Document:

ex_122834.htm

Exhibit 4.14

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

THE BROKER WARRANTS REPRESENTED BY THIS CERTIFICATE WILL BE VOID IF NOT EXERCISED PRIOR TO the expiry time referred to herein

 

BROKER WARRANT CERTIFICATE

 

DIAMEDICA INC.

(THE "CORPORATION")

(Incorporated under the laws of the Province of Manitoba)

 

	
			BROKER WARRANT CERTIFICATE NO. [●]

				 	
			[●] BROKER WARRANTS entitling the holder to purchase one Common Share (as defined below) for each Broker Warrant represented hereby (subject to adjustment as hereinafter provided).

			 

			

 

 

 

THIS IS TO CERTIFY THAT [●], (the "Holder") is entitled to purchase, at any time and from time, prior to the Expiry Time (as defined below), at the Exercise Price (as defined below) and on the other terms and conditions set forth herein, one Common Share for each Broker Warrant represented hereby. The Exercise Price and the number of Common Shares which the Holder is entitled to purchase on exercise of the Broker Warrants are subject to adjustment as hereinafter provided.

 

"Expiry Time" means 5:00 p.m. (Calgary time) on the Expiry Date.

 

"Expiry Date" means [●], 2018.

 

"Exercise Price" means $0.25 per Common Share.

 

The Holder may exercise its rights to purchase Common Shares hereunder by delivering to the Corporation c/o DiaMedica USA Inc. Two Carlson Parkway, Suite 165, Minneapolis, Minnesota 55447 this certificate with the Exercise Form forming part hereof duly completed and executed by the Holder, together with a certified cheque or bank draft, payable to or to the order of the Corporation, at par, in immediately available Canadian funds, in an amount equal to the product of the Exercise Price multiplied by the number of Common Shares specified in the Exercise Form to be purchased by the Holder hereunder. The date on which this certificate, the Exercise Form and payment are so delivered to the Corporation is hereinafter referred to as the "Exercise Date".

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

- 2 -

 

IN WITNESS WHEREOF, the Corporation has caused this certificate to be executed by a duly authorized director or officer.

 

DATED as of [●], 2016.

 

 

 

	
			DIAMEDICA INC.

			
	 
	 
	 
	
			Per:

				 
	 	
			Name: [●]

			Title:   [●]

			

 

The Broker Warrants represented hereby are not transferable.

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-3-

 

	
			Exercise FORM

			TO:     DIAMEDICA INC.

			 

			The undersigned hereby exercises its right to purchase _______________ Common Shares and tenders herewith a certified cheque or bank draft payable to DiaMedica Inc. in the amount of $___________________, being the aggregate purchase price for such Common Shares.

			 

			The Common Shares are to be registered as follows:

			 

			Name of Registered Holder:     _________________________________________________________________________________________

			 

			Address of Registered Holder:  _________________________________________________________________________________________

			 

			_________________________________________________________________________________________

			 

			Social Insurance Number/

			Business Number:

			 

			Note: If further nominees are intended, please attach (and initial) a schedule providing these particulars.

			 

			 

			DATED this _____ day of _______________, ______.

			 

			 

			 

			 

			 

			 

			__________________________                        Per:____________________________________

			Signature Guaranteed                                                Name:

			Title:

			 

			

 

Instructions:

 

	
			1.

				
			If the Exercise Form indicates that Common Shares are to be issued to a person or persons other than the Holder, the signature of such Holder on the Exercise Form must be guaranteed by an authorized officer of a chartered bank, trust company or an investment dealer who is a member of a recognized stock exchange, and the Holder must pay any applicable transfer taxes or fees.

			

 

	
			2.

				
			If the Exercise Form is signed by a trustee, executor, administrator, curator, guardian, attorney, officer of a corporation or any person acting in a fiduciary or representative capacity, this Broker Warrant Certificate must be accompanied by evidence, satisfactory to the Corporation, of the authority of such person to sign the Exercise Form.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-4-

 

ADDITIONAL TERMS AND CONDITIONS

 

ARTICLE 1

INTERPRETATION

 

	
			1.1

				
			Definitions

			

 

In this Broker Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the meanings ascribed to them below:

 

	 	
			(a)

				
			"Broker Warrants" means the warrants to acquire Common Shares represented by this Broker Warrant Certificate;

			

 

	 	
			(b)

				
			"Business Day" means a day other than a Saturday, Sunday or a statutory holiday in Toronto, Ontario and Winnipeg, Manitoba;

			

 

	 	
			(c)

				
			"Common Shares" means the common shares in the capital of the Corporation as such shares existed at the close of business on the Business Day immediately preceding the Effective Date;

			

 

	 	
			(d)

				
			“Current Market Price” of the Common Shares at any date means the volume-weighted average trading price per share for such shares for the last ten consecutive Trading Days ending three trading days prior to such date on the Exchange or, if on such date the Common Shares are not listed on the Exchange, on such stock exchange upon which such shares are listed and as selected by the directors, or, if such shares are not listed on any stock exchange, then on such over the counter market or otherwise as may be determined by the directors, acting reasonably;

			

 

	 	
			(e)

				
			"Effective Date" means [●], 2016;

			

 

	 	
			(f)

				
			“Exchange” means the TSX Venture Exchange;

			

 

	 	
			(g)

				
			"person" includes an individual, corporation, partnership, trustee or any unincorporated organization and words importing persons include individuals, corporations, partnerships, trustees and unincorporated organizations.

			

 

	 	
			(h)

				
			“Trading Day” means, with respect to a stock exchange, a day on which such exchange is open for the transaction of business and with respect to the over-the-counter market means a day on which the Exchange is open for the transaction of business.

			

 

Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders.

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-5-

 

	
			1.2

				
			Interpretation Not Affected by Headings

			

 

The division of these Additional Terms and Conditions into Articles, Sections and subsections, and the insertion of headings, are for convenience of reference only and shall not affect the construction or interpretation hereof. Unless the context otherwise requires, references herein to Articles, Sections and subsections are to Articles, Sections and subsections of this Broker Warrant Certificate.

 

	
			1.3

				
			Applicable Law

			

 

These Additional Terms and Conditions shall be construed in accordance with, and the rights and obligations of the Holder and the Corporation hereunder shall be governed by, the laws of the Province of Manitoba and the federal laws of Canada applicable therein, without regard to principles of conflicts of law. The Holder attorns to the non-exclusive jurisdiction of the courts of the Province of Manitoba in respect of all matters and disputes arising hereunder.

 

ARTICLE 2

ISSUE OF BROKER WARRANTS

 

	
			2.1

				
			Issue of Broker Warrants

			

 

That number of Broker Warrants set out on the Broker Warrant Certificate have been duly created, authorized and issued.

 

	
			2.2

				
			Additional Broker Warrants

			

 

Subject to any other written agreement between the Corporation and the Holder, the Corporation may at any time and from time to time undertake further equity or debt financing and may issue additional Common Shares, Broker Warrants or grant options or similar rights to purchase Common Shares to any person.

 

	
			2.3

				
			Issue in Substitution for Lost Broker Warrants

			

 

That number of Broker Warrants set out on the Broker Warrant Certificate have been duly created, authorized and issued.

 

	 	
			(a)

				
			If any Broker Warrant Certificate becomes mutilated or is lost, destroyed or stolen, the Corporation, subject to applicable law and to Subsection 2.3(b), shall issue a new Broker Warrant Certificate of like tenor as the one mutilated, lost, destroyed or stolen in exchange for and in place of and upon cancellation of such mutilated Broker Warrant Certificate, or in lieu of and in substitution for such lost, destroyed or stolen Broker Warrant Certificate, and the Broker Warrants evidenced thereby shall be entitled to the benefits hereof and shall rank equally in accordance with its terms with all other Broker Warrants issued or to be issued hereunder.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-6-

 

	 	
			(b)

				
			The applicant for the issue of a new Broker Warrant Certificate pursuant to this Section 2.3 shall bear the cost of the issue thereof and in case of loss, destruction or theft shall, as a condition precedent to the issue thereof, furnish to the Corporation such evidence of ownership and of the loss, destruction or theft of the Broker Warrant Certificate so lost, destroyed or stolen as shall be satisfactory to the Corporation, in its sole discretion, acting reasonably, and such applicant shall be satisfactory to the Corporation, in its sole discretion, acting reasonably, and such applicant shall also be required to furnish an indemnity or security in amount and form satisfactory to the Corporation, in its sole discretion, and shall pay the reasonable charges of the Corporation in connection therewith.

			

 

	
			2.4

				
			Warrantholder Not a Shareholder

			

 

Nothing in the holding of a Broker Warrant or Broker Warrant Certificate shall, in itself, confer or be construed as conferring upon the Holder any right or interest whatsoever as a shareholder of the Corporation, including, but not limited to, the right to vote at, to receive notice of, or to attend meetings of shareholders or any other proceedings of the Corporation, or the right to receive dividends and other distributions.

 

ARTICLE 3

EXERCISE OF BROKER WARRANTS

 

	
			3.1

				
			Method of Exercise

			

 

	 	
			(a)

				
			The Holder may exercise the right conferred on such holder to purchase Common Shares by delivering to the Corporation a duly completed and executed exercise form in the form approved by the Corporation and substantially in the form attached hereto (the “Exercise Form”) of the registered holder, or his or her executors, or administrators or other legal representative or his or her attorney duly appointed by an instrument in writing in a form and manner satisfactory to the Corporation, together with such other documentation and the Corporation may reasonably require.

			

 

	 	
			(b)

				
			Each Exercise Form referred to in Subsection 3.1(a) shall be signed by the Holder or the Holder’s executors or administrators or other legal representatives or an attorney of the Holder duly appointed by an instrument in writing satisfactory to the Corporation, acting reasonably, and shall specify the number of Common Shares which the Holder wishes to acquire (being not more than those which the Holder is entitled to acquire pursuant to this Broker Warrant Certificate).

			

 

	 	
			(c)

				
			Notwithstanding the foregoing in this Section 3.1, a holder who exercises Broker Warrants pursuant to this Section 3.1 will be deemed to have certified that the Holder is not a resident of the United States or a U.S. Person on the Exercise Date. “United States” and “U.S. Person” are as defined in Regulations S under the United States Securities Act of 1933, as amended.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-7-

 

	
			3.2

				
			Effect of Exercise

			

 

Common Shares purchased on the exercise of Broker Warrants shall be issued as fully paid and non-assessable shares in the capital of the Corporation and the Holder (or its nominee(s) as provided in the Exercise Form) shall become the holder of record of such Common Shares effective as of the Exercise Date. The Corporation will mail or deliver or cause to be mailed or delivered to the Holder at the Holder's address set out herein or, if so specified by the Holder, as set out in the Exercise Form, certificate(s) representing the Common Shares so purchased within five Business Days of the applicable Exercise Date.

 

	
			3.3

				
			Partial Exercise; Fractions

			

 

	 	
			(a)

				
			The Holder may exercise less than the total number of Broker Warrants represented hereby, in which case, the Corporation shall mail or deliver or cause to be mailed or delivered to the Holder at the Holder's address set out herein or, if so specified by the Holder, as set out in the applicable Exercise Form, a Broker Warrant Certificate duly executed by the Corporation representing the balance of the Broker Warrants not so exercised by the Holder within five Business Days of the applicable Exercise Date.

			

 

	 	
			(b)

				
			Notwithstanding anything herein contained, including any adjustment provided for in Article 4, the Corporation shall not be required, upon the exercise of any Broker Warrants (and after taking into account the aggregate number of Common Shares purchased pursuant to the exercise of all Broker Warrants by a particular Holder on a particular Exercise Date), to issue fractions of Common Shares or to distribute certificates which evidence a fractional Common Shares. The Corporation shall not be required to make any payment to a holder who, absent this Subsection 3.3(b), would otherwise have been entitled to receive a fractional share.

			

 

	
			3.4

				
			Expiration

			

 

At the Expiry Time all rights hereunder shall wholly cease and terminate and the Broker Warrants shall be void and of no effect whatsoever.

 

	
			3.5

				
			Securities Restrictions

			

 

Notwithstanding anything herein contained, no Common Shares will be issued pursuant to the exercise of any Broker Warrant if the issuance of such Common Shares would constitute a violation of the securities laws of any applicable jurisdiction, and without limiting the generality of the foregoing, in the event that the Broker Warrants are exercised pursuant to Section 3.1, the certificates representing the Common Shares thereby issued will bear such legend as may, in the opinion of counsel to the Corporation, be necessary in order to avoid a violation of any securities laws of any province in Canada or of the United States or to comply with the requirements of any stock exchange on which the Common Shares are listed, provided that if, at any time, in the opinion of counsel to the Corporation, such legends are no longer necessary in order to avoid a violation of any such laws, or the holder of any such legended certificate, at the holder’s expense, provides the Corporation with satisfactory in form and substance to the Corporation (which may include an opinion of counsel satisfactory to the Corporation) to the effect that such holder is entitled to sell or otherwise transfer such Common Shares in a transaction in which such legends are not required, such legended certificate may thereafter be surrendered to the Corporation in exchange for a certificate which does not bear such legend.

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-8-

 

ARTICLE 4

GENERAL

 

	
			4.1

				
			Common Shares

			

 

Until the Expiry Time, the Corporation shall reserve and keep available for issue upon the exercise of the Broker Warrants such number of authorized but unissued Common Shares as may be necessary to satisfy in full the rights of the Holder to purchase Common Shares hereunder.

 

	
			4.2

				
			Notice to Regulatory Authorities

			

 

If so required by law or the rules of any stock exchange or securities regulatory authority, the Corporation may give notice of the issuance of any Common Shares pursuant to the exercise of Broker Warrants in such detail as may be required by such regulatory authority.

 

	
			4.3

				
			Legends

			

 

If so required by law or the rules of any stock exchange or securities regulatory authority, the Corporation may endorse certificates representing Common Shares issued on exercise of Broker Warrants with such legends as may be so required.

 

	
			4.4

				
			Transfer Taxes

			

 

The Corporation shall pay any and all transfer taxes (if any) that may be payable in respect of the issuance or delivery of Common Shares upon the exercise of the Broker Warrants; provided, however, that the Corporation shall not be required to pay any such tax or taxes that may be payable in respect of the issuance or delivery of Common Shares issued upon the exercise of the Broker Warrants in the name of a person or persons other than the Holder.

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-9-

 

ARTICLE 5

ADJUSTMENTS

 

	
			5.1

				
			Adjustments of Exercise Price and Number of Common Shares Issuable 

			

 

The acquisition rights in effect at any date attaching to the Warrants shall be subject to adjustment from time to time as follows:

 

	 	
			(a)

				
			if and whenever at any time from the date hereof and prior to the Time of Expiry, the Corporation shall:

			

 

	 	
			(i)

				
			subdivide, redivide or change its outstanding Common Shares into a greater number of shares;

			

 

	 	
			(ii)

				
			reduce, combine or consolidate its outstanding Common Shares into a smaller number of shares; or

			

 

	 	
			(iii)

				
			issue Common Shares or securities exchangeable for or convertible into Common Shares to all or substantially all the holders of the then outstanding Common Shares by way of stock dividend or otherwise (other than the issue of Common Shares to holders of Common Shares pursuant to their exercise of options or the exercise of previously granted warrants, including the Warrants issued hereunder, or as dividends in the form of Common Shares in lieu of dividends paid in the ordinary course on the Common Shares);

			

 

then the Exercise Price shall be adjusted, in the case of any action described in (i) or (ii) above, on the effective date thereof, and, in the case of any action described in (iii) above, immediately after the record date thereof by multiplying the Exercise Price in effect immediately prior to such effective date or the close of business on such record date, as the case may be, by a fraction of which the numerator shall be the total number of Common Shares outstanding immediately prior to such effective date or the close of business on such record date, as the case may be, and the denominator shall be the total number of Common Shares outstanding on such effective date or immediately after such record date, as the case may be, and, upon any adjustment of the Exercise Price pursuant to this subsection 5.1(a), the number of Common Shares subject to the right of purchase under each Warrant shall be contemporaneously adjusted by multiplying the number of Common Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the respective Exercise Price in effect immediately prior to such adjustment and the denominator shall be the respective Exercise Price resulting from such adjustment. Such adjustment shall be made successively whenever any event referred to in this subsection 5.1(a) shall occur;

 

	 	
			(b)

				
			if and whenever at any time from the date hereof and prior to the Time of Expiry, there is a reclassification of the Common Shares or a capital reorganization of the Corporation other than as described in Subsection 5.1(a) or a consolidation, amalgamation, arrangement or merger of the Corporation with or into any other body corporate, trust, partnership or other entity, or a sale, lease, exchange or transfer of the property and assets of the Corporation as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, the Holder shall be entitled to receive and shall accept, in lieu of the number of Common Shares originally sought to be acquired by it, the number of shares or other securities or property of the Corporation or of the body corporate, trust, partnership or other entity resulting from such consolidation, amalgamation, arrangement or merger, or to which such sale, lease, exchange or transfer may be made, as the case may be, that such Holder would have been entitled to receive on such reclassification, capital reorganization, consolidation, amalgamation, arrangement or merger, sale, lease, exchange or transfer, if, on the record date or the effective date thereof, as the case may be, the Holder had been the registered holder of the number of Common Shares originally sought to be acquired by it and to which it was entitled to acquire upon the exercise of the Warrants.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-10-

 

	 	
			(c)

				
			if and whenever at any time after the date hereof and prior to the Time of Expiry:

			

 

	 	
			(i)

				
			the Corporation shall fix a record date for the issuance of rights, options or warrants to all or substantially all of the holders of Common Shares entitling them to subscribe for or purchase Common Shares (or securities convertible into or exchangeable for Common Shares) at a price per share (or having a conversion price per share or exchange price per share) less than 95% of the Current Market Price on such record date, and

			

 

	 	
			(ii)

				
			the Corporation does not fix a record date for the same date as the record date provided in (c)(i) for the issuance to the Holders of equivalent rights, options or warrants as provided to holders of Common Shares in the event described in (c)(i) and on equivalent terms thereto,

			

 

then, the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by the following fraction:

 

A + (B / C)

   A + D

 

Where:

 

	
			A 

				
			=

				
			Total number of Common Shares outstanding on the record date

			
	 	 	 
	
			B

				
			=

				
			Aggregate gross price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered)

			
	 	 	 
	
			C

				
			=

				
			Current Market Price on the record date

			
	 	 	 
	
			D

				
			=

				
			Total number of additional Common Shares offered for subscription or purchase (or into or for which the convertible or exchangeable securities so offered are convertible or exchangeable)

			

 

and,

 

	 	
			(iii)

				
			any Common Shares owned by or held for the account of the Corporation or any Subsidiary of the Corporation shall be deemed not to be outstanding for the purpose of any such computation;

			

 

	 	
			(iv)

				
			such adjustment shall be made successively whenever such a record date is fixed;

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-11-

 

	 	
			(v)

				
			to the extent that any such rights, options or warrants are not so issued or any such rights, options or warrants are not exercised prior to the expiration thereof, the Exercise Price shall then be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed or to the Exercise Price which would then be in effect based upon the number and aggregate price of Common Shares (or securities convertible into Common Shares) actually issued upon the exercise of such rights, options or warrants, as the case may be; and

			

 

	 	
			(vi)

				
			upon any adjustment of the Exercise Price pursuant to this subsection 5.1(c), the number of Common Shares subject to the right of purchase under each Broker Warrant shall be contemporaneously adjusted by multiplying the number of Common Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the respective Exercise Price in effect immediately prior to such adjustment and the denominator shall be the respective Exercise Price resulting from such adjustment;

			

 

	 	
			(d)

				
			if and whenever at any time after the date hereof and prior to the Time of Expiry:

			

 

	 	
			(i)

				
			the Corporation shall fix a record date for the making of a distribution to all or substantially all the holders of its outstanding Common Shares of:

			

 

	 	
			(A)

				
			securities of any class, whether of the Corporation or any other corporation (other than a distribution of securities in respect of which an adjustment is provided for in Section 5.1(a), (b) or (c));

			

 

	 	
			(B)

				
			evidence of its indebtedness; or

			

 

	 	
			(C)

				
			assets or property of the Corporation; and

			

 

	 	
			(ii)

				
			the Corporation does not fix a record date for the same date as the record date provided for in (d)(i) for the issuance to Holders of equivalent shares, evidence of indebtedness, assets or property as provided to holders of Common Shares in the event described in (d)(i) and on equivalent terms thereto,

			

 

then, and in each such case, the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by the following fraction:

 

(A x B) - C

   A x B

 

Where:

 

	
			A 

				
			=

				
			Total number of Common Shares outstanding on such record date

			
	 	 	 
	
			B

				
			=

				
			Current Market Price on such record date 

			
	 	 	 
	
			C

				
			=

				
			Aggregate fair market value of such securities, evidence of indebtedness or assets so distributed

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-12-

 

and,

 

	 	
			(iii)

				
			any Common Shares owned by or held for the account of the Corporation or any Subsidiary of the Corporation shall be deemed not to be outstanding for the purpose of any such computation;

			

 

	 	
			(iv)

				
			such adjustment shall be made successively whenever such a record date is fixed;

			

 

	 	
			(v)

				
			to the extent that such distribution is not so made or any rights, options or warrants distributed are not exercised prior to their expiration thereof, the Exercise Price shall then be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed or to the Exercise Price which would then be in effect based upon such shares, evidences of indebtedness or assets actually distributed, as the case may be; and

			

 

	 	
			(vi)

				
			upon any adjustment of the Exercise Price pursuant to Subsection 5.1(d), the number of Common Shares subject to the right of purchase under each Warrant shall be contemporaneously adjusted by multiplying the number of Common Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the respective Exercise Price in effect immediately prior to such adjustment and the denominator shall be the respective Exercise Price resulting from such adjustment;

			

 

	 	
			(e)

				
			the adjustments provided for in this Article 5 in the number of Common Shares and classes of securities which are to be received on the exercise of Broker Warrants are cumulative. After any adjustment pursuant to this Section 5.1, the term "Common Shares" where used herein shall be interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this Section 5.1, the Holder is entitled to receive upon the exercise of its Broker Warrant, and the number of Common Shares indicated by any exercise made pursuant to a Broker Warrant shall be interpreted to mean the number of Common Shares or other property or securities a Holder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this Section 5.1, upon the full exercise of a Broker Warrant;

			

 

	 	
			(f)

				
			subject only to this Article 5, no Holder shall be entitled to receive at any time cash or property of any kind in lieu of those Common Shares issuable on the exercise of the Broker Warrants held by such Holder; and

			

 

	 	
			(g)

				
			if and whenever at any time from the date hereof and prior to the Time of Expiry, the Corporation shall take any action affecting or relating to the Common Shares, other than any action described in this Article, which in the opinion of the Corporation would prejudicially affect the rights of any holders of Broker Warrants, the number of Common Shares to be issued on the exercise of Broker Warrants and the exercise price thereof will, subject to the approval of the Exchange, be adjusted by the Corporation in such manner, if any, and at such time, as the Corporation may in its sole discretion determine to be equitable in the circumstances.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-13-

 

	
			5.2

				
			No De Minimis Adjustments

			

 

No adjustment in the Exercise Price or in the number of Common Shares subject to the right of purchase under each Broker Warrant shall be required unless such adjustment would result in a change of at least 1% in the Exercise Price then in effect or unless the number of Common Shares subject to the right of purchase under each Warrant would change by at least 1/100th of a Common Share, provided, however, that any adjustments, which, except for the provisions of this Subsection 5.2 would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.

 

	
			5.3

				
			Entitlement to Shares on Exercise of Warrant

			

 

All shares of any class or other securities which a Holder is at the time in question entitled to receive on the exercise of its Broker Warrant, whether or not as a result of adjustments made pursuant to this Article 5, shall be deemed to be shares which such Holder is entitled to acquire pursuant to such Broker Warrant.

 

	
			5.4

				
			Determination by Corporation's Auditors

			

 

In the event of any question arising with respect to the adjustments provided for in this Article 5, such question shall be conclusively determined by the Corporation's Auditors who shall have access to all necessary records of the Corporation, and such determination shall be binding upon the Corporation, the Holders and all other persons interested therein.

 

	
			5.5

				
			Proceedings Prior to any Action Requiring Adjustment

			

 

As a condition precedent to the taking of any action which would require an adjustment in any of the acquisition rights pursuant to any of the Broker Warrants, including the number of Common Shares which are to be received upon the exercise thereof, the Corporation shall take any corporate action which may, in the opinion of Corporation’s counsel, be necessary in order that the Corporation has unissued and reserved in its authorized capital and may validly and legally issue as fully paid and non assessable all the shares which the holders of such Broker Warrants are entitled to receive on the full exercise thereof in accordance with the provisions hereof.

 

ARTICLE 6

COVENANTS OF THE CORPORATION

 

	
			6.1

				
			Covenants of the Corporation

			

 

The Corporation hereby covenants and agrees as follows:

 

	 	
			(a)

				
			subject to Subsection 5.1(b), it will at all times maintain its corporate existence and will carry on its business as currently carried on;

			

 

	 	
			(b)

				
			it will reserve and there will remain unissued out of its authorize capital a sufficient number of Common Shares to satisfy the rights of acquisition provided for in the Broker Warrant Certificate; and

			

 

	 	
			(c)

				
			all Common Shares issued upon exercise of the right to purchase provided for herein shall, upon payment of the Exercise Price therefore, be issued as fully paid and non assessable shares.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

-14-

 

ARTICLE 7

TRANSFER OF BROKER WARRANTS

 

	
			7.1

				
			Transfer of Broker Warrants

			

 

The Broker Warrants evidences by this Broker Warrant Certificate cannot be transferred or otherwise disposed of, in whole or in part, to any person.

 

ARTICLE 8

AMENDMENTS

 

	
			8.1

				
			Amendments Generally

			

 

The terms of the Broker Warrants represented by the Broker Warrant Certificate may be amended only by a written instrument signed by the Corporation and the Holder.

 

ARTICLE 9

Notices

 

	
			9.1

				
			Notices

			

 

Notices required or permitted to be given hereunder shall be validly given by a party if such notice is sent to the address of the other party at the address of such party hereinbefore set forth. Such address may be changed from time to time by a party on written notice thereof given by such party to the other party.ex_122809.htm

Exhibit 10.1

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

DIAMEDICA THERAPEUTICS INC.

STOCK OPTION PLAN

 

Amended and Restated December 21, 2017

 

	
			1.

				
			The Plan

			

 

A stock option plan (the "Plan") pursuant to which options (hereinafter, an "Option" or "Options") to purchase common shares or such other shares or other securities as may be substituted therefor or may be acquired by a Participant (as defined in Section 6 hereof) upon the exercise of an Option the terms of which have been modified in accordance with section 15 below (collectively, the "Shares") in the capital of DiaMedica Therapeutics Inc. (the "Corporation") may be granted to the Participants is hereby established on the terms and conditions herein set forth.

 

	
			2.

				
			Purpose

			

 

The purpose of this Plan is to advance the interests of the Corporation by encouraging the directors, officers and key employees of the Corporation and consultants retained by the Corporation to acquire Shares, thereby:

 

	 	
			(a)

				
			increasing the proprietary interests of such persons in the Corporation;

			

 

	 	
			(b)

				
			aligning the interests of such persons with the interests of the Corporation's shareholders generally;

			

 

	 	
			(c)

				
			encouraging such persons to remain associated with the Corporation; and

			

 

	 	
			(d)

				
			furnishing such persons with an additional incentive in their efforts on behalf of the Corporation.

			

 

	
			3.

				
			Administration

			

 

	 	
			(a)

				
			This Plan shall be administered by the board of directors of the Corporation (the "Board").

			

 

	 	
			(b)

				
			Subject to the terms and conditions set forth herein, the Board is authorized to provide for the granting, exercise and method of exercise of Options, all on such terms as it shall determine in its sole discretion. In addition, the Board shall have the authority to:

			

 

	 	
			(i)

				
			construe and interpret this Plan and all option agreements entered into hereunder;

			

	 	
			(ii)

				
			prescribe, amend and rescind rules and regulations relating to this Plan; and

			

	 	
			(iii)

				
			make all other determinations necessary or advisable for the administration of this Plan. All determinations and interpretations made by the Board shall be binding on all Participants (as hereinafter defined) and on their legal, personal representatives and beneficiaries of the Participants.

			

 

	 	
			(c)

				
			Notwithstanding the foregoing or any other provision contained herein, the Board shall have the right to delegate the administration and operation of this Plan, in whole or in part, to a committee of the Board or to the President or any other officer of the Corporation. Whenever used herein, the term “Board” shall be deemed to include any committee or officer to which the Board has, fully or partially, delegated responsibilities and/or authority relating to the Plan or the administration and operation of the Plan pursuant to this section 3.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	 	
			(d)

				
			Options to purchase the Shares granted hereunder shall be evidenced by an agreement, signed on behalf of the Corporation and by the person to whom an Option is granted, which agreement shall be in such form as the Board shall approve, as amended from time to time by the Board.

			

 

	
			4.

				
			Shares Subject to Plan

			

 

	 	
			(a)

				
			Subject to section 15 below, the securities that may be acquired by Participants under this Plan shall consist of authorized but unissued common shares of the Corporation.

			

 

	 	
			(b)

				
			The aggregate number of Shares reserved for issuance under this Plan shall not exceed ten (10%) percent of the issued shares of the Corporation at the relevant time and the aggregate number of Shares reserved for issuance under any compensation or incentive mechanism or plan (including deferred share unit plans or employee stock option plans, if any) granted by the Corporation, including this Plan, shall not exceed ten (10%) percent of the issued shares of the Corporation at the relevant time.

			

 

	 	
			(c)

				
			If any Option granted under this Plan shall expire or terminate for any reason without having been exercised in full, any unpurchased Shares to which such Option relates shall be available for the purposes of the granting of Options under this Plan.

			

 

	
			5.

				
			Maintenance of Sufficient Capital

			

 

The Corporation shall at all times during the term of this Plan ensure that the number of Shares it is authorized to issue shall be sufficient to satisfy the requirements of this Plan.

 

	
			6.

				
			Eligibility and Participation

			

 

	 	
			(a)

				
			The Board may from time to time, in its sole discretion, grant an Option to any Participant, upon such terms, conditions and limitations as the Board may determine, including the terms, conditions and limitations set forth herein and pursuant to the terms and conditions of an individual option agreement set forth as Schedule "A", provided that Options granted to any Participant shall be approved by the applicable shareholders of the Corporation if the rules of the TSX Venture Exchange (the “Exchange”) require such approval. A reduction in the exercise price of an Option previously granted to a Participant who is currently an Insider, as defined by the Exchange, shall receive approval from the disinterested shareholders of the Corporation.

			

 

	 	
			(b)

				
			The Board may, in its discretion, select any of the following Persons to participate in this Plan, provided that any such Person, at the time of issuance, was:

			

 

	 	
			(i)

				
			a member of the Board of the Corporation or any subsidiary of the Corporation;

			

 

	 	
			(ii)

				
			a senior officer of the Corporation or any subsidiary of the Corporation;

			

 

	 	
			(iii)

				
			an Employee of the Corporation, or any subsidiary of the Corporation;

			

 

	 	
			(iv)

				
			a Management Company Employee of the Corporation or any subsidiary of the Corporation; or

			

 

	 	
			(v)

				
			a Consultant retained by the Corporation or any subsidiary of the Corporation;

			

 

	 	
			(vi)

				
			a Consultant retained to carry out Investor Relations Activities for the Corporation.

			

 

Any such person having been selected for participation in this Plan by the Board is herein referred to as a "Participant". When such Participant is an Employee, Consultant or Management Company Employee, the Corporation represents that the Participant is a bona fide Employee, Consultant or Management Company Employee.

 

2

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	
			(c)

				
			Where used herein:

			

 

"Consultant" means an individual (or a company controlled by such individual) who:

 

	 	
			(i)

				
			provides ongoing consulting services to the Corporation or any subsidiary of the Corporation under a written contract, and

			

 

	 	
			(ii)

				
			possesses technical, business or management expertise of value to the Corporation or any subsidiary of the Corporation, and

			

 

	 	
			(iii)

				
			spends a significant amount of time and attention on the business and affairs of the Corporation or any subsidiary of the Corporation; and

			

 

	 	
			(iv)

				
			has a relationship with the Corporation of any subsidiary of the Corporation that enables the individual to be knowledgeable about the business and affairs of the Corporation.

			

 

"Employee" means:

 

	 	
			(i)

				
			an individual who is considered an employee under the Income Tax Act (Canada) (i.e. for whom income tax, employment insurance and CPP deductions must be made at source); or

			

 

	 	
			(ii)

				
			an individual who works full time for the Corporation providing services normally provided by an employee and who is subject to the same control and direction by the Corporation over the details and methods of work as an employee of the Corporation, but for whom income tax deductions are not made at source; or

			

 

	 	
			(iii)

				
			an individual who works for the Corporation on a continuing and regular basis for a minimum amount of time per week providing services normally provided by an employee and who is subject to the same control and direction of the Corporation over the details and methods of work as an employee of the Corporation, but for whom income tax deductions are not made at source.

			

 

"Investor Relations Activities" means activities or oral or written communications, by or on behalf of the Corporation or a shareholder of the Corporation, that promote or reasonably could be expected to promote the purchase or sale of securities of the Corporation, but does not include:

 

	 	
			(i)

				
			the dissemination of information provided, or records prepared, in the ordinary course of business of the Corporation:

			

 

	 	
			a.

				
			to promote the sale of products or services of the Corporation; or

			

 

	 	
			b.

				
			to raise public awareness of the Corporation,

			

 

that cannot reasonably be considered to promote the purchase or sale of securities of the Corporation;

 

	 	
			(ii)

				
			activities or communications necessary to comply with the requirements of:

			

 

	 	
			a.

				
			any and all securities laws applicable to the Corporation; or

			

 

	 	
			b.

				
			requirements of the Exchange or the by-laws, rules or other regulatory instruments of any other self regulatory body or exchange having jurisdiction over the Corporation;

			

 

3

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	 	
			(iii)

				
			communications by a publisher of, or writer for, a newspaper, magazine or business or financial publication, that is of general and regular paid circulation, distributed only to subscribers to it for value or to purchaser of it, if:

			

 

	 	
			a.

				
			the communication is only through the newspaper, magazine or publication; and

			

 

	 	
			b.

				
			the publisher or writer receives no commission or other consideration other than for acting in the capacity of publisher or writer; or

			

 

	 	
			(iv)

				
			activities or communications that may be otherwise specified by the Exchange.

			

 

"Management Company Employees" means individuals employed by a Person providing management services to the Corporation, which are required for the ongoing successful operation of the business enterprise of the Corporation, but excluding a Person engaged in Investor Relations Activities;

 

"Person" means a corporation, incorporated association or organization, body corporate, partnership, trust, association or other entity other than an individual, or an individual.

 

	
			7. 

				
			Exercise Price

			

 

The Board shall, at the time an Option is granted under this Plan, fix the exercise price at which Shares may be acquired upon the exercise of such Option provided that the minimum exercise price shall not be less than the Discounted Market Price. The Discounted Market Price is the Market Price of the Shares, less a discount which shall not exceed 25% if the Market Price is $0.50 or less, 20% if the Market Price is from $0.51 to $2.00 and 15% if the Market Price is above $2.00. Where used herein " Market Price" means, subject to certain exceptions required by the rules of the Exchange, the last daily closing price of the Shares before either the issuance of the news release or the filing of a price reservation form (Form 4N) required to fix the price at which the securities are issued or deemed to be issued.

 

	
			8. 

				
			Number of Optioned Shares

			

 

The number of Shares that may be acquired under an Option granted to a Participant shall be determined by the Board as at the time the Option is granted, provided that:

 

	 	
			(a)

				
			no more than 5% of the issued shares of the Corporation may be granted to any one Participant (not including a Consultant or an employee conducting investor relation activities) in any 12 month period (unless the Corporation has obtained disinterested shareholder approval within the meaning of Exchange policies);

			

 

	 	
			(b)

				
			Insiders (as defined by the Exchange) may not be granted more than ten percent (10%) of the total number of issued and outstanding Shares within a twelve (12) month period (calculated on a non-diluted basis);

			

 

	 	
			(c)

				
			at no time shall the number of Shares reserved for issuance under stock options granted to Insiders exceed 10% of the issued and outstanding Shares;

			

 

	 	
			(c)

				
			no more than 2% of the issued shares of the Corporation may be granted to any one Consultant in any 12 month period; and

			

 

	 	
			(d)

				
			no more than an aggregate of 2% of the issued shares of the Corporation may be granted to all persons employed in Investor Relations Activities, in any 12 month period.

			

 

4

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	
			9.

				
			Term

			

 

The period during which an Option may be exercised (the "Option Period") shall be determined by the Board at the time the Option is granted, subject to any vesting limitations which may be imposed by the Board in its sole unfettered discretion at the time such Option is granted, provided that:

 

	 	
			(a)

				
			for a Participant other than a person employed in Investor Relations Activities, no Option shall be exercisable for a period exceeding ten (10) years from the date the Option is granted unless otherwise specifically provided by the Board and authorized by the Exchange, if applicable;

			

 

	 	
			(b)

				
			for a Participant employed in Investor Relations Activities, no Option shall be exercisable for a period exceeding twelve (12) months from the date the Option is granted, with no more than one-fourth (1/4) of the Options vesting in any three (3) month period;

			

 

	 	
			(c)

				
			the Option Period shall be automatically reduced in accordance with Sections 11 and 12 below upon the occurrence of any of the events referred to therein; and

			

 

	 	
			(d)

				
			no Option in respect of which shareholder approval is required under the rules of any Exchange shall be exercisable until such time as the Option has been approved by the shareholders of the Corporation.

			

 

If the end of the Option Period occurs during a Blackout Period applicable to the Participant, or within five business days after the expiry of a Blackout Period applicable to the relevant Participant, then the end of such Option Period for that Option will be the date that is the tenth business day after the expiry date of the Blackout Period. Where used herein “Blackout Period” means the period during which the relevant Participant is prohibited from exercising an Option due to trading restrictions imposed by the Corporation in accordance with its securities trading policies governing trades by Directors, Officers and Employees in the Corporation’s securities. The Blackout Period must be formally imposed by the Corporation pursuant to its internal trading policies as a result of the bona fide existence of undisclosed Material Information (as defined in applicable securities legislation), and the Blackout Period must expire upon the general disclosure of such undisclosed Material Information. The automatic extension of a Participant’s options will not be permitted where the Participant or the Corporation is subject to a cease trade order (or similar order under applicable securities laws) in respect of the Corporation’s securities.

 

10.     Method of Exercise of Option

 

	 	
			(a)

				
			Except as set forth in Sections 11 and 12 below or as otherwise determined by the Board, no Option may be exercised unless the holder of such Option is, at the time the Option is exercised, a Participant.

			

 

	 	
			(b)

				
			Options may be exercised in whole or in part and may be exercised on a cumulative basis where a vesting limitation has been imposed at the time of grant.

			

 

	 	
			(c)

				
			Any Participant (or his legal, personal representative) wishing to exercise an Option shall deliver to the Corporation, at its principal office in the City of Winnipeg, Manitoba:

			

 

	 	
			(i)

				
			a written notice expressing the intention of such Participant (or his or her legal, personal representative) to exercise his or her Option and specifying the number of Shares in respect of which the Option is exercised; and

			

 

	 	
			(ii)

				
			a cash payment, cheque or bank draft, representing the full purchase price of the Shares in respect of which the Option is exercised.

			

 

5

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	 	
			(d)

				
			Upon the exercise of an Option as aforesaid, the Corporation shall use its reasonable efforts to forthwith deliver, or cause the registrar and transfer agent of the Shares to deliver, to the relevant Participant (or his or her legal, personal representative) or to the order thereof, a certificate representing the aggregate number of fully paid and non-assessable Shares as the Participant (or his or her legal, personal representative) shall have then paid for.

			

 

	
			11.

				
			Ceasing to be a Director, Officer, Employee or Consultant

			

 

If any Participant shall cease to be a member of the Board, senior officer, Employee, Management Company Employee or Consultant of the Corporation or any subsidiary of the Corporation for any reason other than death, permanent disability or normal retirement, his or her Option will terminate at 5:00 p.m. (Minneapolis time) on the earlier of the date of the expiration of the Option Period and:

 

	 	
			(a)

				
			for Participants other than those employed in Investor Relations Activities, 90 days after the date such Participant ceases to be a member of the Board, senior officer, Employee, Management Company Employee or Consultant of the Corporation, or any subsidiary of the Corporation; and

			

 

	 	
			(b)

				
			for Participants employed in Investor Relations Activities, 30 days after the date such Participant ceases to be employed in Investor Relations Activities.

			

 

If such cessation or termination is by reason of substantial breach or cause on the part of the Participant, the Options shall be automatically terminated forthwith and shall be of no further force or effect.

 

Neither the selection of any person as a Participant nor the granting of an Option to any Participant under this Plan shall

 

	 	
			(c)

				
			confer upon such Participant any right to continue as a director, senior officer, Employee, Management Company Employee or Consultant of the Corporation, or any subsidiary of the Corporation as the case may be, or

			

 

	 	
			(d)

				
			be construed as a guarantee that the Participant will continue as a member of the Board, senior officer, Employee, Management Company Employee or Consultant of the Corporation, or any subsidiary of the Corporation as the case may be.

			

 

	
			12.

				
			Death, Permanent Disability or Normal Retirement of a Participant

			

 

In the event of the death, permanent disability or normal retirement of a Participant, any Option previously granted to such Participant shall be exercisable until the end of the Option Period or until the expiration of 12 months or a period determined by the board, after the date of death, permanent disability or normal retirement of such Participant, whichever is earlier, and then, in the event of death or permanent disability, only:

 

	 	
			(a)

				
			by the Participant or person or persons to whom the Participant's rights under the Option shall pass by the Participant's Will or by applicable law; and

			

 

	 	
			(b)

				
			to the extent that the Participant was entitled to exercise the Option as at the date of his death or permanent disability.

			

 

	
			13.

				
			Rights of Participants

			

 

No person entitled to exercise any Option granted under this Plan shall have any of the rights or privileges of a shareholder of the Corporation in respect of any Shares issuable upon exercise of such Option until such Shares have been paid for in full and issued to such person.

 

6

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	
			14.

				
			Proceeds from Exercise of Options

			

 

The proceeds from any sale of Shares issued upon the exercise of Options shall be added to the general funds of the Corporation and shall thereafter be used from time to time for such corporate purposes as the Board may determine and direct.

 

	
			15.

				
			Adjustments

			

 

	 	
			(a)

				
			Notwithstanding any other provision of this Plan, in the event of any change in the outstanding Shares of the Corporation by reason of any stock dividend, split, recapitalization, reclassification, amalgamation, merger, consolidation, combination or exchange of Shares or distribution of rights to holders of Shares or any other form of corporate reorganization whatsoever, an equitable adjustment shall be made to any Options then outstanding and the exercise price in respect of such Options.

			

 

	 	
			(b)

				
			Adjustments under this section 15 shall be made by the Board, whose determination as to what adjustments shall be made, and the extent thereof, shall be final, binding and conclusive. No fractional Shares shall be issued under this Plan on any such adjustment.

			

 

	
			16.

				
			Transferability

			

 

All benefits, rights and Options accruing to any Participant in accordance with the terms and conditions of this Plan shall not be transferable or assignable except, where qualified, to a Registered Retirement or similar plan where the Participant is the annuitant thereof, or to a family trust controlled by the Participant. During the lifetime of a Participant, any Options granted hereunder may only be exercised at the direction of the Participant and in the event of the death or permanent disability of a Participant, by the person or persons to whom the Participants rights under the Option pass by the Participant's Will or by applicable law.

 

	
			17.

				
			Amendment and Termination of Plan

			

 

	 	
			(a)

				
			Subject to any specific limitations contained in the Plan, the Board reserves the right, in its absolute discretion, to at any time amend, modify or terminate the Plan.

			

 

	 	
			(b)

				
			Notwithstanding subparagraph 17(a), the Board may not, without approval of the holders of a majority of the issued and outstanding equity securities of the Corporation present and voting in person or by proxy at a meeting of holders of such securities, amend the Plan or an Option to:

			

 

	 	
			a.

				
			increase the number of Shares reserved for issuance under the Plan;

			

	 	
			b.

				
			make any amendment that would reduce the Exercise Price of an outstanding Option granted to an Insider (including a cancellation and reissue of an Option to an Insider at a reduced Exercise Price);

			

	 	
			c.

				
			amend or delete section 9 to extend the term of any Option beyond the Option Period of the Option or, except as already contemplated under section 9, allow for the Option Period of an Option to be greater than 10 years;

			

	 	
			d.

				
			permit assignments, or exercises other than by the Participant, of Options beyond that contemplated by section 16, except for an amendment that would permit the assignment of an Option for estate planning or estate settlement purposes; and

			

	 	
			e.

				
			amend the Plan to provide for other types of compensation through equity issuance.

			

 

Pursuant to section 6(a) hereof, the amendments referred to at section 17(b)(b) shall require the approval of disinterested shareholders of the Corporation.

 

7

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	 	
			(c)

				
			Without limiting the generality of subparagraph 17(a), the Board may make the following amendments to the Plan without obtaining shareholder approval:

			

 

	 	
			a.

				
			amendments to the terms and conditions of the Plan necessary to ensure that the Plan complies with the applicable regulatory requirements, including without limitation Exchange policies or the rules of any national securities exchange or system on which the Shares are then listed or reported, or by any regulatory body having jurisdiction with respect thereto;

			

	 	
			b.

				
			making adjustments to outstanding Options in the event of certain corporate transactions;

			

	 	
			c.

				
			the addition of a cashless exercise feature, payable in cash or securities, whether or not such feature provides for a full deduction of the number of underlying securities from the Plan reserve;

			

	 	
			d.

				
			a change to the termination provisions of a security or the Plan which does not entail an extension beyond the original Option Period;

			

	 	
			e.

				
			amendments to the provisions of the Plan respecting administration of the Plan and eligibility for participation under the Plan;

			

	 	
			f.

				
			amendments to the provisions of the Plan respecting the terms and conditions on which options may be granted pursuant to the Plan, including the provisions relating to the Subscription Price, the option period, and the vesting schedule;

			

	 	
			g.

				
			amendments in order to ensure that the Plan and the Options granted hereunder comply with applicable law from time to time, including without limitation requirements contained in the Income Tax Act (Canada), as amended; and

			

	 	
			h.

				
			amendments to the Plan that are of a “housekeeping nature”.

			

 

	
			18. 

				
			Necessary Approvals

			

 

The obligation of the Corporation to issue and deliver Shares in accordance with this Plan is subject to applicable securities legislation and to the receipt of any approvals that may be required from any regulatory authority to stock exchange having jurisdiction over the securities of the Corporation. If Shares cannot be issued to a Participant upon the exercise of an Option (for any reason whatsoever) the obligation of the Corporation to issue such Shares shall terminate and any funds paid to the Corporation in connection with the exercise of such Option will be returned to the relevant Participant as soon as practicable.

 

	
			19. 

				
			Stock Exchange Rules

			

 

This Plan and any option agreements entered into hereunder shall comply with the requirements from time to time of the Exchange.

 

	
			20. 

				
			Right to Issue Other Shares

			

 

The Corporation shall not by virtue of this Plan be in any way restricted from declaring and paying stock dividends, issuing further shares of any class of the Corporation, including, without limitation, Shares, varying or amending its share capital or corporate structure or conducting its business in any way whatsoever.

 

	
			21. 

				
			Notice

			

 

Any notice required to be given by this Plan shall be in writing and shall be given by registered mail, postage prepaid or delivered by courier or by facsimile transmission addressed, if to the Corporation, at the principal address of its wholly owned subsidiary, DiaMedica USA Inc., in Minneapolis, Minnesota (being currently: Two Carlson Parkway, Suite 260, Minneapolis, Minnesota 55447, USA), Attention: The President; or if to a Participant, to such Participant at his or her address as it appears on the books of the Corporation or in the event of the address of any such Participant not so appearing then to the last known address of such Participant; or if to any other person, to the last known address of such person.

 

Gender

 

Whenever used herein words importing the masculine gender shall include the feminine and neuter genders and vice versa.

 

8

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

	
			22. 

				
			Interpretation

			

 

This Plan will be governed by and construed in accordance with the laws of the Province of British Columbia, and the federal laws of Canada applicable therein.

 

DATED this 21st day of December, 2017.

 

DiaMedica Therapeutics Inc. 

Per: /s/ Rick Pauls

 

Per: President and Chief Executive Officer

 

9

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