Document:

XLGeneration AG & AP Worldwide, INC
                      Exclusive Manufacturing License Agreement and
                          Non Exclusive Distribution Agreement
                                 entered into in Seoul,

Between                  APW Inc. a body corporate having its head office in
                         Seoul, South Korea, duly represented by Mr Lee J.H
                         (Cyrus). its CEO, duly authorized as he declares

                         (hereinafter << APW >>)

And                      XL Generation AG, a body corporate having its head
                         office in Zug, Switzerland, duly represented by DANIEL
                         COURTEAU duly authorised as he declares

                         (hereinafter << XLG >>)

               **************************************************

WHEREAS                  XLG holds the right and the Intellectual Property to
                         manufacture, sell, promote, and distribute XL Turf
                         products;

WHEREAS                  XL Turf products are covered and protected by several
                         patents, patents pending and intellectual property
                         around the world, including South Korea.

WHEREAS                  APW has represented that it is in a position to
                         manufacture and sell artificial turf sport surfaces,
                         namely for Football, in the Korean Market.

WHEREAS                  APW has also asked XLG to have the privilege and right
                         to sell artificial turf sport surfaces in the rest of
                         the world as long as XLTurf products are manufactured
                         in Korea.

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WHEREAS                  During June 22nd, 23rd and 24th, 2005 the parties have
                         had discussion regarding the possibility of entering
                         into a strategic venture primarily for the Korean
                         market, in respect of selling, promoting and
                         manufacturing of XLG's turf sport surfaces products
                         (<< Products >>).

WHEREAS                  XLG has offered to sell to APW the XL Turf Pad
                         Technology or XL Turf panels both developed by XLG and
                         also to set up an assembly line to convert or process
                         the raw material into XL Turf panels on behalf of APW.

WHEREAS                  The parties have concluded that there may be a way to
                         do business together to develop the Korean Market in
                         respect of the Products covered by the patents or the
                         intellectual property.

WHEREAS                  The parties wish to establish a long term << business
                         venture >> together in manufacturing and selling XL
                         Turf Products.

FOR THE ABOVE REASONS, THE PARTIES HAS DECIDED TO GO FURTHER IN THE
DETERMINATION OF THE COMMITTMENT OF EACH PARTY IN THE VENTURE AS FOLLOW:

THE PURPOSE OF THIS DOCUMENT IS TO SET OUT THE GENERAL TERMS AND CONDITIONS
WHICH SHALL GOVERN THE PARTIES IN RESPECT OF THE SETTING UP OF A MANUFACTURING
BUSINESS IN KOREA.

The Parties will continue to discuss i) the corporate organisation and the
shareholding of APW, ii) his capacity to develop the Korean market and namely
iii) to discuss with APW's financial or strategic partners in Korea in order to
improve the "collaboration" between the parties.

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The due diligence from XLG on APW's capacity to develop the Korean market is
necessary since XLG has not been able to do its own due diligence on APW as of
today.  However, it is the intention of XLG to continue to do business with APW,
within the framework described in this agreement if XLG is satisfied with its
standard due diligence.

The final terms and conditions may be changed or may be determined later after
the signature of this document depending on the needs of the Korean market and
the result deriving from the test or the Demo pitch that APW will run in the
Korean market and from the mutual due diligence that will be conducted by each
party on the other.

PREAMBLE

1.    XLG has informed APW that it is currently in the process of adapting its
      business orientation by allowing "tufting" businesses to manufacture "Turf
      Sport Surfaces products" ("Products"), under a License which would include
      specific terms and conditions to be developed by XLG.

2.    The intention of XLG is to have a maximum of 10 "Tufters" around the
      world.

3.    XLG has informed APW that it has not completed its new business plan and
      the method to be used in the future with strategic partners but that it is
      willing to do business with APW for the Korean Market.

4.    XLG has informed APW that XLG is also willing to grant the right to APW to
      sell and promote XL Turf Products, manufactured in Korea by APW, in the
      rest of the world, on a non exclusive basis, which means that APW shall
      not be the only distributor or vendor that may also has the right to sell
      XL Turf products around the world.

5.    APW has informed and represented XLG that it has experience in the sports
      marketing business and is able to raise the necessary funds and financial
      partners to set up a manufacturing business for the Korean market.

6.    APW acknowledges that the operational concept to be developed with APW may
      be different to the operational set-up for countries outside Korea. XLG
      will work with APW towards APW becoming the manufacturer and distributor
      for the Korean market. APW will also have a non exclusive right to sell
      and promote XLG Turf Products, manufactured in Korea, to the rest of the
      world according to the term and conditions provided for below.

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7.    For the exclusive purpose of this agreement, the understanding of the
      parties is divided into two (2) separates sections:

      o     Providing a small Demo Pitch, at discount price, for technical,
            marketing and on going "Demonstration pitch" test for the Korean
            market. However, if APW purchase, at regular price, XLPro panels for
            the initial or formal pitch instead of the Demo, APW will not be
            obliged to purchase a Demo pitch. However, if APW requires a Demo
            pitch, XLG will provide this at the price mentioned below.

      o     Signing a Manufacturing and Selling License Agreement for the
            purpose of facilitating and manufacturing of XL Turf Products using
            the XLG Pad Technology defined as "synthetic turf sport surfaces".

TERMS AND CONDITIONS OF THE AGREEMENTS

DEMO PITCH

8.    Within sixty days following the signature of this agreement, APW shall
      provide XLG with a purchase order for a DEMO pitch with a minimum of 1000
      square meters or one sizeable pitch of a size of approximately 5 000
      square meters, Schedule A attached hereto provides for other technical
      issues related of the XL Pro Product including the need in certain
      conditions to install a membrane on the soil before installing the panels.
      XLG shall have the right to modify the size of the panel and the "attached
      system" for each panel.

9.    The purchase price for the demo pitch is USD 42,000 ($42,00 m/2). The
      purchase price of the sizeable pitch is USD 47,000 ($47,00 m/2) and is
      payable as follows:

      o     Bank Transfer of 50% on purchase order and 50% when the Demo pitch
            or sizeable pitch leaves Montreal (ex Works, Montreal). XLG shall
            provide the bank coordinate in due time after the signature of this
            agreement or at another date as agreed between the parties.

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      o     The amount of USD 42,000 or USD 47,000 include the transportation
            from Canada to the borders of Korea fee but exclude any custom
            duties or taxes levied in Korea

      o     The prices mentioned above are only for one Demo Pitch and one
            sizeable pitch. Any other purchase order will be subject to the
            price list provided by XLG .

10.   Delivery date of the DEMO pitch will be 45 days after receipt of the
      purchase order. XLG does not take any responsibility whatsoever regarding
      the delay due to the transportation. The delivery date of the sizeable
      pitch will have to be determined between the parties.

11.   Demo pitch shall not be for resale but for demonstration purposes only.

12.   APW undertakes to do the full and proper maintenance of the Demo; to take
      proper care to ensure that the Demo is installed in a safe and appropriate
      place.

13.   APW undertakes to pay all the necessary fees (transportation, taxes,
      installation, removal etc...) related to the Demo in Korea.

14.   The demo pitch can only be sold by APW as per a written authorisation of
      XLG. The profit, if any, deriving from the sale of the Products shall be
      shared 50 - 50 between the parties. For the purpose of this agreement, the
      profit is defined as the selling price to the client of APW minus the cost
      of the Product incurred by APW. The cost shall included only the following
      items:

      o     The amount of USD 42,000

      o     The transportation within the borders of Korea to the first site
            only. All the other transportation costs are excluded.

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      o     Any taxes levied and custom duties payable to the Korean
            authorities.

15.   The purpose of the Demo Pitch will be

      o     To test the suitability of XL Turf replacing a soil pitch with
            particular regards to drainage.

      o     To test the product with potential buyers and to help analyse the
            Korean artificial surface market.

LICENSES GRANTED BY XLG TO APW

EXCLUSIVE LICENSE TO MANUFACTURE IN KOREA

16.   XLG hereby grants to APW or to any subsidiary that APW could set up in
      order to execute this Agreement (said subsidiary to be agreed by the
      parties) , which accepts, the exclusive license to manufacture XLTURF
      PRODUCTS using XLG's patented technology in Korea according to the term
      and conditions more fully described below (hereinafter the "Manufacturing
      License"). Exclusive License means that XLG will not grant to any other
      person the right to manufacture XL Turf Products within the Korean
      territory.

17.   The scope of the manufacturing license is the following:

      o     To manufacture XL Turf panels with the technology of XLG and to
            indicate on APW's product "XL TURF manufactured by APW" or any
            other words previously authorised by XLG in writing (hereinafter the
            "XL Turf Panel")

      o     To manufacture other turf sport surfaces using XLG's pad technology
            and to indicate in such a case "...manufactured by APW using XL pad
            technology" or any other words previously authorised by XLG in
            writing (hereinafter the "XL Pad").

      o     For the provision of supplying glue this was expected to be provided
            by XLG to APW, APW acknowledges that the formula of the glue is a
            commercial secret. Consequently, XLG can transfer this intellectual
            property to APW or can provide a glue manufacturer as supplier. The
            formula will be transferred, subject to signing a confidentiality
            agreement to maintain the secrecy of the formula. The final decision
            of XLG concerning the glue issue will be determined within 6 months
            of signing this agreement.

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NON EXCLUSIVE LICENSE TO SELL AND PROMOTE AROUND THE WORLD

18.   XLG hereby also grants to APW the non exclusive right to sell and promote
      XL Turf Products around the world as long as the Products are manufactured
      in Korea

19.   If APW does not tuft its own artificial turf carpet but "outsources" the
      tufting outside Korea, APW shall use only one tufter approved by
      XLG.(hereinafter "Designated Tufter")

20.   APW shall only sell XL Turf Pads with a turf surface supplied by the
      Designated Tufter.

21.   If XLG wants to appoint other tufters in Asia, in addition to APW, XLG
      shall consult with APW which will give his opinion and thoughts regarding
      the addition of one or several other tufters for the Asian market taking
      into account namely the marketing strategy of the potential tufter and its
      capacity to develop its territory. XLG shall seriously consider APW's
      points of view before making its decision.

22.   The obligation mentioned in paragraph 21 shall apply only from June 1st,
      2006 if APW has officially informed and confirmed (including the deposit
      of the amount of $1,000,000 USD) to XLG to set up a Manufacturing Unit. If
      APW informs and confirms (including the deposit of the amount of
      $1,000,000 USD) to XLG to set up a Manufacturing Unit before June 1st,
      2006, the obligation of XLG under section 21 shall apply from that date.

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LICENSE TO USE XL TURF TRADE MARK.

23.   XLG hereby also grants to APW the right to use the trade mark "XL Turf" in
      APW's marketing and promotion tool, the said trademark being the ownership
      of XLG only with the authorisation of XLG and using only and exclusively
      the color, graphic specific standards or other instructions that APW may
      received from XLG from time to time. All the promotional material of any
      nature shall be approved by XLG in order to assure that the marketing will
      be integrated within XLG marketing efforts throughout the world.

RIGHTS AND OBLIGATIONS OF APW AND XLG

24.   APW shall set up and organise a manufacturing business (hereinafter the
      "Manufacturing Unit" within the Korean borders or territory, principally
      for the Korean market but also, at APW's option, for selling and promoting
      (but not manufacturing) XL Turf Products, for the rest of the world, based
      on the specifications of XLG.

25.   The turf produced or bought by APW shall satisfy the criteria and
      technical specifications if the turf is to be used by APW to manufacture
      XL Turf Products.

26.   APW shall buy EPP pad from XLG or other authorized person by XLG if the
      EPP satisfies the criteria and technical specifications required by XLG.

27.   If APW produced the EPP pad, the EPP shall satisfy the criteria and
      technical specifications required by XLG.

28.   APW shall buy the glue and the Velcro (if Velcro is used in the
      manufacturing process) directly from XLG or other authorized person by XLG
      if those products satisfy the criteria and technical specification
      required by XLG.

29.   APW shall set up the Manufacturing Unit in accordance with the following
      terms and conditions:

      o     APW shall make an investment and finance any appropriate amount but
            not less than USD $1,000,000 or any other amount agreed upon by the
            parties to buy the necessary equipment and to install the production
            line for XL Turf Products in APW's premises.

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      o     APW shall bring and finance the necessary funds for the day to day
            operations of the Manufacturing Unit, namely to secure the fix and
            variable operational costs and proper overheads costs.

      o     The option granted to APW to accept the establishment and the
            setting up of the Manufacturing Unit through APW actual business or
            through a subsidiary shall terminate on May 31th, 2006. However, XLG
            may grant an extension of time if APW files a request with XLG but
            APW shall bring reasonable arguments and reasons to benefit from
            such an extension.

      o     After that date, XLG will be free to find another "tufter" or any
            other person in Korea for the purpose of setting up a Manufacturing
            unit in Korea.

      o     If APW does not accept the concept of implementing a Manufacturing
            Unit in Korea, it shall have the right to continue to sell XL Turf
            Product in the Korean market on a non exclusive basis.

      o     However, starting June 1st, 2006, if no extension of time has been
            granted or if APW has not decided to have a Manufacturing Unit in
            Korea, XLG will be free to negotiate with alternative partners for
            the Korean Market and XLG shall have the right, at its own
            discretion, to cancel and terminate all the rights granted to APW by
            this document including the right to sell and promote XL Turf
            Products.

      o     Upon APW calling the option by no later than May 31st, 2006, APW
            will deposit USD 1 million in a bank designated by XLG or under an
            escrow agreement no later than on the day of calling the option.
            However, APW may have the right to deposit this amount in an escrow
            account with a third party whereby the amount shall be used
            exclusively for the establishment and setting up of the
            Manufacturing Unit. However, the term and conditions relating to
            escrow agreement must be approved by XLG, namely regarding the
            withdrawal of the amount. APW shall provide with XLG the terms and
            conditions of the escrow agreement before exercising its option.

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      o     XLG may accept, at its own discretion, any other means for the
            payment of the $1,000,000 USD that APW could suggest such as a
            Letter of Credit (LC) the terms and conditions to the satisfaction
            of XLG.

      o     XLG undertakes to assist APW in establishing the Manufacturing Unit
            by the way of a technological transfer of its know-how as long as
            all the proper Confidential Agreement will be signed between the
            parties.

      o     The implementation of the Manufacturing Unit in designated premises
            by APW but approved by XLG, shall begin the implementation of the
            Manufacturing Unit immediately after having exercised its option and
            after having deposit the $1,000,000 USD. The implementation period
            may be extended by mutual consent.

      o     APW shall undertake to ensure the quality control of every product
            manufactured by the Manufacturing Unit of APW in the course of the
            execution of this Agreement. XLG will have a right to undertake a
            production audit to ensure continued high quality product output by
            the APW manufacturing unit.XLG shall approve the appointment or
            designation of the COO (chief operation officer) of the
            Manufacturing Unit, such approval shall not be unreasonably
            withheld.

30.   APW covenants and agrees that no matter where the XL Turf Pad Technology
      or the XL Turf panels will be manufactured and assembled, all the EPP PAD
      shall be purchased by APW exclusively from XLG or other designated person
      approved XLG.

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31.   Notwithstanding section 26, APW shall have the right to acquire EPP
      directly supplied by a Korean moulder or produced by APW itself but
      subject to XLG authorization that may not be unreasonably withheld. The
      authorization of XLG shall be subject to the payment by APW of a fee of
      $2.75 USD per square meter purchased from a Korean moulder or moulded by
      APW, in respect of the Products. This fee of $2,75 USD shall be in force
      until April 30th, 2007. The parties shall negotiate in good faith with
      regard to the fee payable starting May 1st of a given year but in no
      circumstances, the fee shall never be less that $2,75. If the parties
      cannot reach an agreement, the fee will be increased by the Retail Price
      Index for the preceding calendar year.

32.   If the rate of the fee mentioned above, has not be determined between the
      parties for two consecutive years, XLG shall have the right to appoint an
      independent arbitrator to fix the rate for a given year.

33.   If APW uses a Korean moulder or produces the EPP pursuant to section 31,
      XLG will appoint APW as the exclusive Designated Supplier of XLG for the
      Asian market as long as the price, quality and other incidental cost are
      competitive.

34.   Equally, APW shall be considered as a supplier of XLG Pads in all other
      markets as long as the price, quality and other incidental cost are
      competitive.

35.   No fee shall be payable by APW to XLG for EPP products sold by APW except
      with regard to the manufacturing of XL Turf Products (Pad and Panels).
      However, APW hereby undertakes not to sell EPP which would infringe other
      patents or patents pending rights granted to XLG

36.   No fee is payable if XLG buys EPP pads from APW.

37.   In the case of section 31, XLG shall have access to all the necessary
      accounting information or any other document in respect of the purchase or
      process of EPP.

      o     XLG shall have the right to audit and to have access to all
            necessary document during normal business hours in Korea. The right
            conferred to XLG shall not be exercising more than twice a year
            (calendar year).

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      o     XLG shall advice at least 5 business days in advance of its
            intention to go in Korea to review the documentation.

      o     The cost of the inspection shall be paid by XLG unless there is a
            difference of 10% between the amount paid and the amount payable
            under this agreement.

      o     The amount of fee or royalty shall be determined each month and
            payable before the expiration of 15 days following the expiration of
            a given month. The form and the content of any monthly report will
            be forwarded by XLG on a timely basis.

38.   APW, as partner in XLG world wide group shall participate in the
      development of the branding of XLG in the Korean market. Consequently, APW
      shall participate, from time to time, in XLG events and activities
      organised by XLG with the assistance of APW regarding the branding and
      marketing in the Korean Market. The budget, to be allocated between XLG
      and APW, for each event shall be discussed between the parties on a case
      by case basis.

39.   XLG shall provide APW with all the reasonable assistance including all its
      patents and intellectual property rights of the products for protecting
      APW in respect of the Korean and in the rest of the world, at XLG's
      discretion, to increase the market share of APW in the artificial turf and
      sport surface in the said market.

40.   Except if section 31 applies, XLG shall provide and supply APW with the
      EPP PADS and its price in order to satisfy the APW purchase order. It is
      possible that XLG will require APW, at the beginning of a given year, with
      a "pro forma" estimate of its expected number of panels or pads to be
      purchased for the year to come in order for XLG to adjust its operation,
      set up strategy for that year in the context of its world wide demand of
      EPP.

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41.   The price of the panel or pad may change from time to time but it will be
      effective only 60 days after APW will have been informed. However, the
      change of the price will not affect the Purchaser Order already filed with
      XLG no matter the delivery date. Schedule B is attached as the current
      price list of XLG for the EPP Panels and Pads.

MINIMUM QUOTA

42.   APW hereby undertakes to 100,000 square meters as the minimum sales of
      XLTurf Products that APW will manufactured (Pads or Panels) before
      December 31st, 2007, on which the fee of $2,75 USD and the Royalty A, B or
      C as the case may be, shall be payable.

43.   If the Korean BTL Program has been awarded to APW, APW undertakes to
      review the minimum quota for the period ending December 31st, 2007.

ROYALTIES

44.   In addition of the Royalty payable under section 30, APW shall pay a
      royalty on each sale of XL Turf Panels and XL Turf Pads in accordance with
      the following rules:

      o     A base royalty of 2% of all Gross Sales of XL Turf Products
            including the provisions of products using XLG Pad or Panels
            Technology for the branding of XLG used by APW (hereinafter and
            above as Royalty A).

      o     An additional royalty shall varying from 3% to 1% depending of the
            annual volume of Gross Sales of APW on all the XL Turf Pads sold
            including the provisions of Products using XLG Pad Technology
            (hereinafter and above as Royalty B). If XL Turf Pads are sold as
            part of a product sold (Pads and Turf) by APW to its customers, the
            manufacturing process being not be needed in this case.

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      o     An additional royalty shall vary from 5% to 3% depending of the
            annual volume of Gross Sales of APW on all the XL Turf Panel System
            sold including the provisions of products using XLG Pad Technology
            (hereinafter and above as Royalty C). If XL Turf Pads are sold as
            part of XL Turf Panels System, APW shall have the obligation to use
            the Manufacturing Unit to convert and assemble the components.

      o     The volume of Gross Sales and the royalty rate mentioned above shall
            be agreed upon by the parties within 30 days of the signature of
            this agreement.

      o     The royalties shall be payable on a quarterly basis and the amount
            shall be paid on or before the 15th day after each quarter;

            XLG will not be responsible for uncollected payment or unpaid amount
            owed to APW by its own client. The Royalty is payable no matter the
            term of payment and no matter if APW is paid or not by its client.

      o     XLG shall have the right to audit the financial and accounting book
            of APW for the purpose of the determination of its annual Gross
            Sales as defined in these clauses;

      o     This right of audit may be exercised twice a year and XLG shall
            provide APW with a notice period of no less than 5 working days
            prior to its arrival in Korea. The audit shall be held during normal
            business hours of normal working days in Korea.

      o     The cost of the audit shall be paid by XLG except if there is a
            difference or discrepancy of 10% between the amount of royalty paid
            and the amount calculated.

45.   No royalty shall be payable by APW to XLG for EPP products sold by APW
      except with regard to the manufacturing of XL Turf Products. However, APW
      hereby undertakes not to sell EPP which would infringe other patents or
      patents pending rights granted to XLG.

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ROYALTY WORLDWIDE PAINTBALL

46.   XLG has informed APW that XLG has signed an agreement with Mr Guillaume Ge
      regarding the worldwide paintball sport. XLG the official supplier turf
      company endorsed by the Worldwide Federation of Paintball. XLG has
      undertaken to pay a royalty of 7 euros per sq. meter to Guillaume Ge for
      each square meter of XLTurf Products sold around the World.

47.   APW hereby confirms that if APW sells XLTurf Products for Paintball, APW
      shall undertake to pay the said royalty.

SHAREHOLDING IN APW

48.   If the Manufacturing Unit is established by APW, XLG shall have an
      interest participation as common shareholder in the Capital Stock of APW.
      The level of participation in the capital stock of APW will be determined
      by using of a guideline the % mentioned in section 49.

49.   If the Manufacturing Unit is set up through a subsidiary of APW, XLG shall
      have an interest participation as common shareholder of 15% in the Capital
      Stock of APW.

50.   XLG requires from APW prior to entering into a Shareholders Agreement or
      any other agreement only with regard to the following items that XLG will
      have the right to:

      o     Appoint one person on the board of directors.

      o     Audit the quality control of any XLTurf products.

      o     If the Manufacturing Unit is carried on through a subsidiary, the
            right and privilege of XLG to exchange its shares of the subsidiary
            of APW for APW shares only if APW is registered under a Stock
            Exchange where its shares would be quoted and publicly traded.

      o     Terminate the Manufacturing License and right to sell if APW sells,
            transfers, assign its right under this agreement to third party
            without XLG's consent or if the control of APW or the subsidiary
            change.

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51.   The web site of XLG will be modified in order to include a link with APW
      web site.

52.   The web site of APW will be modified in order to include a link with XLG
      web site.

53.   The web site of APW, in respect of XL Turf Products shall be approved by
      XLG.

54.   APW shall provide XLG with pictures of all installation of XL Turf
      Products including Name and contact details of all APW clients and
      customers which have purchased XL Products.

55.   In addition to the commitment of APW to participate in the increase of the
      branding of XLG throughout the world by action in the Korean market, APW
      will have to participate with XLG in the Korean market in respect to the
      SPORTS FOR PEACE AND DEVELOPMENT PROGRAM that XLG will implement in the
      near future, pursuant to an agreement signed on July 25th, 2005 with
      CISRI-ISP an official Observer Mission to the UN and the United Nations
      System.

56.   XLG undertakes to participate in the Korean Government BTL program by
      devoting reasonable assistance to APW. In no circumstances, XLG should
      have the obligation to disburse a minimum sum of money.

57.   This Agreement between APW and XLG shall be governed by the legislation in
      force and applicable in Switzerland. Any dispute regarding the
      interpretation and execution of the Agreement shall be first dealt with
      between the parties in good faith. If no settlement is achieved, the
      parties shall submit their dispute to an arbitrator chosen by the parties
      or by a Swiss Judge and the audition and trial shall be held in
      Switzerland and the arbitrator shall use the international procedure rules
      edicted by the INTERNATIONAL CHAMBER OF ARBITRATION.

TERMINATION CLAUSE

58.   In addition to any provision, this Agreement shall terminate if in the
      event of a material breach of contract or if royalty payment (including
      the fee in respect of EPP) are withheld without prior agreement with XLG
      and not remedied for a period of 30 days after receiving written notice to
      this effect.

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59.   This Agreement shall also terminate upon the bankruptcy of APW.

60.   This Agreement shall also terminate if the result of XLG's audit is
      unsatisfactory in respect of the quality requirement unless APW remedies
      to its default within 60 days following a written notice of the conclusion
      of the quality audit.

61.   Notwithstanding section 60, APW shall have the right to discuss the
      findings of the preliminary audit and XLG shall act in good faith in the
      discussion of the audit.

62.   In case of termination, XLG shall have the right, at its own discretion,
      to buy the equipment and machinery from APW at its book value.

IT IS THE UNDERSTANDING OF THE PARTIES THAT THIS DOCUMENTS CONTAINS THE GENERAL
TERMS AND CONDITIONS OF THE MANUFACTURING LICENSE AND THAT OTHER CONDITIONS MAY
BE ADDED IN THE COURSE OF THE DISCUSSION BETWEEN THE PARTIES. IN WITHNESSTHEREOF
THE PARTIES HAS SIGNED AT THE DATE AND LOCATION MENTIONED ABOVE

XL GENERATION AG

/s/ Daniel Courteau
--------------------------------------
Daniel Courteau, vice president, legal        Date  9/23/2005
AP Worldwide, INC

/s/ J.H. Lee
--------------------------------------
Lee, J.H (Cyrus) CEO                          Date  9/23/2005

                                       17DEBENTURE AGREEMENT

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND ARE BEING OFFERED AND SOLD
IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS. THE
SECURITIES ARE SUBJECT TO RESTRICTIONS OF TRANSFERABILITY AND RESALE AND MAY NOT
BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SUCH LAWS PURSUANT TO
REGISTRATION OR AN EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY OTHER REGULATORY
AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE
MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS.
ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

FACE AMOUNT                                           $220,000
PRICE                                                 $220,000
DEBENTURE NUMBER                                      December - 2005-101
ISSUANCE DATE                                         December 23, 2005
MATURITY DATE                                         December 22, 2010

      FOR VALUE RECEIVED, Walker Financial Corp. a Delaware corporation (the
"Company"), hereby promises to pay DUTCHESS PRIVATE EQUITIES FUND, II, LP
("Holder") by December 22, 2010 (the "Maturity Date"), the principal amount of
Two Hundred and Twenty Thousand Dollars ($220,000) U.S., and to pay interest and
redemption on the principal amount hereof, and any accrued penalties accrued, in
such amounts, at such times and on such terms and conditions as are specified
herein.

      The Debenture is subject to automatic conversion at the end of five (5)
years from the date of issuance at which time the Debenture outstanding will be
automatically converted based upon the formula set forth in Section 3.2 (c).

Article 1 Interest

      The Company shall pay twelve percent (12%) annual coupon on the unpaid
Face Amount of this Debenture (the "Debenture") at such times and in such
amounts as outlined in this section. The Company will make mandatory prepaid
payments, in advance, on the interest ("Interest Payment"), with the minimum
Interest Payments outlined in Exhibit B for the first one (1) month, and herein
incorporate by reference in the amount of two thousand one hundred and eighty
dollars and twenty-four cents ($2,180.24) per month for the first one (1) month
following Issuance Date. The first Interest Payment is due within three days of
funds being disbursed to the Company (a "Closing:").

      Any monies paid to the Holder in excess of the interest due when paid
shall be credited toward the Redemption of the Face Amount of the Debenture.

                                       1
<PAGE>

Article 2 Method of Payment

      Section 2.1 Prior to the U.S. Securities and Exchange Commission ("SEC")
declaring the registration statement for the shares underlying the Debenture
("Registration Statement") effective ("Effective Date").

            Amortizing payments will be made by the Company in satisfaction of
this Debenture (each a "Payment," and collectively, the "Payments") shall be
made monthly on the first day of each business day of each month while there is
an outstanding balance on the Debenture, to the Holder, in the amounts ("Payment
Amount" and collectively, the "Payment Amounts") outlined below on the following
schedule:

      Payment for Month 1 (due within three (3) days
          of the Issuance Date)                                 $2,180.24
      Payment for Month 2 and each month thereafter            $56,315.03

            Notwithstanding any provision to the contrary in this Debenture, the
Company may pay in full to the Holder the Face Amount, or any balance remaining
thereof, in readily available funds at any time and from time to time without
penalty.

            The minimum Payments are outlined on Exhibit B, attached hereto and
incorporate by reference.

            The Holder agrees to extend the Payment for month 2 until the 15th
of February, 2006 if the Registration Statement is not declared effective by the
14th of February, 2006. Payments will resume on the first of each month
thereafter.

      Section 2.2 Subsequent to the Effective Date.

      The Holder, at its sole option, shall be entitled to either a) request a
Payment from the Company in the amounts set forth in the table in Section 2.1
above; or, b) the Holder may elect to convert a portion of the Debenture
pursuant to Article 3 below in an amount equal to or greater than the Payment
Amount. In the event the Holder is unable to convert that portion of the
debenture equal to the Payment Amount during a calendar month, the Company shall
make a payment in an amount equal to the difference between the amount converted
by the Holder and the Payment Amount due for that month.

      Nothing contained in this Article 2 shall limit the amount the Holder can
elect to convert during a calendar month except as defined in Section 3.2 (i)

      All Payments made in this Article 2, shall be applied toward the
Redemption Amount as outlined in Article 14, herein.

      Section 2.3 Prepayment

                                       2
<PAGE>

      The Company may make additional payments toward Redemption ("Prepayment")
without any penalties. After Closing, the Company must make a Prepayment to the
Holder when the aggregate amount of financing received by the Company is in
excess of one dollar ($1.00), excluding any monies raised from the Equity Line
of Credit. ("Threshold Amount"). The Threshold Amount shall also pertain to any
assets sold, transferred or disposed of by the Company. The Company agrees to
pay one hundred percent (100%) of any proceeds raised by the Company over the
Threshold Amount toward the Prepayment of the Debenture with Interest until the
Face Amount is paid in full. The Prepayments shall be made to the Holder upon
the Company's receipt of the financing. Failure to do so will result in an Event
of Default.

Article 3 Conversion

      Section 3.1 Conversion Privilege

            (a) The Holder of this Debenture shall have the right to convert any
and all amounts owing under this Debenture into shares of Common Stock at any
time following the Closing Date and which is before the close of business on the
Maturity Date, except as set forth in Section 3.2(c) below. The number of shares
of Common Stock issuable upon the conversion of this Debenture is determined
pursuant to Section 3.2 and rounding the result to the nearest whole share.

            (b) This Debenture may not be converted, whether in whole or in
part, except in accordance with this Article 3.

            (c) In the event all or any portion of this Debenture remains
outstanding on the Maturity Date, the unconverted portion of such Debenture will
automatically be converted into shares of Common Stock on such date in the
manner set forth in Section 3.2.

Section 3.2 Conversion Procedure.

            (a) Conversion Procedures. The unpaid Face Amount of and accrued
interest on this Debenture may be converted, in whole or in part, any time
following the Closing Date. Such conversion shall be effectuated by sending to
the Company a facsimile or via electronic mail the signed Notice of Conversion
which evidences Holder's intention to convert the Debenture indicated. The date
on which the Notice of Conversion is delivered ("Conversion Date") shall be
deemed to be the date on which the Holder has delivered to the Company a
facsimile of the signed Notice of Conversion. Notwithstanding the above, any
Notice of Conversion received by 5:00 P.M. EST, shall be deemed to have been
received that business day, with receipt being via a confirmation of time of
facsimile of the Holder.

            (b) Common Stock to be Issued. Upon the conversion of any Debenture
and upon receipt by the Company of a facsimile of Holder's signed Notice of
Conversion the Company shall instruct its transfer agent to issue stock
certificates without restrictive legend (other than a legend referring to the
registration statement and prospectus delivery requirements) or stop transfer
instructions, if at that time the Registration Statement has been declared
effective (or with proper restrictive legend if the Registration Statement has
not as yet been declared effective), in such denominations to be specified at
conversion representing the number of shares of Common Stock issuable upon such
conversion, as applicable. The Company shall act as Registrar and shall maintain
an appropriate ledger containing the necessary information with respect to each
Debenture. The Company warrants that no instructions, other than these
instructions, have been given or will be given to the transfer agent and that
the Common Stock shall otherwise be freely resold, except as may be set forth
herein.

                                       3
<PAGE>

            (c) Conversion Rate. Holder is entitled to convert the unpaid Face
Amount of this Debenture, plus accrued interest, any time following the Closing
Date, at the lesser of (i) the lowest closing bid price of the Common Stock
between December 12, 2005 and the date of filing the registration statement
covering resale of the shares underlying this Debenture; or (ii) fifteen cents
($.15). ("Fixed Conversion Price"), each being referred to as the "Conversion
Price". No fractional shares or scrip representing fractions of shares will be
issued on conversion, but the number of shares issuable shall be rounded up, as
the case may be, to the nearest whole share. The Holder shall retain all rights
of conversions during any partial trading days.

            (d) Nothing contained in this Debenture shall be deemed to establish
or require the payment of interest to the Holder at a rate in excess of the
maximum rate permitted by governing law. In the event that the rate of interest
required to be paid exceeds the maximum rate permitted by governing law, the
rate of interest required to be paid thereunder shall be automatically reduced
to the maximum rate permitted under the governing law and such excess shall be
returned with reasonable promptness by the Holder to the Company.

            (e) It shall be the Company's responsibility to take all necessary
actions and to bear all such costs to issue the Common Stock as provided herein,
including the responsibility and cost for delivery of an opinion letter to the
transfer agent, if so required. The person in whose name the certificate of
Common Stock is to be registered shall be treated as a shareholder of record on
and after the conversion date. Upon surrender of any Debentures that are to be
converted in part, the Company shall issue to the Holder a new Debenture equal
to the unconverted amount, if so requested in writing by Holder.

            (f) Within four (4) business days after receipt of the documentation
referred to above in Section 3.2(a), the Company shall deliver a certificate, in
accordance with Section 3.2(c) for the number of shares of Common Stock issuable
upon the conversion. In the event the Company does not make delivery of the
Common Stock, as instructed by Holder, within four (4) business days after the
Conversion Date, then in such event the Company shall pay to Holder three
percent (3%) per day in cash, of the dollar value of the Debentures being
converted, compounded daily, per each day after the fourth (4th) business day
following the Conversion Date that the Common Stock is not delivered to the
Purchaser, as liquidated damages.

            The Company acknowledges that its failure to deliver the Common
Stock within four (4) business days after the Conversion Date will cause the
Holder to suffer damages in an amount that will be difficult to ascertain.
Accordingly, the parties agree that it is appropriate to include in this
Debenture a provision for liquidated damages. The parties acknowledge and agree
that the liquidated damages provision set forth in this section represents the
parties' good faith effort to quantify such damages and, as such, agree that the
form and amount of such liquidated damages are reasonable and will not
constitute a penalty. The payment of liquidated damages shall not relieve the
Company from its obligations to deliver the Common Stock pursuant to the terms
of this Debenture.

                                       4
<PAGE>

            To the extent that the failure of the Company to issue the Common
Stock pursuant to this Section 3.2(f) is due to the unavailability of authorized
but unissued shares of Common Stock, the provisions of this Section 3.2(f) shall
not apply but instead the provisions of Section 3.2(m) shall apply.

            The Company shall make any payments incurred under this Section
3.2(f) in immediately available funds within four (4) business days from the
date the Common Stock is fully delivered. Nothing herein shall limit a Holder's
right to pursue actual damages or cancel the conversion for the Company's
failure to issue and deliver Common Stock to the Holder within three (3)
business days after the Conversion Date.

            The Company shall at all times reserve (or make alternative written
arrangements for reservation or contribution of shares) and have available all
Common Stock necessary to meet conversion of the Debentures by all Holders of
the entire amount of Debentures then outstanding. If, at any time Holder submits
a Notice of Conversion and the Company does not have sufficient authorized but
unissued shares of Common Stock (or alternative shares of Common Stock as may be
contributed by Stockholders) available to effect, in full, a conversion of the
Debentures (a "Conversion Default", the date of such default being referred to
herein as the "Conversion Default Date"), the Company shall issue to the Holder
all of the shares of Common Stock which are available, and the Notice of
Conversion as to any Debentures requested to be converted but not converted (the
"Unconverted Debentures"), may be deemed null and void upon written notice sent
by the Holder to the Company. The Company shall provide notice of such
Conversion Default ("Notice of Conversion Default") to all existing Holders of
outstanding Debentures, by facsimile, within three (3) business days of such
default (with the original delivered by overnight or two day courier), and the
Holder shall give notice to the Company by facsimile within five business days
of receipt of the Notice of Conversion Default (with the original delivered by
overnight or two day courier) of its election to either nullify or confirm the
Notice of Conversion.

      The Company agrees to pay to Holder of outstanding Debenture payments for
a Conversion Default ("Conversion Default Payments") in the amount of (N/365) x
(.24) x the initial issuance price of the outstanding and/or tendered but not
converted Debentures held by each Holder where N = the number of days from the
Conversion Default Date to the date (the "Authorization Date") that the Company
authorizes a sufficient number of shares of Common Stock to effect conversion of
all remaining Debentures. The Company shall send notice ("Authorization Notice")
to Holder of outstanding Debenture that additional shares of Common Stock have
been authorized; stating the Authorization Date and the amount of Holder's
accrued Conversion Default Payments. The accrued Conversion Default shall be
paid in cash or shall be convertible into Common Stock at the Conversion Rate,
upon written notice sent by the Holder to the Company, which Conversion Default
shall be payable as follows: (i) in the event Holder elects to take such payment
in cash, cash payments shall be made to such Holder of outstanding Debentures by
the fifth (5th) day of the following calendar month, or (ii) in the event Holder
elects to take such payment in stock, the Holder may convert such payment amount
into Common Stock at the conversion rate set forth in Section 3.2(c) at any time
after the fifth (5th) day of the calendar month following the month in which the
Authorization Notice was received, until the expiration of the mandatory three
(3) year conversion period.

                                       5
<PAGE>

      The Company acknowledges that its failure to maintain a sufficient number
of authorized but unissued shares of Common Stock to effect in full a conversion
of the Debenture will cause the Holder to suffer damages in an amount that will
be difficult to ascertain. Accordingly, the parties agree that it is appropriate
to include in this Agreement a provision for liquidated damages. The parties
acknowledge and agree that the liquidated damages provision set forth in this
section represents the parties' good faith effort to quantify such damages and,
as such, agree that the form and amount of such liquidated damages are
reasonable and will not constitute a penalty. The payment of liquidated damages
shall not relieve the Company from its obligations to deliver the Common Stock
pursuant to the terms of this Debenture. Nothing herein shall limit the Holder's
right to pursue actual damages for the Company's failure to maintain a
sufficient number of authorized shares of Common Stock.

      If, by the fourth (4th) business day after the Conversion Date of any
portion of the Debenture to be converted (the "Delivery Date"), the transfer
agent fails for any reason to deliver the Common Stock upon conversion by the
Holder and after such Delivery Date the Holder purchases, in an open market
transaction or otherwise, shares of Common Stock (the "Covering Shares") solely
in order to make delivery in satisfaction of a sale of Common Stock by the
Holder (the "Sold Shares"), which delivery such Holder anticipated to make using
the Common Stock issuable upon conversion (a "Buy-In"), the Company shall pay to
the Holder, in addition to any other amounts due to Holder pursuant to this
Debenture, and not in lieu thereof, the Buy-In Adjustment Amount (as defined
below). The "Buy In Adjustment Amount" is the amount equal to the excess, if
any, of (x) the Holder's total purchase price (including brokerage commissions,
if any) for the Covering Shares over (y) the net proceeds (after brokerage
commissions, if any) received by the Holder from the sale of the Sold Shares.
The Company shall pay the Buy-In Adjustment Amount to the Holder in immediately
available funds within three (3) business days of written demand by the Holder.
By way of illustration and not in limitation of the foregoing, if the Holder
purchases shares of Common Stock having a total purchase price (including
brokerage commissions) of $11,000 to cover a Buy-In with respect to shares of
Common Stock it sold for net proceeds of $10,000, the Buy-In Adjustment Amount
which the Company will be required to pay to the Holder will be $1,000.

            (g) Prospectus and Other Documents. The Company shall furnish to
Holder such number of prospectuses and other documents incidental to the
registration of the shares of Common Stock underlying the Debentures, including
any amendment of or supplements thereto. Any filings submitted via EDGAR will
constitute fulfillment.

                                       6
<PAGE>

            (h) Limitation on Issuance of Shares. If the Company's Common Stock
becomes listed on the Nasdaq SmallCap Market after the issuance of the
Debenture, the Company may be limited in the number of shares of Common Stock it
may issue by virtue of (X) the number of authorized shares or (Y) the applicable
rules and regulations of the principal securities market on which the Common
Stock is listed or traded, including, but not necessarily limited to, NASDAQ
Rule 4310(c)(25)(H)(i) or Rule 4460(i)(1), as may be applicable (collectively,
the "Cap Regulations"). Without limiting the other provisions thereof, (i) the
Company will take all steps reasonably necessary to be in a position to issue
shares of Common Stock on conversion of the Debentures without violating the Cap
Regulations and (ii) if, despite taking such steps, the Company still cannot
issue such shares of Common Stock without violating the Cap Regulations, the
holder of a Debenture which cannot be converted as result of the Cap Regulations
(each such Debenture, an "Unconverted Debenture") shall have the right to elect
either of the following remedies:

                  (x) if permitted by the Cap Regulations, require the Company
      to issue shares of Common Stock in accordance with such holder's Notice of
      Conversion at a conversion purchase price equal to the average of the
      closing bid price per share of Common Stock for any five (5) consecutive
      Trading Days (subject to certain equitable adjustments for certain events
      occurring during such period) during the sixty (60) Trading Days
      immediately preceding the Conversion Date; or

                  (y) require the Company to redeem each Unconverted Debenture
      for an amount (the "Redemption Amount"), payable in cash, equal to the sum
      of (i) one hundred thirty-three percent (133%) of the principal of an
      Unconverted Debenture, plus (ii) any accrued but unpaid interest thereon
      through and including the date (the "Redemption Date") on which the
      Redemption Amount is paid to the holder.

      A holder of an Unconverted Debenture may elect one of the above remedies
with respect to a portion of such Unconverted Debenture and the other remedy
with respect to other portions of the Unconverted Debenture. The Debenture shall
contain provisions substantially consistent with the above terms, with such
additional provisions as may be consented to by the Holder. The provisions of
this section are not intended to limit the scope of the provisions otherwise
included in the Debenture.

            (i) Limitation on Amount of Conversion and Ownership.
Notwithstanding anything to the contrary in this Debenture, in no event shall
the Holder be entitled to convert that amount of Debenture, and in no event
shall the Company permit that amount of conversion, into that number of shares,
which when added to the sum of the number of shares of Common Stock beneficially
owned, (as such term is defined under Section 13(d) and Rule 13d-3 of the
Securities Exchange Act of 1934, as may be amended, (the "1934 Act")), by the
Holder, would exceed 4.99% of the number of shares of Common Stock outstanding
on the Conversion Date, as determined in accordance with Rule 13d-1(j) of the
1934 Act. In the event that the number of shares of Common Stock outstanding as
determined in accordance with Section 13(d) of the 1934 Act is different on any
Conversion Date than it was on the Closing Date, then the number of shares of
Common Stock outstanding on such Conversion Date shall govern for purposes of
determining whether the Holder would be acquiring beneficial ownership of more
than 4.99% of the number of shares of Common Stock outstanding on such
Conversion Date.

                                       7
<PAGE>

            (j) Legend. The Holder acknowledges that each certificate
representing the Debentures, and the Common Stock unless registered pursuant to
the Registration Rights Agreement, shall be stamped or otherwise imprinted with
a legend substantially in the following form:

THE SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE OFFERED OR SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT (i) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR
RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) IF AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

      (k) Prior to conversion of the Debenture, if at any time the conversion of
all the Debentures and exercise of all the Warrants outstanding would result in
an insufficient number of authorized shares of Common Stock being available to
cover all the conversions, then in such event, the Company will move to call and
hold a shareholder's meeting or have shareholder action with written consent of
the proper number of shareholders within forty five (45) days of such event, or
such greater period of time if statutorily required or reasonably necessary as
regards standard brokerage house and/or SEC requirements and/or procedures, for
the purpose of authorizing additional shares of Common Stock to facilitate the
conversions. In such an event management of the Company shall recommend to all
shareholders to vote their shares in favor of increasing the authorized number
of shares of Common Stock. Management of the Company shall vote all of its
shares of Common Stock in favor of increasing the number of shares of authorized
Common Stock. The Company represents and warrants that under no circumstances
will it deny or prevent Holder's right to convert the Debentures as permitted
under the terms of this Subscription Agreement or the Registration Rights
Agreement. Nothing in this Section shall limit the obligation of the Company to
make the payments set forth in Section 3.2(g). The investor, at his option, may
request the company to authorize and issue additional shares if the investor
feels it is necessary for conversions in the future. In the event the Company's
shareholder's meeting does not result in the necessary authorization, the
Company shall redeem the outstanding Debentures for an amount equal to (x) the
sum of the principal of the outstanding Debentures plus accrued interest thereon
multiplied by (y) 133%.

      Section 3.3 Fractional Shares. The Company shall not issue fractional
shares of Common Stock, or scrip representing fractions of such shares, upon the
conversion of this Debenture. Instead, the Company shall round up or down, as
the case may be, to the nearest whole share.

                                       8
<PAGE>

      Section 3.4 Taxes on Conversion. The Company shall pay any documentary,
stamp or similar issue or transfer tax due on the issue of shares of Common
Stock upon the conversion of this Debenture. However, the Holder shall pay any
such tax which is due because the shares are issued in a name other than its
name.

      Section 3.5 Company to Reserve Stock. The Company shall reserve the number
of shares of Common Stock required pursuant to and upon the terms set forth in
the Subscription Agreement to permit the conversion of this Debenture. All
shares of Common Stock which may be issued upon the conversion hereof shall upon
issuance be validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issuance thereof.

      Section 3.6 Restrictions on Sale. This Debenture has not been registered
under the Securities Act of 1933, as amended, (the "Act") and is being issued
under Section 4(2) of the Act and Rule 506 of Regulation D promulgated under the
Act. This Debenture and the Common Stock issuable upon the conversion thereof
may only be sold pursuant to registration under or an exemption from the Act.

Article 4 Mergers

      The Company shall not consolidate or merge into, or transfer any or all of
its assets to, any person, unless such person assumes in writing the obligations
of the Company under this Debenture and immediately after such transaction no
Event of Default exists. Any reference herein to the Company shall refer to such
surviving or transferee corporation and the obligations of the Company shall
terminate upon such written assumption.

Article 5 Security

      This Debenture is secured by a Security Agreement (the "Security
Agreement") of even date herewith between the Company and the Holder.

Article 6 Defaults and Remedies

      Section 6.1 Events of Default. An "Event of Default" occurs if (a) the
Company does not make the Payment of the principal of this Debenture by
conversion into Common Stock within five (5) business days of the Maturity Date,
upon redemption or otherwise, (b) the Company does not make a Payment, other
than a payment of principal, for a period of three (3) business days thereafter,
(c) any of the Company's representations or warranties contained in the
Subscription Agreement or this Debenture were false when made or the Company
fails to comply with any of its other agreements in the Transaction Documents
(as defined in Article 16 below) and such failure continues for a period of five
(5) business days after notice thereof, (d) the Company pursuant to or within
the meaning of any Bankruptcy Law (as hereinafter defined): (i) commences a
voluntary case; (ii) consents to the entry of an order for relief against it in
an involuntary case; (iii) consents to the appointment of a Custodian (as
hereinafter defined) of it or for all or substantially all of its property or
(iv) makes a general assignment for the benefit of its creditors or (v) a court
of competent jurisdiction enters an order or decree under any Bankruptcy Law
that: (A) is for relief against the Company in an involuntary case; (B) appoints
a Custodian of the Company or for all or substantially all of its property or
(C) orders the liquidation of the Company, and the order or decree remains
unstayed and in effect for sixty (60) calendar days, (e) the Company's Common
Stock is suspended or no longer listed on any recognized exchange including
electronic over-the-counter bulletin board for in excess of three (3)
consecutive Trading Days (e) the Company violates any terms and conditions of
the Registration Rights Agreement (f) the Registration Statement underlying the
Debenture is not declared effective by the SEC within twelve (12) months of the
Issuance Date.

                                       9
<PAGE>

As used in this Section 6.1, the term "Bankruptcy Law" means Title 11 of the
United States Code or any similar federal or state law for the relief of
debtors. The term "Custodian" means any receiver, trustee, assignee, liquidator
or similar official under any Bankruptcy Law. A default under clause (c) or (e)
above is not an Event of Default until the holders of at least one hundred
percent (100%) of the aggregate principal amount of the Debentures outstanding
notify the Company of such default and the Company does not cure it within five
(5) business days after the receipt of such notice, unless the Company commences
to cure such default within such period, which must specify the default, demand
that it be remedied and state that it is a "Notice of Default". Prior to the
expiration of the time for curing a default as set forth in the preceding
sentence, the holders of a majority in aggregate principal amount of the
Debentures at the time outstanding (exclusive of Debentures then owned by the
Company or any subsidiary or affiliate) may, on behalf of the holders of all of
the Debentures, waive any past Event of Default hereunder (or any past event
which, with the lapse of time or notice and lapse of time designated in
subsection (a), would constitute an Event of Default hereunder) and its
consequences, except a default in the payment of the principal of or interest on
any of the Debentures. In the case of any such waiver, such default or Event of
Default shall be deemed to have been cured for every purpose of this Debenture
and the Company and the holders of the Debentures shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon.

            In the Event of Default and provided the Debentures have not been
paid in full, the Holder may elect to secure a portion of the Company's assets
not to exceed 200% of the Face Amount of the Note, in Pledged Collateral (as
defined in the Security Agreement). The Holder may also elect to garnishee
Revenue from the Company in an amount that will repay the Holder on the
schedules outlined in this Agreement.

      In the Event of Default, as outlined in this Agreement, the Holder can
exercise its right to increase the Face Amount of the Debenture by ten percent
(10%) as an initial penalty and for each Event of Default under this Agreement.
In addition, the Holder may elect to increase the Face Amount by two and
one-half percent (2.5%) per month (pro-rata for partial periods) paid as a
penalty for liquated damages ("Liquidated Damages"). The Liquated Damages will
be compounded daily. It is the intention and acknowledgement of both parties
that the Liquidated Damages not be deemed as interest.

                                       10
<PAGE>

      In the event of Default, specifically to Section 6.1 (f), the Holder may
elect to switch the Conversion Price of the Debenture as outlined in Section 3.2
(c) above ("Default Conversion Price"). The Default Conversion Price shall be
equal to the lesser of a) the Fixed Conversion Price or b) seventy percent (70%)
of the lowest closing bid price of the Common Stock during the fifteen (15)
trading days prior to conversion. Upon written notice being sent to the Company
by the Holder of Default under Section 6.1 (f), and the Holder's election to
exercise the remedy to switch the conversion price to the Default Conversion
Price, the Company shall immediately withdraw the Registration Statement.
Further, the Company agrees that the date of consideration for the Debenture
shall remain the Issuance Date stated herein. The Company shall provide an
opinion letter from counsel within four (4) business days of written request by
the Holder stating that the date of consideration for the Debenture is the
Issuance Date and submission of proper Rule 144 support documentation consisting
of Form 144, a broker's representation letter and a seller's representation
letter. In the event the Company does not deliver the opinion letter within four
(4) business days, the Default Conversion Price shall immediately decrease by
two percent (2%) for each business day an opinion letter fails to be delivered.
In the event that counsel to the Company fails or refuses to render an opinion
as required to issue the Shares in accordance with this paragraph (either with
or without restrictive legends, as applicable), then the Company irrevocably and
expressly authorizes counsel to the Investor to render such opinion and shall
authorize the Transfer Agent shall accept and be entitled to rely on such
opinion for the purposes of issuing the Shares (which is attached as Exhibit E
to the Subscription Agreement between the Company and the Holder of even date).
Any costs incurred by Holder for such opinion letter shall be added to the Face
Amount of the Debenture.

      Section 6.2 Acceleration. If an Event of Default occurs and is continuing,
the Holder hereof by notice to the Company may declare the remaining principal
amount of this Debenture, together with all accrued interest and any liquidated
damages, to be due and payable. Upon such declaration, the remaining principal
amount shall be due and payable immediately.

      Section 6.3 Seniority. No indebtedness of the Company is senior to this
Debenture in right of payment, whether with respect to interest, damages or upon
liquidation or dissolution or otherwise.

Article 7 Registered Debentures

      Section 7.1 Record Ownership. The Company, or its attorney, shall maintain
a register of the holders of the Debentures (the "Register") showing their names
and addresses and the serial numbers and principal amounts of Debentures issued
to them. The Register may be maintained in electronic, magnetic or other
computerized form. The Company may treat the person named as the Holder of this
Debenture in the Register as the sole owner of this Debenture. The Holder of
this Debenture is the person exclusively entitled to receive payments of
interest on this Debenture, receive notifications with respect to this
Debenture, convert it into Common Stock and otherwise exercise all of the rights
and powers as the absolute owner hereof.

                                       11
<PAGE>

Worn or Lost Debentures. If this Debenture becomes worn, defaced or mutilated
but is still substantially intact and recognizable, the Company or its agent may
issue a new Debenture in lieu hereof upon its surrender. Where the Holder of
this Debenture claims that the Debenture has been lost, destroyed or wrongfully
taken, the Company shall issue a new Debenture in place of the Debenture if the
Holder so requests by written notice to the Company actually received by the
Company before it is notified that the Debenture has been acquired by a bona
fide purchaser and the Holder has delivered to the Company an indemnity bond in
such amount and issued by such surety as the Company deems satisfactory together
with an affidavit of the Holder setting forth the facts concerning such loss,
destruction or wrongful taking and such other information in such form with such
proof or verification as the Company may request.

Article 8 Notice.

      Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Debenture must be in writing and
will be deemed to have been delivered (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided a confirmation
of transmission is mechanically or electronically generated and kept on file by
the sending party); or (iii) one (1) day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

If to the Company:

Mitch Segal
Walker Financial Corp
990 Stewart Avenue - Suite 60A
Garden City, New York 11530
Telephone: (516) 832-7000
Facsimile:   (516) 832-7979

If to the Investor:

      At the address listed in the Questionnaire.

      Each party shall provide five (5) business days prior notice to the other
party of any change in address, phone number or facsimile number.

Article 9 Time

      Where this Debenture authorizes or requires the payment of money or the
performance of a condition or obligation on a Saturday or Sunday or a public
holiday, or authorizes or requires the payment of money or the performance of a
condition or obligation within, before or after a period of time computed from a
certain date, and such period of time ends on a Saturday or a Sunday or a public
holiday, such payment may be made or condition or obligation performed on the
next succeeding business day, and if the period ends at a specified hour, such
payment may be made or condition performed, at or before the same hour of such
next succeeding business day, with the same force and effect as if made or
performed in accordance with the terms of this Debenture. A "business day" shall
mean a day on which the banks in Calgary, Alberta are generally open for
business.

                                       12
<PAGE>

Article 10 No Assignment

      This Debenture shall not be assignable.

Article 11 Rules of Construction.

      In this Debenture, unless the context otherwise requires, words in the
singular number include the plural, and in the plural include the singular, and
words of the masculine gender include the feminine and the neuter, and when the
sense so indicates, words of the neuter gender may refer to any gender. The
numbers and titles of sections contained in the Debenture are inserted for
convenience of reference only, and they neither form a part of this Debenture
nor are they to be used in the construction or interpretation hereof. Wherever,
in this Debenture, a determination of the Company is required or allowed, such
determination shall be made by a majority of the Board of Directors of the
Company and if it is made in good faith, it shall be conclusive and binding upon
the Company and the Holder of this Debenture.

Article 12 Governing Law

      The validity, terms, performance and enforcement of this Debenture shall
be governed and construed by the provisions hereof and in accordance with the
laws of the Commonwealth of Massachusetts applicable to agreements that are
negotiated, executed, delivered and performed solely in the Commonwealth of
Massachusetts.

Article 13 Litigation

DISPUTES SUBJECT TO ARBITRATION GOVERNED BY MASSACHUSETTS LAW

      All disputes arising under this agreement shall be governed by and
interpreted in accordance with the laws of the Commonwealth of Massachusetts,
without regard to principles of conflict of laws. The parties to this agreement
will submit all disputes arising under this agreement to arbitration in Boston,
Massachusetts before a single arbitrator of the American Arbitration Association
("AAA"). The arbitrator shall be selected by application of the rules of the
AAA, or by mutual agreement of the parties, except that such arbitrator shall be
an attorney admitted to practice law in the Commonwealth of Massachusetts. No
party to this agreement will challenge the jurisdiction or venue provisions as
provided in this section.

Article 14 Redemption

      The Holder shall have the right to be redeemed from the Debenture, in
whole or in part, at a price equal to one hundred and twenty-five percent (125%)
of the outstanding principal amount of the Debenture, including accrued interest
(and penalties if applicable). Any Payments, as defined in Article 2 above,
shall apply to the Redemption Amount. The Holder also holds the right to use the
existing equity line to redeem the Debenture.

                                       13
<PAGE>

Article 15 Investor Warrants

      As an additional inducement to Holder, the Company shall issue a warrant
to purchase up to fifty-five thousand dollars ($55,000) worth of shares of its
common stock exercisable at the strike prices outlined in the Warrant Agreement,
attached hereto and incorporated by reference, to Holder.

Article 16 Transaction Documents

The Company agrees that contemporaneously with the execution and delivery of
this Debenture, the parties hereto are executing and delivering a Debenture
Registration Rights Agreement, Subscription Agreement, Warrant Agreement,
Security Agreement and the Irrevocable Transfer Agent Agreement between the
Company and Dutchess Capital Management, LLC (collectively, the "Transaction
Documents") pursuant to which the Company has agreed to provide certain rights
and obligations as defined in the documents.

Article 17 Waiver

The Holder's delay or failure at any time or times hereafter to require strict
performance by Company of any undertakings, agreements or covenants shall not
waiver, affect, or diminish any right of the Holder under this Agreement to
demand strict compliance and performance herewith. Any waiver by the Holder of
any Event of Default shall not waive or affect any other Event of Default,
whether such Event of Default is prior or subsequent thereto and whether of the
same or a different type. None of the undertakings, agreements and covenants of
the Company contained in this Agreement, and no Event of Default, shall be
deemed to have been waived by the Holder, nor may this Agreement be amended,
changed or modified, unless such waiver, amendment, change or modification is
evidenced by an instrument in writing specifying such waiver, amendment, change
or modification and signed by the Holder.

Article 18 Waiver of Jury Trial.

AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS AGREEMENT, THE
PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
RELATED IN ANY WAY TO THIS AGREEMENT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
ASSOCIATED WITH THIS TRANSACTION.

                                      *.*.*

                                       14
<PAGE>

      IN WITNESS WHEREOF, the Company has duly executed this Debenture as of the
date first written above and duly authorized to sign on behalf of:

                                        WALKER FINANCIAL CORP.

                                        By
                                           -------------------------
                                        Name:  Mitchell S. Segal
                                        Title: Chief Executive Officer

                                        DUTCHESS PRIVATE EQUITIES FUND, II, L.P.
                                        BY ITS GENERAL PARTNER DUTCHESS
                               By:

                                        By:
                                            --------------------------------
                                        Name:  Douglas H. Leighton
                                        Title: A Managing Member

                                       15
<PAGE>

                                    Exhibit A

                              NOTICE OF CONVERSION

     (To be Executed by the Registered Owner in order to Convert Debenture)
TO WALKER FINANCIAL CORP.

      The undersigned hereby irrevocably elects, as of ________________, to
convert $________________ of its convertible debenture (the "Debenture") into
Common Stock of Walker Financial Corp. (the "Company") according to the
conditions set forth in the Debenture issued by the Company.

Date of Conversion________________________________________________

Applicable Conversion Price________________________________________

Number of Debentures Issuable upon this Conversion_______________________

Name(Print)___________Dutchess Private Equities Fund, II, LP _________________

Address______________50 Commonwealth Ave, Boston, MA 02116_____________

Phone_____617-301-4700_____________ Fax________617-249-0947___________

                                By:
                                   ----------------------------------
                                   Douglas Leighton

                                       16
<PAGE>

                           EXHIBIT B PAYMENT SCHEDULE

<TABLE>
<CAPTION>
                             Amount with
             Principal       Accrued Interest                 Applied to      Applied to
             Amount Due      for Period        Payment        Principal       Interest           Applied to Redemption
<C>            <C>             <C>              <C>            <C>               <C>                  <C>
 1/1/2006      $220,000.00     $222,180.24      $  2,180.24          $0.00       $2,180.24                 $0.00
2/15/2006      $220,000.00     $222,180.24      $ 56,315.03    $ 43,307.83       $2,180.24            $54,134.79
 3/1/2006      $176,692.17     $178,443.22      $ 56,315.03    $ 43,651.18       $1,751.05            $54,563.98
 4/1/2006      $133,040.98     $134,359.44      $ 56,315.03    $ 43,997.26       $1,318.46            $54,996.57
 5/1/2006       $89,043.73      $89,926.17      $ 56,315.03    $ 44,346.07         $882.44            $55,432.59
 6/1/2006       $44,697.65      $45,140.62      $ 56,315.03    $ 44,697.65         $442.96            $55,872.07
 7/1/2006          ($0.00)         ($0.00)      $283,755.39    $220,000.00     $  8,755.39           $275,000.00
</TABLE>

                                       17

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