Document:

INDEMNIFICATION AGREEMENT

      This  Indemnification  Agreement  ("Agreement")  is made as of January 31,
2006, by and between IPEX, Inc., a Nevada corporation (the "Company"),  and D.W.
Grimsley, Jr., Esq. ("Indemnitee"),  a director and/or officer or key executive,
employee or consultant of the Company, or a person serving at the request of the
Company as a director, officer, employee or agent of another enterprise.

                                    RECITALS

      WHEREAS,  the  Indemnitee  has served as a director  of the Company and in
such capacity has rendered valuable services to the Company;

      WHEREAS, effective January 24, 2006, the Indemnitee resigned as a director
of the Company;

      WHEREAS, the Company's Articles of Incorporation  provide that no director
or officer of the Company  shall be  personally  liable to the Company or any of
its  stockholders  for  damages  for breach of  fiduciary  duty as a director or
officer  involving any act or omission of any such  director or officer,  except
for (i) acts or  omissions  which  involve  intentional  misconduct,  fraud or a
knowing  violation  of the law, or (ii) the payment of dividends in violation of
Section 78.300 of the Nevada Revised Statutes;

      WHEREAS,  the  Company's  Bylaws  require  the  Company to  indemnify  its
directors  and officers  against all costs,  charges and  expenses  actually and
reasonably  incurred  by them  including  an amount  paid to settle an action or
satisfy a judgment inactive  criminal or administrative  action or proceeding to
which  they are made a party by  reason of being or having  been a  director  or
officer of the Company, including an action brought by the Company;

      WHEREAS,  the Company  has  Directors  & Officers  and Company  Securities
Liability  insurance  coverage  (Policy No.:  35530DO205)  with Gotham Insurance
Company,  which  insurance  coverage was effective  beginning  April 8, 2005 and
expires April 8, 2006 (the "Policy Period");

      WHEREAS,  the Company has investigated the availability and sufficiency of
liability   insurance  and  applicable   existing   contractual   and  statutory
indemnification  provisions  to provide its directors and officers with adequate
protection  against various legal risks and potential  liabilities to which such
individuals  are  subject  due to  their  positions  with  the  Company  and has
concluded  that  such  insurance  and the  existing  contractual  and  statutory
provisions  may  provide  inadequate  and  unacceptable  protection  to  certain
individuals who have served as its directors and/or officers; and

      WHEREAS,  the Board of Directors has determined,  after due  consideration
and  investigation of the terms and provisions of this Agreement and the various
other options  available to the Company and the Indemnitee in lieu hereof,  that
this  Agreement is not only  reasonable and prudent but necessary to promote and
ensure the best interests of the Company and its stockholders.

                                       1
<PAGE>

      NOW,  THEREFORE,  in consideration of the services of the Indemnitee,  the
Company and the Indemnitee do hereby agree as follows:

      1. Definitions. As used in this Agreement:

            (a) The term "Proceeding"  shall include any threatened,  pending or
completed inquiry,  hearing,  investigation,  action, suit, arbitration or other
alternative  dispute  resolution  mechanism or  proceeding,  formal or informal,
whether  brought in the name of the Company or otherwise and whether of a civil,
criminal or administrative  or investigative  nature, by reason of the fact that
the Indemnitee is or was a director and/or officer of the Company,  or is or was
serving at the request of the Company as a director,  officer, employee or agent
of another  enterprise,  whether or not he or she is serving in such capacity at
the time any  liability  or expense is  incurred  for which  indemnification  or
reimbursement is to be provided under this Agreement.

            (b) The term "Expenses"  includes,  without  limitation:  attorneys'
fees, costs,  disbursements and retainers;  accounting and witness fees; fees of
experts;  travel and deposition costs;  transcript costs, filing fees, telephone
charges,  postage,  copying costs,  delivery service fees and other expenses and
obligations  of any nature  whatsoever  paid or incurred in connection  with any
investigations, judicial or administrative proceedings and appeals, amounts paid
in settlement by or on behalf of Indemnitee,  and any expenses of establishing a
right to  indemnification,  pursuant to this  Agreement or otherwise,  including
reasonable  compensation for time spent by the Indemnitee in connection with the
investigation,  defense or appeal of a Proceeding or action for  indemnification
for which he or she is not  otherwise  compensated  by the  Company or any third
party.  The term  "Expenses"  does not include the amount of  judgments,  fines,
penalties or ERISA excise taxes actually levied against the Indemnitee.

      2.  Indemnification  in Third Party Actions.  To the extent not covered by
D&O  Insurance  (defined  below),  including  by  reason  of the  fact  that the
Proceeding due to which a claim is made under this Agreement involves facts that
occurred prior to the Policy Period,  the Company shall indemnify the Indemnitee
if the  Indemnitee  is a party  to or  threatened  to be  made a party  to or is
otherwise  involved in any Proceeding (other than a Proceeding by or in the name
of the Company to procure a judgment  in its favor),  by reason of the fact that
the Indemnitee is or was a director and/or officer of the Company,  or is or was
serving at the request of the Company as a director,  officer, employee or agent
of another enterprise,  against all Expenses,  judgments,  fines,  penalties and
ERISA  excise  taxes  actually  and  reasonably  incurred by the  Indemnitee  in
connection  with the defense or settlement of such a Proceeding,  to the fullest
extent  permitted by  applicable  corporate  law and the  Company's  Articles of
Incorporation;  provided  that any  settlement  of a  Proceeding  be approved in
writing by the Company.

      3. Indemnification in Proceedings by or In the Name of the Company. To the
extent not covered by D&O  Insurance,  including  by reason of the fact that the
Proceeding due to which a claim is made under this Agreement involves facts that
occurred prior to the Policy Period,  the Company shall indemnify the Indemnitee
if the  Indemnitee  is a party  to or  threatened  to be  made a party  to or is
otherwise involved in any Proceeding by or in the name of the Company to procure
a judgment  in its favor by reason of the fact that the  Indemnitee  was or is a
director  and/or officer of the Company,  or is or was serving at the request of
the Company as a  director,  officer,  employee or agent of another  enterprise,
against all Expenses, judgments, fines penalties and ERISA excise taxes actually
and  reasonably  incurred by the  Indemnitee in  connection  with the defense or
settlement of such a Proceeding,  to the fullest extent  permitted by applicable
corporate law and the Company's Articles of Incorporation.

                                       2
<PAGE>

      4. Conclusive  Presumption  Regarding Standards of Conduct. The Indemnitee
shall be conclusively presumed to have met the relevant standards of conduct, if
any, as defined by applicable  corporate  law, for  indemnification  pursuant to
this Agreement,  unless a determination  is made that the Indemnitee has not met
such  standards  (i) by the Board of  Directors  by a majority  vote of a quorum
thereof  consisting of directors who were not parties to the  Proceeding  due to
which a claim is made  under this  Agreement,  (ii) by the  shareholders  of the
Company by majority vote of a quorum thereof  consisting of shareholders who are
not parties to the Proceeding due to which a claim is made under this Agreement,
(iii) in a written  opinion by independent  counsel,  selection of whom has been
approved  by the  Indemnitee  in  writing,  or  (iv)  by a  court  of  competent
jurisdiction.

      5.  Indemnification of Expenses of Successful Party.  Notwithstanding  any
other  provision of the  Agreement,  to the extent that the  Indemnitee has been
successful  in defense of any  Proceeding  or in defense of any claim,  issue or
matter  therein,  on the  merits or  otherwise,  including  the  dismissal  of a
Proceeding  without  prejudice  or the  settlement  of a  Proceeding  without an
admission of liability, to the extent not covered by D&O Insurance (including by
reason of the fact that the  Proceeding  due to which a claim is made under this
Agreement  involves  facts  that  occurred  prior  to the  Policy  Period),  the
Indemnitee  shall be  indemnified  against all Expenses  incurred in  connection
therewith to the fullest extent permitted by applicable corporate law.

      6.  Advances  of  Expenses.  To the extent not  covered by D&O  Insurance,
including by reason of the fact that the Proceeding due to which a claim is made
under this  Agreement  involves  facts that occurred prior to the Policy Period,
the Expenses incurred by the Indemnitee in any Proceeding shall be paid promptly
by the  Company in advance of the final  disposition  of the  Proceeding  at the
written request of the Indemnitee to the fullest extent  permitted by applicable
corporate law;  provided that the Indemnitee shall undertake in writing to repay
any advances if it is ultimately  determined that the Indemnitee is not entitled
to indemnification.

      7.  Partial  Indemnification.  If the  Indemnitee  is  entitled  under any
provision of this Agreement to  indemnification  by the Company for a portion of
the Expenses,  judgments,  fines,  penalties or ERISA excise taxes  actually and
reasonably  incurred  by him or her in the  investigation,  defense,  appeal  or
settlement of any  Proceeding but not,  however,  for the total amount of his or
her Expenses,  judgments,  fines,  penalties or ERISA excise taxes,  the Company
shall  nevertheless  indemnify  the  Indemnitee  for the  portion  of  Expenses,
judgments,  fines,  penalties or ERISA excise taxes to which the  Indemnitee  is
entitled.

      8. Indemnification Procedure; Determination of Right to Indemnification.

            (a)  Promptly  after  receipt  by the  Indemnitee  of  notice of the
commencement  of any  Proceeding,  the Indemnitee  shall,  if a claim in respect
thereof is to be made  against  the  Company  under this  Agreement,  notify the
Company of the  commencement  thereof in writing.  The omission to so notify the
Company,  however,  shall not relieve it from any liability which it may have to
the Indemnitee otherwise than under this Agreement.

                                       3
<PAGE>

            (b) If a claim for  indemnification or advances under this Agreement
is not paid by the Company within thirty (30) days of receipt of written notice,
the rights  provided by this Agreement shall be enforceable by the Indemnitee in
any  court of  competent  jurisdiction.  The  burden  of  proving  by clear  and
convincing  evidence that  indemnification or advances are not appropriate shall
be on the Company.  Neither the failure of the directors or  stockholders of the
Company or its independent  legal counsel to have made a determination  prior to
the commencement of such action that  indemnification  or advances are proper in
the  circumstances  because the Indemnitee  has met the  applicable  standard of
conduct, if any, nor an actual determination by the directors or shareholders of
the Company or  independent  legal counsel that the  Indemnitee  has not met the
applicable  standard  of  conduct,  shall be a defense to the action or create a
presumption  for the  purpose of an action that the  Indemnitee  has not met the
applicable standard of conduct.

            (c) The  Indemnitee's  Expenses  incurred  in  connection  with  any
Proceeding  concerning his or her right to  indemnification or advances in whole
or part  pursuant to this  Agreement  shall also be  indemnified  by the Company
regardless of the outcome of such Proceeding.

            (d) With  respect to any  Proceeding  for which  indemnification  is
requested,  the  Company  will be  entitled  to  participate  therein at its own
expense and, except as otherwise provided below, to the extent that it may wish,
the Company may assume the defense  thereof,  with counsel  satisfactory  to the
Indemnitee.  After notice from the Company to the  Indemnitee of its election to
assume  the  defense  of a  Proceeding,  the  Company  will not be liable to the
Indemnitee  for  any  Expenses   subsequently  incurred  by  the  Indemnitee  in
connection with the defense  thereof,  other than as provided below. The Company
shall not settle any  Proceeding in any manner which would impose any penalty or
limitation on the  Indemnitee  without the  Indemnitee's  written  consent.  The
Indemnitee  shall  have  the  right  to  employee  his  or  her  counsel  in any
Proceeding, but the fees and expenses of such counsel incurred after notice from
the Company of its assumption of the defense of the  Proceeding  shall be at the
expense  of  the  Indemnitee,  unless  (i)  the  employment  of  counsel  by the
Indemnitee has been  authorized by the Company,  (ii) the Indemnitee  shall have
reasonably  concluded  that  there may be a conflict  of  interest  between  the
Company and the  Indemnitee  in the conduct of the defense of a  Proceeding,  in
each of which cases the fees and expenses of the  Indemnitee's  counsel shall be
advances by the Company. The Company shall not be entitled to assume the defense
of any  Proceeding  brought  by or on behalf of the  Company  or as to which the
Indemnitee  has concluded  that there may be a conflict of interest  between the
Company and the Indemnitee.

      9. Limitations on Indemnification.  No payments pursuant to this Agreement
shall be made by the Company:

                                       4
<PAGE>

            (a) To indemnify or advance  funds to the  Indemnitee  expenses with
respect to a Proceeding  initiated or brought  voluntarily by the Indemnitee and
not by way of defense,  except with respect to Proceedings  brought to establish
or enforce a right to indemnification  under this Agreement or any other statute
or law or  otherwise  as  required  under  applicable  corporate  law,  but such
indemnification  or  advancement  of expenses  may be provided by the Company in
specific cases if the Board of Directors finds it to be appropriate;

            (b) To indemnify the Indemnitee for any Expenses,  judgment,  fines,
penalties or ERISA excise taxes sustained in any Proceeding for which payment is
actually made to the Indemnitee under a valid and collectible  insurance policy,
except in  respect  of any  excess  beyond  the  amount of  payment  under  such
insurance;

            (c) To indemnify the Indemnitee for any Expenses,  judgment,  fines,
and/or  penalties  sustained in any Proceeding for an accounting of profits made
from  the  purchase  or sale by the  Indemnitee  of  securities  of the  Company
pursuant to the  provisions of Section 16(b) of the  Securities  Exchange Act of
1934, the rules and regulations promulgated thereunder and amendments thereto or
similar provisions of any federal, state or local statutory law;

            (d) To indemnify the Indemnitee for any Expenses,  judgment,  fines,
and/or penalties sustained in any Proceeding for acts or omissions which involve
intentional misconduct, fraud or a knowing violation of the law; and

            (e) If a court of competent jurisdiction finally determines that any
indemnification hereunder is unlawful.

      10. Maintenance of Liability Insurance.

            (a) The Company  hereby  covenants  and agrees that,  as long as the
Indemnitee  continues to serve as a director  and/or  officer of the Company and
thereafter as long as the Indemnitee may be subject to any possible  Proceeding,
the Company,  subject to subsection  (c), shall promptly  obtain and maintain in
full  force and  effect  directors'  and  officers'  liability  insurance  ("D&O
Insurance") in reasonable amounts from established and reputable insurers.

            (b) In all D&O insurance policies,  the Indemnitee shall be named as
an insured in such a manner as to provide  the  Indemnitee  the same  rights and
benefits  as are  accorded  to  the  most  favorably  insured  of the  Company's
directors and/or officers.

            (c)  Notwithstanding  the  foregoing,  the  Company  shall  have  no
obligation to obtain or maintain D&O Insurance if the Company determines, in its
sole discretion,  that such insurance is not reasonably  available,  the premium
costs for such  insurance  is so  limited  by  exclusions  that it  provides  an
insufficient  benefit,  or  the  Indemnitee  is  covered  by  similar  insurance
maintained by a subsidiary of the Company.

      11. Indemnification  Hereunder Not Exclusive. The indemnification provided
by this Agreement shall not be deemed exclusive of any other rights to which the
Indemnitee  may be entitled  under the Articles of  Incorporation,  Bylaws,  any
agreement,  vote  of  shareholders  or  disinterested  directors,  provision  of
applicable corporate law, or otherwise, both as to action in his or her official
capacity  and as to action in another  capacity on behalf of the  Company  while
holding such office.

      12.  Successors  and Assigns.  This  Agreement  shall be binding upon, and
shall inure to the benefit of the  Indemnitee  and his or her heirs,  executors,
administrators  and  assigns,  whether  or not  Indemnitee  has  ceased  to be a
director or officer, and the Company and its successors and assigns.

                                       5
<PAGE>

      13. Severability.  Each and every paragraph,  sentence, term and provision
hereof is separate  and  distinct so that if any  paragraph,  sentence,  term or
provision  hereof shall be held to be invalid or  unenforceable  for any reason,
such   invalidity  or   unenforceability   shall  not  affect  the  validity  or
enforceability  of any other paragraph,  sentence,  term or provision hereof. To
the  extent  required,  any  paragraph,  sentence,  term  or  provision  of this
Agreement shall be modified by a court of competent jurisdiction to preserve its
validity   and  to  provide   the   Indemnitee   with  the   broadest   possible
indemnification permitted under applicable corporate law.

      14. Savings Clause. If this Agreement or any paragraph,  sentence, term or
provision  hereof  is  invalidated  on any  ground  by any  court  of  competent
jurisdiction,  the Company shall nevertheless indemnify the Indemnitee as to any
Expenses,  judgments,  fines,  penalties  for ERISA excise taxes  incurred  with
respect  to any  Proceeding  to the  full  extent  permitted  by any  applicable
paragraph,  sentence,  term or  provision  of this  Agreement  that has not been
invalidated or by any other applicable provision of applicable corporate law.

      15. Interpretation;  Governing Law. This Agreement shall be construed as a
whole and in accordance with its fair meaning. Headings are for convenience only
and shall not be used in construing  meaning.  This Agreement  shall be governed
and interpreted in accordance with the laws of the State of Nevada.

      16.  Amendments.  No  amendment,  waiver,  modification,   termination  or
cancellation  of this Agreement  shall be effective  unless in writing signed by
the party  against  whom  enforcement  is  sought.  The  indemnification  rights
afforded to the Indemnitee hereby are contract rights and may not be diminished,
eliminated or otherwise affected by amendments to the Articles of Incorporation,
Bylaws, or by other agreements, including D&O Insurance policies.

      17.  Counterparts.   This  Agreement  may  be  executed  in  one  or  more
counterparts,  all of which shall be considered  one and the same  agreement and
shall become  effective when one or more  counterparts  have been signed by each
party and delivered to the other.

      18. Notices. Any notice required to be given under this Agreement shall be
directed:

      If to the Company to:             IPEX, Inc.
                                        9255 Towne Centre Drive, Suite 235
                                        San Diego, CA 92121
                                        Facsimile: (310) 752-1486

      With a copy to (which shall not constitute notice):

                                        Marc J. Ross, Esq.
                                        Sichenzia Ross Friedman Ference LLP
                                        1065 Avenue of the Americas
                                        New York, NY 10018
                                        Facsimile: (212) 930-9725

                                       6
<PAGE>

      If to the Indemnitee to:          D.W. Grimsley, Jr., Esq.
                                        ----------------------------------------
                                        ----------------------------------------
                                        Facsimile:
                                                  ------------------------------

            or to such other address as either party shall designate in writing.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>

      IN WITNESS WHEREOF,  the parties have executed this Indemnity Agreement as
of the date first written above.

IPEX, INC.                              INDEMNITEE:

By:
-------------------------------         ----------------------------------------
Name:  Sothi Thillairajah               D.W. Grimsley, Jr., Esq.
Title: Chief Operating Officer

                                       8INDEMNIFICATION AGREEMENT

      This  Indemnification  Agreement  ("Agreement")  is made as of January 31,
2006, by and between IPEX, Inc., a Nevada corporation (the "Company"), and Alice
Campbell ("Indemnitee"), a director and/or officer or key executive, employee or
consultant of the Company,  or a person serving at the request of the Company as
a director, officer, employee or agent of another enterprise.

                                    RECITALS

      WHEREAS,  the  Indemnitee  has served as a director  of the Company and in
such capacity has rendered valuable services to the Company;

      WHEREAS, effective January 24, 2006, the Indemnitee resigned as a director
of the Company;

      WHEREAS, the Company's Articles of Incorporation  provide that no director
or officer of the Company  shall be  personally  liable to the Company or any of
its  stockholders  for  damages  for breach of  fiduciary  duty as a director or
officer  involving any act or omission of any such  director or officer,  except
for (i) acts or  omissions  which  involve  intentional  misconduct,  fraud or a
knowing  violation  of the law, or (ii) the payment of dividends in violation of
Section 78.300 of the Nevada Revised Statutes;

      WHEREAS,  the  Company's  Bylaws  require  the  Company to  indemnify  its
directors  and officers  against all costs,  charges and  expenses  actually and
reasonably  incurred  by them  including  an amount  paid to settle an action or
satisfy a judgment inactive  criminal or administrative  action or proceeding to
which  they are made a party by  reason of being or having  been a  director  or
officer of the Company, including an action brought by the Company;

      WHEREAS,  the Company  has  Directors  & Officers  and Company  Securities
Liability  insurance  coverage  (Policy No.:  35530DO205)  with Gotham Insurance
Company,  which  insurance  coverage was effective  beginning  April 8, 2005 and
expires April 8, 2006 (the "Policy Period");

      WHEREAS,  the Company has investigated the availability and sufficiency of
liability   insurance  and  applicable   existing   contractual   and  statutory
indemnification  provisions  to provide its directors and officers with adequate
protection  against various legal risks and potential  liabilities to which such
individuals  are  subject  due to  their  positions  with  the  Company  and has
concluded  that  such  insurance  and the  existing  contractual  and  statutory
provisions  may  provide  inadequate  and  unacceptable  protection  to  certain
individuals who have served as its directors and/or officers; and

      WHEREAS,  the Board of Directors has determined,  after due  consideration
and  investigation of the terms and provisions of this Agreement and the various
other options  available to the Company and the Indemnitee in lieu hereof,  that
this  Agreement is not only  reasonable and prudent but necessary to promote and
ensure the best interests of the Company and its stockholders.

      NOW,  THEREFORE,  in consideration of the services of the Indemnitee,  the
Company and the Indemnitee do hereby agree as follows:

                                       1
<PAGE>

      1. Definitions. As used in this Agreement:

            (a) The term "Proceeding"  shall include any threatened,  pending or
completed inquiry,  hearing,  investigation,  action, suit, arbitration or other
alternative  dispute  resolution  mechanism or  proceeding,  formal or informal,
whether  brought in the name of the Company or otherwise and whether of a civil,
criminal or administrative  or investigative  nature, by reason of the fact that
the Indemnitee is or was a director and/or officer of the Company,  or is or was
serving at the request of the Company as a director,  officer, employee or agent
of another  enterprise,  whether or not he or she is serving in such capacity at
the time any  liability  or expense is  incurred  for which  indemnification  or
reimbursement is to be provided under this Agreement.

            (b) The term "Expenses"  includes,  without  limitation:  attorneys'
fees, costs,  disbursements and retainers;  accounting and witness fees; fees of
experts;  travel and deposition costs;  transcript costs, filing fees, telephone
charges,  postage,  copying costs,  delivery service fees and other expenses and
obligations  of any nature  whatsoever  paid or incurred in connection  with any
investigations, judicial or administrative proceedings and appeals, amounts paid
in settlement by or on behalf of Indemnitee,  and any expenses of establishing a
right to  indemnification,  pursuant to this  Agreement or otherwise,  including
reasonable  compensation for time spent by the Indemnitee in connection with the
investigation,  defense or appeal of a Proceeding or action for  indemnification
for which he or she is not  otherwise  compensated  by the  Company or any third
party.  The term  "Expenses"  does not include the amount of  judgments,  fines,
penalties or ERISA excise taxes actually levied against the Indemnitee.

      2.  Indemnification  in Third Party Actions.  To the extent not covered by
D&O  Insurance  (defined  below),  including  by  reason  of the  fact  that the
Proceeding due to which a claim is made under this Agreement involves facts that
occurred prior to the Policy Period,  the Company shall indemnify the Indemnitee
if the  Indemnitee  is a party  to or  threatened  to be  made a party  to or is
otherwise  involved in any Proceeding (other than a Proceeding by or in the name
of the Company to procure a judgment  in its favor),  by reason of the fact that
the Indemnitee is or was a director and/or officer of the Company,  or is or was
serving at the request of the Company as a director,  officer, employee or agent
of another enterprise,  against all Expenses,  judgments,  fines,  penalties and
ERISA  excise  taxes  actually  and  reasonably  incurred by the  Indemnitee  in
connection  with the defense or settlement of such a Proceeding,  to the fullest
extent  permitted by  applicable  corporate  law and the  Company's  Articles of
Incorporation;  provided  that any  settlement  of a  Proceeding  be approved in
writing by the Company.

      3. Indemnification in Proceedings by or In the Name of the Company. To the
extent not covered by D&O  Insurance,  including  by reason of the fact that the
Proceeding due to which a claim is made under this Agreement involves facts that
occurred prior to the Policy Period,  the Company shall indemnify the Indemnitee
if the  Indemnitee  is a party  to or  threatened  to be  made a party  to or is
otherwise involved in any Proceeding by or in the name of the Company to procure
a judgment  in its favor by reason of the fact that the  Indemnitee  was or is a
director  and/or officer of the Company,  or is or was serving at the request of
the Company as a  director,  officer,  employee or agent of another  enterprise,
against all Expenses, judgments, fines penalties and ERISA excise taxes actually
and  reasonably  incurred by the  Indemnitee in  connection  with the defense or
settlement of such a Proceeding,  to the fullest extent  permitted by applicable
corporate law and the Company's Articles of Incorporation.

                                       2
<PAGE>

      4. Conclusive  Presumption  Regarding Standards of Conduct. The Indemnitee
shall be conclusively presumed to have met the relevant standards of conduct, if
any, as defined by applicable  corporate  law, for  indemnification  pursuant to
this Agreement,  unless a determination  is made that the Indemnitee has not met
such  standards  (i) by the Board of  Directors  by a majority  vote of a quorum
thereof  consisting of directors who were not parties to the  Proceeding  due to
which a claim is made  under this  Agreement,  (ii) by the  shareholders  of the
Company by majority vote of a quorum thereof  consisting of shareholders who are
not parties to the Proceeding due to which a claim is made under this Agreement,
(iii) in a written  opinion by independent  counsel,  selection of whom has been
approved  by the  Indemnitee  in  writing,  or  (iv)  by a  court  of  competent
jurisdiction.

      5.  Indemnification of Expenses of Successful Party.  Notwithstanding  any
other  provision of the  Agreement,  to the extent that the  Indemnitee has been
successful  in defense of any  Proceeding  or in defense of any claim,  issue or
matter  therein,  on the  merits or  otherwise,  including  the  dismissal  of a
Proceeding  without  prejudice  or the  settlement  of a  Proceeding  without an
admission of liability, to the extent not covered by D&O Insurance (including by
reason of the fact that the  Proceeding  due to which a claim is made under this
Agreement  involves  facts  that  occurred  prior  to the  Policy  Period),  the
Indemnitee  shall be  indemnified  against all Expenses  incurred in  connection
therewith to the fullest extent permitted by applicable corporate law.

      6.  Advances  of  Expenses.  To the extent not  covered by D&O  Insurance,
including by reason of the fact that the Proceeding due to which a claim is made
under this  Agreement  involves  facts that occurred prior to the Policy Period,
the Expenses incurred by the Indemnitee in any Proceeding shall be paid promptly
by the  Company in advance of the final  disposition  of the  Proceeding  at the
written request of the Indemnitee to the fullest extent  permitted by applicable
corporate law;  provided that the Indemnitee shall undertake in writing to repay
any advances if it is ultimately  determined that the Indemnitee is not entitled
to indemnification.

      7.  Partial  Indemnification.  If the  Indemnitee  is  entitled  under any
provision of this Agreement to  indemnification  by the Company for a portion of
the Expenses,  judgments,  fines,  penalties or ERISA excise taxes  actually and
reasonably  incurred  by him or her in the  investigation,  defense,  appeal  or
settlement of any  Proceeding but not,  however,  for the total amount of his or
her Expenses,  judgments,  fines,  penalties or ERISA excise taxes,  the Company
shall  nevertheless  indemnify  the  Indemnitee  for the  portion  of  Expenses,
judgments,  fines,  penalties or ERISA excise taxes to which the  Indemnitee  is
entitled.

      8. Indemnification Procedure; Determination of Right to Indemnification.

            (a)  Promptly  after  receipt  by the  Indemnitee  of  notice of the
commencement  of any  Proceeding,  the Indemnitee  shall,  if a claim in respect
thereof is to be made  against  the  Company  under this  Agreement,  notify the
Company of the  commencement  thereof in writing.  The omission to so notify the
Company,  however,  shall not relieve it from any liability which it may have to
the Indemnitee otherwise than under this Agreement.

                                       3
<PAGE>

            (b) If a claim for  indemnification or advances under this Agreement
is not paid by the Company within thirty (30) days of receipt of written notice,
the rights  provided by this Agreement shall be enforceable by the Indemnitee in
any  court of  competent  jurisdiction.  The  burden  of  proving  by clear  and
convincing  evidence that  indemnification or advances are not appropriate shall
be on the Company.  Neither the failure of the directors or  stockholders of the
Company or its independent  legal counsel to have made a determination  prior to
the commencement of such action that  indemnification  or advances are proper in
the  circumstances  because the Indemnitee  has met the  applicable  standard of
conduct, if any, nor an actual determination by the directors or shareholders of
the Company or  independent  legal counsel that the  Indemnitee  has not met the
applicable  standard  of  conduct,  shall be a defense to the action or create a
presumption  for the  purpose of an action that the  Indemnitee  has not met the
applicable standard of conduct.

            (c) The  Indemnitee's  Expenses  incurred  in  connection  with  any
Proceeding  concerning his or her right to  indemnification or advances in whole
or part  pursuant to this  Agreement  shall also be  indemnified  by the Company
regardless of the outcome of such Proceeding.

            (d) With  respect to any  Proceeding  for which  indemnification  is
requested,  the  Company  will be  entitled  to  participate  therein at its own
expense and, except as otherwise provided below, to the extent that it may wish,
the Company may assume the defense  thereof,  with counsel  satisfactory  to the
Indemnitee.  After notice from the Company to the  Indemnitee of its election to
assume  the  defense  of a  Proceeding,  the  Company  will not be liable to the
Indemnitee  for  any  Expenses   subsequently  incurred  by  the  Indemnitee  in
connection with the defense  thereof,  other than as provided below. The Company
shall not settle any  Proceeding in any manner which would impose any penalty or
limitation on the  Indemnitee  without the  Indemnitee's  written  consent.  The
Indemnitee  shall  have  the  right  to  employee  his  or  her  counsel  in any
Proceeding, but the fees and expenses of such counsel incurred after notice from
the Company of its assumption of the defense of the  Proceeding  shall be at the
expense  of  the  Indemnitee,  unless  (i)  the  employment  of  counsel  by the
Indemnitee has been  authorized by the Company,  (ii) the Indemnitee  shall have
reasonably  concluded  that  there may be a conflict  of  interest  between  the
Company and the  Indemnitee  in the conduct of the defense of a  Proceeding,  in
each of which cases the fees and expenses of the  Indemnitee's  counsel shall be
advances by the Company. The Company shall not be entitled to assume the defense
of any  Proceeding  brought  by or on behalf of the  Company  or as to which the
Indemnitee  has concluded  that there may be a conflict of interest  between the
Company and the Indemnitee.

      9. Limitations on Indemnification.  No payments pursuant to this Agreement
shall be made by the Company:

                                       4
<PAGE>

            (a) To indemnify or advance  funds to the  Indemnitee  expenses with
respect to a Proceeding  initiated or brought  voluntarily by the Indemnitee and
not by way of defense,  except with respect to Proceedings  brought to establish
or enforce a right to indemnification  under this Agreement or any other statute
or law or  otherwise  as  required  under  applicable  corporate  law,  but such
indemnification  or  advancement  of expenses  may be provided by the Company in
specific cases if the Board of Directors finds it to be appropriate;

            (b) To indemnify the Indemnitee for any Expenses,  judgment,  fines,
penalties or ERISA excise taxes sustained in any Proceeding for which payment is
actually made to the Indemnitee under a valid and collectible  insurance policy,
except in  respect  of any  excess  beyond  the  amount of  payment  under  such
insurance;

            (c) To indemnify the Indemnitee for any Expenses,  judgment,  fines,
and/or  penalties  sustained in any Proceeding for an accounting of profits made
from  the  purchase  or sale by the  Indemnitee  of  securities  of the  Company
pursuant to the  provisions of Section 16(b) of the  Securities  Exchange Act of
1934, the rules and regulations promulgated thereunder and amendments thereto or
similar provisions of any federal, state or local statutory law;

            (d) To indemnify the Indemnitee for any Expenses,  judgment,  fines,
and/or penalties sustained in any Proceeding for acts or omissions which involve
intentional misconduct, fraud or a knowing violation of the law; and

            (e) If a court of competent jurisdiction finally determines that any
indemnification hereunder is unlawful.

      10. Maintenance of Liability Insurance.

            (a) The Company  hereby  covenants  and agrees that,  as long as the
Indemnitee  continues to serve as a director  and/or  officer of the Company and
thereafter as long as the Indemnitee may be subject to any possible  Proceeding,
the Company,  subject to subsection  (c), shall promptly  obtain and maintain in
full  force and  effect  directors'  and  officers'  liability  insurance  ("D&O
Insurance") in reasonable amounts from established and reputable insurers.

            (b) In all D&O insurance policies,  the Indemnitee shall be named as
an insured in such a manner as to provide  the  Indemnitee  the same  rights and
benefits  as are  accorded  to  the  most  favorably  insured  of the  Company's
directors and/or officers.

            (c)  Notwithstanding  the  foregoing,  the  Company  shall  have  no
obligation to obtain or maintain D&O Insurance if the Company determines, in its
sole discretion,  that such insurance is not reasonably  available,  the premium
costs for such  insurance  is so  limited  by  exclusions  that it  provides  an
insufficient  benefit,  or  the  Indemnitee  is  covered  by  similar  insurance
maintained by a subsidiary of the Company.

                                       5
<PAGE>

      11. Indemnification  Hereunder Not Exclusive. The indemnification provided
by this Agreement shall not be deemed exclusive of any other rights to which the
Indemnitee  may be entitled  under the Articles of  Incorporation,  Bylaws,  any
agreement,  vote  of  shareholders  or  disinterested  directors,  provision  of
applicable corporate law, or otherwise, both as to action in his or her official
capacity  and as to action in another  capacity on behalf of the  Company  while
holding such office.

      12.  Successors  and Assigns.  This  Agreement  shall be binding upon, and
shall inure to the benefit of the  Indemnitee  and his or her heirs,  executors,
administrators  and  assigns,  whether  or not  Indemnitee  has  ceased  to be a
director or officer, and the Company and its successors and assigns.

      13. Severability.  Each and every paragraph,  sentence, term and provision
hereof is separate  and  distinct so that if any  paragraph,  sentence,  term or
provision  hereof shall be held to be invalid or  unenforceable  for any reason,
such   invalidity  or   unenforceability   shall  not  affect  the  validity  or
enforceability  of any other paragraph,  sentence,  term or provision hereof. To
the  extent  required,  any  paragraph,  sentence,  term  or  provision  of this
Agreement shall be modified by a court of competent jurisdiction to preserve its
validity   and  to  provide   the   Indemnitee   with  the   broadest   possible
indemnification permitted under applicable corporate law.

      14. Savings Clause. If this Agreement or any paragraph,  sentence, term or
provision  hereof  is  invalidated  on any  ground  by any  court  of  competent
jurisdiction,  the Company shall nevertheless indemnify the Indemnitee as to any
Expenses,  judgments,  fines,  penalties  for ERISA excise taxes  incurred  with
respect  to any  Proceeding  to the  full  extent  permitted  by any  applicable
paragraph,  sentence,  term or  provision  of this  Agreement  that has not been
invalidated or by any other applicable provision of applicable corporate law.

      15. Interpretation;  Governing Law. This Agreement shall be construed as a
whole and in accordance with its fair meaning. Headings are for convenience only
and shall not be used in construing  meaning.  This Agreement  shall be governed
and interpreted in accordance with the laws of the State of Nevada.

      16.  Amendments.  No  amendment,  waiver,  modification,   termination  or
cancellation  of this Agreement  shall be effective  unless in writing signed by
the party  against  whom  enforcement  is  sought.  The  indemnification  rights
afforded to the Indemnitee hereby are contract rights and may not be diminished,
eliminated or otherwise affected by amendments to the Articles of Incorporation,
Bylaws, or by other agreements, including D&O Insurance policies.

      17.  Counterparts.   This  Agreement  may  be  executed  in  one  or  more
counterparts,  all of which shall be considered  one and the same  agreement and
shall become  effective when one or more  counterparts  have been signed by each
party and delivered to the other.

      18. Notices. Any notice required to be given under this Agreement shall be
directed:

      If to the Company to:             IPEX, Inc.
                                        9255 Towne Centre Drive, Suite 235
                                        San Diego, CA 92121
                                        Facsimile: (310) 752-1486

      With a copy to (which shall not constitute notice):

                                        Marc J. Ross, Esq.
                                        Sichenzia Ross Friedman Ference LLP
                                        1065 Avenue of the Americas
                                        New York, NY 10018
                                        Facsimile: (212) 930-9725

                                       6
<PAGE>

      If to the Indemnitee to:          D.W. Grimsley, Jr., Esq.
                                        ----------------------------------------
                                        ----------------------------------------
                                        Facsimile:
                                                  ------------------------------

            or to such other address as either party shall designate in writing.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>

      IN WITNESS WHEREOF,  the parties have executed this Indemnity Agreement as
of the date first written above.

IPEX, INC.                              INDEMNITEE:

By:
-------------------------------         ----------------------------------------
Name:  Sothi Thillairajah               D.W. Grimsley, Jr., Esq.
Title: Chief Operating Officer

                                       8

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