Document:

STOCK
      OPTION AGREEMENT

    

    THIS
      STOCK OPTION AGREEMENT
      (this
“Agreement”) is entered into as of December 19, 2007 by and between Richard
      Papalian (the “Optionee”) and Sionix Corporation, a Nevada corporation (the
“Corporation”). The foregoing parties are sometimes referred to hereinafter
      individually as a “Party” or collectively as the “Parties.” All capitalized
      terms not otherwise defined herein shall have the definition ascribed to them
      in
      the Grant Notice or the Employment Agreement (as hereinafter
      defined).

    

    WHEREAS,
      on
      December 19, 2007, the Corporation entered into in an employment agreement
      with
      the Optionee (the “Employment Agreement”), pursuant to which the Corporation is
      to grant an Option to the Optionee; and

    

    WHEREAS,
      this
      Agreement is executed pursuant to, and is intended to carry out the purposes
      of,
      the Employment Agreement in connection with the Corporation’s grant of the
      Option to the Optionee.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements hereinafter set forth,
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the Parties do hereby covenant and agree as
      follows:

    

    1. Grant
      of Option.
      The
      Corporation hereby grants to the Optionee, as of the Grant Date, an Option
      to
      purchase up to the aggregate number of Option Shares specified in the Grant
      Notice. The Option Shares shall be purchasable from time to time during the
      Option term specified in Paragraph 2 below at the Exercise Price, subject to
      the
      vesting provisions set forth in the Grant Notice. Notwithstanding the foregoing,
      initially the Option shall not be exercisable as to 340,000 of the Option Shares
      (the “Excluded Shares”), which represents 5% of the shares of Common Stock
      issuable upon conversion of those certain Convertible Promissory Notes, dated
      June 6, 2007, issued to: (i) Calico Capital Management, LLC in the principal
      amount of $52,000 (with respect to 260,000 shares), (ii) BRAX Capital, LLC
      in
      the principal amount of $8,000 (with respect to 40,000 shares), and (iii) Gene
      Salkind MD in the principal amount of $8,000 (with respect to 40,000 shares)
      (collectively, the “Calico Notes”), which are not convertible except upon the
      satisfaction of certain conditions set forth therein. As and to the extent
      the
      Calico Notes become convertible, the Corporation shall provide the Optionee
      with
      prompt written notice that the Excluded Shares have become exercisable
      hereunder, subject to the terms of this Agreement and the Grant Notice.

    

    2. Option
      Term.
      The
      Option shall have a term of five (5) years measured from the Grant Date and
      shall accordingly expire at the close of business on the Expiration Date, unless
      sooner terminated pursuant to Paragraph 6 or 7 of this Agreement. 

    

    3. Limited
      Transferability.
      

     

    (a) During
      the Optionee’s lifetime, the Option shall be exercisable only by the Optionee
      and shall not be assignable or transferable other than by will or by the laws
      of
      descent and distribution following the Optionee’s death. However, Optionee may
      designate one or more persons as the beneficiary or beneficiaries of this
      Option, so that, if Optionee is holding this Option at the time of his or her
      death, this Option shall, in accordance with such designation, automatically
      be
      transferred to such beneficiary or beneficiaries upon Optionee’s death. Such
      beneficiary or beneficiaries shall take the transferred Option subject to all
      the terms and conditions of this Agreement, including (without limitation)
      the
      limited time period during which this option may, pursuant to Paragraph 6(c),
      be
      exercised following Optionee’s death.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (b) If
      this
      option is designated a Non-Statutory Option in the Grant Notice, then this
      Option may be assigned in whole or in part during Optionee’s lifetime to one or
      more members of Optionee’s family (as defined in Rule 701 promulgated by the
      Securities and Exchange Commission) or to a trust established for the benefit
      of
      one or more such family members or to Optionee’s former spouse, to the extent
      such assignment is in connection with Optionee’s estate plan or pursuant to a
      domestic relations order. The assigned portion shall be exercisable only by
      the
      person or persons who acquire a proprietary interest in the Option pursuant
      to
      such assignment. The terms applicable to the assigned portion shall be the
      same
      as those in effect for this Option immediately prior to such assignment.

     

    (c) Anything
      herein to the contrary notwithstanding, in no event shall the Optionee sell
      during the nine months following the Grant Date (the “Lock-Up Period”) any
      shares of Common Stock acquired upon exercise of the Option. The Optionee
      consents to the placement of a legend to that effect on any Common Stock
      certificates issued to the Optionee during the Lock-Up Period upon exercise
      of
      the Option.

    

    4. Dates
      of Exercise.
      The
      Option shall become exercisable for the Option Shares in one or more
      installments as specified in the Vesting Schedule set forth in the Grant Notice.
      As the Option becomes exercisable for such installments, those installments
      shall accumulate and the Option shall remain exercisable for the accumulated
      installments until the Expiration Date or sooner termination of the Option
      pursuant to Paragraph 6 or 7 of this Agreement.

    

    5. Representations
      of the Optionee.
      The
      Optionee hereby represents as follows:

     

    (a)
      The
      Optionee either has a preexisting personal or business relationship with the
      Corporation or any of its officers, directors or controlling persons, or by
      reason of his business or financial experience or the business or financial
      experience of his professional advisors who are unaffiliated with and who are
      not compensated by the Corporation or any affiliate or selling agent of the
      Corporation, directly or indirectly, could be reasonably assumed to have the
      capacity to protect his own interests in connection with the transaction.

     

     

    (b)
      The
      Optionee is acquiring the Option and, upon exercise, the Option Shares, for
      his
      own account and not with a view to or for sale in connection with any
      distribution thereof. 

     

     

    (c)
      The
      Optionee did not learn of the offer and sale of the Option through the
      publication of any advertisement. 

     

    6. Termination
      of Employment.
      The
      Option term specified in Paragraph 2 shall be subject to the
      following:

    

    (a) if
      during
      the Term the Optionee’s employment is terminated by the Corporation for Cause,
      or by the Optionee without Good Reason, then any as yet unvested Option Shares
      shall be immediately forfeited upon the Termination Date (as defined in the
      Employment Agreement);

    

    (b) if
      during
      the Term the Optionee’s employment is terminated by the Corporation without
      Cause, or by the Optionee for Good Reason, then any as yet unvested Option
      Shares shall immediately vest upon the Termination Date, and shall remain
      exercisable through the Expiration Date;

     

    (c) if
      the
      Optionee’s employment is terminated because of the Optionee’s death or
      Disability, then the Option may be exercised only to the extent that it would
      have been exercisable by the Optionee on the Termination Date and must be
      exercised by the Optionee (or the Optionee’s legal representative or authorized
      assignee) not later than twelve (12) months following the Termination Date;
      and

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (d) in
      the
      event of a Change in Control, the provisions of Paragraph 7 of this Agreement
      shall govern the period for which the Option is to remain exercisable and shall
      supersede any provisions to the contrary herein.

    

    7. Accelerated
      Vesting.

    

    (a) In
      the
      event of a Change in Control, the Option Shares at the time subject to the
      Option but not otherwise vested shall automatically vest in full so that the
      Option shall, immediately prior to the effective date of the Change in Control,
      become fully exercisable for all of those Option Shares and may be exercised
      for
      any or all of those Option Shares as fully-vested shares of Common
      Stock.

    

    (b) Immediately
      following the Change in Control, the Option shall terminate and cease to be
      outstanding.

    

    (c) This
      Agreement shall not in any way affect the right of the Corporation to adjust,
      reclassify, reorganize or otherwise change its capital or business structure
      or
      to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
      of its business or assets.

     

    8. Adjustment
      in Option Shares.

    

    (a) If
      in any
      equity financing (other than the sale or issuance of securities upon the
      exercise or conversion of outstanding options, warrants or convertible notes)
      completed by the Corporation during the Term (a “Dilutive Financing”), the
      Corporation issues shares of Common Stock, or securities convertible into or
      exercisable or exchangeable for shares of Common Stock, at a price, or exercise
      or conversion price, per share that is less than the then Exercise Price, then
      the Option Shares will be immediately and concurrently adjusted, such that
      following the closing of any Dilutive Financing (the “Closing”) the Option
      Shares will represent five percent (5%) of the Corporation’s outstanding Common
      Stock on a fully diluted basis calculated immediately following the Closing.
      If
      any Dilutive Financing occurs in multiple Closings, then such calculation shall
      be made immediately after the final Closing.

    

    (b) 
      Should
      any change be made to the Common Stock by reason of any stock split, stock
      dividend, recapitalization, combination of shares, exchange of shares or other
      change affecting the outstanding Common Stock as a class without the
      Corporation’s receipt of consideration, appropriate adjustments shall be made to
      (i) the total number and/or class of securities subject to this option and
      (ii)
      the Exercise Price in order to reflect such change and thereby preclude a
      dilution or enlargement of benefits hereunder.

    

    9. Right
      of First Refusal.
      If
      during the Term the Corporation offers or proposes to offer its securities
      in
      any transaction the primary purpose of which is to raise capital (a “Proposed
      Financing”), the Optionee shall have a right of first refusal to purchase up to
      fifty percent (50%) of the securities offered in such Proposed Financing (a
      “Right of First Refusal”). The Corporation will provide the Optionee with at
      least ten (10) business days prior written notice of a Proposed Financing in
      accordance with the requirements for giving notice as hereinafter set forth
      in
      Paragraph 14. The notice shall specify therein the number and type of securities
      proposed to be issued, the price and type of consideration to be received,
      and
      any other material terms upon which the Corporation proposes to issue the
      securities. The Optionee will have ten (10) business days following deemed
      delivery of such notice to give the Corporation written notice of his intention
      to exercise the Right of First Refusal. 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    10. Shareholder
      Rights.
      The
      Optionee shall not have any shareholder rights with respect to the Option Shares
      until the Optionee shall have exercised the Option in accordance with this
      Agreement and become a holder of record of the purchased shares.

    

    11. Manner
      of Exercising Option.

    

    (a) In
      order
      to exercise the Option with respect to all or any part of the Option Shares
      for
      which the Option is at the time exercisable, the Optionee (or any other person
      or persons exercising the option) must take the following actions:

    

    (i) Execute
      and deliver to the Corporation a written notice setting forth the number of
      Option Shares for which the Option is exercised.

    

    (ii) Pay
      the
      aggregate Exercise Price for the purchased shares in cash or in one or more
      of
      the following forms:

    

    (A) by
      cancellation of indebtedness of the Corporation to the Optionee, including,
      without limitation, expense reimbursements owed under the Employment
      Agreement;

    

    (B) by
      surrender of shares of Common Stock that either: (1) have been owned by the
      Optionee for more than six (6) months and have been paid for within the meaning
      of Rule 144 promulgated under the Securities Act of 1933, as amended (and,
      if
      such shares were purchased from the Corporation by use of a promissory note,
      such note has been fully paid with respect to such shares); or (2) were obtained
      by the Optionee in the public market;

    

    

    (C) with
      respect only to purchases upon exercise of an Option, and provided that a public
      market for the Corporation’s stock exists:

    

    (1) through
      a
“same day sale” commitment from the Optionee and a broker-dealer that is a
      member of the Financial Industry Regulatory Authority (an “FINRA Dealer”)
      whereby the Optionee irrevocably elects to exercise the Option and to sell
      a
      portion of the shares so purchased to pay for the Exercise Price, and whereby
      the FINRA Dealer irrevocably commits upon receipt of such shares to forward
      the
      Exercise Price directly to the Corporation; or

    

    (2) through
      a
“margin” commitment from the Optionee and a FINRA Dealer whereby the Optionee
      irrevocably elects to exercise the Option and to pledge the shares so purchased
      to the FINRA Dealer in a margin account as security for a loan from the FINRA
      Dealer in the amount of the Exercise Price, and whereby the FINRA Dealer
      irrevocably commits upon receipt of such shares to forward the Exercise Price
      directly to the Corporation; or

    

    (D) by
      any
      combination of the foregoing. 

    

    Except
      to
      the extent the sale and remittance procedure is utilized in connection with
      the
      Option exercise, payment of the Exercise Price in one of the forms provided
      above must accompany the written notice delivered to the Corporation in
      connection with the Option exercise.

    (iii) Furnish
      to the Corporation appropriate documentation that the person or persons
      exercising the Option (if other than Optionee) have the right to exercise the
      Option.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iv) Execute
      and deliver to the Corporation such written representations as may be requested
      by the Corporation in order for it to comply with the applicable requirements
      of
      federal and state securities laws.

    

    (v) Make
      appropriate arrangements with the Corporation for the satisfaction of all
      federal, state and local income and employment tax withholding requirements
      applicable to the Option exercise.

    

    (b) As
      soon
      as practical after the exercise date, the Corporation shall issue to or on
      behalf of the Optionee (or any other person or persons exercising the Option)
      a
      certificate for the purchased Option Shares, with the appropriate legends
      affixed thereto.

    

    (c) Fractions
      of Option Shares will not be issued but will either be replaced by a cash
      payment equal to the fair market value of such fraction of an Option Share
      (based on the closing price of the Common Stock reported by Bloomberg LP on
      the
      replacement date) or will be rounded up to the nearest whole share of Common
      Stock, as determined by the Corporation.

    

    12. Compliance
      with Laws and Regulations.
      The
      exercise of the Option and the issuance of the Option Shares upon such exercise
      shall be subject to compliance by the Corporation and the Optionee with all
      applicable requirements of law relating thereto and with all applicable
      regulations of any national securities exchange or interdealer quotation system
      on which the Corporation’s Common Stock may be listed or quoted at the time of
      such exercise and issuance.

    

    13. Successors
      and Assigns.
      Except
      to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this
      Agreement shall inure to the benefit of, and be binding upon, the Corporation
      and its successors and assigns and the Optionee, the Optionee’s assigns and the
      legal representatives, heirs and legatees of the Optionee’s estate.

    

    14. Notices.
      Any
      notice required to be given or delivered to the Corporation under the terms
      of
      this Agreement shall be in writing and addressed to the Corporation at its
      principal executive offices. Any notice required to be given or delivered to
      the
      Optionee shall be in writing and addressed to the Optionee at the last address
      the Optionee filed in writing with the Corporation. All notices shall be deemed
      effective upon personal delivery or upon deposit in the U.S. mail, postage
      prepaid and properly addressed to the Party to be notified.

    

    15. Governing
      Law.
      The
      interpretation, performance and enforcement of this Agreement shall be governed
      by the laws of the State of California without resort to that State’s
      conflict-of-laws rules.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Parties hereto have executed this Stock Option Agreement as of the date first
      set forth above.

    

    

    
      	 	
              CORPORATION:

            
	 	 
	 	
              SIONIX
                CORPORATION

            
	 	 
	 	 
	 	
              By:

            	
              /s/
                Robert Mc Cray 
                
                

              

            
	 	
              Name:

            	
              Robert
                Mc Cray

            
	 	
              Title:

            	
              Chief
                Financial Officer

            
	 	 
	 	 
	 	
              OPTIONEE:

            
	 	 
	 	 
	 	
              /s/ Richard
                    Papalian
              

                

            
	 	
              RICHARD
                PAPALIAN

            

    

     

    
      
        
        

      

      
        6INDEMNIFICATION
      AGREEMENT

    

    This
      Agreement is made and entered into this 19th day of December 2007 (the
“Agreement”), by and between Sionix Corporation, a Nevada corporation (the
“Company”, which term shall include, where appropriate, any Entity (as
      hereinafter defined) controlled directly or indirectly by the Company) and
      Richard Papalian (the “Indemnitee”).

    

    WHEREAS,
      the
      Indemnitee is an officer of the Company;

    

    WHEREAS,
      as an
      officer of the Company, the Indemnitee is exposed to significant litigation
      risks and expenses; 

    

    WHEREAS,
      in
      light of the foregoing, the Company desires to provide the Indemnitee with
      specific contractual assurance of the Indemnitee’s rights to full
      indemnification against litigation risks and expenses (regardless, among other
      things, of any amendment to or revocation of any of the Company’s Articles of
      Incorporation or by-laws or any change in the ownership of the Company or the
      composition of its Board of Directors); and

    

    NOW,
      THEREFORE,
      in
      consideration of the promises and the covenants contained herein, the Company
      and the Indemnitee do hereby covenant and agree as follows:

    

    1. Definitions.

    

    (a) “Corporate
      Status” describes the status of a person who is serving or has served (i) as a
      director of the Company, including as a member of any committee thereof, (ii)
      as
      an officer of the Company, (iii) in any capacity with respect to any employee
      benefit plan of the Company, or (iv) as a director, partner, trustee, officer,
      employee, or agent of any other Entity at the request of the Company. For
      purposes of subsection (iv) of this Section 1(a), an officer or director of
      the
      Company who is serving or has served as a director, partner, trustee, officer,
      employee or agent of a Subsidiary (as defined below) shall be deemed to be
      serving at the request of the Company.

    

    (b) “Entity”
      shall mean any corporation, partnership, limited liability company, joint
      venture, trust, foundation, association, organization or other legal
      entity.

    

    (c) “Expenses”
      shall mean all direct and indirect fees, costs and expenses of any nature
      whatsoever actually and reasonably incurred in connection with the
      investigation, preparation of a defense, appeal of or settlement of any
      Proceeding (as defined below), including, without limitation, reasonable
      attorneys fees, disbursements and retainers (including, without limitation,
      any
      such fees, disbursements and retainers incurred by the Indemnitee pursuant
      to
      Sections 8 and 11(c) of this Agreement), fees and disbursements of expert
      witnesses, private investigators and professional advisors (including, without
      limitation, accountants and investment bankers), court costs, transcript costs,
      fees of experts, travel expenses, duplicating, printing and binding costs,
      telephone and fax transmission charges, postage, delivery services, secretarial
      services and other disbursements and expenses; provided, however, that Expenses
      shall not include judgments, fines, penalties or amounts paid in settlement
      of a
      Proceeding.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d) “Indemnifiable
      Expenses”, “Indemnifiable Liabilities” and “Indemnifiable Amounts” shall have
      the meanings ascribed to those terms in Section 3(a) below.

    

    (e) “Liabilities”
      shall mean judgments, damages, liabilities, losses, penalties, excise taxes,
      fines and amounts paid in settlement.

    

    (f) “Proceeding”
      shall mean any threatened, pending or completed claim, action, suit,
      arbitration, alternate dispute resolution process, investigation, administrative
      hearing, appeal, or any other proceeding, whether civil, criminal,
      administrative, arbitrative or investigative, whether formal or informal,
      whether or not he is serving in such capacity at the time any Expense or
      Liability is incurred for which indemnification or reimbursement can be provided
      under this Agreement, including a proceeding initiated by the Indemnitee
      pursuant to Section 11 of this Agreement to enforce the Indemnitee’s rights
      hereunder or an action brought by or in the right of the Company.

    

    (g) “Subsidiary”
      shall mean any corporation, partnership, limited liability company, joint
      venture, trust or other Entity of which the Company owns (either directly or
      through or together with another Subsidiary of the Company) either (i) a general
      partner, managing member or other similar interest or (ii) (A) 50% or more
      of
      the voting power of the voting capital stock or other voting equity interests
      of
      any corporation, partnership, limited liability company, joint venture or other
      Entity, or (B) 50% or more of the outstanding voting capital stock or other
      voting equity interests of any corporation, partnership, limited liability
      company, joint venture or other Entity.

    

    2. Services
      of the Indemnitee. This Agreement shall not impose any obligation on the
      Indemnitee or the Company to continue the Indemnitee’s service to the Company
      beyond any period otherwise required by law or by other agreements or
      commitments of the parties, if any.

    

    3. Agreement
      to Indemnify. The Company agrees to indemnify the Indemnitee as
      follows:

    

    (a) Subject
      to the exceptions contained in Section 4(a) below, if the Indemnitee was or
      is a
      party or is threatened to be made a party to any Proceeding (other than an
      action by or in the right of the Company) by reason of the Indemnitee’s
      Corporate Status,
      the
      Indemnitee shall be indemnified by the Company against all Expenses and
      Liabilities incurred or paid by the Indemnitee in connection with such
      Proceeding (referred to herein as “Indemnifiable Expenses” and “Indemnifiable
      Liabilities”, respectively, and collectively as “Indemnifiable
      Amounts”).

    

    (b) To
      the
      fullest extent permitted by applicable law and subject to the exceptions
      contained in Section 4(b) below, if the Indemnitee was or is a party or is
      threatened to be made a party to any Proceeding by or in the right of the
      Company to procure a judgment in its favor by reason of the Indemnitee’s
      Corporate Status, the Indemnitee shall be indemnified by the Company against
      all
      Indemnifiable Expenses as well as against any amount paid by Indemnitee in
      settlement of the Proceeding.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4. Exceptions
      to Indemnification. Upon receipt of a written claim addressed to the Board
      of
      Directors for indemnification pursuant to Section 3, the Company shall determine
      by any of the methods set forth in Section
      78.751 of the Nevada Revised Statutes
      whether
      the Indemnitee has met the applicable standards of conduct which makes is
      permissible under applicable law to indemnify the Indemnitee. If it is
      determined that the Indemnitee is entitled to indemnification, the Indemnitee
      shall be entitled to such indemnification under Sections 3(a) and 3(b) above
      in
      all circumstances other than the following:

    

    (a) If
      indemnification is requested under Section 3(a) and it has been determined
      that,
      in connection with the subject of the Proceeding out of which the claim for
      indemnification has arisen, the Indemnitee failed to act (i) in good faith
      and
      (ii) in a manner the Indemnitee reasonably believed to be in or not opposed
      to
      the best interests of the Company and, with respect to any criminal action
      or
      proceeding, the Indemnitee had reasonable cause to believe that the Indemnitee’s
      conduct was unlawful, the Indemnitee shall not be entitled to payment of
      Indemnifiable Amounts hereunder.

    

    (b) If
      indemnification is requested under Section 3(b) and

    

    (i) it
      has
      been determined that, in connection with the subject of the Proceeding out
      of
      which the claim for indemnification has arisen, the Indemnitee failed to act
      (A)
      in good faith and (B) in a manner the Indemnitee reasonably believed to be
      in or
      not opposed to the best interests of the Company, the Indemnitee shall not
      be
      entitled to payment of Indemnifiable Expenses hereunder; or

    

    (ii) it
      has
      determined that the Indemnitee is liable to the Company with respect to any
      claim, issue or matter involved in the Proceeding out of which the claim for
      indemnification has arisen, no Indemnifiable Expenses shall be paid with respect
      to such claim, issue or matter unless a court of competent jurisdiction shall
      determine upon application that, despite the adjudication of liability, but
      in
      view of all the circumstances of the case, Indemnitee is fairly and reasonably
      entitled to indemnity for such Indemnifiable Expenses which such court shall
      deem proper.

    

    5. Procedure
      for Payment of Indemnifiable Amounts. The Indemnitee shall submit to the Company
      a written request specifying the Indemnifiable Amounts for which the Indemnitee
      seeks payment under Section 3 of this Agreement and the basis for the claim.
      The
      Company shall pay such Indemnifiable Amounts to the Indemnitee within ten (10)
      calendar days of receipt of the request. At the request of the Company, the
      Indemnitee shall furnish such documentation and information as is reasonably
      available to the Indemnitee and necessary to establish that the Indemnitee
      is
      entitled to indemnification hereunder.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. Indemnification
      for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding
      any
      other provision of this Agreement, and without limiting any such provision,
      to
      the extent that the Indemnitee is, by reason of the Indemnitee’s Corporate
      Status, a party to and is successful, on the merits or otherwise, in any
      Proceeding, the Indemnitee shall be indemnified against all Expenses reasonably
      incurred by the Indemnitee or on the Indemnitee’s behalf in connection
      therewith. If the Indemnitee is not wholly successful in such Proceeding but
      is
      successful, on the merits or otherwise, as to one or more but less than all
      claims, issues or matters in such Proceeding, the Company shall indemnify the
      Indemnitee against all Expenses reasonably incurred by the Indemnitee or on
      the
      Indemnitee’s behalf in connection with each successfully resolved claim, issue
      or matter. For purposes of this Agreement, the termination of any claim, issue
      or matter in such a Proceeding by dismissal, with or without prejudice, shall
      be
      deemed to be a successful result as to such claim, issue or matter.

    

    7. Effect
      of
      Certain Resolutions. Neither the settlement nor termination of any Proceeding
      nor the failure of the Company to award indemnification or to determine that
      indemnification is payable shall create an adverse presumption that the
      Indemnitee is not entitled to indemnification hereunder. In addition, the
      termination of any proceeding by judgment, order, settlement, conviction, or
      upon a plea of nolo contendere or its equivalent shall not create a presumption
      that the Indemnitee did not act in good faith and in a manner which the
      Indemnitee reasonably believed to be in, or not opposed to, the best interests
      of the Company or, with respect to any criminal action or proceeding, had
      reasonable cause to believe that the Indemnitee’s action was
      unlawful.

    

    8. Agreement
      to Advance Expenses; Conditions. The Company shall pay to the Indemnitee all
      Indemnifiable Expenses incurred by the Indemnitee in connection with any
      Proceeding, including a Proceeding by or in the right of the Company, in advance
      of the final disposition of such Proceeding, as the same are incurred. In making
      any such advance, the ability of the Indemnitee to repay shall not be a factor.
      To the extent required by Nevada law, the Indemnitee hereby undertakes to repay
      the amount of Indemnifiable Expenses paid to the Indemnitee if it is finally
      determined by a court of competent jurisdiction that the Indemnitee is not
      entitled under this Agreement to indemnification with respect to such Expenses.
      This undertaking is an unlimited general obligation of the
      Indemnitee.

    

    9. Procedure
      for Advance Payment of Expenses. The Indemnitee shall submit to the Company
      a
      written request specifying the Indemnifiable Expenses for which the Indemnitee
      seeks an advance under Section 8 of this Agreement, together with documentation
      evidencing that the Indemnitee has incurred such Indemnifiable Expenses. Payment
      of Indemnifiable Expenses under Section 8 shall be made no later than ten (10)
      calendar days after the Company’s receipt of such request.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10. Selection
      of Counsel. In the event the Company shall be obligated under this Agreement
      to
      pay Indemnifiable Expenses with respect to any Proceeding, the Company shall
      be
      entitled to assume the defense of such Proceeding with counsel approved by
      the
      Indemnitee, which approval shall not be unreasonably withheld, upon delivery
      of
      written notice to the Indemnitee of the Company’s election to do so. After the
      Company’s assumption of the defense, the Company shall not be liable to the
      Indemnitee under this Agreement for any fees of counsel subsequently incurred
      by
      the Indemnitee with respect to such Proceeding; provided,
      however,
      that (i)
      the Indemnitee shall have the right to employ his own counsel in any such
      Proceeding at the Indemnitee’s expense; and (ii) if the Indemnitee shall have
      reasonably concluded that there may be a conflict of interest by reason of
      the
      representation in such Proceeding of the Indemnitee and the Company and/or
      any
      other defendants by the same counsel, then the Indemnitee may retain his own
      counsel with respect to such Proceeding and the fees and expenses of such
      counsel shall be an amount for which the Indemnitee is entitled to
      indemnification from the Company under this Agreement, and (iii) if the Company
      does not retain counsel after assuming the defense of the Proceeding or if
      counsel does not vigorously defend the Proceeding, then the Indemnitee may
      retain his own counsel with respect to such Proceeding and the fees and expenses
      of such counsel shall be an amount for which the Indemnitee is entitled to
      indemnification from the Company under this Agreement. The Indemnitee shall
      notify the Company in writing of any matter with respect to which the Indemnitee
      intends to seek indemnification hereunder as soon as reasonably practicable
      following the receipt by the Indemnitee of written notice thereof. The written
      notification to the Company shall be addressed to the Board of Directors and
      shall include a description of the nature of the Proceeding and the facts
      underlying the Proceeding and be accompanied by copies of any documents filed
      with the court in which the Proceeding is pending. In addition, the Indemnitee
      shall give the Company such information and cooperation as it may reasonably
      require and as shall be within the Indemnitee’s power.

    

    11. Remedies
      of Indemnitee.

    

    (a) Right
      to
      Petition Court. In the event that the Indemnitee makes a request for payment
      of
      Indemnifiable Amounts under Sections 3 and 5 above, or a request for an advance
      of Indemnifiable Expenses under Sections 8 and 9 above, and the Company fails
      to
      make such payment or advance in a timely manner pursuant to the terms of this
      Agreement, the Indemnitee may petition a court of law to enforce the Company’s
      obligations under this Agreement.

    

    (b) Burden
      of
      Proof. In any judicial proceeding brought under Section 11(a) above, the Company
      shall have the burden of proving that the Indemnitee is not entitled to payment
      of the Indemnifiable Amounts hereunder.

    

    (c) Expenses.
      So long as the Indemnitee prevails in any action he files pursuant to Section
      11(a) or if the Company and the Indemnitee settle such action, the Company
      agrees to reimburse the Indemnitee in full for any Expenses incurred by the
      Indemnitee in connection with investigating, preparing for, litigating,
      defending or settling any action brought by the Indemnitee under Section 11(a)
      above, or in connection with any claim or counterclaim brought by the Company
      in
      connection therewith.

    

    (d) Validity
      of Agreement. The Company shall be precluded from asserting in any Proceeding,
      including, without limitation, an action under Section 11(a) above, that the
      provisions of this Agreement are not valid, binding and enforceable or that
      there is insufficient consideration for this Agreement and shall stipulate
      in
      court that the Company is bound by all the provisions of this
      Agreement.

    

    (e) Failure
      to Act Not a Defense. The failure of the Company (including its Board of
      Directors or any committee thereof, independent legal counsel or stockholders)
      to make a determination concerning the permissibility of the payment of
      Indemnifiable Amounts or the advance of Indemnifiable Expenses under this
      Agreement shall not be a defense in any action brought under Section 11(a)
      above, and shall not create a presumption that such payment or advance is not
      permissible.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    12. Representations
      and Warranties of the Company. The Company hereby represents and warrants to
      the
      Indemnitee as follows:

    

    (a) Authority.
      The Company has all necessary power and authority to enter into, and be bound
      by
      the terms of, this Agreement, and the execution, delivery and performance of
      the
      undertakings contemplated by this Agreement have been duly authorized by the
      Company.

    

    (b) Enforceability.
      This Agreement, when executed and delivered by the Company in accordance with
      the provisions hereof, shall be a legal, valid and binding obligation of the
      Company, enforceable against the Company in accordance with its terms, except
      as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      moratorium, reorganization or similar laws affecting the enforcement of
      creditors’ rights generally.

    

    13. Insurance.
      In the event the Company obtains directors and officers liability insurance,
      the
      Company shall use its reasonable best efforts to maintain such coverage in
      effect and 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 officers and directors. If, at the time of
      the receipt of a notice of a claim pursuant to Section 8 hereof, the Company
      has
      director and officer liability insurance in effect, the Company shall give
      prompt notice of the commencement of such Proceeding to the insurers in
      accordance with the procedures set forth in the respective policies. The Company
      shall thereafter take all necessary or desirable action to cause such insurers
      to pay, on behalf of the Indemnitee, all amounts payable as a result of such
      Proceeding in accordance with the terms of such policies.

    

    14. Fees
      and
      Expenses. During the term of the Indemnitee’s service as an officer or director,
      the Company shall promptly reimburse the Indemnitee for all reasonable travel
      and other reasonable expenses incurred by the Indemnitee in connection with
      the
      Indemnitee’s service as an officer or director or member of any board committee
      or otherwise in connection with the Company’s business.

    

    15. Contract
      Rights Not Exclusive. The rights to payment of Indemnifiable Amounts and
      advancement of Indemnifiable Expenses provided by this Agreement shall be in
      addition to, but not exclusive of, any other rights which Indemnitee may have
      at
      any time under applicable law, the Company’s by-laws or articles of
      incorporation, or any other agreement, vote of stockholders or directors (or
      a
      committee of directors), or otherwise, both as to action in Indemnitee’s
      official capacity and as to action in any other capacity as a result of
      Indemnitee’s serving as a director or officer of the Company.

    

    16. Successors.
      This Agreement shall be (a) binding upon all successors and assigns of the
      Company (including any transferee of all or a substantial portion of the
      business, stock and/or assets of the Company and any direct or indirect
      successor by merger or consolidation or otherwise by operation of law) and
      (b)
      binding on and shall inure to the benefit of the heirs, personal
      representatives, executors and administrators of Indemnitee. This Agreement
      shall continue for the benefit of Indemnitee and such heirs, personal
      representatives, executors and administrators after Indemnitee has ceased to
      have Corporate Status.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    17. Subrogation.
      In the event of any payment of Indemnifiable Amounts under this Agreement,
      the
      Company shall be subrogated to the extent of such payment to all of the rights
      of contribution or recovery of Indemnitee against other persons, and Indemnitee
      shall take, at the request of the Company, all reasonable action necessary
      to
      secure such rights, including the execution of such documents as are necessary
      to enable the Company to bring suit to enforce such rights.

    

    18. Change
      in
      Law. To the extent that a change in Nevada law (whether by statute or judicial
      decision) shall permit broader indemnification or advancement of expenses than
      is provided under the terms of the by-laws of the Company and this Agreement,
      Indemnitee shall be entitled to such broader indemnification and advancements,
      and this Agreement shall be deemed to be amended to such extent.

    

    19. Severability.
      Whenever possible, each provision of this Agreement shall be interpreted in
      such
      a manner as to be effective and valid under applicable law, but if any provision
      of this Agreement, or any clause thereof, shall be determined by a court of
      competent jurisdiction to be illegal, invalid or unenforceable, in whole or
      in
      part, such provision or clause shall be limited or modified in its application
      to the minimum extent necessary to make such provision or clause valid, legal
      and enforceable, and the remaining provisions and clauses of this Agreement
      shall remain fully enforceable and binding on the parties.

    

    20. Indemnitee
      as Plaintiff. Except as provided in Section 11(c) of this Agreement and in
      the
      next sentence, Indemnitee shall not be entitled to payment of Indemnifiable
      Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding
      brought by Indemnitee against the Company, any Entity which it controls, any
      director or officer thereof, or any third party, unless the Company has
      consented to the initiation of such Proceeding. This Section shall not apply
      to
      counterclaims or affirmative defenses asserted by Indemnitee in an action
      brought against Indemnitee.

    

    21. Modifications
      and Waiver. Except as provided in Section 18 above with respect to changes
      in
      Nevada law which broaden the right of Indemnitee to be indemnified by the
      Company, no supplement, modification or amendment of this Agreement shall be
      binding unless executed in writing by each of the parties hereto. No waiver
      of
      any of the provisions of this Agreement shall be deemed or shall constitute
      a
      waiver of any other provisions of this Agreement (whether or not similar),
      nor
      shall such waiver constitute a continuing waiver.

    

    22. Notices.
      Any notice or demand which is required or provided to be given under this
      Agreement shall be deemed to have been sufficiently given and received for
      all
      purposes when delivered by hand, telecopy, telex or other method of facsimile,
      or five days after being sent by certified or registered mail, postage and
      charges prepaid, return receipt requested, or two days after being sent by
      overnight delivery providing receipt of delivery, if to the Company, to the
      address on record with the Securities and Exchange Commission as reported on
      its
      website www.sec.gov
      or at
      any other address designated by the Company to the Indemnitee in writing; if
      to
      the Indemnitee, at the address set forth below such Indemnitee’s name on the
      signature page hereto, or at any other address designated by the Indemnitee
      to
      the Company in writing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    23. Governing
      Law. This Agreement shall be governed by and construed and enforced under the
      laws of the State of Nevada without giving effect to the provisions thereof
      relating to conflicts of law.

    

    24. Inability
      of the Company to Indemnify. Both the Company and the Indemnitee acknowledge
      that in certain instances federal law or applicable public policy may prohibit
      the Company from indemnifying its directors and officers under this Agreement
      or
      otherwise. The Indemnitee understands and acknowledges that the Company has
      undertaken or may be required in the future to undertake with the appropriate
      state or federal regulatory agency to submit for approval any request for
      indemnification, and has undertaken or may be required in the future to
      undertake with the Securities and Exchange Commission to submit the question
      of
      indemnification to a court in certain circumstances for a determination of
      the
      Company’s right under public policy to indemnify the Indemnitee.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    

    
      	 	
              COMPANY:

            
	 	 
	 	
              Sionix
                Corporation

            
	 	 
	 	 
	 	
              By:

            	/s/
              Robert McCray 
	 	
                  Name:
                Robert McCray

            
	 	
                  Title:
                Chief Financial Officer

            
	 	 
	 	 
	 	
              INDEMNITEE:

            
	 	 
	 	
              /s/ Richard
                    Papalian

            
	 	
              Name:
                Richard Papalian

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]