Document:

Garmatex Holdings Ltd. - Exhibit 10.1 - Filed by newsfilecorp.com

LOAN AGREEMENT 

This Loan Agreement (this “Agreement”) is dated as of
the 28th day of April, 2017 

BETWEEN: 

  
    
      
        BGC Consultants Limited, 5949 Berwick Street,
          Burnaby, British Columbia V5H 1V9, Canada 

        (the “Lender”) 

      

    

  

AND: 

  
    
      
        GARMATEX HOLDINGS LTD., a corporation incorporated under
          the laws of the State of Nevada, U.S.A. having an address at 7458 Allison Place,
          Chilliwack, British Columbia V4Z 1J7, Canada (Email: devon@garmatexholdings.com)
        

        (the “Corporation”) 

      

    

  

WHEREAS: 

	A. 	
      The Lender has agreed to provide a loan in the principal
      amount of $100,000.00 USD to the Corporation in accordance with the terms
      and conditions of this Agreement; and

	 	 
	B. 	
      The Corporation wishes to borrow monies from the Lender
      on the terms and conditions set forth in this
Agreement.

NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Corporation and the
Lender (each, a “Party” and, together, the “Parties”) do hereby
covenant and agree as follows: 

Article 1 

DEFINITIONS 

	1.1 	
      Definitions

	 	 	 
		(a) 	
      “Affiliate” means, unless otherwise specified, an
      affiliate within the meaning of Section 1.3 of National Instrument 45-106
      – Prospectus Exemptions.

	 	 	 
		(b) 	
      “Agreement” means this loan agreement and all
      schedules attached hereto.

	 	 	 
		(c) 	
      “Applicable Securities Laws” means the
      Securities Act and all other applicable securities Laws.

	 	 	 
		(d) 	
      “Authorization” means, with respect to any Person,
      any order, permit, approval, consent, waiver, clearance, licence or
  similar authorization of any Governmental Entity having jurisdiction over the Person.

- 2 - 

	 	(e) 	
      “Business Day” means any day of the year, other
      than a Saturday or Sunday or any other day on which banks are required or
      authorized to close in Vancouver, British Columbia.

	 	 	 
	 	(f) 	
      “Capital Reorganization” has the meaning specified
      in Section 4.3(c).

	 	 	 
	 	(g) 	
      “Closing” means the date of advance of the
      Principal Amount as contemplated in this Agreement.

	 	 	 
	 	(h) 	
      “Common Shares” means the shares of common stock
      in the capital of the Corporation, and shall, where the context permits,
      include:

	 	(i) 	
      any securities into which such Common Shares may be
      converted, reclassified, redesignated, subdivided, consolidated or
      otherwise changed;

	 	 	 
	 	(ii) 	
      any securities of the Corporation or of any other Person
      received by the holders of such Common Shares as a result of any Corporate
      Reorganization; and

	 	 	 
	 	(iii) 	
      any securities of the Corporation which are received by
      any one or more Persons as a share dividend or distribution on or in
      respect of such Common Shares.

	 	(i) 	
      “Contract” means any agreement, contract, licence,
      undertaking, engagement or commitment of any nature, written or
    oral.

	 	 	 
	 	(j) 	
      “Corporation” means Garmatex Holdings Ltd. and,
      for the purposes of the representations, warranties and covenants of the
      Corporation contained in this Agreement, includes any Affiliates
      thereof.

	 	 	 
	 	(k) 	
      “Conversion” has the meaning specified in Section
      4.1(a).

	 	 	 
	 	(l) 	
      “Conversion Price” has the meaning specified in
      Section 4.1(b).

	 	 	 
	 	(m) 	
      “Event of Default” has the meaning specified in
      Section 5.1.

	 	 	 
	 	(n) 	
      “GAAP” means, at any time, accounting principles
      generally accepted in the United States at the relevant time applied on a
      consistent basis.

	 	 	 
	 	(o) 	
      “Governmental Entity”
means:

	 	(i) 	
      any international, multinational, national, federal,
      provincial, state, municipal, local or other governmental or public
      department, central bank, court, commission, board, bureau, agency or
      instrumentality, domestic or foreign;

	 	 	 
	 	(ii) 	
      any subdivision or authority of any of the above;
    or

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	 	(iii) 	
      any quasi-governmental or private body exercising any
      regulatory, expropriation or taxing authority under or for the account of
      any of the foregoing.

	 	(p) 	
      “Laws” means applicable:

	 	 	 	 
	 		(i) 	
      laws, constitutions, treaties, statutes, codes,
      ordinances, statutory rules, principles of common and civil law and
      equity, terms and conditions of any grant of approval, permission, orders,
      decrees, rules, regulations and municipal by-laws, whether domestic,
      foreign or international;

	 	 	 	 
	 		(ii) 	
      judicial, arbitral, administrative, ministerial,
      departmental and regulatory judgments, orders, writs, injunctions,
      decisions, rulings, authority, licence, decrees and awards of any
      Governmental Entity; and

	 	 	 	 
	 		(iii) 	
      policies, practices and guidelines of any Governmental
      Entity, which, although not actually having the force of law, are
      considered by such Governmental Entity as requiring compliance as if
      having the force of law,

	 		
      in each case binding on or affecting a Person, or the
      assets of a Person, referred to in the context in which such word is used,
      and the term “applicable” with respect to such Laws and in the context
      that refers to one or more Persons, means that such Laws apply to such
      Person or Persons or its or their business, undertaking, property or
      securities and emanate from a Governmental Entity having jurisdiction over
      the Person or Persons or its or their business, undertaking, property or
      securities, in each case as such Laws may be amended from time to
    time.

	 	 	 
	 	(q) 	
      “Loan” has the meaning specified in Section
      3.1.

	 	 	 
	 	(r) 	
      “Loan Amount” has the meaning specified in Section
      3.4.

	 	 	 
	 	(s) 	
      “Maturity Date” has the meaning specified in
      Section 3.4.

	 	 	 
	 	(t) 	
      “Notice” has the meaning specified in Section
      6.1.

	 	 	 
	 	(u) 	
      “Notice of Conversion” has the meaning specified
      in Section 4.2.

	 	 	 
	 	(v) 	
      “Person” means a natural person, partnership,
      limited partnership, limited liability partnership, limited liability
      company, unlimited liability company, corporation, joint stock company,
      trust, unincorporated association, joint venture or other entity, or
      Governmental Entity, and pronouns have a similarly extended
  meaning.

	 	 	 
	 	(w) 	
      “Principal Amount” has the meaning specified in
      Section 3.1.

	 	 	 
	 	(x) 	
      “Securities Act” means the United States
      Securities Act of 1933, as amended.

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Article 2 

  INTERPRETATION

2.1      
 Defined Terms 

Capitalized terms used in this Agreement and not otherwise
defined have the meanings given to them in Article 1 herein, unless there is
something in the subject matter or context inconsistent therewith. 

2.2        Headings,
etc. 

The division of this Agreement into Articles and Sections and
the insertion of headings are for convenient reference only and do not affect
its interpretation. 

2.3        Gender
and Number 

Any reference in this Agreement to gender includes all genders.
Words importing the singular number also include the plural and vice
versa. 

2.4        Currency

All references in this Agreement to dollars or to “$” are
expressed in United States currency, unless otherwise specifically indicated.

2.5        Certain
Phrases 

In this Agreement, the words “including”, “includes” and
“include” mean “including (or includes or include) without limitation”. The
expressions “Article” and “Section” followed by a number mean and refer to the
specified Article or Section of this Agreement. In the computation of periods of
time from a specified date to a later specified date, unless otherwise expressly
stated, the word “from” means “from and including” and the words “to” and
“until” each mean “to but excluding”. 

2.6        Statutory
References 

Except as otherwise provided in this Agreement, any reference
in this Agreement to a statute refers to such statute and all rules and
regulations made under it as they may have been, or may from time to time be,
amended, re-enacted or superseded. 

2.7       
Schedules 

The schedules attached to this Agreement form an integral part
of it for all purposes of it. 

2.8        Accounting
Terms 

All accounting terms not specifically defined in this Agreement
shall be interpreted in accordance with GAAP. 

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Article 3 

LOAN 

3.1        Principal
Amount 

Subject to the terms and conditions of this Agreement, the
Lender agrees to advance to the Corporation a loan (the “Loan”) in the
aggregate principal amount of $100,000.00 USD (the “Principal Amount”) as
of the date of this Agreement. 

3.2        Interest

The Principal Amount outstanding from time to time shall bear
interest both before and after maturity, default and judgment from and including
the date of advance of the Principal Amount to the date of repayment in full at
the rate of 5% per annum, compounded annually, on the basis of a year of 365
days, with interest payable on the Maturity Date. Interest on overdue interest
shall be calculated at the same rate and payable on demand. For the purposes of
the Interest Act (Canada) and disclosure under such act, whenever
interest to be paid under this Agreement is to be calculated on the basis of a
year of 365 days (or any other period of time that is less than a calendar
year), the yearly rate of interest to which the rate determined pursuant to such
calculation is equivalent is the rate so determined multiplied by the actual
number of days in the calendar year in which the same is to be ascertained and
divided by either 365 or such other period of time, as the case may be. 

3.3       
Prepayments 

The Principal Amount may be prepaid by the Corporation to the
Lender in whole or in part on not less than five (5) Business Days prior written
notice by the Corporation to the Lender. At the expiry of such notice period,
the Corporation shall pay to the Lender the prepayment amount, interest on such
portion of the Principal Amount as is being prepaid, accruing to the date of
prepayment, and all fees, costs, charges and expenses then due and owing,
without bonus or penalty. 

3.4        Maturity
Date 

The Principal Amount and any accrued and unpaid interest
thereon (collectively, the “Loan Amount”) shall mature on April 28,
2018 (or such later date as may be agreed to, in writing, by the Lender,
in its sole discretion) or such earlier date as the Loan Amount may become due
and payable in accordance with the terms and conditions hereof (the “Maturity
Date”). 

3.5        Exemptions

The Lender acknowledges that the Corporation has advised the
Lender that it will issue the Common Shares issuable upon Conversion (as defined
below) under exemptions from the registration and prospectus requirements of
Applicable Securities Laws and, as a consequence, certain protections, rights
and remedies provided by Applicable Securities Laws, including statutory rights
of rescission or damages, will not be available to the Lender. To evidence the
Lender’s eligibility for such exemptions the Lender shall deliver a fully
completed and executed Certificate of Non-U.S. Lender in the form attached
hereto as Schedule A (the “Certificate”) to the Corporation on or prior
to the date of this Agreement, and agrees that the representations and
warranties set out in the Certificate as executed by the Lender will be true and
complete as at the time of a Conversion (as hereinafter defined). 

- 6 - 

Article 4 

  CONVERSION
OF LOAN AMOUNT 

	4.1 	
      Conversion of Loan Amount into Common
  Shares

	 	 	 
		(a) 	
      Upon and subject to the provisions and conditions of this
      Article 4, any Loan Amount shall be convertible into Common Shares (each,
      a “Conversion”) by the Lender, at its option, at any
time.

	 	 	 
		(b) 	
      The Conversion shall occur at a conversion price of $0.20
      per Common Share (the “Conversion Price”), subject to adjustment as
      provided in Section 4.3 hereof.

4.2       
Manner of Exercise of Right to Convert to Common Shares 

The Lender may exercise its rights to convert by sending to the
Corporation at its principal address a duly completed and executed Notice of
Conversion in the form attached hereto as Schedule B (a “Notice of
Conversion”) exercising its right to convert in accordance with the
provisions of this Article 4 such notice setting forth the Principal Amount and
accrued but unpaid Interest thereon to be converted and the conversion date
(which shall be no less than ten (10) Business Days from the date of the notice
unless otherwise agreed to by the Parties). Upon receipt of a Notice of
Conversion, the Lender shall be entered in the books of the Corporation as at
the conversion date as the holder of the number of Common Shares into which the
Loan Amount is convertible and, as soon as practicable, the Corporation shall
deliver to the Lender a certificate or certificates for such Common Shares. 

	4.3 	
      Adjustment of Conversion Price

	 	 	 	 
		(a) 	
      The Conversion Price in effect at any date shall be
      subject to adjustment from time to time as provided in this Section
      4.3.

	 	 	 	 
		(b) 	
      If the Corporation at any time after the date hereof
      subdivides (by any stock split, stock dividend, recapitalization or
      otherwise) its outstanding Common Shares into a greater number of Common
      Shares, any Conversion Price in effect immediately prior to such
      subdivision will be proportionately reduced. If the Corporation at any
      time after the date hereof consolidates (by combination, reverse stock
      split or otherwise) its outstanding Common Shares into a smaller number of
      Common Shares, any Conversion Price in effect immediately prior to such
      consolidation will be proportionately increased. Any adjustment under this
      sub-paragraph 4.3(b) shall become effective at the close of business on
      the date the subdivision or consolidation becomes effective.

	 	 	 	 
		(c) 	
      If at any time after the date hereof there
  occurs:

	 	 	 	 
			(i) 	
      a reclassification or redesignation of the Common Shares,
      any change of the Common Shares into other shares or securities or any
      other capital reorganization involving the Common Shares other than
      transactions covered by sub-paragraph 4.3(b);

- 7 - 

	 	(ii) 	
      an amalgamation or merger of the Corporation with or into
      any other body corporate, or plan of arrangement involving the
      Corporation, which results in a reclassification or redesignation of the
      Common Shares or a change or exchange of the Common Shares into other
      shares or securities; or

	 	 	 
	 	(iii) 	
      the transfer of the undertaking or assets of the
      Corporation as an entirety or substantially as an entirety to another
      corporation or entity;

(any of such events being herein
called a “Capital Reorganization”), after the effective date of the
Capital Reorganization: 

	 	(iv) 	
      the Lender will be entitled to receive upon a Conversion,
      in lieu of the number of Common Shares to which the Lender was theretofore
      entitled upon the Conversion, the kind and aggregate number of shares and
      other securities or property resulting from the Capital Reorganization
      which the Lender would have been entitled to receive as a result of the
      Capital Reorganization if, on the effective date thereof, the Lender had
      been the registered holder of the number of Common Shares to which the
      Lender was theretofore entitled to receive upon the Conversion;
  and

	 	 	 
	 	(v) 	
      the Conversion Price shall, on the effective date of the
      Capital Reorganization, be adjusted by multiplying the Conversion Price in
      effect immediately prior to such Capital Reorganization by the number of
      Common Shares purchasable pursuant to the Conversion immediately prior to
      the Capital Reorganization, and dividing the product thereof by the number
      of successor securities determined in Section (iv)
above.

	 		
      If necessary, as a result of any Capital Reorganization,
      appropriate adjustments will be made in the application of the provisions
      of the Agreement with respect to the rights and interest thereafter of the
      Lender to the end that the provisions of the Agreement will thereafter
      correspondingly be made applicable as nearly as may reasonably be possible
      in relation to any shares or other securities or property thereafter
      deliverable upon a Conversion.

	 	 	 
	 	(d) 	
      If any question arises with respect to the adjustments
      provided in this Section 4.3, such question shall be conclusively
      determined by a firm of chartered accountants (who may be the
      Corporation's auditors) appointed by the Corporation at its sole
      discretion. Such chartered accountants shall be given access to all
      necessary records of the Corporation and their determination shall be
      binding upon the Corporation and the Lender.

4.4        No
Requirement to Issue Fractional Shares 

The Corporation shall not be required to issue fractional
Common Shares upon any Conversion. Where the aggregate number of Common Shares
to be issued would result in a fraction of a Common Share being issuable, the
number of Common Shares to be issued to the Lender shall be rounded down to the
next whole number, and no cash or other consideration shall be paid or payable
in lieu of such fraction of a Common Share. 

- 8 - 

4.5       
Certificate as to Adjustment 

The Corporation shall, from time to time immediately after the
occurrence of any event which requires an adjustment or re-adjustment as
provided in Section 4.3, deliver a certificate of the Corporation to the Lender
specifying the nature of the event requiring the same and the amount of the
necessary adjustment and setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based. 

Article 5 

  EVENTS
OF DEFAULT 

5.1       
Events of Default 

The occurrence of any of the following events shall constitute
an “Event of Default” under this Agreement: 

	 	(a) 	
      if the Corporation fails to pay any portion of the Loan
      Amount when such amounts become due and payable and such failure remains
      unremedied for 10 days;

	 	 	 
	 	(b) 	
      if the Corporation fails to perform, observe or comply
      with any other term or covenant contained in this Agreement, and, if the
      circumstances giving rise to such failure are capable of modification or
      rectification (such that, thereafter the covenant would be observed or
      performed), the failure remains uncorrected for a period of 30 days
      following the date on which the Lender provides notice to the Corporation
      of such failure;

	 	 	 
	 	(c) 	
      if the Corporation

	 	(i) 	
      applies for or consenting to the appointment of a
      receiver, trustee, liquidator or custodian of itself or of all or a
      substantial part of its property;

	 	 	 
	 	(ii) 	
      makes a general assignment for the benefit of its or any
      of its creditors;

	 	 	 
	 	(iii) 	
      becomes dissolved or liquidated in full or in
  part;

	 	 	 
	 	(iv) 	
      commences a voluntary case or other proceeding seeking
      liquidation or other relief with respect to itself or its debts under any
      bankruptcy, insolvency or other similar law now or hereafter in effect;
      or

	 	 	 
	 	(v) 	
      takes any action for the purpose of effecting any of the
      foregoing; or

	 	(d) 	
      if proceedings for the appointment of a receiver,
      trustee, liquidator or custodian of the Corporation or of all or a
      substantial part of the property thereof, or an involuntary case or other
      proceedings seeking liquidation, reorganization or other relief with
      respect to the Corporation or the debts thereof under any bankruptcy,
      insolvency or other similar law now or hereafter in effect being commenced
      and an order for relief entered or such proceeding is not dismissed or
      discharged within thirty (30) days of
commencement.

- 9 - 

	5.2 	
      Consequences of an Event of Default

	 	 	 
		(a) 	
      Upon the occurrence or existence of any Event of Default,
      and following the expiry of any applicable grace periods, and at any time
      thereafter during the continuance of such Event of Default, the Lender
      may, by written notice to the Corporation, declare all outstanding amounts
      payable by the Corporation hereunder to be immediately due and payable
      without presentment, demand, protest or any other notice of any kind, all
      of which are hereby expressly waived, anything contained herein to the
      contrary notwithstanding.

	 	 	 
		(b) 	
      In addition to the foregoing remedies, upon the
      occurrence or existence of any Event of Default, the Lender may exercise
      any other right, power or remedy permitted to it by law, either by suit in
      equity or by action at law, or both.

Article 6 

MISCELLANEOUS 

	6.1 	
      Notice

	 	 	 
		(a) 	
      Any notice, direction or other communication (each a
      “Notice”) given regarding the matters contemplated by this
      Agreement must be in writing and sent by personal delivery, courier or
      email to the address set out on the first page of this
Agreement.

	 	 	 
		(b) 	
      A Notice is deemed to be delivered and
  received:

	 	(i) 	
      if sent by personal delivery, on the date of delivery if
      it is a Business Day and the delivery was made prior to 4:00 p.m. (local
      time in place of receipt) and otherwise on the next Business
Day;

	 	 	 
	 	(ii) 	
      if sent by same-day service courier, on the date of
      delivery if sent on a Business Day and delivery was made prior to 4:00
      p.m. (local time in place of receipt) and otherwise on the next Business
      Day;

	 	 	 
	 	(iii) 	
      if sent by overnight courier, on the next Business Day;
      or

	 	 	 
	 	(iv) 	
      if sent by email, on the date of sending if sent by 4:00
      p.m. on a Business Day (local time in place of receipt) and otherwise on
      the next Business Day.

	 	(c) 	
      A Party may change its address for service from time to
      time by providing a Notice in accordance with the foregoing. Any
      subsequent Notice must be sent to the Party at its changed address. Any
      element of a Party’s address that is not specifically changed in a Notice
      will be assumed not to be changed.

6.2       
Time of the Essence 

Time shall be of the essence of this Agreement. 

- 10 - 

6.3       
No Agency or Partnership 

Nothing contained in this Agreement makes or constitutes any
Party, or any of its directors, officers or employees, the representative,
agent, principal, partner, joint venture, employer or employee of the other
Party. It is understood that no Party has the capacity to make commitments of
any kind or incur obligations or liabilities binding upon the other Party. 

6.4        Expenses

Except as otherwise expressly provided in this Agreement, each
Party will pay for its own costs and expenses incurred in connection with this
Agreement and the transactions contemplated by it. The fees and expenses
referred to in this Section 6.4 are those which are incurred in connection with
the negotiation, preparation, execution and performance of this Agreement, and
the transactions contemplated by this Agreement, including the fees and expenses
of legal counsel, investment advisers and accountants. 

6.5       
Amendments 

This Agreement may only be amended, supplemented or otherwise
modified by written agreement signed by each of the Parties. 

	6.6 	
      Waiver

	 	 	 
		(a) 	
      No waiver of any provision of this Agreement will
      constitute a waiver of any other provision (whether or not similar). No
      waiver will be binding unless executed in writing by the Party to be bound
      by the waiver. A Party’s failure or delay in exercising any right under
      this Agreement will not operate as a waiver of that right. A single or
      partial exercise of any right will not preclude a Party from any other or
      further exercise of that right or the exercise of any other
  right.

	 	 	 
		(b) 	
      If a Party waives compliance with any of the conditions,
      obligations or covenants contained in this Agreement, the waiver will be
      without prejudice to any of its rights of termination in the event of
      non-fulfilment, non-observance or non- performance of any other condition,
      obligation or covenant of this Agreement, in whole or in
  part.

6.7        Entire
Agreement 

This Agreement constitutes the entire agreement between the
Parties with respect to the subject matter hereof and thereof, and supersede all
prior agreements, understandings, negotiations and discussions, whether oral or
written, among the Parties with respect to the subject matter hereof and
thereof. Except as expressly set forth in this Agreement, there are no
representations, warranties, covenants, conditions or other agreements, express
or implied, collateral, statutory or otherwise, between the Parties in
connection with the subject matter hereof or thereof. The Parties have not
relied, and are not relying, on any other information, discussion or
understanding in entering into and completing the transactions contemplated by
this Agreement, except as set out herein. 

- 11 - 

	6.8 	
      Successors and Assigns

	 	 	 
		(a) 	
      This Agreement will become effective only when executed
      by each of the Parties. After that time, it is binding on and enures to
      the benefit of the Parties and their respective heirs, administrators,
      executors, legal personal representatives, successors and permitted
      assigns.

	 	 	 
		(b) 	
      Except as otherwise provided in this Agreement, neither
      this Agreement nor any of the rights or obligations under this Agreement,
      are assignable or transferable by the Corporation without the prior
      written consent of the Lender, nor by the Lender without the prior written
      consent of the Corporation.

6.9        Further
Assurances 

The Parties agree to execute and deliver such further and other
instruments, cause such meetings to be held and resolutions to be passed or
enacted, exercise their vote and influence, and do and perform and cause to be
done and performed, such further and other acts and things as may be necessary
or desirable in order to give full effect to this Agreement. 

6.10     
Severability 

If any provision of this Agreement is determined to be illegal,
invalid or unenforceable by an arbitrator or any court of competent jurisdiction
from which no appeal exists or is taken, that provision will be severed from
this Agreement and the remaining provisions will remain in full force and
effect. 

6.11      Independent
Legal Advice 

The Lender acknowledges and agrees that the Corporation has
given the Lender the opportunity to seek, and has recommended that the Lender
obtain, independent legal advice with respect to the subject matter of this
Agreement and, further, the Lender hereby represents and warrants to the
Corporation that the Lender has sought independent legal advice or waives such
advice. 

6.12      Governing
Law 

This Agreement shall be governed by and interpreted and
enforced in accordance with the laws of the Province of British Columbia and the
federal laws of Canada applicable therein, and the Parties attorn to the
exclusive jurisdiction of the courts of the Province of British Columbia. 

6.13    
 Counterparts and Electronic Signatures 

This Agreement may be executed in any number of counterparts
(including counterparts executed or delivered by facsimile, portable document
format (“.pdf”) or other electronic method or transmission) and all such
counterparts taken together will be deemed to be originally signed documents and
to constitute one and the same instrument and, notwithstanding the date of
execution, shall be deemed to be executed as at the date of this Agreement. 

- 12 - 

6.14      Non-Merger

Except as otherwise expressly provided in this Agreement, the
covenants, representations and warranties contained herein shall not merge on
and shall survive the Closing. Notwithstanding the Closing or any investigation
made by or on behalf of any Party, the covenants, representations and warranties
shall continue in full force and effect. Closing shall not prejudice any right
of one Party against the others in respect of anything done or omitted under
this Agreement or in respect of any right to damages or other remedies. 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

- 13 - 

IN WITNESS WHEREOF the Parties have executed this Loan
Agreement as of the date first written above. 

 

GARMATEX HOLDINGS LTD. 

 

	 	Per: 	/s/ Devon Loosdrecht 
	 	  	Authorized Signatory
  

	BGC CONSULTANTS LIMITED 	)	
	EXECUTED by BILL CALSBECK in the 	)	
	  	)	
	Title: President 	)	
	  	)	
	  	)	 /s/ Bill Calsbeck 
	presence of: 	)	BGC CONSULTANTS LIMITED 
	  	)	
	/s/ Stacy Calsbeck
    	)	
	Signature 	)	
	  	)	
	Print Name 	)	
	  	)	 
	Address 		  
	  		  
	  		  
	 	 	 
	  		  
	Occupation 		  

- 14 - 

Schedule A 

CERTIFICATE OF NON-US LENDER

Capitalized terms used but not otherwise defined in this
certificate (this “Certificate”) shall have the meanings given to such
terms in that certain loan agreement dated April 28, 2017 (the
“Agreement”) between the undersigned (the “Lender”) and Garmatex
Holdings Ltd. (the “Corporation”). In connection with the Loan and the
Common Shares that may be issued by the Corporation to the Lender upon a
Conversion pursuant to the Agreement (collectively, the “Securities”),
the Lender hereby agrees, acknowledges, represents, warrants and covenants that:

	1. 	
      None of the Securities have been or will be registered
      under the Securities Act, or under any securities or “blue sky”
      laws of any state of the United States, and, unless so registered, may not
      be offered or sold in the United States or, directly or indirectly, to any
      U.S. Person (as defined below), except in accordance with the provisions
      of Regulation S under the Securities Act (“Regulation S”),
      pursuant to an effective registration statement under the Securities
      Act, or pursuant to an exemption from, or in a transaction not subject
      to, the registration requirements of the Securities Act, and in
      each case only in accordance with applicable state, provincial and foreign
      securities laws.

	 	 
	2. 	
      The Corporation has not undertaken, and will have no
      obligation, to register any of the Securities under the Securities Act
      or any other applicable securities laws.

	 	 
	3. 	
      The Corporation will refuse to register the transfer of
      any of the Securities to a U.S. Person not made pursuant to an effective
      registration statement under the Securities Act or pursuant to an
      available exemption from the registration requirements of the
      Securities Act and in each case in accordance with applicable
      laws.

	 	 
	4. 	
      The decision to execute this Agreement and to acquire the
      Securities has not been based upon any oral or written representation as
      to fact or otherwise made by or on behalf of the Corporation and such
      decision is based entirely upon a review of any public information which
      has been filed by the Corporation with the United States Securities and
      Exchange Commission (the “SEC”).

	 	 
	5. 	
      The Corporation and others will rely upon the truth and
      accuracy of the acknowledgements, representations, warranties, covenants
      and agreements of the Lender contained in this Certificate and the Lender
      agrees that if any of such acknowledgements, representations and
      agreements are no longer accurate or have been breached, the Lender will
      promptly notify the Corporation.

	 	 
	6. 	
      The Lender and the Lender’s advisor(s) have had a
      reasonable opportunity to ask questions of, and receive answers from, the
      Corporation in connection with the distribution of the Securities
      hereunder, and to obtain additional information, to the extent possessed
      or obtainable without unreasonable effort or expense, necessary to verify
      the accuracy of the information about the Corporation.

	 	 
	7. 	
      The books and records of the Corporation were available
      upon reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Lender during reasonable business hours at its
      principal place of business, and all documents, records and books
  in

- 15 - 

		
      connection with the distribution of the Securities
      hereunder have been made available for inspection by the Lender, its legal
      counsel and/or its advisor(s).

	 	 	 
	8. 	
      Any resale of the Securities by the Lender will be
      subject to resale restrictions contained in the securities laws applicable
      to the Corporation, the Lender and any proposed transferee, including
      resale restrictions imposed under United States securities laws.

	 	 	 
	9. 	
      The Lender has been advised to consult the Lender’s own
      legal, tax and other advisors with respect to the merits and risks of an
      investment in the Securities and with respect to applicable resale
      restrictions, and it is solely responsible (and the Corporation is not in
      any way responsible) for compliance with:

	 	 	 
		(a) 	
      any applicable laws of the jurisdiction in which the
      Lender is resident in connection with the distribution of the Securities
      hereunder, and

	 	 	 
		(b) 	
      applicable resale
restrictions.

	10. 	
      No documents in connection with the issuance of the
      Securities have been reviewed by the SEC or any other securities
      regulators.

	 	 	 
	11. 	
      Neither the SEC nor any other securities commission or
      similar regulatory authority has reviewed or passed on the merits of any
      of the Securities.

	 	 	 
	12. 	
      There is no government or other insurance covering any of
      the Securities.

	 	 	 
	13. 	
      The Lender is not a U.S. Person.

	 	 	 
	14. 	
      Offers and sales of any of the Securities prior to the
      expiration of the period specified in Regulation S (such period
      hereinafter referred to as the “Distribution Compliance Period”)
      will only be made in compliance with the safe harbor provisions set forth
      in Regulation S or pursuant to the registration provisions of the
      Securities Act or an exemption therefrom, and that all offers and
      sales after the Distribution Compliance Period will be made only in
      compliance with the registration provisions of the Securities Act
      or an exemption therefrom, and in each case only in accordance with
      applicable securities laws.

	 	 	 
	15. 	
      Hedging transactions involving the Securities may not be
      conducted unless such transactions are in compliance with the provisions
      of the Securities Act and in each case only in accordance with
      applicable securities laws.

	 	 	 
	16. 	
      If the Lender is not a resident in Canada and the United
      States,

	 	 	 
		(a) 	
      The Lender is knowledgeable of, or has been independently
      advised as to, the applicable securities laws having application in the
      jurisdiction in which the Lender is resident (the “International
      Jurisdiction”) which would apply to the offer and sale of the
      Securities.

	 	 	 
		(b) 	
      The Lender is purchasing the Securities pursuant to
      exemptions from prospectus or equivalent requirements under applicable
      laws or, if such is not applicable, the Lender is permitted to purchase
      the Securities under applicable securities laws
of the International Jurisdiction without the need to rely
  on any exemptions.

- 16 - 

	 	(c) 	
      The applicable securities laws of the International
      Jurisdiction do not require the Corporation to make any filings or seek
      any approvals of any kind from any securities regulator of any kind in the
      International Jurisdiction in connection with the offer, issue, sale or
      resale of any of the Securities.

	 	 	 	 
	 	(d) 	
      The purchase of the Securities by the Lender does not
      trigger:

	 	 	 	 
	 		(i) 	
      any obligation to prepare and file a prospectus or
      similar document, or any other report with respect to such purchase in the
      International Jurisdiction, or

	 	 	 	 
	 		(ii) 	
      any continuous disclosure reporting obligation of the
      Corporation in the International Jurisdiction.

	 	(e) 	
      The Lender will, if requested by the Corporation, deliver
      to the Corporation a certificate or opinion of local counsel from the
      International Jurisdiction which will confirm the matters referred to in
      Sections (b), (c) and (d) above to the satisfaction of the Corporation,
      acting reasonably.

	17. 	
      The Lender is aware that an investment in the Corporation
      is speculative and involves certain risks and the possible loss of the
      entire Loan Amount.

	 	 
	18. 	
      The Lender has made an independent examination and
      investigation of an investment in the Securities and the Corporation and
      agrees that the Corporation will not be responsible in any way for the
      Lender’s decision to invest in the Securities and the
  Corporation.

	 	 
	19. 	
      The Lender is not an underwriter of, or dealer in, any of
      the Securities, nor is the Lender participating, pursuant to a contractual
      agreement or otherwise, in the distribution of the Securities.

	 	 
	20. 	
      The Lender is purchasing the Securities for its own
      account for investment purposes only and not for the account of any other
      person and not for distribution, assignment or resale to others, and no
      other person has a direct or indirect beneficial interest in such
      Securities, and the Lender has not subdivided its interest in any of the
      Securities with any other person.

	 	 
	21. 	
      The Lender is not aware of any advertisement of any of
      the Securities and is not acquiring the Securities as a result of any form
      of general solicitation or general advertising, including advertisements,
      articles, notices or other communications published in any newspaper,
      magazine or similar media, or broadcast over radio or television, or any
      seminar or meeting whose attendees have been invited by general
      solicitation or general advertising.

	 	 
	22. 	
      The Lender has not acquired the Securities as a result
      of, and will not itself engage in, any “directed selling efforts” (as
      defined in Regulation S) in the United States in respect of any of the
      Securities which would include any activities undertaken for the purpose
      of, or that could reasonably be expected to have the effect of,
      conditioning the market in the United States for the resale of any of the
      Securities, provided, however, that the Lender may sell
  or otherwise dispose of any of the Securities pursuant to
      registration of any of the Securities pursuant to the Securities Act and any applicable securities laws or under an exemption from such
registration requirements.

- 17 - 

	23. 	
      No person has made to the Lender any written or oral
      representations:

	 	 	 
		(a) 	
      that any person will resell or repurchase any of the
      Securities,

	 	 	 
		(b) 	
      that any person will refund the purchase price of any of
      the Securities, or

	 	 	 
		(c) 	
      as to the future price or value of any of the
      Securities.

	24. 	
      In this Certificate, the term “U.S. Person” will
      have the meaning ascribed thereto in Regulation S, and for the purpose of
      this Certificate includes, but is not limited to:

	 	 	 
		(a) 	
      any person in the United States;

	 	 	 
		(b) 	
      any natural person resident in the United
  States;

	 	 	 
		(c) 	
      any partnership or corporation organized or incorporated
      under the laws of the United States;

	 	 	 
		(d) 	
      any partnership or corporation organized outside the
      United States by a U.S. Person principally for the purpose of investing in
      securities not registered under the Securities Act, unless it is
      organized or incorporated, and owned, by accredited investors who are not
      natural persons, estates or trusts; or

	 	 	 
		(e) 	
      any estate or trust of which any executor or
      administrator or trustee is a U.S. Person.

	25. 	
      the Lender is not an “insider” of the Corporation as
      defined in the Securities Act (British Columbia) and the
      regulations promulgated thereunder, as amended from time to time (the
      “B.C. Act”) (for example, a director, officer, promoter, and/or
      holder of more than 10% of voting securities of the
Corporation).

	 	 	 
	26. 	
      The Lender is not a “registrant” as defined in the B.C.
      Act.

	 	 	 
	27. 	
      The Lender does not hold, or control or direct, directly
      or indirectly, any securities of the Corporation.

	 	 	 
	28. 	
      The Lender acknowledges that the Securities will be
      issued pursuant to prospectus exemptions provided under National
      Instrument 45-106 – Prospectus Exemptions adopted by the Canadian
      Securities Administrators and acknowledge that:

	 	 	 
		(a) 	
      no securities commission or similar regulatory authority
      has reviewed or passed on the merits of the Securities;

	 	 	 
		(b) 	
      there is no government or other insurance covering the
      Securities;

	 	 	 
		(c) 	
      there are risks associated with the purchase of the
      Securities;

- 18 - 

	 	(d) 	
      there are restrictions on the Lender’s ability to resell
      the Securities and it is the responsibility of the Lender to find out what
      those restrictions are and to comply with them before selling the
      Securities;

	 	 	 
	 	(e) 	
      the Corporation has advised the Lender that the
      Corporation is relying on an exemption from the requirements to provide
      the Lender with a prospectus and to sell securities through a person
      registered to sell securities under the B.C. Act and, as a consequence of
      acquiring securities pursuant to this exemption, certain protections,
      rights and remedies provided by the B.C. Act, including statutory rights
      of rescission or damages, will not be available to the Lender;
  and

	 	 	 
	 	(a) 	
      to evidence the Lender’s eligibility for such exemptions,
      the Lender shall complete, sign and return to the Corporation the Canadian
      Investor Questionnaire attached as Exhibit A.

	29. 	
      Common Shares to be issued to the Lender upon Conversion
      of the Loan Amount (the “Conversion Shares”) will bear a legend in
      substantially the following form:

  
    
      
        “THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
          OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
          PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
          AMENDED (THE “1933 ACT”). 

        NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED
          UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
          REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
          STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE
          PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
          FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
          1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
          LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
          CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S.
          PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.” 

      

    

  

	30. 	
      if the Lender is a resident of Canada, the Lender
      acknowledges and agrees that, in addition to the legend set forth in
      paragraph 29 above, any certificate representing the Conversion Shares
      will also bear the following restrictive legend (the “Canadian
      Legend”) specified in Multilateral Instrument 51-105 – Issuers
      Quoted in the U.S. Over the Counter Markets (“MI 51-
    105”):

  
    
      
        “THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY IN OR
          FROM A JURISDICTION OF CANADA UNLESS THE CONDITIONS IN SECTION 13 OF MULTILATERAL INSTRUMENT 51-105
          ISSUERS QUOTED IN THE U.S. OVER-THE-COUNTER MARKETS ARE MET.” 

      

    

  

- 19 - 

	31. 	
      if the Lender is not a resident of Canada, the Lender
      acknowledges, agrees, represents and warrants that:

	 	 	 
		(a) 	
      pursuant to MI 51-105, a subsequent trade in any of the
      Securities in or from Canada will be a distribution subject to the
      prospectus and registration requirements of Applicable Securities Laws
      unless certain conditions are met, which conditions include, among others,
      a requirement that any certificate representing the Securities (or
      ownership statement issued under a direct registration system or other
      book entry system) bear the Canadian Legend;

	 	 	 
		(b) 	
      the Lender is not a resident of Canada and undertakes not
      to trade or resell any of the Securities in or from Canada unless the
      trade or resale is made in accordance with MI 51-105. The Lender
      understands that others will rely upon the truth and accuracy of the
      representations and warranties contained in this Certificate and agrees
      that if such representations and warranties are no longer accurate or have
      been breached, the Lender shall immediately notify the
  Corporation;

	 	 	 
		(c) 	
      by executing and delivering the Loan Agreement and this
      Certificate and as a consequence of the representations and warranties
      made by the Lender contained in this Certificate, the Lender will have
      directed the Corporation not to include the Canadian Legend on any
      certificates representing any of the Securities to be issued to the
      Lender. As a consequence, the Lender will not be able to rely on the
      resale provisions of MI 51-105, and any subsequent trade in any of the
      Securities in or from Canada will be a distribution subject to the
      prospectus and registration requirements of the Applicable Securities
      Laws; and

	 	 	 
		(d) 	
      if the Lender wishes to trade or resell any of the
      Securities in or from Canada, the Lender agrees and undertakes to return,
      prior to any such trade or resale, any certificate representing the
      Securities to the Corporation’s transfer agent or the Corporation, as
      applicable, to have the Canadian Legend imprinted on such certificate or
      to instruct the Corporation’s transfer agent to include the Canadian
      Legend on any ownership statement issued under a direct registration
      system or other book entry system.

	32. 	
      the Corporation shall refuse to register any transfer of
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to registration under the Securities Act, pursuant to an
      available exemption from registration under the Securities Act or
      pursuant to an available exemption from the registration and prospectus
      requirements of the Applicable Securities Laws.

	 	 
	33. 	
      the address of the Lender included herein is the sole
      address of the Lender as of the date of this Certificate.

	 	 
	34. 	
      no person or company has or will have any agreement or
      option or any right capable at any time of becoming an agreement to
purchase or otherwise acquire the Conversion Shares or require the Lender to
sell, transfer, assign, pledge, charge, mortgage or in any other way dispose of
or encumber any of the Conversion Shares other than under the Loan Agreement. 

- 20 - 

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- 21 - 

Date: June ___ , 2017 

IN WITNESS WHEREOF, the Lender has executed this
Certificate of Non-US Lender. 

	Lender Information 	 	Registration Instruction 
	 	 	 
	 	 	 
	 	 	 
	(Name of lender) 	 	(Name to appear on the share certificate)

	 	 	 
	 	 	 
	X 	 	 
    
	(Signature of authorized signatory) 	 	(Address, including city and postal code)

	 	 	 
	 	 	 
	 	 	 
	(Name and title of authorized signatory) 	 	  
	 	 	 
	 	 	 
	(Incorporation # or other tax identification #) 	 	  
	 	 	 
	 	 	 
	(Address, including city and postal code) 	 	  
	 	 	 
	  	 	  
	 	 	 
	 	 	 
	 	 	 
	(Telephone number) 	 	  

- 22 - 

EXHIBIT A 

CANADIAN ACCREDITED INVESTOR QUESTIONNAIRE 

	TO: 	GARMATEX HOLDINGS LTD. (the
      “Corporation”) 
	 	 
	RE: 	Loan and Common Shares of the
      Corporation 

Capitalized terms used in this Canadian Accredited Investor
Questionnaire (this “Questionnaire”) and not specifically defined have
the meaning ascribed to them in the Certificate of Non-US Lender between the
undersigned (the “Lender”) and the Corporation to which this Exhibit A is
attached. 

All dollar amounts referred to in this Questionnaire and
Appendix A are in lawful money of Canada, unless otherwise indicated.

In connection with the acquisition by the Lender of the
Securities, the Lender hereby represents, warrants and certifies to the
Corporation that the Lender: 

	 	(i) 	
      is acquiring any Securities as principal (or deemed
      principal under the terms of National Instrument 45-106 – Prospectus
      Exemptions adopted by the Canadian Securities Administrators (“NI
      45-106”));

	 	(A) 	
      (A)         
      is resident in or is subject to the laws of one of the following (check
      one):

	O Alberta 	O New Brunswick 	O Prince Edward Island 
	 	 	 
	O British Columbia 	O Nova Scotia 	O Quebec 
	 	 	 
	O Manitoba 	O Ontario 	O Saskatchewan 
	 	 	 
	O Newfoundland and Labrador 	 	O Yukon 
	 	 	 
	O Northwest Territories 	  	  
	 	 	 
	O United States: ____________________________
      (List State of Residence) 

	 	(B) 	
      O           
      is resident in a country other than Canada or the United States;
  and

	 	(iii) 	
      has not been provided with any offering memorandum in
      connection with the acquisition of the
Securities.

- 23 - 

	(a) 	
      In connection with the acquisition of the Securities, the
      Lender hereby represents, warrants, covenants and certifies that the
      Lender is an “accredited investor” within the meaning of NI 45-106, by
      virtue of satisfying the indicated criterion below (YOU MUST INITIAL OR
      PLACE A CHECK- MARK ON THE APPROPRIATE LINE(S) AND, IF APPLICABLE, ALSO
      COMPLETE AND SIGN APPENDIX “A” TO THIS QUESTIONNAIRE) (see certain
      guidance with respect to accredited investors that starts on page A-11
      below):

		O 	(i) 	
      except in Ontario, a person registered under the
      securities legislation of a jurisdiction of Canada as an adviser or
      dealer, 

	 	  	  	     
		O 	(ii) 	
      an individual registered under the securities legislation
      of a jurisdiction of Canada as a representative of a person referred to in
      paragraph (i), 

	 	  	  	     
		O 	(iii) 	
      an individual formerly registered under the securities
      legislation of a jurisdiction of Canada, other than an individual formerly
      registered solely as a representative of a limited market dealer under one
      or both of the Securities Act (Ontario) or the Securities
      Act (Newfoundland and Labrador), 

	 	  	  	     
		O 	(iv) 	
      an individual who, either alone or with a spouse,
      beneficially owns financial assets having an aggregate realizable value
      that, before taxes but net of any related liabilities, exceeds $1,000,000,
      

	 	  	  	     
		O 	(v) 	
      an individual who beneficially owns financial assets
      having an aggregate realizable value that, before taxes but net of any
      related liabilities, exceeds $5,000,000, 

	 	  	  	     
		O 	(vi) 	
      an individual whose net income before taxes exceeded
      $200,000 in each of the 2 most recent calendar years or whose net income
      before taxes combined with that of a spouse exceeded $300,000 in each of
      the 2 most recent calendar years and who, in either case, reasonably
      expects to exceed that net income level in the current calendar year,
    

	 	  	  	     
	 	O 	(vii) 	
      an individual who, either alone or with a spouse, has net
      assets of at least $5,000,000, 

				
		O 	(viii) 	
      a person, other than an individual or investment fund,
      that has net assets of at least $5,000,000 as shown on its most recently
      prepared financial statements and that has not been created or
      used solely to purchase or hold securities as an accredited
      investor as defined in this paragraph (viii), or 

	 	  	  	     
		O 	(ix) 	
      a person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law to be owned by directors, are persons that are accredited
      investors; and 

	(b) 	
      if the Lender is an “accredited investor” within the
      meaning of NI 45-106 by virtue of satisfying the indicated criterion as
      set out in paragraphs (iv), (vi) or (vii) above, the Lender has provided
      the Corporation with the signed risk acknowledgment form set out in
      Appendix “A” to this Questionnaire.

- 24 - 

For the purposes of this Questionnaire and Appendix A attached
hereto:

	 	(a) 	
      an issuer is “affiliated” with another issuer
      if

	 	 	 	 
	 		(i) 	
      one of them is the subsidiary of the other, or

	 	 	 	 
	 		(ii) 	
      each of them is controlled by the same
  person;

	 	(b) 	
      “control person” means

	 	 	 	 
	 		(i) 	
      a person who holds a sufficient number of the voting
      rights attached to all outstanding voting securities of an issuer to
      affect materially the control of the issuer, or

	 	 	 	 
	 		(ii) 	
      each person in a combination of persons, acting in
      concert by virtue of an agreement, arrangement, commitment or
      understanding, which holds in total a sufficient number of the voting
      rights attached to all outstanding voting securities of an issuer to
      affect materially the control of the issuer,

	 		
      and, if a person or combination of persons holds more
      than 20% of the voting rights attached to all outstanding voting
      securities of an issuer, the person or combination of persons is deemed,
      in the absence of evidence to the contrary, to hold a sufficient number of
      the voting rights to affect materially the control of the
issuer;

	 	 	 	 
	 	(c) 	
      “director” means

	 	 	 	 
	 		(i) 	
      a member of the board of directors of a company or an
      individual who performs similar functions for a company, and

	 	 	 	 
	 		(ii) 	
      with respect to a person that is not a company, an
      individual who performs functions similar to those of a director of a
      company;

	 	(d) 	
      “executive officer” means, for an issuer, an
      individual who is

	 	 	 	 
	 		(i) 	
      a chair, vice-chair or president,

	 	 	 	 
	 		(ii) 	
      a vice-president in charge of a principal business unit,
      division or function including sales, finance or production, or

	 	 	 	 
	 		(iii) 	
      performing a policy-making function in respect of the
      issuer;

	 	(e) 	
      “financial assets” means

	 	 	 	 
	 		(i) 	
      cash,

	 	 	 	 
	 		(ii) 	
      securities, or

	 	 	 	 
	 		(iii) 	
      a contract of insurance, a deposit or an evidence of a
      deposit that is not a security for the purposes of securities
      legislation;

	 	(f) 	
      “founder” means, in respect of an issuer, a person
      who,

	 	 	 	 
	 		(i) 	
      acting alone, in conjunction, or in concert with one or
      more persons, directly or indirectly, takes the initiative in founding,
      organizing or substantially reorganizing the business of the issuer,
      and

	 	 	 	 
	 		(ii) 	
      at the time of the distribution or trade is actively
      involved in the business of the issuer;

	 	(g) 	
      “individual” means a natural person, but does not
      include

	 	 	 	 
	 		(i) 	
      a partnership, unincorporated association, unincorporated
      syndicate, unincorporated organization or trust,
or

- 25 - 

	 	(ii) 	
      a natural person in the person's capacity as a trustee,
      executor, administrator or personal or other legal
  representative;

	 	(h) 	
      “jurisdiction” or “jurisdiction of Canada” means a
      province or territory of Canada;

	 	 	 	 
	 	(i) 	
      “person” includes

	 	 	 	 
	 		(i) 	
      an individual;

	 	 	 	 
	 		(ii) 	
      a corporation;

	 	 	 	 
	 		(iii) 	
      a partnership, trust, fund and an association, syndicate,
      organization or other organized group of persons, whether incorporated or
      not; and

	 	 	 	 
	 		(iv) 	
      an individual or other person in that person’s capacity
      as a trustee, executor, administrator or personal or other legal
      representative;

	 	(j) 	
      “related liabilities” means

	 	 	 	 
	 		(i) 	
      liabilities incurred or assumed for the purpose of
      financing the acquisition or ownership of financial assets, or

	 	 	 	 
	 		(ii) 	
      liabilities that are secured by financial assets;
    and

	 	(k) 	
      “spouse” means, an individual who,

	 	 	 	 
	 		(i) 	
      is married to another individual and is not living
      separate and apart within the meaning of the Divorce Act (Canada),
      from the other individual,

	 	 	 	 
	 		(ii) 	
      is living with another individual in a marriage-like
      relationship, including a marriage-like relationship between individuals
      of the same gender, or

	 	 	 	 
	 		(iii) 	
      in Alberta, is an individual referred to in paragraph (i)
      or (ii), or is an adult interdependent partner within the meaning of the
      Adult Interdependent Relationships Act
(Alberta).

Guidance On Accredited Investor Exemptions for
Individuals 

An individual accredited investor is an individual: 

	 	(a) 	
      who, either alone or with a spouse, beneficially owns
      financial assets (please see the guidance below regarding what financial
      assets are) having an aggregate realizable value that. before taxes but
      net of any related liabilities (please see the guidance below regarding
      what related liabilities are), exceeds $1,000,000;

	 	 	 
	 	(b) 	
      whose net income before taxes exceeded $200,000 in each
      of the 2 most recent calendar years or whose net income before taxes
      combined with that of a spouse exceeded $300,000 in each of the 2 most
      recent calendar years and who, in either case, reasonably expects to
      exceed that net income level in the current calendar year;

	 	 	 
	 	(c) 	
      who, either alone or with a spouse, has net assets
      (please see the guidance below regarding calculating net assets) of at
      least $5,000,000; and

	 	 	 
	 	(d) 	
      who beneficially owns financial assets (please see the
      guidance below regarding what financial assets are) having an aggregate
      realizable value that, before taxes but net of any related liabilities
      (please see the guidance below regarding what related liabilities are),
      exceeds $5,000,000.

The monetary thresholds above are intended to create
bright-line standards. Lenders who do not satisfy these monetary thresholds
do not qualify as accredited investors. 

- 26 - 

Spouses 

Sections (a), (b) and (c) above are designed to treat spouses
as a single investing unit, so that either spouse qualifies as an accredited
investor if the combined financial assets of both spouses exceed $1,000,000, the
combined net income of both spouses exceeds $300,000, or the combined net assets
of both spouses exceed $5,000,000. Section (d) above does not treat spouses as a
single investing unit.

If the combined net income of both spouses does not exceed
$300,000, but the net income of one of the spouses exceeds $200,000, only the
spouse whose net income exceeds $200,000 qualifies as an accredited investor.

Financial Assets and Related Liabilities 

For the purposes of Sections (a) and (d) above, “financial
assets” means: (1) cash, (2) securities, or (3) a contract of insurance, a
deposit or an evidence of a deposit that is not a security for the purposes of
securities legislation. These financial assets are generally liquid or
relatively easy to liquidate. The value of the Lender’s personal residence is
not included in a calculation of financial assets. 

The calculation of financial assets must exclude “related
liabilities”, meaning: (1) liabilities incurred or assumed for the purpose
of financing the acquisition or ownership of financial assets, or (2)
liabilities that are secured by financial assets. 

As a general matter, it should not be difficult to determine
whether financial assets are beneficially owned by an individual, an
individual’s spouse, or both, in any particular instance. However, in the case
where financial assets are held in a trust or in another type of investment
vehicle for the benefit of an individual, there may be questions as to whether
the individual beneficially owns the financial assets. The following factors are
indicative of beneficial ownership of financial assets: 

	physical or constructive possession of evidence of ownership of the
  financial asset;
  
	entitlement to receipt of any income generated by the financial asset;
  
	risk of loss of the value of the financial asset; and
  
	the ability to dispose of the financial asset or otherwise deal with it as
  the individual sees fit. 

For example, securities held in a self-directed RRSP for the
sole benefit of an individual are beneficially owned by that individual. 

In general, financial assets in a spousal RRSP can be included
for the purposes of the $1,000,000 financial asset test in Section (a) above
because Section (a) takes into account financial assets owned beneficially by a
spouse. However, financial assets in a spousal RRSP cannot be included for
purposes of the $5,000,000 financial asset test in Section (d) above. 

Financial assets held in a group RRSP under which the
individual does not have the ability to acquire the financial assets and deal
with them directly do not meet the beneficial ownership requirements in either
Sections (a) or (d) above. 

Net Assets 

For the purposes of Section (c) above, “net assets”
means all of the Lender’s total assets minus all of the Lender’s total
liabilities. Accordingly, for the purposes of the net asset test, the
calculation of total assets includes the value of the Lender’s personal
residence, and the calculation of total liabilities includes the amount of any
liability (such as a mortgage) in respect of the Lender’s personal residence.

- 27 - 

To calculate the Lender’s net assets under the net asset test,
subtract the Lender’s total liabilities from the Lender’s total assets. The
value attributed to assets should reasonably reflect their estimated fair value.
Income tax is considered a liability if the obligation to pay it is outstanding
at the time of the distribution of the security to the Lender by the
Corporation. 

Guidance On Accredited Investor Exemptions for
Corporations, Trusts and Other Entities

Accredited investors that are corporations, trusts or other
entities include: 

	 	(a) 	
             a corporation, trust
      or other entity, other than an investment fund, that has net assets
      (please see the guidance below regarding calculating net assets) of at
      least $5,000,000 as shown on its most recently prepared financial
      statements in accordance with applicable generally accepted accounting
      principles and that has not been created or used solely to purchase or
      hold securities as an accredited investor;

	 	 	 
	 	(b) 	
             a corporation, trust
      or other entity in respect of which all of the owners of interests,
      direct, indirect or beneficial, except the voting securities required by
      law to be owned by directors, are persons that are accredited investors;
      and

	 	 	 
	 	(c) 	
             a trust established
      by an accredited investor for the benefit of the accredited investor’s
      family members of which a majority of the trustees are accredited
      investors and all of the beneficiaries are the accredited investor’s
      spouse, a former spouse of the accredited investor or a parent,
      grandparent, brother, sister, child or grandchild of that accredited
      investor, of that accredited investor’s spouse or of that accredited
      investor’s former spouse.

Net Assets 

For the purposes of Section (a) above, “net assets”
means all of the Lender’s total assets minus all of the Lender’s total
liabilities. The minimum net asset threshold of $5,000,000 specified in Section
(a) above must be shown on the entity’s most recently prepared financial
statements. The financial statements must be prepared in accordance with
applicable generally accepted accounting principles. 

The Lender agrees that the above representations and warranties
will be true and correct both as of the execution of this Questionnaire and
acknowledges that they will survive the acquisition of the Securities. 

The Lender acknowledges that the foregoing representations and
warranties are made by the Lender with the intent that they be relied upon in
determining the suitability of the Lender to acquire the Securities. 

The Lender undertakes to immediately notify the Corporation of
any change in any statement or other information relating to the Lender set
forth in this Questionnaire which takes place prior to the acquisition of any
Securities. 

- 28 - 

By completing this Questionnaire, the Lender authorizes the
indirect collection of this information by each applicable regulatory authority
or regulator and acknowledges that such information is made available to the
public under applicable laws.

DATED as of day of , 2017. 

	 	 
	 	Print Name of Lender 
	 	 
	 	 
	 	 
	 	Signature 

- 29 - 

APPENDIX A 
TO CANADIAN INVESTOR QUESTIONNAIRE

Form 45-106F9 
Form of Individual Accredited
Investors 

	WARNING! 
	This investment is risky. Don’t invest unless you can
      afford to lose all the money you pay 
for this investment.
    

	SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY
      HOLDER 
	1. About your investment 

	Type of securities: Loan and Common Shares of the Issuer 	Issuer: GARMATEX HOLDINGS LTD. (the
      “Issuer”) 

	Purchased from: The Issuer. 
	SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER 
	2. Risk acknowledgement 

	
This investment is risky. Initial that you understand that:
    	Your 
initials 
	Risk of loss – You could lose your entire investment of
      US$100,000. [Instruction: Insert the total dollar amount of the
      investment.] 	  
	Liquidity risk – You may not be able to sell your
      investment quickly – or at all. 	  
	Lack of information – You may receive little or no
      information about your investment. 	  
	Lack of advice – You will not receive advice from the
      salesperson about whether this investment is suitable for you unless the
      salesperson is registered. The salesperson is the person who meets with,
      or provides information to, you about making this investment. To check
      whether the salesperson is registered, go to www.aretheyregistered.ca. 	  
	3. Accredited investor status 	   
	You must meet at least one of the following criteria to be able
      to make this investment. Initial the statement that applies to you. (You
      may initial more than one statement.) The person identified in section 6
      is responsible for ensuring that you meet the definition of accredited
      investor. That person, or the salesperson identified in section 5, can
      help you if you have questions about whether you meet these criteria. 	Your 
initials 
	•           
      Your net income before taxes was more than $200,000 in each of the 2 most
      recent calendar years, and you expect it
      
             
      to be more than $200,000 in the current calendar year. (You can find your
      net income before taxes on your
      personal 
             
      income tax return.) 	  
	•            
      Your net income before taxes combined with your spouse’s was more than
      $300,000 in each of the 2 most
      recent 
             
      calendar years, and you expect your combined net income before taxes to be
      more than $300,000 in the
      current 
             
      calendar year. 	  

- 30 - 

	•            
      Either alone or with your spouse, you own more than $1 million in cash and
      securities, after
      subtracting 
             
      any debt related to the cash and securities. 	  
	•            Either
      alone or with your spouse, you have net assets worth more than $5 million.
      (Your net assets
      are 
             
      your total assets (including real estate) minus your total debt.) 	  

	4. Your name and signature 
	
      By signing this form, you confirm that you have read this
      form and you understand the risks of making this investment as identified
      in this form. 

	First and last name (please print): 

	Signature: 	Date: 
	SECTION 5 TO BE COMPLETED BY THE SALESPERSON 	   

	5. Salesperson information 
	
      [Instruction: The salesperson is the person who meets
      with, or provides information to, the purchaser with respect to making
      this investment. That could include a representative of the issuer
      or selling security holder, a registrant or a person who is exempt
      from the registration requirement.] 

	First and last name of salesperson (please print):
  

	Telephone: 	Email: 

	Name of firm (if registered): 
	SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY
      HOLDER 
	6. For more information about this investment 
	For investment in a non-investment fund 
Garmatex Holdings
      Ltd. 
7458 Allison Place 
Chilliwack, BC V4Z 1J7, Canada 
Devon
      Loosdrecht, President 
Telephone: (778) 823-3104
      
devon@garmatexholdings.com 
	 
	For more information about prospectus exemptions, contact
      your local securities regulator. You can find contact information
      at www.securities-administrators.ca. 

- 31 - 

Schedule B 

NOTICE OF CONVERSION

Capitalized terms used herein and not otherwise defined herein
have the meanings set out in the Loan Agreement, dated April 28, 2017 (the
“Loan Agreement”) entered into by Garmatex Holdings Ltd. (the
“Corporation”) and BGC CONSULTANTS LIMITED (“BGC”). 

The undersigned hereby irrevocably elects to convert the
following amounts owing under the Loan Agreement into Common Shares according to
the terms and conditions of the Loan Agreement, as of the date written below. If
Common Shares are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and will deliver such certificates and opinions as reasonably requested
by the Corporation prior to any conversion.

The undersigned agrees to comply with Applicable Securities
Laws in connection with any transfer of the Common Shares. 

	Conversion Date: 	 
    
	 	 
	Applicable Conversion Price: 	$0.20
    
	 	 
	 	 
	Aggregate amount of Principal Amount to be converted: 	$
  
	 	 
	 	 
	Aggregate amount of accrued interest to be converted: 	$
  
	 	 
	 	 
	Number of Common Shares to be issued: 	  
	 	 
	 	 
	Principal Amount of Loan Agreement unconverted: 	$
  
	 	 
	 	 
	Aggregate amount of accrued interest unconverted: 	$
  
	 	 
	 	 
	Register the Common Shares in the following name and
      address: 	  
	 	 
	  	  
	  	  
	  	  
	 	 
	 	 
	 	 
	 	 
	Signature of the Holder: 	 
    
	 	 
	  	  
	Name:Garmatex Holdings Ltd. - Exhibit 10.2 - Filed by newsfilecorp.com

ASSIGNMENT OF DEBT 

THIS ASSIGNMENT OF DEBT (this “Assignment”) is
made as of the 6th day of July, 2017. 

BETWEEN: 

  
    
      
        BGC CONSULTANTS LIMITED, of 5949 Berwick Street,
          Burnaby, British Columbia V5H 1V9, Canada 

        (the “Assignor”) 

      

    

  

AND: 

  
    
      
        ROBERT BREGANI, of 2833 West 18th Avenue, Vancouver,
          British Columbia V6L 1B7, Canada 

        (the “Assignee”) 

      

    

  

WHEREAS: 

A.      Garmatex Holdings Ltd., a
corporation incorporated under the laws of the State of Nevada, U.S.A., (the
“Company”) has borrowed from the Assignor US$100,000 (the “Loan”),
representing the principal amount of the loan, pursuant to a loan agreement
dated as of April 28, 2017 between the Assignor and the Company (the “Loan
Agreement”); and 

B.      Pursuant to a loan purchase
agreement dated July 6, 2017 (the “Loan Purchase Agreement”), the
Assignor wishes to assign to the Assignee and the Assignee wishes to take
assignment of all of the Assignor’s estate, right, title and interest in and to
all moneys and other obligations and liabilities now or hereafter due and owing
by the Borrower to the Vendor in connection with the Loan, including the
principal balance of the Loan outstanding and interest thereon, (collectively,
the “Indebtedness”) and the Loan Agreement (together with the
Indebtedness, the “Loan Assets”). 

NOW THEREFORE in consideration of the mutual premises,
covenants and agreements in this Assignment, and for other good and valuable
consideration (the receipt and sufficiency of which is hereby acknowledged by
the parties), the parties agree as follows: 

	1. 	
      In consideration of the Purchase Price (as defined in the
      Loan Purchase Agreement), the Assignor hereby assigns and transfers to the
      Assignee, absolutely, to and for its sole use forever, all of the
      Assignor’s estate, right, title and interest in and to the Loan Assets,
      including without limitation all right to enforce, collect and give
      acquittances for the Indebtedness, including the principal amount of the
      Loan and interest accrued or hereafter accruing thereto, if any, with full
      power and authority to collect payment of the Indebtedness from the
      Company. The Assignor further hereby grants to the Assignee power and
      authority to execute any changes in registrations that are required so as
      to give effect to this Assignment.

	 	 
	2. 	
      The Assignor hereby represents and warrants that: (i) it
      has full right, power an authority to enter into this Assignment and to
      assign the Loan Assets to the Assignee; (ii) this Assignment has been duly
      authorized, executed and delivered and is a legal, valid and binding
      obligation enforceable against the Assignor in accordance with its terms;
      (iii) it is the current holder and legal and beneficial owner of the Loan
      Assets; (iv) there are no collateral agreements, undertakings,
      declarations, or representations, written or oral, in respect of the Loan
      Assets; and (v) it has not assigned all or any part of its interest in the
      Loan Assets nor has it done or permitted any further act, matter or thing
      to be done whereby the Indebtedness has been released or discharged either
      partly or in its entirely.

	 	 
	3. 	
      The Assignor hereby covenants to the Assignee forthwith
      to endorse and deliver to the Assignee such documents or instruments
      governing or evidencing any of the Loan
Assets.

-2-

	4. 	
      Delivery of a copy of this Assignment to the Company
      shall be its irrevocable notice and instruction to recognize the Assignee
      as the person to whom the Indebtedness is now payable.

	 	 
	5. 	
      Each party shall at any time, and from time to time
      hereafter, take any and all steps and execute, acknowledge and deliver to
      the other party any and all further deeds, instruments and assurances that
      the other party may reasonably require for the purpose of giving full
      force and effect to the provisions of this Assignment.

	 	 
	6. 	
      All references to any party, whether a party to this
      Assignment or not, will be read with such changes in number and gender as
      the context or reference requires.

	 	 
	7. 	
      All dollar amounts referred to in this Assignment are in
      lawful money of the United States of America.

	 	 
	8. 	
      Any notice required or permitted to be given to any of
      the parties to this Assignment will be in writing and may be given by
      prepaid registered post, electronic facsimile transmission or other means
      of electronic communication capable of producing a printed copy to the
      address of such party first above stated or such other address as any
      party may specify by notice in writing to the other parties and any such
      notice will be deemed to have been given and received by the party to whom
      it was addressed if mailed, on the third day following the mailing
      thereof, if by facsimile or other electronic communication, on successful
      transmission, or, if delivered, on delivery; but if at the time of mailing
      or between the time of mailing and the third business day thereafter there
      is a strike, lockout or other labour disturbance affecting postal service,
      then the notice will not be effectively given until actually
    delivered.

	 	 
	9. 	
      This Assignment may be executed in several counterparts,
      each of which will be deemed to be an original and all of which will
      together constitute one and the same instrument.

	 	 
	10. 	
      Delivery of an executed copy of this Assignment by
      electronic facsimile transmission or other means of electronic
      communication capable of producing a printed copy will be deemed to be
      execution and delivery of this Assignment, as of the date set forth on
      page one of this Assignment.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

-3- 

IN WITNESS WHEREOF the parties hereto have executed this
Assignment as of the date first above written. 

BGC CONSULTANTS LIMITED 

 

	Per:	/s/ Bill Calsbeck 	 
	 	Authorized Signatory 	 

	EXECUTED by ROBERT BREGANI in the 	
      )
	
	presence of: 	)	
	  	)	
	/s/ Celene Crofton
    	)	
	Signature 	)	
	  	)	/s/ Robert Bregani 
	Print Name 	)	ROBERT BREGANI 
	  	)	
	Address 	)	
	  	)	
	  	)	
	  	)	
	Occupation 	)	

The Company hereby acknowledges and agrees to this Assignment
by the Assignor to the Assignee and agrees to adjust its financial accounts and
records to reflect such Assignment and its full effect. The Company further
acknowledges and agrees that the amounts assigned pursuant to this Agreement
will be subject to, and the Assignee will, have the benefit of all terms and
conditions of the Loan Agreement as if the Assignee was a party to the Loan
Agreement. 

GARMATEX HOLDINGS LTD. 

 

	Per: 	/s/
      Devon Loosdrecht 	 
	  	Authorized Signatory

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