Document:

SECURITIES PURCHASE AGREEMENT

      SECURITIES  PURCHASE AGREEMENT (this  "Agreement"),  dated as of March 21,
2006, by and among IPEX, Inc., a Nevada corporation with offices located at 9255
Towne Centre Drive, Suite 235, San Diego, California 92121 (the "Company"),  RGB
Channel,  Inc., a Nevada  corporation and wholly owned subsidiary of the Company
with  offices  located  at 9255  Towne  Centre  Drive,  Suite  235,  San  Diego,
California  92121 ("RGB  Channel"),  and each of the purchasers set forth on the
signature pages hereto (the "Buyers").

      WHEREAS:

      A.    The Company, RGB Channel and the Buyers are executing and delivering
this  Agreement in reliance  upon the  exemption  from  securities  registration
afforded  by the rules and  regulations  as  promulgated  by the  United  States
Securities and Exchange Commission (the "SEC") under the Securities Act of 1933,
as amended (the "Securities Act");

      B.    Buyers desire to purchase and the Company desires to issue and sell,
upon  the  terms  and  conditions  set  forth  in  this  Agreement  10%  secured
convertible notes of the Company, in the form attached hereto as Exhibit "A", in
the  minimum  aggregate  principal  amount  of  Five  Hundred  Thousand  Dollars
($500,000)  (together  with any note(s)  issued in  replacement  thereof or as a
dividend  thereon or otherwise with respect thereto in accordance with the terms
thereof, the "Notes"),  convertible into shares of common stock, $.001 par value
per share,  of the Company (the "IPEX Common  Stock") or shares of common stock,
$.001 par value per share,  of RGB  Channel  (the "RGB Common  Stock")  upon the
terms and subject to the limitations and conditions set forth in such Notes (the
IPEX Common Stock and the RGB Common Stock is collectively referred to herein as
the "Common Stock");

      C.    Each Buyer wishes to purchase,  upon the terms and conditions stated
in this Agreement,  such principal  amount of Notes as is set forth  immediately
below its name on the signature pages hereto;

      D.    Contemporaneous  with the execution and delivery of this  Agreement,
the parties  hereto are executing and  delivering a Security  Agreement,  in the
form  attached  hereto as Exhibit "B" (the  "Security  Agreement"),  pursuant to
which the  Company  has  agreed to grant the  Buyers a first  priority  security
interest  in certain  property  of Company  and RGB Channel to secure the prompt
payment,  performance and discharge in full of all of the Company's  obligations
under the Notes.

      NOW THEREFORE,  the Company,  RGB Channel and each of the Buyers severally
(and not jointly) hereby agree as follows:

      1.    PURCHASE AND SALE OF NOTES.

            a.    Purchase of Notes. On the Closing Date (as defined below), the
Company  shall issue and sell to each Buyer and each Buyer  severally  agrees to
purchase  from the  Company  such  principal  amount  of  Notes as is set  forth
immediately below such Buyer's name on the signature pages hereto.

            b.    Form of Payment.  On the Closing Date (as defined below),  (i)
each Buyer shall pay the  purchase  price for the Notes to be issued and sold to
it at the Closing (as defined below) (the "Purchase  Price") by wire transfer of
immediately  available  funds to the Company,  in accordance  with the Company's
written  wiring  instructions,  against  delivery of the Notes in the  principal
amount  equal to the Purchase  Price,  and (ii) the Company  shall  deliver such
Notes duly executed on behalf of the Company, to such Buyer, against delivery of
such Purchase Price. Wire instructions for the Company are:

<PAGE>

                  Bank:            Wells Fargo Bank
                                   7714 Girard Avenue
                                   La Jolla, CA 92037
                                   USA

                  For Credit to:   Ipex Inc. - Convertible Note Funding Account.
                                   9255 Town Centre Drive
                  Suite 235
                                   San Diego, CA 92121
                                   USA

                  Account No.:     798 610 3153

                  Routing No.:     122000247

            c.    Closing Date.  Subject to the satisfaction (or written waiver)
of the conditions  thereto set forth in Section 5 and Section 6 below,  the date
and time of the issuance and sale of the Notes  pursuant to this  Agreement (the
"Closing Date") shall be 3:00 p.m.,  Eastern  Standard Time on March 3, 2006, or
such  other  mutually  agreed  upon  time.  The  closing  of  the   transactions
contemplated by this Agreement (the  "Closing")  shall occur on the Closing Date
at such location as may be agreed to by the parties.

      2.    BUYERS'  REPRESENTATIONS  AND WARRANTIES.  Each Buyer severally (and
not  jointly)  represents  and  warrants to the Company  solely as to such Buyer
that:

            a.    Investment  Purpose.  As of the  date  hereof,  the  Buyer  is
purchasing the Notes and the shares of Common Stock issuable upon  conversion of
or  otherwise  pursuant  to  the  Notes  (including,  without  limitation,  such
additional  shares of Common  Stock,  if any, as are  issuable (i) on account of
interest on the Notes,  or (ii) as a result of the events  described  in Section
1.5(g) of the Notes, such shares of Common Stock being collectively  referred to
herein  as the  "Conversion  Shares"  and,  collectively  with  the  Notes,  the
"Securities", for its own account and not with a present view towards the public
sale or distribution  thereof,  except pursuant to sales  registered or exempted
from registration under the Securities Act.

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<PAGE>

            b.    Accredited  Investor  Status.  The  Buyer  is  an  "accredited
investor"  as that term is defined in Rule 501(a) of  Regulation  D  promulgated
pursuant to the Securities Act (an "Accredited Investor").

            c.    Reliance  on  Exemptions.   The  Buyer  understands  that  the
Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities
laws and that the  Company is relying  upon the truth and  accuracy  of, and the
Buyer's   compliance   with,  the   representations,   warranties,   agreements,
acknowledgments  and  understandings  of the Buyer set forth  herein in order to
determine the  availability  of such exemptions and the eligibility of the Buyer
to acquire the Securities.

            d.    Information.  The Buyer and its  advisors,  if any, have been,
and for so long as the Notes remain  outstanding  will continue to be, furnished
with all  materials  relating to the  business,  finances and  operations of the
Company and  materials  relating to the offer and sale of the  Securities  which
have been requested by the Buyer or its advisors. The Buyer and its advisors, if
any, have been, and for so long as the Notes remain outstanding will continue to
be,  afforded the  opportunity to ask questions of the Company.  Notwithstanding
the foregoing, the Company has not disclosed to the Buyer any material nonpublic
information and will not disclose such  information  unless such  information is
disclosed to the public prior to or promptly  following  such  disclosure to the
Buyer.  Neither  such  inquiries  nor  any  other  due  diligence  investigation
conducted by Buyer or any of its advisors or representatives shall modify, amend
or affect Buyer's right to rely on the Company's  representations and warranties
contained in Section 3 below.  The Buyer  understands that its investment in the
Securities involves a significant degree of risk.

            e.    Governmental  Review.  The  Buyer  understands  that no United
States federal or state agency or any other  government or  governmental  agency
has passed upon or made any recommendation or endorsement of the Securities.

            f.    Transfer or Re-sale.  The Buyer understands that (i) except as
provided  in  Section  4(d) of  this  Agreement,  the  sale  or  re-sale  of the
Securities has not been and is not being  registered under the Securities Act or
any applicable  state securities laws, and the Securities may not be transferred
unless  (A) the  Securities  are  sold  pursuant  to an  effective  registration
statement  under the  Securities  Act, (B) the Buyer shall have delivered to the
Company  an  opinion  of  counsel  that  shall be in form,  substance  and scope
customary for opinions of counsel in comparable  transactions to the effect that
the Securities to be sold or transferred may be sold or transferred  pursuant to
an exemption  from such  registration,  which  opinion  shall be accepted by the
Company,  (C) the  Securities  are sold or  transferred  to an  "affiliate"  (as
defined in Rule 144  promulgated  under the Securities Act (or a successor rule)
("Rule  144"))  of the  Buyer  who  agrees  to sell or  otherwise  transfer  the
Securities  only in  accordance  with this Section 2(f) and who is an Accredited
Investor,  (D)  the  Securities  are  sold  pursuant  to  Rule  144,  or (E) the
Securities  are sold  pursuant to  Regulation S under the  Securities  Act (or a
successor  rule)  ("Regulation  S"),  and the Buyer shall have  delivered to the
Company  an  opinion  of  counsel  that  shall be in form,  substance  and scope
customary for opinions of counsel in corporate transactions, which opinion shall
be accepted by the Company; (ii) any sale of such Securities made in reliance on
Rule 144 may be made only in accordance with the terms of said Rule and further,
if  said  Rule  is  not  applicable,   any  re-sale  of  such  Securities  under
circumstances  in which the seller (or the person through whom the sale is made)
may be deemed to be an  underwriter  (as that term is defined in the  Securities
Act) may require  compliance  with some other exemption under the Securities Act
or the rules and  regulations  of the SEC  thereunder;  and  (iii)  neither  the
Company nor any other person is under any obligation to register such Securities
under the  Securities  Act or any state  securities  laws or to comply  with the
terms and  conditions  of any  exemption  thereunder  (in each case,  other than
pursuant to Section 4(d) of this Agreement).

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<PAGE>

            g.    Legends.  The Buyer understands that the Notes and, until such
time as the Conversion  Shares have been registered  under the Securities Act as
contemplated by Section 4(d) of this Agreement or otherwise may be sold pursuant
to Rule  144 or  Regulation  S  without  any  restriction  as to the  number  of
securities  as of a  particular  date  that can then be  immediately  sold,  the
Conversion  Shares may bear a restrictive  legend in substantially the following
form  (and  a  stop-transfer  order  may  be  placed  against  transfer  of  the
certificates for such Securities):

      "The securities  represented by this  certificate  have not been
      registered  under the  Securities  Act of 1933, as amended.  The
      securities  may not be  sold,  transferred  or  assigned  in the
      absence  of  an  effective   registration   statement   for  the
      securities  under said Act, or an opinion of  counsel,  in form,
      substance  and  scope  customary  for  opinions  of  counsel  in
      comparable transactions, that registration is not required under
      said Act or unless  sold  pursuant to Rule 144 or  Regulation  S
      under said Act."

      The legend set forth above shall be removed and the Company  shall issue a
certificate  without such legend to the holder of any Security  upon which it is
stamped,  if, unless otherwise required by applicable state securities laws, (a)
such Security is registered for sale under an effective  registration  statement
filed under the  Securities Act or otherwise may be sold pursuant to Rule 144 or
Regulation  S without any  restriction  as to the number of  securities  as of a
particular  date that can then be immediately  sold, or (b) such holder provides
the Company with an opinion of counsel,  in form,  substance and scope customary
for opinions of counsel in comparable transactions,  to the effect that a public
sale or transfer of such  Security  may be made without  registration  under the
Securities  Act, which opinion shall be accepted by the Company so that the sale
or transfer is effected or (c) such holder  provides the Company with reasonable
assurances  that such Security can be sold pursuant to Rule 144 or Regulation S.
The Buyer  agrees  to sell all  Securities,  including  those  represented  by a
certificate(s)  from which the  legend  has been  removed,  in  compliance  with
applicable prospectus delivery requirements, if any.

            h.    Authorization;   Enforcement.  This  Agreement,  the  Security
Agreement and the Notes have been duly and validly  authorized.  This  Agreement
has been duly executed and delivered on behalf of the Buyer,  and this Agreement
constitutes,  and upon  execution  and  delivery  by the  Buyer of the  Security
Agreement,  such agreement will constitute,  valid and binding agreements of the
Buyer enforceable in accordance with their terms.

                                       4
<PAGE>

            i.    Residency.  The Buyer is a resident  of the  jurisdiction  set
forth immediately below such Buyer's name on the signature pages hereto.

      3.    REPRESENTATIONS  AND WARRANTIES OF THE COMPANY AND RGB CHANNEL.  The
Company and RGB Channel each represents and warrants to each Buyer as follows:

            a.    Organization  and  Qualification.  The Company and each of its
Subsidiaries  (as defined  below),  if any,  is a  corporation  duly  organized,
validly  existing and in good  standing  under the laws of the  jurisdiction  in
which it is incorporated, with full power and authority (corporate and other) to
own,  lease,  use and operate its properties and to carry on its business as and
where now owned, leased, used, operated and conducted.  Schedule 3(a) sets forth
a list of all of the  Subsidiaries of the Company and the  jurisdiction in which
each is incorporated. The Company and each of its Subsidiaries is duly qualified
as a  foreign  corporation  to do  business  and is in good  standing  in  every
jurisdiction  in which its  ownership  or use of  property  or the nature of the
business  conducted by it makes such  qualification  necessary  except where the
failure to be so qualified or in good standing would not have a Material Adverse
Effect.  "Material  Adverse  Effect"  means any material  adverse  effect on the
business, operations, assets, financial condition or prospects of the Company or
its Subsidiaries,  if any, taken as a whole, or on the transactions contemplated
hereby or by the  agreements  or  instruments  to be entered into in  connection
herewith.  "Subsidiaries"  means any corporation or other organization,  whether
incorporated  or  unincorporated,   in  which  the  Company  owns,  directly  or
indirectly, any equity or other ownership interest.

            b.    Authorization;  Enforcement.  (i) Each of the  Company and RGB
Channel  has all  requisite  corporate  power and  authority  to enter  into and
perform this Agreement,  the Security  Agreement and the Notes and to consummate
the transactions contemplated hereby and thereby and to issue the Securities, in
accordance with the terms hereof and thereof, (ii) the execution and delivery of
this  Agreement,  the  Security  Agreement  and the Notes by the Company and RGB
Channel and the consummation of the transactions contemplated hereby and thereby
(including  without  limitation,  the issuance of the Notes and the issuance and
reservation  for issuance of the Conversion  Shares  issuable upon conversion or
exercise  thereof)  have been duly  authorized  by each of the Company's and RGB
Channel's  Board of Directors  and no further  consent or  authorization  of the
Company,  RGB Channel,  their respective Board of Directors,  or shareholders is
required,  (iii) this  Agreement  has been duly  executed  and  delivered by the
Company and by RGB Channel by their respective  authorized  representative,  and
such  authorized  representative  is the true and official  representative  with
authority to sign this Agreement and the other documents  executed in connection
herewith  and  bind the  Company  and RGB  Channel  accordingly,  and (iv)  this
Agreement constitutes, and upon execution and delivery by the Company and/or RGB
Channel of the Security  Agreement and the Notes,  each of such instruments will
constitute,  legal, valid and binding obligations of the Company and RGB Channel
enforceable against the Company and RGB Channel in accordance with its terms.

                                       5
<PAGE>

            c.    Capitalization.  As of the date hereof, the authorized capital
stock of the Company consists of: (i) 75,000,000 shares of IPEX Common Stock, of
which  17,861,293  shares are issued and  outstanding,  and 4,357,159 shares are
reserved for issuance pursuant to securities (other than the Notes)  exercisable
for, or convertible  into or exchangeable  for shares of IPEX Common Stock;  and
(ii) no shares of preferred stock. As of the date hereof, the authorized capital
stock of RGB Channel consists of: (i) 100,000,000 shares of RGB Common Stock, of
which one share is issued and  outstanding,  10,000,000  shares are reserved for
issuance to IPEX as  consideration  for the transfer and  assignment  of certain
assets to RGB  Channel,  and no shares are  reserved  for  issuance  pursuant to
securities  (other  than the Notes)  exercisable  for,  or  convertible  into or
exchangeable  for  shares of RGB  Common  Stock;  and (ii)  5,000,000  shares of
preferred stock, of which no shares are issued and outstanding and no shares are
reserved for issuance.  All of such  outstanding  shares of capital stock of the
Company  and of RGB  Channel  are, or upon  issuance  will be, duly  authorized,
validly issued, fully paid and nonassessable.  No shares of capital stock of the
Company or of RGB Channel are subject to preemptive  rights or any other similar
rights  of the  shareholders  of the  Company  or RGB  Channel  or any  liens or
encumbrances imposed through the actions or failure to act of the Company or RGB
Channel.  Except as disclosed in Schedule 3(c), as of the effective date of this
Agreement,  (i) there are no outstanding  options,  warrants,  scrip,  rights to
subscribe for, puts, calls, rights of first refusal, agreements, understandings,
claims or other commitments or rights of any character  whatsoever  relating to,
or  securities  or rights  convertible  into or  exchangeable  for any shares of
capital  stock of the Company,  or any of its  Subsidiaries  including,  but not
limited  to RGB  Channel,  or  arrangements  by which the  Company or any of its
Subsidiaries is or may become bound to issue additional  shares of capital stock
of the  Company  or any of its  Subsidiaries,  (ii) there are no  agreements  or
arrangements  under which the Company or any of its Subsidiaries is obligated to
register the sale of any of its or their  securities  under the  Securities  Act
(except  pursuant  to Section  4(d) of this  Agreement)  and (iii)  there are no
anti-dilution or price adjustment provisions contained in any security issued by
the  Company or RGB Channel (or in any  agreement  providing  rights to security
holders)  that will be triggered by the issuance of the Notes or the  Conversion
Shares.  The Company has  furnished to the Buyer true and correct  copies of the
Company's  Articles of Incorporation and RGB Channel's Articles of Incorporation
as in effect on the date hereof ("Articles of Incorporation"), the Company's and
RGB Channel's By-laws, as in effect on the date hereof (the "By-laws"),  and the
terms of all securities convertible into or exercisable for IPEX Common Stock or
RGB  Common  Stock and the  material  rights of the  holders  thereof in respect
thereto.

            d.    Issuance of Shares.  The Conversion Shares are duly authorized
and reserved for issuance and, upon  conversion of the Notes in accordance  with
their terms,  will be validly issued,  fully paid and  non-assessable,  and free
from all taxes, liens, claims and encumbrances with respect to the issue thereof
and  shall not be  subject  to  preemptive  rights  or other  similar  rights of
shareholders  of the  Company or of RGB  Channel  and will not  impose  personal
liability upon the holder thereof.

            e.    Acknowledgment  of  Dilution.  The  Company  and  RGB  Channel
understands and acknowledges the potentially dilutive effect to the Common Stock
upon the issuance of the  Conversion  Shares upon  conversion of the Notes.  The
Company and RGB Channel each further  acknowledges  that its obligation to issue
Conversion Shares upon conversion of the Notes in accordance with this Agreement
and the Notes is absolute and  unconditional  regardless of the dilutive  effect
that such issuance may have on the ownership  interests of other shareholders of
the Company or of RGB Channel.

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<PAGE>

            f.    No Conflicts. The execution,  delivery and performance of this
Agreement,  the  Security  Agreement  and the Notes by the  Company  and/or  RGB
Channel  and  the  consummation  by  the  Company  and  by  RGB  Channel  of the
transactions contemplated hereby and thereby (including, without limitation, the
issuance and  reservation  for issuance of the  Conversion  Shares) will not (i)
conflict  with or result in a  violation  of any  provision  of the  Articles of
Incorporation  or By-laws of each respective  company,  (ii) violate or conflict
with,  or result in a breach of any provision of, or constitute a default (or an
event which with notice or lapse of time or both could become a default)  under,
or  give to  others  any  rights  of  termination,  amendment,  acceleration  or
cancellation of, any agreement,  indenture, patent, patent license or instrument
to which the Company or any of its Subsidiaries is a party, or (iii) result in a
violation of any law, rule,  regulation,  order,  judgment or decree  (including
federal  and  state  securities  laws and  regulations  and  regulations  of any
self-regulatory  organizations  to  which  the  Company,  RGB  Channel  or their
respective  securities  are  subject)  applicable  to the  Company or any of its
Subsidiaries  or by which any  property  or asset of the  Company  or any of its
Subsidiaries  is  bound  or  affected  (except  for  such  conflicts,  defaults,
terminations,  amendments, accelerations,  cancellations and violations as would
not, individually or in the aggregate,  have a Material Adverse Effect). Neither
the Company  nor any of its  Subsidiaries  is in  violation  of its  Articles of
Incorporation, By-laws or other organizational documents and neither the Company
nor any of its  Subsidiaries is in default (and no event has occurred which with
notice or lapse of time or both could put the Company or any of its Subsidiaries
in default) under, and neither the Company nor any of its Subsidiaries has taken
any action or failed to take any action  that would give to others any rights of
termination,   amendment,   acceleration  or  cancellation  of,  any  agreement,
indenture or  instrument  to which the Company or any of its  Subsidiaries  is a
party  or by  which  any  property  or  assets  of  the  Company  or  any of its
Subsidiaries  is bound or affected,  except for possible  defaults as would not,
individually or in the aggregate, have a Material Adverse Effect. The businesses
of the Company and its Subsidiaries,  if any, are not being conducted, and shall
not be conducted so long as a Buyer owns any of the Securities,  in violation of
any  law,  ordinance  or  regulation  of  any  governmental  entity.  Except  as
specifically contemplated by this Agreement and as required under the Securities
Act and any  applicable  state  securities  laws,  neither  the  Company nor RGB
Channel is required to obtain any  consent,  authorization  or order of, or make
any filing or  registration  with, any court,  governmental  agency,  regulatory
agency, self regulatory organization or stock market or any third party in order
for  it to  execute,  deliver  or  perform  any of its  obligations  under  this
Agreement,  the  Security  Agreement or the Notes in  accordance  with the terms
hereof or  thereof or to issue and sell the Notes in  accordance  with the terms
hereof and to issue the  Conversion  Shares upon  conversion  of the Notes.  All
consents, authorizations, orders, filings and registrations which the Company is
required to obtain  pursuant to the  preceding  sentence  have been  obtained or
effected on or prior to the date hereof.  The Company is not in violation of the
listing  requirements  of the OTC  Bulletin  Board  (the  "OTCBB")  and does not
reasonably  anticipate  that the IPEX Common Stock will be delisted by the OTCBB
in the foreseeable  future.  The Company and its Subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

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            g.    SEC Documents; Financial Statements. The Company has filed all
reports,  schedules,  forms, statements and other documents required to be filed
by it with the SEC  pursuant to the  reporting  requirements  of the  Securities
Exchange Act of 1934,  as amended  (the  "Exchange  Act") (all of the  foregoing
filed prior to the date hereof and all exhibits  included  therein and financial
statements  and  schedules  thereto and  documents  (other than exhibits to such
documents)  incorporated by reference  therein,  being  hereinafter  referred to
herein as the "SEC Documents"). The Company has delivered to each Buyer true and
complete copies of the SEC Documents not available on the EDGAR system that have
been requested by each Buyer. As of their  respective  dates,  the SEC Documents
complied in all material  respects with the requirements of the Exchange Act and
the rules and  regulations of the SEC promulgated  thereunder  applicable to the
SEC Documents.  As of their respective  dates,  the financial  statements of the
Company  included  in the SEC  Documents  complied  as to  form in all  material
respects with  applicable  accounting  requirements  and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been
prepared  in  accordance  with  United  States  generally  accepted   accounting
principles, consistently applied, during the periods involved (except (i) as may
be otherwise  indicated in such financial  statements or the notes  thereto,  or
(ii) in the case of  unaudited  interim  statements,  to the extent they may not
include footnotes or may be condensed or summary  statements) and fairly present
in all material respects the consolidated  financial position of the Company and
its  consolidated  Subsidiaries  as of the dates  thereof  and the  consolidated
results of their  operations and cash flows for the periods then ended (subject,
in the case of unaudited  statements,  to normal  year-end  audit  adjustments).
Except as set forth in the financial  statements of the Company  included in the
SEC Documents,  the Company has no liabilities,  contingent or otherwise,  other
than (i) liabilities  incurred in the ordinary course of business  subsequent to
December 31, 2004 and (ii) obligations under contracts and commitments  incurred
in the ordinary  course of business and not required  under  generally  accepted
accounting  principles  to be reflected  in such  financial  statements,  which,
individually or in the aggregate, are not material to the financial condition or
operating results of the Company.

            h.    Absence of Certain Changes. Since December 31, 2004, there has
been no material  adverse  change and no  material  adverse  development  in the
assets,  liabilities,  business,  properties,  operations,  financial condition,
results of  operations  or prospects  of the Company or any of its  Subsidiaries
which has not been reported in the SEC Documents.

            i.    Absence  of  Litigation.  There  is no  action,  suit,  claim,
proceeding,  inquiry  or  investigation  before or by any court,  public  board,
government  agency,  self-regulatory  organization  or body  pending  or, to the
knowledge  of the  Company  or any of its  Subsidiaries,  threatened  against or
affecting the Company or any of its Subsidiaries, or their officers or directors
in their  capacity  as such,  that  could have a Material  Adverse  Effect.  The
Company and its  Subsidiaries  are unaware of any facts or  circumstances  which
might give rise to any of the  foregoing  which fact or  circumstances  have not
been reported in the SEC Documents.

            j.    Patents,   Copyrights,  etc.  The  Company  and  each  of  its
Subsidiaries  owns or  possesses  the  requisite  licenses  or rights to use all
patents,  patent  applications,   patent  rights,  inventions,  know-how,  trade
secrets, trademarks, trademark applications, service marks, service names, trade
names and copyrights ("Intellectual Property") necessary to enable it to conduct
its  business as now operated and  described in the SEC  Documents;  there is no
claim or action by any person  pertaining to, or proceeding  pending,  or to the
Company's knowledge threatened,  which challenges the right of the Company or of
a Subsidiary with respect to any Intellectual Property necessary to enable it to
conduct its business as now operated;  to the best of the  Company's  knowledge,
the Company's or its Subsidiaries'  current and intended products,  services and
processes do not infringe on any  Intellectual  Property or other rights held by
any person; and the Company is unaware of any facts or circumstances which might
give rise to any of the foregoing. The Company and each of its Subsidiaries have
taken reasonable  security measures to protect the secrecy,  confidentiality and
value of their Intellectual Property.

                                       8
<PAGE>

            k.    No Materially Adverse Contracts,  Etc. Neither the Company nor
any of its  Subsidiaries  is subject to any  charter,  corporate  or other legal
restriction,  or any judgment,  decree,  order,  rule or regulation which in the
judgment of the  Company's  officers  has or is expected in the future to have a
Material  Adverse Effect.  Neither the Company nor any of its  Subsidiaries is a
party to any  contract  or  agreement  which in the  judgment  of the  Company's
officers has or is expected to have a Material Adverse Effect.

            l.    Tax Status.  Except as set forth on Schedule 3(l), the Company
and each of its  Subsidiaries  has made or filed all federal,  state and foreign
income and all other tax  returns,  reports  and  declarations  required  by any
jurisdiction  to which it is subject  (unless  and only to the  extent  that the
Company  and each of its  Subsidiaries  has set  aside on its  books  provisions
reasonably  adequate for the payment of all unpaid and unreported taxes) and has
paid all taxes and other governmental  assessments and charges that are material
in  amount,  shown  or  determined  to be  due  on  such  returns,  reports  and
declarations,  except  those being  contested in good faith and has set aside on
its  books  provisions  reasonably  adequate  for the  payment  of all taxes for
periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company know of no
basis for any such claim.  The Company has not executed a waiver with respect to
the statute of  limitations  relating to the  assessment  or  collection  of any
foreign, federal, state or local tax. None of the Company's or RGB Channel's tax
returns is presently being audited by any taxing authority.

            m.    Certain   Transactions.   Except  as   described  in  the  SEC
Documents,  none of the  officers,  directors,  or  employees  of the Company is
presently a party to any transaction with the Company or any of its Subsidiaries
(other than for services as employees,  officers and  directors),  including any
contract,  agreement  or  other  arrangement  providing  for the  furnishing  of
services to or by, providing for rental of real or personal property to or from,
or  otherwise  requiring  payments  to or from  any  officer,  director  or such
employee  or, to the  knowledge of the Company,  any  corporation,  partnership,
trust or other entity in which any officer, director, or any such employee has a
substantial interest or is an officer, director, trustee or partner.

                                       9
<PAGE>

            n.    Disclosure.  All  information  relating to or  concerning  the
Company or any of its  Subsidiaries set forth in this Agreement and otherwise in
connection with the transactions  contemplated hereby is true and correct in all
material  respects  and the Company has not omitted to state any  material  fact
necessary in order to make the  statements  made herein or therein,  in light of
the  circumstances  under  which they were  made,  not  misleading.  No event or
circumstance  has  occurred or exists with  respect to the Company or any of its
Subsidiaries  or its or their  business,  properties,  prospects,  operations or
financial conditions, which, under applicable law, rule or regulation,  requires
public  disclosure  or  announcement  by the  Company  but which has not been so
publicly announced or disclosed.

            o.    Acknowledgment  Regarding Buyers' Purchase of Securities.  The
Company  acknowledges  and  agrees  that the  Buyers  are  acting  solely in the
capacity of arm's  length  purchasers  with  respect to this  Agreement  and the
transactions contemplated hereby. The Company further acknowledges that no Buyer
is acting as a financial  advisor or fiduciary of the Company (or in any similar
capacity)  with  respect to this  Agreement  and the  transactions  contemplated
hereby  and  any  statement  made  by  any  Buyer  or any  of  their  respective
representatives or agents in connection with this Agreement and the transactions
contemplated  hereby is not advice or a recommendation  and is merely incidental
to the Buyers'  purchase of the Securities.  The Company  further  represents to
each Buyer that the  Company's  decision to enter into this  Agreement  has been
based solely on the independent evaluation of the Company and its Subsidiaries.

            p.    No Integrated Offering.  Neither the Company, RGB Channel, nor
any of their  affiliates,  nor any  person  acting on its or their  behalf,  has
directly or indirectly made any offers or sales in any security or solicited any
offers to buy any security under  circumstances that would require  registration
under the Securities  Act of the issuance of the  Securities to the Buyers.  The
issuance of the  Securities to the Buyers will not be integrated  with any other
issuance of the Company's or RGB Channel's securities (past, current or future).

            q.    No Brokers.  Except as set forth on Schedule 3(q), neither the
Company nor RGB Channel has taken any action  which would give rise to any claim
by any person for brokerage  commissions,  transaction  fees or similar payments
relating to this Agreement or the transactions contemplated hereby.

            r.    Permits;  Compliance. The Company and each of its Subsidiaries
is in possession of all franchises, grants,  authorizations,  licenses, permits,
easements, variances, exemptions,  consents, certificates,  approvals and orders
necessary to own,  lease and operate its properties and to carry on its business
as it is now being conducted (collectively, the "Company Permits"), and there is
no action  pending or, to the  knowledge  of the Company,  threatened  regarding
suspension or  cancellation of any of the Company  Permits.  Neither the Company
nor any of its  Subsidiaries is in conflict with, or in default or violation of,
any of  the  Company  Permits,  except  for  any  such  conflicts,  defaults  or
violations  which,  individually  or in the  aggregate,  would not reasonably be
expected to have a Material Adverse Effect. Since December 31, 2004, neither the
Company nor any of its Subsidiaries  has received any notification  with respect
to possible  conflicts,  defaults or violations of applicable  laws,  except for
notices relating to possible conflicts, defaults or violations, which conflicts,
defaults or violations would not have a Material Adverse Effect.

                                       10
<PAGE>

            s.    Environmental Matters.

                  (i)   To the Company's knowledge,  with respect to the Company
or any of its Subsidiaries or any predecessor of the Company,  there are no past
or present violations of Environmental Laws (as defined below),  releases of any
material into the environment, actions, activities,  circumstances,  conditions,
events,  incidents, or contractual obligations which may give rise to any common
law   environmental   liability  or  any  liability   under  the   Comprehensive
Environmental  Response,  Compensation  and  Liability  Act of 1980  or  similar
federal,  state,  local or foreign  laws and  neither the Company nor any of its
Subsidiaries  has received any notice with respect to any of the foregoing,  nor
is any action pending or, to the Company's  knowledge,  threatened in connection
with any of the  foregoing.  The term  "Environmental  Laws" means all  federal,
state, local or foreign laws relating to pollution or protection of human health
or the environment (including,  without limitation,  ambient air, surface water,
groundwater,  land surface or subsurface strata), including, without limitation,
laws  relating to  emissions,  discharges,  releases or  threatened  releases of
chemicals,  pollutants contaminants,  or toxic or hazardous substances or wastes
(collectively,   "Hazardous  Materials")  into  the  environment,  or  otherwise
relating to the manufacture,  processing, distribution, use, treatment, storage,
disposal,  transport  or  handling  of  Hazardous  Materials,  as  well  as  all
authorizations,   codes,  decrees,  demands  or  demand  letters,   injunctions,
judgments,  licenses,  notices  or notice  letters,  orders,  permits,  plans or
regulations issued, entered, promulgated or approved thereunder.

                  (ii)  Other  than  those  that  are or  were  stored,  used or
disposed of in  compliance  with  applicable  law, no  Hazardous  Materials  are
contained on or about any real property  currently owned,  leased or used by the
Company or any of its Subsidiaries,  and no Hazardous Materials were released on
or about any real property  previously  owned,  leased or used by the Company or
any of its Subsidiaries during the period the property was owned, leased or used
by the Company or any of its  Subsidiaries,  except in the normal  course of the
Company's or any of its Subsidiaries' business.

                  (iii) To the  Company's  knowledge,  there are no  underground
storage tanks on or under any real property owned, leased or used by the Company
or any of its Subsidiaries that are not in compliance with applicable law.

            t.    Title to Property.  The Company and its Subsidiaries have good
and marketable  title in fee simple to all real property and good and marketable
title to all personal  property  owned by them which is material to the business
of the Company and its  Subsidiaries,  in each case free and clear of all liens,
encumbrances  and  defects  except  such as would  not have a  Material  Adverse
Effect. Any real property and facilities held under lease by the Company and its
Subsidiaries  are held by them under valid,  subsisting and  enforceable  leases
with such exceptions as would not have a Material Adverse Effect.

            u.    Insurance.  The  Company  and  each  of its  Subsidiaries  are
insured by insurers of recognized financial  responsibility  against such losses
and risks and in such  amounts  as  management  of the  Company  believes  to be
prudent  and  customary  in  the   businesses  in  which  the  Company  and  its
Subsidiaries  are engaged.  Neither the Company nor any such  Subsidiary has any
reason  to  believe  that it will not be able to renew  its  existing  insurance
coverage as and when such coverage  expires or to obtain  similar  coverage from
similar  insurers as may be  necessary  to continue  its business at a cost that
would not have a Material Adverse Effect.

                                       11
<PAGE>

            v.    Internal  Accounting  Controls.  The  Company  and each of its
Subsidiaries  maintain a system of internal accounting controls  sufficient,  in
the  judgment  of the  Company's  board  of  directors,  to  provide  reasonable
assurance that (i)  transactions  are executed in accordance  with  management's
general or specific authorizations,  (ii) transactions are recorded as necessary
to permit  preparation  of financial  statements  in conformity  with  generally
accepted  accounting  principles  and to maintain  asset  accountability,  (iii)
access to assets is permitted only in accordance  with  management's  general or
specific  authorization  and (iv) the  recorded  accountability  for  assets  is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

            w.    Foreign Corrupt Practices. Neither the Company, nor any of its
Subsidiaries,  nor any director, officer, agent, employee or other person acting
on behalf of the  Company or any  Subsidiary  has,  in the course of his actions
for, or on behalf of, the  Company,  used any  corporate  funds for any unlawful
contribution,  gift,  entertainment  or  other  unlawful  expenses  relating  to
political activity;  made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds; violated or is
in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977,
as amended, or made any bribe, rebate,  payoff,  influence payment,  kickback or
other  unlawful  payment  to any  foreign or  domestic  government  official  or
employee.

            x.    Solvency. The Company (after giving effect to the transactions
contemplated by this Agreement) is solvent (i.e.,  its assets have a fair market
value in excess of the amount  required to pay its probable  liabilities  on its
existing  debts as they become  absolute and matured) and  currently the Company
has no  information  that would lead it to reasonably  conclude that the Company
would  not,  after  giving  effect  to  the  transaction  contemplated  by  this
Agreement, have the ability to, nor does it intend to take any action that would
impair its  ability to, pay its debts from time to time  incurred in  connection
therewith as such debts mature.

            y.    No Investment Company. Neither the Company nor RGB Channel is,
and upon  the  issuance  and  sale of the  Securities  as  contemplated  by this
Agreement will not be an "investment  company"  required to be registered  under
the  Investment  Company  Act of 1940 (an  "Investment  Company").  Neither  the
Company nor RGB Channel is controlled by an Investment Company.

      4.    COVENANTS.

            a.    Best  Efforts.  The  parties  shall use their best  efforts to
satisfy  timely each of the  conditions  described in Section 5 and Section 6 of
this Agreement.

            b.    Form D; Blue Sky Laws. The Company and RGB Channel each agrees
to file a Form D with respect to the Securities as required under  Regulation D.
The Company  and RGB Channel  shall,  on or before the Closing  Date,  take such
action as the Company  shall  reasonably  determine  is necessary to qualify the
Securities  for sale to the Buyers at the  Closing  pursuant  to this  Agreement
under  applicable  securities  or "blue  sky" laws of the  states of the  United
States (or to obtain an exemption from such qualification).

                                       12
<PAGE>

            c.    Reporting  Status;  Eligibility  to Use  Form  SB-2.  The IPEX
Common Stock is registered  under Section 12(g) of the Exchange Act. The Company
represents and warrants that it meets the  requirements for the use of Form SB-2
for registration of the sale by the Buyer of the Registrable  Shares (as defined
herein).  So long as the  Buyer  beneficially  owns any of the  Securities,  the
Company shall timely file all reports required to be filed with the SEC pursuant
to the Exchange Act, and the Company shall not terminate its status as an issuer
required to file reports  under the Exchange Act even if the Exchange Act or the
rules and regulations thereunder would permit such termination.

            d.    Registration Rights.

                  (i)   If at any time after the Buyers convert all of the Notes
into IPEX  Common  Stock or RGB Common  Stock the Company (or RGB Channel if the
Buyers convert the Notes into RGB Common Stock) shall determine to file with the
SEC a  registration  statement  (the  "Registration  Statement")  relating to an
offering for its own account or the account of others under the Securities  Act,
of any of its  equity  securities  (other  than on Form S-4 or Form S-8 or their
then equivalents relating to equity securities to be issued solely in connection
with an acquisition of any entity or business or equity  securities  issuable in
connection  with  employee  benefit  plans),  the Company (or RGB Channel if the
Buyers  convert  the  Notes  into  RGB  Common  Stock)  shall  include  in  such
Registration  Statement  all of the IPEX Common Stock or RGB Common Stock issued
upon  conversion of the Notes (the  "Registrable  Shares").  The Company (or RGB
Channel if the Buyers  convert  the Notes into RGB Common  Stock)  shall use its
best efforts to cause the Registration Statement to be declared effective by the
Commission  as promptly as possible  after the filing  thereof and shall use its
best efforts to keep the Registration Statement continuously effective until the
earlier  of:  (A)  the  date  when  all  Registrable   Shares  covered  by  such
Registration  Statement  have  been  sold  publicly;  or (B) the  date  when all
Registrable  Shares may be sold pursuant to Rule 144(k) under the Securities Act
(the "Effectiveness Period").

                  (ii)  In   connection   with  the   registration   obligations
hereunder,  the Company (or RGB Channel if the Buyers convert the Notes into RGB
Common  Stock)  shall:  (A)  prepare  and file  with  the SEC  such  amendments,
including  post-effective  amendments,  to the  Registration  Statement  and the
prospectus  used  in  connection  therewith  as may be  necessary  to  keep  the
Registration  Statement  continuously effective as to the Registrable Shares for
the  Effectiveness  Period;  (B) cause the related  prospectus  to be amended or
supplemented by any required  prospectus  supplement,  and as so supplemented or
amended to be filed pursuant to Rule 424  promulgated  under the Securities Act;
(C) respond as promptly as reasonably possible to any comments received from the
SEC with respect to the Registration Statement or any amendment thereto; and (D)
comply in all material  respects with the  provisions of the  Securities Act and
the Exchange  Act with  respect to the  disposition  of all  Registrable  Shares
covered by the Registration Statement during the applicable period in accordance
with the intended  methods of disposition by the selling  shareholders set forth
in  the  Registration  Statement  as so  amended  or in  such  prospectus  as so
supplemented.

                                       13
<PAGE>

                  (iii) The Company  (or RGB  Channel if the Buyers  convert the
Notes into RGB Common  Stock)  shall pay all fees and  expenses  incident to the
performance  of or  compliance  with  this  Section  4(d),  including:  (A)  all
registration and filing fees and expenses,  including  without  limitation those
related to filings with the SEC; and (B) printing  expenses  (including  without
limitation  expenses  of printing  certificates  for  Registrable  Shares and of
printing prospectuses requested by the Buyers).

            e.    Use of Proceeds.  The Company  shall use the proceeds from the
sale of the Notes in the manner set forth in Schedule 4(d)  attached  hereto and
made a part hereof and shall not, directly or indirectly,  use such proceeds for
any loan to or investment in any other corporation,  partnership,  enterprise or
other  person  (except  in  connection  with its  currently  existing  direct or
indirect Subsidiaries).

            f.    Subsequent  Financings of the Company.  So long as the Company
shall have any  obligation  under the Notes,  if the  Company  sells IPEX Common
Stock or any warrants or other rights,  whether or not immediately  exercisable,
to  subscribe  for  or  to  purchase  IPEX  Common  Stock  or  other  securities
convertible  into or exchangeable  for IPEX Common Stock pursuant to a financing
transaction, the Borrower shall use the proceeds of such a financing transaction
to redeem the Notes.

            g.    Authorization  and Reservation of Shares.  The Company and RGB
Channel each shall at all times while the Notes are outstanding have authorized,
and  reserved  for the purpose of  issuance,  a  sufficient  number of shares of
Common Stock to provide for the full  conversion  of the  outstanding  Notes and
issuance  of  the  Conversion  Shares  in  connection  therewith  (based  on the
Conversion  Price of the  Notes in effect  from  time to time) and as  otherwise
required  by the Notes  (the  "Reserved  Amount").  If at any time the number of
shares of Common Stock  authorized  and reserved for issuance  ("Authorized  and
Reserved Shares") is below the Reserved Amount,  the Company and/or RGB Channel,
as applicable,  will promptly take all corporate  action  necessary to authorize
and  reserve a  sufficient  number of  shares,  including,  without  limitation,
calling a special meeting of shareholders to authorize additional shares to meet
the obligations  under this Section 4(g), in the case of an insufficient  number
of  authorized  shares,  obtain  shareholder  approval  of an  increase  in such
authorized number of shares, and voting the management shares of the Company and
RGB Channel in favor of an increase in the authorized  shares to ensure that the
number of authorized shares is sufficient to meet the Reserved Amount.

            h.    Corporate Existence.  So long as a Buyer beneficially owns any
Notes,  the Company and RGB Channel  shall  maintain  its  respective  corporate
existence and shall not sell all or substantially  all of its respective  assets
without the prior written consent of the Buyers, except in the event of a merger
or consolidation or sale of all or substantially  all of such assets,  where the
surviving or successor  entity in such transaction (i) assumes the Company's and
RGB Channel's  obligations  hereunder and under the agreements  and  instruments
entered into in connection herewith and (ii) is a publicly traded corporation.

                                       14
<PAGE>

            i.    No Integration. Neither the Company nor RGB Channel shall make
any  offers  or  sales  of  any  security  (other  than  the  Securities)  under
circumstances that would require registration of the Securities being offered or
sold hereunder  under the Securities Act or cause the offering of the Securities
to be  integrated  with any other  offering of  securities by the Company or RGB
Channel.

            j.    Registration  Rights  Waivers.  The Company shall use its best
efforts to obtain, on or before the Registration  Statement is filed pursuant to
Section 4(d),  waivers from all holders of  registration  rights relating to its
securities of any kind whatsoever and will not,  whether or not such waivers are
obtained,  include for registration on the Registration Statement any securities
held by any holders other than the Buyers.

      5.    CONDITIONS TO THE COMPANY'S  OBLIGATION TO SELL.  The  obligation of
            the Company  hereunder to issue and sell the Notes to a Buyer at the
Closing is subject to the satisfaction, at or before the Closing Date of each of
the following  conditions,  provided that these conditions are for the Company's
sole  benefit  and  may  be  waived  by the  Company  at any  time  in its  sole
discretion:

            a.    The  applicable  Buyer shall have executed this  Agreement and
the Security Agreement, and delivered the same to the Company.

            b.    The  applicable  Buyer shall have delivered the Purchase Price
in accordance with Section 1(b) above.

            c.    The  representations  and warranties of the  applicable  Buyer
shall be true and correct in all material  respects as of the date when made and
as of the Closing Date as though made at that time  (except for  representations
and warranties that speak as of a specific date), and the applicable Buyer shall
have  performed,  satisfied  and  complied  in all  material  respects  with the
covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied  with by the  applicable  Buyer at or prior to the Closing
Date.

            d.    No litigation,  statute,  rule,  regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by or in any court or governmental  authority of competent jurisdiction
or  any   self-regulatory   organization   having  authority  over  the  matters
contemplated  hereby which prohibits the consummation of any of the transactions
contemplated by this Agreement.

      6.    CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE. The obligation of
each Buyer  hereunder  to  purchase  the Notes at the  Closing is subject to the
satisfaction, at or before the Closing Date of each of the following conditions,
provided  that these  conditions  are for such  Buyer's  sole benefit and may be
waived by such Buyer at any time in its sole discretion:

            a.    The Company and RGB Channel shall have executed this Agreement
and the Security Agreement and delivered the same to the Buyer.

                                       15
<PAGE>

            b.    The Company  shall have  delivered to such Buyer duly executed
Notes in accordance with Section 1(b) above.

            c.    The  representations  and  warranties  of the Company shall be
true and correct in all material respects as of the date when made and as of the
Closing  Date as  though  made at such  time  (except  for  representations  and
warranties  that  speak  as of a  specific  date)  and the  Company  shall  have
performed,  satisfied and complied in all material  respects with the covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or complied with by the Company at or prior to the Closing Date.

            d.    No litigation,  statute,  rule,  regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by or in any court or governmental  authority of competent jurisdiction
or  any   self-regulatory   organization   having  authority  over  the  matters
contemplated  hereby which prohibits the consummation of any of the transactions
contemplated by this Agreement.

            e.    No  event  shall  have  occurred  which  could  reasonably  be
expected  to  have  a  Material  Adverse  Effect  on the  Company  or any of its
Subsidiaries.

      7.    GOVERNING LAW; MISCELLANEOUS.

            a.    Governing Law. THIS AGREEMENT  SHALL BE ENFORCED,  GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA  APPLICABLE
TO  AGREEMENTS  MADE AND TO BE  PERFORMED  ENTIRELY  WITHIN SUCH STATE,  WITHOUT
REGARD TO THE  PRINCIPLES OF CONFLICT OF LAWS.  THE PARTIES HERETO HEREBY SUBMIT
TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN SAN
DIEGO, CALIFORNIA WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT,  THE
AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS  CONTEMPLATED
HEREBY OR THEREBY.  ALL PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT
FORUM TO THE  MAINTENANCE OF SUCH SUIT OR PROCEEDING.  ALL PARTIES FURTHER AGREE
THAT  SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW. ALL PARTIES AGREE THAT A FINAL NON-APPEALABLE
JUDGMENT IN ANY SUCH SUIT OR PROCEEDING  SHALL BE CONCLUSIVE AND MAY BE ENFORCED
IN OTHER  JURISDICTIONS  BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.
THE PARTY OR PARTIES  WHICH DO NOT  PREVAIL IN ANY  DISPUTE  ARISING  UNDER THIS
AGREEMENT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES,  INCLUDING  ATTORNEYS'
FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

            b.    Counterparts;  Signatures by Facsimile.  This Agreement may be
executed in one or more counterparts,  each of which shall be deemed an original
but all of which shall  constitute  one and the same  agreement and shall become
effective when  counterparts have been signed by each party and delivered to the
other party.  This Agreement,  once executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement bearing
the signature of the party so delivering this Agreement.

                                       16
<PAGE>

            c.    Headings.  The headings of this Agreement are for  convenience
of reference only and shall not form part of, or affect the  interpretation  of,
this Agreement.

            d.    Severability.   In  the  event  that  any  provision  of  this
Agreement is invalid or  unenforceable  under any applicable  statute or rule of
law, then such provision  shall be deemed  inoperative to the extent that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or  enforceability  of any other provision
hereof.

            e.    Entire   Agreement;   Amendments.   This   Agreement  and  the
instruments  referenced  herein contain the entire  understanding of the parties
with  respect  to  the  matters  covered  herein  and  therein  and,  except  as
specifically  set forth  herein or  therein,  neither  the Company nor the Buyer
makes any representation, warranty, covenant or undertaking with respect to such
matters.  No provision of this  Agreement may be waived or amended other than by
an instrument in writing signed by the party to be charged with enforcement.

            f.    Notices.  Any notices  required or permitted to be given under
the  terms of this  Agreement  shall be sent by  certified  or  registered  mail
(return receipt  requested) or delivered  personally or by courier  (including a
recognized  overnight  delivery  service) or by facsimile and shall be effective
five days after being  placed in the mail,  if mailed by regular  United  States
mail,  or upon  receipt,  if  delivered  personally  or by courier  (including a
recognized  overnight delivery service) or by facsimile,  in each case addressed
to a party. The addresses for such communications shall be:

                   If to the Company or RGB Channel:

                            IPEX, Inc.
                            9255 Towne Centre Drive
                            San Diego, California 92121
                            Attention:  Chief Executive Officer
                            Telephone: (858) 720-8000
                            Facsimile:  (858) 204-6115

                                       17
<PAGE>

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

                            Sichenzia Ross Friedman Ference LLP
                            1065 Avenue of the Americas
                            New York, New York 10018
                            Attention:  Marc J. Ross, Esq.
                            Telephone: (212) 930-9700
                            Facsimile:  (212) 930-9725

      If to a Buyer:  To the address set forth  immediately  below such  Buyer's
name on the signature pages hereto.

      Each  party  shall  provide  notice  to the other  party of any  change in
address.

            g.    Successors and Assigns.  This Agreement  shall be binding upon
and inure to the  benefit  of the  parties  and their  successors  and  assigns.
Neither the Company nor any Buyer shall  assign this  Agreement or any rights or
obligations   hereunder   without  the  prior  written  consent  of  the  other.
Notwithstanding the foregoing, subject to Section 2(f), any Buyer may assign its
rights  hereunder  to  any  person  that  purchases   Securities  in  a  private
transaction from a Buyer or to any of its  "affiliates," as that term is defined
under the Exchange Act, and who is an Accredited Investor without the consent of
the Company.

            h.    Third Party Beneficiaries.  This Agreement is intended for the
benefit of the parties  hereto and their  respective  permitted  successors  and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

            i.    Survival.  The  representations  and warranties of the Company
and the  agreements  and  covenants  set forth in  Sections  2, 3, 4 and 7 shall
survive the Closing hereunder  notwithstanding  any due diligence  investigation
conducted by or on behalf of the Buyers.

            j.    Further Assurances.  Each party shall do and perform, or cause
to be done and  performed,  all such further acts and things,  and shall execute
and deliver all such other agreements, certificates,  instruments and documents,
as the other party may  reasonably  request in order to carry out the intent and
accomplish  the  purposes  of  this  Agreement  and  the   consummation  of  the
transactions contemplated hereby.

            k.    No Strict  Construction.  The language used in this  Agreement
will be deemed to be the language  chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.

            l.    Remedies. The Company and RGB Channel each acknowledges that a
breach by it of its  obligations  hereunder will cause  irreparable  harm to the
Buyers by  vitiating  the intent and  purpose  of the  transaction  contemplated
hereby.  Accordingly,  the Company and RGB Channel  each  acknowledges  that the
remedy at law for a breach  of its  obligations  under  this  Agreement  will be
inadequate  and  agrees,  in the event of a breach or  threatened  breach by the
Company or RGB  Channel of the  provisions  of this  Agreement,  that the Buyers
shall be  entitled,  in  addition to all other  available  remedies at law or in
equity, and in addition to the penalties  assessable herein, to an injunction or
injunctions  restraining,  preventing or curing any breach of this Agreement and
to enforce specifically the terms and provisions hereof.

                                       18
<PAGE>

      IN  WITNESS  WHEREOF,  the  Company  and  RGB  Channel  have  caused  this
Securities  Purchase  Agreement  to be duly  executed as of the date first above
written.

IPEX, INC.

__________________________________________
Sothi Thillairajah
Chief Executive Officer

RGB CHANNEL, INC.

__________________________________________
Sothi Thillairajah
Chief Executive Officer

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;
                       SIGNATURE PAGES FOR BUYERS FOLLOW.]

                                       19
<PAGE>

             [BUYER SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

      IN WITNESS WHEREOF,  undersigned Buyer has caused this Securities Purchase
Agreement to be duly executed as of the date first above written.

Name of Buyer (Please Print):
                             ---------------------------------------------------
Signature of Authorized Signatory of Buyer:
                                           -------------------------------------
Name of Authorized Signatory (Please Print):
                                            ------------------------------------
Title of Authorized Signatory (Please Print):
                                             -----------------------------------
Email Address of Authorized Signatory:
                                      ------------------------------------------

State or Country of Residence:
                              --------------------------------------------------

Address of Buyer:

Address for Delivery of Securities for Buyer (if not same as above):

Aggregate Purchase Price:
Aggregate Principal Amount of Notes:
Federal EIN or SSN:  [PROVIDE THIS UNDER SEPARATE COVER]

                                       20
<PAGE>

                              Disclosure Schedules
                                       to
                          Securities Purchase Agreement

(Prepared in connection with Notes sold by the Company to the Buyers pursuant to
the Securities  Purchase  Agreement  dated as of March 21, 2006 (the "March 2006
Purchase  Agreement").  Capitalized  terms not  defined  herein  shall  have the
meaning given to such terms in the March 2006 Purchase Agreement.)

                                 March 21, 2006

<PAGE>

                                  Schedule 3(a)
                                  Subsidiaries
                                  ------------

         AICI, Inc., a Nevada corporation 100% owned by the Company.

         RGB Channel, Inc., a Nevada corporation 100% owned by the Company.

<PAGE>

                                  Schedule 3(c)
                                 Capitalization
                                 --------------

Outstanding Warrants
--------------------

      On March 18, 2005, the Company  completed a private  placement (the "March
2005  Transaction")  of an aggregate of 3,500,000  shares of IPEX Common  Stock,
Series A Warrants to purchase 1,750,000 shares of IPEX Common Stock (the "Series
A Warrants") and Series B Warrants to purchase  1,750,000  shares of IPEX Common
Stock (the "Series B Warrants") to 76 accredited  investors for aggregate  gross
proceeds of  $3,500,000.  The IPEX Common Stock,  Series A Warrants and Series B
Warrants  were sold as Units,  with each Unit  consisting  of two shares of IPEX
Common  Stock,  one Series A Warrant  and one  Series B Warrant,  for a per Unit
purchase price of $2.00.  Each Series A Warrant  entitles the holder to purchase
one share of common stock at $1.50 per share,  exercisable  for a period of five
years. Each Series B Warrant entitles the holder to purchase one share of common
stock at $2.00 per share, exercisable for a period of five years.

Outstanding Options
-------------------

      The Company has  outstanding  options to purchase  291,666  shares of IPEX
Common Stock owned by Gerald Beckwith,  the Company's former director and former
Chief Executive Officer. Such options have an exercise price of $2.71 and expire
February 15, 2016. These options were issued to Mr. Beckwith as compensation for
services rendered to an employee and/or director of the Company.

      The Company has  outstanding  options to  purchase  65,493  shares of IPEX
Common Stock owned by Gerald Beckwith,  the Company's former director and former
Chief Executive Officer. Such options have an exercise price of $2.36 and expire
February 15, 2016. These options were issued to Mr. Beckwith as compensation for
services rendered to an employee and/or director of the Company.

      The Company has  outstanding  options to purchase  500,000  shares of IPEX
Common Stock owned by Sothi Thillairajah,  a current director of the Company and
the Company's current Chief Executive Officer and Chief Operating Officer.  Such
options have an exercise  price of $2.75 and expire July 6, 2011.  These options
were issued to Mr.  Thillairajah  as  compensation  for services  rendered to an
employee of the Company.

Outstanding Registration Rights
-------------------------------

      The  Company  has  agreed  to  file  a  registration  statement  with  the
Securities and Exchange  Commission covering the resale of the IPEX Common Stock
and IPEX Common Stock issuable upon exercise of the Series A Warrants and Series
B Warrants sold in the March 2005 Transaction as soon as practicable,  but in no
event later than 90 days after  March 18,  2005.  The Company  agreed to use its
best efforts to have such registration  statement  declared effective and remain
effective until the selling  shareholders  have sold all their  securities which
were included in the registration statement or such securities may be sold under
Rule 144(k)  under the  Securities  Act. As of March 3, 2006 the Company has not
filed such  registration  statement and the Company has not obtained any waivers
related to the filing of such registration statement.

<PAGE>

Outstanding Anti-Dilution or Price Adjustment Provisions
--------------------------------------------------------

      The Series A Warrants and the Series B Warrants sold by the Company in the
March 2005  Transaction  contain  anti-dilution  provisions and price adjustment
provisions.  The  issuance  of the Notes  will cause the  exercise  price of the
Series A Warrants and the Series B Warrants to be adjusted to $1.00 per share.

      If the Conversion Price (defined in the Notes) of the Notes is adjusted in
accordance  with Section 1.7(f) of the Notes,  then such  adjustment may cause a
further  downward  adjustment to the exercise price of the Series A Warrants and
the Series B Warrants.

      Upon any adjustment to the exercise price of the Series A Warrants and the
Series B Warrants as described  above, the number of shares of IPEX Common Stock
issuable  pursuant  to the Series A Warrants  and the Series B Warrants  will be
adjusted by multiplying  such number by a fraction,  the numerator of which will
be the exercise  price in effect  immediately  prior to such  adjustment and the
denominator  of  which  shall  be  the  exercise  price  in  effect  immediately
thereafter.

<PAGE>

                                  Schedule 3(l)
                                   Tax Status
                                   ----------

      None.

<PAGE>

                                  Schedule 3(q)
                                   No Brokers
                                   ----------

      None.

<PAGE>

                                  Schedule 4(d)
                                 Use of Proceeds
                                 ---------------

      All proceeds  from the sale of the Notes will be used for general  working
capital purposes.SECURITY AGREEMENT

      SECURITY AGREEMENT (this "Agreement"),  dated as of March 21, 2006, by and
among IPEX, Inc., a Nevada  corporation  ("IPEX"),  RGB Channel,  Inc., a Nevada
corporation and wholly owned subsidiary of IPEX ("RGB Channel"), and the secured
parties signatory hereto and their respective endorsees, transferees and assigns
(collectively,  the  "Secured  Party").  IPEX and RGB Channel  are  collectively
referred to in this Agreement as the "Company".

                              W I T N E S S E T H:

      WHEREAS,  pursuant  to a  Securities  Purchase  Agreement,  dated the date
hereof,  between the Company and the Secured Party (the  "Purchase  Agreement"),
IPEX has agreed to issue to the Secured  Party and the Secured  Party has agreed
to purchase from IPEX certain 10% Secured  Convertible  Notes, due one year from
the date of issue (the  "Notes"),  which are  convertible  into either shares of
IPEX's common stock,  par value $.001 per share, or RGB Channel's  common stock,
par value $.001 per share; and

      WHEREAS,  in order to induce the Secured Party to purchase the Notes,  the
Company has agreed to execute and  deliver to the Secured  Party this  Agreement
for the  benefit  of the  Secured  Party  and to  grant  to it a first  priority
security  interest  in  certain  property  of the  Company  to secure the prompt
payment,  performance and discharge in full of all of the Company's  obligations
under the Notes.

      NOW,  THEREFORE,  in consideration of the agreements  herein contained and
for other good and valuable consideration,  the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

      1.    Certain Definitions.  As used in this Agreement, the following terms
shall  have  the  meanings  set  forth in this  Section  1.  Terms  used but not
otherwise  defined in this  Agreement  that are  defined in Article 9 of the UCC
shall have the respective meanings given such terms in Article 9 of the UCC.

            (a)   "Ballerini  Purchase  Agreement"  means that certain  Purchase
Agreement dated June 7, 2005 by and among IPEX, B Tech Ltd.,  Massimo  Ballerini
and Emanuele Boni.

            (b)   "Collateral"  means the  collateral in which the Secured Party
is granted a security  interest by this  Agreement  and which shall  include the
following,  whether presently owned or existing or hereafter  acquired or coming
into existence,  and all additions and accessions  thereto and all substitutions
and  replacements  thereof,  and all  proceeds,  products and accounts  thereof,
including,  without  limitation,  all proceeds  from the sale or transfer of the
Collateral  and of  insurance  covering  the  same  and of any  tort  claims  in
connection therewith:

                  (i)   the Assets (defined in the Ballerini Purchase Agreement)
            acquired by IPEX pursuant to the Ballerini Purchase  Agreement,  and
            which IPEX plans to transfer and assign to RGB Channel;

                                       1
<PAGE>

                  (ii)  the  Assets  (defined  in the  RGB  Purchase  Agreement)
            acquired by IPEX, Inc. pursuant to the RGB Purchase  Agreement,  and
            which IPEX plans to transfer and assign to RGB Channel; and

                  (iii) All of the Company's  Intellectual  Property  related to
            the Assets  described  in  Sections  1(b)(i)  and  1(b)(ii)  of this
            Agreement.

            (c)   "Copyrights"  means,  solely as it relates to the  Collateral:
(i) all copyrights,  registrations and applications for registration,  issued or
filed,  including any reissues,  extensions or renewals thereof,  by or with the
United  States  Copyright  Office or any similar  office or agency of the United
States,  any  state  thereof,  or any other  country  or  political  subdivision
thereof, or otherwise, including, all rights in and to the material constituting
the  subject  matter  thereof,  and (ii) any  rights  in any  material  which is
copyrightable  or which is protected by common law, United States copyright laws
or similar laws or any law of any State.

            (d)   "Copyright  License"  means any  agreement,  written  or oral,
providing for a grant by the Company of any right in any Copyright.

            (e)   "Intellectual  Property"  means,  collectively,  the  Software
Intellectual Property, Copyrights, Copyright Licenses, Patents, Patent Licenses,
Trademarks, Trademark Licenses and Trade Secrets related to the Collateral.

            (f)   "Obligations"  means all of the  Company's  obligations  under
this Agreement and the Notes, in each case,  whether now or hereafter  existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
or  unliquidated,  whether or not jointly owed with  others,  and whether or not
from time to time  decreased or  extinguished  and later  decreased,  created or
incurred,  and all or any portion of such  obligations or  liabilities  that are
paid,  to the  extent all or any part of such  payment  is avoided or  recovered
directly  or  indirectly  from the  Secured  Party as a  preference,  fraudulent
transfer  or  otherwise  as  such  obligations  may  be  amended,  supplemented,
converted, extended or modified from time to time.

            (g)   "Patents" means,  solely as it relates to the Collateral:  (i)
all letters  patent of the United  States or any other  country or any political
subdivision  thereof,  and all reissues  and  extensions  thereof,  and (ii) all
applications  for  letters  patent  of the  United  States  and  all  divisions,
continuations  and  continuations-in-part  thereof  or any other  country or any
political subdivision.

            (h)   "Patent  License"  means all  agreements,  whether  written or
oral, providing for the grant by the Company of any right to manufacture, use or
sell any invention covered by a Patent.

            (i)   "RGB Purchase Agreement" means that certain Purchase Agreement
dated June 7, 2005 by and among IPEX, RGB Channel SRL,  Emanuele  Boni,  Massimo
Ballerini and B Tech Ltd.

            (j)   "Software Intellectual Property" means:

                                       2
<PAGE>

                  (i)   all software programs (including all source code, object
            code and all related  applications  and data  files)  related to the
            Collateral,  whether upgraded,  enhanced,  licensed or leased by the
            Company;

                  (ii)  all computers and electronic  data  processing  hardware
            and firmware associated therewith;

                  (iii) all   documentation   (including   flow  charts,   logic
            diagrams,  manuals,  guides and specifications) with respect to such
            software,  hardware and firmware  described in the preceding clauses
            (i) and (ii); and

                  (iv)  all  rights  with  respect  to  all  of  the  foregoing,
            including, without limitation, any and all upgrades,  modifications,
            copyrights,   licenses,  options,  warranties,   service  contracts,
            program services,  test rights,  maintenance rights, support rights,
            improvement  rights,   renewal  rights  and   indemnifications   and
            substitutions,  replacements, additions, or model conversions of any
            of the foregoing.

            (k)   "Trademarks"  means,  solely as it relates to the  Collateral:
(i) all trademarks, trade names, corporate names, company names, business names,
fictitious  business names, trade styles,  service marks, logos and other source
or business identifiers,  and the goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all
applications  in connection  therewith,  whether in the United States Patent and
Trademark  Office or in any similar office or agency of the United  States,  any
state  thereof or any other  country or any political  subdivision  thereof,  or
otherwise, and (ii) all reissues, extensions or renewals thereof.

            (l)   "Trademark  License"  means any  agreement,  written  or oral,
providing for the grant by the Company of any right to use any Trademark.

            (m)   "Trade Secrets" means, solely as it relates to the Collateral:
common law and statutory trade secrets and all other confidential or proprietary
or useful information and all know-how obtained by or used in or contemplated at
any time for use in the  business of the  Company  (all of the  foregoing  being
collectively called a "Trade Secret"), whether or not such Trade Secret has been
reduced to a writing or other tangible form,  including all documents and things
embodying, incorporating or referring in any way to such Trade Secret, all Trade
Secret licenses, and including the right to sue for and to enjoin and to collect
damages for the actual or  threatened  misappropriation  of any Trade Secret and
for the breach or enforcement of any such Trade Secret license.

            (n)   "UCC" means the  Uniform  Commercial  Code,  as  currently  in
effect in the State of California.

                                       3
<PAGE>

      2.    Grant of Security  Interest.  As an inducement for the Secured Party
to purchase the Notes and to secure the complete and timely payment, performance
and  discharge  in  full,  as the case may be,  of all of the  Obligations,  the
Company  hereby,   unconditionally   and   irrevocably,   pledges,   grants  and
hypothecates  to the  Secured  Party,  a  continuing  security  interest  in,  a
continuing  first lien upon, an unqualified  right to possession and disposition
of and a right of set-off against,  in each case to the fullest extent permitted
by law, all of the Company's  right,  title and interest of whatsoever  kind and
nature in and to the Collateral (the "Security Interest").

      3.    Representations,   Warranties,   Covenants  and  Agreements  of  the
Company.  The Company represents and warrants to, and covenants and agrees with,
the Secured Party as follows:

            (a)   The Company has the requisite corporate power and authority to
enter into this Agreement and otherwise to carry out its obligations thereunder.
The execution, delivery and performance by the Company of this Agreement and the
filings  contemplated  therein have been duly authorized by all necessary action
on the part of the  Company and no further  action is  required by the  Company.
This Agreement  constitutes a legal, valid and binding obligation of the Company
enforceable  in  accordance  with its  terms,  except as  enforceability  may be
limited by bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
affecting the enforcement of creditor's rights generally.

            (b)   The Company  represents  and warrants  that it has no place of
business or offices where its  respective  books of account and records are kept
(other than  temporarily  at the offices of its  attorneys  or  accountants)  or
places where Collateral is stored or located,  except as set forth on Schedule A
attached hereto;

            (c)   The  Company is the sole owner of the  Collateral  (except for
non-exclusive  licenses  granted  by the  Company  in  the  ordinary  course  of
business), free and clear of any liens, security interests, encumbrances, rights
or claims,  and is fully  authorized  to grant the  Security  Interest in and to
pledge the  Collateral.  There is not on file in any  governmental or regulatory
authority, agency or recording office an effective financing statement, security
agreement, license or transfer or any notice of any of the foregoing (other than
those  that have  been  filed in favor of the  Secured  Party  pursuant  to this
Agreement)  covering  or  affecting  any of the  Collateral.  So  long  as  this
Agreement  shall be in  effect,  the  Company  shall not  execute  and shall not
knowingly  permit to be on file in any such office or agency any such  financing
statement  or other  document or  instrument  covering or  affecting  any of the
Collateral (except to the extent filed or recorded in favor of the Secured Party
pursuant to the terms of this Agreement).

            (d)   No  part  of  the   Collateral  has  been  judged  invalid  or
unenforceable.  No written claim has been  received  that any  Collateral or the
Company's use of any  Collateral  violates the rights of any third party.  There
has been no adverse  decision to the Company's  claim of ownership  rights in or
exclusive  rights to use the Collateral in any  jurisdiction or to the Company's
right to keep and maintain such  Collateral in full force and effect,  and there
is no proceeding  involving said rights pending or, to the best knowledge of the
Company,   threatened  before  any  court,  judicial  body,   administrative  or
regulatory agency, arbitrator or other governmental authority.

                                       4
<PAGE>

            (e)   The Company  shall at all times  maintain its books of account
and records  relating to the  Collateral at its principal  place of business and
its Collateral at the locations set forth on Schedule A attached  hereto and may
not relocate such books of account and records or tangible  Collateral unless it
delivers  to the  Secured  Party at least 30 days prior to such  relocation  (i)
written notice of such  relocation  and the new location  thereof (which must be
within  the  United  States)  and  (ii)  evidence  that  appropriate   financing
statements and other necessary  documents have been filed and recorded and other
steps have been taken to perfect the Security Interest to create in favor of the
Secured  Party valid,  perfected  and  continuing  first  priority  liens in the
Collateral.

            (f)   On the date of execution of this  Agreement,  the Company will
deliver to the Secured Party one or more  executed UCC  financing  statements on
Form UCC-1 with respect to the Security  Interest for filing with the  Secretary
of State of Nevada and in such other  jurisdictions  as may be  requested by the
Secured Party.

            (g)   The execution, delivery and performance of this Agreement does
not conflict with or cause a breach or default, or an event that with or without
the passage of time or notice,  shall constitute a breach or default,  under any
agreement  to which the Company is a party or by which the Company is bound.  No
consent (including,  without limitation,  from stock holders or creditors of the
Company) is required  for the Company to enter into and perform its  obligations
hereunder.

            (h)   The Company shall at all times maintain the liens and Security
Interest  provided for hereunder as valid and perfected first priority liens and
security  interests in the  Collateral  in favor of the Secured Party until this
Agreement  and the  Security  Interest  hereunder  shall  terminate  pursuant to
Section 11. The  Company  hereby  agrees to defend the same  against any and all
persons.  The Company shall safeguard and protect all Collateral for the account
of the Secured Party. At the request of the Secured Party, the Company will sign
and  deliver to the  Secured  Party at any time or from time to time one or more
financing  statements  pursuant to the UCC (or any other applicable  statute) in
form  reasonably  satisfactory  to the  Secured  Party  and will pay the cost of
filing the same in all public  offices  wherever  filing is, or is deemed by the
Secured Party to be, necessary or desirable to effect the rights and obligations
provided for herein.  Without  limiting the  generality  of the  foregoing,  the
Company shall pay all fees,  taxes and other  amounts  necessary to maintain the
Collateral and the Security Interest hereunder, and the Company shall obtain and
furnish to the  Secured  Party from time to time,  upon  demand,  such  releases
and/or  subordinations of claims and liens which may be required to maintain the
priority of the Security Interest hereunder.

            (i)   The Company will not transfer, pledge, hypothecate,  encumber,
license  (except  for  non-exclusive  licenses  granted  by the  Company  in the
ordinary course of business), sell or otherwise dispose of any of the Collateral
without the prior written consent of the Secured Party.

            (j)   The Company shall, within ten (10) days of obtaining knowledge
thereof,  advise the  Secured  Party  promptly,  in  sufficient  detail,  of any
substantial  change in the Collateral,  and of the occurrence of any event which
would have a material  adverse  effect on the value of the  Collateral or on the
Secured Party's security interest therein.

                                       5
<PAGE>

            (k)   The Company shall promptly  execute and deliver to the Secured
Party such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take
such further  action as the Secured  Party may from time to time request and may
in its sole  discretion  deem  necessary  to  perfect,  protect or  enforce  its
security  interest in the Collateral in which the Secured Party has been granted
a security interest hereunder.

            (l)   The  Company   shall   permit  the   Secured   Party  and  its
representatives  and agents to inspect the  Collateral at any time,  and to make
copies of  records  pertaining  to the  Collateral  as may be  requested  by the
Secured Party from time to time.

            (m)   The  Company  will  take all  steps  reasonably  necessary  to
diligently pursue and seek to preserve,  enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

            (n)   The  Company  shall  promptly  notify  the  Secured  Party  in
sufficient detail upon becoming aware of any attachment,  garnishment, execution
or  other  legal  process  levied  against  any  Collateral  and  of  any  other
information  received by the Company that may materially affect the value of the
Collateral,  the  Security  Interest  or the rights and  remedies of the Secured
Party hereunder.

            (o)   All information  heretofore,  herein or hereafter  supplied to
the Secured Party by or on behalf of the Company with respect to the  Collateral
is accurate and complete in all material respects as of the date furnished.

      4.    Defaults. The following events shall be "Events of Default":

            (a)   The  occurrence  of an Event of  Default  (as  defined  in the
Notes) under the Notes; and

            (b)   Any   representation  or  warranty  of  the  Company  in  this
Agreement shall prove to have been incorrect in any material respect when made.

      5.    Duty To Hold In Trust.  Upon the  occurrence of any Event of Default
and at any  time  thereafter,  the  Company  shall,  upon  receipt  by it of any
revenue, income or other sums subject to the Security Interest,  whether payable
pursuant  to the  Notes  or  otherwise,  or of any  check,  draft,  note,  trade
acceptance  or other  instrument  evidencing  an obligation to pay any such sum,
hold the same in trust for the  Secured  Party and shall  forthwith  endorse and
transfer  any such  sums or  instruments,  or both,  to the  Secured  Party  for
application to the satisfaction of the Obligations.

      6.    Rights and Remedies  Upon Default.  Upon  occurrence of any Event of
Default and at any time  thereafter,  the Secured  Party shall have the right to
exercise all of the remedies  conferred  hereunder and under the Notes,  and the
Secured  Party shall have all the rights and  remedies of a secured  party under
the UCC and/or any other  applicable law (including the Uniform  Commercial Code
of  any  jurisdiction  in  which  any  Collateral  is  then  located).   Without
limitation, the Secured Party shall have the following rights and powers:

                                       6
<PAGE>

            (a)   The Secured  Party shall have the right to take  possession of
the Collateral and, for that purpose,  enter, with the aid and assistance of any
person,  any premises where the  Collateral,  or any part thereof,  is or may be
placed and remove the same,  and the Company shall  assemble the  Collateral and
make it available to the Secured  Party at places which the Secured  Party shall
reasonably  select,  whether at the Company's  premises or  elsewhere,  and make
available to the Secured Party,  without rent,  all of the Company's  respective
premises and facilities  for the purpose of the Secured Party taking  possession
of, removing or putting the Collateral in saleable or disposable form.

            (b)   The Secured Party shall have the right to assign,  sell, lease
or otherwise dispose of and deliver all or any part of the Collateral, at public
or private  sale or  otherwise,  either with or without  special  conditions  or
stipulations,  for cash or on credit or for future  delivery,  in such parcel or
parcels  and at such time or times and at such  place or  places,  and upon such
terms and conditions as the Secured Party may deem commercially reasonable,  all
without (except as shall be required by applicable statute and cannot be waived)
advertisement  or demand upon or notice to the Company or right of redemption of
the Company,  which are hereby  expressly  waived.  Upon each such sale,  lease,
assignment  or other  transfer  of  Collateral,  the Secured  Party may,  unless
prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, right
of redemption and equities of the Company, which are hereby waived and released.

      7.    Applications  of Proceeds.  The proceeds of any such sale,  lease or
other  disposition of the Collateral  hereunder  shall be applied first,  to the
expenses of retaking,  holding,  storing,  processing  and  preparing  for sale,
selling, and the like (including,  without limitation, any taxes, fees and other
costs  incurred in connection  therewith) of the  Collateral,  to the reasonable
attorneys'  fees and expenses  incurred by the Secured  Party in  enforcing  its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral,  and then to satisfaction of the Obligations,  and to the payment of
any other  amounts  required by  applicable  law,  after which the Secured Party
shall pay to the  Company any surplus  proceeds.  If, upon the sale,  license or
other  disposition of the Collateral,  the proceeds  thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency,  and the reasonable fees of any attorneys employed
by the Secured  Party to collect  such  deficiency.  To the extent  permitted by
applicable  law, the Company waives all claims,  damages and demands against the
Secured Party arising out of the repossession, removal, retention or sale of the
Collateral,  unless due to the gross  negligence  or willful  misconduct  of the
Secured Party.

      8.    Costs and  Expenses.  The  Company  agrees to pay all  out-of-pocket
fees,  costs and  expenses  incurred  in  connection  with any  filing  required
hereunder, including without limitation, any financing statements,  continuation
statements,  partial releases and/or  termination  statements related thereto or
any  expenses of any  searches  reasonably  required by the Secured  Party.  The
Company  shall also pay all other  claims and  charges  which in the  reasonable
opinion of the Secured Party might  prejudice,  imperil or otherwise  affect the
Collateral or the Security Interest therein. The Company will also, upon demand,
pay to the  Secured  Party  the  amount  of any  and  all  reasonable  expenses,
including the reasonable fees and expenses of its counsel and of any experts and
agents, which the Secured Party may incur in connection with (a) the enforcement
of this  Agreement,  (b)  the  custody  or  preservation  of,  or the  sale  of,
collection from, or other  realization  upon, any of the Collateral,  or (c) the
exercise  or  enforcement  of any of the rights of the  Secured  Party under the
Notes.

                                       7
<PAGE>

      9.    Responsibility  for Collateral.  The Company assumes all liabilities
and responsibility in connection with all Collateral, and the obligations of the
Company  hereunder or under the Notes shall in no way be affected or  diminished
by reason of the loss, destruction,  damage or theft of any of the Collateral or
its unavailability for any reason.

      10.   Security Interest Absolute.  All rights of the Secured Party and all
Obligations  of the  Company  hereunder,  shall be absolute  and  unconditional,
irrespective of: (a) any lack of validity or  enforceability  of this Agreement,
the Notes or any agreement entered into in connection with the foregoing, or any
portion  hereof or  thereof;  (b) any  change  in the  time,  manner or place of
payment  or  performance  of,  or in  any  other  term  of,  all  or  any of the
Obligations, or any other amendment or waiver of or any consent to any departure
from the  Notes or any  other  agreement  entered  into in  connection  with the
foregoing; (c) any exchange,  release or nonperfection of any of the Collateral,
or any release or amendment or waiver of or consent to departure  from any other
collateral for, or any guaranty,  or any other  security,  for all or any of the
Obligations;  (d) any action by the Secured Party to obtain,  adjust, settle and
cancel in its sole discretion any insurance claims or matters made or arising in
connection  with the  Collateral;  or (e) any  other  circumstance  which  might
otherwise constitute any legal or equitable defense available to the Company, or
a discharge of all or any part of the Security  Interest  granted hereby.  Until
the  Obligations  shall have been paid and performed in full,  the rights of the
Secured Party shall continue even if the  Obligations are barred for any reason,
including,  without  limitation,  the running of the statute of  limitations  or
bankruptcy.  The  Company  expressly  waives  presentment,  protest,  notice  of
protest,  demand, notice of nonpayment and demand for performance.  In the event
that at any time any transfer of any  Collateral or any payment  received by the
Secured Party  hereunder  shall be deemed by final order of a court of competent
jurisdiction to have been a voidable  preference or fraudulent  conveyance under
the bankruptcy or insolvency laws of the United States, or shall be deemed to be
otherwise  due to any party  other than the  Secured  Party,  then,  in any such
event, the Company's  obligations  hereunder shall survive  cancellation of this
Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or  cancellation  of this  Agreement,  but shall  remain a valid and binding
obligation  enforceable in accordance with the terms and provisions  hereof. The
Company  waives all right to require  the Secured  Party to proceed  against any
other person or to apply any Collateral  which the Secured Party may hold at any
time, or to marshal  assets,  or to pursue any other remedy.  The Company waives
any defense  arising by reason of the  application of the statute of limitations
to any obligation secured hereby.

      11.   Term of Agreement.  This  Agreement and the Security  Interest shall
terminate  on the date on which all  payments  under the Notes have been made in
full  and all  other  Obligations  have  been  paid  or  discharged.  Upon  such
termination,  the  Secured  Party,  at the  request  and at the  expense  of the
Company,  will join in executing any  termination  statement with respect to any
financing statement executed and filed pursuant to this Agreement.

                                       8
<PAGE>

      12.   Power of Attorney; Further Assurances.

            (a)   The  Company  authorizes  the Secured  Party,  and does hereby
make, constitute and appoint it, and its respective officers, agents, successors
or assigns with full power of  substitution,  as the  Company's  true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the  occurrence  and during the  continuance  of an Event of Default,  (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including  payments  payable under or in respect of any policy of insurance) in
respect of the  Collateral  that may come into  possession of the Secured Party;
(ii) to sign and endorse any UCC financing statement or any invoice,  freight or
express bill,  bill of lading,  storage or warehouse  receipts,  drafts  against
debtors, assignments, verifications and notices in connection with accounts, and
other  documents  relating to the Collateral;  (iii) to pay or discharge  taxes,
liens,  security interests or other encumbrances at any time levied or placed on
or threatened  against the  Collateral;  (iv) to demand,  collect,  receipt for,
compromise,  settle and sue for monies due in respect of the Collateral; and (v)
generally,  to do, at the  option of the  Secured  Party,  and at the  Company's
expense,  at any  time,  or from  time to time,  all acts and  things  which the
Secured  Party  deems  necessary  to  protect,  preserve  and  realize  upon the
Collateral  and the  Security  Interest  granted  therein in order to effect the
intent of this  Agreement  and the Notes,  all as fully and  effectually  as the
Company  might or could  do;  and the  Company  hereby  ratifies  all that  said
attorney shall  lawfully do or cause to be done by virtue hereof.  This power of
attorney is coupled  with an interest and shall be  irrevocable  for the term of
this  Agreement  and  thereafter  as long  as any of the  Obligations  shall  be
outstanding.

            (b)   On  a  continuing  basis,  the  Company  will  make,  execute,
acknowledge,  deliver, file and record, as the case may be, in the proper filing
and recording places in any  jurisdiction,  all such  instruments,  and take all
such action as may reasonably be deemed necessary or advisable, or as reasonably
requested  by the  Secured  Party,  to perfect  the  Security  Interest  granted
hereunder and otherwise to carry out the intent and purposes of this  Agreement,
or for assuring and confirming to the Secured Party the grant or perfection of a
security interest in all the Collateral.

            (c)   The Company hereby  irrevocably  appoints the Secured Party as
the Company's  attorney-in-fact,  with full  authority in the place and stead of
the  Company  and in the name of the  Company,  from time to time in the Secured
Party's  discretion,  to take any action and to execute any instrument which the
Secured Party may deem necessary or advisable to accomplish the purposes of this
Agreement,  including  the  filing,  in its  sole  discretion,  of  one or  more
financing or continuation statements and amendments thereto,  relative to any of
the Collateral without the signature of the Company where permitted by law.

            (d)   The Company  shall  execute  such  additional  agreements  and
documents necessary or advisable to accomplish the purposes of this Agreement.

                                       9
<PAGE>

      13.   Notices.  All notices,  requests,  demands and other  communications
hereunder shall be in writing,  with copies to all the other parties hereto, and
shall be deemed to have been duly  given  when (a) if  delivered  by hand,  upon
receipt, (b) if sent by facsimile, upon receipt of proof of sending thereof, (c)
if sent by nationally recognized overnight delivery service (receipt requested),
the next  business day or (d) if mailed by  first-class  registered or certified
mail, return receipt requested,  postage prepaid, four days after posting in the
U.S. mails, in each case if delivered to the following addresses:

                  If to IPEX or RGB Channel:

                           IPEX, Inc.
                           9255 Towne Centre Drive
                           San Diego, California 92121
                           Attention:  Chief Executive Officer
                           Telephone: (858) 720-8000
                           Facsimile:  (858) 204-6115

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

                           Sichenzia Ross Friedman Ference LLP
                           1065 Avenue of the Americas
                           New York, New York 10018
                           Attention:  Marc J. Ross, Esq.
                           Telephone: (212) 930-9700
                           Facsimile:  (212) 930-9725

      If to a Secured  Party:  To the address set forth  immediately  below such
Secured Party's name on the signature pages to the Purchase Agreement.

      14.   Other  Security.  To the  extent  that  the  Obligations  are now or
hereafter  secured by property  other than the  Collateral or by the  guarantee,
endorsement or property of any other person, firm,  corporation or other entity,
then the Secured Party shall have the right, in its sole discretion,  to pursue,
relinquish,  subordinate,  modify or take any other action with respect thereto,
without in any way modifying or affecting any of the Secured  Party's rights and
remedies hereunder.

      15.   Miscellaneous.

            (a)   No course of  dealing  between  the  Company  and the  Secured
Party, nor any failure to exercise, nor any delay in exercising,  on the part of
the Secured Party,  any right,  power or privilege  hereunder or under the Notes
shall operate as a waiver thereof;  nor shall any single or partial  exercise of
any right,  power or  privilege  hereunder or  thereunder  preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.

            (b)   All of the  rights  and  remedies  of the  Secured  Party with
respect to the Collateral,  whether established hereby or by the Notes or by any
other agreements, instruments or documents or by law shall be cumulative and may
be exercised singly or concurrently.

                                       10
<PAGE>

            (c)   This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof and is intended to supersede all prior
negotiations,  understandings  and agreements  with respect  thereto.  Except as
specifically set forth in this Agreement,  no provision of this Agreement may be
modified or amended except by a written agreement specifically referring to this
Agreement and signed by the parties hereto.

            (d)   In the event that any  provision of this  Agreement is held to
be invalid,  prohibited or  unenforceable  in any  jurisdiction  for any reason,
unless such  provision  is narrowed by  judicial  construction,  this  Agreement
shall, as to such jurisdiction,  be construed as if such invalid,  prohibited or
unenforceable  provision had been more  narrowly  drawn so as not to be invalid,
prohibited or unenforceable. If, notwithstanding the foregoing, any provision of
this  Agreement  is held  to be  invalid,  prohibited  or  unenforceable  in any
jurisdiction,  such provision, as to such jurisdiction,  shall be ineffective to
the  extent  of  such  invalidity,   prohibition  or  unenforceability   without
invalidating the remaining  portion of such provision or the other provisions of
this  Agreement  and without  affecting the validity or  enforceability  of such
provision or the other provisions of this Agreement in any other jurisdiction.

            (e)   No waiver of any  breach or  default  or any right  under this
Agreement  shall be  considered  valid unless in writing and signed by the party
giving  such  waiver,  and no such  waiver  shall  be  deemed  a  waiver  of any
subsequent breach or default or right,  whether of the same or similar nature or
otherwise.

            (f)   This Agreement  shall be binding upon and inure to the benefit
of each party hereto and its successors and assigns.

            (g)   Each party  shall take such  further  action and  execute  and
deliver such further  documents as may be necessary or  appropriate  in order to
carry out the provisions and purposes of this Agreement.

            (h)   This Agreement  shall be construed in accordance with the laws
of the State of  California,  except to the extent the  validity,  perfection or
enforcement  of a security  interest  hereunder  in  respect  of any  particular
Collateral  which  are  governed  by a  jurisdiction  other  than  the  State of
California  in which  case such law shall  govern.  Each of the  parties  hereto
irrevocably  submit to the exclusive  jurisdiction  of any  California  State or
United  States  federal  court  sitting in San Diego  County  over any action or
proceeding arising out of or relating to this Agreement,  and the parties hereto
hereby irrevocably agree that all claims in respect of such action or proceeding
may be heard and  determined  in such  California  State or federal  court.  The
parties  hereto  agree that a final  judgment in any such  action or  proceeding
shall be conclusive  and may be enforced in other  jurisdictions  by suit on the
judgment or in any other  manner  provided by law.  The parties  hereto  further
waive any objection to venue in the State of California  and any objection to an
action  or  proceeding  in the  State of  California  on the  basis of forum non
conveniens.

                                       11
<PAGE>

            (i)   EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION  BASED  UPON OR  ARISING  OUT OF
THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL  ENCOMPASSING OF
ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER
OF THIS AGREEMENT,  INCLUDING WITHOUT LIMITATION  CONTRACT CLAIMS,  TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY
HERETO  ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO
ENTER INTO A BUSINESS  RELATIONSHIP,  THAT EACH PARTY HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY
ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
REPRESENTS  THAT IT HAS REVIEWED  THIS WAIVER WITH ITS LEGAL  COUNSEL,  AND THAT
SUCH  PARTY HAS  KNOWINGLY  AND  VOLUNTARILY  WAIVES  ITS RIGHTS TO A JURY TRIAL
FOLLOWING  SUCH  CONSULTATION.   THIS  WAIVER  IS  IRREVOCABLE,   MEANING  THAT,
NOTWITHSTANDING  ANYTHING HEREIN TO THE CONTRARY,  IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT  AMENDMENTS,
RENEWALS AND SUPPLEMENTS OR MODIFICATIONS  TO THIS AGREEMENT.  IN THE EVENT OF A
LITIGATION,  THIS AGREEMENT MAY BE FILED AS A WRITTEN  CONSENT TO A TRIAL BY THE
COURT.

            (j)   This Agreement may be executed in any number of  counterparts,
each of which when so  executed  shall be deemed to be an original  and,  all of
which taken together shall  constitute one and the same Agreement.  In the event
that any signature is delivered by facsimile transmission,  such signature shall
create a valid  binding  obligation  of the party  executing (or on whose behalf
such  signature is executed)  the same with the same force and effect as if such
facsimile signature were the original thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

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

                               IPEX, INC.

                               By:  _____________________________________
                                    Sothi Thillairajah
                                    Chief Executive Officer

                               RGB CHANNEL, INC.

                               By:  _____________________________________
                                    Sothi Thillairajah
                                    Chief Executive Officer

                        [SECURED PARTY SIGNATURES FOLLOW]

                                       13
<PAGE>

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

                                 SECURED PARTY

                                 By:  _____________________________________
                                 Print Name:
                                 Print Title:

                                       14
<PAGE>

                                   SCHEDULE A
                                   ----------

Principal Place of Business of the Company:
-------------------------------------------

9255 Towne Centre Drive
San Diego, California 92121

Locations Where Collateral is Located:
--------------------------------------

9255 Towne Centre Drive
San Diego, California 92121

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