Document:

Unassociated Document

    Exhibit
4.18

     

    
      
        Warrant
No. ______________

      

      
 

       

      CORMEDIX
INC.

       

      COMMON
STOCK WARRANT

       

      THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATE.  THIS WARRANT IS SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  THE ISSUER OF THIS
WARRANT MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO
THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE
WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

       

      This
certifies that ________________ (the “Holder”), its
designees or permitted assigns, subject to the terms and conditions set forth
herein, at any time after the Commencement Date (as hereinafter defined) and
prior to the Expiration Date (as such terms are defined below), is entitled to
purchase from CorMedix Inc., a Delaware corporation (the “Company”), that
number of fully-paid and non-assessable shares (subject to adjustment as
provided herein) (the “Warrant Shares”) of
the Company’s Common Stock, $0.001 par value per share (the “Common Stock”), equal
to (i) sixty percent (60%) of the principal amount of that certain Convertible
Promissory Note dated the date hereof in the principal amount of $__________,
issued by the Company to the Holder (the “Note”) pursuant to
that certain Note and Warrant Purchase Agreement dated the date hereof between
the Company and the Holder (the “Purchase Agreement”),
divided by (ii) the price at which non-derivative equity securities of the
Company are sold in a Qualified IPO (as defined below) (the “IPO Price”), upon
surrender to the Company at its principal office (or at such other location as
the Company may advise the Holder in writing) of this Warrant properly endorsed
with the Form of Subscription attached hereto duly completed and signed and upon
payment of the aggregate Exercise Price (as defined below) for the number of
Warrant Shares for which this Warrant is being exercised determined in
accordance with the provisions hereof.  For purposes hereof,
“Qualified IPO” means the consummation of an underwritten initial public
offering of equity securities by the Company resulting in aggregate gross cash
proceeds (before commissions or other expenses) to the Company of at least
$10,000,000.  The exercise price (the “Exercise Price”) per
Warrant Share issuable pursuant to this Warrant shall be equal to 110% of the
IPO Price, payable in accordance with Section 1(b) hereof.

       

      Notwithstanding
the foregoing, if a Qualified IPO does not occur on or before October 29, 2011
(the “Commencement
Date”), then this Warrant will be exercisable for that number of Warrant
Shares equal to sixty percent (60%) of the principal amount of the Note
purchased by the original holder divided by $1.00, at a per share exercise price
of $1.00.

       

      This
Warrant is issued subject to the following terms and conditions:

       

      1. Exercise, Issuance of
Certificates.  Subject to Sections 3(d) and 4 hereof, the
Holder may exercise this Warrant, at any time or from time to time, during the
period (a) commencing on the earlier to occur of (i) the consummation of a
Qualified IPO and (ii) the Commencement Date, and (b) expiring at 5:00 p.m.
(Eastern Time) on October 29, 2014 (the “Expiration
Date”).  The Holder may exercise this Warrant on or prior to
the Expiration Date for all or any part of the Warrant Shares (but not for a
fraction of a share) that may be purchased hereunder, as that number may be
adjusted pursuant to Section 3 of this Warrant.  The Company agrees
that the Warrant Shares purchased under this Warrant shall be and are deemed to
be issued to the Holder hereof as the record owner of such Warrant Shares as of
the close of business on the date on which this Warrant shall have been
surrendered, properly endorsed, the completed and executed Form of Subscription
delivered, and payment made for such Warrant Shares (such date, a “Date of
Exercise”).  Certificates for the Warrant Shares so purchased,
together with any other securities or property to which the Holder hereof is
entitled upon such exercise, shall be delivered to the Holder hereof by the
Company at the Company’s expense as soon as practicable after the rights
represented by this Warrant have been so exercised, but in any event not later
than ten (10) business days following the Date of Exercise.  In case
of a purchase of less than all the Warrant Shares which may be purchased under
this Warrant, the Company shall cancel this Warrant and execute and deliver to
the Holder hereof within a reasonable time a new Warrant or Warrants of like
tenor for the balance of the Warrant Shares purchasable under the Warrant
surrendered upon such purchase.  Each stock certificate so delivered
shall be registered in the name of such Holder and issued with a legend in
substantially the form of the legend placed on the front of this
Warrant.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (a) The
Company’s obligations to issue and deliver Warrant Shares in accordance with the
terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same.  Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to
timely deliver certificates representing shares of Common Stock upon exercise of
the Warrant  as required pursuant to the terms hereof.

       

      (b) Payment of Exercise
Price. The Holder shall pay the Exercise Price by delivering immediately
available funds to the Company.

       

      2. Shares to be Fully Paid;
Reservation of Shares.  The Company covenants and agrees that
all Warrant Shares, will, upon issuance and payment of the applicable Exercise
Price, be duly authorized, validly issued, fully paid and nonassessable, and
free of all preemptive rights, liens and encumbrances, except for restrictions
on transfer provided for herein.  The Company shall at all times
reserve and keep available out of its authorized and unissued Common Stock,
solely for the purpose of providing for the exercise of the rights to purchase
all Warrant Shares granted pursuant to this Warrant, such number of shares of
Common Stock as shall, from time to time, be sufficient therefor.

       

      3. Adjustment of Exercise Price
and Number of Shares.  The Exercise Price and the total number
of Warrant Shares shall be subject to adjustment from time to time upon the
occurrence of certain events described in this Section 3.

       

      (a) Subdivision or Combination
of Stock.  In the event the outstanding shares of the Company’s
Common Stock shall be increased by a stock dividend payable in Common Stock,
stock split, subdivision, or other similar transaction occurring after the date
hereof into a greater number of shares of Common Stock, the Exercise Price in
effect immediately prior to such subdivision shall be proportionately reduced
and the number of Warrant Shares issuable hereunder proportionately
increased.  Conversely, in the event the outstanding shares of the
Company’s Common Stock shall be decreased by reverse stock split, combination,
consolidation, or other similar transaction occurring after the date hereof into
a lesser number of shares of Common Stock, the Exercise Price in effect
immediately prior to such combination shall be proportionately increased and the
number of Warrant Shares issuable hereunder proportionately
decreased.

       

      
        
          
          

        

        
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      (b) Reclassification.  If
any reclassification of the capital stock of the Company or any reorganization,
consolidation, merger, or any sale, lease, license, exchange or other transfer
(in one transaction or a series of related transactions) of all or substantially
all, of the business and/or assets of the Company (the “Reclassification
Events”) shall be effected in such a way that holders of Common Stock
shall be entitled to receive stock, securities, or other assets or property,
then, as a condition of such Reclassification Event, lawful and adequate
provisions shall be made whereby the Holder hereof shall thereafter have the
right to purchase and receive (in lieu of the shares of Common Stock of the
Company immediately theretofore purchasable and receivable upon the exercise of
the rights represented hereby) such shares of stock, securities, or other assets
or property as may be issued or payable with respect to or in exchange for a
number of outstanding shares of such Common Stock equal to the number of shares
of such stock immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby.  In any Reclassification
Event, appropriate provision shall be made with respect to the rights and
interests of the Holder of this Warrant to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the Exercise Price
and of the number of Warrant Shares), shall thereafter be applicable, as nearly
as may be, in relation to any shares of stock, securities, or assets thereafter
deliverable upon the exercise hereof.

       

      (c) Notice of
Adjustment.  Upon any adjustment of the Exercise Price or any
increase or decrease in the number of Warrant Shares, the Company shall give
written notice thereof, by first class mail postage prepaid, addressed to the
registered Holder of this Warrant at the address of such Holder as shown on the
books of the Company.  The notice shall be prepared and signed by the
Company’s Chief Financial Officer and shall state the Exercise Price resulting
from such adjustment and the increase or decrease, if any, in the number of
shares purchasable at such price upon the exercise of this Warrant, setting
forth in reasonable detail the method of calculation and the facts upon which
such calculation is based.

      

      (d) Termination Upon a Sale of
the Company.  Notwithstanding any other provision of this
Section 3, upon the consummation by the Company (in one or a series of related
transactions) of a merger, consolidation, sale or transfer of more than fifty
percent (50%) of the Company’s capital stock or all or substantially all of the
Company’s assets determined on a consolidated basis, this Warrant shall
terminate immediately upon such consummation without the opportunity for
exercise.

      

      4. Redemption of
Warrants.

       

      (a) Redemption.  This
Warrant may be redeemed at the option of the Company, at any time after the date
that the Common Stock is traded on the Over-the-Counter Bulletin Board (the
“OTCBB”) or on
a national securities exchange, following a period of thirty (30) consecutive
calendar days in which the per share average closing sale price of the Common
Stock equals or exceeds an amount that is twice the Exercise Price, on notice as
set forth in Section 4(b) hereof, and at a redemption price equal to $0.001 (the
“Redemption
Price”) for each Warrant Share purchasable under this Warrant; provided, however, that this
Warrant may not be redeemed by the Company unless the resale of the Warrant
Shares purchasable hereunder has been registered under the Securities Act of
1933, as amended (the “Act”) or are
otherwise freely tradable.  For purposes of this Section 4(a), the
closing sale price of the Common Stock shall be determined by the closing price
as reported by the OTCBB so long as the Common Stock is quoted on the OTCBB, and
if the Common Stock is hereafter listed or quoted on the Nasdaq Capital Market
or a national securities exchange, shall be determined by the last reported sale
price on the primary exchange or market on which the Common Stock is
traded.

       

      
        
          
          

        

        
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      (b) Notice of
Redemption.  In the case of any redemption of this Warrant, the
Company shall give notice of such redemption to the Holder hereof as provided in
this Section 4(b).  Notice of redemption to the Holder of this Warrant
shall be given in person, by recognized overnight courier, mailed by certified
or registered mail, return receipt requested, or by confirmed facsimile
transmission, to the Holder’s last address and/or facsimile of record with the
Company not less than twenty (20) days prior to the date fixed for
redemption.  Any notice which is given in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
Holder receives the notice.  Each such notice shall specify the date
fixed for redemption, the place of redemption and the aggregate Redemption
Price, and shall state that payment of the Redemption Price will be made upon
surrender of this Warrant at such place of redemption, and that if not exercised
by the close of business on the date fixed for redemption, the exercise rights
of the Warrant shall expire unless extended by the Company.  Such
notice shall also state the current Exercise Price and the date on which the
right to exercise the Warrant will expire unless extended by the
Company.

       

      (c) Payment of Redemption
Price.  If notice of redemption shall have been given as
provided in Section 4(b), the Redemption Price shall, unless the Warrant is
theretofore exercised pursuant to the terms hereof, become due and payable on
the date and at the place stated in such notice.  On and after such
date of redemption, the exercise rights of this Warrant shall expire and this
Warrant shall be null and void on presentation and surrender of this Warrant at
such place of payment in such notice specified, this Warrant shall be paid and
redeemed at the Redemption Price per Warrant Share within ten (10) days
thereafter.

       

      5. No Voting or Dividend
Rights.  Nothing contained in this Warrant shall be construed
as conferring upon the holder hereof the right to vote or to consent to receive
notice as a stockholder of the Company on any other matters or any rights
whatsoever as a shareholder of the Company.  No dividends or interest
shall be payable or accrued in respect of this Warrant or the interest
represented hereby or the shares purchasable hereunder until, and only to the
extent that, this Warrant shall have been exercised.

       

      6. Compliance with the
Act. The Holder of this Warrant, by acceptance hereof, agrees that this
Warrant is being acquired for its own account and not for any other person or
persons, for investment purposes and that it will not offer, sell, or otherwise
dispose of this Warrant except under circumstances which will not result in a
violation of the Act or any applicable state securities laws.

       

      7. Limited
Transferability.  The Holder represents that by accepting this
Warrant it understands that this Warrant and any securities obtainable upon
exercise of this Warrant have not been registered for sale under Federal or
state securities laws and are being offered and sold to the Holder pursuant to
one or more exemptions from the registration requirements of such securities
laws.  In the absence of an effective registration of such securities
or an exemption therefrom, any certificates for such securities shall bear the
legend set forth on the first page hereof.  The Holder understands
that it must bear the economic risk of its investment in this Warrant and any
securities obtainable upon exercise of this Warrant for an indefinite period of
time, as this Warrant and such securities have not been registered under Federal
or state securities laws and therefore cannot be sold unless subsequently
registered under such laws, unless an exemption from such registration is
available.

       

      
        
          
          

        

        
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      8. Amendment, Waiver,
etc.  Except as expressly provided herein, neither this Warrant
nor any term hereof may be amended, waived, discharged or terminated other than
by a written instrument signed by the party against whom enforcement of any such
amendment, waiver, discharge or termination is sought; provided, however, that
any provisions hereof may be amended, waived, discharged or terminated upon the
written consent of the Company and the holders of not less than sixty-six and
two-thirds percent (66 2⁄3%), in the aggregate, of the Warrant Shares then
issuable upon exercise of then outstanding warrants of like tenor to this
Warrant issued by the Company in connection with the issuance of Bridge Notes
(as defined in the Note).

       

      9. Notices.  Any
notice, request, or other document required or permitted to be given or
delivered to the Holder hereof or the Company shall be delivered as set forth in
the Purchase Agreement.

       

      10. Governing
Law.  This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of New York without regard to the conflicts of laws provisions
thereof.

       

      11. Lost or Stolen
Warrant.  Upon receipt of evidence reasonably satisfactory to
the Company of the loss, theft, destruction, or mutilation of this Warrant and,
in the case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation,
upon surrender and cancellation of such Warrant, the Company, at its expense,
will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen,
destroyed or mutilated Warrant.

       

      12. Fractional
Shares.  No fractional shares shall be issued upon exercise of
this Warrant.  The Company shall, in lieu of issuing any fractional
share, pay the Holder entitled to such fraction a sum in cash equal to such
fraction (calculated to the nearest 1/100th of a share) multiplied by the then
effective Exercise Price on the date the Form of Subscription is received by the
Company.

       

      13. Successors and
Assigns.  This Warrant and the rights evidenced hereby shall
inure to the benefit of and be binding upon the successors of the Company and
the successors and assigns of the Holder.  The provisions of this
Warrant are intended to be for the benefit of all Holders from time to time of
this Warrant, and shall be enforceable by any such Holder.

       

      14. Severability of
Provisions. In case any one or more of the provisions of this Warrant
shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

       

      Remainder
of Page Intentionally Left Blank; Signature Page Follows

       

      

      
        
          
          

        

        
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      IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its
officer, thereunto duly authorized as of this ___ day of _____________,
200__.

       

      

      CORMEDIX
INC.

      

      

      By: ___________________________________                                                                          

      Name:  John
C. Houghton

      Title:  President
and Chief Executive Officer

      

      

      
        
          
            Signature
Page—Common Stock Warrant

          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      FORM
OF SUBSCRIPTION

       

      (To be
signed only upon exercise of Warrant)

       

      To:           CorMedix
Inc.

       

      The
undersigned, the holder of the attached Common Stock Warrant, hereby elects to
exercise the purchase right represented by such Warrant for, and to purchase
thereunder,                                    
shares of Common Stock of CorMedix Inc. and such holder herewith
makes payment of $_________ therefor.

       

      

      

       

      The
undersigned requests that certificates for such shares be issued in the name of,
and delivered to: ___________________________________

      whose
address
is: _________________________________________________________________________________________________________.

       

      DATED:  ________________________________                                                    

       

      

      

      _______________________________________________
(Signature
must conform in all respects to name of              

Holder as specified on the face of the
Warrant)                    

      

      Name: __________________________________________

      

      Title: ___________________________________________Exhibit 10.1

                              ASSIGNMENT AGREEMENT

THIS AGREEMENT dated for reference the 15th day of January, 2010

BETWEEN:

               AMERICAN  EAGLE  ENERGY INC.,  27 North 27th  Street,  Suite 21G,
               Billings, Montana 59101

               (the "Assignee")

AND:

               MURRAYFIELD  LIMITED,  Conference House, 152 Morrison Street, The
               Exchnage Edinburgh EH3 8E8 United Kingdom

               ("Murrayfield" or the "Assignor")

WHEREAS:

A. Lexaria Corp.  and  Murrayfield  entered into an assignment  agreement  dated
October  2,  2009,  attached  hereto as Exhibit  "A" (the  "Original  Assignment
Agreement")   wherein  Murrayfield  had  acquired  from  Lexaria  the  "Assigned
Interest"  as defined  therein,  in regards to the PP F-12-4 well in the Belmont
Lake Field in Wilkinson County, Mississippi; and

B.  Murrayfield  wishes to assign to the  Assignee all of  Murrayfield's  right,
title and interest in and to the Original Assignment  Agreement and the Assigned
Interest in accordance with the terms of this Agreement (the "Assignment").

NOW THEREFORE,  in  consideration of the sum of  US$150,000.000  now paid by the
Assignee  to the  Assignor  (the  receipt  and  sufficiency  of which are hereby
acknowledged by the Assignors), the Assignors covenant and agree as follows:

THE ASSIGNMENT AND ACCEPTANCE

1.  Murrayfield  hereby  unconditionally  forever  assigns and  transfers to the
Assignee all of Murrayfield's  right,  title and interest in and to the Original
Assignment  Agreement and the Assigned  Interest and all benefits and advantages
to be derived therefrom (the "Assignment").

2. The Assignor represents and warrants to the Assignee, with the knowledge that
the Assignee  relies upon same in entering into this  Agreement,  that:

     (a)  the  Assignor  owns the  Assigned  Interest  and its rights  under the
          Original Assignment  Agreement free and clear of all liens, charges or
          encumbrances;
<PAGE>
                                      -2-

     (b)  the  Assignor  has all  requisite  power  and  capacity,  and has duly
          obtained all  requisite  authorizations  and  performed  all requisite
          acts, to enter into and perform their obligations hereunder,  they has
          duly executed and  delivered  this  Agreement  and such  constitutes a
          legal,  valid and binding  obligation of it enforceable  against it in
          accordance with the Agreement's  terms,  and the entering into of this
          Agreement and the performance of their obligations  hereunder does not
          and will not result in a breach of, default under or conflict with any
          of the terms and provisions of any of its constituting documents,  any
          resolutions  of their  partners,  any  indenture,  agreement  or other
          instrument  to which  they are a party or by which  they are  bound or
          which the Assigned Interest may be subject to, or any statute,  order,
          judgment or other law or ruling of any competent authority;

     (c)  the Original  Assignment  Agreement is in good standing as at the date
          hereof and no default has occurred therein; and

     (d)  the Assignor has the legal  capacity and  competence to enter into and
          execute  this  Agreement  and to take all  actions  required  pursuant
          hereto and they are duly incorporated and validly subsisting under the
          laws of its jurisdiction of incorporation and all necessary  approvals
          by their  directors,  shareholders  and others  have been  obtained to
          authorize execution and performance of this Agreement on behalf of the
          Assignor.

3. The Assignor will at all times hereafter execute and deliver,  at the request
of the Assignee, all such further documents, deeds and instruments,  and will do
and perform all such acts as may be  necessary  or desirable to give full effect
to the intent and meaning of this Agreement.  Without limiting the generality of
the foregoing,  the Assignors will execute such financing statements,  financing
change  statements,  notices or  directions  as may be necessary or advisable to
cause all pertinent  offices of public record to amend their records to show the
interests of the Assignee in the Original Assignment Agreement.

4. Each of the parties to this Agreement  acknowledges  that such party has read
this  document  and  fully   understands  the  terms  of  this  Agreement,   and
acknowledges  that this  Agreement  has been executed  voluntarily  after either
receiving independent legal advice, or having been advised to obtain independent
legal advice and having elected not to do so

5. This  Agreement  will enure to the benefit of the Assignee and its successors
and  assigns,  and will be binding  upon the  Assignor  and its  successors  and
assigns.

6. This Agreement will be governed by and construed in accordance  with the laws
in force in the  State of Nevada  and the  parties  submit to the  non-exclusive
jurisdiction of the courts of State of Nevada in any  proceedings  pertaining to
the Assignment or this Agreement.

7. This  Agreement may be executed in any number of  counterparts  with the same
effect  as if  all  parties  hereto  had  all  signed  the  same  document.  All
counterparts  will be construed  together and will  constitute  one and the same
agreement.
<PAGE>
                                      -3-

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.

AMERICAN EAGLE ENERGY INC.

Per: /s/ signed
    --------------------------------------------
    Authorized Signatory

MURRAYFIELD LIMITED

Per: /s/ signed
    --------------------------------------------
    Authorized Signatory
<PAGE>
                                      -4-

                                    EXHIBIT A

                              ASSIGNMENT AGREEMENT

<PAGE>
                                      -5-

                              ASSIGNMENT AGREEMENT

THIS ASSIGNMENT is made effective as of this 2nd day of October, 2009

BETWEEN:

               LEXARIA CORP., a company incorporated under the laws of the State
               of Nevada,  having a business  office at #604 - 700 West  Pender,
               Vancouver, British Columbia, Canada V6C 1G8

               (the "ASSIGNOR," or, "LEXARIA")

AND:

               MURRAYFIELD  LIMITED,  Conference House, 152 Morrison Street, The
               Exchange Edinburg EH3 8E8 United Kingdom

               (the "ASSIGNEE")

WHEREAS:

A.   The Assignor  and the  Assignee  are in the  business of natural  resources
     exploration and development;

B.   Lexaria  has  entered  into a  farmout,  option  and  participation  letter
     agreement dated December 21, 2005 (the "Head  Agreement"),  a copy of which
     is attached as Exhibit I hereto,  with Griffin & Griffin Exploration L.L.C.
     ("Griffin") with respect to the following property:

     (1)  Belmont Lake Field, Wilkinson County, Mississippi, Section 41-T2N-R4W

C.   Lexaria currently has the right to earn:

     (1)  a 32% (gross) and  20.802815%  (net)  working  interest in the Belmont
          Lake PP F-12-4  horizontal well until such time the well achieves 500%
          revenue payout (as more  particularly  described below), at which time
          this interest ceases as per the joint operating agreement.

D.   On or about August 13, 2009, the Assignor entered into an Authorization For
     Expenditure agreement (the "AFE") with Griffin, a copy of which is attached
     as Exhibit II hereto,  to participate in the drilling and completion of the
     PP  F-12-4  well by  paying  a 32%  share  of the  costs  of  drilling  and
     completing the PP F-12-4 well as per the AFE; and
<PAGE>
                                      -6-

E.   The Assignee  wishes to purchase from the Assignor and the Assignor  wishes
     to sell to the Assignee a revenue  interest of 36.101498% of a 32% share of
     the  Assignor's  net revenue  after field  operating  expenses  from the PP
     F-12-4 well (the "Assigned Interest");

F.   In consideration  for the Assigned  Interest the Assignee has agreed to pay
     to the Assignor:

     (a)  48.13533% of the Assignor's  costs  currently  budgeted at $311,621.44
          but subject to revision by Griffin,  being an amount of  US$150,000.00
          (the "Initial Consideration"); and

     (b)  48.13533%  of the  Assignor's  32% share of PP F-12-4  well costs from
          time to time for infrastructure,  pipes, tanks, compressors, trucking,
          etc,  as  recommended  for  expenditure  by Griffin  (the  "Subsequent
          Consideration"); and,

G.   Upon the terms and subject to the conditions set forth in this  Assignment,
     the consent of Griffin with respect to the  Assignment  herein  having been
     obtained,  the Assignor  wishes to assign and the Assignee wishes to accept
     the  assignment  of the  Assigned  Interest  as  shown  above in and to the
     Participation Agreement.

NOW THEREFORE THIS AGREEMENT  WITNESSES that in  consideration  of covenants and
agreements  set forth  herein and other  good and  valuable  consideration,  the
receipt and  sufficiency  of which is hereby  acknowledged,  the parties  hereto
agree each with the other as follows:

1.   The  Assignor  hereby  assigns,  transfers  and sets over to the  Assignee,
     effective as of the date hereof,  all  proportionate  rights,  interest and
     benefits in the Assigned Interest held by or granted to the Assignor in and
     to the Participation Agreement between the Assignor and Griffin but limited
     to a gross 500%  revenue  payout  based on the total  amount paid under the
     Initial  Consideration  and the  Subsequent  Consideration  after which all
     rights,  interests and benefits cease;  and details of which are referenced
     in the attached  Exhibit II. The Assignee  hereby  acknowledges  and agrees
     that the Assignor is making no representation or covenant as to whether any
     oil revenue will be recovered from the Assigned Interest.

2.   The   Assignee   hereby   agrees  to  pay  to  the   Assignor  the  Initial
     Consideration, within 5 days of the signing of this Assignment.

3.   The  Assignee   hereby  agrees  to  pay  to  the  Assignor  the  Subsequent
     Consideration as required and or demanded by the Assignor. In the event the
     Assignee  does not provide  the  Subsequent  Consideration  within five (5)
     business  days,  Griffin  shall  withhold  such amount of revenue  from the
     Assigned  Interest in order to satisfy the then amount  outstanding  of the
     Subsequent Consideration.

4.   The Assignor warrants and represents to the Assignee that as of the date of
     this Assignment,  the Participation  Agreement is in full force and effect,
     without modification or amendment, that the Assignor has the full right and
<PAGE>
                                      -7-

     authority  to  assign  the  Assigned  Interest  and  all  of  the  Assigned
     Interest's rights, interest and benefits held by or granted to the Assignor
     in and to the  Participation  Agreement and that such rights,  interest and
     benefits  assigned to the Assignee herein are free of lien,  encumbrance or
     adverse claim.

5.   The Assignee  hereby  assumes and agrees to perform all  obligations of the
     Assignor  with respect to the  Assigned  Interest  under the  Participation
     Agreement and  guarantees  to hold the Assignor  harmless from any claim or
     demand of any kind made hereunder.

6.   This  Assignment  shall be  binding  upon and inure to the  benefit  of the
     parties, their successors and assigns.

7.   Each of the parties hereto will  co-operate with the others and execute and
     deliver to the other parties  hereto such other  instruments  and documents
     and take such other  actions as may be  reasonably  requested  from time to
     time by any other party  hereto as necessary  to carry out,  evidence,  and
     confirm the intended purpose of this Assignment.

8.   This  Assignment  may not be  amended  except by an  instrument  in writing
     signed by each of the parties.

9.   This Assignment and the Exhibit hereto contain the entire agreement between
     the parties with respect to the subject  matter  hereof and  supercede  all
     prior  arrangements and  understandings,  both written and oral, express or
     implied,  with respect thereto. Any preceding  correspondence or offers are
     expressly superceded and terminated by this Assignment.

10.  All  notices and other  communications  required  or  permitted  under this
     Assignment  must be in writing and will be deemed given if sent by personal
     delivery,  faxed with electronic confirmation of delivery,  internationally
     recognized   courier  or  registered  or  certified  mail  (return  receipt
     requested),  postage prepaid, to the parties at the following addresses (or
     at such other address for a party as will be specified by like notice):

<TABLE>
<CAPTION>
<S>                             <C>                                       <C>
If to the Assignor                If to the Assignee                       If to Griffin

604 - 700 West Pender St.         Conference House,                        LeFleur's Gallary
Vancouver BC V6C 1G8              152 Morrison Street, The Exchange        P.O. Box 12274
604.602.1633 ph                   Edinburg EH3 8E8                         Jackson, MS, 39236
604.602.1625 fax                  United Kingdom                           601.713.1146 ph
                                                                           601.713.1175 fax
</TABLE>

11.  This  Assignment  will be governed by and construed in accordance  with the
     laws of the Province of British Columbia, Canada as applicable to contracts
     made and performed therein.

12.  This Assignment may be executed in one or more  counterparts,  all of which
     will be considered one and the same  Assignment  and will become  effective
<PAGE>
                                      -8-

     when one or mare  counterparts  have been signed by each of the parties and
     delivered to the other parties,  it being  understood that all parties need
     not sign the same counterpart.

13.  This Agreement may be executed by delivery of executed  signature  pages by
     fax and such fax execution will be effective for all purposes.

14.  Time is of essence in this Assignment.

IN WITNESS  WHEREOF the parties have executed this  Assignment as of the day and
year first above written.

ASSIGNOR                                  ASSIGNEE

LEXARIA CORP.                             MURRAYFIELD LIMITED

Per:                                      Per: /s/ signed
    -----------------------------------       ----------------------------------
    Authorized Signatory                      Authorized Signatory

Name:  Bal Bhullar                        Name:
Title: CFO, Director                      Title:

Per: /s/ signed
    -----------------------------------
    Authorized Signatory

Name:  Chris Bunka
Title: CEO, Chair

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