render ineffective any Security, whether in respect of that asset only or otherwise; or

 

		(2)	breach any Disclosed Contract relating to that asset,

 

then that asset is excluded from the Security, but only
for so long as that effect prevails.

 

		(c)	If the Security could be granted in respect of an asset referred to in clause 2.6(b) without clause 2.6(b) applying if
an Authorisation was obtained or other action taken, the Grantor must promptly obtain that Authorisation (other than an
Authorisation under a Disclosed Contract) or take that action).

 

		3	Discharge of the Security

 

		3.1	Discharge

 

Subject to clause 3.2, at the written request of the
Grantor, the Secured Party must discharge the Security and retransfer to the Grantor its right and interest in all Accounts and
Chattel Paper transferred under clause 2.1(b) (or clause 4.8(c)) if:

 

		(a)	the Secured Moneys have been paid in full; and

 

		(b)	the Grantor and each other Transaction Party has fully observed and performed its respective obligations under this deed and
each other Finance Document.

 

		3.2	Final discharge

 

		(a)	The Secured Party is not obliged to discharge the Security under clause 3.1 if, at the time the requirements of clause
3.1 are satisfied, the Secured Party (acting reasonably) is of the opinion that the Grantor or any other Transaction Party owes
further Secured Moneys contingently or otherwise to the Secured Party.

 

		(b)	Clause 3.2(a) overrides any other clause to the contrary in this deed.

 

    
	 	General security agreement 	page 10

  

     

    

 

4   Representations and
warranties, undertakings

 

		4	Representations and warranties, undertakings

 

		4.1	Representations and warranties

 

The Grantor represents and warrants that:

 

		(a)	representations true: each of its representations and warranties contained in the Finance Documents is correct and not
misleading when made or repeated;

 

		(b)	legal and beneficial owner: it is the legal and beneficial owner of or otherwise has sufficient right, interest or power
to grant a security interest in the Secured Property;

 

		(c)	no other interests:

 

		(1)	no person other than the Secured Party holds or has the benefit of an Encumbrance or other interest in the Secured Property
other than under a Disclosed Contract;

 

		(2)	there is no agreement, filing or registration that would enable another person to obtain a priority over the Security which
is inconsistent with the priority contemplated by this deed;

 

		(d)	Security:

 

		(1)	this deed creates the Encumbrance purported to be created by it over the assets purported to be encumbered by it; and

 

		(2)	all information supplied by the Grantor in connection with a registration is accurate and up to date and that the Grantor has
taken all steps required by the Secured Party under clause 4.13; and

 

		(3)	the Security has the priority contemplated by this deed;

 

		(e)	serial numbers: Schedule 2 shows accurate serial numbers for each item of Secured Property (if any) other than property
the Grantor acquired for disposal in the ordinary course of the Grantor’s ordinary business, if any which the PPSA Regulations
require to be described by serial number in a registration under the PPSA;

 

		(f)	location of assets: Schedule 3 shows all Secured Property with a value greater than $25,000 located outside Australia
(if any);

 

		(g)	Authorisations: it has obtained all Authorisations (other than an Authorisation that would be required under a Disclosed
Contract) necessary to permit the grant of the Security in respect of any asset in which it presently has rights; and

 

perfection by control:

 

    
	 	General security agreement 	page 11

  

     

    

 

4   Representations and
warranties, undertakings

 

		(h)	Schedule 5 shows all Secured Property in relation to which the Security may be perfected by control other than Marketable Securities
issued by a Transaction Party.

 

		4.2	Survival of representations and warranties

 

The representations and warranties given under this
deed survive the execution of this deed.

 

		4.3	Reliance

 

		(a)	The Grantor acknowledges that it has not entered into this deed or any Finance Document in reliance on any representation,
warranty, promise or statement made by the Secured Party or any person on behalf of the Secured Party.

 

		(b)	The Grantor acknowledges that the Secured Party has entered into each Finance Document in reliance on the representations and
warranties given by the Grantor under this deed.

 

		4.4	Performance under the Finance Documents

 

		(a)	The Grantor must fully and punctually perform its obligations under each Finance Document.

 

		(b)	Without limiting the generality of clause 4.4(a), the Grantor must pay the Secured Moneys to the Secured Party in accordance
with this deed, each other Finance Document and each other obligation under which the Secured Moneys are payable.

 

		(c)	The Grantor must ensure that no Event of Default occurs. Without affecting the liability of the Grantor or the Powers in any
other respect (including where a breach of this clause 4.4(c) is also a breach of another provision of a Finance Document), the
Grantor is not liable in damages for breach of this clause 4.4(c) but the Secured Party may exercise its Powers consequent upon
or following that breach.

 

		4.5	Notices to the Secured Party

 

In addition to its obligations in any other Finance
Document, the Grantor must notify the Secured Party as soon as the Grantor becomes aware of any of the following:

 

		(a)	the acquisition by it of, or the entry by it into, an agreement to acquire:

 

		(1)	any interest in real property;

 

		(2)	any Marketable Securities or other property in relation to which the Security may be perfected by control;

 

		(3)	any motor vehicles or other property with a value greater than $25,000 which the PPS Regulations provide may or must be described
by serial number in a registration under the PPSA;

 

		(4)	any property with a value greater than $25,000 which is situated outside Australia;

 

		(b)	any change of the jurisdiction in which any of the Secured Property with a value greater than $25,000 is situated; and

 

		(c)	any data contained in a registration under the PPSA with respect to the Security being or becoming incorrect.

 

    
	 	General security agreement 	page 12

  

     

    

 

4   Representations and
warranties, undertakings

 

		4.6	Negative pledge and disposal of assets

 

		(a)	The Grantor must not do, or agree to do, any of the following unless it is permitted to do so by clause 4.7 or another provision
in a Finance Document:

 

		(1)	create or allow another interest in any Secured Property which is not a Permitted Encumbrance; or

 

		(2)	dispose, or part with possession, of any Secured Property; or

 

		(3)	enter into any agreement which causes further debt to accrue which is not a Permitted Indebtedness.

 

		(b)	The Grantor must not permit any of the Secured Property to become:

 

		(1)	Commingled with any asset that is not Secured Property except in the ordinary course of the Grantor’s ordinary business;
or

 

		(2)	an Accession to or to be affixed to any asset that is not Secured Property.

 

		4.7	Permitted dealings

 

The Grantor may do any of the following in the ordinary
course of the Grantor’s ordinary business unless it is prohibited from doing so by another provision in a Finance Document:

 

		(a)	create or allow another interest in, or dispose or part with possession of, any Secured Property which is a Revolving Asset;
or

 

		(b)	withdraw or transfer money from an account with a bank or other financial institution.

 

		4.8	Revolving Assets

 

If a Control Event occurs in respect of any Secured
Property then automatically:

 

		(a)	that Secured Property is not (and immediately ceases to be) a Revolving Asset;

 

		(b)	any floating charge over that Secured Property immediately operates as a fixed charge;

 

		(c)	if the Secured Property is Accounts or Chattel Paper it is transferred to the Secured Party by way of security; and

 

		(d)	the Grantor may no longer deal with the Secured Property under clause 4.7.

 

		4.9	Conversion to Revolving Assets

 

If any Secured Property is not or ceases to be a Revolving
Asset, and becomes subject to a fixed charge or transfer under clause 4.8, the Secured Party may give the Grantor a notice stating
that, from a date specified in the notice, the Secured Property specified in the notice is a Revolving Asset, or becomes subject
to a floating charge or is transferred back to the Grantor. This may occur any number of times.

 

		4.10	Inventory

 

Any inventory which is not, or ceases to be, a Revolving
Asset is specifically appropriated to a security interest under this document. The Grantor may not remove it without obtaining
the specific and express authority of the Secured Party to do so.

 

    
	 	General security agreement 	page 13

  

     

    

 

4   Representations and
warranties, undertakings

 

		4.11	Further assurances

 

The Grantor must:

 

		(a)	do anything which the Secured Party reasonably requests to:

 

		(1)	ensure, or enable the Secured Party to ensure, that this deed, the Security and the Powers are fully effective, enforceable
and perfected with the contemplated priority;

 

		(2)	more satisfactorily assure or secure to the Secured Party the Secured Property in a manner consistent with the Finance Documents;
or

 

		(3)	aid the exercise of any Power,

 

including executing any document, delivering Title Documents
or Chattel Paper, executing and delivering blank transfers or giving notice of the Security to any third party;

 

		(b)	without limiting clause 4.11(a), when the Secured Party requests, execute:

 

		(1)	a legal or statutory mortgage in favour of the Secured Party over any real property; or

 

		(2)	any other form of security which the Secured Party considers appropriate for the property to be subject to that security,

 

each in form and substance required by the Secured Party
and

 

		(c)	without limiting clause 4.11(a), cause a third party to provide any Authorisation (other than an Authorisation that would be
required under a Disclosed Contract) or take any other action (including executing any document) required to give effect to clause
4.11(a).

 

		4.12	Title Documents and Chattel Paper

 

		(a)	The Grantor must deposit with the Secured Party, or as the Secured Party directs, all the Title Documents in respect of any
of the Secured Property together with executed blank transfers in respect of the Secured Property to which the Title Documents
relate and all Chattel Paper forming part of the Secured Property with a value greater than $25,000 immediately on:

 

		(1)	its execution of this deed; and

 

		(2)	acquisition of any asset which forms part of the Secured Property.

 

		(b)	At any time after an Event of Default occurs, if required by the Secured Party, the Grantor must deposit with the Secured Party
all Chattel Paper which forms part of the Secured Property regardless of value and which has not already been deposited under clause
4.12(a).

 

		(c)	Subject to clause 4.12(d), the Secured Party may retain the Title Documents and Chattel Paper deposited with the Secured Party
until the Security in respect of all the Secured Property is discharged under clause 3.

 

		(d)	If the Security is enforced by the Secured Party, the Secured Party, Receiver or Attorney is entitled:

 

		(1)	to deal with the Title Documents and the Chattel Paper as if it was the absolute and unencumbered owner of the Secured Property
to which the Title Documents relate and of the Chattel Paper; and

 

    
	 	General security agreement 	page 14

  

     

    

 

4   Representations and
warranties, undertakings

 

		(2)	in exercising a power of sale, to deliver any Title Document or Chattel Paper to a purchaser of the Secured Property to which
the Title Document relates or of the Chattel Paper.

 

		4.13	Perfection, registration and protection of Security

 

		(a)	The Grantor must take all steps reasonably required by the Secured Party to ensure that:

 

		(1)	the Security is perfected in relation to all the Secured Property in all jurisdictions; and

 

		(2)	this deed and the Security are registered and filed in all registers in all jurisdictions

 

in which it must be perfected, registered and filed,
to ensure its enforceability, validity, perfection and priority against all persons and to be effective as a security.

 

		(b)	Whenever the Secured Party requires that the Security be perfected in a particular way in relation to any part of the Secured
Property, the Grantor must ensure that the Security is perfected in that way.

 

		(c)	The Grantor will not be in breach of its obligation under this clause 4.13 and its representation and warranty under clause
4.1(d)(2) will not be incorrect or misleading if the Secured Party fails to take any action which can only be taken by the Secured
Party to enable the Security to be perfected as required under this clause 4.13, after written request from the Grantor to take
that action.

 

		(d)	Whenever any part of the Secured Property is transferred to or retained in a place where this deed or the Security, because
of an increase in the Secured Moneys or otherwise, bears insufficient stamp duty or is not registered or recorded, or for any other
reason is of limited or of no force or effect, unenforceable, inadmissible in evidence or of reduced priority, the Grantor must
within 14 days after that transfer or retention ensure that:

 

		(1)	this deed is stamped to the satisfaction of the Secured Party;

 

		(2)	this deed is in full force and effect, enforceable, perfected, admissible in evidence and not of reduced priority; and

 

		(3)	this deed and the Security are registered in that place, or that part of the Secured Property is removed from that place.

 

		4.14	No caveats

 

The Grantor must ensure that any caveat lodged in respect
of the Secured Property, other than a caveat lodged by the Secured Party, is removed as soon as reasonably practicable but in any
event within 5 days after the date that it becomes aware of its existence.

 

		4.15	Term of undertakings

 

Each of the Grantor’s undertakings in this clause
4 continue in full force and effect from the date of this deed until the Security in respect of all the Secured Property is discharged
under clause 3.

 

    
	 	General security agreement 	page 15

  

     

    

 

5   Enforcement

 

		5	Enforcement

 

		5.1	When enforceable

 

		(a)	If an Event of Default occurs:

 

		(1)	the Security and each Collateral Security are immediately enforceable without the need for any demand or notice to be given
to the Grantor or any other person; and

 

		(2)	the Secured Moneys are immediately due and payable by the Grantor without the need for any demand or notice to be given to
the Grantor or any other person other than a notice expressly required by a Finance Document.

 

		(b)	The Secured Party agrees that it will not exercise any Power to enforce the Security under Chapter 4 of the PPSA until an Event
of Default occurs.

 

		5.2	No dealing with assets

 

Any right of the Grantor to deal, for any purpose, with
any asset which forms part of the Secured Property (including under clause 2.3), other than by or through a Receiver appointed
under this deed, immediately ceases if:

 

		(a)	the Secured Party declares that the Secured Moneys are immediately due and payable; or

 

		(b)	the Secured Party takes any step to enforce the Security; or

 

		(c)	subject to clause 4.9 a Control Event occurs in relation to the asset.

 

		5.3	Assistance in realisation

 

After the Security has become enforceable, the Grantor
must take all action required by the Secured Party, Receiver or Attorney to assist any of them to realise the Secured Property
and exercise any Power including:

 

		(a)	executing all transfers, conveyances, assignments and assurances of any of the Secured Property;

 

		(b)	doing anything necessary or desirable under the law in force in any place where the Secured Property is situated;

 

		(c)	giving all notices, orders, directions and consents which the Secured Party, Receiver or Attorney thinks expedient; and

 

		(d)	doing anything necessary:

 

		(1)	for a call to be made on the uncalled capital of the Grantor; or

 

		(2)	to collect all called but unpaid capital of the Grantor.

 

		5.4	Postponing or delaying realisation or enforcement

 

The Secured Party, a Receiver or Attorney may postpone
or delay the exercise of any Power for such period as the Secured Party, Receiver or Attorney may in its absolute discretion decide.

 

    
	 	General security agreement 	page 16

  

     

    

 

6   Receiver

 

		6	Receiver

 

		6.1	Appointment of Receiver

 

If an Event of Default occurs, the Secured Party may
at any time after its occurrence:

 

		(a)	appoint any person or any 2 or more persons jointly, or severally, or jointly and severally to be a receiver or a receiver
and manager of the Secured Property;

 

		(b)	remove any Receiver and on the removal, retirement or death of any Receiver, appoint another Receiver; and

 

		(c)	fix the remuneration and direct payment of that remuneration and any costs, charges and expenses of the Receiver out of the
proceeds of any realisation of the Secured Property.

 

		6.2	Agency of Receiver

 

		(a)	Subject to clause 6.5, each Receiver is the agent of the Grantor.

 

		(b)	The Grantor is responsible for the acts, defaults and remuneration of the Receiver.

 

		6.3	Powers of Receiver

 

Subject to any express exclusion by the terms of the
Receiver’s appointment, the Receiver has, in addition to any powers conferred on the Receiver by applicable law, and whether
or not in possession of the Secured Property, or any part of it, the following powers:

 

		(a)	manage, possession or control: to manage, enter into possession or assume control of any of the Secured Property;

 

		(b)	lease or licence: to accept the surrender of, determine, grant or renew any lease or licence in respect of the use or
occupation of any of the Secured Property:

 

		(1)	on any terms or special conditions that the Secured Party or Receiver thinks fit; and

 

		(2)	in conjunction with the sale, lease or licence of any other property by any person;

 

		(c)	sale: to sell or concur in selling any of the Secured Property to any person:

 

		(1)	by auction, private treaty or tender;

 

		(2)	on such terms and special conditions as the Secured Party or the Receiver thinks fit;

 

		(3)	for cash or for a deferred payment of the purchase price, in whole or in part, with or without interest or security;

 

		(4)	in conjunction with the sale of any property by any other person; and

 

		(5)	in one lot or in separate parcels;

 

		(d)	grant options to purchase: to grant to any person an option to purchase any of the Secured Property;

 

		(e)	acquire property: to acquire any interest in any property, in the name or on behalf of the Grantor, which on acquisition
forms part of the Secured Property;

 

    
	 	General security agreement 	page 17

  

     

    

 

6   Receiver

 

		(f)	carry on business: to carry on or concur in carrying on any business of the Grantor in respect of the Secured Property;

 

		(g)	borrowings and security:

 

		(1)	to raise or borrow any money, in its name or the name or on behalf of the Grantor, from the Secured Party or any person approved
by the Secured Party in writing; and

 

		(2)	to secure money raised or borrowed under clause 6.3(g)(1) by an Encumbrance over any of the Secured Property, ranking in priority
to, equal with, or after, the Security or any Collateral Security;

 

		(h)	maintain or improve Secured Property: to do anything to maintain, protect or improve any of the Secured Property including
completing, repairing, erecting a new improvement on, demolishing or altering any of the Secured Property;

 

		(i)	income and bank accounts: to do anything to manage or obtain income or revenue from any of the Secured Property including
operating any bank account which forms part of the Secured Property or opening and operating a new bank account;

 

		(j)	access to Secured Property: to have access to any of the Secured Property, the premises at which the business of the
Grantor is conducted and any of the administrative services of the business of the Grantor;

 

		(k)	insure Secured Property: to insure any of the Secured Property;

 

		(l)	sever fixtures: to sever fixtures in respect of any of the Secured Property;

 

		(m)	compromise: to make or accept any compromise or arrangement;

 

		(n)	surrender Secured Property: to surrender or transfer any of the Secured Property to any person;

 

		(o)	exchange Secured Property: to exchange with any person any of the Secured Property for any other property whether of
equal value or not;

 

		(p)	employ or discharge: to employ or discharge any person as an employee, contractor, agent, professional advisor or auctioneer
for any of the purposes of this deed;

 

		(q)	delegate: to delegate to any person any Power of the Receiver;

 

		(r)	perform or enforce documents: to observe, perform, enforce, exercise or refrain from exercising any right, power, authority,
discretion or remedy of the Grantor under, or otherwise obtain the benefit of:

 

		(1)	any document, agreement or right which attaches to or forms part of the Secured Property; and

 

		(2)	any document or agreement entered into in exercise of any Power by the Receiver;

 

		(s)	receipts: to give effectual receipts for all moneys and other assets which may come into the hands of the Receiver;

 

		(t)	take proceedings: to commence, discontinue, prosecute, defend, settle or compromise in its name or the name or on behalf
of the Grantor, any proceedings including proceedings in relation to any insurance in respect of any of the Secured Property;

 

		(u)	insolvency proceedings: to make any debtor bankrupt, wind-up any company, corporation or other entity and do all things
in relation to any bankruptcy or winding-up which the Receiver thinks necessary or desirable including attending and voting at
creditors’ meetings and appointing proxies for those meetings;

 

    
	 	General security agreement 	page 18

  

     

    

 

6   Receiver

 

		(v)	execute documents: to enter into and execute any document or agreement in the name of the Receiver or the name or on
behalf of the Grantor including bills of exchange, cheques or promissory notes for any of the purposes of this deed;

 

		(w)	make calls: to make calls on any member of the Grantor in respect of uncalled capital of the Grantor;

 

		(x)	vote: to exercise any voting rights or powers in respect of any part of the Secured Property;

 

		(y)	collect called capital: to collect or enforce payment of any called but unpaid capital of the Grantor whether or not
the calls were made by the Receiver;

 

		(z)	ability of Grantor: to do anything the Grantor could do in relation to the Secured Property; and

 

		(aa)	incidental power: to do anything necessary or incidental to the exercise of any Power of the Receiver.

 

		6.4	Nature of Receiver’s Powers

 

The Powers of the Receiver must be construed independently
and no one Power limits the generality of any other Power. Any dealing under any Power of the Receiver will be on the terms and
conditions the Receiver thinks fit.

 

		6.5	Status of Receiver after commencement of winding-up

 

		(a)	The power to appoint a Receiver under clause 6.1 may be exercised even if, at the time an Event of Default occurs or if at
the time a Receiver is appointed, an order has been made or a resolution has been passed for the winding-up of the Grantor.

 

		(b)	If for any reason, including operation of law, a Receiver:

 

		(1)	appointed in the circumstances described in clause 6.5(a); or

 

		(2)	appointed at any other time,

 

ceases to be the agent of the Grantor as a result of
an order being made or a resolution being passed for the winding-up of the Grantor, then the Receiver immediately becomes the agent
of the Secured Party.

 

		6.6	Powers exercisable by the Secured Party

 

		(a)	Whether or not a Receiver is appointed under clause 6.1, the Secured Party may, on or after the occurrence of an Event of Default
and without giving notice to any person, exercise any Power that could be conferred on a Receiver in addition to any Power of the
Secured Party.

 

		(b)	The exercise of any Power by the Secured Party, Receiver or Attorney does not cause or deem the Secured Party, Receiver or
Attorney:

 

		(1)	to be a mortgagee in possession;

 

		(2)	to account as mortgagee in possession; or

 

		(3)	to be answerable for any act or omission for which a mortgagee in possession is liable.

 

    
	 	General security agreement 	page 19

  

     

    

 

7   Application and receipts
of money

 

		6.7	Set-off

 

If any Event of Default is subsisting, the Secured Party
may apply any credit balance in any currency in any of the Grantor’s accounts with the Secured Party in and towards satisfaction
of any of the Secured Moneys.

 

		6.8	Notice of exercise of rights

 

The Secured Party, Receiver or Attorney is not required:

 

		(a)	to give notice of the Security or any Collateral Security to any debtor or creditor of the Grantor or to any other person;

 

		(b)	to enforce payment of any money payable to the Grantor including any of the debts or monetary liabilities secured by this deed
or by any Collateral Security; or

 

		(c)	to obtain the consent of the Grantor to any exercise of a Power.

 

		6.9	Termination of receivership and possession

 

The Secured Party may, at any time, terminate the appointment
of a Receiver and may, at any time, give up, or re-take, possession of the Secured Property.

 

		7	Application and receipts of money

 

		7.1	Order of application

 

		(a)	At any time after the Security is enforceable, all money received by the Secured Party, Receiver, Attorney or any other person
acting on their behalf under this deed or any Collateral Security may be appropriated and applied towards any amount and in any
order that the Secured Party, Receiver, Attorney or that other person determines in its absolute discretion, to the extent not
prohibited by law.

 

		(b)	Failing a determination under clause 7.1(a), the money must be applied in the following manner and order:

 

		(1)	first, in payment of all costs, charges and expenses (including any GST) of the Secured Party, Receiver or Attorney incurred
in or incidental to the exercise or performance or attempted exercise or performance of any Power;

 

		(2)	second, in payment of any other outgoings the Secured Party, Receiver or Attorney thinks fit to pay;

 

		(3)	third, in payment to the Receiver of his remuneration;

 

		(4)	fourth, in payment and discharge, in order of their priority, of any Encumbrances of which the Secured Party, Receiver or Attorney
is aware and which have priority to the Security;

 

		(5)	fifth, in payment to the Secured Party towards satisfaction of the Secured Moneys and applied against interest, principal or
any other amount the Secured Party, Receiver or Attorney thinks fit;

 

		(6)	sixth, in payment only to the extent required by law, in order of their priority, of other Encumbrances in respect of the Secured
Property of which the Secured Party, Receiver or Attorney is aware and which are due and payable in accordance with their terms;
and

 

    
	 	General security agreement 	page 20

  

     

    

 

7   Application and receipts
of money

 

		(7)	seventh, in payment of the surplus, if any, without interest to the Grantor. The Secured Party, Receiver or Attorney may pay
the surplus to the credit of an account in the name of the Grantor in the books of any bank carrying on business within Australia
and having done so is under no further liability in respect of that surplus.

 

		(c)	Any amount required by law to be paid in priority to any amount specified in clause 7.1(b) must be paid before any money is
applied in payment of the amount specified in clause 7.1(b).

 

		7.2	Money actually received

 

In applying any money towards satisfaction of the Secured
Moneys, the Grantor is to be credited only with so much of the money which is available for that purpose (after deducting any GST
imposed) and which is actually received by the Secured Party, Receiver or Attorney. The credit dates from the time of receipt.

 

		7.3	Amounts contingently due

 

		(a)	If at the time of a distribution of any money under clause 7.1 any part of the Secured Moneys is contingently owing to the
Secured Party, the Secured Party, Receiver or Attorney may retain an amount equal to the amount contingently owing or any part
of it.

 

		(b)	If the Secured Party, Receiver or Attorney retains any amount under clause 7.3(a) it must place that amount on short-term interest
bearing deposit until the amount contingently owing becomes actually due and payable or otherwise ceases to be contingently owing
at which time the Secured Party, Receiver or Attorney must:

 

		(1)	pay to the Secured Party the amount which has become actually due to it; and

 

		(2)	apply the balance of the amount retained, together with any interest on the amount contingently owing, in accordance with clause
7.1.

 

		7.4	Notice of an Encumbrance

 

		(a)	If the Secured Party receives actual or constructive notice of an Encumbrance over the Secured Property or of the perfection
of an Encumbrance, the Secured Party:

 

		(1)	may open a new account in the name of the Grantor in its books; or

 

		(2)	is regarded as having opened a new account in the name of the Grantor in its books,

 

on the date it received or was regarded as having received
notice of the Encumbrance or perfection.

 

		(b)	From the date on which that new account is opened or regarded as opened:

 

		(1)	all payments made by the Grantor to the Secured Party; and

 

		(2)	all financial accommodation and advances by the Secured Party to the Grantor,

 

    
	 	General security agreement 	page 21

  

     

    

 

8   Power of attorney

 

are or are regarded as credited and debited, as the case
may be, to the new account unless otherwise specified by the Secured Party.

 

		(c)	The payments by the Grantor under clause 7.4(b) must be applied in the manner determined by the Secured Party or, failing a
determination:

 

		(1)	first, in reduction of the debit balance, if any, in the new account; and

 

		(2)	second, if there is no debit balance in the new account, in reduction of the Secured Moneys which have not been debited or
regarded as debited to the new account.

 

		7.5	Secured Party’s statement of indebtedness

 

A certificate signed by any Officer of the Secured Party
stating:

 

		(a)	the amount of the Secured Moneys due and payable; or

 

		(b)	the amount of the Secured Moneys, whether currently due and payable or not,

 

is sufficient evidence of that amount as at the date
stated on the certificate, or failing that as at the date of the certificate, unless the contrary is proved.

 

		7.6	Secured Party’s receipts

 

		(a)	The receipt of any Officer of the Secured Party for any money payable to or received by the Secured Party under this deed exonerates
the payer from all liability to enquire whether any of the Secured Moneys have become payable.

 

		(b)	Every receipt of an Officer of the Secured Party effectually discharges the payer from:

 

		(1)	any future liability to pay the amount specified in the receipt; and

 

		(2)	being concerned to see to the application of, or being answerable or accountable for any loss or misapplication of, the amount
specified in the receipt.

 

		7.7	Conversion of currencies on application

 

In making an application under clause 7.1, the Secured
Party, Receiver or Attorney may itself, or through its bankers, purchase one currency with another, whether or not through an intermediate
currency, whether spot or forward, in the manner and amounts and at the time it thinks fit.

 

		7.8	Amounts payable on demand

 

If an amount payable under a Finance Document is not
expressed to be payable on a specified date, that amount is payable by the Grantor on demand by the Secured Party.

 

		8	Power of attorney

 

		8.1	Appointment of Attorney

 

For consideration received, the Grantor irrevocably
appoints the Secured Party and each Receiver severally its attorney for the purposes set out in clause 8.2.

 

    
	 	General security agreement 	page 22

  

     

    

 

9   Protection

 

		8.2	Purposes of appointment

 

The Attorney may, in its name or in the name of the
Grantor, Secured Party or Receiver, do any of the following:

 

		(a)	do any thing which ought to be done by the Grantor under this deed or any other Finance Document;

 

		(b)	exercise any right, power, authority, discretion or remedy of the Grantor under:

 

		(1)	this deed;

 

		(2)	any other Finance Document; or

 

		(3)	any agreement forming part of the Secured Property;

 

		(c)	do any thing which in the opinion of the Secured Party, Receiver or Attorney is necessary or desirable for securing or perfecting
the Security and any Collateral Security;

 

		(d)	execute in favour of the Secured Party any legal mortgage, transfer, assignment and any other assurance of any of the Secured
Property;

 

		(e)	execute deeds of assignment, composition or release;

 

		(f)	sell or otherwise part with the possession of any of the Secured Property; and

 

		(g)	generally, do any other thing, whether or not of the same kind as those set out in clause 8.2(a) to (f), which in the opinion
of the Secured Party, Receiver or Attorney is necessary or desirable:

 

		(1)	to more satisfactorily secure to the Secured Party the payment of the Secured Moneys; or

 

		(2)	in relation to any of the Secured Property.

 

		8.3	Exercise after Event of Default

 

An Attorney must not exercise any Power under clause
8.2 until an Event of Default occurs but a breach of this clause 8.3 does not affect the validity of the Attorney’s act.

 

		8.4	Delegation and substitution

 

The Attorney may appoint a substitute attorney to perform
any of its Powers.

 

		9	Protection

 

		9.1	Protection of third parties

 

		(a)	No person dealing with the Secured Party, Receiver or Attorney is bound to enquire whether:

 

		(1)	the Security has become enforceable;

 

		(2)	the Receiver or Attorney is duly appointed; or

 

		(3)	any Power has been properly or regularly exercised.

 

		(b)	No person dealing with the Secured Party, Receiver or Attorney is affected by express notice that the exercise of any Power
was unnecessary or improper.

 

    
	 	General security agreement 	page 23

  

     

    

 

10   Savings provisions

 

		(c)	The irregular or improper exercise of any Power is, as regards the protection of any person, regarded as authorised by the
Grantor and this deed, and is valid.

 

		9.2	Protection of the Secured Party, Receiver and Attorney

 

		(a)	The Secured Party, Receiver or Attorney is not liable for any loss or damage including consequential loss or damage, arising
directly or indirectly from:

 

		(1)	any omission or delay in the exercise or non-exercise of any Power; or

 

		(2)	the neglect, default or dishonesty of any manager, Officer, employee, agent, accountant, auctioneer or solicitor of the Grantor,
the Secured Party, Receiver or Attorney.

 

		(b)	Clause 9.2(a) does not apply:

 

		(1)	in respect of the Secured Party, to any loss or damage which arises from the wilful default, fraud or gross negligence of the
Secured Party; and

 

		(2)	in respect of a Receiver or Attorney, to any loss or damage which arises from the wilful default, fraud or gross negligence
of the Receiver or Attorney.

 

		10	Savings provisions

 

		10.1	Statutory powers

 

		(a)	Subject to clause 10.1(b), the powers of the Secured Party under this deed or any Collateral Security are in addition to any
powers the Secured Party has under applicable law.

 

		(b)	If the Secured Party exercises a Power in connection with this deed, that exercise is taken not to be an exercise of a Power
under the PPSA unless the Secured Party states otherwise at the time of exercise. However, this clause 10.1(b) does not apply to
a right, power or remedy which can only be exercised under the PPSA.

 

		10.2	No notice required unless mandatory

 

To the extent the law permits, the Grantor waives:

 

		(a)	its rights to receive any notice that is required by:

 

		(1)	any provision of the PPSA (including a notice of a verification statement); or

 

		(2)	any other law, before a secured party or Receiver exercises a right, power or remedy; and

 

		(b)	any time period that must otherwise lapse under any law before a secured party or receiver exercises a right, power or remedy.

 

If the law which requires a period of notice or a lapse
of time cannot be excluded, but the law provides that the period of notice or lapse of time may be agreed, that period or lapse
is one day or the minimum period the law allows to be agreed (whichever is the longer).

 

However, nothing in this clause prohibits the Secured
Party or any Receiver from giving a notice under the PPSA or any other law.

 

    
	 	General security agreement 	page 24

  

     

    

 

10   Savings provisions

 

		10.3	Appointment of nominee for PPSA registration

 

For the purposes of section 153 of the PPSA, the Secured
Party appoints the Grantor as its nominee, and authorises the Grantor to act on its behalf, in connection with a registration under
the PPSA of any security interest in favour of the Grantor which is:

 

		(a)	evidenced or created by Chattel Paper;

 

		(b)	perfected by registration under the PPSA; and

 

		(c)	transferred to the Secured Party under this document.

 

This authority ceases when the registration is transferred
to the Secured Party.

 

		10.4	Continuing security

 

The Security is a continuing security despite:

 

		(a)	any settlement of account; or

 

		(b)	the occurrence of any other thing,

 

and remains in full force and effect until the Secured
Party has given a discharge of the Security in respect of all the Secured Property under clause 3.

 

		10.5	No merger of security

 

		(a)	Nothing in this deed merges, extinguishes, postpones, lessens or otherwise prejudicially affects:

 

		(1)	any Encumbrance or indemnity in favour of the Secured Party; or

 

		(2)	any Power.

 

		(b)	No other Encumbrance or Finance Document which the Secured Party has the benefit of in any way prejudicially affects any Power.

 

		10.6	Exclusion of moratorium

 

Without limiting clause 10.7, to the extent not excluded
by law, a provision of any legislation (other than a provision of the PPSA mentioned in section 115(1) of the PPSA) which directly
or indirectly:

 

		(a)	lessens, varies or affects in favour of the Grantor any obligations under this deed or any Finance Document;

 

		(b)	stays, postpones or otherwise prevents or prejudicially affects the exercise by the Secured Party, Receiver or Attorney of
any Power; or

 

		(c)	confers any right on the Grantor or imposes any obligation on the Secured Party or a Receiver or Attorney in connection with
the exercise of any Power,

 

is negatived and excluded from this deed and any Finance
Document and all relief and protection conferred on the Grantor by or under that legislation is also negatived and excluded.

 

    
	 	General security agreement 	page 25

  

     

    

 

10   Savings provisions

 

		10.7	Exclusion of PPSA provisions

 

To the extent the law permits:

 

		(a)	for the purposes of sections 115(1) and 115(7) of the PPSA:

 

		(1)	the Secured Party need not comply with sections 95, 118, 121(4), 125, 132(3)(d) or 132(4); and

 

		(2)	section 143 is excluded;

 

		(b)	for the purposes of section 115(7) of the PPSA, the Secured Party need not comply with sections 132 and 137(3);

 

		(c)	if the PPSA is amended after the date of this document to permit the Grantor and the Secured Party to agree to not comply with
or to exclude other provisions of the PPSA, the Secured Party may notify the Grantor that any of these provisions are excluded
or that the Secured Party need not comply with any of those provisions as notified to the Grantor by the Secured Party; and

 

		(d)	the Grantor agrees not to exercise its rights to make any request of the Secured Party under section 275 of the PPSA, to authorise
the disclosure of any information under that section or to waive any duty of confidence that would otherwise permit non-disclosure
under that section.

 

		10.8	Conflict

 

Where any right, power, authority, discretion or remedy
conferred on the Secured Party, Receiver or Attorney by this deed or any Finance Document is inconsistent with the powers conferred
by applicable law then, to the extent not prohibited by that law, those powers conferred by applicable law are regarded as negatived
or varied to the extent of the inconsistency.

 

		10.9	Consent of Secured Party

 

		(a)	Whenever the doing of any thing by the Grantor is dependent on the consent of the Secured Party, the Secured Party may withhold
its consent or give it conditionally or unconditionally in its absolute discretion unless expressly stated otherwise in a Finance
Document.

 

		(b)	Any conditions imposed on the Grantor under clause 10.9(a) must be complied with by the Grantor.

 

		10.10	Completion of blank securities

 

		(a)	The Secured Party, a Receiver, Attorney or any Officer of the Secured Party may at any time complete, in favour of the Secured
Party, any appointee of the Secured Party or any purchaser, any instrument executed in blank by or on behalf of the Grantor and
deposited with the Secured Party as security under this deed or under any Collateral Security.

 

		(b)	The Secured Party, a Receiver, Attorney or any Officer of the Secured Party must not exercise any Power under clause 10.10(a)
until an Event of Default occurs but a breach of this clause 10.10(b) does not affect the validity of the act of the Secured Party,
Receiver, Attorney or Officer of the Secured Party.

 

		10.11	Principal obligations

 

The Security and each Collateral Security is:

 

		(a)	a principal obligation and is not ancillary or collateral to any other Encumbrance (other than another Collateral Security)
or other obligation; and

 

    
	 	General security agreement 	page 26

  

     

    

 

11   Third party provisions

 

		(b)	independent of, and unaffected by, any other Encumbrance or other obligation which the Secured Party may hold at any time in
respect of the Secured Moneys.

 

		10.12	No obligation to marshal

 

The Secured Party is not required to marshal or to enforce
or apply under, or appropriate, recover or exercise:

 

		(a)	any Encumbrance or Collateral Security held, at any time, by the Secured Party; or

 

		(b)	any moneys or assets which the Secured Party, at any time, holds or is entitled to receive.

 

		10.13	Non avoidance

 

If any payment by the Grantor to the Secured Party is
at any time avoided for any reason including any legal limitation, disability or incapacity of or affecting the Grantor or any
other thing, and whether or not:

 

		(a)	any transaction relating to the Secured Moneys was illegal, void or substantially avoided; or

 

		(b)	any thing was or ought to have been within the knowledge of the Secured Party,

 

the Grantor:

 

		(c)	as an additional, separate and independent obligation, indemnifies the Secured Party against that avoided payment; and

 

		(d)	acknowledges that any liability of the Grantor under the Finance Documents and any Power is the same as if that payment had
not been made.

 

		10.14	Increase in financial accommodation

 

The Secured Party may at any time increase the financial
accommodation provided under any Finance Document or otherwise provide further financial accommodation.

 

		11	Third party provisions

 

		11.1	Suspense account

 

		(a)	The Secured Party may apply to the credit of a suspense account any:

 

		(1)	amounts received under this deed;

 

		(2)	dividends, distributions or other amounts received in respect of the Secured Moneys in any liquidation; and

 

		(3)	other amounts received from any Transaction Party or any other person in respect of the Secured Moneys.

 

		(b)	The Secured Party may retain the amounts in the suspense account for as long as it determines and is not obliged to apply them
in or towards satisfaction of the Secured Moneys.

 

    
	 	General security agreement 	page 27

  

     

    

 

11   Third party provisions

 

		11.2	Independent obligations

 

This deed is enforceable against the Grantor:

 

		(a)	without first having recourse to any Collateral Security;

 

		(b)	whether or not the Secured Party or any other person has:

 

		(1)	made demand on any Transaction Party other than the Grantor;

 

		(2)	given notice to any Transaction Party (other than the Grantor) or any other person in respect of any thing; or

 

		(3)	taken any other steps against any Transaction Party (other than the Grantor) or any other person;

 

		(c)	whether or not any Secured Moneys is then due and payable; and

 

		(d)	despite the occurrence of any event described in clause 11.3.

 

		11.3	Unconditional nature of obligations

 

		(a)	The Security and the obligations of the Grantor under the Finance Documents are absolute, binding and unconditional in all
circumstances and are not released or discharged or otherwise affected by anything which but for this provision might have that
effect, including:

 

		(1)	the grant to any Transaction Party or any other person of any time, waiver, covenant not to sue or other indulgence;

 

		(2)	the release (including a release as part of any novation) or discharge of any Transaction Party or any other person;

 

		(3)	the cessation of the obligations, in whole or in part, of any Transaction Party or any other person under any Finance Document
or any other document or agreement;

 

		(4)	the liquidation of any Transaction Party or any other person;

 

		(5)	any arrangement, composition or compromise entered into by the Secured Party, any Transaction Party or any other person;

 

		(6)	any Finance Document or any other document or agreement being in whole or in part illegal, void, voidable, avoided, unenforceable
or otherwise of limited force or effect;

 

		(7)	any extinguishment, failure, loss, release, discharge, abandonment, impairment, compounding, composition or compromise, in
whole or in part of any Finance Document or any other document or agreement;

 

		(8)	any Collateral Security being given to the Secured Party, or any other person by any Transaction Party or any other person;

 

		(9)	any alteration, amendment, variation, supplement, renewal or replacement of any Finance Document or any other document or agreement
or any increase in the limit or maximum principal amount available under the Finance Documents;

 

		(10)	any moratorium or other suspension of any Power;

 

		(11)	the Secured Party, Receiver or Attorney exercising or enforcing, delaying or refraining from exercising or enforcing, or being
not entitled or unable to exercise or enforce any Power;

 

    
	 	General security agreement 	page 28

  

     

    

 

11   Third party provisions

 

		(12)	the Secured Party obtaining a judgment against any Transaction Party or any other person for the payment of any of the Secured
Moneys;

 

		(13)	any transaction, agreement or arrangement that may take place with the Secured Party, any Transaction Party or any other person;

 

		(14)	any payment to the Secured Party, Receiver or Attorney including any payment which at the payment date or at any time after
the payment date is, in whole or in part, illegal, void, voidable, avoided or unenforceable;

 

		(15)	any failure to give effective notice to any Transaction Party or any other person of any default under any Finance Document
or any other document or agreement;

 

		(16)	any legal limitation, disability or incapacity of any Transaction Party or of any other person;

 

		(17)	any breach of any Finance Document or any other document or agreement;

 

		(18)	the acceptance of the repudiation of, or termination of, any Finance Document or any other document or agreement;

 

		(19)	any Secured Moneys being irrecoverable for any reason;

 

		(20)	any disclaimer by any Transaction Party or any other person of any Finance Document or any other document or agreement;

 

		(21)	any assignment, novation, assumption or transfer of, or other dealing with, any Powers or any other rights or obligations under
any Finance Document or any other document or agreement;

 

		(22)	the opening of a new account of any Transaction Party with the Secured Party or any transaction on or relating to the new account;

 

		(23)	any prejudice (including material prejudice) to any person as a result of any thing done, or omitted by the Secured Party,
any Transaction Party or any other person;

 

		(24)	any prejudice (including material prejudice) to any person as a result of the Secured Party, Receiver, Attorney or any other
person selling or realising any property the subject of a Collateral Security at less than the best price;

 

		(25)	any prejudice (including material prejudice) to any person as a result of any failure or neglect by the Secured Party, Receiver,
Attorney or any other person to recover the Secured Moneys from any Transaction Party or by the realisation of any property the
subject of a Collateral Security;

 

		(26)	any prejudice (including material prejudice) to any person as a result of any other thing;

 

		(27)	the receipt by the Secured Party of any dividend, distribution or other payment in respect of any liquidation;

 

		(28)	the capacity in which a Transaction Party executed a Finance Document not being the capacity disclosed to the Secured Party
before the execution of the Finance Document;

 

		(29)	the failure of any other Transaction Party or any other person who is intended to become a co-surety or co-indemnifier of that
Transaction Party to execute any Finance Document or any other document; or

 

    
	 	General security agreement 	page 29

  

     

    

 

11   Third party provisions

 

		(30)	any other act, omission, matter or thing whether negligent or not.

 

		(b)	Clause 11.3(a) applies irrespective of:

 

		(1)	the consent or knowledge or lack of consent or knowledge, of the Secured Party, any Transaction Party or any other person of
any event described in clause 11.3(a) (and the Grantor irrevocably waives any duty on the part of the Secured Party to disclose
such information); or

 

		(2)	any rule of law or equity to the contrary.

 

		11.4	No competition

 

		(a)	Until the Secured Moneys have been fully paid and the Security has been finally discharged under clause 3, the Grantor is not
entitled to:

 

		(1)	be subrogated to the Secured Party;

 

		(2)	claim or receive the benefit of any Encumbrance, Guarantee (including any Finance Document) or other document or agreement
of which the Secured Party has the benefit;

 

		(3)	claim or receive the benefit of any moneys held by the Secured Party;

 

		(4)	claim or receive the benefit of any Power;

 

		(5)	either directly or indirectly prove in, claim or receive the benefit of any distribution, dividend or payment arising out of
or relating to the liquidation of any Transaction Party, except in accordance with clause 11.4(b);

 

		(6)	make a claim or exercise or enforce any right, power or remedy (including under an Encumbrance or Guarantee or by way of contribution)
against any Transaction Party liable to pay the Secured Moneys or against any asset of any such Transaction Party, whether such
right, power or remedy arises under or in connection with this deed, any other Finance Document or otherwise;

 

		(7)	accept, procure the grant of, or allow to exist any Encumbrance in favour of the Grantor from any Transaction Party liable
to pay the Secured Moneys;

 

		(8)	exercise or attempt to exercise any right of set-off against, nor realise any Encumbrance taken from, any Transaction Party
liable to pay the Secured Moneys; or

 

		(9)	raise any defence or counterclaim in reduction or discharge of its obligations under the Finance Documents.

 

		(b)	If required by the Secured Party, the Grantor must prove in any liquidation of a Transaction Party liable to pay the Secured
Moneys for all moneys owed to the Grantor.

 

		(c)	All moneys recovered by the Grantor from a Transaction Party liable to pay the Secured Moneys from any liquidation or under
any Encumbrance or Guarantee (whether the Encumbrance or Guarantee is a Finance Document or otherwise) must be paid to the Secured
Party to the extent of the unsatisfied liability of the Grantor under the Finance Documents.

 

		(d)	The Grantor must not do or seek, attempt or purport to do anything referred to in clause 11.4(a).

 

    
	 	General security agreement 	page 30

  

     

    

 

12   General

 

		12	General

 

		12.1	Confidential information

 

The Secured Party must not disclose to any person:

 

		(a)	this deed; or

 

		(b)	any information about any Transaction Party,

 

except where permitted under the Principal Agreement.

 

		12.2	Performance by Secured Party of the Grantor’s obligations

 

If the Grantor defaults in fully and punctually performing
any obligation contained or implied in any Finance Document, the Secured Party may, without prejudice to any Power, do all things
necessary or desirable, in the opinion of the Secured Party, to make good or attempt to make good that default to the satisfaction
of the Secured Party.

 

		12.3	Grantor to bear cost

 

Any thing which must be done by the Grantor under this
deed, whether or not at the request of the Secured Party, must be done at the cost of the Grantor.

 

		12.4	Notices

 

Any notice or other communication including any request,
demand, consent or approval, to or by a party to this deed must be given in accordance with the notice requirements of the Principal
Agreement to the addressees set out in Schedule 1.

 

		12.5	Governing law and jurisdiction

 

		(a)	This deed is governed by the laws of Victoria.

 

		(b)	Without limiting clause 12.5(a), for the purposes of section 237 of the PPSA, the law of the Commonwealth of Australia as that
law applies in the jurisdiction specified in clause 12.5(a) governs the Security to the extent it is permitted to apply to the
Secured Property under that section.

 

		(c)	The parties irrevocably submit to the non-exclusive jurisdiction of the courts of Victoria.

 

		(d)	The parties irrevocably waive any objection to the venue of any legal process on the basis that the process has been brought
in an inconvenient forum.

 

		(e)	The parties irrevocably waive any immunity in respect of its obligations under this deed that it may acquire from the jurisdiction
of any court or any legal process for any reason including the service of notice, attachment before judgment, attachment in aid
of execution or execution.

 

		12.6	Prohibition and enforceability

 

		(a)	Any provision of, or the application of any provision of, any Finance Document or any Power which is prohibited in any jurisdiction
is, in that jurisdiction, ineffective only to the extent of that prohibition.

 

		(b)	Any provision of, or the application of any provision of, any Finance Document which is void, illegal or unenforceable in any
jurisdiction does not affect the validity, legality or enforceability of that provision in any other jurisdiction or of the remaining
provisions in that or any other jurisdiction.

 

    
	 	General security agreement 	page 31

  

     

    

 

12   General

 

		12.7	Waivers

 

		(a)	Waiver of any right arising from a breach of this deed or of any Power arising upon default under this deed or upon the occurrence
of an Event of Default must be in writing and signed by the party granting the waiver.

 

		(b)	A failure or delay in exercise, or partial exercise, of:

 

		(1)	a right arising from a breach of this deed or the occurrence of an Event of Default; or

 

		(2)	a Power created or arising upon default under this deed or upon the occurrence of an Event of Default,

 

does not result in a waiver of that right or Power.

 

		(c)	A party is not entitled to rely on a delay in the exercise or non-exercise of a right or Power arising from a breach of this
deed or on a default under this deed or on the occurrence of an Event of Default as constituting a waiver of that right or Power.

 

		(d)	A party may not rely on any conduct of another party as a defence to exercise of a right or Power by that other party.

 

		(e)	This clause may not itself be waived except by writing.

 

		12.8	Variation

 

A variation of any term of this deed must be in writing
and signed by the parties.

 

		12.9	Cumulative rights

 

The Powers are cumulative and do not exclude any other
right, power, authority, discretion or remedy of the Secured Party, Receiver or Attorney.

 

		12.10	Assignment

 

		(a)	Subject to any Finance Document, the Secured Party may assign its rights under this deed and each Collateral Security without
the consent of the Grantor.

 

		(b)	The Grantor must not assign any of its rights under this deed or any Collateral Security without the prior written consent
of the Secured Party.

 

		12.11	Counterparts

 

This deed may be executed in any number of counterparts.
All counterparts taken together, constitute one instrument. A party may execute this deed by signing any counterpart.

 

		12.12	Attorneys

 

Each of the attorneys executing this deed states that
the attorney has no notice of the revocation of the power of attorney appointing that attorney.

 

    
	 	General security agreement 	page 32

  

     

    

 

Schedules

 

	Table of contents	 
	 	 
	Notice details	34
	 	 
	Serial numbered goods or intangible property	35
	 	 
	Secured Property with a value greater than $25,000 located outside Australia	37
	 	 
	Disclosed Contracts	38
	 	 
	Secured Property in relation to which the Security may be perfected by control	39

 

    
	 	General security agreement 	page 33

  

     

    

 

Schedule 1

 

	Notice details

 

	 	Discovery Energy SA Pty Ltd
	 	 
	Address	Level 8, 350 Collins Street, 

Melbourne 3000 

Australia
	 	 
	Attention	Andrew Adams and Keith Spickelmier
	 	 
	Phone	+61.3.8601.1131
	 	 
	Fax	
        +61.3.8601.1180

        (713) 622-1937

	 	 
	Email	Andrew@adamsmanagement.com.au; kspickelmier1@comcast.net; kim@discoveryenergy.com

 

	 	Texican Energy Corporation
	 	 
	Address	
        One Allen Center, Suite 1150

        500 Dallas Street

        Houston, Texas 77002

	 	 
	Attention	 
	 	 
	Phone	 
	 	 
	Fax	 
	 	 
	Email	 

 

    
	 	General security agreement 	page 34

  

     

    

 

Schedule 2

 

	Serial numbered goods or intangible property

 

Clause 4.1(e)

 

	Goods	 	Serial Number
	 	 	 
	
        Motor vehicle:

        Vehicle identification number (VIN)

        If no VIN, chassis number

        If no chassis number, manufacturer’s number
	 	None
	 	 	 
	
        Watercraft:

        official number

        if none, the hull identification number

        If an outboard motor, manufacturer’s number
	 	None
	 	 	 
	
        Aircraft: 

        For engine, airframe or helicopter:

        manufacturer’s serial number

        manufacturer’s name

        manufacturer’s generic model description
	 	None
	 	 	 
	
        Goods

        For small aircraft: nationality and registration marks assigned
        to it under the Chicago Convention
	 	
        None

         

 

	Intangible property	 	Serial Number
	 	 	 
	Trade mark: IP Australia trade mark number/trade mark application number	 	None
	 	 	 
	Patent: IP Australia patent number/patent application number	 	None

 

    
	 	General security agreement 	page 35

  

     

    

 

Schedule 2    Serial numbered goods or intangible property

 

	Intangible property	 	Serial Number
	 	 	 
	Design: IP Australia design number/design application number	 	None
	 	 	 
	Plant breeder’s right: IP Australia plant breeder’s right number/plant breeder’s right application number	 	None
	 	 	 
	Licence over a Trade Mark, Patent, Design or Plant Breeder’s right	 	None
	 	 	 
	IP Australia serial number (use serial number of corresponding trade mark, patent, design or plant breeder’s right)	 	None

 

    
	 	General security agreement 	page 36

  

     

    

 

Schedule 3

 

Secured Property with a value greater
than $25,000 located outside Australia

 

None

 

    
	 	General security agreement 	page 37

  

     

    

 

Schedule 4

 

Disclosed Contracts

 

None.

 

    
	 	General security agreement 	page 38

  

     

    

 

Schedule 5     Serial
numbered goods or intangible property

 

Schedule 5

 

Secured Property in relation to
which the Security may be perfected by control

 

None

 

    
	 	General security agreement 	page 39

  

     

    

 

Signing page

 

	 	Executed as a deed	 
	 	 	 
	 	Grantor	 
	 	 	 
	 	
        Signed sealed and delivered by

        Discovery Energy SA Pty Ltd

        by
	 

 

	sign here ►	 	 
	 	Company Secretary/Director	 
	 	 	 
	print name	 	 
	 	 	 
	sign here ►	 	 
	 	Director	 
	 	 	 
	print name	 	 

 

    
	 	General security agreement 	page 40

  

     

    

 

Schedule 5    Signing page

 

	 	Secured Party	 
	 	 	 
	 	
        Signed sealed and delivered for

        Texican Energy Corporation
	 

 

	sign here ►	 	 
	 	Authorised Signatory	 
	 	 	 
	print name	 	 
	 	 	 
	 	in the presence of	 
	 	 	 
	sign here ►	 	 
	 	Witness	 
	 	 	 
	print name	 	 
	 	 	 
	print address	 	 

 

    
	 	General security agreement 	page 41

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