Document:

CC Filed by Filing Services Canada Inc. 403-717-3898

STOCK OPTION AGREEMENT

LEXARIA CORP. 

THIS AGREEMENT is made this 4th day of March, 2009, between Lexaria Corp., a Nevada corporation (the “Corporation”) and __________________ (the “Option Holder”).

1.

Grant of Option.  The Corporation hereby grants to the Option Holder an option to purchase shares of its common stock (the “Shares”) in the amounts and upon the terms set forth below.  

					
	Relationship to Corporation

	No. of Shares Issuable Upon Exercise of Options(1)

	Option Exercise Price

	Date Options are First Exercisable

	Expiration Date of Option (2)

	 
	 
	$0.12

	March 4, 2009

	July 20, 2011

(1)

The options were granted pursuant to the Corporation’s 2007 Equity Incentive Plan (the “Plan”).  To the extent applicable, the provisions of the Plan shall be deemed a part of this Agreement.

(2) 

Expiration date is subject to the provisions of Section 4. 

2.

Time of Exercise of Option.  Subject to the provisions of Section 4 regarding termination of the option, the options granted may be exercised at any time after the date(s) indicated in Section 1 of this Agreement and prior to the Expiration Date of the option.

3.

Method of Exercise.  The option shall be exercised by written notice directed to the Corporation, at the Corporation’s principal place of business, accompanied by check, cash, bank draft or money order payable to the Corporation in payment of the option price for the number of Shares specified.  The Corporation shall make prompt delivery of such Shares, provided that if any law or regulation requires the Corporation to take any action with respect to the Shares specified in such notice before the issuance thereof, then the date of delivery of such Shares shall be extended for the period necessary to take such action.

4.

Termination of Option.  Except as herein otherwise stated, the option, to the extent not previously exercised, shall terminate upon the first to occur of the following events:

(a)

any event provided by the Plan pursuant to which the option was granted (i.e. death, disability, etc.);

(b)

the expiration of the option as provided in Section 1; 

(c)

if the Corporation terminates the Option Holder’s directorship or office with the Corporation for just cause, then the options granted to the Option Holder will expire on the earlier of:

(i)

the expiration of the option as provided in Section 1; and 

(ii)

the date that is 30 days after the date of such termination,

provided that the Option Holder may only exercise those options that are exercisable on the date of such termination;

(d)

if the Option Holder voluntarily terminates his or her directorship or office with the Corporation, then the options granted to the Option Holder will expire on the earlier of:

(i)

the expiration of the option as provided in Section 1; and 

(ii)

the date that is six months after the date of such termination; and

(e)

if the Option Holder ceases to be a director, officer or employee of the Corporation or any of its affiliates for any reason other than cause, then unless otherwise determined by the board of directors, on the recommendation of the board of directors of the Corporation, any option held by the Option Holder at the effective date there of shall become exercisable for a period of up to 12 months.

For the purpose of this Agreement, “just cause” means:

(i) 

an act or acts of dishonesty on the part of the Option Holder resulting or intending to result directly or indirectly in gain or personal enrichment to which the Option Holder was not legally entitled, at the expense of the Corporation; or

(ii)

a material breach of the Option Holder’s duties or responsibilities as a consultant, employee, director or officer of the Corporation resulting in material injury to the Corporation, provided however, that such breach shall not include any act or omission believed by the Option Holder in good faith to have been in or not opposed to the best interests of the Corporation.

5.

Reclassification, Consolidation or Merger.  If the Company amalgamates or merges with or into another corporation, any Shares receivable on the exercise of an option shall be converted into the securities, property or cash which the Participant would have received upon such amalgamation or merger if the Participant had exercised his option immediately prior to the record date applicable to such amalgamation or merger, and the option price shall be adjusted appropriately by the board of directors and such adjustment shall be binding for all purposes of the Plan.

6.

Notice to Corporation of Certain Dispositions.  Any Option Holder disposing of Shares of common stock acquired on the exercise of an option granted pursuant to the Corporation’s Plan by sale or exchange either (a) within two years after the date of the grant of the option under which the Shares were acquired or (b) within one year after the acquisition of such Shares, shall notify the Corporation of such disposition and of the amount realized upon such disposition.

7.

Restricted Stock.  The Shares issuable upon the exercise of any option will be restricted securities as that term is defined in Rule 144 of the Securities and Exchange Commission unless such Shares are covered by an effective registration statement.

8.

Conflict.  In the event of a conflict between this Agreement and the applicable Plan, the terms and conditions of this Agreement shall govern.

9.

Binding Effect.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns.

10.

Execution in Counterparts.  This Agreement may be executed by the parties hereto in as many counterparts as may be necessary, and each such agreement so executed shall be deemed to be an original and, provided that all of the parties have executed a counterpart, such counterparts together shall constitute a valid and binding agreement, and notwithstanding the date of execution shall be deemed to bear the date as set forth above.  Such executed copy may be transmitted by telecopied facsimile or other electronic method of transmission, and the reproduction of signatures by facsimile or other electronic method of transmission will be treated as binding as if originals.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written.

			
	LEXARIA CORP. 

per:

CHRISTOPHER BUNKA, Director, President

	 
	OPTION HOLDER:

______________________Unassociated Document

    EXHIBIT
10.1

    3 March
2009

    

    To Our
Valued Shareholders:

    

    I want to
take this opportunity to thank you for your investment in Simtrol and update you
with regard to the exciting progress we are making toward realizing our goal to
make our company a profitable success and create shareholder value. Most of the
communication you have seen from us over the past several months has centered on
our efforts to build a high performance team with the appropriate skill and
experience to capitalize on Simtrol’s market opportunity. That team is in place
and is working well together.

    

    Our
strategy at this time is to focus on the education market. The classroom of the
21st
century employs numerous devices, including interactive whiteboards, projectors,
computers, DVD players, document cameras, monitors and more. The task of
managing, monitoring and maintaining these devices as well as controlling
related energy consumption across a school district, with potentially thousands
of classrooms, has taken on a life of its own. In today’s difficult times, brute
force solutions involving more money, resources and manpower are no longer
viable options.  School administrators need a market basket of
technology and services to address this need, and Simtrol offers a solution. Our
“Classroom Control” solution (also branded Activcommand by Promethean) supports
“green” initiatives and sustainability by automatically shutting down devices
when they are not in use, and provides school administrators with the ability to
proactively identify maintenance issues and organize support using data gathered
from the devices over the network. The education market has many factors that
are attractive to Simtrol:

    

    
      	
               
      

            	
              ·

            	
              Large,
      growing pools of unmanaged devices

            

    

    
      	
               
      

            	
              ·

            	
              $150
      billion U.S. Government stimulus plan to invest in education - more than
      double the Department of Education’s current annual
  budget

            

    

    
      	
               
      

            	
              ·

            	
              Increasing
      pressure to reduce costs: operations, energy, support, maintenance, and
      supplies

            

    

    
      	
               
      

            	
              ·

            	
              OEM
      partner in Promethean with well established distribution channel &
      large installed base

            

    

    
      	
               
      

            	
              ·

            	
              High-demand
      for interactive technologies in the classroom; they are now a
      ‘must-have’

            

    

    

    

    Our
approach to the education market involves reseller arrangements with partners,
including Promethean (the fastest growing interactive whiteboard manufacturer,
with the leading market share in the K-12 segment) and a select group of large
integration and service providers focused on this market. The Company
will execute a “land and expand” growth strategy.  The plan for 2009
is to sell approximately 75 ‘seed’ systems and 3-5 large footprint installs
(installs greater than 1,000 classrooms) in some of the largest, thought-leading
school districts across the U.S.  The initial sales focus will be
directed at targeting new, large Promethean customers who are in the process of
deploying interactive whiteboards. So far, we have “proof of concept” (POC)
implementations in three districts managing approximately 150 classrooms. These
districts have a total of 10,250 classrooms available for deployment. We
currently have proposals out to 21 districts for POCs representing more than
26,000 classrooms and potential revenue between $2.0 and $2.5 million for
Simtrol. We believe the overall addressable pipeline in education over the next
eighteen months for Simtrol may exceed $30 million.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    In
addition to the education market, we have explored opportunities in healthcare,
corrections, and digital signage (retail). We have seen some success, having
signed a significant reseller agreement in the healthcare space, a second deal
to manage the world’s largest video visitation operation in a corrections
facility, and launching a pilot to manage digital signage for a large retailer.
These deals are all opportunistic and have the potential to grow into large
business opportunities over time. Our near-term focus, however, will be on the
education market as outlined above.

    

    One
characteristic of the education market is that it has a number of short “buying
windows” throughout the year (primarily summer, spring and winter breaks) and
much less buying activity during the remainder of the year.  Although
we are just coming into the spring/summer “buying season” in the education
market, some buying decisions are being delayed due to budget shortfalls, a
reluctance to buy technology at the same time employees are being furloughed or
laid off, and a need to fully understand the federal stimulus package and its
impact on budgets.  As a result of this uncertain market timing,
Simtrol will need to attract $1.5 – $2.0 million in additional capital in the
near term. We are finalizing our plan to secure this capital.

    

    To
summarize, we have built a great team, we have refined and productized our
technology making it easy to deploy and maintain, and we have identified a
market focus and started gaining traction. We expect this revenue traction to
accelerate as we enter the summer months and schools invest in technology for
the upcoming year. We appreciate your support of Simtrol over the years and are
continuing to work hard on your behalf.

    

    Respectfully
yours,

    

    /s/
Oliver M. Cooper, III – President and Chief Executive Officer

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