Document:

exv4w6

 

Exhibit 4.6

June 14, 2005

Surge Global Energy, Inc.

12220 El Camino Real, Suite 410

San Diego, CA 92130 USA

Attn: David Perez, Chief Operating Officer and Chairman

Re: Letter of Intent to Conduct Feasibility Study

Dear David:

As per recent discussions between your firm and ours, we wish to present you with this letter of
intent that will progress your Sawn Lake Heavy Oil project. Our understanding of the terms under
which Genoil Inc. (“Genoil”) and Surge Global Energy, Inc. (“Surge”) will work together are as
follows:

	 	1.	 	Genoil will conduct field tests using Sawn Lake heavy oil. Genoil will pay the
operating costs associated with running the Two Hills facility for the duration of the
tests. Surge will supply the oil, desalt it if necessary, and pay for crude assays for
both the feed and product crudes. A formal testing agreement will follow the signing of
this letter.
	 
	 	2.	 	Genoil will use the results of the testing to provide Surge with a technical report
on the results of the tests, including optimal operating conditions and resulting product
characteristics of the syncrude.
	 
	 	3.	 	Genoil will provide Surge with a preliminary cost estimation for a field upgrader
incorporating the Genoil Hydroconversion Unit (“GHU”).
	 
	 	4.	 	Based on these reports, Surge will determine whether or not to move forward to the
detailed engineering phase of the project, at which time Genoil and Surge and its partners
shall enter into a written agreement including the terms outlined below:

	 	a.	 	Assuming that Surge determines to move forward, Genoil will oversee
construction of the field upgrader at an actual cost. Surge and its partners will
be responsible for all costs associated with the detailed engineering,
procurement, construction, and commissioning of the project.
	 
	 	b.	 	Net Revenue for the Upgrader will be calculated by first determining
a field price for the feedstock (“Heavy oil Price”). The Heavy oil Price will be
determined by reference to posted pricing for comparable crudes in the area if
possible. The Gross Revenue received shall be equal to the price achieved when
the upgraded product is sold to an unrelated third party (net of transportation
costs to the transfer point). The Upgrader Expenses will include all direct
expenses of the Upgrader as well as allocated expenses where applicable. The Net
Revenue will equal the Gross Revenue less the Heavy oil Price less Upgrader
Expenses.

 

 

	 	c.	 	Once the Aggregate Net Revenue received from the project by Surge and
its partners is equal to the actual Capital Costs spent by Surge and its partners,
the Payout Time will be decreed to have been reached.
	 
	 	d.	 	Prior to the Payout Time, Surge and its partners will receive 100% of
the Net Revenues. After the Payout Time, Surge et al will receive 70% of the Net
Revenues and Genoil will be entitled to receive a payment equal to 30% of the Net
Revenues for the balance of the life of the Project.

If you are in agreement with the above terms, please sign below and return a copy to Genoil.

Sincerely,

/s/ David K. Lifschultz

David K. Lifschultz

CEO & Chairman

Genoil Inc.

Agreed to this 14th day of June 2005.

/s/ David Perez

David Perez

COO & ChairmanPURCHASE AGREEMENT

                              by, between and among

                                   IPEX, Inc.
                                 ("Purchaser"),

                                 RGB Channel SRL
                                   ("Seller"),

                        Massimo Ballerini and B Tech Ltd.
                          ("Controlling Stockholder"),

                                       and

                                  Emanuele Boni
                                 ("Stockholder")

                                  June 7, 2005

<PAGE>

                                TABLE OF CONTENTS

1.       PURCHASE AND SALE ASSETS                                              1

         1.1       Purchase and Sale of Assets                                 1
         1.2       Liabilities Not Assumed                                     2
         1.3       Instruments of Conveyance or Assignment                     2

2.       PURCHASE PRICE                                                        2

         2.1       Purchase Price                                              2

3.       CLOSING                                                               2

         3.1       Closing                                                     2

4.       TAXES AND PREPAID ITEMS                                               2

5.       REPRESENTATIONS AND WARRANTIES OF SELLER AND
         CONTROLLING STOCKHOLDER                                               3

         5.1       Organization and Corporate Power                            3
         5.2       Due Authorization; Effect of Transaction                    3
         5.3       Personal Properties                                         3
         5.4       Material Contracts and Arrangements                         3
         5.5       Litigation and Compliance With Laws                         3
         5.6       Intellectual Property, Trademarks, Licenses, etc.           4
         5.7       Adverse Restrictions                                        4
         5.8       Material Information                                        4
         5.9       Certain Transactions                                        4
         5.9       No Governmental Authorizations or Approvals Required        4
         5.10      Continuing Representations                                  5

6.       REPRESENTATIONS, WARRANTIES, AND AGREEMENTS OF PURCHASER              5

         6.1       Due Authorization; Effect of Transaction                    5
         6.2       Capitalization                                              5
         6.3       Continuing Representations                                  5

<PAGE>

7.       CONDITIONS OF PURCHASER'S OBLIGATIONS                                 6

         7.1       Corporate Governance                                        6
         7.2       Employment Letter                                           6
         7.3       Instruments of Transfer                                     6
         7.4       Covenant Not to Compete and Confidentiality Agreement       6

8.       CONDITIONS OF SELLER'S, CONTROLLING STOCKHOLDER'S AND
         STOCKHOLDER'S OBLIGATIONS                                             6

         8.1       Purchase Price                                              6
         8.2       Corporate Governance                                        6
         8.3       Employment Letter                                           7
         8.4       Covenant Not to Compete and Confidentiality Agreement       7

9.       INDEMNIFICATION BY SELLER AND CONTROLLING STOCKHOLDER                 7

         9.1       Indemnification                                             7
         9.2       Notice of Claim                                             8

10.      BROKERAGE FEE                                                         8

11.      AMENDMENTS: WAIVERS                                                   9

12.      ASSIGNMENT; SUCCESSORS AND ASSIGNS                                    9

13.      SEVERABILITY                                                          9

14.      COUNTERPARTS                                                         10

15.      SECTION AND OTHER HEADINGS                                           10

16.      NOTICES                                                              10

17.      GENDER                                                               11

18.      LAW TO GOVERN                                                        11

19.      COURTS                                                               11

20.      CONFIDENTIALITY                                                      11

21.      POST-CLOSING MATTERS                                                 11

<PAGE>

Exhibits:
         Exhibit A    Employment Letter
         Exhibit B    Covenant Not to Compete and Confidentiality Agreement

Schedules:
         5.1       Seller's Jurisdictions
         5.4       Seller's Material Contracts
         5.5       Seller's Litigation
         5.6       Seller's Intellectual Property

<PAGE>

                               PURCHASE AGREEMENT
                               ------------------

      THIS PURCHASE AGREEMENT (this  "Agreement"),  entered into this 7th day of
June 2005, by, between and among IPEX, Inc. a corporation organized and existing
under  the  laws of the  State of  Nevada  ("Purchaser");  RGB  Channel  SRL,  a
corporation organized and existing under the laws of Italy ("Seller");  Emanuele
Boni (the  "Stockholder");  and Massimo Ballerini and B Tech Ltd., a corporation
organized  and  existing   under  the  laws  of  the  British   Virgin   Islands
(collectively, the "Controlling Stockholder").

                          W I T N E S S E T H T H A T:

      WHEREAS,  Purchaser  desires to  purchase  and Seller  desires to sell and
convey to Purchaser  certain  assets of Seller  relating to the  development  of
certain intellectual property,  upon the terms and subject to the conditions set
forth herein.

      WHEREAS, the Purchaser shall purchase from the Stockholder and Controlling
Stockholder  certain other assets  relating to the  development of certain other
intellectual  property,  pursuant to an agreement of even date,  that will close
simultaneously with this Agreement.

      NOW, THEREFORE,  in consideration of the agreements of the parties hereto,
and intending to be legally bound hereby, the parties hereto agree as follows:

1.    PURCHASE AND SALE OF ASSETS.

      1.1 Purchase and Sale of Assets. At the Closing (as defined in Section 3),
Seller agrees to sell, convey,  transfer,  assign, and deliver to Purchaser, and
Purchaser  agrees to purchase from Seller,  for the purchase  price  hereinafter
specified  in Section 2.1,  certain of Seller's  assets as set forth in Schedule
5.6 (the "Assets."),  free and clear of all liens, encumbrances and liabilities.
Without  limiting the generality of the foregoing,  the Assets to be acquired by
Purchaser hereunder shall include:

            (a) All of  Seller's  rights  to or under  all  trademarks,  service
      marks,   certification   marks,   United  States  and  foreign   trademark
      registrations and  applications,  trade names,  copyrights,  domain names,
      United  States  and  foreign  patents  and  patent  applications,  if any,
      including  international  priority rights  associated  therewith,  and all
      patent and other  license,  trade secrets,  inventions,  and royalties and
      rights to sue for past  infringements,  relating to those items  listed or
      otherwise described on the Schedules hereto.

            (b) Any and all right,  title and  interest  of the Seller in and to
      all  intellectual  property rights and proprietary  expertise,  including,
      without limitation,  proprietary information,  technical and technological
      data, know-how, processes,  invention conception memoranda,  manufacturing
      and engineering data,  computer programs,  and trade secrets,  relating to
      the Assets.

                                       1
<PAGE>

            (c) Any and all files, papers, books, records, sales and advertising
      materials  and records,  technical  and user  manuals,  sales and purchase
      correspondence,  permits, licenses,  certificates of any governmental body
      and quotations affecting or pertaining to the Assets.

            (d) All of Seller's rights under any of the  restrictive  covenants,
      nondisclosure  agreements,  and similar  obligations of present and former
      officers and employees of Seller relating to the Assets.

      1.2 Liabilities Not Assumed. Purchaser shall not assume any liabilities of
Seller.

      1.3  Instruments  of  Conveyance  or  Assignment.  The  sale,  conveyance,
transfer,  assignment,  and delivery of the Assets, as herein provided, shall be
effected by bills of sale, assignments,  or other instruments in such reasonable
and customary form as shall be requested by Purchaser,  and Seller,  Controlling
Stockholder  and  Stockholder  shall at any time and from time to time after the
Closing,  upon  reasonable  request,  execute,  acknowledge,  and  deliver  such
additional bills of sale, assignments,  or other instruments and take such other
actions  as  may  be  reasonably   required  to  effectuate   the   transactions
contemplated by this Agreement.

2.    PURCHASE PRICE.

      2.1 Purchase Price. In consideration for the sale,  conveyance,  transfer,
and delivery of the Assets and upon the terms and subject to the  conditions set
forth in this Agreement, Purchaser shall pay to Seller, as of the Closing as set
forth in Section 3, the "Purchase  Price",  which shall be a cash payment of two
hundred seventy five thousand dollars ($275,000);

3.    CLOSING.

      3.1 Closing.  The closing of the sale and purchase (the  "Closing")  shall
take place at the offices of Weintraub  Law Group,  10085  Carroll  Canyon Road,
Suite 210B, San Diego,  California  92131  simultaneously  with the execution of
this Agreement by all the parties hereto (the "Closing  Date").  At the Closing,
Seller shall deliver to Purchaser such bills of sale, endorsements, assignments,
deeds, drafts,  checks, stock powers, or other instruments as shall be effective
to vest in  Purchaser  good and  marketable  title to the  Assets  subject to no
liens,  encumbrances,  or rights in any other party whatsoever.  At the Closing,
Purchaser shall deliver the consideration set forth in Section 2.

4.    TAXES AND PREPAID ITEMS.

      Except as otherwise  provided  herein,  Seller will pay all Italian sales,
use,  franchise,  and other  taxes and  charges,  which may  become  payable  in
connection  with the sale of the Assets pursuant to the terms of this Agreement,
and any and all other Italian taxes and charges accruing out of the operation of
Seller's businesses prior to the Closing Date.

                                       2
<PAGE>

5.    REPRESENTATIONS AND WARRANTIES OF SELLER AND CONTROLLING STOCKHOLDER.

      Seller and  Controlling  Stockholder  jointly and severally  represent and
warrant, covenant and agree that as of the Closing Date:

      5.1  Organization  and  Corporate  Power.  Seller  is a  corporation  duly
organized,  validly  existing,  and in  good  standing  under  the  laws  of its
jurisdiction  of  incorporation  with full power and  authority  (corporate  and
other) to carry on the  business in which it is engaged (a true and correct list
of each such  jurisdiction  is set forth in  Schedule  5.1) and to  execute  and
deliver and carry out the transactions contemplated by this Agreement.

      5.2  Due  Authorization;  Effect  of  Transaction.  No  provisions  of the
Certificate  of  Incorporation  or  By-Laws  of  Seller,  or of  any  agreement,
instrument, or understanding,  or any judgment,  decree, rule, or regulation, to
which  Seller  is a party  or by  which  Seller  is  bound,  has been or will be
violated  by the  execution  and  delivery  by Seller of this  Agreement  or the
performance or satisfaction of any agreement or condition  herein contained upon
its part to be performed or  satisfied,  and all  requisite  corporate and other
authorizations for such execution, delivery,  performance, and satisfaction have
been duly obtained. Upon execution and delivery, this Agreement will be a legal,
valid,   and  binding   obligation  of  Seller,   Controlling   Stockholder  and
Stockholder,  enforceable in accordance with its terms. Seller is not in default
in the performance, observance, or fulfillment of any of the terms or conditions
of its Articles of Incorporation or By-Laws.

      5.3 Personal Properties.  Seller owns and has good and marketable title to
all the tangible and intangible  personal  property and assets,  as set forth in
Schedule 5.6, free and clear of all mortgages,  liens,  encumbrances,  equities,
claims,  and  obligations to other persons,  of whatever kind and character Upon
the  sale,  assignment,  transfer,  and  delivery  of the  Assets  to  Purchaser
hereunder,  there will be vested in Purchaser good and  marketable  title to the
tangible and intangible personal property  constituting a part thereof, free and
clear of all mortgages,  liens, encumbrances,  equities, claims, and obligations
to other persons, of whatever kind and character.

      5.4 Material  Contracts and Arrangements.  Except as set forth in Schedule
5.4,  Seller is not a party to any contract or arrangement,  including,  without
limitation,  any commitments or obligations,  contingent or otherwise,  relating
directly or indirectly to the Assets.

      5.5  Litigation  and  Compliance  with Laws.  Seller is not a party to any
litigation or legal or other actions, suits, proceedings, or investigations,  at
law or in equity or admiralty, or before any federal, state, municipal, or other
governmental department, commission, board, agency, or instrumentality, domestic
or  foreign,  in which  Seller  or any of its  officers  or  directors,  in such
capacity,  is engaged, or, to the knowledge and belief of Seller and Controlling
Stockholder,  with  which  Seller  or  any  of  its  officers  or  directors  is
threatened,  except as set forth in Schedule 5.5 (subject to the  provisions  of
Section 10), in connection,  directly or indirectly,  with the Assets. Seller is
and at all times since its  inception  has been in  compliance  with all Italian
laws and governmental  rules and regulations,  and all requirements of insurance
carriers, applicable to the Assets.

                                       3
<PAGE>

      5.6 Intellectual Property,  Trademarks,  Licenses,  Etc. Schedule 5.6 sets
forth all of the intellectual property,  trademarks, trade names, service marks,
patents,  copyrights,  registrations,  or applications with respect thereto, and
licenses or rights under them owned, used, or intended to be acquired or used by
Seller,  and,  to the extent  indicated  in  Schedule  5.6,  they have been duly
registered  in such  offices as are  indicated  therein.  Seller is the sole and
exclusive owner of the intellectual property,  trademarks,  trade names, service
marks,  and  copyrights,  the holder of the full record  title to the  trademark
registrations  and the sole owner of the  inventions  covered by the patents and
patent  applications,  all as set forth in Schedule 5.6; Seller has the sole and
exclusive right, to the extent listed in Schedule 5.6, to use such  intellectual
property,  trademarks,  trade names, service marks, patents and copyrights, and,
except to the extent set forth on Schedule  5.6,  all of them are free and clear
of  any  mortgages,  liens,  encumbrances,   equities,   licenses,  claims,  and
obligations to other persons of whatever kind and character.

      5.7 Adverse Restrictions. The execution and delivery of this Agreement and
the consummation of the transactions  contemplated hereby are not events that of
themselves  or with the giving of notice or the  passage of time or both,  could
constitute,  on the part of Seller, a violation of or conflict with or result in
any breach of, or default under the terms,  conditions,  or  provisions  of, any
judgment, law, or regulation,  or of the Certificate of Incorporation or By-Laws
of Seller, any agreement or instrument to which Seller is a party or by which it
is bound,  or result in the  creation  or  imposition  of any lien,  charge,  or
encumbrance of any nature  whatsoever on the property or assets of Seller and no
such event of itself or with the giving of notice or the passage of time or both
will result in the acceleration of the due date of any obligation of Seller.

      5.8 Material Information.  Neither this Agreement (including the Schedules
and  Exhibits  hereto)  nor any  certificate  or other  information  or document
furnished or to be  furnished by either  Seller or  Controlling  Stockholder  to
Purchaser  contains or will contain any untrue  statement of a material  fact or
omits or will omit to state a  material  fact  required  to be stated  herein or
therein or necessary to make the statements herein or therein not misleading.

      5.9 Certain Transactions.  None of the officers, directors or shareholders
of  Seller is  presently  a party to any  transaction  with  Seller,  including,
without limitation, 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 officers,
directors or shareholders,  any member of a family of any officers, directors or
shareholders or any  corporation,  partnership,  trust, or other entity in which
any officers,  directors or  shareholders  has a  substantial  interest or is an
officer, director, trustee, or partner.

      5.10  No   Governmental   Authorizations   or   Approvals   Required.   No
authorization  or  approval  of,  or  filing  with,  any  governmental   agency,
authority,  or other body will be required in connection  with the execution and
delivery of this Agreement or the consummation of the transactions  contemplated
hereby.

                                       4
<PAGE>

      5.11 Continuing  Representations.  The  representations  and warranties of
Seller and Controlling  Stockholder  herein  contained shall survive the Closing
for a period of one (1) year.

6.    REPRESENTATIONS, WARRANTIES, AND AGREEMENTS OF PURCHASER.

      Purchaser  represents  and  warrants,  covenants and agrees that as of the
Closing Date:

      6.1 Due Authorization;  Effect of Transaction. No provision of Purchaser's
Certificate of Incorporation  or By-Laws,  or of any agreement,  instrument,  or
understanding,  or any judgment, decree, rule, or regulation, to which Purchaser
is a party  or by  which it is  bound,  has  been,  or will be  violated  by the
execution by Purchaser of this Agreement or the  performance or  satisfaction of
any  agreement or condition  herein  contained  upon its part to be performed or
satisfied,  and all  requisite  corporate  and  other  authorizations  for  such
execution, delivery, performance, and satisfaction have been duly obtained. Upon
execution and  delivery,  this  Agreement  will be a legal,  valid,  and binding
obligation of Purchaser,  enforceable in accordance with its terms. Purchaser is
not in default in the  performance,  observance,  or  fulfillment  of any of the
terms or conditions of its Certificate of Incorporation or By-Laws.

      6.2 Capitalization. The authorized capital stock of the Purchaser consists
of  75,000,000  shares of common  stock,  having a par value of one-tenth of one
cent ($0.001) per share, of which  28,195,566  shares are issued and outstanding
("Capital  Stock").  On the  Valuation  Date,  the Common Stock will be duly and
validly  issued,  fully paid and  non-assessable.  The Capital Stock is free and
clear of any and all claims, liens, pledges, charges,  encumbrances,  mortgages,
security  interests,  options,  preemptive  or  other  rights,  restrictions  on
transfer,  or other interests or equities or imperfections of title  whatsoever.
Other than Series A Warrants to acquire 1,750,000 shares of common stock, Series
B Warrants to acquire  1,750,000  shares of common stock and warrants  issued to
certain placement agents to acquire 410,000 shares of Common Stock, there are no
other equity  securities of Purchaser  outstanding  on the date hereof and there
are no other  existing  warrants,  preemptive or other rights,  options,  calls,
commitments,  conversion  privileges,  or other agreements (all of the foregoing
being collectively called "Options") obligating Purchaser to issue any or all of
its authorized  and unissued  capital stock,  or any security  convertible  into
and/or  exchangeable  for capital stock of the  Purchaser.  The Purchaser has no
capital  stock of any class  authorized  or  outstanding  except  as  identified
herein.  The Capital Stock  represents one hundred  percent (100%) of the issued
and  outstanding  capital  stock of the Company.  The Capital  Stock and Options
issued to date by the  Purchaser  or any  subsidiary  were issued  pursuant to a
valid registration  statement or in transactions  exempt from registration under
the federal  Securities Act of 1933, as amended (the "Securities Act") and under
applicable state  securities or Blue Sky laws (the "State Laws").  The Purchaser
has not or will  not have  violated  the  Securities  Act or the  State  Laws in
connection with the issuance of any shares of capital stock or other  securities
from the date of incorporation through the Closing Date.

                                       5
<PAGE>

      6.4  Continuing  Representations.  The  representations  and warranties of
Purchaser  herein  contained  shall  survive the Closing for a period of one (1)
year.

7.    CONDITIONS OF PURCHASER'S OBLIGATIONS.

      The  obligations of Purchaser  hereunder are subject to the fulfillment to
the reasonable  satisfaction  of the Purchaser,  at the Closing,  of each of the
following conditions:

      7.1  Corporate  Governance.  Seller  shall  deliver to  Purchaser  copies,
certified by the Secretary of Seller,  of the unanimous  written  consent of the
Board of Directors and the stockholders of Seller authorizing this Agreement and
the other  agreements and instruments to be delivered  pursuant  thereto and the
transactions contemplated hereby and thereby.

      7.2 Employment Letter. The Controlling Stockholder shall have executed and
delivered  to Purchaser  an  Employment  Letter,  in  substantially  the form of
Exhibit A hereto.

      7.3  Instruments  of Transfer.  Seller  shall have  delivered to Purchaser
bills of sale  (including  such  documents  necessary  to transfer the Assets in
Italy), assignments,  deeds, stock powers, and other instruments of transfer and
assignment in accordance with the provisions  hereof,  transferring to Purchaser
all  of  Seller's  right,  title,  and  interest  in and  to  the  Assets  to be
transferred, sold, assigned, and conveyed by Seller to Purchaser pursuant to the
provisions of this Agreement.

      7.4 Covenant  Not to Compete and  Confidentiality  Agreement.  The Seller,
Ballerini  and Boni shall have  executed and delivered a Covenant Not to Compete
and Confidentiality Agreement, in substantially the form of Exhibit B hereto.

8.    CONDITIONS  OF  SELLER'S,   CONTROLLING  STOCKHOLDER'S  AND  STOCKHOLDER'S
OBLIGATIONS.

      The  obligations  of  Seller,   Controlling  Stockholder  and  Stockholder
hereunder  are subject to the  fulfillment  to the  reasonable  satisfaction  of
Seller,  Controlling  Stockholder  and Stockholder at the Closing of each of the
following conditions:

      8.1 Purchase Price.  Purchaser shall pay the Purchase Price for the Assets
in accordance with the terms of Section 2.1(a) hereof.

      8.2  Corporate  Governance.  Purchaser  shall  deliver  to Seller  copies,
certified by the Secretary of Purchaser, of the unanimous written consent of the
Board of  Directors  of  Purchaser  authorizing  this  Agreement  and the  other
agreements and instruments to be delivered pursuant thereto and the transactions
contemplated hereby and thereby.

      8.3 Employment  Letter. The Purchaser shall have executed and delivered to
Controlling  Stockholder  an Employment  Letter,  in  substantially  the form of
Exhibit A hereto.

                                       6
<PAGE>

      8.4 Covenant Not to Compete and Confidentiality  Agreement.  The Purchaser
shall have executed and delivered a Covenant Not to Compete and  Confidentiality
Agreement, in substantially the form of Exhibit B hereto.

9.    INDEMNIFICATION BY SELLER AND CONTROLLING STOCKHOLDER.

      9.1 Indemnification.

            (a) Seller and Controlling Stockholder  (collectively,  the "Selling
      Parties")  hereby agree jointly and severally to  indemnify,  defend,  and
      hold Purchaser and each of its officers and directors  (collectively  with
      Purchaser,  the "Purchasing Parties") harmless from and against the amount
      of any damage,  loss, cost, or expense  (including  reasonable  attorneys'
      fees and settlement  costs) to Purchasing  Parties ("Loss")  occasioned or
      caused by, resulting from, or arising out of:

                  (i) Any failure by a Selling  Party to  perform,  abide by, or
            fulfill any of the agreements,  covenants,  or obligations set forth
            in or entered  into,  in this  Agreement ( with the exclusion of the
            Employment  Letter  attached hereto as Exhibit A) to be so performed
            or fulfilled by such Selling Party.

                  (ii)  Any  material  inaccuracy  in or  breach  of  any of the
            representations  or warranties set forth in this  Agreement,  or any
            certificate or Schedule or other writing furnished pursuant hereto.

                  (iii) Any failure on the part of  Purchaser  to withhold  from
            the  Purchase   Price  any  amount  due  by  either  Seller  to  any
            governmental  authority  or other  person that  results in a loss to
            Purchaser.

            The amount of any Loss shall be the amount of cash  reimbursement or
set-off when received by the Purchasing  Party or Purchasing  Parties  incurring
such loss, shall place such Purchasing  Party or Purchasing  Parties in the same
financial  position it or they would have been in if such Loss has not occurred;
provided,   however,   except  as  otherwise   expressly   provided  herein,  no
indemnification  shall be payable by Selling  Parties  except to the extent that
the total of claims for  indemnification  by Purchasing Parties shall exceed ten
thousand  dollars  ($10,000)  (the  "Threshold")  (such amount being a threshold
amount versus merely a deductible).  Notwithstanding the foregoing,  in no event
shall Selling  Parties'  liability under this Section 9.1 exceed an amount equal
to the  Purchase  Price.  To the extent that a Loss under this Article 9 is as a
result of a claim by a person not a party to this Agreement,  the Loss will only
be reimbursed to the Purchasing Party to the extent that the Purchasing Party is
the prevailing party.

      9.2 Notice of Claim.  Purchasing  Parties shall give prompt written notice
to Selling  Parties of any claim (actual or  threatened)  or other event that in
the judgment of either  Purchasing  Party might result or has resulted in a Loss
by a Purchasing  Party  hereunder,  and Selling  Parties shall have the right to
assume the defense of such claim or any litigation resulting therefrom; provided
that  counsel for the  Selling  Parties,  who shall  conduct the defense of such
claim  (actual,  threatened,  or asserted) or  litigation,  shall be  reasonably
satisfactory to the Purchasing  Parties,  and Purchasing Parties may participate
in such defense at their expense,  and provided,  further,  that the omission by
Purchasing  Parties to give notice as provided  herein shall not relieve Selling
Parties of their  obligations  hereunder  except to the extent that the omission
results in a failure of actual notice to the Selling Parties and Selling Parties
are damaged solely as a result of the failure to give notice.  No Selling Party,
in the defense of any such claim or litigation,  shall,  except with the consent
of each  Purchasing  Party,  consent to the entry of any  judgment  or decree or
enter into any settlement that does not include as an unconditional term thereof
the giving by the claimant or plaintiff to Purchasing  Parties of a release from
all liability in respect to such claim or litigation, and no Selling Party shall
have  liability  with  respect  to any  payment  made by a  Purchasing  Party in
connection with the settlement,  satisfaction, or compromise of any claim unless
the Selling  Parties  shall have approved  thereof in advance in writing,  which
approval  shall not  unreasonably  be  withheld or  delayed.  If the  Purchasing
Parties shall not have received notice that the Selling Parties shall assume the
defense of such claim  within  twenty  (20) days after the notice is sent to the
Selling Parties of the existence of such claim, the Purchasing  Parties shall be

                                       7
<PAGE>

free to  proceed  with the  defense of such  claim.  Each such  notice  shall be
accompanied  (or  followed as promptly as is  reasonably  practicable  after the
amount  of such  Loss  becomes  determinable)  by a  certificate  signed  by the
President  of  Purchaser  or such  officer or  director  as the case may be, and
setting forth in reasonable detail the calculation of the amount of such Loss in
accordance with the provisions hereof, and accompanied by copies of all relevant
documents  and  records.  The  omission  to give  such  notice or  provide  such
certificate  by Purchasing  Parties shall not relieve  Selling  Parties of their
obligation  under this Section 9.2 except to the extent such omission results in
a failure of actual  notice to the  Selling  Parties  and  Selling  Parties  are
damaged  solely by such failure to give notice.  No Loss shall be  considered to
have  occurred  with  respect to any payment made by any  Purchasing  Parties in
settlement,  satisfaction, or compromise of any claim unless the Selling Parties
shall  have  approved  thereof in advance  and in  writing.  Prior to filing any
action in law in any court,  the  Purchasing  Parties agree to submit a Claim to
nonbinding  mediation  in San Diego,  California  within three (3) months of the
date of the Claim;  provided,  however, that if the statute of limitations for a
Claim is about to  expire,  the  Purchasing  Parties  may file a lawsuit  if the
Selling  Parties  have  not  signed  a  tolling  agreement  of  the  statute  of
limitations.

10.   BROKERAGE FEE.

      Seller and  Controlling  Stockholder  and Purchaser each represent that no
broker has been involved in this  transaction and each party agrees to indemnify
and hold the others harmless from payment of any brokerage fee, finder's fee, or
commission  claimed  by any party who  claims to have been  involved  because of
association with such party.

11.   AMENDMENTS; WAIVERS.

                                       8
<PAGE>

      This Agreement  constitutes the entire agreement of the parties related to
the  subject  matter of this  Agreement,  supersedes  all prior or  contemporary
agreements,  representations,  warranties,  covenants, and understandings of the
parties.  This  Agreement  may not be  amended,  nor shall any  waiver,  change,
modification,  consent,  or discharge be affected,  except by an  instrument  in
writing  executed by or on behalf of the party against whom  enforcement  of any
amendment, waiver, change, modification, consent, or discharge is sought.

      Any waiver of any term or condition of this Agreement, or of the breach of
any covenant, representation, or warranty contained herein, in any one instance,
shall not operate as or be deemed to be or construed as a further or  continuing
waiver  of such  term,  condition,  or breach of  covenant,  representation,  or
warranty,  nor shall any  failure  at any time or times to  enforce  or  require
performance  of any  provision  hereof  operate  as a waiver of or affect in any
manner such party's right at a later time to enforce or require  performance  of
such provision or of any other  provision  hereof;  and no such written  waiver,
unless it, by its own  terms,  explicitly  provides  to the  contrary,  shall be
construed to effect a  continuing  waiver of the  provision  being waived and no
such waiver in any instance  shall  constitute a waiver in any other instance or
for any other  purpose or impair the right of the party against whom such waiver
is claimed in all other  instances  or for all other  purposes  to require  full
compliance with such provision.

12.   ASSIGNMENT; SUCCESSORS AND ASSIGNS.

      This  Agreement  shall not be  assignable by any party without the written
consent of the others.  This Agreement  shall be binding upon and shall inure to
the benefit of the parties hereto and their respective  successors and permitted
assigns.

13.   SEVERABILITY.

      If any  provision or provisions  of this  Agreement  shall be, or shall be
found to be, invalid, inoperative, or unenforceable as applied to any particular
case in any  jurisdiction or  jurisdictions,  or in all  jurisdictions or in all
cases, because of the conflict of any provision with any constitution or statute
or rule of public policy or for any other reason,  such  circumstance  shall not
have the effect of rendering the  provision or  provisions in question  invalid,
inoperative,  or unenforceable in any other jurisdiction or in any other case or
circumstance or of rendering any other provision or provisions  herein contained
invalid,  inoperative, or unenforceable to the extent that such other provisions
are not themselves actually in conflict with such constitution, statute, or rule
of public policy, but this Agreement shall be reformed and construed in any such
jurisdiction or case as if such invalid, inoperative, or unenforceable provision
had never been contained herein and such provision  reformed so that it would be
valid,  operative,  and  enforceable  to the maximum  extent  permitted  in such
jurisdiction or in such case.

14.   COUNTERPARTS.

      This Agreement may be executed in two or more counterparts,  each of which
shall be deemed an original,  but all of which together shall constitute one and
the same instrument,  and in pleading or proving any provision of this Agreement
it shall not be necessary to produce more than one such counterpart. Delivery of
executed copies of this Agreement by facsimile will constitute  proper delivery,
provided  that  originally  executed  counterparts  are delivered to the parties
within a reasonable time thereafter.

                                       9
<PAGE>

15.   SECTION AND OTHER HEADINGS.

      The headings  contained in this Agreement are for reference  purposes only
and shall not in any way effect the meaning or interpretation of this Agreement.

16.   NOTICES.

      All notices,  requests,  demands, and other communications hereunder shall
be in  writing  and shall be deemed to have  been  duly  given if  delivered  or
mailed,  postage prepaid,  certified mail, return receipt requested,  emailed or
delivered by facsimile transmission:

                  (a)      TO SELLER, CONTROLLING STOCKHOLDER OR STOCKHOLDER: If
                           to Seller Controlling Stockholder or Stockholder:

                           3076 Sir Francis Drake Highway
                           PO BOX 3463 Road Town, Tortola
                           British Virgin Islands
                           Attn: Stefan Seuss
                           Phone:  (305) 858-8090
                           Facsimile:  (305) 858-4025

                           with a copy to:

                           Stefan Seuss
                           2333 Brickell Av.
                           Unit 1915
                           Miami,
                           Florida 33129
                           Phone:  (305) 858-8090
                           Facsimile:  (305) 858-4025

                  (b)      TO PURCHASER: If to Purchaser, to:

                           IPEX, Inc.
                           9255 Towne Centre Drive
                           Suite 235
                           San Diego, California 92121
                           Attn:  Milton "Todd" Alt, Chief Executive Officer
                           Phone:  (858) 720-8000
                           Facsimile:  (858) 259-8700

                                       10
<PAGE>

                           with a copy to:

                           Richard A. Weintraub, Esq.
                           Weintraub Law Group
                           10085 Carroll Canyon Road, Suite 210
                           San Diego, California 92131
                           Phone:  (858) 566-7010
                           Facsimile:  (858) 566-7015

                           and

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

         and/or to such other  person(s) and  address(es)  as either party shall
         have specified in writing to the other.

17.   GENDER.

      Whenever used herein,  the singular  number shall include the plural,  the
plural shall include the  singular,  and the use of any gender shall include all
genders.

18.   LAW TO GOVERN.

      This  Agreement  shall  be  governed  by and  construed  and  enforced  in
accordance with the law (other than the law governing conflict of law questions)
of California.

19.   COURTS.

      Any action to  enforce,  arising out of, or relating in any way to, any of
the  provisions of this Agreement may be brought and prosecuted in such court or
courts  located in San Diego  County,  California as is provided by law; and the
parties consent to the  jurisdiction of the court or courts located in San Diego
County,  California and to service of process by registered mail, return receipt
requested, or in any other manner provided by law.

20.   CONFIDENTIALITY.

      Notwithstanding  any provision herein to the contrary,  the parties hereto
agree that the existence and terms of this Agreement are  confidential  and that
if this  Agreement is terminated  pursuant to the preceding  section the parties
agree to return to one another any and all  financial,  technical  and  business
documents  delivered  to the  other  party or  parties  in  connection  with the
negotiation  and  execution of this  Agreement  and shall keep the terms of this

                                       11
<PAGE>

Agreement  and all  information  and documents  received from  Purchaser and the
contents  thereof  confidential  and not  utilize  nor reveal or  release  same;
provided,  however,  that  Purchaser  will be  required  to issue news  releases
regarding the execution and  consummation  of this  Agreement and file a Current
Report on Form 8-K with the  Securities and Exchange  Commission  respecting the
proposed  Merger  contemplated  hereby together with such other documents as are
required to maintain the currency of Purchaser's filings with the Securities and
Exchange Commission.

21.   POST-CLOSING MATTERS.

      Forthwith after the Closing, Seller, Controlling Stockholder,  Stockholder
and the  Purchaser  agree to use all their best  efforts to issue a news release
reporting the Closing.

                            [Signature page follows.]

                                       12
<PAGE>

         IN WITNESS WHEREOF, Seller, Controlling Stockholder,  Stockholder,  and
Purchaser  have caused this  Agreement to be executed as of the date first above
written.

                                    PURCHASER
                                    IPEX, Inc.

                                    By:  /s/ Milton Ault
                                        ----------------------------------------
                                    Name: Milton "Todd" Alt
                                    Title: Chief Executive Officer

                                    SELLER
                                         RGBChannel SRL

                                    By:  /s/ Gianfranco Bonomi
                                        ----------------------------------------
                                    Name:  /s/ Gianfranco Bonomi
                                          --------------------------------------
                                    Title:  President
                                           -------------------------------------

                                    CONTROLLING STOCKHOLDER

                                     /s/ Massimo Ballerini
                                    --------------------------------------
                                    Massimo Ballerini

                                    B Tech Ltd.

                                    By:   /s/ Massimo Ballerini
                                          --------------------------------------
                                    Name:  Massimo Ballerini
                                          --------------------------------------
                                    Title: Director
                                           -------------------------------------

                                    STOCKHOLDER

                                     /s/ Emanuele Boni
                                     -------------------------------------------
                                    Emanuele Boni

                                       1

<PAGE>

                                    EXHIBIT A
                                EMPLOYMENT LETTER

                                       2
<PAGE>

                                    EXHIBIT B
              COVENANT NOT TO COMPETE AND CONFIDENTIALITY AGREEMENT

                                       3
<PAGE>

                                  SCHEDULE 5.1
                             SELLER'S JURISDICTIONS
                                     [None]

                                       4
<PAGE>

                                  SCHEDULE 5.4
                               MATERIAL CONTRACTS

Material  Contracts  include a contract  with Emanuele Boni in which the Company
has agreed to pay him five  percent  (5%) of any  consideration  received in the
transaction  contemplated  by this  Agreement and an additional one percent (1%)
from The Ballerini Trust.

                                       5
<PAGE>

                                  SCHEDULE 5.5
                                   LITIGATION

                                     [None]

                                       6
<PAGE>

                                  SCHEDULE 5.6
                         SELLER'S INTELLECTUAL PROPERTY

A.)      Comparison with Photoshop 8.0
B.)      Luminaxys software version 3.5
C.)      Manual Luminaxys software version 3.5
D.)      Press review about the software
E.)      Source code Luminaxys in print version
F.)      Source code Luminaxys on CD
G.)      Demo of Tetrahedron formula
H.)      Tetrahedron formula in print version
I.)      Tetrahedron formula on CD
J.)      Description of formula in print version
K.)      Description of formula approach on CD
L.)      2001 notary deposit index
M.)      2002 notary deposit index

                                       7

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