Document:

Exhibit
4.1

 

NOTICE OF GRANT OF NON-QUALIFIED
STOCK OPTION AWARD

 

FOR GOOD AND VALUABLE CONSIDERATION, MRV Communications, Inc. (the “Company”)
hereby grants to Dilip Singh (the “Optionee”), an option (the “Option”) to
purchase the number of shares of Common Stock of the Company (the “Shares”) set
forth in this Notice of Grant of Non-Qualified Stock Option Award (the “Notice”),
subject to certain restrictions as outlined below in the Notice and the
additional provisions set forth in the attached Terms and Conditions of
Non-Qualified Stock Option Award (together with the Notice, the “Agreement”).  Section references herein refer to the
attached Terms and Conditions of Non-Qualified Stock Option Award.  Capitalized terms not defined in the Notice
shall have the meaning provided in Terms and Conditions of Non-Qualified Stock
Option Award.

 

	
  Date of Grant:

  	
  July 1, 2010

  	
   

  	
  Type of Option:

  	
  Non-Qualified Stock Option

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
  $1.25

  	
   

  	
  Expiration Date:

  	
  July 1, 2020

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Number of Shares Granted:

  	
  1,750,000

  	
   

  	
  Total Exercise Price:

  	
  $2,187,500

  	
   

  

 

Vesting
Schedule:  100% vested
in full immediately prior to the close of business on June 30, 2011.

 

Vesting is accelerated in full upon a Change in
Control under Section 2(c).

 

Upon a termination of employment, if the Option is
unvested, it will expire immediately, except as provided in Section 2(d) upon a
termination other than for Cause by the Company.

 

Exercise Period After Termination:

 

Termination of employment by the Company for Cause:  Any unexercised portion of the Option will be
forfeited in its entirety (whether vested or unvested) in the event of your
termination of employment by the Company for Cause.

 

Termination of employment other than by the Company for Cause:  If the Option has vested, the Option will
remain exercisable until the earlier of (i) the Expiration Date of the Option
or (ii) the fourth anniversary of the date of your termination of employment.

 

The Option shall not be exercised after the Expiration
Date as provided above, unless extended under Section 2(a).

 

By signing below, the Optionee agrees to the terms and conditions set
forth in the Agreement.

 

	
  Dilip Singh

  	
   

  	
  MRV Communications, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Jennifer Hankes Painter, VP, General Counsel

  
	
  Date:
                    ,
  2010

  	
   

  	
  Date:
              ,
  2010

  

 

1

 

TERMS
AND CONDITIONS OF NON-QUALIFIED STOCK OPTION AWARD

 

1.                                       Grant of Option.  The Option granted to the Optionee and
described in the Notice of Grant of Non-Qualified Stock Option Award (the “Notice”)
is subject to the terms and conditions of these Terms and Conditions of
Non-Qualified Stock Option Award (together with the Notice, the “Agreement”).

 

The Board of Directors approved the Option, conditioned upon the
Optionee’s acceptance of the provisions set forth in the Agreement within 30
days after the Agreement is presented to the Optionee for review.  The Option is intended to be an employment
inducement award and is not intended to be a stock option award under any stock
incentive plan adopted by the Company, including the Company’s 2007 Omnibus
Incentive Plan.

 

2.                                       Exercise of
Option.

 

(a)                                  Right to
Exercise.  The Option
shall be exercisable, in whole or in part, during its term in accordance with
the Vesting Schedule and the terms and conditions set forth in the
Agreement.  No Shares shall be issued
pursuant to the exercise of the Option unless the issuance and exercise comply
with applicable laws.  Assuming such
compliance, for income tax purposes, the Shares shall be considered transferred
to the Optionee on the date on which the Option is exercised with respect to
such Shares.  The Committee may, in its
discretion, (i) accelerate vesting of the Option or (ii) extend the applicable
exercise period (but not beyond the Expiration Date).

 

(b)                                 Method of
Exercise.  The
Optionee may exercise the Option by delivering a written exercise notice in a
form approved by the Company (or by such other method as the Company may
establish, from time to time, and so instruct the Optionee as to use) (the “Exercise
Notice”) which shall state the election to exercise the Option, the number of
Shares with respect to which the Option is being exercised, and such other
representations and agreements as may be required by the Company.  The Exercise Notice shall be accompanied by
payment of the aggregate Exercise Price as to all Shares exercised consistent
with Section 3.  The Option shall be
deemed to be exercised upon receipt by the Company of such fully executed
Exercise Notice accompanied by the aggregate Exercise Price.  In the event that any Common Stock shall be
transferred to the Company to satisfy all or any part of the Exercise Price,
the part of the Exercise Price deemed to have been satisfied by such transfer
of Common Stock shall be equal to the product derived by multiplying the Fair
Market Value as of the date of exercise times the number of shares of Common
Stock transferred to the Company.  The
Optionee may not transfer to the Company in satisfaction of the Exercise Price
any fractional share of Common Stock.

 

(c)                                  Acceleration of
Vesting on Change in Control.  In the event of a Change in Control, if the
Option is not previously vested or terminated under the terms of the Agreement
on the date of the Change in Control, it shall be immediately and fully vested
and exercisable; provided, however, that no
acceleration of vesting shall occur if any Change in Control results from the
Optionee’s beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of Common Stock or Company Voting Securities.

 

(d)                                 Acceleration of
Vesting upon Termination of Employment Not for Cause.  If, prior to the Vesting Date, the Optionee’s
employment with the Company is terminated by the Company other than for Cause,
the Option shall be immediately and fully vested and exercisable.

 

2

 

3.                                       Method of
Payment.  If the Optionee elects to
exercise the Option by submitting the Exercise Notice under Section 2(b) of the
Agreement, the aggregate Exercise Price (as well as any applicable withholding
or other taxes) shall be paid by cash or check; provided, however, that the Committee may consent, in its
discretion, to payment in any of the following forms, or a combination of them,
when such payment is made consistent with Section 2(b):

 

(a)                                  cash or check;

 

(b)                                 consideration
received by the Company under a formal cashless exercise program adopted by the
Company;

 

(c)                                  surrender of
other Shares owned by the Optionee which have a Fair Market Value on the date
of surrender equal to the aggregate Exercise Price covering the portion of the
Option being exercised and any applicable withholding; or

 

(d)                                 any other
consideration that the Committee deems appropriate and in compliance with
applicable law.

 

4.                                       Term of Option.  This Option may be exercised only within the
term set out in the Notice, and may be exercised during such term only in
accordance with the terms of the Agreement.

 

5.                                       Withholding.

 

(a)                                  The Company
shall be entitled, if the Committee deems it necessary or desirable, to
withhold (or secure payment from the Optionee in lieu of withholding) the
amount of any withholding or other tax required by law to be withheld or paid
by the Company with respect to any amount payable and/or Shares issuable under
the Option, and the Company may defer issuance of the Shares upon exercise of
the Option unless indemnified to its satisfaction against any liability for any
such tax.

 

(b)                                 Subject to any
rules prescribed by the Committee, the Optionee shall have the right to elect
to meet any withholding requirement (i) by having withheld from the Option at
the appropriate time that number of whole Shares whose Fair Market Value is
equal to the amount of any taxes required to be withheld with respect to the
Option, (ii) by direct payment to the Company in cash of the amount of any
taxes required to be withheld with respect to the Option or (iii) by a
combination of Shares and cash.

 

6.                                       Optionee
Representations.  The
Optionee hereby represents to the Company that the Optionee has read and fully
understands the provisions of the Agreement and the Optionee’s decision to
accept the Option is completely voluntary. 
Further, the Optionee acknowledges that the Optionee is relying solely
on his own advisors with respect to the tax consequences of the Option.

 

7.                                       Restrictions on
Exercise. 
Notwithstanding the other provisions of the Agreement, no option
exercise or issuance of Shares pursuant to the Agreement shall be effective if
(i) the Shares reserved under the Agreement are not subject to an effective
registration statement at the time of such exercise or issuance, or otherwise
eligible for an exemption from registration, or (ii) the Company determines in
good faith that such exercise or issuance would violate any Company policy or
applicable securities or other law or regulation.

 

3

 

8.                                       Definitions.

 

For the purpose of the Agreement, capitalized terms shall have the
following meanings:

 

(a)                                  Beneficiary
means an individual, trust or estate who or which, by a written
designation of the Optionee filed with the Company, or if no such written
designation is filed, by operation of law, succeeds to the rights and
obligations of the Optionee under the Agreement upon the Optionee’s death.

 

(b)                                 Board
means the Board of Directors of the Company.

 

(c)                                  Cause means (i) the
Optionee’s willful misconduct or gross negligence which, in the good faith
judgment of the Board, has a material adverse impact on the Company (either
economically or on its reputation); (ii) the Optionee’s conviction of, or
pleading of guilty or nolo contendere
to, a felony (or equivalent outside of the United States) or any crime
involving fraud or material dishonesty; (iii) the Optionee’s failure to attempt
in good faith to perform the Optionee’s duties or to follow the legal direction
of the Board, which failure is not remedied within 30 days of written notice
from the Board specifying the details thereof; and (iv) any other material
breach by the Optionee of the Letter Agreement between the Company and the
Optionee, dated June 8, 2010, the Company’s written code of conduct, written
code of ethics or other written policy that is not remedied within 30 days of
written notice from the Board specifying the details thereof.

 

(d)                                 Change
in Control means, and shall be deemed to have occurred upon the
occurrence of, any one of the following events:

 

(i)  The acquisition in
one or more transactions, other than from the Company, by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act), other than the Company, a Subsidiary or any employee benefit
plan (or related trust) sponsored or maintained by the Company or a Subsidiary,
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of a number of Company Voting Securities in excess of 25% of
the Company Voting Securities unless such acquisition has been approved by the
Board;

 

(ii)  Any election has
occurred of persons to the Board that causes two-thirds of the Board to consist
of persons other than (x) persons who were members of the Board on the
effective date of the Plan and (y) persons who were nominated for
elections as members of the Board at a time when two-thirds of the Board
consisted of persons who were members of the Board on the effective date of the
Plan, provided, however, that any person
nominated for election by a Board at least two-thirds of whom constituted
persons described in clauses (x) and/or (y) or by persons who were
themselves nominated by such Board shall, for this purpose, be deemed to have
been nominated by a Board composed of persons described in clause (x);

 

(iii)  The consummation
(i.e., closing)
of a reorganization, merger or consolidation involving the Company, unless,
following such reorganization, merger or consolidation, all or substantially
all of the individuals and entities who were the respective beneficial owners
of the Outstanding Common Stock and Company Voting Securities immediately prior
to such reorganization, merger or consolidation, following such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than
seventy five percent (75%) of, respectively, the then outstanding shares of
common 

 

4

 

stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors or trustees,
as the case may be, of the entity resulting from such reorganization, merger or
consolidation in substantially the same proportion as their ownership of the
Outstanding Common Stock and Company Voting Securities immediately prior to
such reorganization, merger or consolidation, as the case may be;

 

(iv)  The consummation
(i.e., closing) of a sale or
other disposition of all or substantially all the assets of the Company,
unless, following such sale or disposition, all or substantially all of the
individuals and entities who were the respective beneficial owners of the
Outstanding Common Stock and Company Voting Securities immediately prior to
such reorganization, merger or consolidation, following such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than
seventy five percent (75%) of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors or trustees, as the
case may be, of the entity purchasing such assets in substantially the same
proportion as their ownership of the Outstanding Common Stock and Company
Voting Securities immediately prior to such sale or disposition, as the case
may be; or

 

(v)  a complete
liquidation or dissolution of the Company.

 

(e)                                  Code
means the Internal Revenue Code of 1986, as amended. References to a
section of the Code shall include that section and any comparable section or
sections of any future legislation that amends, supplements or supersedes said
section.

 

(f)                                    Committee
means the Compensation Committee of the Board or the Board, in the
discretion of the Board.

 

(g)                                 Common
Stock means Common Stock of the Company, par value $0.0017 par value per
share.

 

(h)                                 Company has the
meaning set forth in the Notice.

 

(i)                                     Company
Voting Securities means the combined voting power of all outstanding
voting securities of the Company entitled to vote generally in the election of
directors to the Board.

 

(j)                                     Exchange
Act means the Securities Exchange Act of 1934, as amended.

 

(k)                                  Exercise
Price means $1.25 per Share that is subject to
the Option.

 

(l)                                     Fair
Market Value means, on any date, (i) the closing sale price
of a share of Common Stock, as reported on the Composite Tape for New York
Stock Exchange Listed Companies (or other established stock exchange or market
on which the Common Stock is regularly traded) on such date or, if there were
no sales on such date, on the last date preceding such date on which a sale was
reported; (ii) if the Common Stock is not listed for trading on an
established stock exchange, but a regular, active public market for the Common
Stock exists (as determined in the sole discretion of the Committee or Board,
whose discretion shall be conclusive and binding), the average of the closing
bid and ask quotations per share of Common Stock in the over-the-counter (“OTC”)
market for such shares on such date or, if no 

 

5

 

quotations are available on such date, on the last date preceding such
date on which a quotation was reported; or (iii) if shares of Common Stock
are not listed for trading on an established stock exchange or quoted on the
OTC, Fair Market Value shall be determined by the Committee in good faith.

 

(m)                               Merger
means any merger, reorganization, consolidation, exchange, transfer of
assets or other transaction having similar effect involving the Company.

 

(n)                                 Non-Qualified
Stock Option means a stock option which is not a stock option
within the meaning of Section 422 of the Code.

 

(o)                                 Option means the
option to purchase the Shares set forth in the Notice.

 

(p)                                 Optionee has the
meaning set forth in the Notice.

 

(q)                                 Outstanding
Common Stock means, at any time, the issued and outstanding
shares of Common Stock.

 

(r)                                    Securities
Act means the Securities Act of 1933, as amended.

 

(s)                                  Shares has the
meaning set forth in the Notice.

 

(t)                                    Subsidiary
means a subsidiary of the Company within the meaning of
Section 424(f) of the Code.

 

(u)                                 Vesting
Schedule has the meaning set forth in the Notice.

 

9.                                       Miscellaneous.

 

(a)                                  Limitation on Transfer.  The Optionee’s rights and
interest under the Agreement may not be assigned or transferred other than by
will or the laws of descent and distribution, and during the lifetime of the
Optionee, only the Optionee personally (or the Optionee’s personal
representative) may exercise rights under the Agreement.  The Optionee’s Beneficiary may exercise the
Optionee’s rights to the extent they are exercisable under the Agreement
following the death of the Optionee.  The
terms of the Agreement shall be binding upon the executors, administrators,
heirs, successors and assigns of the Optionee.

 

(b)                                 Adjustments to Reflect Capital Changes.

 

(i) Recapitalization.  The number of Shares subject to
the Option and the Exercise Price for such Shares shall be appropriately
adjusted to reflect any stock dividend, stock split, combination or exchange of
Shares, merger, consolidation or other change in capitalization with a similar
substantive effect upon the Option.  The
Committee shall have the power and sole discretion to determine the amount of
the adjustment to be made in each case.

 

(ii) Merger.  After any Merger in which the Company is the
surviving corporation, the Optionee shall, at no additional cost, be entitled
upon any exercise of the Option, in lieu of the number of Shares exercisable
pursuant to the Option, the number and class of shares or other securities to
which the Optionee would have been 

 

6

 

entitled pursuant to the terms of the Merger if, at the time of the
Merger, the Optionee had been the holder of record of a number of Shares equal
to the number of Shares exercisable pursuant to the Option.  Comparable rights shall accrue to the
Optionee in the event of successive Mergers of the character described above.

 

(iii)  Options to Purchase Shares or Stock of Acquired
Companies.  After
any Merger in which the Company or a Subsidiary shall be a surviving
corporation, the Committee may grant substituted options under the Agreement,
pursuant to Section 424 of the Code, replacing old options granted under a
plan of another party to the Merger whose shares or stock subject to the old
options may no longer be issued following the Merger.  The foregoing adjustments and manner of
application of the foregoing provisions shall be determined by the Committee in
its sole discretion.  Any such
adjustments may provide for the elimination of any fractional shares which
might otherwise become subject to the Option.

 

(c)                                  Notices.  All notices, requests, deliveries, payments,
demands and other communications which are required or permitted to be given
under the Agreement shall be in writing and shall be either delivered
personally or sent by registered or certified mail, or by private courier,
return receipt requested, postage prepaid to the parties at their respective
addresses set forth herein, or to such other address as either shall have
specified by notice in writing to the other. 
Notice shall be deemed duly given hereunder when delivered or mailed as
provided herein.

 

(d)                                 Waiver.  The waiver by any party hereto of a breach of
any provision of the Agreement shall not operate or be construed as a waiver of
any other or subsequent breach.

 

(e)                                  Entire
Agreement.  The
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof.

 

(f)                                    Binding Effect;
Successors.  The
Agreement shall inure to the benefit of and be binding upon the parties hereto
and to the extent not prohibited herein, their respective heirs, successors,
assigns and representatives.  Nothing in
the Agreement, express or implied, is intended to confer on any person other
than the parties hereto and as provided above, their respective heirs,
successors, assigns and representatives any rights, remedies, obligations or
liabilities.

 

(g)                                 Governing Law.  The Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.

 

(h)                                 Headings.  The headings contained herein are for the
sole purpose of convenience of reference, and shall not in any way limit or
affect the meaning or interpretation of any of the terms or provisions of the
Agreement.

 

(i)                                     Rights as a Stockholder.  An
Optionee or a transferee of an Option pursuant to Section 9(a) shall have
no rights as a stockholder with respect to Shares covered by the Option until
the Optionee or transferee shall have become the holder of record of any such
Shares, and no adjustment shall be made for dividends in cash or other property
or distributions or other rights with respect to any such Shares for which the
record date is prior to the date on which the Optionee or a transferee of the
Option shall have become the holder of record of any 

 

7

 

such Shares covered by the Option; provided, however,
that the Optionee is entitled to Share adjustments to reflect capital changes
under Section 9(b).

 

(j)                                     No Right to
Continued Employment.  Nothing in
the Agreement shall confer upon the Optionee any right to continue in the
employ or service of the Company or affect the right of the Company to
terminate the Optionee’s employment or service at any time.

 

(k)                                  Not Includable
for Benefit Purposes.  Payments
received by the Optionee pursuant to the Option shall not be included in the
determination of benefits under any pension, group insurance or other benefit
plan, applicable to the Optionee which is maintained by the Company or any of
its Subsidiaries, except as may be provided under the terms of such plans or
determined by the Board.

 

(l)                                     Authority for
Interpretation of Agreement.  The Committee shall have exclusive and final
authority in each determination, interpretation or other action affecting the
Option and the Agreement.  The Committee
shall have the sole discretionary authority to impose such conditions and
restrictions on the Option as it determines appropriate, and to take such steps
in connection with the Option granted hereunder as it may deem necessary or
advisable.  Actions taken by the
Committee under this Section 10(l) shall comply with Section 16(b) of
the Exchange Act, the performance-based provisions of Section 162(m) of
the Code, and the regulations promulgated under each of such statutory
provisions, or the respective successors to such statutory provisions or
regulations, as in effect, from time to time, to the extent applicable.

 

(m)                               Further Assurances.  The Optionee agrees, upon demand of the
Company or the Committee, to do all acts and execute, deliver and perform all
additional documents, instruments and agreements which may be reasonably
required by the Company or the Committee, as the case may be, to implement the
provisions and purposes of the Agreement.

 

(n)                                 No Strict Construction.  No
rule of strict construction shall be implied against the Company, the
Committee, or any other person in the interpretation of any of the terms of the
Agreement.

 

(o)                                 Modification of Option.  The
Option may not be modified (unless such modification does not materially
decrease the value of the Option) after the date of grant except by express
written agreement between the Company and the Optionee, and provided that any
such change shall be approved by the Committee.

 

8MD Filed by Filing Services Canada Inc.  (403) 717-3898

STOCK OPTION AGREEMENT

LEXARIA CORP.

THIS AGREEMENT is entered into as of the 16th day of August, 2010 (the “Date of Grant”)

BETWEEN:

LEXARIA CORP., a company incorporated pursuant to the laws

of the State of Nevada, of Suite 950 1130 West Pender,

Vancouver, BC V6E 4A4

(the “Company”)

AND:

Tom Ihrke, of 8395 Briar Creek Drive

Germantown, TN 38139

(the “Optionee”)

WHEREAS:

A. 

The Board of Directors of the Company (the “Board”) has approved and adopted the 2010 Stock Option Plan (the “Plan”), pursuant to which the Board is authorized to grant to employees and other selected persons stock

       options to purchase common shares of the Company (the “Common Stock”);

B. 

The Plan provides for the granting of stock options that either (i) are intended to qualify as “Incentive Stock Options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or (ii)

       do not qualify under Section 422 of the Code (“Non-Qualified Stock Options”); and

C.

 The Board has authorized the grant to the Optionee of options to purchase a total of 150,000 shares of Common Stock (the “Options”), which Options are intended to be (select one):

[ ] Incentive Stock Options;

[ X ] Non Qualified Stock Options

NOW THEREFORE, the Company agrees to offer to the Optionee the option to purchase, upon the terms and conditions set forth herein and in the Plan, 150,000 shares of Common Stock.  Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Plan.

 

 

1.

 Exercise Price. The exercise price of the options shall be US $0.20 per share.

2.

 Limitation on the Number of Shares. If the Options granted hereby are Incentive Stock Options, the number of shares which may be acquired upon exercise thereof is subject to the limitations set forth in Section 5.1 of the Plan.

3.

 Vesting Schedule. The Options shall vest in accordance with Exhibit A.

4.

 Options not Transferable. The Options may not be transferred, assigned, pledged or

hypothecated in any manner (whether by operation of law or otherwise) other than by will, by applicable laws of descent and distribution or, in the case of a Non-Qualified Stock Option, pursuant to a qualified domestic relations order, and shall not be subject to execution, attachment or similar process; provided, however, that if the Options represent a Non-Qualified Stock Option, such Option is transferable without payment of consideration to immediate family members of the Optionee or to trusts or partnerships established exclusively for the benefit of the Optionee and Optionee’s immediate family members. Upon any attempt to transfer, pledge, hypothecate or otherwise dispose of any Option or of any right or privilege conferred by the Plan contrary to the provisions thereof, or upon the sale, levy or attachment or similar process upon the rights and privileges conferred by the Plan, such Option shall thereupon terminate and become null and void.

5.

Investment Intent. By accepting the Options, the Optionee represents and agrees that none of the shares of Common Stock purchased upon exercise of the Options will be distributed in violation of applicable federal and state laws and regulations. In addition, the Company may require, as a condition of exercising the Options, that the Optionee execute an undertaking, in such a form as the Company shall reasonably specify, that the Stock is being purchased only for investment and without any then-present intention to sell or distribute such shares.

6.

 Termination of Employment and Options. Vested Options shall terminate, to the extent not previously exercised, upon the occurrence of the first of the following events:

(a)

Expiration. Five (5) years from the Date of Grant.

(b) Termination for Cause. The date of the first discovery by the Company of any
reason for the termination of an Optionee’s employment or contractual relationship with the Company or any related company for cause (as
determined in the sole discretion of the Plan Administrator), and, if an Optionee’s
employment is suspended pending any investigation by the Company as to whether the Optionee’s employment should be terminated for cause, the
Optionee’s rights under this Agreement and the Plan shall likewise be suspended
during the period of any such investigation.

(c) Termination Due to Death or Disability. The expiration of one (1) year from the 
date of the death of the Optionee or cessation of an Optionee’s employment or
contractual relationship by reason of disability (as defined in Section 5.1(g) of the
Plan). If an Optionee’s employment or contractual relationship is terminated by
death, any Option held by the Optionee shall be exercisable only by the person or 

 persons to whom such Optionee’s rights under such Option shall pass by the
Optionee’s will or by the laws of descent and distribution.

(d) Termination for Any Other Reason. The expiration of ninety (90) days from the
date of an Optionee’s termination of employment or contractual relationship with
the Company or any Related Corporation for any reason whatsoever other than termination of service as a director, cause, death or Disability (as defined in
Section 5.1(g) of the Plan). Each unvested Option granted pursuant hereto shall terminate immediately upon termination of the Optionee’s employment or contractual relationship with the Company for any reason whatsoever, including Disability unless vesting is accelerated in accordance with Section 5.1(f)
of the Plan.

7.

 Stock. In the case of any stock split, stock dividend or like change in the nature of shares of Stock covered by this Agreement, the number of shares and exercise price shall be proportionately adjusted as set forth in Section 5.1(m) of the Plan.

8.

Exercise of Option. Options shall be exercisable, in full or in part, at any time after
vesting, until termination; provided, however, that any Optionee who is subject to the reporting and liability provisions of Section 16 of the Securities Exchange Act of 1934 with respect to the Common Stock shall be precluded from selling or transferring any Common Stock or other security underlying an Option during the six (6) months immediately following the grant of that Option. If less than all of the shares included in the vested portion of any Option are purchased, the remainder may be purchased at any subsequent time prior to the expiration of the Option term. No portion of any Option for less than fifty (50) shares (as adjusted pursuant to Section 5.1(m) of the Plan) may be exercised; provided, that if the vested portion of any Option is less than fifty (50) shares, it may be exercised with respect to all shares for which it is vested. Only whole shares may be issued pursuant to an Option, and to the extent that an Option covers less than one (1) share, it is unexercisable.  Each exercise of the Option shall be by means of delivery of a notice of election to exercise (which may be in the form attached hereto as Exhibit B) to the President of the Company at its principal executive office, specifying the number of shares of Common Stock to be purchased and accompanied by payment in cash by certified check or cashier’s check in the amount of the full exercise price for the Common Stock to be purchased. In addition to payment in cash by certified check or cashier’s check, an Optionee or transferee of an Option may pay for all or any portion of the aggregate exercise price by complying with one or more of the following alternatives:

(a) by delivering to the Company shares of Common Stock previously held by such
person, duly endorsed for transfer to the Company, or by the Company  withholding shares of Common Stock otherwise deliverable pursuant to exercise
of the Option, which shares of Common Stock received or withheld shall have a fair market value at the date of exercise (as determined by the Plan Administrator) equal to the aggregate purchase price to be paid by the Optionee upon such exercise; or

(b) by complying with any other payment mechanism approved by the Plan
Administrator at the time of exercise. It is a condition precedent to the issuance of shares of Common Stock that the Optionee execute and/or deliver to the Company all documents and withholding taxes required in accordance with
Section 5.1 of the Plan.

9.

 Holding period for Incentive Stock Options. In order to obtain the tax treatment provided for Incentive Stock Options by Section 422 of the Code, the shares of Common Stock received upon exercising any Incentive Stock Options received pursuant to this Agreement must be sold, if at all, after a date which is later of two (2) years from the date of this agreement is entered into or one (1) year from the date upon which the Options are exercised. The Optionee agrees to report sales of shares prior to the above determined date to the Company within one (1) business
day after such sale is concluded. The Optionee also agrees to pay to the Company, within five (5) business days after such sale is concluded, the amount necessary for the Company to satisfy its withholding requirement required by the Code in the manner specified in Section 5.1(l) of the Plan. Nothing in this Section 9 is intended as a representation that Common Stock may be sold without registration under state and federal securities laws or an exemption therefrom or that such registration or exemption will be available at any specified time.

10.

 Resale restrictions may apply. Any resale of the shares of Common Stock received upon exercising any Options will be subject to resale restrictions contained in the securities legislation applicable to the Optionee. The Optionee acknowledges and agrees that the Optionee is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions.

11.

 Subject to 2010
Stock Option Plan. The terms of the Options are subject to the provisions of the Plan, as the same may from time to time be amended, and any inconsistencies between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan, a copy of which has been delivered to the Optionee, and which is available for inspection at the principal offices of the Company.

12.

 Professional Advice. The acceptance of the Options and the sale of Common Stock
issued pursuant to the exercise of Options may have consequences under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Optionee. Accordingly, the Optionee acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with this Agreement and his or her dealings with respect to Options.

Without limiting other matters to be considered with the assistance of the Optionee’s professional advisors, the Optionee should consider: (a) whether upon the exercise of Options, the Optionee will file an election with the Internal
Revenue Service pursuant to Section 83(b) of the Code and the implications of alternative minimum tax pursuant to the Code; (b) the merits and risks of an investment in the underlying shares of Common Stock; and (c) any resale restrictions that might apply under applicable securities laws. 

13.

 No Employment Relationship. Whether or not any Options are to be granted under this Plan shall be exclusively within the discretion of the Plan Administrator, and nothing contained in this Plan shall be construed as giving any person any right to participate under this Plan. The grant of an Option shall in no way constitute any form of agreement or understanding binding on the Company or any Related Company, express or implied, that the Company or any Related Company will employ or contract with an Optionee, for any length of time, nor shall it interfere

in any way with the Company’s or, where applicable, a Related Company’s right to terminate Optionee’s employment at any time, which right is hereby reserved.

14.

 Entire Agreement. This Agreement is the only agreement between the Optionee and the Company with respect to the Options, and this Agreement and the Plan supersede all prior and contemporaneous oral and written statements and representations and contain the entire agreement between the parties with respect to the Options.

15.

 Notices. Any notice required or permitted to be made or given hereunder shall be mailed or delivered personally to the addresses set forth below, or as changed from time to time by written notice to the other:

The Company:

Lexaria Corp.

Suite 950 1130 West Pender Street

Vancouver, BC V6E 4A4

Attention: President

     With a copy to:

Clark Wilson LLP

800-885 West Georgia Street

Vancouver, British Columbia V6C 3H1

Attention: Conrad Nest

The Optionee:

_____________________

_____________________

_____________________

_____________________

LEXARIA CORP.

Per:

Authorized Signatory

____________________________

[Tom Ihrke]

EXHIBIT A

TERMS OF THE OPTION

Name of the
Optionee:  

            
Tom Ihrke

Date of Grant: 

           
August 16, 2010

Designation:

Qualified Stock Options

1. Number of Options granted:

           
150,000 stock options

2. Purchase Price: 

$0.20 per share

3. Vesting Date: 

75,000 options on August 16, 2010;

75,000 options on August 16, 2011;

4. Expiration Date: 

August 16, 2015

EXHIBIT B

To:

Lexaria Corp.

Suite 950 1130 West Pender

Vancouver, BC V6E 4A4

Attention: President

Notice of Election to Exercise

This Notice of Election to Exercise shall constitute proper notice pursuant to Section 5.1(h) of Lexaria Corp.’s (the “Company”) 2010 Stock Option Plan (the “Plan”) and Section 8 of that certain Stock Option Agreement (the “Agreement”) dated as of the _______ day of __________________, 20___, between the Company and the undersigned.

The undersigned hereby elects to exercise Optionee’s option to purchase __________________ shares of the common stock of the Company at a price of US$0.20 per share, for aggregate consideration of US$__________, on the terms and conditions set forth in the Agreement and the Plan. Such aggregate consideration, in the form specified in Section 8 of the Agreement, accompanies this notice.

The Optionee hereby directs the Company to issue, register and deliver the certificates representing the shares as follows:

 

 

		
	

Registration Information:

      

                                                                                   

      Name to appear on certificates	

Delivery Instructions:

      

                                                                                   

      Name
  
  	

  	

  
  
  	

                                                                             

      Address	

                                                                              

      Address
  
  	

 
      
  	

 
      
 
  
  	

                                                                             	

                                                                             

      
  
  	

  	

 
      
 
  
  	

                                                                             

      

      

      	

                                                                             

      Telephone Number

      

      
  

 

DATED at ____________________________________, the _______ day of _______________, 20___.

_________________________________

(Name of Optionee – Please type or print)

_________________________________

(Signature and, if applicable, Office)

_________________________________

(Address of Optionee)

_________________________________

(City, State, and Zip Code of
Optionee)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]