EXHIBIT 10.17
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                               EXTENSION AGREEMENT

         THIS EXTENSION AGREEMENT (the "Agreement") is made and entered into
effective as of September 1, 2001, by and between YORKTOWN MANAGEMENT AND
FINANCIAL SERVICES, L.L.C. ( the "Lender"), and PALWEB CORPORATION and PLASTIC
PALLET PRODUCTION, INC. (the "Borrowers").

                                R E C I T A L S:

         A. Borrowers made, executed and delivered to Lender that certain
Promissory Note dated March 1, 2001, payable to the order of Lender in the
stated principal amount of $250,000.00 and maturing September 1, 2001 (the
"Initial Note").

         B. To secure payment of the Initial Note, Borrowers each made, executed
and delivered to Lender a certain Security Agreement dated March 1, 2001.

         C. Borrowers and Lender desire to extend the maturity of the Initial
Note to October 15, 2001, effective as of the date of this Agreement.

                              A G R E E M E N T S:

         NOW, THEREFORE, in consideration of the promises and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Borrowers and Lender agree as
follows:

         1. Extension of Maturity. Borrowers and Lender hereby agree to extend
the maturity of the Initial Note to October 15, 2001, effective as of the date
of this Agreement. All other terms and conditions set forth in the Initial Note
shall continue in full force and effect, and all Security Agreements, collateral
documents and other instruments securing payment of the Initial Note shall
continue in full force and effect as security for payment of the indebtedness
evidenced by said note, subject, however, to the prior and superior security
interest of Hildalgo Trading Company, L.C. in the Borrowers' assets as described
in those certain Security Agreements dated June 27, 2000, between Borrowers and
Hildalgo Trading Company, L.C., which assets secure the payment of all
liabilities of the Borrowers to Hildalgo.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed effective as of the date first above written.

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"Borrowers"                                   PALWEB CORPORATION

                                        By:   /s/ Paul A. Kruger
                                              ---------------------------------
                                              Paul A. Kruger, President

                                              PLASTIC PALLET PRODUCTION, INC.

                                        By:   /s/ Paul A. Kruger
                                              ---------------------------------
                                              Paul A. Kruger, President

"Lender"                                      YORKTOWN MANAGEMENT AND FINANCIAL
                                              SERVICES, L.L.C.

                                        By:   /s/ Warren F. Kruger
                                              ---------------------------------
                                              Warren F. Kruger, Manager















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