Document:

SEVERANCE AGREEMENT AND COVENANTS

1.    PARTIES.

      The parties to this Severance Agreement and Covenants (hereinafter
"Agreement") are GERALD BECKWITH and IPEX, INC., a California corporation
("IPEX").

      1.1   GERALD BECKWITH.

      For the purposes of this Agreement, BECKWITH means GERALD BECKWITH,
BECKWITH's heirs, executors, administrators, assigns, and spouse (as
applicable).

      1.2   THE COMPANY.

      For purposes of this Agreement the "Company" means IPEX, and all
subsidiaries, affiliated companies and other business entities thereof, all
predecessors and successors of each, and all of each entity's officers,
shareholders, directors, employees, attorneys, agents, representatives, or
assigns, in their individual and representative capacities.

2.    BACKGROUND AND PURPOSE.

      BECKWITH was employed by IPEX. BECKWITH's employment ended effective
January 18, 2006 (the "Termination Date") when he resigned as IPEX's President,
Chief Executive Officer, and Chairman of the Board of Directors. Pursuant to the
Older Workers Benefit Protection Act, BECKWITH has twenty-one (21) days (until
March 8, 2006) to consider and seven (7) days after signing to revoke this
Agreement. The parties are entering into this Agreement to define the severance
relationship and to settle fully and finally, any and all claims BECKWITH may
have against Company, whether asserted or not, including, but not limited to,
claims arising out of or related to BECKWITH's employment, claims for
reemployment, board membership, board observation rights, any termination or any
other claims whether asserted or not, that relate to BECKWITH's employment,
termination, reemployment, or application for reemployment.

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3.    ACKNOWLEDGEMENTS AND REPRESENTATIONS.

      3.1   PAYMENT.

      BECKWITH acknowledges and agrees that he has been paid all Base Salary as
defined in the Employment Agreement and partial accrued vacation pay that is
owed through the Termination Date.

      3.2   EMPLOYEE BENEFITS.

      BECKWITH acknowledges and agrees that he has received information
regarding his rights to health insurance continuation and retirement benefits.
To the extent BECKWITH has such rights, nothing in this Agreement will impair
those rights.

      3.3   AGREEMENT COVENANTS.

      BECKWITH acknowledges and agrees that under paragraph 10 of the Employment
Agreement dated July 13, 2005 (the "Employment Agreement"), he has been and will
be, for a period of two years, bound by a covenant against revealing IPEX's
Confidential Information (as defined in the Employment Agreement). BECKWITH
understands that IPEX retains the right to enforce its rights under these and
other provisions of the Employment Agreement.

4.    RELEASES.

      4.1   BECKWITH'S RELEASE.

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      BECKWITH waives, acquits, forever discharges and hereby releases Company
from any and all claims, demands, actions, or causes of action, arising from or
related in any way to any employment of or past failure or refusal to employ
BECKWITH by Company, or any other past claim (except as reserved by this
Agreement or where expressly prohibited by law) that relates in any way to
BECKWITH's employment, employment contract, board membership, board observation
rights, any termination, compensation, benefits, reemployment or application for
employment, with the exception of any claim either party may have for
enforcement of this Agreement. This release includes any and all claims, direct
or indirect, which might otherwise be made under any applicable local, state or
federal authority, including but not limited to any claim arising under the
state or local statutes where BECKWITH was employed by Company dealing with
employment, discrimination in employment, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991, the Americans With Disabilities Act, the
Family and Medical Leave Act of 1993, the Equal Pay Act of 1963, Executive Order
11246, the Rehabilitation Act of 1973, the Uniformed Services Employment and
Reemployment Rights Act of 1994, the Age Discrimination in Employment Act, the
Older Workers Benefit Protection Act, the Fair Labor Standards Act, wage and
hour statutes of the state where employed, all as amended, any regulations under
such authorities, or any other applicable statutory contract, tort, or common
law theories, except that BECKWITH does not release IPEX from its obligations
under this Agreement, its contribution and indemnification obligations, if any,
or from any coverage under any policy of insurance providing indemnity and
related costs for the benefit of BECKWITH. With respect to the releases
contained herein, it is acknowledged by BECKWITH, that he has been informed of
the provisions of Section 1542 of the Civil Code of the State of California, and
does hereby expressly waive and relinquish all rights and benefits which he has
or may have under said Section, or any comparable law under any other
jurisdiction from the beginning of the world through the date of this Agreement.
Said section reads as follows:

      "A general release does not extend to claims which the creditors does not
      know or suspect to exist in his favor at the time of executing the
      release, which if known by him must have materially affected his
      settlement with the debtor."

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      4.2   IPEX'S RELEASE

      IPEX waives, acquits, forever discharges and hereby releases BECKWITH from
any and all claims, demands, actions, or causes of action, whether known or
unknown, arising against IPEX, or any other past claim (except as reserved by
this Agreement or where expressly prohibited by law) that relates in any way to
BECKWITH's employment, employment contract, board membership, board observation
rights, any termination, compensation, benefits, reemployment or application for
employment, with the exception of any claim either party may have for
enforcement of this Agreement, except IPEX does not release BECKWITH for any
acts or omissions which involve intentional misconduct, fraud, or a knowing
violation of the law. This release includes any and all claims, direct or
indirect, which might otherwise be made under any applicable local, state or
federal authority, or any other applicable statutory contract, tort, or common
law theories, except that IPEX does not release BECKWITH from his obligations
under this Agreement, his contribution and indemnification obligations, if any,
or from any coverage under any policy of insurance providing indemnity and
related costs for the benefit of IPEX. With respect to the releases contained
herein, it is acknowledged by IPEX, that it has been informed of the provisions
of Section 1542 of the Civil Code of the State of California, and does hereby
expressly waive and relinquish all rights and benefits which it has or may have
under said Section, or any comparable law under any other jurisdiction from the
beginning of the world through the date of this Agreement. Said section reads as
follows:

      "A general release does not extend to claims which the creditors does not
      know or suspect to exist in his favor at the time of executing the
      release, which if known by him must have materially affected his
      settlement with the debtor."

      4.3   NO ADMISSION OF LIABILITY.

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      It is understood and agreed that the acts done and evidenced hereby and
the release granted hereunder is not an admission of liability on the part of
BECKWITH or IPEX, by whom liability has been and is expressly denied by both.

5.    CONSIDERATION.

      After receipt of this Severance Agreement properly and fully endorsed by
BECKWITH, and the expiration of the seven (7) day revocation period provided by
the Older Worker Benefit Protection Act without BECKWITH's revocation, IPEX will
be obligated to pay BECKWITH:

      a.    177,608 restricted shares of IPEX common stock and 291,666 options
            to purchase IPEX common stock at a strike price of $2.71 per share
            with and expiration date of February 15, 2016;

      b.    16,369 restricted shares of IPEX common stock and 65,493 options to
            purchase IPEX common stock at a strike price of $2.36 per share with
            and expiration date of February 15, 2016, as compensation for
            BECKWITH's service as a member of the IPEX's Board of Directors;

      c.    2,030 restricted shares of IPEX common stock as compensation for
            accrued vacation time;

      d.    IPEX agrees to provide BECKWITH with six (6) months health
            insurance;

      e.    IPEX will reimburse BECKWITH for all outstanding business expenses
            accrued on behalf of the Company (such as, airfare, telephone and
            office expenses).

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6.    MUTUAL NONDISPARAGEMENT.

      BECKWITH agrees that BECKWITH will not disparage or make false statements
about Company. IPEX should report to BECKWITH any actions or statements that are
attributed to BECKWITH that IPEX believes are disparaging or false. IPEX may
take actions consistent with the provision for breach of the agreement should it
determine that BECKWITH has disparaged or made false statements about Company.

      IPEX agrees that its officers and directors will not disparage or make
false statements about BECKWITH. BECKWITH should report to IPEX any actions or
statements that are attributed to IPEX's officers or directors which BECKWITH
believes are disparaging or false. BECKWITH may take actions consistent with the
provision for breach of this Agreement should BECKWITH determine that IPEX's
officers or directors have disparaged or made false statements about BECKWITH.

7.    CONFIDENTIAL, PROPRIETARY AND TRADE SECRET INFORMATION.

      BECKWITH acknowledges the continuing duties under the Employment Agreement
signed by BECKWITH and agrees not to use or disclose confidential, proprietary
or trade secret information learned while an employee, officer, director, and/or
consultant of IPEX or its predecessors, and covenants not to breach that duty
(except as required by law). Should BECKWITH, BECKWITH's attorney or agents be
requested in any judicial, administrative, or other proceeding or investigation
to disclose confidential, proprietary or trade secret information BECKWITH
learned while an employee, officer, director, and/or consultant of IPEX or its
predecessors, BECKWITH shall promptly notify IPEX of such request.

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8.    COVENANTS.

      8.1   COVENANT NOT TO PROSECUTE OR MAINTAIN ANY ACTION OR PROCEEDING.

      In exchange for the consideration herein, BECKWITH covenants as to
Company, he has no claim at this time and does not plan to prosecute or
hereafter maintain or institute any action at law, suit or proceeding in equity,
administrative or any proceeding of any kind or nature whatsoever for any reason
related in any way to any claim released herein. At the time of his execution of
this Agreement, BECKWITH represents that there are no claims, complaints or
charges pending against Company in which BECKWITH is a party or complainant.
Further, BECKWITH acknowledges and agrees there are no unasserted workers'
compensation claims through the date of his execution of this Agreement.

      8.2   COVENANT TO RETURN ALL COMPANY PROPERTY.

      BECKWITH agrees to return all property of IPEX or Company, if any, within
seven (7) days after BECKWITH's execution of this Agreement. For the purposes of
this Agreement, property includes, but is not limited to, credit cards, keys,
card keys, computers, computer files, all originals and copies of all documents,
cell phone, palm pilot, equipment, supplies, and any other property belonging to
IPEX or Company. BECKWITH further covenants that, since January 18, 2006,
BECKWITH has no personal charges or unauthorized business charges on the credit
cards to be returned or otherwise and agrees to reimburse IPEX if BECKWITH is
mistaken.

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      8.3   COOPERATION IN DEFENSE OF COMPANY; CONSULTATION.

      BECKWITH covenants now and in the future that BECKWITH will reasonably
cooperate with Company to the best of BECKWITH's ability in the defense of any
claim brought against Company of which BECKWITH has any personal knowledge
("Defense Services") at a consultation rate of $250/hour. IPEX agrees it will
reimburse BECKWITH's reasonable out-of-pocket expenses in providing such Defense
Services. In addition, BECKWITH agrees to reasonably provide specific operations
information to IPEX as requested in a reasonable, timely and clear manner to
allow IPEX to continue and/or complete job tasks, activities, assignments, to
continue effective relationships with business partners by responding to
reasonable inquiries as needed by telephone ("Consulting Services").

      8.4   COVENANT AGAINST UNFAIR COMPETITION.

      BECKWITH represents and warrants that he has not, at any time during his
employment with IPEX or the Company, violated (i) the covenant of
Non-Competition contained in paragraph 11 of the Employment Agreement or (ii)
the covenant as to Business Opportunities in paragraph 15 of the Employment
Agreement. BECKWITH represents and warrants that he has not disclosed any IPEX
proprietary information to any person or entity not covered by a Non-Disclosure
Agreement .

      Specifically, BECKWITH further covenants that he will not initiate
conversations with Edward Sullivan, Richard Weintraub and Joseph Lyle Putegnat
III concerning past or present business or actions concerning the Company for a
period of two years.

      Additionally, BECKWITH agrees and covenants not to, for a period of two
years, violate Section 10 of the Employment Agreement, involving Confidential
Information.

      8.5   RESIGNATION FROM BOARD OF DIRECTORS.

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      By executing Exhibit A concurrently with this Agreement, BECKWITH hereby
tenders his resignation as a Director of IPEX effective as of the date of this
Agreement. Further, BECKWITH hereby agrees to waive any and all rights to notice
and attendance at all regular and special meetings of IPEX's Board of Directors.

9.    LITIGATION OF CERTAIN DISPUTES; CLAIMS FOR IRREPARABLE HARM; VENUE.

      Except as provided below, BECKWITH and IPEX, in the event of a dispute
arising under this Agreement including, but not limited to, the enforcement of
the Covenant-Not-To-Compete and non-disclosure provisions hereof, the parties
irrevocably consent to the personal jurisdiction of the State and Federal Courts
sitting in the County of San Diego, State of California. Further, the parties
agree that venue is proper in such Court and waive any claim or defense of forum
non-convenience. In any event, each party shall pay it own costs and attorneys'
fees

10.   SCOPE OF AGREEMENT.

      The provisions of this Agreement shall be deemed to obligate, extend to,
and inure to the benefit of the parties: Company's affiliates, successors,
predecessors, assigns, directors, officers, and employees; and each parties
insurers, transferees, grantees, legatees, agents and heirs, including those who
may assume any and all of the above-described capacities subsequent to the
execution and effective date of this Agreement.

11.   OPPORTUNITY FOR ADVICE OF COUNSEL.

      BECKWITH acknowledges that BECKWITH has been encouraged by IPEX to seek
advice of counsel with respect to this Agreement and has had the opportunity to
do so.

12.   SEVERABILITY.

      Every provision of this Agreement is intended to be severable. In the
event any term or provision of this Agreement is declared to be illegal or
invalid for any reason whatsoever by an arbitrator or a court of competent
jurisdiction or by final and unappealed order of an administrative agency of
competent jurisdiction, such illegality or invalidity should not affect the
balance of the terms and provisions of this Agreement, which terms and
provisions shall remain binding and enforceable.

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13.   NO WAIVER.

      Failure of either party to enforce any term of this Agreement shall not
constitute a waiver of the party's right to enforce that term or any other term
of this Agreement.

14.   COSTS AND ATTORNEY'S FEES.

      The parties each agree to bear their own costs and attorneys' fees which
have been or may be incurred in connection with any matter herein or in
connection with the negotiation and consummation of this Agreement or any action
to enforce the provisions of this Agreement.

15.   GOVERNING LAW.

      The rights and obligations of the parties under this Agreement shall in
all respects be governed by the laws of the United States and the State of
California.

16.   PAYMENT: REVOCATION.

      BECKWITH acknowledges that the Agreement provides severance pay and
benefits. As provided by the Older Workers Protection Act, BECKWITH is entitled
to have twenty-one (21) days (until February 27, 2006) to consider this
Agreement. For a period of seven (7) days from execution of this Agreement,
BECKWITH may revoke this Agreement. Upon receipt of BECKWITH's properly-signed
Agreement and the expiration of the seven-day revocation period without
BECKWITH's revocation, payment by IPEX as provided herein will be forwarded by
mail in a timely manner.

17.   ENTIRE AGREEMENT: MODIFICATION.

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      This Agreement and the Employment Agreement signed by BECKWITH contain the
entire agreement and understanding among the parties as to BECKWITH's separation
as an employee and director. This Agreement supersedes and replaces all other
prior negotiations and proposed agreements, written or oral as to BECKWITH's
separation. BECKWITH and IPEX acknowledge that no other party, nor agent nor
attorney of any other party, has made any promise, representation, or warranty,
express or implied, not contained in this Agreement concerning the subject
matter of this Agreement or to induce this Agreement, and BECKWITH and IPEX
acknowledge that they have not executed this Agreement in reliance upon any such
promise, representation, or warranty not contained in this Agreement.

      No modification or waiver of any of the provisions or any future
representation, promise or addition shall be binding upon the parties unless
made in writing and signed by the parties.

      IN WITNESS WHEREOF, the undersigned has executed this Severance Agreement
and Convenants as of the 15th day of February, 2006.

                                        /s/ Gerald Beckwith
                                        ----------------------------------------
                                        GERALD BECKWITH

STATE OF ______________    )
                           ) ss:
County of ______________   )

      Personally appeared the above name GERALD BECKWITH and acknowledged the
foregoing instrument to be BECKWITH's voluntary act and deed.

                            Before me:

                                        ----------------------------------------
                                        Notary Public for
                                                         ----------------------

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                                        IPEX, Inc.

                                        By: /s/ Milton Ault
                                           -------------------------------------

                                        Its: Chairman of Board
                                            -----------------------------------
                                        On behalf of "IPEX"
                                        and "Company"

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<PAGE>

                                                                       Exhibit A

                                   RESIGNATION

      The undersigned, GERALD BECKWITH, effective as of February 15, 2006,
hereby resigns from his positions as a Director of IPEX, Inc., a California
corporation.

/s/ Gerald Beckwith
----------------------------------------

GERALD BECKWITH

                                       13INDEMNIFICATION AGREEMENT

      This Indemnification Agreement ("Agreement") is made as of February 15,
2006, by and between IPEX, Inc., a Nevada corporation (the "Company"), and
Gerald Beckwith ("Indemnitee"), a director and/or officer or key executive,
employee or consultant of the Company, or a person serving at the request of the
Company as a director, officer, employee or agent of another enterprise.

                                    RECITALS

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

      WHEREAS, effective February 18, 2006, the Indemnitee resigned as a
director of the Company;

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

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

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

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

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

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

      1. Definitions. As used in this Agreement:

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

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

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

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

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<PAGE>

      4. Conclusive Presumption Regarding Standards of Conduct. The Indemnitee
shall be conclusively presumed to have met the relevant standards of conduct, if
any, as defined by applicable corporate law, for indemnification pursuant to
this Agreement, unless a determination is made that the Indemnitee has not met
such standards (i) in a written opinion by independent counsel, selection of
whom has been approved by the Indemnitee in writing, or (ii) by a court of
competent jurisdiction.

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

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

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

      8. Indemnification Procedure; Determination of Right to Indemnification.

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

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<PAGE>

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

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

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

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

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

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

                                       4
<PAGE>

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

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

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

            10. Maintenance of Liability Insurance.

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

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

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

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

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

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

                                       5
<PAGE>

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

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

                                       6
<PAGE>

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

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

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

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

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

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

         If to the Indemnitee to:       Gerald Beckwith

                                        ----------------------------------------

                                        ----------------------------------------
                                        Facsimile:
                                                  ------------------------------

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

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

IPEX, INC.                              INDEMNITEE:

By: /s/ Milton Ault                      /s/ Gerald Becwith
   -------------------------------      ----------------------------------------
Name: Milton "Todd" Ault, III           Gerald Beckwith
Title: Chairman of the Board

                                       7

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