DEBT
SETTLMENT AGREEMENT



This
Debt Settlement Agreement (hereinafter referred to as this “Agreement”) is made and dated as of the 23rd
day of October, 2017.



BETWEEN:



37
Capital Inc., of

Suite
400 – 570 Granville Street

Vancouver,
BC V6C 3P1



(hereinafter
referred to as “37 Capital”)



AND:



Kalpakian
Bros of BC Ltd.,of

c/o
Suite 400 – 570 Granville Street

Vancouver,
BC V6C 3P1



(hereinafter
referred to as “KBros.”)





WHEREAS
pursuant to the Management Services Agreement between 37, Jacob H. Kalpakian, Bedo H. Kalpakian and KBros. dated November 1, 2001,
as amended, 37 Capital owes the sum of $15,750 to KBros. for the period from May 1, 2016 up to July 31, 2016 (the “37 Capital
Debt”).



WHEREAS
37 Capital has offered to KBros., and KBros. has accepted and agreed that 37 Capital shall pay to KBros. through the issuance
of 175,000 units of 37 Capital at a deemed price of $0.09 per unit, as full and final settlement of the 37 Capital Debt. Each
unit shall consist of one common share one share purchase warrant. Each share purchase warrant shall be exercisable at a price
of $0.12 per share for a period of five years.



The
parties hereto agree as follows:



| | 1. | This
                                         Agreement shall be subject to acceptance of the the Canadian Securities Exchange (“CSE”)
                                         for the listing of the 175,000 units of 37 Capital on the CSE;
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. | 37
                                         Capital shall issue to KBros. through the issuance of 175,000 units of 37 Capital at
                                         a deemed price of $0.09 per unit, as full and final settlement of the 37 Capital Debt;
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3. | The
                                         175,000 units of 37 Capital that shall be issued to KBros. will be subject to four months
                                         and a day hold period in accordance with applicable Canadian securities laws;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| | 4. | This
                                         Agreement will be governed by and construed in accordance with the laws of the Province
                                         of British Columbia, Canada, and the parties hereto attorn to the exclusive jurisdiction
                                         of the courts of British Columbia, Canada to entertain all conflicts, disputes, claims
                                         and/or actions that may arise out of this Agreement;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



and,



| | 5. | This
                                         Agreement represents the full understanding between the parties hereto and there are
                                         no other representations and/or agreements, oral or written between the parties hereto,
                                         and that this Agreement may not be modified without an agreement in writing signed by
                                         all the parties hereto.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





Agreed
this 23rd day of October, 2017.





|37 CAPITAL INC.   |  | KALPAKIAN BROS. OF B.C. LTD.
|----------------- |  | ----------------------------
|                  |  |                             
|PER:              |  | PER:                        
|                  |  |                             
|/s/ Neil Spellman |  | /s/ Bedo H. Kalpakian       
|Neil Spellman     |  | Jake H. Kalpakian