(a)       "Acquisition Proposal" means any proposal or offer made by a third party (including a stated intention to make a proposal or offer) regarding a merger, amalgamation, statutory arrangement, share exchange, business combination, recapitalization, take-over bid, tender offer, sale or other disposition of 20% or more of the assets of the Target (on a consolidated basis) in a single transaction or a series of related transactions (or any lease, long-term supply agreement or other arrangement having the same economic effect as a sale or other disposition of 20% or more of the assets of the Target), reorganization, liquidation, winding-up, sale, issue or redemption of 20% or more of the total number of common shares or rights or interests therein or thereto or similar transactions involving the Target (other than the Transaction);

(b)       "Affiliate" has the meaning ascribed to it in the Securities Act (British Columbia), as amended;

(c)       "Arrangement" means the arrangement under Part 9, Division 5 of the BCBCA on the terms set forth in the Plan of Arrangement which is attached hereto as Schedule 1;

(d)       "Arrangement Agreement" or "Agreement" means this arrangement agreement and any amendment or variation hereto made in accordance with Article 9, including all Schedules hereto and any instrument or agreement supplementary or ancillary hereto;

(e)       "Arrangement Filings" means the filings, if any, that are required under the BCBCA to be made with the Registrar in order for the Arrangement to be effective;

(f)       "Arrangement Resolution" means the special resolution approving this Agreement and the Plan of Arrangement to be considered at the Target Meeting, to be substantially in the form and content of Schedule 5 hereto;

(g)       "Authorization" means an authorization, order, permit, approval, grant, licence, registration, consent, right, notification, condition, franchise, privilege, certificate, judgment, writ, injunction, award, determination, direction, decision, decree, bylaw, rule or regulation, whether or not the same have the force of Laws;

(h)       "BCBCA" means the Business Corporations Act (British Columbia), as now enacted and as amended, and the regulations thereto;

(i)       "Business Day" means a day that is not a Saturday, Sunday or civic or statutory holiday, in British Columbia;

(j)       "Canadian GAAP" means generally accepted accounting principles in effect from time to time in Canada, being those accounting principles set forth by the Institute of Chartered Accountants in Canada;

(k)       "Canadian Securities Laws" means the Securities Act and the equivalent legislation in the other Provinces and in the Territories of Canada, as amended from time to time, the rules, regulations and forms made or promulgated under any of such statutes, and the published policies, bulletins and notices of the regulatory authorities administering such statutes;

(l)       "Change in Recommendation" will have the meaning ascribed to it in Section 5.9(b)(iii);

(m)       "Circular" means the notice of the Target Meeting and accompanying management information circular, including all schedules thereto and documents incorporated by reference therein, to be sent to holders of Target Shares in connection with the Target Meeting and includes any amendments thereto;

(n)       "Claims" means claims of any nature or kind whatsoever against the Target Shares, Target Options or Target Warrants, as the case may be, including, without limitation, encumbrances, charges, liens, security interests, trust claims or any other claims in equity, at law or otherwise;

(o)       "Competition Act" means the Competition Act (Canada), as amended from time to time;

(p)       "Concessions" means any mining concession, claim, lease, licence, permit or other right to explore for, exploit, develop, mine or produce minerals or any interest therein which Purchaser owns or has a right or option to acquire or use;

(q)       "Concurrent Financing" means the Purchaser's proposed private placement equity financing of units of the Purchaser at a price of not less than $0.40 per unit on a post-Purchaser Subdivision basis ($5.00 per unit pre-Purchaser Subdivision basis), where each unit is comprised of not greater than one Purchaser Share and one-half of one Purchaser Warrant, and with each such whole Purchaser Warrant being exercisable into one Purchaser Share for a period of not greater than two years from the completion of the Transaction at a Purchaser Warrant exercise price of not less than US$0.60 per Purchaser Warrant share, resulting in gross proceeds of up to $5,000,000 to the Purchaser;

(r)       "Confidentiality Agreement" means the agreement entered into by the Parties dated April 8, 2016;

(s)       "Consideration" means the number of Purchaser Shares issuable by the Purchaser in respect of each Target Share pursuant to the Plan of Arrangement;

(t)       "Contracts" means all contracts, licences, leases, agreements, commitments, entitlements, engagements, warranties or guarantees to which a Person or any Subsidiary of the Person is a party or pursuant to which the Person or any Subsidiary of the Person is obligated to provide a benefit to, or is entitled to receive a benefit from, any other Person;

(u)       "Court" means the Supreme Court of British Columbia;

(v)       "Depositary" means Empire Stock Transfer Inc.;

(w)       "Dissenting Shareholder" means a holder of Dissenting Shares;

(x)       "Dissenting Shares" will have the meaning ascribed to it in Section 2.11;

(y)       "Effective Date" means the date upon which the Arrangement becomes effective as provided in the Plan of Arrangement;

(z)       "Effective Time" has the meaning ascribed thereto in the Plan of Arrangement;

(aa)       "Encumbrance" means any encumbrance including any mortgage, pledge, assignment, charge, lien, security interest, adverse interest in property, other third party interest or encumbrance of any kind whether contingent or absolute, and any agreement, option, right or privilege (whether by law, contract or otherwise) capable of becoming any of the foregoing;

(ab)       "Environmental Approvals" means all permits, certificates, licences, authorizations, consents, instructions, registrations, directions or approvals issued or required by Governmental Entities pursuant to Environmental Laws with respect to the operation of a Person or its Subsidiaries or its businesses, including the control or ownership of leased property or Real Property;

(ac)       "Environmental Laws" means all applicable Laws, including applicable civil or common law, relating to the protection or enhancement of the Environment and employee and public health and safety;

(ad)       "Exchange Ratio" means one Purchaser Share for each Target Share;

(ae)       "Final Order" means the order of the Court approving the Arrangement, as such order may be amended at any time before the Effective Date or, if appealed, then unless such appeal is withdrawn or denied, as affirmed or as amended on appeal;

(af)       "Governmental Entity" means (i) any international, multinational, national, federal, provincial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, board, bureau, ministry, agency or instrumentality, domestic or foreign, (ii) any subdivision or authority of any of the above, (iii) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing or (iv) any Stock Exchanges and the Securities Regulators, having or purporting to have jurisdiction in the relevant circumstances;

(ag)       "Hazardous Substance" means any chemical, material or substance, pollutant, contaminant, waste of any nature, hazardous substance, hazardous material, toxic substance, dangerous substance or dangerous good as defined, judicially interpreted or identified in any Environmental Law and includes any constituents or breakdown product related to such material, substance or good;

(ah)       "IFRS" means International Financial Reporting Standards;

(ai)       "Intellectual Property" means any licenses for or other rights to use, any inventions, patent applications, patents, trade-marks (both registered and unregistered), trade names, copyrights, trade secrets and other proprietary information;

(aj)       "Interim Order" means the interim order of the Court providing for, among other things, the calling and holding of the Target Meeting, as the same may be amended;

(ak)       "Investment Canada Act" means the Investment Canada Act (Canada), as amended from time to time;

(al)       "Laws" means all laws, statutes, codes, ordinances, decrees, rules, regulations, by-laws, statutory rules, published policies and guidelines, judicial or arbitral or administrative or ministerial or departmental or regulatory judgments, orders, decisions, rulings or awards, including general principles of common and civil law, and terms and conditions of any grant of approval, permission, authority or license of any Governmental Entity, statutory body or self-regulatory authority, 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 Person having jurisdiction over the Person or Persons or its or their business, undertaking, property or securities;

(am)       "Liens" means any hypothecs, mortgages, pledges, assignments, liens, charges, security interests, encumbrances and adverse rights or claims, other third person interest or encumbrance of any kind, whether contingent or absolute, and any agreement, option, right or privilege (whether by Law, contract or otherwise) capable of becoming any of the foregoing;

(an)       "Loan" has the meaning ascribed to it in Section 5.5;

(ao)       "Locked-up Securityholders" means those Target Shareholders and holders of Target Warrants, being all the directors and officers of the Target and certain of the largest shareholders of the Target (as well as certain holding companies thereof) and certain of the largest holders of Target Warrants, all as set forth in Schedule 4 hereto, who have entered into Voting Agreements with the Purchaser pursuant to which they have agreed, subject to the terms of such Voting Agreements, to vote their Target Shares and Target Warrants in favour of the Arrangement Resolution;

(ap)       "Material Adverse Effect" means, in respect of any Person, any change, effect, event or occurrence that either individually or in the aggregate with other such changes, effects, events or occurrences, is or would reasonably be expected to be material and adverse to the business, results of operations or assets, properties, capitalization, condition (financial or otherwise) or liabilities of that person and its subsidiaries, on a consolidated basis, except any change, effect, event or occurrence resulting from or relating to (i) the announcement of the execution of this Agreement or the transactions contemplated hereby, (ii) changes in general economic, securities, financial, banking or currency exchange markets, (iii) any change in US GAAP or IFRS, (iv) any natural disaster provided that it does not have a materially disproportionate affect on that Person relative to comparable companies, (v) changes affecting that Person's industry generally, provided that such changes do not have a materially disproportionate effect on that Person relative to comparable companies, (vi) generally applicable changes in applicable Laws, (vii) the commencement or continuation of any war, armed hostilities or acts of terrorism provided that it does not have a materially disproportionate affect on that Person relative to comparable companies or (viii) any decrease in the market price or any decline in the trading volume of that Person's common shares (it being understood that the causes underlying such change in market price or trading volume (other than those in items (i) to (vii) above) may be taken into account in determining whether a Material Adverse Effect has occurred);

(aq)       "Material Contract" in respect of the Target means:

in respect of the Purchaser, means a "material contract" within the meaning of such term under NI 51-102.

(ar)       "Material Fact" has the meaning ascribed thereto in the Securities Act;

(as)       "Misrepresentation" has the meaning set out in the Securities Act;

(at)       "NI 43-101" means National Instrument 43-101 - Standards of Disclosure for Mineral Projects;

(au)       "NI 51-102" means National Instrument 51-102 - Continuous Disclosure Obligations;

(av)       "ordinary course of business", "ordinary course of business consistent with past practice", or any similar reference, means, with respect to an action taken by a person, that such action is consistent with the past practices of such person and is taken in the ordinary course of the normal day-to-day business and operations of such person;

(aw)       "Parties" means the Purchaser and the Target and "Party" means any one of them;

(ax)       "Person" means any individual, sole proprietorship, partnership, unlimited liability company, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Entity, and a natural person in such person's capacity as trustee, executor, administrator or other legal representative and, when the context requires it, means either the Purchaser or the Target;

(ay)       "Plan of Arrangement" means the plan of arrangement as set forth in Schedule 1 to this Agreement as amended or supplemented from time to time;

(az)       "Purchaser" means Oaxaca Resources Corp., a company existing under the laws of the of the State of Nevada, U.S.A., together with, unless the context implies otherwise, all of the Purchaser Subsidiaries and Purchaser's Affiliates;

(ba)       "Purchaser Balance Sheet" means the balance sheet of Purchaser as at April 30, 2015 and 2014, forming part of the Purchaser Financial Statements;

(bb)       "Purchaser Board" means the board of directors of Purchaser;

(bc)       "Purchaser Disclosure Documents" means, collectively, all documents published or filed by the Purchaser with the SEC since June 20, 2014;

(bd)       "Purchaser Financial Statements" means the audited financial statements of the Purchaser, which comprise the Purchaser Balance Sheet and the statements of operations and cash flows for the years then ended as well as any subsequent unaudited interim financial statements of the Purchaser;

(be)       "Purchaser Shareholders" means holders of the Purchaser Shares;

(bf)       "Purchaser Shares" means the common shares with a par value of USD $0.001 per share in the capital of the Purchaser;

(bg)       "Purchaser Subdivision" means a subdivision of the Purchaser's authorized capital and outstanding Purchaser Shares on a basis of twelve and one-half (12.5) new Purchaser common shares for each one existing Purchaser Share;

(bh)       "Purchaser Subsidiaries" means Subsidiaries of the Purchaser as set out in the Purchaser Disclosure Documents;

(bi)       "Real Property" means all lands owned, purported to be owned, or leased by a Person and its Subsidiaries and all plants, buildings, structures, erections, improvements, appurtenances and fixtures (other than tenant's fixtures) situate on or forming part of such lands;

(bj)       "Registrar" means the Registrar of Companies under the BCBCA;

(bk)       "Regulation D" means Regulation D under the U.S. Securities Act;

(bl)       "Regulation S" means Regulation S under the U.S. Securities Act;

(bm)       "Regulatory Approval" means any approval, consent, waiver, permit, order or exemption from any Governmental Entity that is required or advisable to be obtained in order to permit the Arrangement to be effected;

(bn)       "Release" has the meaning prescribed in any Environmental Law and includes, without limitation, any release, spill, leak, pumping, pouring, emission, emptying, discharge, injection, escape, leaching, disposal, dumping, deposit, spraying, burial, abandonment, incineration, seepage, or placement;

(bo)       "Replacement Warrants" has the meaning ascribed to it in Section 2.16;

(bp)       "SEC" means the United States Securities and Exchange Commission;

(bq)       "Securities Act" means the Securities Act (British Columbia), as amended;

(br)       "Securities Laws" means, collectively, all applicable Canadian Securities Laws, U.S. Securities Laws, and any other applicable securities Laws;

(bs)       "Securities Regulators" means the British Columbia Securities Commission, the securities regulatory authorities in each of the other Provinces of Canada and the SEC;

(bt)       "SEDAR" means the System for Electronic Document Analysis and retrieval of the Canadian Securities Administrators;

(bu)       "Statutory Plan" means a statutory benefit plan which the Target or the Purchaser are required to participate in or comply with, including the Canada Pension Plan and plans administered pursuant to applicable health tax, workplace safety insurance and employment insurance legislation;

(bv)       "Stock Exchanges" means OTC Markets Group Inc.;

(bw)       "Subsidiary" means, with respect to a specified body corporate, any body corporate of which through share ownership or otherwise, the specified body corporate is entitled to elect a majority of the board of directors thereof (whether or not shares of any other class or classes will or might be entitled to vote upon the happening of any event or contingency) are at the time owned directly or indirectly by such specified body corporate and will include any body corporate, partnership, joint venture or other entity over which it exercises direction or control or which is in a like relation to a Subsidiary;

(bx)       "Superior Proposal" means a bona fide written Acquisition Proposal made by a third party with whom the Target and each of its officers and directors deals at arm's length to, directly or indirectly, acquire assets that individually or in the aggregate constitute more than 50% of the assets (on a consolidated basis) of the Target or more than 50% of the common shares of the Target, whether by way of merger, amalgamation, arrangement, share exchange, take-over bid, business combination, or otherwise, and that the Target Board determines in good faith after consultation with its financial advisors and outside legal counsel (i) is reasonably capable of being completed without undue delay, taking into account all legal, financial, regulatory and other aspects of such proposal and the party making such proposal, (ii) is fully financed or is reasonably capable of being fully financed, (iii) is not subject to a due diligence condition, (iv) is not subject, by virtue of law or the policies of any stock exchange, to the condition that the issue of shares by the acquiring party be approved by a vote of any of its securityholders, (v) that is offered or made to all shareholders in Canada and the United States of the Target on the same terms and (vi) would in the opinion of the Target Board acting in good faith if consummated in accordance with its terms (without assuming away the risk of non-completion), result in a transaction more favourable to the shareholders of the Target, from a financial point of view, than the terms of the Transaction;

(by)       "Target" means Garmatex Technologies, Inc., a company existing under the laws of the Province of British Columbia, Canada, and, where the context permits, a reference to the Target includes the Target Subsidiaries;

(bz)       "Target Balance Sheet" means the consolidated balance sheet of the Target as at December 31, 2015 and 2014, forming part of the Target Financial Statements;

(ca)       "Target Board" means the board of directors of the Target;

(cb)       "Target Circular" means the notice of the Target Meeting and accompanying management information circular, including all schedules, appendices and exhibits thereto, to be sent to the holders of the Target Shares and the Target Warrants in connection with the Target Meeting, as amended, supplemented or otherwise modified from time to time;

(cc)       "Target Consolidation" means a consolidation of the Target Shares on the basis of one new Target common share for each five existing Target Shares;

(cd)       "Target Disclosure Letter" means the disclosure letter executed by the Target and delivered to the Purchaser in connection with the execution of this Agreement;

(ce)       "Target Employees" means the employees of the Target;

(cf)       "Target Financial Statements" means the consolidated annual financial statements of the Target, which comprise the Target Balance Sheet and the consolidated statements of loss, comprehensive loss, and deficit, shareholders' equity, and cash flows for the years then ended.

(cg)       "Target Meeting" means the annual general and special meeting of Target Shareholders and holders of Target Warrants to be held to consider the Arrangement Resolution, including any adjournment or adjournments thereof;

(ch)       "Target Option" means an option that is outstanding prior to the Effective Date to acquire Target Shares pursuant to an option granted by the Target;

(ci)       "Target Securities" means, collectively, the Target Shares, the Target Options and the Target Warrants;

(cj)       "Target Securityholders" means Target Shareholders, holders of Target Options and holders of Target Warrants;

(ck)       "Target Shareholder Approval" has the meaning ascribed to such term in Section 2.4(d);

(cl)       "Target Shareholders" means the holders of Target Shares;

(cm)       "Target Shares" means the common shares without par value in the capital of the Target;

(cn)       "Target Subsidiaries" means, collectively, those subsidiaries of the Target listed in Schedule (E) of the Target Disclosure Letter;

(co)       "Target Warrants" means the warrants to purchase Target Shares as described in Schedule (B) of the Target Disclosure Letter;

(cp)       "Tax Act" means the Income Tax Act (Canada);

(cq)       "Taxes" means all taxes, duties, levies, imposts and charges however denominated, including any interest, penalties or other additions that may become payable in respect thereof, imposed by any Governmental Entity, including all income or profits taxes (including federal income taxes and provincial and state income taxes), capital taxes, payroll and employee and other withholding taxes, employment insurance, social insurance taxes (including Canada and Quebec Pension Plan payments), sales and use taxes, ad valorem taxes, goods and services and harmonized sales taxes, excise taxes, franchise taxes, gross receipts taxes, business license taxes, goods and services taxes, occupation taxes, real and personal property taxes, stamp taxes, environmental taxes, transfer taxes, workers' compensation, pension assessment and other obligations of the same or of a similar nature to any of the foregoing;

(cr)       "Tax Returns" includes, without limitation, all returns, reports, declarations, elections, notices, filings, information returns and statements in respect of Taxes;

(cs)       "Termination Date" means August 15, 2016, or such later date as may be mutually agreed to in writing by the Parties;

(ct)       "Termination Fee" has the meaning ascribed thereto in Section 10.4;

(cu)       "Transaction" means, collectively, the transactions contemplated herein and in the Plan of Arrangement as such may be amended from time to time;

(cv)       "Transaction Documents" means collectively, this Agreement, the Target Disclosure Letter, the Plan of Arrangement and any Schedules attached hereto and thereto and the Voting Agreements;

(cw)       "Transmittal Letter" means the letter of transmittal to be sent by the Target to holders of Target Shares for use in connection with the Arrangement;

(cx)       "U.S. Exchange Act" means the United States Securities Exchange Act of 1934, as amended;

(cy)       "U.S. Person" means a U.S. person as defined in Regulation S;

(cz)       "U.S. Securities Act" means the United States Securities Act of 1933, as amended;

(da)       "U.S. Securities Laws" means the "blue sky" or securities law of any state or territory of the United States or the District of Columbia, together with the U.S. Exchange Act and the U.S. Securities Act, and the rules and regulations of the SEC thereunder;

(db)       "U.S. Tax Code" means the United States Internal Revenue Code of 1986, as amended; and

(dc)       "Voting Agreements" means the voting agreements (including all amendments thereto) between the Purchaser and the Locked-up Securityholders.

(a)       the division of this Agreement and the Plan of Arrangement into Articles and Sections and the further division thereof and the insertion of headings and a table of contents are for convenience of reference only and will not affect the construction or interpretation of this Agreement or the Arrangement. Unless otherwise indicated, any reference in this Agreement and the Plan of Arrangement to an Article, Section or the symbol Section , or Schedule refers to the specified Article or Section of or Schedule to this Agreement;

(b)       the terms "Arrangement Agreement", "this Agreement", "hereof", "herein", "hereunder" and similar expressions refer to this Agreement and not to any particular section or other portion hereof and include any agreement or instrument supplementary or ancillary hereto and, unless otherwise indicated, a reference herein to a section is to the appropriate section of this Agreement;

(c)       words importing the singular number only will include the plural and vice versa, words importing the use of any gender will include all genders and words importing persons will include firms and corporations and vice versa;

(d)       if any date on which any action is required to be taken hereunder by any of the parties is not a Business Day, such action will be required to be taken on the next succeeding day which is a Business Day;

(e)       the word "including" means "including, without limiting the generality of the foregoing"; and

(f)       a reference to a statute is to that statute as now enacted or as the statute may from time to time be amended, re-enacted or replaced and includes any regulation, rule or policy made thereunder.

(a)       apply to the Court, as soon as reasonably practicable, in a manner acceptable to the Purchaser, acting reasonably, under Part 9, Division 5 of the BCBCA for the Interim Order, and thereafter proceed with and diligently pursue the Interim Order;

(b)       lawfully convene and hold the Target Meeting as soon as reasonable practicable after the receipt of the Interim Order, and in any event no later than June 15, 2016, for the purpose of approving the Arrangement Resolution, provided that the Purchaser has satisfied its obligations under Section 2.10(b). Except as otherwise provided in this Agreement, the Target will not adjourn or otherwise change the timing of the Target Meeting without the prior written consent of the Purchaser, such consent not to be unreasonably withheld;

(c)       subject to obtaining such shareholder approval as is required by the Interim Order, apply to the Court under Part 9, Division 5 of the BCBCA, as soon as reasonably practicable after the Target Meeting, for the Final Order approving the Arrangement, and thereafter proceed with and diligently pursue the obtaining of the Final Order;

(d)       subject to obtaining the Final Order, as soon as reasonably practicable thereafter, but subject to the satisfaction or waiver of the other conditions herein contained in favour of each party, deliver to the Registrar any Arrangement Filings and take all other steps or actions as may be required in connection with the Transaction to give effect to the Arrangement;

(e)       instruct counsel acting for it to bring the applications referred to in Section 2.2(a) and Section 2.2(c) in cooperation with counsel to the Purchaser. The Target shall not file any material with the Court in connection with the Arrangement or serve any such material, and shall not agree to modify or amend materials so filed or served except as expressly permitted hereby or with the Purchaser's prior written consent, acting reasonably; and

(f)       permit the Purchaser and its counsel to review and comment upon drafts of all materials to be filed by the Target with the Court in connection with the Transaction and provide counsel to the Purchaser on a timely basis with copies of any notice of appearance and evidence served on the Target or its counsel in respect of the application for the Final Order or any appeal therefrom and of any notice (written or oral) received by the Target indicating any intention to oppose the granting of the Final Order or to appeal the Final Order.

(a)       that Target Shareholders and the holders of Target Warrants will be the only classes of Persons to whom notice is to be provided in respect of the Arrangement and the Target Meeting and for the manner in which such notice is to be provided;

(b)       that the Target Meeting may be adjourned from time to time by management of the Target without the need for additional approval of the Court;

(c)       that the record date for Target Shareholders and holders of Target Warrants entitled to notice of and to vote at the Target Meeting will not change in respect of adjournments of the Target Meeting;

(d)       that the requisite approval for the Arrangement Resolution will be two-thirds of the votes cast on the Arrangement Resolution by each of Target Shareholders (voting together as a single class) and the holder of Target Warrants (voting together as a single class) present in person or represented by proxy at the Target Meeting and entitled to vote thereat (collectively, the "Target Shareholder Approval");

(e)       that, in all other respects, the terms, restrictions and conditions of the notice of articles and articles of the Target, including quorum requirements and all other matters, will apply in respect of the Target Meeting;

(f)       for the grant of the dissent rights referred to in Section 2.11; and

(g)       for the notice requirements with respect to the presentation of the application for the Final Order.

(a)     The Parties will cooperate in:

(b)       Each Party will furnish to the other all such information concerning it, its Affiliates and its shareholders as may be required to effect the actions described in Section 2.3 and Section 2.9 and the foregoing provisions of this Section 2.10, and each covenants that no information furnished by it in connection with such actions or otherwise in connection with the consummation of the Transaction will contain any untrue statement of a Material Fact or omit to state a Material Fact required to be stated or which is necessary in order to make any information so furnished not misleading in the light of the circumstances in which it is furnished or to be used.

(c)       The Parties will each promptly notify the other if at any time before the Effective Time it becomes aware that the Circular or an application for an order described in Section 2.2 or Section 2.4 or any application filed with a Governmental Entity contains any untrue statement of a Material Fact or omits to state a Material Fact required to be stated therein or which is necessary to make the statements contained therein not misleading in light of the circumstances in which they were made, or that otherwise requires an amendment or supplement to the Circular or such application. In any such event, the Parties will cooperate in the preparation of a supplement or amendment to the Circular or such other application, as required and as the case may be, and, if required, will cause the same to be distributed to the Target Shareholders and holders of Target Warrants and/or filed with the applicable Governmental Entities.

(d)       The Target will ensure that the Circular complies with all applicable Laws and, without limiting the generality of the foregoing, that the Circular does not contain any untrue statement of a Material Fact or omit to state a Material Fact required to be stated therein or necessary to make the statements contained therein not misleading in light of the circumstances in which they were made (other than with respect to any information relating to and provided by the Purchaser to the Target in writing). Without limiting the generality of the foregoing, the Target will ensure that the Circular provides Target Shareholders and holders of Target Warrants with information in sufficient detail to permit them to form a reasoned judgment concerning the matters to be placed before them at the Target Meeting and to allow the Purchaser to rely upon the exemption from registration provided under Rule 506(b) of Regulation D and/or section 4(a)(2) or Regulation S of the U.S. Securities Act with respect to the issuance of the Purchaser Shares and Replacement Warrants in exchange for the Target Shares and Target Warrants, as applicable, pursuant to the Transaction.

(a)       to authorize the Purchaser to consummate the Transaction on the terms set forth herein and in the Plan of Arrangement; and

(b)       to authorize the Purchaser to execute and deliver this Agreement.

(a)       determined that the Transaction is fair to the Target Shareholders and the holders of Target Warrants as a whole and is in the best interests of the Target;

(b)       resolved to recommend that the Target Shareholders and holders of Target Warrants vote in favour of the Arrangement Resolution;

(c)       resolved to authorize the Target to consummate the Transaction on the terms set forth herein and in the Plan of Arrangement; and

(d)       resolved to authorize the Target to execute and deliver this Agreement.

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE [for Warrants add: AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR APPLICABLE STATE SECURITIES LAWS.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT."

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE [for Warrants add: AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR APPLICABLE STATE SECURITIES LAWS.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.";

"THESE WARRANTS AND THE SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE WARRANTS AND THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."

(a)       it will continue to carry on the business and affairs of the Target in the usual and normal course, take all action and make all expenditures necessary to maintain all of the properties and assets owned and controlled by the Target in good standing and it will not, without prior consultation with and the consent of the Purchaser, such consent not to be unreasonably withheld, enter into new commitments of a capital expenditure nature;

(b)       it will not, except as provided for in this Agreement or as disclosed in the Target Disclosure Letter, without prior consultation with and the consent of the Purchaser, directly or indirectly do, agree to do, or permit to occur any of the following (i) amend its constating documents, (ii) declare, set aside or pay any dividend or other distribution or payment in respect of any of the Target Shares, (iii) issue, grant, sell or pledge or agree to issue, grant, sell or pledge any Target Securities (other than Target Shares issuable upon the exercise of currently outstanding Target Options or Target Warrants or issuable upon settlement or conversion of outstanding indebtedness in the Target), (iv) redeem, purchase or otherwise acquire any of the outstanding Target Securities, (v) split, combine or reclassify any of the Target Shares (other than the Target Consolidation), (vi) adopt resolutions or enter into any agreement providing for the amalgamation, merger, consolidation, reorganization, liquidation, dissolution or any other extraordinary transaction or adopt any plan of liquidation, (vii) reduce its stated capital, (viii) sell or otherwise dispose or encumber of any of the assets of the Target outside the ordinary course of business that individually or in the aggregate are material to the Target except under the Loan, (ix) amend, alter, enter into or terminate any employment or consulting agreement or alter the pay, benefits or other terms and conditions of employment or service of any employees or consultants other than with non-executive employees in the ordinary course, (x) make or commit to make any severance payments or termination payments to any person including, without limitation, consultants, directors, officers, employees or agents of the Target or (xi) enter into or amend any agreements, arrangements or transactions with any related party;

(c)       subject to the terms of the Confidentiality Agreement and applicable Laws, it will permit the Purchaser's officers, directors, employees, consultants and advisors, at all reasonable times, access to the books, records, reports and all other information relevant to the business, properties and affairs of the Target, including all reports, correspondence and other information provided by all of the Target's consultants. In addition, the Target will, in all material respects, conduct itself so as to keep the Purchaser fully informed as to the material decisions or actions required to be made or undertaken with respect to the operation of its business; provided that such disclosure is not otherwise prohibited by operation of applicable Laws or by reason of a confidentiality obligation owed to a third party for which a waiver could not be obtained;

(d)       subject to Section 5.9 and Section 5.10, it will publicly support the Transaction and recommend to the Target Shareholders and holders of Target Warrants that they vote in favour of the Arrangement at the Target Meeting;

(e)       notwithstanding the terms of the Confidentiality Agreement, it will permit the Purchaser' officers, directors, employees, consultants and advisors to solicit acceptance of the Arrangement from the Target Shareholders and holder of Target Warrants in accordance with applicable Laws;

(f)       the Target shall use its commercially reasonable efforts to conduct its affairs so that all of the representations and warranties of the Target contained herein shall be true and correct on and as of the Effective Date as if made on and as of such date; and

(g)       the Target shall continue to provide access to the Purchaser and its advisors for the purposes of conducting the Purchaser's due diligence investigations.

(a)       it will use its commercially reasonable efforts to satisfy all of the conditions precedent to the completion of the Transaction and to use its commercially reasonable efforts to apply for and obtain, and will cooperate with the Purchaser in applying for and obtaining, the consents, orders and approvals necessary for the Parties, respectively, to complete the Transaction;

(b)       subject to obtaining any required consents and except as prohibited by applicable Laws, it will promptly provide the Purchaser with any information in the possession or control of, and relating to, the Target and, in addition, subject to any confidentiality obligations, will provide any information specifically requested by the Purchaser or its counsel so that the Purchaser may complete its due diligence investigations of the Target;

(c)       it will complete the Target Consolidation prior to the Effective Time;

(d)       it will use its commercially reasonable efforts to cause all Target Options to be cancelled prior to the Effective Time; and

(e)       it will (i) take all commercially reasonable action to lawfully solicit proxies in favour of the Arrangement Resolution and (ii) not make a Change in Recommendation except in accordance with Section 5.9 and Section 5.10.

(a)       subject to obtaining any required consents and except as prohibited by applicable Laws, and subject to the Confidentiality Agreement, it will promptly provide the Target with any information in the possession or control of the Purchaser and relating to the Purchaser that is relevant to the Target's due diligence investigations of the Purchaser and, in addition, subject to any confidentiality obligations, will provide any information specifically requested by the Target or its counsel so that the Target may complete its due diligence investigations of the Purchaser;

(b)       it will use commercially reasonable efforts (i) to cause the Purchaser Shares to be issued to Target Shareholders pursuant to the terms of the Arrangement to be posted for trading on the OTC Pink operated by the OTC Markets Group Inc. and (ii) to cause the Purchaser Shares which the holders of Target Warrants are entitled to receive on exercise of Target Warrants, respectively, to be posted for trading on the OTC Pink;

(c)       the Purchaser will honour the Target Warrants outstanding on the Effective Date as set forth in the Plan of Arrangement which will continue in effect on the same terms and conditions (subject to the adjustments required after giving effect to the Target Consolidation and the Arrangement and including, without limitation, that such Target Warrants will be exercisable for Purchaser Shares). The Purchaser will take all corporate action necessary to reserve for issuance a sufficient number of Purchaser Shares for delivery upon the exercise of the Target Warrants to be honoured in accordance with this Section 5.4(c);

(d)       it will not, prior to the Effective Date, except as provided for in this Agreement, without prior consultation with and the consent of the Target, directly or indirectly do, agree to do, or permit to occur any of the following (i) amend its constating documents, (ii) declare, set aside or pay any dividend or other distribution or payment in respect of any of the Purchaser Shares, (iii) issue, grant, sell or pledge or agree to issue, grant, sell or pledge any securities of Purchaser (other than the Concurrent Financing), (iv) redeem, purchase or otherwise acquire any of the outstanding Purchaser Shares, (v) split, combine or reclassify any of the Purchaser Shares (other than the Purchaser Subdivision), (vi) reduce its stated capital, (vii) amend its accounting policies or adopt new accounting policies, in each case except as required in accordance with US GAAP, (viii) make or commit to make any severance payments or termination payments to any person and including, without limitation, consultants, directors, officers, employees or agents of Purchaser, or (ix) enter into or amend any agreements, arrangements or transactions with any related party;

(e)       complete the Purchaser Subdivision prior to the Effective Time; and

(f)       it will use commercially reasonable efforts to cause up to 1,320,000 pre-Purchaser Subdivision restricted common shares held by certain shareholders of Purchaser to be cancelled (the "Purchaser Founder Cancellation") on or prior to the Effective Time.

(a)       it will:

(b)       it will use commercially reasonable efforts to satisfy (or cause the satisfaction of) the conditions precedent to the obligations of the Parties set forth in Article 7 to the extent that such is within its control and to take, or cause to be taken, all other reasonable action and to do, or cause to be done, all other things reasonably necessary, proper or advisable under all applicable Laws to complete the Transaction, including using all of its commercially reasonable efforts to:

(c)       subject in the case of the Target to those actions it is permitted to do in compliance with Section 5.9 and Section 5.10, it will not take any action, or refrain from taking any action, which would reasonably be expected to significantly impede or delay the consummation of the Transaction;

(d)       it will vigorously defend or cause to be defended any Claim or other legal proceedings brought against it challenging the Transaction; and

(e)       it will use commercially reasonable efforts to carry out all actions necessary to ensure the availability of the exemption from the registration requirements of the U.S. Securities Act provided by Rule 506(b) of Regulation D and/or section 4(a)(2) or Regulation S thereunder.

Notwithstanding the foregoing and any other provisions of this Agreement, the Target Board may consider, participate in any discussions or negotiations with and provide information to, any person who has delivered a written Acquisition Proposal which was not solicited or encouraged by the Target after the date of this Agreement and did not otherwise result from a breach of this Section 5.9 by the Target and that the Target Board determines in good faith constitutes a Superior Proposal; provided, however, that if the Target provides confidential non-public information to such person, the Target obtains a confidentiality and standstill agreement from the person making such Acquisition Proposal that is substantively the same as the Confidentiality Agreement, and otherwise on terms no more favourable to such person than such Confidentiality Agreement; provided, however, that it will not preclude such person from making a Superior Proposal, and provided that the Target sends a copy of any such confidentiality agreement to the Purchaser promptly upon its execution and the Purchaser is provided with a list of the information provided to such person and is immediately provided with access to similar information to which such person was provided.

(c)       The Target will, and will cause the officers, directors, employees, consultants, representatives and agents of the Target and the Target Subsidiaries to, immediately terminate and cease any discussions or negotiations with any parties (other than the Purchaser) with respect to any proposal that constitutes, or may reasonably be expected to constitute, an Acquisition Proposal. The Target will (i) discontinue or not allow access to any of its confidential information to any third party and (ii) immediately request the return or destruction of all information provided to any third party that has entered into a confidentiality agreement with the Target relating to a potential Acquisition Proposal to the extent that such information has not previously been returned or destroyed, and will use all commercially reasonable efforts to ensure that such requests are honoured. The Target agrees not to (iii) release any third party from any confidentiality agreement relating to a potential Acquisition Proposal to which such third party is a party except to allow a Person to propose an Acquisition Proposal to the Target Board and (iv) release any third party from any non-solicitation or standstill agreement or provision to which such third party is a party. The Target also agrees not to amend, modify or waive any such confidentiality, non-solicitation or standstill agreement or provision and undertakes to enforce, or cause the Target Subsidiaries to enforce, such agreements and provisions.

(d)       From and after the date of this Agreement the Target will promptly (and in any event within 24 hours) notify the Purchaser, at first orally and then in writing, of any proposals, offers or written inquiries relating to or constituting an Acquisition Proposal, or any request for non-public information relating to the Target. Such notice will include a description of the terms and conditions of any proposal, inquiry or offer, the identity of the person making such proposal, inquiry or offer and provide such other details of the proposal, inquiry or offer as the Purchaser may reasonably request. The Target will keep the Purchaser fully informed on a prompt basis of the status, including any change to the material terms, of any such inquiry, proposal or offer.

(a)       If the Target has complied with Section 5.9 with respect thereto, the Target may accept, approve, recommend or enter into any agreement, understanding or arrangement in respect of an Acquisition Proposal which the Target Board has determined to be a Superior Proposal (other than a confidentiality agreement, the execution of which will not be subject to the conditions of this Section 5.10) received before the date of approval of the Transaction by its shareholders and terminate this Agreement if, and only if:

(b)       During the five Business Day period referred to in Section 5.10(a)(iv), the Target agrees that the Purchaser will have the right, but not the obligation, to offer in writing to amend the terms of this Agreement, which offer must be received by the Target before 5:00 p.m. (Vancouver time) on the fifth Business Day of such period in order for such offer to comply with the requirements of this Section 5.10(b). The Target Board will review any written proposal by the Purchaser to amend the terms of this Agreement in good faith in order to determine, in its discretion in the exercise of its fiduciary duties, whether the amended proposal would, upon acceptance by the Target, be at least equivalent to the Superior Proposal. If the Target Board so determines, it will enter into an amended agreement with the Purchaser reflecting the amended proposal. If the Target Board does not so determine, the Target may accept, approve, recommend or enter into an agreement, understanding or arrangement in respect of such Superior Proposal, subject to compliance with Section 10.4 hereof.

(c)       Each Party also acknowledges and agrees that each successive material modification of any Acquisition Proposal will constitute a new Acquisition Proposal for the purposes of the requirement under clause (iv) of Section 5.10(a) and will initiate an additional five Business Day notice period.

(a)       the Interim Order will have been granted in form and substance satisfactory to the Parties, acting reasonably, and will not have been set aside or modified in a manner unacceptable to the Parties, acting reasonably, on appeal or otherwise;

(b)       the Arrangement Resolution will have been passed at the Target Meeting in accordance with the Interim Order;

(c)       the Final Order will have been granted in form and substance satisfactory to the Parties, acting reasonably, and will not have been set aside or modified in a manner unacceptable to the Parties, acting reasonably, on appeal or otherwise;

(d)       the Effective Date will occur before the Termination Date;

(e)       there shall not exist any prohibition at applicable Laws, including a cease trade order, injunction or other prohibition or order at Law or under applicable legislation, against the Purchaser or the Target which shall prevent the consummation of the Arrangement;

(f)       all required material consents, waivers, permits, orders and approvals of any Governmental Entity or other Persons and the expiry of any waiting periods, in connection with, or required to permit, the consummation of the Transaction, will have been obtained or received on terms that will not have a Material Adverse Effect on the Purchaser taking into effect the Transaction, and reasonably satisfactory evidence thereof will have been delivered to each Person;

(g)       the distribution of the Purchaser Shares and Replacement Warrants in Canada pursuant to the Arrangement, and the distribution of the Purchaser Shares upon exercise of the Replacement Warrants are exempt from, or otherwise not subject to, prospectus requirements of applicable Canadian Securities Laws and shall not be subject to resale restrictions under applicable Canadian Securities Laws (other than as applicable to control persons or pursuant to section 2.6 of National Instrument 45-102); provided, however, that all Purchaser Shares and Replacement Warrants to be distributed to Target Securityholders as well as any Purchaser Shares to be distributed pursuant to the exercise of the Replacement Warrants will be "restricted securities" as defined in Rule 144(a)(3) under the U.S. Securities Act;

(h)       the Parties shall have received from any Target Securityholder that is resident in the United States, is a "U.S. person" as defined in Regulation S under the U.S. Securities Act or who will be receiving Purchaser Shares and/or Replacement Warrants for the account or benefit of a U.S. Person or a person in the United States, a U.S. Accredited Investor Certificate as set forth in Schedule 6 hereto, or else the Parties shall ensure that any and all such Target Securityholders shall receive the required information pursuant to Rule 502(b)(2) of Regulation D promulgated under the U.S. Securities Act;

(i)       the Concurrent Financing shall have been completed and the net Concurrent Financing proceeds shall have been advanced as a Loan to the Target as requested by the Target;

(j)       the Target shall have cancelled all outstanding Target Options on or prior to the Effective Time;

(k)       the Purchaser Founder Cancellation shall have occurred on or prior to the Effective Time; and

(l)       this Agreement will not have been terminated pursuant to Article 10.

(a)       all covenants of the Target under this Agreement to be performed on or before the Effective Date will have been duly performed by the Target in all material respects. Each of the Locked-up Securityholders shall have complied with their respective Voting Agreements;

(b)       all representations and warranties of the Target will be true and correct in all material respects as of the Effective Date, as if made on and as of such date (except to the extent such representations and warranties speak as of an earlier date, in which event such representations and warranties will be true and correct or true and correct in all material respects, as the case may be, as of such earlier date, or except as affected by transactions contemplated or permitted by this Agreement), without giving effect to any materiality or similar qualifications contained in or incorporated directly or indirectly in such representations and warranties, and the Purchaser will have received a certificate of the Target addressed to the Purchaser and dated on such date, signed on behalf of the Target by one senior executive officer of the Target in his capacity as such and without personal liability, confirming the same;

(c)       since the date of this Agreement there will not have been any change, effect, event, occurrence, development or state of facts that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect on the Target (excluding any change, effect, event, occurrence or state of facts that is specifically referred to in the Target Disclosure Letter);

(d)       the Purchaser will be satisfied with the results of its due diligence investigations of the Target and the Target's business and operations;

(e)       the Target Board shall not have made a Change in Recommendation; and

(f)       the Purchaser will have received all such other documents and certificates as may reasonably be required by the Purchaser in connection with completion of the Arrangement.

(a)       all covenants of the Purchaser under this Agreement to be performed on or before the Effective Date will have been duly performed by the Purchaser in all material respects;

(b)       all representations and warranties of the Purchaser will be true and correct in all material respects as of the Effective Date, as if made on and as of such date (except to the extent such representations and warranties speak as of an earlier date, in which event such representations and warranties will be true and correct or true and correct in all material respects, as the case may be, as of such earlier date, or except as affected by transactions contemplated or permitted by this Agreement), without giving effect to any materiality or similar qualifications contained in or incorporated directly or indirectly in such representations and warranties, and the Target will have received a certificate of the Purchaser addressed to the Target and dated on such date, signed on behalf of the Purchaser by one senior executive officer of the Purchaser in his capacity as such and without personal liability, confirming the same;

(c)       since the date of this Agreement there will not have been any change, effect, event, occurrence, development or state of facts that, individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect on the Purchaser (excluding any change, effect, event occurrence or state of facts that is specifically referred to in the Purchaser Disclosure Documents);

(d)       the Target will have received a waiver or releases executed in favour of the Target, the Target Subsidiaries, the Purchaser and the Purchaser Subsidiaries from and against all claims in respect of any accrued fees or accrued liabilities from each of:

(e)       the number of directors on the Purchaser Board shall have been set to five as of the Effective Date, with nominees of the Target to be appointed to the Purchaser Board to fill the four vacancies created by the increase in the size of the Purchaser Board from one to five;

(f)       the Purchaser shall not have any stock options or other derivative securities outstanding at the Effective Time;

(g)       the Purchaser shall have maintained having its shares of common stock posted for trading on the OTC Pink maintained by the OTC Markets Group Inc.; and

(h)       the Target will have received all such other documents and certificates as may reasonably be required by the Target in connection with completion of the Arrangement.

(a)       cause any of the representations or warranties of such Person contained herein to be untrue or inaccurate in any material respect as of the date hereof or at the Effective Date; or

(b)       result in the failure of such Person to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it under this Agreement before the Effective Date.

(a)       From the date hereof until the earlier of the Effective Time and the termination of this Agreement, subject to compliance with applicable Laws and the terms of any existing Contracts, the Target shall cause its officers, directors, employees, independent auditors, accounting advisers and agents to, afford to the Purchaser and to the officers, employees, agents and representatives of the Purchaser such access as the Purchaser may reasonably require at all reasonable times, including for the purpose of facilitating integration business planning, to their officers, employees, agents, properties, books, records and Contracts, and shall furnish the Purchaser with all data and information as the Purchaser may reasonably request.

(b)       From the date hereof until the earlier of the Effective Time and the termination of this Agreement, subject to compliance with applicable Laws and the terms of any existing Contracts, the Purchaser shall cause its officers, directors, employees, independent auditors, accounting advisers and agents to, afford to the Target and to the officers, employees, agents and representatives of the Target such access as the Target may reasonably require at all reasonable times, including for the purpose of facilitating integration business planning, to their officers, employees, agents, properties, books, records and Contracts, and shall furnish the Target with all data and information as the Target may reasonably request.

(a)       change the time for performance of any of the obligations or acts of the Parties;

(b)       waive any inaccuracies or modify any representation or warranty contained herein or in any document delivered pursuant hereto;

(c)       waive compliance with or modify any of the covenants herein contained and waive or modify performance of any of the obligations of the parties; and

(d)       waive compliance with or modify any conditions precedent herein contained;

(a)       by mutual written consent of the Parties;

(b)       by either the Target or the Purchaser pursuant to the exercise of their rights set forth in Section 7.1 hereof, provided that the provisions of Section 7.4 have been complied with;

(c)       by the Purchaser pursuant to the exercise of its rights set forth in Section 7.2, provided the provisions of Section 7.4 have been complied with;

(d)       by the Target pursuant to the exercise of its rights set forth in Section 7.3, provided the provisions of Section 7.4 have been complied with;

(e)       by either Party if the Target Shareholders and holders of Target Warrants fail to approve the Arrangement Resolution at the Target Meeting;

(f)       by the Target, following receipt of, and in order to enter into a definitive written agreement with respect to a Superior Proposal, but only in compliance with Section 5.10 and Section 10.4;

(g)       by the Purchaser, (i) if the Target Board has made a Change in Recommendation or (ii) the Target will have entered into a binding agreement with respect to a Superior Proposal, in each case only in compliance with Section 5.10 and Section 10.4;

(h)       by the Purchaser, if, subject to Section 7.4, a failure to perform, in all material respects, any covenant or agreement on the part of the Target set forth in this Agreement that would cause the conditions set forth in Section 7.1 or Section 7.2 not to be satisfied, and such conditions are incapable of being satisfied by the Termination Date; provided that the Purchaser is not then in breach of this Agreement so as to cause any of the conditions set forth in Section 7.1 or Section 7.3 not to be satisfied; or

(i)       by the Target, if, subject to Section 7.4, a failure to perform, in all material respects, any covenant or agreement on the part of the Purchaser set forth in this Agreement that would cause the conditions set forth in Section 7.1 or Section 7.3 not to be satisfied, and such conditions are incapable of being satisfied by the Termination Date; provided that the Target is not then in breach of this Agreement so as to cause any of the conditions set forth in Section 7.1 or Section 7.2 not to be satisfied.

(a)       the provisions of Section 10.3 and Section 10.4 (Expenses and Termination Fees), and this Section 10.2 will remain in full force and effect and will survive any such termination;

(b)       neither Party will be released or relieved from any liability arising from their breach of any of their representations, warranties, covenants, or agreements as set forth in the Transaction Documents save and except as provided therein; and

(c)       the covenant of the Parties with respect to confidentiality set forth in the Confidentiality Agreement will survive the termination of this Agreement or completion of the Transaction and continue in full force and effect for a period of two years thereafter.

(a)       Section 10.1(e), in circumstances where a bona fide Acquisition Proposal, or the intention to enter a bona fide Acquisition Proposal with respect to the Target, has been publicly announced before the termination of this Agreement and not withdrawn, and within 12 months of the date of such termination:

(b)       Section 10.1(f); or

(c)       Section 10.1(g);

(a)       if to Target:

(b)       if to Purchaser:

(a)       "Arrangement" means the arrangement under Part 9, Division 5 of the BCBCA, as described herein;

(b)       "Arrangement Agreement" means the agreement made as of April 8, 2016 between the Purchaser and the Target, including all schedules annexed hereto, together with the Target Disclosure Letter, as the same may be amended, supplemented or otherwise modified from time to time in accordance with the terms thereof;

(c)       "Arrangement Resolution" means the special resolution of the Target Shareholders and the holders of Target Warrants approving the Plan of Arrangement which is to be considered at the Target Meeting and will be substantially in the form of Schedule 5 to the Arrangement Agreement;

(d)       "BCBCA" means the Business Corporations Act (British Columbia) and the regulations made thereunder, as now in effect and as they may be promulgated or amended from time to time;

(e)       "Business Day" means any day, other than a Saturday, a Sunday or a statutory or civic holiday in Vancouver, British Columbia;

(f)       "Court" means the Supreme Court of British Columbia;

(g)       "Depositary" means Empire Stock Transfer Inc.;

(h)       "Dissent Procedures" has the meaning ascribed thereto in Section 5.1;

(i)       "Dissent Rights" means the rights of dissent exercisable by the Target Shareholders in respect of the Arrangement described in Article 5 hereto;

(j)       "Dissenter" means a Target Shareholder who has duly exercised a Dissent Right and who is ultimately entitled to be paid the fair value of the Target Shares held by such Target Shareholder;

(k)       "Dissenting Shares" has the meaning ascribed thereto in Section 5.2;

(l)       "Effective Date" means the effective date of the Arrangement, being the second business day after the date upon which all conditions precedent (excluding conditions that, by their terms, cannot be satisfied until the Effective Date) to the completion of the Arrangement as set out in Article 7 of the Arrangement Agreement have been satisfied or waived in accordance with the Arrangement Agreement, or such other date as may be agreed to by the Parties, and the Parties will execute a certificate confirming the Effective Date, not to be unreasonably withheld;

(m)       "Effective Time" means 12:01 a.m. (Vancouver time) on the Effective Date, or such other time as may be agreed between the Parties;

(n)       "Exchange Ratio" means one Purchaser Share in exchange for each Target Share;

(o)       "Final Order" means the final order of the Court, after a hearing upon the fairness of the terms and conditions of the Arrangement, approving the Arrangement, in a form acceptable to the Parties, each acting reasonably, as such order may be amended by the Court at any time prior to the Effective Date or, if appealed, then, unless such appeal is withdrawn or denied, as affirmed or as amended on appeal;

(p)       "Interim Order" means the interim order of the Court contemplated by Section 2.2 of the Arrangement Agreement and made pursuant to Section 291 of the BCBCA, in a form acceptable to the Parties, each acting reasonably, providing for, among other things, the calling and holding of the Target Meeting, as the same may be amended by the Court;

(q)       "Parties" means the Purchaser and the Target and "Party" means any one of them;

(r)       "Person" means any individual, sole proprietorship, partnership, unlimited liability company, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, Governmental Entity, and a natural person in such person's capacity as trustee, executor, administrator or other legal representative and, when the context requires it, means either the Purchaser or the Target;

(s)       "Plan of Arrangement" means this Plan of Arrangement and any amendments or variations thereto made in accordance with this Plan of Arrangement or upon the direction of the Court in the Final Order with the consent of the Parties, each acting reasonably;

(t)       "Purchaser" means Oaxaca Resources Corp., a company incorporated under the laws of the State of Nevada, U.S.A.;

(u)       "Purchaser Shares" means the common shares with a par value of USD $0.001 per share in the capital of Purchaser;

(v)       "Registrar" means the Registrar of Companies appointed pursuant to Section 400 of the BCBCA;

(w)       "Replacement Warrant" has the meaning specified in Section 3.1(c) of this Plan of Arrangement;

(x)       "Subsidiary" has the meaning given such term in the Arrangement Agreement;

(y)       "Target" means Garmatex Technologies, Inc., a company incorporated under the laws of the Province of British Columbia, Canada;

(z)       "Target Meeting" means the annual general and special meeting of Target Shareholders, voting as a single class, and holders of Target Warrants, voting as a single class, including any adjournment or postponement thereof, to be called and held in accordance with the Interim Order to consider the Arrangement Resolution;

(aa)       "Target Securityholders" means Target Shareholders and holders of Target Warrants;

(ab)       "Target Shareholders" means the holders from time to time of Target Shares and Target Shareholder means any one of them;

(ac)       "Target Shares" means the common shares in the authorized share capital of the Target;

(ad)       "Target Warrants" means the warrants to purchase Target Shares as described in Schedule (B) of the Target Disclosure Letter;

(ae)       "Tax Act" means the Income Tax Act (Canada) and the regulations made thereunder, as now in effect and as they may be promulgated or amended from time to time; and

(af)       "Transmittal Letter" means the letter of transmittal to be sent by the Target to Target Shareholders for use in connection with the Arrangement.

(a)       the division of this Plan of Arrangement into Articles and Sections and the further division thereof into subsections and the insertion of headings are for convenience of reference only and will not affect the construction or interpretation of this Plan of Arrangement. Unless otherwise indicated, any reference in this Plan of Arrangement to an Article, Section or subsection refers to the specified Article, Section or subsection to this Plan of Arrangement;

(b)       the terms "hereof", "herein", "hereunder" and similar expressions refer to this Plan of Arrangement and not to any particular section or other portion hereof and include any agreement or instrument supplementary or ancillary hereto and, unless otherwise indicated, a reference herein to a Section is to the appropriate Section of this Plan of Arrangement;

(c)       words importing the singular number only will include the plural and vice versa, words importing the use of any gender will include all genders and words importing persons will include firms and corporations and vice versa;

(d)       if any date on which any action is required to be taken hereunder by any of the parties is not a Business Day, such action will be required to be taken on the next succeeding day which is a Business Day;

(e)       the word "including" means "including, without limiting the generality of the foregoing";

(f)       a reference to a statute is to that statute as now enacted or as the statute may from time to time be amended, re-enacted or replaced and includes any regulation, rule or policy made thereunder; and

(g)       all references to cash or currency in this Plan of Arrangement are to Canadian dollars unless otherwise indicated.

(a)       immediately thereafter, each issued Target Share outstanding immediately prior to the Effective Time held by a Target Shareholder in respect of which Dissent Rights have been validly exercised will be deemed to have been transferred without any further act or formality to the Purchaser free and clear of any liens, claims and encumbrances, and:

(b)       immediately thereafter, each issued and outstanding Target Share (other than any Target Share in respect of which the Target Shareholder has validly exercised his, her or its Dissent Right) will be transferred to, and acquired by the Purchaser, without any act or formality on the part of the holder of such Target Share or the Purchaser, free and clear of all liens, claims and encumbrances, in exchange for one Purchaser Share, and the name of each such Target Shareholder will be removed from the register of holders of Target Shares and added to the register of holders of Purchaser Shares, and the Purchaser will be recorded as the registered holder of such Target Shares so exchanged and will be deemed to be the legal and beneficial owner thereof; and

(c)       immediately thereafter, each outstanding Target Warrant will without any further action on the part of any holder of a Target Warrant, be exchanged for a warrant (each, a "Replacement Warrant") to purchase one Purchaser Share. Each such Replacement Warrant shall provide for an exercise price per Purchaser Share equal to the exercise price per Target Share otherwise applicable to such Target Warrant immediately prior to the Effective Time. The term, exercisability and all other terms and conditions of the Target Warrant in effect immediately prior to the Effective Time shall govern the Replacement Warrant for which the Target Warrant is so exchanged;

(a)       holders of Target Warrants, in any event; nor

(b)       Target Shareholders who vote, or who have instructed a proxyholder to vote, in favour of the Arrangement Resolution;

(a)       are ultimately entitled to be paid fair value for their Dissenting Shares will be deemed to have transferred their Dissenting Shares to the Target for cancellation immediately before the Effective Date; or

(b)       for any reason are ultimately not entitled to be paid for their Dissenting Shares, will be deemed to have participated in the Arrangement on the same basis as a non-dissenting Target Shareholder and will receive Purchaser Shares on the same basis as every other non-dissenting Target Shareholder;

(a)       The Target will be a wholly-owned Subsidiary of the Purchaser;

(b)       the rights of creditors against the property and interests of the Target will be unimpaired by the Arrangement; and

(c)       Target Shareholders, other than Dissenters, will hold Purchaser Shares in replacement for their Target Shares, as provided by the Plan of Arrangement.

(a)       Organization: The Target and each of the Target Subsidiaries (other than as set out in Schedule (E) of the Target Disclosure Letter) is a corporation duly incorporated or amalgamated or an entity duly created and validly existing under all applicable Laws of its jurisdiction of incorporation, continuance or creation and has all necessary corporate or other power, authority and capacity to own its property and assets as now owned and to carry on its business as it is now being conducted. The Target and each of its subsidiaries (i) has all licenses, permits, certificates, orders and other authorizations of or from any Governmental Entity necessary to conduct its business substantially as now conducted and (ii) is duly registered or otherwise authorized and qualified to do business and is in good standing in each jurisdiction in which the character of its properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such qualification necessary, except where the failure to be so registered or in good standing would not reasonably be expected to have a Material Adverse Effect.

(b)       Capitalization: The authorized share capital of the Target consists of unlimited number of Target Shares. The number of issued and outstanding Target Shares, Target Options and Target Warrants as of the close of business on April 8, 2016 is set forth in Schedule (B) of the Target Disclosure Letter. Other than the Target Options and Target Warrants, there are no options, warrants, conversion privileges or other rights, shareholder rights plans, agreements, arrangements or commitments (pre-emptive, contingent or otherwise) of any character whatsoever requiring or which may require the issuance, sale or transfer by the Target of any securities of the Target (including Target Shares), or any securities or obligations convertible into, or exchangeable or exercisable for, or otherwise evidencing a right or obligation to acquire, any securities of the Target (including Target Shares). All outstanding Target Shares have been duly authorized and validly issued, are fully paid and non-assessable, and all Target Shares issuable upon the exercise of rights under the Target Options and Target Warrants in accordance with their respective terms have been duly authorized and, upon issuance, will be validly issued as fully paid and non-assessable, and are not and will not be subject to, or issued in violation of, any pre-emptive rights. All securities of the Target (including the Target Shares, the Target Options and the Target Warrants) have been issued in compliance with all applicable Laws and Securities Laws. There are no securities of the Target outstanding which have the right to vote generally (or, other than the Target Options and the Target Warrants, are convertible into, or exchangeable or exercisable for securities having the right to vote generally) with the Target Shareholders on any matter. There are no outstanding contractual or other obligations of the Target or any of the Target Subsidiaries to repurchase, redeem or otherwise acquire any of its securities or with respect to the voting or disposing of any of its outstanding securities. There are no outstanding bonds, debentures or other evidences of indebtedness of the Target having the right to vote with the holders of the outstanding Target Shares on any matters.

(c)       Authority: The Target has the requisite corporate power, authority and capacity to enter into this Agreement and all other agreements and instruments to be executed by the Target as contemplated by this Agreement and to perform its obligations hereunder and under such other agreements and instruments. The execution and delivery of this Agreement by the Target and the performance by the Target and of its obligations under this Agreement have been duly authorized by the Target Board and no other corporate proceedings on the part of the Target or any of the Target Subsidiaries is necessary to authorize the execution and delivery of this Agreement or the performance by the Target and its obligations under this Agreement or the Arrangement pursuant to the Plan of Arrangement. This Agreement has been duly executed and delivered by the Target and constitutes a legal, valid and binding obligation of the Target, enforceable against the Target in accordance with its terms, subject to the qualification that such enforceability may be limited by bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting rights of creditors and that equitable remedies, including specific performance, are discretionary and may not be ordered.

(d)       No Consent: No consent, approval, order or Authorization of, or declaration or filing with, any Governmental Entity or other Person is required to be obtained by the Target or any of the Target Subsidiaries in connection with the execution and delivery of this Agreement or the consummation by the Target of the transactions contemplated hereby other than:

(e)       Target Subsidiaries: The only Subsidiaries of the Target are the Target Subsidiaries as set out in Schedule (E) of the Target Disclosure Letter and the Target does not own a direct or indirect voting or equity interest in any Person that is not one of the Target Subsidiaries and has no agreement or other commitment to acquire such interest. All of the outstanding shares of the Target Subsidiaries are owned, directly or indirectly, by the Target. Except pursuant to restrictions on transfer contained in the Articles or by-laws (or their equivalent) of the applicable Subsidiary of the Target and subject to security provided to creditors of the Target, the outstanding shares of the Target Subsidiaries are owned free and clear of all Encumbrances.

(f)       No Violation: Other than in respect of certain executive services agreements or other agreements described in Schedule (F) of the Target Disclosure Letter, none of the authorization, execution and delivery of this Agreement by the Target, the completion of the transactions contemplated by this Agreement or the Plan of Arrangement, or compliance by the Target with any of the provisions hereof or thereof will (1) violate, conflict with, or result (with or without notice or the passage of time) in a violation or breach of any provision of, or require, except in respect of any consent, approval or notice under, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) or result in a right of termination or acceleration under, or result in the creation of any Lien upon, any of the properties or assets of the Target, or cause any indebtedness to come due before its stated maturity or cause any credit commitment to cease to be available or cause any payment or other obligation to be imposed on the Target, under any of the terms, conditions or provisions of (A) their respective articles, charters or by-laws or other comparable organizational documents or (B) any note, bond, mortgage, indenture, loan agreement, deed of trust, Lien, license, permit, or other Contract, (2) result (with or without notice or the passage of time) in a violation or breach of or constitute a default under any provisions of any Laws applicable to the Target or any of their respective properties or assets or (3) cause the suspension or revocation of any Permit currently in effect in respect of the Target (except, in the case of each of clauses (1) and (2) above, for such violations, conflicts, breaches, defaults, terminations, accelerations or creations of Liens which, or any consents, approvals or notices which if not given or received, would not, individually or in the aggregate, reasonably be expected to have any Material Adverse Effect on Target). The authorization of this Agreement, the execution and delivery by the Target of this Agreement, the performance by the Target of its obligations under this Agreement and the consummation by Target of the Arrangement, will not (x) give rise to any rights of first refusal or trigger any change in control provisions or any restrictions or limitation under any such note, bond, mortgage, indenture, contract, license, franchise or Permit, or result in the imposition of any Encumbrance, charge or Lien upon any of the Target's assets, (y) result in or accelerate the time for payment or vesting of, or increase the amount of any severance, unemployment compensation, "golden parachute", bonus, termination payments or otherwise, becoming due to any director or officer of the Target or any of the Target Subsidiaries or increase any benefits otherwise payable under any pension or benefits plan of the Target or any of the Target Subsidiaries or result in the acceleration of the time of payment or vesting of any such benefits or (z) result in the imposition of any Liens upon any assets of the Target.

(g)       Company Authorizations: Except as set out in Schedule (G) of the Target Disclosure Letter, the Target and the Target Subsidiaries have obtained all Authorizations necessary for the ownership, operation, development, maintenance, or use of the material assets of the Target or the Target Subsidiaries or otherwise in connection with the material business or operations of the Target or the Target Subsidiaries and such Authorizations are in full force and effect. The Target and the Target Subsidiaries have fully complied with and are in compliance with all Authorizations, except, in each case, for such non-compliance which, individually or in the aggregate, would not have a Material Adverse Effect on the Target. There is no action, investigation or proceeding pending or, to the knowledge of the Target, threatened regarding any of the Authorizations. None of the Target and the Target Subsidiaries has received any notice, whether written or oral, of revocation or non-renewal of any such Authorizations, or of any intention of any Person to revoke or refuse to renew any of such Authorizations, except in each case, for revocations or non-renewals which, individually or in the aggregate, would not have a Material Adverse Effect on the Target and all such Authorizations continue to be effective in order for the Target and the Target Subsidiaries to continue to conduct their business as they are currently being conducted. No Person other than the Target or any of the Target Subsidiaries owns or has any proprietary, financial or other interest (direct or indirect) in any of the Authorizations.

(h)       Financial Statements and Information: The Target Financial Statements were prepared in accordance with generally accepted accounting principles in Canada consistently applied, and fairly represent, in all material respects, the consolidated financial condition of the Target at the respective dates indicated and the results of operations of the Target (on a consolidated basis) for the periods covered.

(i)       Since December 31, 2015, neither the Target nor any of the Target Subsidiaries nor, to the Target's knowledge, any director, officer, employee, auditor, accountant or representative of the Target or any of the Target Subsidiaries, has received or otherwise had or obtained knowledge of any complaint, allegation, assertion, or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of the Target or any of the Target Subsidiaries or their internal accounting controls, including any complaint, allegation, assertion, or claim that the Target or any of the Target Subsidiaries has engaged in questionable accounting or auditing practices, which has not been resolved to the satisfaction of the Target Board.

(j)       Employment Agreements:

(k)       Books and Records: The financial books, records and accounts of Target in all material respects (i) have been maintained in accordance with Canadian GAAP / IFRS, (ii) are stated in reasonable detail and accurately and fairly reflect the material transactions and dispositions of the assets of the Target and (iii) accurately and fairly reflect the basis for the Target Financial Statements. The corporate records and minute books for the Target have been maintained in accordance with all applicable Laws and contain complete and accurate minutes of all meetings and resolutions of the directors and shareholders of the Target held and/or passed, as applicable, since their incorporation or amalgamation, as the case may be.

(l)       No Undisclosed Liabilities: Other than as disclosed in Schedule (L) of the Target Disclosure Letter, the Target has no outstanding indebtedness or liabilities and is not party to or bound by any material suretyship, guarantee, indemnification or assumption agreement, or endorsement of, or any other similar commitment with respect to the obligations, liabilities or indebtedness of any person, other than those specifically identified in the Target Financial Statements or, to the extent disclosed in the Target Disclosure Letter, incurred in the ordinary course of business since the date of the most recent financial statements of the Target.

(m)       Absence of Changes: Since December 31, 2015, except as disclosed in Schedule (M) of the Target Disclosure Letter:

(n)       Material Contracts: Schedule (N) of the Target Disclosure Letter includes a complete and accurate list of all Material Contracts to which the Target or any of the Target Subsidiaries is a party. All Material Contracts are in full force and effect, and the Target and any of the Target Subsidiaries are entitled to all rights and benefits thereunder in accordance with the terms thereof. The Target has made available to the Purchaser true and complete copies of all Material Contracts. All of the Material Contracts are valid and binding obligations of the Target or a Target Subsidiary, as applicable, enforceable in accordance with their respective terms, except as may be limited by bankruptcy, insolvency and other laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction. Except as set out in the Target Disclosure Letter, the Target and the Target Subsidiaries have complied in all material respects with all terms of such Material Contracts, have paid all amounts due thereunder, have not waived any rights thereunder and no default or breach exists in respect thereof on the part of the Target or any of the Target Subsidiaries or, to the knowledge of the Target, on the part of any other party thereto, and no event has occurred which, after the giving of notice or the lapse of time or both, would constitute such a default or breach or trigger a right of termination of any of the Material Contracts. As at the date hereof, neither the Target nor any of the Target Subsidiaries have received written notice that any party to a Material Contract intends to cancel, terminate or otherwise modify or not renew such Material Contract, and to the knowledge of the Target or any of the Target Subsidiaries, no such action has been threatened. Neither the Target nor any of the Target Subsidiaries is a party to any Material Contract that contains any non-competition obligation or otherwise restricts in any material way the business of the Target or any of the Target Subsidiaries.

(o)       Compliance with Law: Except as disclosed in Schedule (O) of the Target Disclosure Letter, to the best of the knowledge of Target after due enquiry, the Target and each of the Target Subsidiaries have complied with and are in compliance with all Laws applicable to the operation of its business, except where such non-compliance, considered individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect on the Target or any of the Target Subsidiaries and, without limitation, the Target and each of the Target Subsidiaries hold all permits, licences and approvals required for the operation of their business as is now being and has previously been conducted.

(p)       Litigation, etc: Except as set out in Schedule (P) of the Target Disclosure Letter, there are no claims, actions, suits, grievances, complaints or proceedings pending or, to the knowledge of the Target, threatened or affecting the Target or any of the Target Subsidiaries or affecting any of its respective property or assets at law or in equity before or by any Governmental Entity, including matters arising under Environmental Laws. Neither the Target, any of the Target Subsidiaries, nor their assets or properties are subject to any outstanding judgement, order, writ, injunction or decree that involves or may involve or restricts or may restrict the right or ability of the Target or any of the Target Subsidiaries to conduct their business in all material respects as it has been carried on prior to the date hereof, or that would materially impair the consummation of the transactions contemplated by this Agreement.

(q)       Absence of Cease Trade Orders: No order ceasing or suspending trading in the Target Shares (or any of them) or any other securities of the Target is outstanding and no proceedings for this purpose have been instituted or, to the knowledge of the Target, are pending, contemplated or threatened.

(r)       Licences, etc: The Target and the Target Subsidiaries hold all requisite licences, registrations, qualifications, permits, certificates, orders, grants, approvals, consents and other authorizations necessary or appropriate for carrying on their business as currently carried on and all such licences, registrations, qualifications, permits, certificates, orders, grants, approvals, consents and other authorizations are valid and subsisting and in good standing in all material respects except where the failure to hold such licences, registrations, qualifications, permits and consents would not have a Material Adverse Effect on the Target.

(s)       Operational Matters: Except as set out in Schedule (S) of the Target Disclosure Letter:

(t)       Personal Property: The Target has good and valid title to, or a valid and enforceable leasehold interest in, all material personal property owned or leased by them free and clear of any Encumbrances (other than Permitted Encumbrance). No Person has any right of first refusal, undertaking or commitment or any right or privilege capable of becoming such, to purchase any of the material assets owned by the Target, or any part thereof or interest therein. No part of the property or assets of the Target and no property leased by the Target has been taken, condemned or expropriated by any Governmental Entity nor has any written notice or proceeding in respect thereof been given or, to the knowledge of the Target, commenced nor, to the knowledge of the Target, does any person have any intent or proposal to give such notice or commence any such proceedings.\

(u)       Intellectual Property: To the best of the knowledge of Target, there is no action, suit, proceeding or claim pending or threatened by others challenging the Target's rights in or to any Intellectual Property which is used for the conduct of Target's business. Schedule (U) includes a list of all Target's rights in or to any Intellectual Property.

(v)       Insurance: As of the date hereof, the Target has such policies of insurance as are listed in Schedule (V) of the Target Disclosure Letter. All insurance maintained by the Target and each of the Target Subsidiaries is in full force and effect and in good standing and neither the Target nor any of the Target Subsidiaries are in default, whether as to payment of premium or otherwise, under the terms of any such insurance nor has the Target or any of the Target Subsidiaries failed to give any notice or present any material claim under any such insurance in a due and timely fashion or received notice or otherwise become aware of any intent of an insurer to either claim any default on the part of the Target or any of the Target Subsidiaries or not to renew any policy of insurance on its expiry or to increase any deductible or cost.

(w)       Tax Matters: Other than as disclosed in Schedule (W) of the Target Disclosure Letter:

(x)       Related Party Transactions: Other than as disclosed in Schedule (X) of the Target Disclosure Letter, the Target is not indebted to any director, officer, employee or agent of, or independent contractor to, the Target or any of its affiliates or associates. On or before the date hereof, no director, officer, employee or agent of the Target or any of its respective affiliates or associates is a party to any loan, contract, arrangement or understanding or other transactions with the Target. Except as set out in Schedule (X) of the Target Disclosure Letter, there are no contracts or other transactions between the Target, on the one hand, and any (i) officer or director of the Target, (ii) any holder of record or beneficial owner of 10% or more of any class of the voting or non-voting equity securities of the Target or (iii) any affiliate or associate of any such officer, director or beneficial owner, on the other hand.

(y)       No Option on Assets: No Person has any agreement or option or any right or privilege capable of becoming an agreement or option for the purchase from the Target or the Target Subsidiaries of the material assets of the Target.

(z)       Winding Up: No order has been made, petition presented or meeting convened for the purpose of winding up of the Target or any of the Target Subsidiaries, or for the appointment of any provisional liquidator or in relation to any other process whereby the business is terminated and the assets of the Target or any of the Target Subsidiaries are distributed amongst the creditors and/or shareholders or other contributors, and there are no proceedings under any applicable insolvency, bankruptcy, reorganisation or similar laws in any relevant jurisdiction, and no events have occurred which, under applicable Laws, would be reasonably likely to justify any such cases or proceedings.

(aa)       Brokers: No broker, investment banker, financial advisor or other person is entitled to any broker's, finder's, financial advisor's or other similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Target.

(bb)       Corrupt Practices: There have been no actions taken by the Target or any of its Affiliates which violated or are in violation of the Foreign Corrupt Practices Act of 1977 (United States) or the Corruption of Foreign Public Officials Act (Canada) or any similar legislation of another jurisdiction.

(cc)       Confidentiality Agreements: The Target has not negotiated any Acquisition Proposal with any Person who has not entered into a confidentiality agreement and has not waived any "standstill" provisions in any such agreement, and no such agreement contains any provision currently in effect which would require the Target to pay any break fee or similar payment to any Person, other than the Purchaser pursuant to this Agreement.

(dd)       U.S. Securities Law Matters: The Target (i) is a "foreign private issuer" as defined in Rule 405 under the 1933 Act, (ii) has no class of securities outstanding that is or is required to be registered under section 12 of the 1934 Act or that is subject to the reporting requirements of section 13 or 15(d) of the 1934 Act and (iii) is not registered or required to register as an investment company under the 1940 Act.

(ee)       Vote Required: The only votes of the holders of any class or series of the Target Shares and Target Warrants or other securities of the Target necessary to approve this Agreement and the Arrangement and the transactions contemplated hereof or thereby is, subject to the Interim Order, the Target Shareholder Approval.

(ff)       Support for the Arrangement: The Target has not received any notice or other communication, whether written or oral, from any Target Shareholder or holder of Target Warrants indicating that such party will not support the Arrangement, and The Target has obtained executed Voting Agreements from all of the Locked-up Securityholders.

(a)       Organization: The Purchaser is a corporation duly incorporated or amalgamated or an entity duly created and validly existing under all applicable Laws of its jurisdiction of incorporation, continuance or creation and has all necessary corporate or other power, authority and capacity to own its property and assets as now owned and to carry on its business as it is now being conducted. The Purchaser (i) has all licenses, permits, certificates, orders and other authorizations of or from any Governmental Entity necessary to conduct its business substantially as now conducted and (ii) is duly registered or otherwise authorized and qualified to do business and is in good standing in each jurisdiction in which the character of its properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such qualification necessary, except where the failure to be so registered or in good standing would not reasonably be expected to have a Material Adverse Effect.

(b)       Ownership of Subsidiaries: The material subsidiaries of Purchaser are disclosed in the Purchaser Disclosure Documents. All of the issued and outstanding shares of capital stock and other ownership interests in the material subsidiaries of the Purchaser are duly authorized, validly issued, fully paid and non-assessable, and all such shares and other ownership interests held directly or indirectly by the Purchaser are legally and beneficially owned, and there are no outstanding options, warrants, rights, entitlements, understandings or commitments (contingent or otherwise) regarding the right to purchase or acquire, or securities convertible into, or exchangeable or exercisable for, any such shares of capital stock or other ownership interests in or material assets or properties of any of the subsidiaries of the Purchaser except as disclosed in the Purchaser Disclosure Documents. There are no contracts, commitments, agreements, understandings, arrangements or restrictions which require any material subsidiaries of Purchaser to issue, sell or deliver any shares in its share capital or other ownership interests, or any securities or obligations convertible into, or exchangeable or exercisable for, any shares of its share capital or other ownership interests except as disclosed in the Purchaser Disclosure Documents. There are no outstanding options, rights, entitlements, understandings or commitments (contingent or otherwise) providing to any third party the right to acquire any shares or other ownership interests in any subsidiaries of the Purchaser except as disclosed in the Purchaser Disclosure Documents.

(c)       Capitalization: The authorized share capital of Purchaser consists of 90,000,000 shares of common stock with a par value of USD $0.001 per share and 10,000,000 shares of preferred stock with a par value of USD $0.001. As of the close of business on April 8, 2016, there are 2,520,000 shares of common stock issued and outstanding and nil shares of preferred stock issued and outstanding. Other than the contemplated Concurrent Financing, there are no options, warrants, conversion privileges or other rights, shareholder rights plans, agreements, arrangements or commitments (pre-emptive, contingent or otherwise) of any character whatsoever requiring or which may require the issuance, sale or transfer by the Purchaser of any securities of the Purchaser (including Purchaser Shares), or any securities or obligations convertible into, or exchangeable or exercisable for, or otherwise evidencing a right or obligation to acquire, any securities of the Purchaser (including Purchaser Shares) or of the Purchaser Subsidiaries. All outstanding Purchaser Shares have been duly authorized and validly issued, are fully paid and non-assessable. All securities of the Purchaser have been issued in compliance with all applicable Laws and Securities Laws. There are no securities of the Purchaser or any of the Purchaser Subsidiaries outstanding which have the right to vote generally (or, are convertible into, or exchangeable or exercisable for securities having the right to vote generally) with the Purchaser Shareholders on any matter.

(d)       Authority: The Purchaser has the requisite corporate power, authority and capacity to enter into this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement by the Purchaser and the performance by the Purchaser of its obligations under this Agreement has been duly authorized by the Purchaser Board and no other corporate or shareholder proceedings on the part of the Purchaser is necessary to authorize the execution and delivery by the Purchaser of this Agreement or the performance of its respective obligations under this Agreement or the Arrangement pursuant to the Plan of Arrangement (and for greater certainty, the issuance of the Purchaser Shares forming part of the Consideration pursuant to the Arrangement does not require the approval of the Purchaser Shareholders). This Agreement has been duly executed and delivered by the Purchaser and constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, subject to the qualification that such enforceability may be limited by bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting rights of creditors and that equitable remedies, including specific performance, are discretionary and may not be ordered.

(e)       No Violation: None of the authorization, execution and delivery of this Agreement by the Purchaser, the completion of the transactions contemplated by this Agreement or the Plan of Arrangement, or compliance by the Purchaser with any of the provisions hereof or thereof will (1) violate, conflict with, or result (with or without notice or the passage of time) in a violation or breach of any provision of, or require any consent, approval or notice under, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) or result in a right of termination or acceleration under, or result in the creation of any Lien upon, any of the properties or assets of the Purchaser or any of the Purchaser Subsidiaries, or cause any indebtedness to come due before its stated maturity or cause any credit commitment to cease to be available or cause any payment or other obligation to be imposed on the Purchaser or any of the Purchaser Subsidiaries, under any of the terms, conditions or provisions of (A) their respective articles, charters or by-laws or other comparable organizational documents or (B) any note, bond, mortgage, indenture, loan agreement, deed of trust, Lien, license, permit, or other Contract, or (2) (x) result (with or without notice or the passage of time) in a violation or breach of or constitute a default under any provisions of any Laws applicable to the Purchaser or any of the Purchaser Subsidiaries or any of its properties or assets or (y) cause the suspension or revocation of any Permit currently in effect in respect of the Purchaser or the Purchaser Subsidiaries (except, in the case of each of clauses (1) and (2) above, for such violations, conflicts, breaches, defaults, terminations, accelerations or creations of Liens which, or any consents, approvals or notices which if not given or received, would not, individually or in the aggregate, reasonably be expected to have any Material Adverse Effect). The authorization of this Agreement, the execution and delivery by the Purchaser of this Agreement, the performance by the Purchaser of its obligations under this Agreement and the consummation by the Purchaser of the Arrangement, will not (x) give rise to any rights of first refusal or trigger any change in control provisions or any restrictions or limitation under any such note, bond, mortgage, indenture, contract, license, franchise or Permit, or result in the imposition of any Encumbrance, charge or Lien upon any of the assets of the Purchaser or the assets of any of the Purchaser Subsidiaries or (y) result in the imposition of any Liens upon any assets of the Purchaser or any of the Purchaser Subsidiaries. There are no approvals and notices (except for post-closing notices) required from any third party under any Contracts in order for the Purchaser and the Purchaser Subsidiaries to proceed with the execution and delivery of this Agreement and the completion of the transactions contemplated by this Agreement and the Arrangement pursuant to the Plan of Arrangement.

(f)       Financial Statements and Information: The Purchaser Financial Statements were prepared in accordance with generally accepted accounting principles in the United States consistently applied, and fairly represent, in all material respects, the consolidated financial condition of the Purchaser at the respective dates indicated and the results of operations of the Purchaser (on a consolidated basis) for the periods covered.

(g)       Reporting Status and Securities Laws Matters: The Purchaser Shares are registered as a class under section 12(g) of the U.S. Exchange Act, and the Purchaser has filed all reports that it is required to file under section 13(a) of the U.S. Exchange Act. No delisting, suspension of trading in or cease trading order with respect to any securities of and, to the knowledge of the Purchaser, no inquiry or investigation (formal or informal) of any Securities Regulator, is in effect or ongoing or, to the knowledge of the Purchaser, expected to be implemented or undertaken. The Purchaser shall use its best efforts such that the Purchaser Shares shall be posted for trading on the OTC Pink at or before the Effective Date. The Purchaser is in compliance in all material respects with all requirements of the OTC Markets Group Inc.

(h)       Public Record: The Purchaser has filed all required reports, statements, forms and other documents required to be filed by it in accordance with applicable Laws and, as of their respective dates, the documents and materials comprising the Purchaser Disclosure Documents (including all exhibits and schedules thereto and documents incorporated by reference therein) did not contain any Misrepresentation, and complied in all material respects with all Securities Laws.

(i)       Books and Records: The financial books, records and accounts of the Purchaser in all material respects (i) have been maintained in accordance with U.S. GAAP, (ii) are stated in reasonable detail and accurately and fairly reflect the material transactions and dispositions of the assets of the Purchaser and (iii) accurately and fairly reflect the basis for the Purchaser Financial Statements. The corporate records and minute books for the Purchaser have been maintained in accordance with all applicable Laws and contain complete and accurate minutes of all meetings and resolutions of the directors and shareholders of the Purchaser held and/or passed, as applicable, since their incorporation or amalgamation, as the case may be.

(j)       No Undisclosed Liabilities: The Purchaser and the Purchaser Subsidiaries have no outstanding indebtedness or liabilities and are not party to or bound by any material suretyship, guarantee, indemnification or assumption agreement, or endorsement of, or any other similar commitment with respect to the obligations, liabilities or indebtedness of any person, other than those specifically identified in the Purchaser Financial Statements or incurred in the ordinary course of business since the date of the most recent Purchaser Financial Statements filed on SEDAR or otherwise disclosed in the Purchaser Disclosure Documents.

(k)       Absence of Changes: Since January 31, 2016, except as disclosed in the Purchaser Disclosure Documents, there has been no material change (actual, contemplated or threatened) in the condition (financial or otherwise), earnings, position, value, operation, properties, business results of operations or prospects of the Purchaser and the Purchaser Subsidiaries, and the debt, business and material property of the Purchaser and the Purchaser Subsidiaries conform in all respects to the description thereof contained in the Purchaser Disclosure Documents.

(l)       Compliance with Law: To the best of the knowledge of the Purchaser after due enquiry, the Purchaser has complied with and are in compliance with all Laws applicable to the operation of its business, except where such non-compliance, considered individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect on the Purchaser and, without limitation, the Purchaser holds all permits, licences and approvals required for the operation of their business as is now being and has previously been conducted.

(m)       Litigation, etc: Other than as disclosed in the Purchaser Disclosure Documents, there are no claims, actions, suits, grievances, complaints or proceedings pending or, to the knowledge of the Purchaser, threatened affecting the Purchaser or any of the Purchaser Subsidiaries or affecting any of their respective property or assets at law or in equity before or by any Governmental Entity, including matters arising under Environmental Laws which, individually or in the aggregate will have a Material Adverse Effect on the Purchaser.

(n)       Absence of Cease Trade Orders: No order ceasing or suspending trading in the Purchaser Shares (or any of them) or any other securities of the Purchaser is outstanding and no proceedings for this purpose have been instituted or, to the knowledge of the Purchaser, are pending, contemplated or threatened.

(o)       Purchaser Material Properties:

(p)       Off Balance Sheet Transactions. The Purchaser is not a party to or bound by any operating leases or any "off-balance-sheet" transactions or arrangements.

(q)       Environmental: Except as disclosed in the Purchaser Disclosure Documents, to the knowledge of the Purchaser, each of the Purchaser and the Purchaser Subsidiaries and their respective businesses, operations, and properties:

(r)       Insurance: All insurance maintained by the Purchaser or any of the Purchaser Subsidiaries is in full force and effect and in good standing in all material respects and neither the Purchaser nor any of the Purchaser Subsidiaries is in material default, whether as to payment of premium or otherwise, under the terms of any such insurance nor has the Purchaser or any of the Purchaser Subsidiaries failed to give any notice or present any material claim under any such insurance in a due and timely fashion or received notice or otherwise become aware of any intent of an insurer to either claim any default on the part of the Purchaser or any of the Purchaser Subsidiaries or not to renew any policy of insurance on its expiry or to increase any deductible or cost.

(s)       Tax Matters: Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Purchaser:

(t)       Winding Up: No order has been made, petition presented or meeting convened for the purpose of winding up of the Purchaser, or for the appointment of any provisional liquidator or in relation to any other process whereby the business is terminated and the assets of the Purchaser are distributed amongst the creditors and/or shareholders or other contributors, and there are no proceedings under any applicable insolvency, bankruptcy, reorganisation or similar laws in any relevant jurisdiction, and no events have occurred which, under applicable Laws, would be reasonably likely to justify any such cases or proceedings.

(u)       No Option on Assets. No Person has any agreement or option or any right or privilege capable of becoming an agreement or option for the purchase from the Purchaser or Purchaser Subsidiaries of the material assets of the Purchaser.

(v)       Related Party Transactions. Except as disclosed in the Purchaser Disclosure Documents, there are no Contracts or other transactions currently in place between Purchaser, on the one hand, and (i) any officer or director of the Purchaser, (ii) any holder of record or beneficial owner of 10% or more of Purchaser Shares and (iii) any affiliate or associate of any such, officer, director, holder of record or beneficial owner, on the other hand.

(w)       Brokers: No broker, investment banker, financial advisor or other person is entitled to any broker's, finder's, financial advisor's or other similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Purchaser.

(x)       No Expropriation: No property or asset of the Purchaser has been taken or expropriated by any Governmental Entity nor has any notice or proceeding in respect thereof been given or commenced nor, to the knowledge of the Purchaser, is there any intent or proposal to give any such notice or to commence any such proceeding.

(y)       Issuance of Purchaser Shares: The Purchaser Shares to be issued as part of the Consideration will, when issued pursuant to the Arrangement, be duly and validly issued as fully paid and non-assessable common shares in the capital of the Purchaser, free and clear of all Liens, freely tradeable and posted for trading on the OTC Pink.

(z)       Corrupt Practices: There have been no actions taken by the Purchaser or any of its Affiliates which violated or are in violation of the Foreign Corrupt Practices Act of 1977 (United States) or the Corruption of Foreign Public Officials Act (Canada) or any similar legislation of another jurisdiction.

(a)       to amend the Arrangement Agreement or the Plan of Arrangement to the extent permitted by the Arrangement Agreement or the Plan of Arrangement; or

(b)       subject to the terms of the Arrangement Agreement, not to proceed with the Arrangement.

(a)       all actions required to be taken by or on behalf of the Target, and all necessary filings and obtaining the necessary approvals, consents and acceptances of appropriate regulatory authorities; and

(b)       the signing of the certificates, consents and other documents or declarations required under the Arrangement Agreement or otherwise to be entered into by the Target;

(a)       it understands that the Securities have not been and will not be registered under the U.S. Securities Act or the securities laws of any state of the United States, that the sale contemplated hereby is being made in reliance on the exemption from such registration requirement provided by Rule 506 of Regulation D, that as such the Securities will be "restricted securities" within the meaning of Rule 144 under the U.S. Securities Act, and the undersigned is familiar with such rule and understands the resale limitations imposed thereby and the U.S. Securities Act, or has been independently advised of such resale limitations by its investment advisor or legal counsel;

(b)       it acknowledges that it has not acquired 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, television or the Internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

(c)       it understands and agrees that there may be material tax consequences to the undersigned of an acquisition or disposition of any of the Securities. The Issuer and Target give no opinions and makes no representations with respect to the tax consequences to the undersigned under United States, state, local or foreign tax law of the undersigned's acquisition or disposition of such Securities. In particular, no determination has been made whether the Issuer will be a "passive foreign investment company" ("PFIC") within the meaning of Section 1291 of the United States Internal Revenue Code;

(d)       it understands and acknowledges that upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws and regulations, the certificates, or an ownership statement issued under a direct registration system or other electronic book-entry system, representing the Securities or any shares underlying the Replacement Warrants (the "Warrant Shares") will bear a legend in substantially the following form:

provided, however, in either case, if any Purchaser Shares, Replacement Warrants or Warrant Shares are being sold, the legend may be removed by delivery to the registrar and transfer agent and the Issuer an opinion of counsel, of recognized standing reasonably satisfactory to the Issuer, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

In addition, it understands and agrees that the certificates representing the Replacement Warrants, and all certificates issued in exchange therefore or in substitution thereof, shall bear the applicable legend set forth above as well as the following legend:

(e)       it consents to the Issuer making a notation on its records or giving instruction to the registrar and transfer agent of the Issuer in order to implement the restrictions on transfer set forth and described herein;

(f)       if an individual, it is a resident of the state or other jurisdiction listed beneath his or her signature below, or if the undersigned is not an individual, the office of the undersigned at which the undersigned received and accepted the offer to acquire the Issuer's Securities is the address listed beneath the signature line below;

(g)       it has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Securities and it is able to bear the economic risk of loss of its entire investment;

(h)       the Issuer has provided to it the opportunity to ask questions and receive answers concerning the terms and conditions of the Arrangement Agreement and it has had access to such information concerning the Issuer as it has considered necessary or appropriate in connection with its investment decision to acquire the Securities;

(i)       it is acquiring the Securities for its own account, for investment purposes only and not with a view to any resale, distribution or other disposition of the Securities in violation of the United States securities laws;

(j)       if it decides to offer, sell or otherwise transfer any of the Securities, it will not offer, sell or otherwise transfer any of such Securities directly or indirectly, unless:

and, in the case of clauses (iii) or (iv) above, it has prior to such sale furnished to the Issuer an opinion of counsel or other evidence of exemption in form and substance reasonably satisfactory to the Issuer; and

(k)       it understands that the Issuer is not obligated to file and has no present intention of filing with the U.S. Securities and Exchange Commission or with any state securities administrators any registration statement in respect of resales of the Securities in the United States.