Document:

Exhibit

EXHIBIT 10.2

CONFIDENTIAL TREATMENT REQUESTED

Confidential material has been separately filed with the Securities and Exchange Commission under an application for confidential treatment. Terms for which confidential treatment has been requested have been omitted and marked with an asterisk [*].

Executive Agreement
This Executive Agreement is made and entered into by [NAME] (“Executive”) and Dollar Tree, Inc. and each of its subsidiaries (collectively, the “Company”). The Executive and the Company hereby agree as follows: 
		
	1.
	Effective Date.  This Executive Agreement (the “Agreement”) shall become effective on [DATE], (the “Effective Date”).

		
	2.
	Covenants.  The following covenants are several and survive the termination of the other provisions of this Agreement and survive the termination of Executive’s employment for any reason (the final day of Executive’s employment with the Company is the “Separation Date”), whether or not Executive receives severance under this Agreement.

		
	a.
	Confidential Information. Executive understands and acknowledges that during the course of Executive’s employment by the Company, Executive will have access to and learn about Confidential Information belonging to the Company.  

For purposes of this Agreement, “Confidential Information” is all information not generally known to the public and developed or maintained by the Company or its agents in spoken, printed, electronic or any other form or medium, relating directly or indirectly to the Company’s: business processes, practices, methods, policies, plans, operations, strategies, agreements, contracts, transactions, potential transactions, know-how, trade secrets, intellectual property, works-in-process, databases, systems, vendor and supplier information, financial information, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, personnel information, market studies, sales information, revenue, costs, customer information, manufacturing information, transportation and logistics information, and factory lists of the Company or of any other person or entity that has entrusted information to the Company in confidence. 
Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. 
Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating and developing its vendor base, increasing its customer base, expanding the number of geographic markets in which it operates, training its executives, developing best operational practices, and 

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negotiating highly competitive prices in the discount retail sector so as to provide the best value possible to its customers.  Executive understands and acknowledges that as a result of these ongoing efforts, the Company has created, and continues to use and create, Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace, and it is essential to the Company’s success moving forward. 
 
Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to Executive, provided that such disclosure is through no direct or indirect fault of Executive or anyone acting on Executive’s behalf.
		
	i.
	Disclosure and Use Restrictions.  Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other executives and employees of the Company not having a need to know such information); (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the Company, except as required in the performance of Executive’s authorized employment duties to the Company or with the prior consent of Executive’s supervisor; and (iv) to immediately return and not retain, in any form, any such Confidential Information upon the Separation Date. Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid subpoena or order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or subpoena/order. Executive shall promptly provide written notice of any such order to the Company’s Chief Legal Officer, if permitted by law to do so.

Executive understands and acknowledges that Executive’s obligations under this Agreement with regard to any particular Confidential Information shall commence immediately upon Executive’s first having access to such Confidential Information and shall continue during and after Executive’s employment by the Company until such time as such Confidential Information has become public knowledge other than as a result of Executive’s breach of this Agreement or breach by those acting in concert with Executive or on Executive’s behalf.

		
	ii.
	Whistleblower Protection and Notice of Immunity under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016.  Notwithstanding any other provision of this Agreement or any other agreement or Company policy, Executive will not be held liable under this Agreement or any other agreement or Company policy or any federal or state trade secret law for any disclosure of a trade secret or other Confidential Information that is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (iii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.

49

		
	b.
	Covenant Not to Compete.  

		
	i.
	Acknowledgment. Executive understands that the senior nature of Executive’s position gives Executive access to and knowledge of Confidential Information and places Executive in a position of trust and confidence with the Company and, further, that the improper use or disclosure by Executive of Confidential Information is likely to result in unfair or unlawful competitive activity that would substantially harm the Company.  Executive understands and acknowledges that Executive’s experience and expertise relating to the business of a retailer are unique and specialized, and that the Company’s ability to reserve these talents for the exclusive knowledge and use of the Company during Executive’s employment and for a reasonable period thereafter is of great competitive importance and commercial value to the Company.

		
	ii.
	Non-Competition. Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered to Executive herein, during Executive’s employment and for a [*] period beginning on the Separation Date, Executive agrees and covenants that Executive will not engage in any Prohibited Activity (as defined below) [*] for a Competitor (as defined below) [*]. This restrictive covenant applies whether Executive’s employment is terminated by Executive or by the Company for any reason or no reason.  

		
	1.
	For purposes of this non-compete, “Prohibited Activity” is [*].  

		
	2.
	A “Competitor” is defined as [*].

		
	3.
	“Restricted Area” is defined as [*].

 
		
	iii.
	Nothing herein shall prohibit Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that Executive is not a controlling person of, or a member of a group that controls, such corporation. 

		
	c.
	Non-Piracy of Company Executives.  Executive agrees and covenants that, for a period of [*] from the Separation Date, Executive shall not directly or indirectly solicit, hire, recruit, or attempt to hire or recruit, any Company Executive, or induce the termination of employment of any Company Executive.  “Company Executive” means any person who at the time of, or within three months immediately prior to, the solicitation, hiring, recruitment, or inducement, was employed by the Company at a Director-level or more senior position.  The types of communication prohibited by this provision explicitly include all forms of oral, written, or electronic communication, including, but not limited to, communications by email, regular mail, express mail, telephone, fax, instant message, and social media, where the purpose of or reasonably anticipated impact or consequence of the communication would be to solicit, hire or recruit such person.  For the avoidance of doubt, this restriction applies regardless of whether the Executive or the Company Executive initiated the first communication.  

		
	d.
	Non-Disparagement.  Executive agrees and covenants that, during Executive’s employment and for a period of [*] after the Separation Date, Executive will not make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company, or any of its executives, directors, and officers.  This Section does not, in any way, restrict or impede Executive from exercising protected rights to the extent that such rights cannot be waived by agreement, including but not limited to Executive’s right to make a complaint or charge with or respond to an inquiry from any 

50

government agency, or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency.  

		
	e.
	Acknowledgment. Executive acknowledges and agrees that the services Executive will render to the Company are of a special and unique character; that Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business, and logistical, operational, merchandising and marketing strategies by virtue of Executive’s employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interests of the Company. 

Executive affirms that Executive will not be subject to undue hardship or an unreasonable restraint on Executive’s ability to earn a livelihood by reason of Executive’s full compliance with the terms and conditions of this Agreement or the Company’s enforcement thereof; and that this Agreement is not a contract of employment and shall not be construed as a commitment by either of the Parties to continue an employment relationship for any certain period of time.

Executive’s obligations under each of Sections 2(a)(i), 2(b)(ii), 2(c), and 2(d) above are separable and independently enforceable of each other and of any legal obligations that may exist between the Company and Executive. The real or perceived existence of any claim or cause of action of Executive against the Company, whether predicated on this Agreement or some other basis, will not alleviate Executive of Executive’s obligations under this Agreement and will not constitute a defense to the enforcement by the Company of the restrictions and covenants contained herein.

		
	f.
	Remedies. In the event of a breach or threatened breach by Executive of any of the restrictive covenants of this Agreement, Executive hereby consents and agrees that the Company shall be entitled to seek (notwithstanding the Parties’ Mutual Agreement to Arbitrate Claims), in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief including without limitation a claim for disgorgement of any severance paid to Executive pursuant to Section 4 below.  

		
	3.
	Termination of Employment.  Executive’s employment may be terminated by either the Company or the Executive at any time and for any reason, with or without prior notice, and without liability except as set forth herein.  

		
	4.
	Severance Opportunity.  Upon termination of Executive’s employment by the Company without Cause or by Executive’s Death or Disability, in addition to any accrued but unpaid base salary and any vested rights under any Company employee benefit plan, the Executive shall be entitled to receive the following severance benefits, receipt of which is subject to (a) Executive’s full and continued compliance with the Covenants set forth in Section 2 of this Agreement; (b) Executive’s execution, and non-revocation, of a separation agreement containing a release of claims in favor of the Company, its affiliates, and their respective officers and directors, and other relevant provisions in a form provided by and acceptable to the Company (the “Release”); and (c) Executive’s agreement to forego any other severance payment to which Executive may be entitled under any other agreement with the Company: 

		
	a.
	Continued Base Salary for [*] following the Separation Date, payable in equal installments in accordance with the Company’s normal payroll practices, which payments shall commence on 

51

the next scheduled payroll date after the effective date of the Release (“Salary Continuation Period”).  In the event Executive accepts an offer of employment or an offer to provide services in a consulting or other capacity during the Salary Continuation Period, Executive agrees to so inform the Company within three (3) business days, at which time Salary Continuation payments under this Section 4(a) shall cease.  
		
	b.
	If Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall reimburse Executive for the monthly COBRA premium paid by Executive for Executive and Executive’s qualified beneficiaries during the Salary Continuation Period.  Such reimbursement shall be paid to Executive on a monthly basis, within ten (10) business days following the month in which Executive timely remits the premium payment.  In the event Executive receives or becomes eligible to receive substantially similar coverage from another employer or other source during the Salary Continuation Period, Executive agrees to so inform the Company within three (3) business days, at which time COBRA reimbursements shall cease.  Executive shall be solely responsible for the tax consequences of any such payments. 

		
	c.
	The treatment of any outstanding equity awards shall be determined in accordance with the terms of the Dollar Tree, Inc. Omnibus Incentive Plan or any other applicable plan or award agreement under which the equity awards were granted and nothing in this Agreement shall be construed as superseding the terms of any such plan or award.  

		
	d.
	For purposes of this Agreement, “Disability” shall mean (i) Executive’s inability, due to physical or mental incapacity, to perform the essential functions of Executive’s job, with or without reasonable accommodation, for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty (120) consecutive days, or (ii) Executive’s entitlement to receive long-term disability benefits under the Company’s long-term disability plan.  Any question as to the existence of Executive’s Disability as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician selected by the Company, which determination shall be final and conclusive for all purposes of this Agreement.

		
	e.
	For purposes of this Agreement, “Cause” shall mean Executive’s: (i) failure to perform Executive’s duties (other than any such failure resulting from Disability); (ii) engagement in dishonesty, illegal conduct, or gross misconduct, which is, in each case, injurious to the Company; (iii) embezzlement, misappropriation, or fraud, whether or not related to Executive’s employment with the Company; (iv) conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude; (v) willful unauthorized disclosure of Confidential Information; (vi) breach of any material obligation under this Agreement; or (vii) failure to comply with material Company written policies or rules, as they may be in effect from time to time.

		
	f.
	The Company intends the payments payable to Executive upon a termination of employment to be excepted from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) to the extent permissible and that each payment hereunder shall be treated as a separate payment for purposes of Section 409A of the Code.  To the extent that any payment hereunder is subject to Section 409A of the Code, it shall be administered in compliance with the requirements thereof.  To the extent required to avoid a violation of Section 409A of the Code, to the extent that the period between Executive’s termination of employment and the date on which the Release may become effective includes two calendar years, no payment under Section 4.a shall be made until the second calendar year.

		
	g.
	Executive shall not be entitled to severance benefits if the Executive voluntarily resigns for any reason, including reasons that the Executive may assert constitute constructive discharge.

52

		
	5.
	Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of the State of Delaware, without regard to conflicts-of-law principles. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought in accordance with the requirements of the Parties’ Mutual Agreement to Arbitrate Claims, or any other arbitration agreement between the Parties, except that the Company may seek temporary or permanent injunctive relief or other forms of immediate relief related to a breach by Executive of any of the covenants in this Agreement in the state or federal courts located in Wilmington, Delaware or Norfolk, Virginia. 

		
	6.
	Entire Agreement. Unless specifically provided herein, this Agreement and the Mutual Agreement to Arbitrate Claims (or any other arbitration agreement between the Parties) contain all the understandings and representations between Executive and the Company pertaining to the subject matter hereof and supersede all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. 

		
	7.
	Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by Executive and by the Chief Executive Officer of the Company. No waiver by either of the Parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition.

		
	8.
	Severability. Should any provision of this Agreement be held by a court or arbitral authority of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding on the Parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.  The Parties further agree that any such court or arbitral authority is expressly authorized to modify any unenforceable provision of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement this [DATE]. 

EXECUTIVE                                                  DOLLAR TREE, INC. and its subsidiaries

By: _________________________________      By: ___________________________________
Name:                                                                Name: 
             Title:                                                                  Title:

53ex_125607.htm

 

Exhibit 10.4

 

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 November 6, 2018 (the “Effective Date”)

 

	
			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)

				
			Subject to section 15 below, the aggregate number of Shares reserved for issuance under this Plan shall not exceed the lesser of 15,678,351 Shares and 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. In addition, in order that the applicable regulations under the United States Internal Revenue Code of 1986, as amended (the “Code”) relating to an Option that is designated as and intended to meet the requirements of an “incentive stock option” within the meaning of Section 422 of the Code (an “Incentive Stock Option”) be satisfied, the maximum number of Shares that may be issued under this Plan upon the exercise of Incentive Stock Options shall be equal to 15,678,351 Shares, subject to section 15 below.

			

 

	 	
			(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 in any individual option agreement between the Corporation and the Participant, 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;

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	 	
			(iv)

				
			a Consultant of the Corporation, or any Subsidiary of 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 or Consultant, the Corporation represents that the Participant is a bona fide Employee or Consultant.

			

 

	
			 

				
			For purposes of this Plan, “Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Corporation has or obtains, directly or indirectly, an interest of more than fifty percent (50%) by reason of stock ownership or otherwise.

			

 

	 	
			(c)

				
			Where used herein:

			

 

	
			 

				
			“Consultant” means an individual who:

			

 

	 	
			(i)

				
			provides ongoing consulting services to the Corporation or any subsidiary of the Corporation under a written contract, which services (a) are not in connection with the offer and sale of the Corporation’s securities in a capital raising transaction and (b) do not directly or indirectly promote or maintain a market for the Corporation’s securities, 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.

			

 

	
			 

				
			“Person” means an individual.

			

 

	 	
			(d)

				
			Incentive Stock Options may be granted solely to eligible Employees of the Corporation or a Subsidiary. The Board may designate whether an Option is to be considered an Incentive Stock Option or not. To the extent that any Incentive Stock Option (or portion thereof) granted under this Plan ceases for any reason to qualify as an “incentive stock option” for purposes of Section 422 of the Code, such Incentive Stock Option (or portion thereof) will continue to be outstanding for purposes of this Plan but will thereafter be deemed to be a non-statutory stock option. Options may be granted to a Participant for services provided to a Subsidiary only if, with respect to such Participant, the underlying Shares constitute “service recipient stock” within the meaning of Treas. Reg. Sec. 1.409A-1(b)(5)(iii) promulgated under the Code.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	
			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 Market Price; provided, however, that such price will not be less than one hundred percent (100%) of the Market Price of one Share on the grant date (one hundred and ten percent (110%) of the Market Price if, at the time the Incentive Stock Option is granted, the Participant owns, directly or indirectly, more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation or any parent or Subsidiary corporation of the Corporation).

			

 

	
			 

				
			Where used herein “ Market Price” means, subject to certain exceptions required by the rules of the Exchange, the higher of: (a) 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 4A) required to fix the price at which the securities are issued or deemed to be issued; or (b) the closing sale price of a Share as of the end of the regular trading session on such date, as reported by the Nasdaq Stock Market or any national securities exchange on which the Shares are then listed (or, if no shares were traded on such date, as of the next preceding date on which there was such a trade) or if the Shares are not so listed, admitted to unlisted trading privileges or reported on any national exchange, the closing sale price as of the immediately preceding trading date at the end of the regular trading session, as reported by the OTC Bulletin Board, OTC Markets or other comparable quotation service (or, if no shares were traded or quoted on such date, as of the next preceding date on which there was such a trade or quote). In the event the Shares are not publicly traded at the time a determination of its value is required to be made hereunder, the determination of Fair Market Value shall be made by the Board in such manner as it deems appropriate and in good faith in the exercise of its reasonable discretion, and consistent with the definition of “fair market value” under Section 409A of the Code. If determined by the Board, such determination will be final, conclusive and binding for all purposes and on all persons, including the Corporation, the shareholders of the Corporation, the Participants and their respective successors-in-interest.

			

 

	
			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 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; and

			

 

	 	
			(c)

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

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	
			9.

				
			Option 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, 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)

				
			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;

			

 

	 	
			(c)

				
			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; and

			

 

	 	
			(d)

				
			no Option may be exercisable after ten (10) years from the grant date (five (5) years from the grant date in the case of an Incentive Stock Option that is granted to a Participant who owns, directly or indirectly, more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation or any parent or subsidiary corporation 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 Minneapolis, Minnesota:

			

 

	 	
			(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

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	 	
			(ii)

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

			

 

	 	
			(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.

			

 

	 	
			(e)

				
			The Corporation is entitled to (a) withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Corporation or a Subsidiary), or make other arrangements for the collection of, all amounts the Corporation reasonably determines are necessary to satisfy any and all federal, foreign, state and local withholding and employment related tax requirements attributable to an Option, including the grant, exercise, vesting or settlement of, or a disqualifying disposition of stock received upon exercise of an Incentive Stock Option, or (b) require the Participant promptly to remit the amount of such withholding to the Corporation before taking any action, including issuing any Shares, with respect to an Option. When withholding Shares for taxes is effected under this Plan, it will be withheld only up to an amount based on the maximum statutory tax rates in the Participant’s applicable tax jurisdiction or such other rate that will not trigger a negative accounting impact on the Corporation. The Board may, in its sole discretion and upon terms and conditions established by the Board, permit or require a Participant to satisfy, in whole or in part, any withholding or employment related tax obligation described herein by withholding Shares underlying an Option, by delivery of a broker exercise notice or a combination of such methods. For purposes of satisfying a Participant’s withholding or employment-related tax obligation, Shares withheld by the Corporation will be valued at their Fair Market Value on the date the tax withholding obligation arises.

			

 

	
			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 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 90 days after the date such Participant ceases to be a member of the Board, senior officer, Employee, or Consultant of the Corporation, or any subsidiary of the Corporation.

			

 

	
			 

				
			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, 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, or Consultant of the Corporation, or any subsidiary of the Corporation as the case may be.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	
			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.

			

 

	
			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 the Share limits contained in section 4 and 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. 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.

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	
			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.

				
			materially increase benefits accruing to Participants;

			

 

	 	
			c.

				
			modify the eligibility requirements for Participants in this Plan;

			

 

	 	
			d.

				
			make any amendment that would reduce the Exercise Price of an outstanding Option or effect or allow for a “repricing” (including a cancellation and reissue of an Option at a reduced Exercise Price);

			

 

	 	
			e.

				
			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;

			

 

	 	
			f.

				
			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

			

 

	 	
			g.

				
			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.

			

 

	
			 

				
			In addition, no amendments to this Plan will be effective without approval of the Corporation’s shareholders if pursuant to Section 422 of the Code, the rules of the primary stock exchange or stock market on which the Shares are then traded, applicable corporate laws or regulations or other applicable law, and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under this Plan.

			

 

	 	
			(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.

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

			

 

	 	
			d.

				
			amendments to the provisions of the Plan respecting administration of the Plan;

			

 

	 	
			e.

				
			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;

			

 

	 	
			f.

				
			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

			

 

 

 

CONFIDENTIAL TREATMENT REQUESTED

BY DIAMEDICA THERAPEUTICS INC.

PURSUANT TO 17 C.F.R. SECTION 200.83

 

 

	 	
			g.

				
			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 and any other Canadian or U.S. national securities exchange on which the Shares may be listed.

			

 

	
			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.

				
			Effective Date and Duration of this Plan

			

 

	
			 

				
			This Plan is effective as of the Effective Date. This Plan will terminate at midnight on November 5, 2028, the day before the ten (10) year anniversary of shareholder approval of this Plan and may be terminated prior to such time by Board action. No Options will be granted after termination of this Plan, but Options outstanding upon termination of this Plan will remain outstanding in accordance with their applicable terms and conditions and the terms and conditions of this Plan

			

 

	
			22. 

				
			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.

			

 

	
			22.

				
			Gender

			

 

	
			 

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

			

 

	
			23.

				
			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.

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