Document:

COMMON STOCK PURCHASE

                                    AGREEMENT

                          Date as of November 8th 2005

                                  by and among

                        XL GENERATION INTERNATIONAL INC.

                                       and

                       THE PURCHASERS LISTED ON EXHIBIT A

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                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I     Purchase and Sale of Common Stock and Warrants...................1
     Section 1.1     Purchase and Sale of Common Stock and Warrants............1
     Section 1.2     Purchase Price and Closing................................1

ARTICLE II    Representations and Warranties...................................2
     Section 2.1     Representations and Warranties of the Company.............2
     Section 2.2     Representations and Warranties of the Purchasers..........9

ARTICLE III   Covenants.......................................................13
     Section 3.1     Securities Compliance....................................13
     Section 3.2     Registration and Listing.................................13
     Section 3.3     Inspection Rights........................................13
     Section 3.4     Compliance with Laws.....................................13
     Section 3.5     Keeping of Records and Books of Account..................13
     Section 3.6     Reporting Requirements...................................14
     Section 3.7     Other Agreements.........................................14
     Section 3.8     Subsequent Financings; Right of First Refusal............14
     Section 3.9     Use of Proceeds..........................................16
     Section 3.10    Reporting Status.........................................16
     Section 3.11    Disclosure of Transaction................................16
     Section 3.12    Disclosure of Material Information.......................16
     Section 3.13    Pledge of Securities.....................................16
     Section 3.14    Registration Statements..................................17

ARTICLE IV    Conditions......................................................16
     Section 4.1     Conditions Precedent to the Obligation of the
                     Company to Close and to Sell the Securities..............16
     Section 4.2     Conditions Precedent to the Obligation of the
                     Purchasers to Close and to Purchase the Securities.......17

ARTICLE V     Certificate Legend..............................................18
     Section 5.1     Legend...................................................19

ARTICLE VI    Indemnification.................................................20
     Section 6.1     General Indemnity........................................20
     Section 6.2     Indemnification Procedure................................20

ARTICLE VII   Miscellaneous...................................................22
     Section 7.1     Fees and Expenses........................................22
     Section 7.2     Specific Performance; Consent to Jurisdiction; Venue.....22
     Section 7.3     Entire Agreement; Amendment..............................23
     Section 7.4     Notices..................................................23
     Section 7.5     Waivers..................................................24
     Section 7.6     Headings.................................................24
     Section 7.7     Successors and Assigns...................................24
     Section 7.8     No Third Party Beneficiaries.............................24

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                                TABLE OF CONTENTS
                                   (continued)

                                                                            Page
     Section 7.9     Governing Law............................................24
     Section 7.10    Survival.................................................24
     Section 7.11    Counterparts.............................................24
     Section 7.12    Publicity................................................25
     Section 7.13    Severability.............................................25
     Section 7.14    Further Assurances.......................................25

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                         COMMON STOCK PURCHASE AGREEMENT

      This COMMON STOCK PURCHASE AGREEMENT dated as of November 8th, 2005 (this
"Agreement") by and between XL Generation International Inc., a Nevada
corporation (the "Company"), and the purchasers listed on Exhibit A attached
hereto (each a "Purchaser" and collectively, the "Purchasers"), for the purchase
and sale of shares of the Company's common stock, par value $0.001 per share
(the "Common Stock") by the Purchasers.

      The parties hereto agree as follows:

                                   ARTICLE I

                 PURCHASE AND SALE OF COMMON STOCK AND WARRANTS

                  Section 1.1 Purchase and Sale of Common Stock and Warrants.

            (a) Upon the following terms and conditions, the Company shall issue
and sell to the Purchasers, and the Purchasers shall purchase from the Company,
an aggregate of approximately 3,333,334 shares of Common Stock (the "Shares") at
a price per share of $0.90 (the "Per Share Purchase Price") for an aggregate
purchase price of $3,000,000 (the "Purchase Price"). The Company and the
Purchasers are executing and delivering this Agreement in accordance with and in
reliance upon the exemption from securities registration afforded by Section
4(2) of the U.S. Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder (the "Securities Act"), including Regulation
D ("Regulation D"), and Regulation S promulgated thereunder. and/or upon such
other exemption from the registration requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder.

            (b) Upon the following terms and conditions, the Purchasers shall be
issued (i) Series A Warrants, in substantially the form attached hereto as
Exhibit B (the "Series A Warrants"), to purchase the number of shares of Common
Stock equal to one hundred percent of the number of Shares purchased pursuant to
the terms hereof, such amount to be set forth opposite such Purchaser's name on
Exhibit A attached hereto. The Warrants shall have an exercise price of $1.25
per Warrant (as defined in the respective Warrant) and shall be exercisable as
stated therein. Any shares of Common Stock issuable upon exercise of the
Warrants (and such shares when issued) are herein referred to as the "Warrant
Shares". The Shares, the Warrants and the Warrant Shares are sometimes
collectively referred to herein as the "Securities".

Purchase Price and Closing. Subject to the terms and conditions hereof, the
Company agrees to issue and sell to the Purchasers and, in consideration of and
in express reliance upon the representations, warranties, covenants, terms and
conditions of this Agreement, the Purchasers, severally but not jointly, agree
to purchase the number of Shares and Warrants, in each case, set forth opposite
their respective names on Exhibit A attached hereto. The closing of the purchase
and sale of the Shares and Warrants to be acquired by the Purchasers from the
Company under this Agreement shall take place at the offices of XL Generation
International Inc., 460 St-

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Gabriel, Suite 21, Montreal, province of Quebec, Canada (the "Closing") at 11:59
p.m., Eastern time (i) on or before November 8th, 2005; provided, that all of
the conditions set forth in Article IV hereof and applicable to the Closing
shall have been fulfilled or waived in accordance herewith, or (ii) at such
other time and place or on such date as the Purchasers and the Company may agree
upon (the "Closing Date"). Subject to the terms and conditions of this
Agreement, at the Closing the Company shall deliver or cause to be delivered to
each Purchaser (i) a certificate registered in the name of such Purchaser
representing the number of Shares that such Purchaser is purchasing pursuant to
the terms hereof and (ii) a Series A Warrant, to purchase such number of shares
of Common Stock as is set forth opposite the name of such Purchaser on Exhibit A
attached hereto. At the Closing, each Purchaser shall deliver its Purchase Price
by wire transfer to an account designated by the Company.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

                  Section 2.1 Representations and Warranties of the Company. The
            Company hereby represents and warrants to the Purchasers, as of the
            date hereof and the Closing Date (except as set forth on the
            Schedule of Exceptions attached hereto with each numbered Schedule
            corresponding to the section number herein), as follows:

            (a) Organization, Good Standing and Power. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Nevada and has the requisite corporate power to own, lease
and operate its properties and assets and to conduct its business as it is now
being conducted. The Company does have Subsidiaries (as defined in Section
2.1(g)) and does not own securities of any kind in any other entity except as
set forth on Schedule 2.1(g. The Company and each such Subsidiary (as defined in
Section 2.1(g)) is duly qualified as a foreign corporation to do business and is
in good standing in every jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary except for
any jurisdiction(s) (alone or in the aggregate) in which the failure to be so
qualified will not have a Material Adverse Effect. For the purposes of this
Agreement, "Material Adverse Effect" means any effect on the business, results
of operations, prospects, assets or condition (financial or otherwise) of the
Company that is material and adverse to the Company and its subsidiaries, taken
as a whole, and/or any condition, circumstance, factor or situation (including,
without limitation, an investigation by the Securities and Exchange Commission
(the "Commission")) that would prohibit or otherwise materially interfere with
the ability of the Company from entering into and performing any of its
obligations under the Transaction Documents (as defined below) in any material
respect.

            (b) Authorization; Enforcement. The Company has the requisite
corporate power and authority to enter into and perform this Agreement, the
Warrants and that certain Registration Rights Agreement by and among the Company
and the Purchasers, dated as of the date hereof, substantially in the form of
Exhibit C attached hereto (the "Registration Rights Agreement" and, together
with this Agreement and the Warrants, the "Transaction Documents") and to issue
and sell the Securities in accordance with the terms hereof. The execution,
delivery and performance of the Transaction Documents by the Company and the
consummation by it of

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the transactions contemplated thereby have been duly and validly authorized by
all necessary corporate action, and, except as set forth on Schedule 2.1(b), no
further consent or authorization of the Company, its Board of Directors or
stockholders is required. When executed and delivered by the Company, each of
the Transaction Documents shall constitute a valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws relating
to, or affecting generally the enforcement of, creditor's rights and remedies or
by other equitable principles of general application.

            (c) Capitalization. The authorized capital stock of the Company as
of November 8th, 2005 is set forth on Schedule 2.1(c) hereto. All of the
outstanding shares of the Common Stock and any other outstanding security of the
Company have been duly and validly authorized. Except as set forth in this
Agreement and as set forth on Schedule 2.1(c) hereto, no shares of Common Stock
or any other security of the Company are entitled to preemptive rights or
registration rights and there are no outstanding options, warrants, scrip,
rights to subscribe to, call or commitments of any character whatsoever relating
to, or securities or rights convertible into, any shares of capital stock of the
Company. Furthermore, except as set forth in this Agreement and as set forth on
Schedule 2.1(c) hereto, there are no contracts, commitments, understandings, or
arrangements by which the Company is or may become bound to issue additional
shares of the capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the Company. Except for customary
transfer restrictions contained in agreements entered into by the Company in
order to sell restricted securities or as provided on Schedule 2.1(c) hereto,
the Company is not a party to or bound by any agreement or understanding
granting registration or anti-dilution rights to any person with respect to any
of its equity or debt securities. Except as set forth on Schedule 2.1(c), the
Company is not a party to, and it has no knowledge of, any agreement or
understanding restricting the voting or transfer of any shares of the capital
stock of the Company.

            (d) Issuance of Securities. The Shares and the Warrants to be issued
at the Closing have been duly authorized by all necessary corporate action and,
when paid for and issued in accordance with the terms hereof and the Warrants,
respectively, the Shares and the Warrant Shares will be validly issued, fully
paid and nonassessable and free and clear of all liens, encumbrances and rights
of refusal of any kind and the holders shall be entitled to all rights accorded
to a holder of Common Stock.

            (e) No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby, and the issuance of the Securities
as contemplated hereby, do not and will not (i) violate or conflict with any
provision of the Company's Articles of Incorporation (the "Articles") or Bylaws
(the "Bylaws"), each as amended to date, or any Subsidiary's comparable charter
documents, (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries'
respective properties or assets are bound, or (iii) result in a violation of any
federal,

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state, local or foreign statute, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations) applicable to the
Company or any of its Subsidiaries or by which any property or asset of the
Company or any of its Subsidiaries are bound or affected, except, in all cases,
other than violations pursuant to clauses (i) or (iii) (with respect to federal
and state securities laws) above, except, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect. Neither
the Company nor any of its Subsidiaries is required under federal, state,
foreign or local law, rule or regulation to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations
under the Transaction Documents or issue and sell the Securities in accordance
with the terms hereof (other than any filings, consents and approvals which may
be required to be made by the Company under applicable state and federal
securities laws, rules or regulations or any registration provisions provided in
the Registration Rights Agreement).

            (f) Commission Documents, Financial Statements. The Common Stock of
the Company is registered pursuant to Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and the Company has
timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the Commission pursuant to the reporting
requirements of the Exchange Act (all of the foregoing including filings
incorporated by reference therein being referred to herein as the "Commission
Documents"). At the times of their respective filings, the Form 10-QSB for the
fiscal quarters ended July 31st, 2005, January 31, 2005 and October 31, 2004
(collectively, the "Form 10-QSB") and the Form 10-KSB for the fiscal year ended
April 30th , 2005 (the "Form 10-KSB") complied in all material respects with the
requirements of the Exchange Act and the rules and regulations of the Commission
promulgated thereunder and other federal, state and local laws, rules and
regulations applicable to such documents, and the Form 10-QSB and Form 10-KSB
did not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. As of their respective dates, the financial statements of the
Company included in the Commission Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the Commission or other applicable rules and regulations with
respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles ("GAAP") applied on a consistent basis
during the periods involved (except (i) as may be otherwise indicated in such
financial statements or the Notes thereto or (ii) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed or summary statements), and fairly present in all material respects
the financial position of the Company and its Subsidiaries as of the dates
thereof and the results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

            (g) Subsidiaries. Schedule 2.1(g) hereto sets forth each Subsidiary
of the Company, showing the jurisdiction of its incorporation or organization
and showing the percentage of each person's ownership of the outstanding stock
or other interests of such Subsidiary. For the purposes of this Agreement,
"Subsidiary" shall mean any corporation or other entity of which at least a
majority of the securities or other ownership interest having

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ordinary voting power (absolutely or contingently) for the election of directors
or other persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other Subsidiaries. All of the
outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued, and are fully paid and nonassessable. There are no
outstanding preemptive, conversion or other rights, options, warrants or
agreements granted or issued by or binding upon any Subsidiary for the purchase
or acquisition of any shares of capital stock of any Subsidiary or any other
securities convertible into, exchangeable for or evidencing the rights to
subscribe for any shares of such capital stock. Neither the Company nor any
Subsidiary is subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any shares of the capital stock of any Subsidiary
or any convertible securities, rights, warrants or options of the type described
in the preceding sentence except as set forth on Schedule 2.1(g) hereto. Neither
the Company nor any Subsidiary is party to, nor has any knowledge of, any
agreement restricting the voting or transfer of any shares of the capital stock
of any Subsidiary.

            (h) No Material Adverse Change. Since July 31st, 2005, the Company
has not experienced or suffered any Material Adverse Effect, except as disclosed
on Schedule 2.1(h) hereto.

            (i) No Undisclosed Liabilities. Except as disclosed on Schedule
2.1(i) hereto, since July 31st, 2005, neither the Company nor any of its
Subsidiaries has incurred any liabilities, obligations, claims or losses
(whether liquidated or unliquidated, secured or unsecured, absolute, accrued,
contingent or otherwise) other than those incurred in the ordinary course of the
Company's or its Subsidiaries respective businesses or which, individually or in
the aggregate, are not reasonably likely to have a Material Adverse Effect.

            (j) No Undisclosed Events or Circumstances. Since July 31st, 2005,
except as disclosed on Schedule 2.1(j) hereto, no event or circumstance has
occurred or exists with respect to the Company or its Subsidiaries or their
respective businesses, properties, prospects, operations or financial condition,
which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or
disclosed.

            (k) Actions Pending. There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the knowledge of the Company, threatened against the Company or any
Subsidiary which questions the validity of this Agreement or any of the other
Transaction Documents or any of the transactions contemplated hereby or thereby
or any action taken or to be taken pursuant hereto or thereto. Except as set
forth on Schedule 2.1(k) hereto, there is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the knowledge of the Company, threatened against or involving the
Company, any Subsidiary or any of their respective properties or assets, which
individually or in the aggregate, could reasonably be expected, if adversely
determined, to have a Material Adverse Effect. There are no outstanding orders,
judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against the Company or any Subsidiary or any
officers or directors of the Company or Subsidiary in their capacities as such,
which individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

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            (l) Compliance with Law. The business of the Company and the
Subsidiaries has been and is presently being conducted in accordance with all
applicable federal, state and local governmental laws, rules, regulations and
ordinances, except as set forth in the Commission Documents or on Schedule
2.1(l) hereto or such that, individually or in the aggregate, the noncompliance
therewith could not reasonably be expected to have a Material Adverse Effect.
The Company and each of its Subsidiaries have all franchises, permits, licenses,
consents and other governmental or regulatory authorizations and approvals
necessary for the conduct of its business as now being conducted by it unless
the failure to possess such franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

            (m) Taxes. The Company and each of the Subsidiaries has accurately
prepared and filed all federal, state and other tax returns required by law to
be filed by it, has paid or made provisions for the payment of all taxes shown
to be due and all additional assessments, and adequate provisions have been and
are reflected in the financial statements of the Company and the Subsidiaries
for all current taxes and other charges to which the Company or any Subsidiary
is subject and which are not currently due and payable. Except as disclosed on
Schedule 2.1(m) hereto, none of the federal income tax returns of the Company or
any Subsidiary have been audited by the Internal Revenue Service. The Company
has no knowledge of any additional assessments, adjustments or contingent tax
liability (whether federal or state) of any nature whatsoever, whether pending
or threatened against the Company or any Subsidiary for any period, nor of any
basis for any such assessment, adjustment or contingency.

            (n) Certain Fees. Except as set forth on Schedule 2.1(n) hereto, the
Company has not employed any broker or finder or incurred any liability for any
brokerage or investment banking fees, commissions, finders' structuring fees,
financial advisory fees or other similar fees in connection with the Transaction
Documents.

            (o) Disclosure. To the best of the Company's knowledge, neither this
Agreement or the Schedules hereto nor any other documents, certificates or
instruments furnished to the Purchasers by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made herein or therein, in the light
of the circumstances under which they were made herein or therein, not
misleading.

            (p) Operation of Business. Except as set forth on Schedule 2.1(p)
hereto, the Company and each of the Subsidiaries owns or possesses the rights to
all patents, trademarks, domain names (whether or not registered) and any
patentable improvements or copyrightable derivative works thereof, websites and
intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations which are necessary for the conduct of
its business as now conducted without any conflict with the rights of others.

            (q) Environmental Compliance. The Company and each of its
Subsidiaries have obtained all material approvals, authorization, certificates,
consents, licenses, orders and permits or other similar authorizations of all
governmental authorities, or from any other person, that are required under any
Environmental Laws. "Environmental Laws" shall mean all

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applicable laws relating to the protection of the environment including, without
limitation, all requirements pertaining to reporting, licensing, permitting,
controlling, investigating or remediating emissions, discharges, releases or
threatened releases of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, materials or wastes, whether solid, liquid or
gaseous in nature, into the air, surface water, groundwater or land, or relating
to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of hazardous substances, chemical substances, pollutants,
contaminants or toxic substances, material or wastes, whether solid, liquid or
gaseous in nature. To the best of the Company's knowledge, the Company has all
necessary governmental approvals required under all Environmental Laws as
necessary for the Company's business or the business of any of its subsidiaries.
To the best of the Company's knowledge, the Company and each of its subsidiaries
are also in compliance with all other limitations, restrictions, conditions,
standards, requirements, schedules and timetables required or imposed under all
Environmental Laws. Except for such instances as would not individually or in
the aggregate have a Material Adverse Effect, there are no past or present
events, conditions, circumstances, incidents, actions or omissions relating to
or in any way affecting the Company or its subsidiaries that violate or may
violate any Environmental Law after the Closing Date or that may give rise to
any environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any
Environmental Law, or (ii) based on or related to the manufacture, processing,
distribution, use, treatment, storage (including without limitation underground
storage tanks), disposal, transport or handling, or the emission, discharge,
release or threatened release of any hazardous substance.

            (r) Books and Records; Internal Accounting Controls. The records and
documents of the Company and its Subsidiaries accurately reflect in all material
respects the information relating to the business of the Company and the
Subsidiaries, the location and collection of their assets, and the nature of all
transactions giving rise to the obligations or accounts receivable of the
Company or any Subsidiary. The Company and each of its Subsidiaries maintain a
system of internal accounting controls sufficient, in the judgment of the
Company's board of directors, to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate actions are taken
with respect to any differences.

            (s) Material Agreements. Except for the Transaction Documents (with
respect to clause (i) only), as disclosed in the Commission Documents or as set
forth on Schedule 2.1(s) hereto, or as would not be reasonably likely to have a
Material Adverse Effect, (i) the Company and each of its Subsidiaries have
performed all obligations required to be performed by them to date under any
written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement, filed or required to be filed with the Commission (the "Material
Agreements"), (ii) neither the Company nor any of its Subsidiaries has received
any notice of default under any Material Agreement and, (iii) to the best of the
Company's knowledge, neither the Company nor any of its Subsidiaries is in
default under any Material Agreement now in effect.

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            (t) Transactions with Affiliates. Except as set forth on Schedule
2.1(t) hereto, there are no loans, leases, agreements, contracts, royalty
agreements, management contracts or arrangements or other continuing
transactions between (a) the Company, any Subsidiary or any of their respective
customers or suppliers on the one hand, and (b) on the other hand, any officer,
employee, consultant or director of the Company, or any of its Subsidiaries, or
any person owning any capital stock of the Company or any Subsidiary or any
member of the immediate family of such officer, employee, consultant, director
or stockholder or any corporation or other entity controlled by such officer,
employee, consultant, director or stockholder, or a member of the immediate
family of such officer, employee, consultant, director or stockholder which, in
each case, is required to be disclosed in the Commission Documents or in the
Company's most recently filed definitive proxy statement on Schedule 14A, that
is not so disclosed in the Commission Documents or in such proxy statement.

            (u) Securities Act of 1933. Based in material part upon the
representations herein of the Purchasers, the Company has complied and will
comply with all applicable federal and state securities laws in connection with
the offer, issuance and sale of the Securities hereunder. Neither the Company
nor anyone acting on its behalf, directly or indirectly, has or will sell, offer
to sell or solicit offers to buy any of the Securities or similar securities to,
or solicit offers with respect thereto from, or enter into any negotiations
relating thereto with, any person, or has taken or will take any action so as to
bring the issuance and sale of any of the Securities under the registration
provisions of the Securities Act and applicable state securities laws, and
neither the Company nor any of its affiliates, nor any person acting on its or
their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in
connection with the offer or sale of any of the Securities.

            (v) ERISA. No liability to the Pension Benefit Guaranty Corporation
has been incurred with respect to any Plan by the Company or any of its
Subsidiaries which is or would be materially adverse to the Company and its
Subsidiaries. The execution and delivery of this Agreement and the issuance and
sale of the Securities will not involve any transaction which is subject to the
prohibitions of Section 406 of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") or in connection with which a tax could be imposed
pursuant to Section 4975 of the Internal Revenue Code of 1986, as amended,
provided that, if any of the Purchasers, or any person or entity that owns a
beneficial interest in any of the Purchasers, is an "employee pension benefit
plan" (within the meaning of Section 3(2) of ERISA) with respect to which the
Company is a "party in interest" (within the meaning of Section 3(14) of ERISA),
the requirements of Sections 407(d)(5) and 408(e) of ERISA, if applicable, are
met. As used in this Section 2.1(aa), the term "Plan" shall mean an "employee
pension benefit plan" (as defined in Section 3 of ERISA) which is or has been
established or maintained, or to which contributions are or have been made, by
the Company or any Subsidiary or by any trade or business, whether or not
incorporated, which, together with the Company or any Subsidiary, is under
common control, as described in Section 414(b) or (c) of the Code.

            (w) No Integrated Offering. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would cause the offering of the
Securities pursuant to this Agreement to be integrated with prior offerings by
the

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Company for purposes of the Securities Act which would prevent the Company from
selling the Securities pursuant to Regulation D and Rule 506 thereof under the
Securities Act, or any applicable exchange-related stockholder approval
provisions, nor will the Company or any of its affiliates or subsidiaries take
any action or steps that would cause the offering of the Securities to be
integrated with other offerings. The Company does not have any registration
statement pending before the Commission or currently under the Commission's
review.

            (x) Sarbanes-Oxley Act. The Company is in substantial compliance
with the applicable provisions of the Sarbanes-Oxley Act of 2002 (the
"Sarbanes-Oxley Act"), and the rules and regulations promulgated thereunder,
that are effective and intends to comply substantially with other applicable
provisions of the Sarbanes-Oxley Act, and the rules and regulations promulgated
thereunder, upon the effectiveness of such provisions.

                  Section 2.2 Representations and Warranties of the Purchasers.
            Each of the Purchasers hereby represents and warrants to the Company
            with respect solely to itself and not with respect to any other
            Purchaser as follows as of the date hereof and as of the Closing
            Date:

            (a) Organization and Standing of the Purchasers. If the Purchaser is
an entity, such Purchaser is a corporation, limited liability company or
partnership duly incorporated or organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization.

            (b) Authorization and Power. Each Purchaser has the requisite power
and authority to enter into and perform the Transaction Documents and to
purchase the Securities being sold to it hereunder. The execution, delivery and
performance of the Transaction Documents by each Purchaser and the consummation
by it of the transactions contemplated hereby have been duly authorized by all
necessary corporate or partnership action, and no further consent or
authorization of such Purchaser or its Board of Directors, stockholders, or
partners, as the case may be, is required. When executed and delivered by the
Purchasers, the other Transaction Documents shall constitute valid and binding
obligations of each Purchaser enforceable against such Purchaser in accordance
with their terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor's rights and remedies or by other
equitable principles of general application.

            (c) No Conflict. The execution, delivery and performance of the
Transaction Documents by the Purchaser and the consummation by the Purchaser of
the transactions contemplated thereby and hereby do not and will not (i) violate
any provision of the Purchaser's charter or organizational documents, (ii)
conflict with, or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement,
instrument or obligation to which the Purchaser is a party or by which the
Purchaser's respective properties or assets are bound, or (iii) result in a
violation of any federal, state, local or foreign statute, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations) applicable to the Purchaser or by which any property or asset of
the Purchaser are bound or affected, except, in all cases,

                                       9
<PAGE>

other than violations pursuant to clauses (i) or (iii) (with respect to federal
and state securities laws) above, except, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, materially and adversely affect the
Purchaser's ability to perform its obligations under the Transaction Documents.

            (d) Acquisition for Investment. Each Purchaser is purchasing the
Shares and Warrants solely for its own account for the purpose of investment and
not with a view to or for sale in connection with distribution. Each Purchaser
does not have a present intention to sell any of the Shares or Warrants, nor a
present arrangement (whether or not legally binding) or intention to effect any
distribution of any of the Shares or Warrants to or through any person or
entity; provided, however, that by making the representations herein, such
Purchaser does not agree to hold the Shares or the Warrants for any minimum or
other specific term and reserves the right to dispose of the Shares or the
Warrants at any time in accordance with Federal and state securities laws
applicable to such disposition. Each Purchaser acknowledges that it (i) has such
knowledge and experience in financial and business matters such that Purchaser
is capable of evaluating the merits and risks of Purchaser's investment in the
Company, (ii) is able to bear the financial risks associated with an investment
in the Securities and (iii) has been given full access to such records of the
Company and the Subsidiaries and to the officers of the Company and the
Subsidiaries as it has deemed necessary or appropriate to conduct its due
diligence investigation.

            (e) Rule 144. Each Purchaser understands that the Securities must be
held indefinitely unless such Securities are registered under the Securities Act
or an exemption from registration is available. Each Purchaser acknowledges that
such person is familiar with Rule 144 of the rules and regulations of the
Commission, as amended, promulgated pursuant to the Securities Act ("Rule 144"),
and that such Purchaser has been advised that Rule 144 permits resales only
under certain circumstances. Each Purchaser understands that to the extent that
Rule 144 is not available, such Purchaser will be unable to sell any Securities
without either registration under the Securities Act or the existence of another
exemption from such registration requirement.

            (f) General. Each Purchaser understands that the Securities are
being offered and sold in reliance on a transactional exemption from the
registration requirements of federal and state securities laws and the Company
is relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth
herein in order to determine the applicability of such exemptions and the
suitability of such Purchaser to acquire the Securities. Each Purchaser
understands that no United States federal or state agency or any government or
governmental agency has passed upon or made any recommendation or endorsement of
the Securities.

            (g) No General Solicitation. Each Purchaser acknowledges that the
Securities were not offered to such Purchaser by means of any form of general or
public solicitation or general advertising, or publicly disseminated
advertisements or sales literature, including (i) any advertisement, article,
notice or other communication published in any newspaper, magazine, or similar
media, or broadcast over television or radio, or (ii) any seminar or meeting to
which such Purchaser was invited by any of the foregoing means of
communications. Each Purchaser, in

                                       10
<PAGE>

making the decision to purchase the Securities, has relied upon independent
investigation made by it and has not relied on any information or
representations made by third parties.

            (h) Accredited Investor. Each Purchaser is an "accredited investor"
(as defined in Rule 501 of Regulation D), and such Purchaser has such experience
in business and financial matters that it is capable of evaluating the merits
and risks of an investment in the Securities. Such Purchaser is not required to
be registered as a broker-dealer under Section 15 of the Exchange Act and such
Purchaser is not a broker-dealer. Each Purchaser acknowledges that an investment
in the Securities is speculative and involves a high degree of risk.

            (i) Certain Fees. The Purchasers have not employed any broker or
finder or incurred any liability for any brokerage or investment banking fees,
commissions, finders' structuring fees, financial advisory fees or other similar
fees in connection with the Transaction Documents.

            (j) Independent Investment. No Purchaser has agreed to act with any
other Purchaser for the purpose of acquiring, holding, voting or disposing of
the Securities purchased hereunder for purposes of Section 13(d) under the
Exchange Act, and each Purchaser is acting independently with respect to its
investment in the Securities.

            (k) Regulation S Representations.

                  (1) The Purchaser acknowledges and agrees that the Company
shall, and shall instruct its transfer agent to, refuse to register any transfer
of the Common Stock issued hereunder not made in accordance with the provisions
of Regulation S, pursuant to registration under the U.S. Securities Act of 1933,
or pursuant to an available exemption from registration.

                  (2) The Purchaser understands and acknowledges that the
Shares, have not been registered under the Securities Act of 1933 as amended
(the "Act") and are being offered in reliance upon the exemptions provided in
Regulation S of the Act and the Rules and Regulations adopted thereunder.
Accordingly, the Shares may not be offered or sold in the U.S. or to U.S.
persons (as such term is used in Regulation S) unless the securities are
registered under the Act, or an exemption for the regulation requirements is
available. Furthermore, hedging transactions involving the Shares may not be
conducted unless in compliance with the Act. The Purchaser makes the following
representations and warranties to the Company with the intent that the same may
be relied upon in determining the suitability of the Purchaser as a purchaser of
securities:

                  (3) The Purchaser did not receive the offer for the Company
for the Shares (the "Offer"), nor was he, she or it solicited to purchase the
Shares, in the United States; that this Agreement has not been executed or
delivered by the Purchaser in the United States, and neither the Purchaser nor
any person acting on behalf of the Purchaser has engaged, directly or
indirectly, in any negotiations with respect to the Offer or this Agreement in
the United States;

                  (4) The Purchaser is not a U.S. person (i.e., (i) an
individual resident in the U.S.; (ii) a partnership or corporation organized or
incorporated in the United States; (iii) an estate of which any executor or
administrator is a U.S. person; (iv) a trust of which any trustee

                                       11
<PAGE>

is a U.S. person; (v) a dealer holding an account for a customer; (vi) an agency
or branch of a foreign entity located in the U.S.; or (vii) a partnership or
corporation (A) organized or incorporated under the laws of any foreign
jurisdiction and (B) formed by a U.S. person principally for the purpose of
investing in securities not registered under the U.S. Securities Act, unless it
is organized or incorporated, and owned, by accredited investors (as defined in
Rule 501 under the U.S. Securities Act) who are not individuals, estates or
trusts), and is not acquiring the Shares for the account or benefit of a U.S.
person;

                  (5) The Purchaser is not purchasing the Shares as a result of
or subsequent to (i) any advertisement, article, notice or other communication
published in any newspaper, magazine or other publication or broadcast over
television or radio in the U.S.; (ii) any promotional seminar or meeting in the
U.S., or (iii) any solicitation by a person not previously known to him or it in
connection with investments in securities generally; and

                  (6) The Shares have not been registered under the Act or under
any state securities laws and that the Purchaser agrees to transfer his, her or
its Shares in the U.S. or to, or for the account or benefit of, U.S. persons
only if (i) the Shares are duly registered under the Act and all applicable
state securities laws; or (ii) there is an exemption from registration under the
Act, including any exemption from the registration requirements of the Act which
may be available pursuant to Regulation S, and all applicable state securities
laws; that prior to any such transfer the Company may require, as a condition
affecting a transfer of the Shares, an opinion of counsel in form and substance
satisfactory to the Company as to the registration or exemption therefrom under
the Act and applicable state securities laws; that the Company is under no
obligation to register the Shares under the U.S. Securities Act or any
applicable state securities laws on its or his or her behalf or to assist it or
him or her in complying with any exemption from such registration except as
provided in the Registration Rights Agreement;

                  (7) The Shares will be acquired solely for the account of the
Purchaser, for investment purposes only, and not with a view to, or for sale in
connection with, any distribution thereof and with no present intention of
distributing or reselling any part of the Shares.

                  (8) The Purchaser agrees not to sell, pledge, transfer,
dispose of, or otherwise deal with or engage in hedging transactions involving,
his or her Shares or any portion thereof except as otherwise permitted herein,
unless and until counsel for the Company shall have determined that the intended
disposition or action is permissible and does not violate the Securities Act or
any applicable state securities laws, or the rules and regulations thereunder.

            (l) Jurisdiction of Residence. The Purchasers jurisdiction of
residence as set forth on the signature page hereto is true and correct.

            (m) Section 13(d) Compliance. The Purchaser hereby states that
he/she is acquainted with the requirements of Section 13(d) of the Securities
Exchange Act of 1934 and the rules and regulations issued thereunder. The
Purchaser understands that, as a result of its acquisition of Shares, and in
order to comply with Section 13(d) and the rules and regulations

                                       12
<PAGE>

issued thereunder, Purchaser may be required to file a Schedule 13D and hereby
agrees to make such filing if so required.

                                   ARTICLE III

                                    COVENANTS

      The Company covenants with each Purchaser as follows, which covenants are
for the benefit of each Purchaser and their respective permitted assignees.

                  Section 3.1 Securities Compliance. The Company shall notify
            the Commission in accordance with its rules and regulations, of the
            transactions contemplated by any of the Transaction Documents and
            shall take all other necessary action and proceedings as may be
            required and permitted by applicable law, rule and regulation, for
            the legal and valid issuance of the Securities to the Purchasers, or
            their respective subsequent holders.

                  Section 3.2 Registration and Listing. The Company shall use
            its reasonable best efforts to cause its Common Stock to continue to
            be registered under Sections 12(b) or 12(g) of the Exchange Act, to
            comply in all respects with its reporting and filing obligations
            under the Exchange Act, to comply with all requirements related to
            any registration statement filed pursuant to this Agreement, and to
            not take any action or file any document (whether or not permitted
            by the Securities Act or the rules promulgated thereunder) to
            terminate or suspend such registration or to terminate or suspend
            its reporting and filing obligations under the Exchange Act or
            Securities Act, except as permitted herein. The Company shall use
            its reasonable best efforts to continue the listing or trading of
            its Common Stock on the OTC Bulletin Board or any successor market.
            The Company will promptly file any required "Listing Application"
            for, or in connection with, the issuance and delivery of the Shares
            and the Warrant Shares.

                  Section 3.3 Intentionally Omitted.

                  Section 3.4 Compliance with Laws. The Company shall comply,
            and cause each Subsidiary to comply, with all applicable laws,
            rules, regulations and orders, noncompliance with which would be
            reasonably likely to have a Material Adverse Effect.

                  Section 3.5 Keeping of Records and Books of Account. The
            Company shall keep and cause each Subsidiary to keep adequate
            records and books of account, in which complete entries will be made
            in accordance with GAAP consistently applied, reflecting all
            financial transactions of the Company and its Subsidiaries, and in
            which, for each fiscal year, all proper reserves for depreciation,
            depletion, obsolescence, amortization, taxes, bad debts and other
            purposes in connection with its business shall be made.

                                       13
<PAGE>

                  Section 3.6 Reporting Requirements. If the Company ceases to
            file its periodic reports with the Commission, or if the Commission
            ceases making these periodic reports available via the Internet
            without charge, then the Company shall furnish the following to each
            Purchaser so long as such Purchaser shall be obligated hereunder to
            purchase the Securities or shall beneficially own Shares or Warrant
            Shares:

            (a) Quarterly Reports filed with the Commission on Form 10-QSB as
soon as available, and in any event within forty-five (45) days after the end of
each of the first three fiscal quarters of the Company;

            (b) Annual Reports filed with the Commission on Form 10-KSB as soon
as available, and in any event within ninety (90) days after the end of each
fiscal year of the Company; and

            (c) Copies of all notices, information and proxy statements in
connection with any meetings, that are, in each case, provided to holders of
shares of Common Stock, contemporaneously with the delivery of such notices or
information to such holders of Common Stock.

                  Section 3.7 Other Agreements. The Company shall not enter into
            any agreement in which the terms of such agreement would restrict or
            impair the right or ability to perform of the Company or any
            Subsidiary under any Transaction Document.

                  Section 3.8 Subsequent Financings; Right of First Refusal. (a)
            For a period of ninety (90) days following the effective date of a
            registration statement providing for the resale of the Shares and
            the Warrant Shares (the "Effectiveness Date"), the Company covenants
            and agrees that it will not, without the prior written consent of
            the holders of a majority of the Shares outstanding at the time
            consent is required, enter into any subsequent offer or sale to, or
            exchange with (or other type of distribution to), any third party (a
            "Subsequent Financing"), of Common Stock or any securities
            convertible, exercisable or exchangeable into Common Stock,
            including convertible debt securities (collectively, the "Financing
            Securities"), except for a Permitted Financing. A "Permitted
            Financing" shall mean (i) the Company's issuance of Common Stock and
            warrants therefore in connection with a merger and/or acquisition or
            consolidation, (ii) the issuance of shares of Common Stock or
            warrants therefore in connection with strategic license agreements
            so long as such issuances are not for the purpose of raising
            capital, (iii) the Company's issuance of Common Stock or the
            issuance or grants of options to purchase Common Stock pursuant to
            the Company's stock option plans and employee stock purchase plans
            as they now exist, and (iv) the issuance of Common Stock upon the
            exercise or conversion of any securities outstanding on the date
            hereof.

                                       14
<PAGE>

                  Section 3.9 Use of Proceeds. The proceeds from the sale of the
            Shares will be used by the Company for working capital and general
            corporate purposes.

                  Section 3.10 Reporting Status. So long as a Purchaser
            beneficially owns any of the Securities, the Company shall timely
            file all reports required to be filed with the Commission pursuant
            to the Exchange Act, and the Company shall not terminate its status
            as an issuer required to file reports under the Exchange Act even if
            the Exchange Act or the rules and regulations thereunder would
            permit such termination.

                  Section 3.11 Disclosure of Transaction. The Company shall
            issue a press release describing the material terms of the
            transactions contemplated hereby (the "Press Release") on the day of
            the Closing; provided, however, that if Closing occurs after 4:00
            P.M. Eastern Time on any Trading Day but in no event later than one
            hour after the Closing, the Company shall issue the Press Release no
            later than 9:00 A.M. Eastern Time on the first Trading Day following
            the Closing Date. The Company shall also file with the Commission a
            Current Report on Form 8-K (the "Form 8-K") describing the material
            terms of the transactions contemplated hereby (and attaching as
            exhibits thereto this Agreement, the Registration Rights Agreement
            and the form of each series of Warrant) as soon as practicable
            following the date of execution of this Agreement but in no event
            more than two (2) Trading Days following the date of execution of
            this Agreement, which Press Release and Form 8-K shall be subject to
            prior review and comment by the Purchasers. "Trading Day" means any
            day during which the principal exchange on which the Common Stock is
            traded shall be open for trading.

                  Section 3.12 Disclosure of Material Information. The Company
            covenants and agrees that neither it nor any other person acting on
            its behalf has provided or will provide any Purchaser or its agents
            or counsel with any information that the Company believes
            constitutes material non-public information, unless prior thereto
            such Purchaser shall have executed a written agreement regarding the
            confidentiality and use of such information. The Company understands
            and confirms that each Purchaser shall be relying on the foregoing
            representations in effecting transactions in securities of the
            Company.

                  Section 3.13 Pledge of Securities. The Company acknowledges
            and agrees that the Securities may be pledged by a Purchaser in
            connection with a bona fide margin agreement or other loan or
            financing arrangement that is secured by the Common Stock. The
            pledge of Common Stock shall not be deemed to be a transfer, sale or
            assignment of the Common Stock hereunder, and no Purchaser effecting
            a pledge of Common Stock shall be required to provide the Company
            with any notice thereof or otherwise make any delivery to the
            Company pursuant to this Agreement or any other Transaction
            Document; provided that a Purchaser and its pledgee shall be
            required to

                                       15
<PAGE>

            comply with the provisions of Article V hereof in order to effect a
            sale, transfer or assignment of Common Stock to such pledgee. At the
            Purchasers' expense, the Company hereby agrees to execute and
            deliver such documentation as a pledgee of the Common Stock may
            reasonably request in connection with a pledge of the Common Stock
            to such pledgee by a Purchaser.

                  Section 3.14 Registration Statements. The Company shall not
            file any registration statement under the Securities Act registering
            shares of its equity securities until the date that is at least
            ninety (90) days following the Effectiveness Date; provided,
            however, that the Company may file a registration statement under
            the Securities Act registering shares of its equity securities
            issued in connection with a Permitted Financing at any time
            following the Effectiveness Date.

                                   ARTICLE IV

                                   CONDITIONS

                  Section 4.1 Conditions Precedent to the Obligation of the
            Company to Close and to Sell the Securities. The obligation
            hereunder of the Company to close and issue and sell the Securities
            to the Purchasers at the Closing is subject to the satisfaction or
            waiver, at or before the Closing of the conditions set forth below.
            These conditions are for the Company's sole benefit and may be
            waived by the Company at any time in its sole discretion.

            (a) Accuracy of the Purchasers' Representations and Warranties. The
representations and warranties of each Purchaser shall be true and correct in
all material respects as of the date when made and as of the Closing Date as
though made at that time, except for representations and warranties that are
expressly made as of a particular date, which shall be true and correct in all
material respects as of such date.

            (b) Performance by the Purchasers. Each Purchaser shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Purchasers at or prior to the Closing Date.

            (c) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

            (d) Delivery of Purchase Price. The Purchase Price for the Shares
shall have been delivered to the Company on the Closing Date.

            (e) Delivery of Transaction Documents. The Transaction Documents
shall have been duly executed and delivered by the Purchasers to the Company.

                                       16
<PAGE>

                  Section 4.2 Conditions Precedent to the Obligation of the
            Purchasers to Close and to Purchase the Securities. The obligation
            hereunder of the Purchasers to purchase the Securities and
            consummate the transactions contemplated by this Agreement is
            subject to the satisfaction or waiver, at or before the Closing, of
            each of the conditions set forth below. These conditions are for the
            Purchasers' sole benefit and may be waived by the Purchasers at any
            time in their sole discretion.

            (a) Accuracy of the Company's Representations and Warranties. Each
of the representations and warranties of the Company in this Agreement and the
Registration Rights Agreement shall be true and correct in all material respects
as of the Closing Date, except for representations and warranties that speak as
of a particular date, which shall be true and correct in all material respects
as of such date.

            (b) Performance by the Company. The Company shall have performed,
satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.

            (c) No Suspension, Etc. Trading in the Common Stock shall not have
been suspended by the Commission or the OTC Bulletin Board (except for any
suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to the Closing), and, at any time prior to
the Closing Date, trading in securities generally as reported by Bloomberg
Financial Markets ("Bloomberg") shall not have been suspended or limited, or
minimum prices shall not have been established on securities whose trades are
reported by Bloomberg, or on the New York Stock Exchange, nor shall a banking
moratorium have been declared either by the United States or New York State
authorities.

            (d) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

            (e) No Proceedings or Litigation. No action, suit or proceeding
before any arbitrator or any governmental authority shall have been commenced,
and no investigation by any governmental authority shall have been threatened,
against the Company or any Subsidiary, or any of the officers, directors or
affiliates of the Company or any Subsidiary seeking to restrain, prevent or
change the transactions contemplated by this Agreement, or seeking damages in
connection with such transactions.

            (f) Shares and Warrants. At or prior to the Closing, the Company
shall have delivered to the Purchasers certificates representing the Shares (in
such denominations as each Purchaser may request) and the Warrants.

            (g) Secretary's Certificate. The Company shall have delivered to the
Purchasers a secretary's certificate, dated as of the Closing Date, as to (i)
the resolutions adopted by the Board of Directors approving the transactions
contemplated hereby, (ii) the Articles, (iii)

                                       17
<PAGE>

the Bylaws, each as in effect at the Closing, and (iv) the authority and
incumbency of the officers of the Company executing the Transaction Documents
and any other documents required to be executed or delivered in connection
therewith.

            (h) Officer's Certificate. On the Closing Date, the Company shall
have delivered to the Purchasers a certificate signed by an executive officer on
behalf of the Company, dated as of the Closing Date, confirming the accuracy of
the Company's representations, warranties and covenants as of the Closing Date
and confirming the compliance by the Company with the conditions precedent set
forth in paragraphs (b)-(e) of this Section 4.2 as of the Closing Date (provided
that, with respect to the matters in paragraphs (d) and (e) of this Section 4.2,
such confirmation shall be based on the knowledge of the executive officer after
due inquiry).

            (i) Registration Rights Agreement. As of the Closing Date, the
parties shall have entered into the Registration Rights Agreement.

            (j) Material Adverse Effect. No Material Adverse Effect shall have
occurred at or before the Closing Date.

                                   ARTICLE V

                               CERTIFICATE LEGEND

                  Section 5.1 Legend. Each certificate representing the
            Securities shall be stamped or otherwise imprinted with legends
            substantially in the following form (in addition to any legend
            required by applicable state securities or "blue sky" laws):

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
      SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR XL GENERATION
      INTERNATIONAL INC. SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT
      REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
      PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

      THE SECURITY OR SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER
      THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD TO ANY
      PERSON EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF
      AGREES THAT: (1) IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SHARES
      EVIDENCED HEREBY EXCEPT (A) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
      903 OR

                                       18
<PAGE>

      RULE 904 OF REGULATION S OR (B) PURSUANT TO THE EXEMPTION FROM
      REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
      OR ANOTHER THEN AVAILABLE EXEMPTION UNDER THE SECURITIES ACT AND STATE
      SECURITIES LAWS OR, (C) IN A TRANSACTION THAT DOES NOT REQUIRE
      REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE LAWS, OR (D)
      PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
      UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME
      OF SUCH TRANSFER); (2) PRIOR TO ANY SUCH TRANSFER, IT WILL FURNISH TO XL
      GENERATION INTERNATIONAL INC. AND THE TRANSFER AGENT FOR THE COMMON STOCK
      SUCH CERTIFICATIONS, LEGAL OPINIONS, OR OTHER INFORMATION AS XL GENERATION
      INTERNATIONAL INC. OR SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO
      CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR
      IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT OR STATE SECURITIES LAWS; AND (3) IT WILL DELIVER TO EACH
      PERSON TO WHOM THE COMMON STOCK EVIDENCED HEREBY IS TRANSFERRED A NOTICE
      SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. FURTHERMORE, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES EVIDENCED HEREBY MAY NOT BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

      The Company agrees to reissue certificates representing any of the Shares
and the Warrant Shares, without the legend set forth above if at such time,
prior to making any transfer of any such Shares or Warrant Shares, such holder
thereof shall give written notice to the Company describing the manner and terms
of such transfer and removal as the Company may reasonably request. Such
proposed transfer and removal will not be effected until: (a) either (i) the
Company has received an opinion of counsel reasonably satisfactory to the
Company, to the effect that the registration of the Shares or Warrant Shares
under the Securities Act is not required in connection with such proposed
transfer, (ii) a registration statement under the Securities Act covering such
proposed disposition has been filed by the Company with the Commission and has
become effective under the Securities Act, (iii) the Company has received other
evidence reasonably satisfactory to the Company that such registration and
qualification under the Securities Act and state securities laws are not
required, or (iv) the holder provides the Company with reasonable assurances
that such security can be sold pursuant to Rule 144 under the Securities Act;
and (b) either (i) the Company has received an opinion of counsel reasonably
satisfactory to the Company, to the effect that registration or qualification
under the securities or "blue sky" laws of any state is not required in
connection with such proposed disposition, or (ii) compliance with applicable
state securities or "blue sky" laws has been effected or a valid exemption
exists with respect thereto. The Company will respond to any such notice from a
holder within five (5) business days. In the case of any proposed transfer under
this Section 5.1, the Company will use reasonable efforts to comply with any
such applicable state securities or "blue sky" laws, but shall in no event be
required, (x) to qualify to do business in any state where

                                       19
<PAGE>

it is not then qualified, (y) to take any action that would subject it to tax or
to the general service of process in any state where it is not then subject, or
(z) to comply with state securities or "blue sky" laws of any state for which
registration by coordination is unavailable to the Company. The restrictions on
transfer contained in this Section 5.1 shall be in addition to, and not by way
of limitation of, any other restrictions on transfer contained in any other
section of this Agreement. Whenever a certificate representing the Shares or
Warrant Shares is required to be issued to a Purchaser without a legend, in lieu
of delivering physical certificates representing the Shares or Warrant Shares,
provided the Company's transfer agent is participating in the Depository Trust
Company ("DTC") Fast Automated Securities Transfer program, the Company shall
use its reasonable best efforts to cause its transfer agent to electronically
transmit the Shares or Warrant Shares to a Purchaser by crediting the account of
such Purchaser's Prime Broker with DTC through its Deposit Withdrawal Agent
Commission ("DWAC") system (to the extent not inconsistent with any provisions
of this Agreement).

                                   ARTICLE VI

                                 INDEMNIFICATION

                  Section 6.1 General Indemnity. The Company agrees to indemnify
            and hold harmless the Purchasers (and their respective directors,
            officers, affiliates, agents, successors and assigns) from and
            against any and all losses, liabilities, deficiencies, costs,
            damages and expenses (including, without limitation, reasonable
            attorneys' fees, charges and disbursements) incurred by the
            Purchasers as a result of any inaccuracy in or breach of the
            representations, warranties or covenants made by the Company herein.
            Each Purchaser severally but not jointly agrees to indemnify and
            hold harmless the Company and its directors, officers, affiliates,
            agents, successors and assigns from and against any and all losses,
            liabilities, deficiencies, costs, damages and expenses (including,
            without limitation, reasonable attorneys' fees, charges and
            disbursements) incurred by the Company as result of any inaccuracy
            in or breach of the representations, warranties or covenants made by
            such Purchaser herein. The maximum aggregate liability of each
            Purchaser pursuant to its indemnification obligations under this
            Article VI shall not exceed the portion of the Purchase Price paid
            by such Purchaser hereunder.

                  Section 6.2 Indemnification Procedure. Any party entitled to
            indemnification under this Article VI (an "indemnified party") will
            give written notice to the indemnifying party of any matters giving
            rise to a claim for indemnification; provided, that the failure of
            any party entitled to indemnification hereunder to give notice as
            provided herein shall not relieve the indemnifying party of its
            obligations under this Article VI except to the extent that the
            indemnifying party is actually prejudiced by such failure to give
            notice. In case any such action, proceeding or claim is brought
            against an indemnified party in respect of which indemnification is
            sought hereunder, the indemnifying party shall be entitled to
            participate in and, unless in the reasonable judgment of the
            indemnifying party a conflict of interest between it

                                       20
<PAGE>

            and the indemnified party exists with respect to such action,
            proceeding or claim (in which case the indemnifying party shall be
            responsible for the reasonable fees and expenses of one separate
            counsel for the indemnified parties), to assume the defense thereof
            with counsel reasonably satisfactory to the indemnified party. In
            the event that the indemnifying party advises an indemnified party
            that it will not contest such a claim for indemnification hereunder,
            or fails, within thirty (30) days of receipt of any indemnification
            notice to notify, in writing, such person of its election to defend,
            settle or compromise, at its sole cost and expense, any action,
            proceeding or claim (or discontinues its defense at any time after
            it commences such defense), then the indemnified party may, at its
            option, defend, settle or otherwise compromise or pay such action or
            claim. In any event, unless and until the indemnifying party elects
            in writing to assume and does so assume the defense of any such
            claim, proceeding or action, the indemnified party's costs and
            expenses arising out of the defense, settlement or compromise of any
            such action, claim or proceeding shall be losses subject to
            indemnification hereunder. The indemnified party shall cooperate
            fully with the indemnifying party in connection with any negotiation
            or defense of any such action or claim by the indemnifying party and
            shall furnish to the indemnifying party all information reasonably
            available to the indemnified party which relates to such action or
            claim. The indemnifying party shall keep the indemnified party fully
            apprised at all times as to the status of the defense or any
            settlement negotiations with respect thereto. If the indemnifying
            party elects to defend any such action or claim, then the
            indemnified party shall be entitled to participate in such defense
            with counsel of its choice at its sole cost and expense. The
            indemnifying party shall not be liable for any settlement of any
            action, claim or proceeding effected without its prior written
            consent. Notwithstanding anything in this Article VI to the
            contrary, the indemnifying party shall not, without the indemnified
            party's prior written consent, settle or compromise any claim or
            consent to entry of any judgment in respect thereof which imposes
            any future obligation on the indemnified party or which does not
            include, as an unconditional term thereof, the giving by the
            claimant or the plaintiff to the indemnified party of a release from
            all liability in respect of such claim. The indemnification required
            by this Article VI shall be made by periodic payments of the amount
            thereof during the course of investigation or defense, as and when
            bills are received or expense, loss, damage or liability is
            incurred, so long as the indemnified party irrevocably agrees to
            refund such moneys if it is ultimately determined by a court of
            competent jurisdiction that such party was not entitled to
            indemnification. The indemnity agreements contained herein shall be
            in addition to (a) any cause of action or similar rights of the
            indemnified party against the indemnifying party or others, and (b)
            any liabilities the indemnifying party may be subject to pursuant to
            the law.

                                       21
<PAGE>

                                  ARTICLE VII

                                  MISCELLANEOUS

                  Section 7.1 Fees and Expenses. Each party shall pay the fees
            and expenses of its advisors, counsel, accountants and other
            experts, if any, and all other expenses, incurred by such party
            incident to the negotiation, preparation, execution, delivery and
            performance of this Agreement; provided, however, that the Company
            shall pay all actual attorneys' fees and expenses (including
            disbursements and out-of-pocket expenses) incurred by the Purchasers
            in connection with (i) the preparation, negotiation, execution and
            delivery of this Agreement, the Registration Rights Agreement and
            the transactions contemplated thereunder, which payment shall be
            made at Closing and shall not exceed $15,000 (plus disbursements in
            an amount not to exceed $5,000), (ii) the filing and declaration of
            effectiveness by the Commission of the Registration Statement (as
            defined in the Registration Rights Agreement) and (iii) any
            amendments, modifications or waivers of this Agreement or any of the
            other Transaction Documents. In addition, the Company shall pay all
            reasonable fees and expenses incurred by the Purchasers in
            connection with the enforcement of this Agreement or any of the
            other Transaction Documents, including, without limitation, all
            reasonable attorneys' fees and expenses.

                  Section 7.2 Specific Performance; Consent to Jurisdiction;
            Venue.

            (a) The Company and the Purchasers acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement or the other Transaction Documents were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure breaches of the provisions of this Agreement or the other Transaction
Documents and to enforce specifically the terms and provisions hereof or
thereof, this being in addition to any other remedy to which any of them may be
entitled by law or equity.

            (b) The parties agree that venue for any dispute arising under this
Agreement will lie exclusively in the state or federal courts located in New
York, New York, and the parties irrevocably waive any right to raise forum non
conveniens or any other argument that New York is not the proper venue. The
parties irrevocably consent to personal jurisdiction in the state and federal
courts of the state of New York. The Company and each Purchaser consent to
process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 7.2 shall affect
or limit any right to serve process in any other manner permitted by law. The
Company and the Purchasers hereby agree that the prevailing party in any suit,
action or proceeding arising out of or relating to the Securities, this
Agreement or the Registration Rights Agreement, shall be entitled to
reimbursement for reasonable legal fees from the non-prevailing party.

                                       22
<PAGE>

                  Section 7.3 Entire Agreement; Amendment. This Agreement and
            the Transaction Documents contain the entire understanding and
            agreement of the parties with respect to the matters covered hereby
            and, except as specifically set forth herein or in the other
            Transaction Documents, neither the Company nor any Purchaser make
            any representation, warranty, covenant or undertaking with respect
            to such matters, and they supersede all prior understandings and
            agreements with respect to said subject matter, all of which are
            merged herein. No provision of this Agreement may be waived or
            amended other than by a written instrument signed by the Company and
            the Purchasers holding at least a majority of all Shares then held
            by the Purchasers. Any amendment or waiver effected in accordance
            with this Section 7.3 shall be binding upon each Purchaser (and
            their permitted assigns) and the Company.

                  Section 7.4 Notices. Any notice, demand, request, waiver or
            other communication required or permitted to be given hereunder
            shall be in writing and shall be effective (a) upon hand delivery by
            telecopy or facsimile at the address or number designated below (if
            delivered on a business day during normal business hours where such
            notice is to be received), or the first business day following such
            delivery (if delivered other than on a business day during normal
            business hours where such notice is to be received) or (b) on the
            second business day following the date of mailing by express courier
            service, fully prepaid, addressed to such address, or upon actual
            receipt of such mailing, whichever shall first occur. The addresses
            for such communications shall be:

If to the Company:                  XL Generation International Inc.
                                    460 SAINT-GABRIEL
                                    Suite 21
                                    Montreal, Quebec, Canada,  H2Y 2Z9
                                    Attention: Alain Lemieux, President and CEO
                                    Tel. No.: 1-514-397-0575
                                    Fax No.: 1-514-397-0480

with copies (which copies
shall not constitute notice
to the Company) to:                 Mr. Travis Gering, Esq.
                                    WUERSCH & GERING, LLP
                                    100, Wall Street, 21st Floor
                                    New York, NY 10005

                                     Tel. No.: (212) 509-5050 Fax No.: (212)
                                    509-9559

If to any Purchaser:                At the address of such Purchaser set forth
                                    on Exhibit A to this Agreement.

      Any party hereto may from time to time change its address for notices by
giving written notice of such changed address to the other party hereto.

                                       23
<PAGE>

                  Section 7.5 Waivers. No waiver by either party of any default
            with respect to any provision, condition or requirement of this
            Agreement shall be deemed to be a continuing waiver in the future or
            a waiver of any other provision, condition or requirement hereof,
            nor shall any delay or omission of any party to exercise any right
            hereunder in any manner impair the exercise of any such right
            accruing to it thereafter.

                  Section 7.6 Headings. The article, section and subsection
            headings in this Agreement are for convenience only and shall not
            constitute a part of this Agreement for any other purpose and shall
            not be deemed to limit or affect any of the provisions hereof.

                  Section 7.7 Successors and Assigns. This Agreement shall be
            binding upon and inure to the benefit of the parties and their
            successors and assigns. After the Closing, the assignment by a party
            to this Agreement of any rights hereunder shall not affect the
            obligations of such party under this Agreement. Subject to Section
            5.1 hereof, the Purchasers may assign the Securities and its rights
            under this Agreement and the other Transaction Documents and any
            other rights hereto and thereto without the consent of the Company.

                  Section 7.8 No Third Party Beneficiaries. This Agreement is
            intended for the benefit of the parties hereto and their respective
            permitted successors and assigns and is not for the benefit of, nor
            may any provision hereof be enforced by, any other person.

                  Section 7.9 Governing Law. This Agreement shall be governed by
            and construed in accordance with the internal laws of the State of
            New York, without giving effect to any of the conflicts of law
            principles which would result in the application of the substantive
            law of another jurisdiction. This Agreement shall not be interpreted
            or construed with any presumption against the party causing this
            Agreement to be drafted.

                  Section 7.10 Survival. The representations and warranties of
            the Company and the Purchasers shall survive the execution and
            delivery hereof and the Closing until the second anniversary of the
            Closing Date, except the agreements and covenants set forth in
            Articles I, III, V, VI and VII of this Agreement shall survive the
            execution and delivery hereof and the Closing hereunder.

                  Section 7.11 Counterparts. This Agreement may be executed in
            any number of counterparts, all of which taken together shall
            constitute one and the same instrument and shall become effective
            when counterparts have been signed by each party and delivered to
            the other parties hereto, it being understood that all parties need
            not sign the same counterpart.

                                       24
<PAGE>

                  Section 7.12 Publicity. The Company agrees that it will not
            disclose, and will not include in any public announcement, the names
            of the Purchasers without the consent of the Purchasers, which
            consent shall not be unreasonably withheld or delayed, or unless and
            until such disclosure is required by law, rule or applicable
            regulation, and then only to the extent of such requirement.

                  Section 7.13 Severability. The provisions of this Agreement
            are severable and, in the event that any court of competent
            jurisdiction shall determine that any one or more of the provisions
            or part of the provisions contained in this Agreement shall, for any
            reason, be held to be invalid, illegal or unenforceable in any
            respect, such invalidity, illegality or unenforceability shall not
            affect any other provision or part of a provision of this Agreement
            and this Agreement shall be reformed and construed as if such
            invalid or illegal or unenforceable provision, or part of such
            provision, had never been contained herein, so that such provisions
            would be valid, legal and enforceable to the maximum extent
            possible.

                  Section 7.14 Further Assurances. From and after the date of
            this Agreement, upon the request of the Purchasers or the Company,
            the Company and each Purchaser shall execute and deliver such
            instruments, documents and other writings as may be reasonably
            necessary or desirable to confirm and carry out and to effectuate
            fully the intent and purposes of this Agreement, the Warrants and
            the Registration Rights Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the date first above
written.

                                        XL GENERATION INTERNATIONAL

                                        By: /s/ Daniel Courteau
                                            ------------------------------------
                                            Name:  Daniel Courteau
                                            Title: Vice-President

                                        Asset Protection Fund Limited

                                        By: /s/ David Dawes
                                            ------------------------------------
                                            Name:  David Dawes
                                            Title: Director

                                       26
<PAGE>

                                    EXHIBIT A
                               LIST OF PURCHASERS

Names and Addresses                                Investment Amount, Number of
of Purchasers                                      Shares & Warrants Purchased

1.   Capex Investments Limited                     Investment Amount: $1,000,000
     Suite 802, St-James Court                     Shares: 1,111,111
     St-Denis Street, Port Louis                   Series A Warrant:  1,111,111
     Republic of Mauritius

     No Tax ID: Off Shore Fund

2.   Aton Select Fund Limited                      Investment Amount: $1,000,000
     Aeulestrasse 5                                Shares: 1,111,111
     Postfach 83                                   Series A Warrant: 1,111,111
     FL-9490 Vaduz
     Liechtenstein
     Tel: 423-237-3434
     Fax: 423-237-3460
     Tax ID#  N/A  foreign investor
     Attention: Dr. Werner Kelcher or Mr. David

3.   Asset Protection Fund Limited                 Investment Amount: $1,000,000
     Aeulestrasse 5                                Shares: 1,111,111
     Postfach 83                                   Series A Warrant: 1,111,111
     FL-9490 Vaduz
     Liechtenstein
     Tel: 423-237-3434
     Fax: 423-237-3460
     Tax ID#  N/A  foreign investor
     Attention: Dr. Werner Kelcher or Mr. David

<PAGE>

                                    EXHIBIT B
                            FORM OF SERIES A WARRANT

<PAGE>

                                    EXHIBIT C
                      FORM OF REGISTRATION RIGHTS AGREEMENT

<PAGE>

                                SCHEDULE 2.1 (c)

         Authorized Capital Stock of the Company: 100,000,000 shares

         Securities Allowed to be Included on Registration Statement

         DT Crystal Holdings                          500,000  sharesTHIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR XL GENERATION INTERNATIONAL INC. SHALL HAVE
RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE
SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS
NOT REQUIRED.

                          SERIES A WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                        XL GENERATION INTERNATIONAL INC.

                           Expires November 8th, 2007

No.: W-A-01-02                                       Number of Shares: 1,111,111
Date of Issuance: November 8th, 2005

      FOR VALUE RECEIVED, subject to the provisions hereinafter set forth, the
undersigned, Xl Generation International Inc., a Nevada corporation (together
with its successors and assigns, the "Issuer"), hereby certifies that Capex
Investments Limited or its registered assigns is entitled to subscribe for and
purchase, during the Term (as hereinafter defined), up to One Million One
Hundred Eleven Thousand One Hundred Eleven (1,111,111) shares (subject to
adjustment as hereinafter provided) of the duly authorized, validly issued,
fully paid and non-assessable Common Stock of the Issuer, at an exercise price
per share equal to the Warrant Price then in effect, subject, however, to the
provisions and upon the terms and conditions hereinafter set forth. Capitalized
terms used in this Warrant and not otherwise defined herein shall have the
respective meanings specified in Section 9 hereof.

      1. Term. The term of this Warrant shall commence on November 8th, 2005 and
shall expire at 5:00 p.m., eastern time, on November 8th, 2007 (such period
being the "Term").

      2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and
Exchange.

      (a) Time of Exercise. The purchase rights represented by this Warrant may
be exercised in whole or in part at any time during the Term.

                                      -1-
<PAGE>

      (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election (i) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (ii) by
"cashless exercise" in accordance with the provisions of subsection (c) of this
Section 2, but only until the date that a registration statement under the
Securities Act providing for the resale of the Warrant Stock has been declared
effective by the Securities and Exchange Commission, or (iii) by a combination
of the foregoing methods of payment selected by the Holder of this Warrant.

      (c) Cashless Exercise. Notwithstanding any provisions herein to the
contrary, if (i) the Per Share Market Value of one share of Common Stock is
greater than the Warrant Price (at the date of calculation as set forth below)
and (ii) a registration statement under the Securities Act providing for the
resale of the Warrant Stock has not been declared effective by the Securities
and Exchange Commission, in lieu of exercising this Warrant by payment of cash,
the Holder may exercise this Warrant by a cashless exercise and shall receive
the number of shares of Common Stock equal to an amount (as determined below) by
surrender of this Warrant at the principal office of the Issuer together with
the properly endorsed Notice of Exercise in which event the Issuer shall issue
to the Holder a number of shares of Common Stock computed using the following
formula:

            X = Y - (A)(Y)
                           B

Where       X = the number of shares of Common Stock to be issued to the Holder.

            Y = the number of shares of Common Stock purchasable upon exercise
                of all of the Warrant or, if only a portion of the Warrant is
                being exercised, the portion of the Warrant being exercised.

            A = the Warrant Price.

            B = the Per Share Market Value of one share of Common Stock.

      (d) Issuance of Stock Certificates. In the event of any exercise of the
rights represented by this Warrant in accordance with and subject to the terms
and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding three (3) Trading Days after such
exercise or, at the request of the Holder (provided that a registration
statement under the Securities Act providing for the resale of the Warrant Stock
is then in effect), issued and delivered to the Depository Trust Company ("DTC")
account on the Holder's behalf via the Deposit Withdrawal Agent Commission
System ("DWAC"), within a reasonable time, not exceeding three (3) Trading Days
after such exercise, and the Holder hereof shall be deemed for all purposes to
be the holder of the shares of Warrant Stock so purchased as of the date of such

                                      -2-
<PAGE>

exercise and (ii) unless this Warrant has expired, a new Warrant representing
the number of shares of Warrant Stock, if any, with respect to which this
Warrant shall not then have been exercised (less any amount thereof which shall
have been canceled in payment or partial payment of the Warrant Price as
hereinabove provided) shall also be issued to the Holder hereof at the Issuer's
expense within such time.

      (e) Transferability of Warrant. Subject to Section 2(f), this Warrant may
be transferred by a Holder without the consent of the Issuer. If transferred
pursuant to this paragraph and subject to the provisions of Section 2(f), this
Warrant may be transferred on the books of the Issuer by the Holder hereof in
person or by duly authorized attorney, upon surrender of this Warrant at the
principal office of the Issuer, properly endorsed (by the Holder executing an
assignment in the form attached hereto) and upon payment of any necessary
transfer tax or other governmental charge imposed upon such transfer. This
Warrant is exchangeable at the principal office of the Issuer for Warrants to
purchase the same aggregate number of shares of Warrant Stock, each new Warrant
to represent the right to purchase such number of shares of Warrant Stock as the
Holder hereof shall designate at the time of such exchange. All Warrants issued
upon a transfer or exchange shall be dated the Original Issue Date and shall be
identical with this Warrant except as to the number of shares of Warrant Stock
issuable pursuant hereto.

      (f) Compliance with Securities Laws.

            (i) The Holder of this Warrant, by acceptance hereof, acknowledges
      that this Warrant or the shares of Warrant Stock to be issued upon
      exercise hereof, as applicable, are being acquired for the Holder's own
      account and not as a nominee for any other party, and for investment, and
      that the Holder will not offer, sell or otherwise dispose of this Warrant
      or any shares of Warrant Stock to be issued upon exercise hereof, except
      pursuant to an effective registration statement, or an exemption from
      registration, under the Securities Act and any applicable state securities
      laws.

            (ii) Except as provided in Section 2(f)(iii), this Warrant and all
      certificates representing shares of Warrant Stock issued upon exercise
      hereof shall be stamped or imprinted with a legend in substantially the
      following form:

      THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
      SECURITIES ACT AND UNDER APPLICABLE STA TE SECURITIES LAWS OR XL
      GENERATION INTERNATIONAL INC. SHALL HAVE RECEIVED AN OPINION OF COUNSEL
      THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
      THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

                                      -3-
<PAGE>

      THE SECURITY OR SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER
      THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD TO ANY
      PERSON EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF
      AGREES THAT: (1) IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SHARES
      EVIDENCED HEREBY EXCEPT (A) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE
      903 OR RULE 904 OF REGULATION S OR (B) PURSUANT TO THE EXEMPTION FROM
      REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
      OR ANOTHER THEN AVAILABLE EXEMPTION UNDER THE SECURITIES ACT AND STATE
      SECURITIES LAWS OR, (C) IN A TRANSACTION THAT DOES NOT REQUIRE
      REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE LAWS, OR (D)
      PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
      UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME
      OF SUCH TRANSFER); (2) PRIOR TO ANY SUCH TRANSFER, IT WILL FURNISH TO XL
      GENERATION INTERNATIONAL INC. AND THE TRANSFER AGENT FOR THE COMMON STOCK
      SUCH CERTIFICATIONS, LEGAL OPINIONS, OR OTHER INFORMATION AS XL GENERATION
      INTERNATIONAL INC. OR SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO
      CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR
      IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT OR STATE SECURITIES LAWS; AND (3) IT WILL DELIVER TO EACH
      PERSON TO WHOM THE COMMON STOCK EVIDENCED HEREBY IS TRANSFERRED A NOTICE
      SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. FURTHERMORE, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES EVIDENCED HEREBY MAY NOT BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

            (iii) The Issuer agrees to reissue this Warrant or certificates
      representing any of the Warrant Stock, without the legend set forth above
      if at such time, prior to making any transfer of any such securities, the
      Holder shall give written notice to the Issuer describing the manner and
      terms of such transfer and removal as the Issuer may reasonably request.
      Such proposed transfer and removal will not be effected until: (a) either
      (i) the Issuer has received an opinion of counsel reasonably satisfactory
      to the Issuer, to the effect that the registration of such securities
      under the Securities Act is not required in connection with such proposed
      transfer, (ii) a registration statement under the Securities Act covering
      such proposed disposition has been filed by the Issuer with the Securities
      and Exchange Commission and has become effective under the Securities Act,
      (iii) the Issuer has received other evidence reasonably satisfactory to
      the Issuer that such registration and qualification under the Securities
      Act and state securities laws are not required, or (iv) the Holder
      provides the Issuer with reasonable assurances that such security can be
      sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the

                                      -4-
<PAGE>

      Issuer has received an opinion of counsel reasonably satisfactory to the
      Issuer, to the effect that registration or qualification under the
      securities or "blue sky" laws of any state is not required in connection
      with such proposed disposition, or (ii) compliance with applicable state
      securities or "blue sky" laws has been effected or a valid exemption
      exists with respect thereto. The Issuer will respond to any such notice
      from the Holder within five (5) business days. In the case of any proposed
      transfer under this Section 2(f), the Issuer will use reasonable best
      efforts to comply with any such applicable state securities or "blue sky"
      laws, but shall in no event be required, (x) to qualify to do business in
      any state where it is not then qualified, or (y) to take any action that
      would subject it to tax or to the general service of process in any state
      where it is not then subject. The restrictions on transfer contained in
      this Section 2(f) shall be in addition to, and not by way of limitation
      of, any other restrictions on transfer contained in any other section of
      this Warrant. Whenever a certificate representing the Warrant Stock is
      required to be issued to a the Holder without a legend, in lieu of
      delivering physical certificates representing the Warrant Stock, provided
      the Issuer's transfer agent is participating in the DTC Fast Automated
      Securities Transfer program, the Issuer shall use its reasonable best
      efforts to cause its transfer agent to electronically transmit the Warrant
      Stock to the Holder by crediting the account of the Holder's Prime Broker
      with DTC through DWAC (to the extent not inconsistent with any provisions
      of this Warrant or the Purchase Agreement).

      3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

      (a) Stock Fully Paid. The Issuer represents, and warrants to the Holder,
and covenants and agrees for the benefit of the Holder that all shares of
Warrant Stock which may be issued upon the exercise of this Warrant or otherwise
hereunder will, upon issuance, be duly authorized, validly issued, fully paid
and non-assessable and free from all taxes, liens, charges or other encumbrances
of any nature whatsoever created by or through the Issuer. The Issuer further
covenants and agrees that during the period within which this Warrant may be
exercised, the Issuer will at all times have authorized and reserved for the
purpose of the issue upon exercise of this Warrant a sufficient number of shares
of Common Stock to provide for the exercise of this Warrant.

      (b) Reservation. If any shares of Common Stock required to be reserved for
issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its best efforts at its expense to cause such shares to be duly
registered or qualified. If the Issuer shall list any shares of Common Stock on
any securities exchange or market it will, at its expense, list thereon,
maintain and increase when necessary such listing, of, all shares of Warrant
Stock from time to time issued upon exercise of this Warrant or as otherwise
provided hereunder (provided that such Warrant Stock has been registered
pursuant to a registration statement under the Securities Act then in effect),
and, to the extent permissible under the applicable securities exchange rules,
all unissued shares of Warrant Stock which are at any time issuable hereunder,
so long as any shares of Common Stock shall be so listed. The Issuer will also
so list on each securities exchange or market, and will maintain such listing
of, any other securities which the Holder of this Warrant shall be entitled to
receive upon the exercise of this Warrant if at the time any securities of the
same class shall be listed on such securities exchange or market by the Issuer.

                                      -5-
<PAGE>

      (c) Covenants. The Issuer shall not by any action including, without
limitation, amending the Articles of Incorporation or the by-laws of the Issuer,
or through any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other action, avoid or seek to
avoid the observance or performance of any of the terms or provisions of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of the Holder hereof against dilution (to the
extent specifically provided herein) or impairment. Without limiting the
generality of the foregoing, the Issuer will (i) not permit the par value, if
any, of its Common Stock to exceed the then effective Warrant Price, (ii) not
amend or modify any provision of the Articles of Incorporation or by-laws of the
Issuer in any manner that would adversely affect the rights of the Holder of
this Warrant, (iii) take all such action as may be reasonably necessary in order
that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, claims, encumbrances and
restrictions (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
reasonably necessary to enable the Issuer to perform its obligations under this
Warrant.

      (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security reasonably satisfactory to
the Issuer or, in the case of any such mutilation, upon surrender and
cancellation of such Warrant, the Issuer will make and deliver, in lieu of such
lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same number of shares of Common Stock.

      4. Adjustment of Warrant Price and Warrant Share Number. The number of
shares of Common Stock for which this Warrant is exercisable, and the price at
which such shares may be purchased upon exercise of this Warrant, shall be
subject to adjustment from time to time as set forth in this Section 4. The
Issuer shall give the Holder notice of any event described below which requires
an adjustment pursuant to this Section 4 in accordance with Section 5.

                                      -6-
<PAGE>

      (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale.

            (i) In case the Issuer after the Original Issue Date shall do any of
      the following (each, a "Triggering Event"): (a) consolidate with or merge
      into any other Person and the Issuer shall not be the continuing or
      surviving corporation of such consolidation or merger, or (b) permit any
      other Person to consolidate with or merge into the Issuer and the Issuer
      shall be the continuing or surviving Person but, in connection with such
      consolidation or merger, any Capital Stock of the Issuer shall be changed
      into or exchanged for Securities of any other Person or cash or any other
      property, or (c) transfer all or substantially all of its properties or
      assets to any other Person, or (d) effect a capital reorganization or
      reclassification of its Capital Stock, then, and in the case of each such
      Triggering Event, proper provision shall be made so that, upon the basis
      and the terms and in the manner provided in this Warrant, the Holder of
      this Warrant shall be entitled upon the exercise hereof at any time after
      the consummation of such Triggering Event, to the extent this Warrant is
      not exercised prior to such Triggering Event, to receive at the Warrant
      Price in effect at the time immediately prior to the consummation of such
      Triggering Event in lieu of the Common Stock issuable upon such exercise
      of this Warrant prior to such Triggering Event, the Securities, cash and
      property to which such Holder would have been entitled upon the
      consummation of such Triggering Event if such Holder had exercised the
      rights represented by this Warrant immediately prior thereto, subject to
      adjustments (subsequent to such corporate action) as nearly equivalent as
      possible to the adjustments provided for elsewhere in this Section 4.

            (ii) Notwithstanding anything contained in this Warrant to the
      contrary, a Triggering Event shall not be deemed to have occurred if,
      prior to the consummation thereof, each Person (other than the Issuer)
      which may be required to deliver any Securities, cash or property upon the
      exercise of this Warrant as provided herein shall assume, by written
      instrument delivered to, and reasonably satisfactory to, the Holder of
      this Warrant, (A) the obligations of the Issuer under this Warrant (and if
      the Issuer shall survive the consummation of such Triggering Event, such
      assumption shall be in addition to, and shall not release the Issuer from,
      any continuing obligations of the Issuer under this Warrant) and (B) the
      obligation to deliver to such Holder such Securities, cash or property as,
      in accordance with the foregoing provisions of this subsection (a), such
      Holder shall be entitled to receive, and such Person shall have similarly
      delivered to such Holder an opinion of counsel for such Person, which
      counsel shall be reasonably satisfactory to such Holder, or in the
      alternative, a written acknowledgement executed by the President or Chief
      Financial Officer of the Issuer, stating that this Warrant shall
      thereafter continue in full force and effect and the terms hereof
      (including, without limitation, all of the provisions of this subsection
      (a)) shall be applicable to the Securities, cash or property which such
      Person may be required to deliver upon any exercise of this Warrant or the
      exercise of any rights pursuant hereto.

      (b) Stock Dividends, Subdivisions and Combinations. If at any time the
Issuer shall:

            (i) take a record of the holders of its Common Stock for the purpose
      of entitling them to receive a dividend payable in, or other distribution
      of, shares of Common Stock,

                                      -7-
<PAGE>

            (ii) subdivide its outstanding shares of Common Stock into a larger
      number of shares of Common Stock, or

            (iii) combine its outstanding shares of Common Stock into a smaller
      number of shares of Common Stock,

then (1) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in effect
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment.

      (c) Certain Other Distributions. If at any time the Issuer shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive any dividend or other distribution of:

            (i) cash (other than a cash dividend payable out of earnings or
      earned surplus legally available for the payment of dividends under the
      laws of the jurisdiction of incorporation of the Issuer),

            (ii) any evidences of its indebtedness, any shares of stock of any
      class or any other securities or property of any nature whatsoever (other
      than cash, Common Stock Equivalents or Additional Shares of Common Stock),
      or

            (iii) any warrants or other rights to subscribe for or purchase any
      evidences of its indebtedness, any shares of stock of any class or any
      other securities or property of any nature whatsoever (other than cash,
      Common Stock Equivalents or Additional Shares of Common Stock),

then (1) the number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
adjustment multiplied by a fraction (A) the numerator of which shall be the Per
Share Market Value of Common Stock at the date of taking such record and (B) the
denominator of which shall be such Per Share Market Value minus the amount
allocable to one share of Common Stock of any such cash so distributable and of
the fair value (as determined in good faith by the Board of Directors of the
Issuer and supported by an opinion from an investment banking firm of recognized
national standing acceptable to (but not affiliated with) the Holder) of any and
all such evidences of indebtedness, shares of stock, other securities or
property or warrants or other subscription or purchase rights so distributable,
and (2) the

                                      -8-
<PAGE>

Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price
then in effect multiplied by the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to the adjustment divided by (B) the
number of shares of Common Stock for which this Warrant is exercisable
immediately after such adjustment. A reclassification of the Common Stock (other
than a change in par value, or from par value to no par value or from no par
value to par value) into shares of Common Stock and shares of any other class of
stock shall be deemed a distribution by the Issuer to the holders of its Common
Stock of such shares of such other class of stock within the meaning of this
Section 4(c) and, if the outstanding shares of Common Stock shall be changed
into a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section 4(b).

      (d) Issuance of Additional Shares of Common Stock.

            (i) In the event the Issuer shall at any time issue any Additional
Shares of Common Stock (otherwise than as provided in the foregoing subsections
(b) through (c) of this Section 4), at a price per share less than the Per Share
Market Value on the date of such issuance or without consideration, then the
Warrant Price upon each such issuance shall be adjusted to that price determined
by multiplying the Warrant Price then in effect by a fraction:

                  (A) the numerator of which shall be equal to the sum of (x)
            the number of shares of Outstanding Common Stock immediately prior
            to the issuance of such Additional Shares of Common Stock plus (y)
            the number of shares of Common Stock which the aggregate
            consideration for the total number of such Additional Shares of
            Common Stock so issued would purchase at a price per share equal to
            the Warrant Price then in effect, and

                  (B) the denominator of which shall be equal to the number of
            shares of Outstanding Common Stock immediately after the issuance of
            such Additional Shares of Common Stock.

            (ii) The provisions of paragraph (i) of Section 4(d) shall not apply
to any issuance of Additional Shares of Common Stock for which an adjustment is
provided under Section 4(b) or 4(c). No adjustment of the number of shares of
Common Stock for which this Warrant shall be exercisable shall be made under
paragraph (i) of Section 4(d) upon the issuance of any Additional Shares of
Common Stock which are issued pursuant to the exercise of any Common Stock
Equivalents, if any such adjustment shall previously have been made upon the
issuance of such Common Stock Equivalents (or upon the issuance of any warrant
or other rights therefor) pursuant to Section 4(e) or Section 4(f).

      (e) Issuance of Warrants or Other Rights. If at any time the Issuer shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Issuer is the surviving corporation)
issue or sell, any Common Stock Equivalents (or issue any warrant or other
rights therefor), whether or not the rights to exchange or convert thereunder
are immediately exercisable, and the price per share for which Common Stock is
issuable upon the exercise of such Common Stock Equivalents (or any warrant or
other rights therefor) shall be less than the Warrant Price in effect
immediately prior to the time of such issue or sale, then the number of shares
for which this Warrant is exercisable and the Warrant Price then in effect shall
be adjusted as provided in Section 4(d) on the basis that the maximum number of
Additional Shares of Common Stock issuable pursuant to all such Common Stock
Equivalents (or upon the issuance of any warrant or other rights therefor) shall
be

                                      -9-
<PAGE>

deemed to have been issued and outstanding and the Issuer shall have received
all of the consideration payable therefor, if any, as of the date of the actual
issuance of such warrants or other rights. No adjustments of the Warrant Price
then in effect or the number of Warrant Shares for which this Warrant is
exercisable shall be made upon the actual issue of such Common Stock or of such
Common Stock Equivalents upon exercise of such warrants or other rights or upon
the actual issue of such Common Stock upon such conversion or exchange of such
Common Stock Equivalents.

      (f) Issuance of Common Stock Equivalents. If at any time the Issuer shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Issuer is the surviving corporation)
issue or sell, any Common Stock Equivalents, whether or not the rights to
exchange or convert thereunder are immediately exercisable, and the price per
share for which Common Stock is issuable upon such conversion or exchange shall
be less than the Warrant Price in effect immediately prior to the time of such
issue or sale, then the number of shares of Common Stock for which this Warrant
is exercisable and the Warrant Price then in effect shall be adjusted as
provided in Section 4(d) on the basis that the maximum number of Additional
Shares of Common Stock necessary to effect the conversion or exchange of all
such Common Stock Equivalents shall be deemed to have been issued and
outstanding and the Issuer shall have received all of the consideration payable
therefor, if any, as of the date of actual issuance of such Common Stock
Equivalents. No further adjustment of the number of shares of Common Stock for
which this Warrant is exercisable and the Warrant Price then in effect shall be
made under this Section 4(f) upon the issuance of any Common Stock Equivalents
which are issued pursuant to the exercise of any warrants or other subscription
or purchase rights therefor, if any such adjustment shall previously have been
made upon the issuance of such warrants or other rights pursuant to Section
4(e). No further adjustments of the number of shares of Common Stock for which
this Warrant is exercisable and the Warrant Price then in effect shall be made
upon the actual issue of such Common Stock upon conversion or exchange of such
Common Stock Equivalents.

      (g) Superseding Adjustment. If, at any time after any adjustment of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect shall have been made pursuant to Section 4(e) or
Section 4(f) as the result of any issuance of warrants, other rights or Common
Stock Equivalents, and (i) such warrants or other rights, or the right of
conversion or exchange in such other Common Stock Equivalents, shall expire, and
all or a portion of such warrants or other rights, or the right of conversion or
exchange with respect to all or a portion of such other Common Stock
Equivalents, as the case may be shall not have been exercised, or (ii) the
consideration per share for which shares of Common Stock are issuable pursuant
to such Common Stock Equivalents, shall be increased solely by virtue of
provisions therein contained for an automatic increase in such consideration per
share upon the occurrence of a specified date or event, then for each
outstanding Warrant such previous adjustment shall be rescinded and annulled and
the Additional Shares of Common Stock which

                                      -10-
<PAGE>

were deemed to have been issued by virtue of the computation made in connection
with the adjustment so rescinded and annulled shall no longer be deemed to have
been issued by virtue of such computation. Upon the occurrence of an event set
forth in this Section 4(g) above, there shall be a recomputation made of the
effect of such Common Stock Equivalents on the basis of: (i) treating the number
of Additional Shares of Common Stock or other property, if any, theretofore
actually issued or issuable pursuant to the previous exercise of any such
warrants or other rights or any such right of conversion or exchange, as having
been issued on the date or dates of any such exercise and for the consideration
actually received and receivable therefor, and (ii) treating any such Common
Stock Equivalents which then remain outstanding as having been granted or issued
immediately after the time of such increase of the consideration per share for
which shares of Common Stock or other property are issuable under such Common
Stock Equivalents; whereupon a new adjustment of the number of shares of Common
Stock for which this Warrant is exercisable and the Warrant Price then in effect
shall be made, which new adjustment shall supersede the previous adjustment so
rescinded and annulled.

      (h) Purchase of Common Stock by the Issuer. If the Issuer at any time
while this Warrant is outstanding shall, directly or indirectly through a
Subsidiary or otherwise, purchase, redeem or otherwise acquire any shares of
Common Stock at a price per share greater than the Per Share Market Value, then
the Warrant Price upon each such purchase, redemption or acquisition shall be
adjusted to that price determined by multiplying such Warrant Price by a
fraction (i) the numerator of which shall be the number of shares of Outstanding
Common Stock immediately prior to such purchase, redemption or acquisition minus
the number of shares of Common Stock which the aggregate consideration for the
total number of such shares of Common Stock so purchased, redeemed or acquired
would purchase at the Per Share Market Value; and (ii) the denominator of which
shall be the number of shares of Outstanding Common Stock immediately after such
purchase, redemption or acquisition. For the purposes of this subsection (h),
the date as of which the Per Share Market Price shall be computed shall be the
earlier of (x) the date on which the Issuer shall enter into a firm contract for
the purchase, redemption or acquisition of such Common Stock, or (y) the date of
actual purchase, redemption or acquisition of such Common Stock. For the
purposes of this subsection (h), a purchase, redemption or acquisition of a
Common Stock Equivalent shall be deemed to be a purchase of the underlying
Common Stock, and the computation herein required shall be made on the basis of
the full exercise, conversion or exchange of such Common Stock Equivalent on the
date as of which such computation is required hereby to be made, whether or not
such Common Stock Equivalent is actually exercisable, convertible or
exchangeable on such date.

      (i) Other Provisions applicable to Adjustments under this Section. The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect provided for in this Section 4:

            (i) Computation of Consideration. To the extent that any Additional
Shares of Common Stock or any Common Stock Equivalents (or any warrants or other
rights therefor) shall be issued for cash consideration, the consideration
received by the Issuer therefor shall be the amount of the cash received by the
Issuer therefor, or, if such Additional Shares of Common Stock or Common Stock
Equivalents are offered by the Issuer for subscription, the subscription

                                      -11-
<PAGE>

price, or, if such Additional Shares of Common Stock or Common Stock Equivalents
are sold to underwriters or dealers for public offering without a subscription
offering, the initial public offering price (in any such case subtracting any
amounts paid or receivable for accrued interest or accrued dividends and without
taking into account any compensation, discounts or expenses paid or incurred by
the Issuer for and in the underwriting of, or otherwise in connection with, the
issuance thereof). To the extent that such issuance shall be for a consideration
other than cash, then, except as herein otherwise expressly provided, the amount
of such consideration shall be deemed to be the fair value of such consideration
at the time of such issuance as determined in good faith by the Board of
Directors of the Issuer. In case any Additional Shares of Common Stock or any
Common Stock Equivalents (or any warrants or other rights therefor) shall be
issued in connection with any merger in which the Issuer issues any securities,
the amount of consideration therefor shall be deemed to be the fair value, as
determined in good faith by the Board of Directors of the Issuer, of such
portion of the assets and business of the nonsurviving corporation as such Board
in good faith shall determine to be attributable to such Additional Shares of
Common Stock, Common Stock Equivalents, or any warrants or other rights
therefor, as the case may be. The consideration for any Additional Shares of
Common Stock issuable pursuant to any warrants or other rights to subscribe for
or purchase the same shall be the consideration received by the Issuer for
issuing such warrants or other rights plus the additional consideration payable
to the Issuer upon exercise of such warrants or other rights. The consideration
for any Additional Shares of Common Stock issuable pursuant to the terms of any
Common Stock Equivalents shall be the consideration received by the Issuer for
issuing warrants or other rights to subscribe for or purchase such Common Stock
Equivalents, plus the consideration paid or payable to the Issuer in respect of
the subscription for or purchase of such Common Stock Equivalents, plus the
additional consideration, if any, payable to the Issuer upon the exercise of the
right of conversion or exchange in such Common Stock Equivalents. In case of the
issuance at any time of any Additional Shares of Common Stock or Common Stock
Equivalents in payment or satisfaction of any dividends upon any class of stock
other than Common Stock, the Issuer shall be deemed to have received for such
Additional Shares of Common Stock or Common Stock Equivalents a consideration
equal to the amount of such dividend so paid or satisfied.

            (ii) When Adjustments to Be Made. The adjustments required by this
Section 4 shall be made whenever and as often as any specified event requiring
an adjustment shall occur, except that any adjustment of the number of shares of
Common Stock for which this Warrant is exercisable that would otherwise be
required may be postponed (except in the case of a subdivision or combination of
shares of the Common Stock, as provided for in Section 4(b)) up to, but not
beyond the date of exercise if such adjustment either by itself or with other
adjustments not previously made adds or subtracts less than one percent (1%) of
the shares of Common Stock for which this Warrant is exercisable immediately
prior to the making of such adjustment. Any adjustment representing a change of
less than such minimum amount (except as aforesaid) which is postponed shall be
carried forward and made as soon as such adjustment, together with other
adjustments required by this Section 4 and not previously made, would result in
a minimum adjustment or on the date of exercise. For the purpose of any
adjustment, any specified event shall be deemed to have occurred at the close of
business on the date of its occurrence.

                                      -12-
<PAGE>

            (iii) Fractional Interests. In computing adjustments under this
Section 4, fractional interests in Common Stock shall be taken into account to
the nearest one one-hundredth (1/100th) of a share.

            (iv) When Adjustment Not Required. If the Issuer shall take a record
of the holders of its Common Stock for the purpose of entitling them to receive
a dividend or distribution or subscription or purchase rights and shall,
thereafter and before the distribution to stockholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or purchase
rights, then thereafter no adjustment shall be required by reason of the taking
of such record and any such adjustment previously made in respect thereof shall
be rescinded and annulled.

      (j) Form of Warrant after Adjustments. The form of this Warrant need not
be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

      (k) Escrow of Warrant Stock. If after any property becomes distributable
pursuant to this Section 4 by reason of the taking of any record of the holders
of Common Stock, but prior to the occurrence of the event for which such record
is taken, and the Holder exercises this Warrant, any shares of Common Stock
issuable upon exercise by reason of such adjustment shall be deemed the last
shares of Common Stock for which this Warrant is exercised (notwithstanding any
other provision to the contrary herein) and such shares or other property shall
be held in escrow for the Holder by the Issuer to be issued to the Holder upon
and to the extent that the event actually takes place, upon payment of the
current Warrant Price. Notwithstanding any other provision to the contrary
herein, if the event for which such record was taken fails to occur or is
rescinded, then such escrowed shares shall be cancelled by the Issuer and
escrowed property returned.

      5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated (including a description of the
basis on which the Board made any determination hereunder), and the Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such certificate to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with respect to the matters set forth in such certificate may at
the option of the Holder of this Warrant be submitted to one of the national
accounting firms currently known as the "big four" selected by the Holder;
provided that the Issuer shall have ten (10) days after receipt of notice from
such Holder of its selection of such firm to object thereto, in which case such
Holder shall select another such firm and the Issuer shall have no such right of
objection. The firm selected by the Holder of this Warrant as provided in the
preceding sentence shall be instructed to deliver a written opinion as to such
matters to the Issuer and such Holder within thirty (30) days after submission
to it of such dispute. Such opinion shall be final and binding on the parties
hereto.

                                      -13-
<PAGE>

      6. Fractional Shares. No fractional shares of Warrant Stock will be issued
in connection with any exercise hereof, but in lieu of such fractional shares,
the Issuer shall make a cash payment therefor equal in amount to the product of
the applicable fraction multiplied by the Per Share Market Value then in effect.

      7. Ownership Cap and Certain Exercise Restrictions. (a) Notwithstanding
anything to the contrary set forth in this Warrant, at no time may a Holder of
this Warrant exercise this Warrant if the number of shares of Common Stock to be
issued pursuant to such exercise would exceed, when aggregated with all other
shares of Common Stock owned by such Holder at such time, the number of shares
of Common Stock which would result in such Holder owning more than 4.999% of all
of the Common Stock outstanding at such time; provided, however, that upon the
Holder of this Warrant providing the Issuer with sixty-one (61) days notice
(pursuant to Section 12 hereof) (the "Waiver Notice") that such Holder would
like to waive this Section 7(a) with regard to any or all shares of Common Stock
issuable upon exercise of this Warrant, this Section 7(a) will be of no force or
effect with regard to all or a portion of the Warrant referenced in the Waiver
Notice; provided, further, that this provision shall be of no further force or
effect during the sixty-one (61) days immediately preceding the expiration of
the term of this Warrant.

            (b) The Holder may not exercise the Warrant hereunder to the extent
such exercise would result in the Holder beneficially owning (as determined in
accordance with Section 13(d) of the Exchange Act and the rules thereunder) in
excess of 9.999% of the then issued and outstanding shares of Common Stock,
including shares issuable upon exercise of this Warrant held by the Holder;
provided, however, that upon a holder of this Warrant providing the Issuer with
a Waiver Notice that such holder would like to waive this Section 7(b) with
regard to any or all shares of Common Stock issuable upon exercise of this
Warrant, this Section 7(b) shall be of no force or effect with regard to those
shares of Warrant Stock referenced in the Waiver Notice; provided, further, that
this provision shall be of no further force or effect during the sixty-one (61)
days immediately preceding the expiration of the term of this Warrant.

      8. Call. Notwithstanding anything herein to the contrary, the Issuer, at
its option, may call up to one hundred percent (100%) of this Warrant by
providing the Holder of this Warrant written notice pursuant to Section 13 (the
"Call Notice") if the Per Share Market Value of the Common Stock has been equal
to or greater than $5.00 for a period of thirty (30) consecutive Trading Days
immediately prior to the date of delivery of the Call Notice; provided, that (i)
a registration statement under the Securities Act providing for the resale of
the Warrant Stock and the Common Stock issued pursuant to the Purchase Agreement
is then in effect and has been effective, without lapse or suspension of any
kind, for a period of thirty (30) consecutive Trading Days, (ii) trading in the
Common Stock shall not have been suspended by the Securities and Exchange
Commission or the OTC Bulletin Board and (iii) the Issuer is in material
compliance with the terms and conditions of this Warrant and the other
Transaction Documents (as defined in the Purchase Agreement); provided, further,
that a registration statement under the Securities Act providing for the resale
of the Warrant Stock and the Common Stock issued pursuant to the Purchase
Agreement is in effect from the date of delivery of the Call Notice until the
date which is the later of (A) the date the Holder exercises the Warrant
pursuant to the Call Notice and (B) the 20th Trading Day after the Holder
receives the Call Notice (the "Early Termination Date"). The rights and
privileges granted pursuant to this

                                      -14-
<PAGE>

Warrant with respect to the shares of Warrant Stock subject to the Call Notice
(the "Called Warrant Shares") shall expire on the Early Termination Date if this
Warrant is not exercised with respect to such Called Warrant Shares prior to
such Early Termination Date. In the event this Warrant is not exercised with
respect to the Called Warrant Shares, the Issuer shall remit to the Holder of
this Warrant a new Warrant representing the number of shares of Warrant Stock,
if any, which shall not have been subject to the Call Notice upon the Holder
tendering to the Issuer the applicable Warrant certificate.

      9. Definitions. For the purposes of this Warrant, the following terms have
the following meanings:

            "Additional Shares of Common Stock" means all shares of Common Stock
      issued by the Issuer after the Original Issue Date, and all shares of
      Other Common, if any, issued by the Issuer after the Original Issue Date,
      except: (i) the Issuer's issuance of Common Stock and warrants therefore
      in connection with a merger, acquisition, or consolidation; provided that
      the Warrant Price shall be adjusted in accordance with Section 4(a)(i),
      (ii) the issuance of shares of Common Stock or warrants therefore in
      connection with strategic license agreements so long as such issuances are
      not for the purpose of raising capital, (iii) the Issuer's issuance of
      Common Stock or the issuance or grants of options to purchase Common Stock
      pursuant to the Issuer's stock option plans and employee stock purchase
      plans as they now exist, and (iv) the issuance of Common Stock upon the
      exercise or conversion of any securities outstanding on the date hereof.

            "Articles of Incorporation" means the Articles of Incorporation of
      the Issuer as in effect on the Original Issue Date, and as hereafter from
      time to time amended, modified, supplemented or restated in accordance
      with the terms hereof and thereof and pursuant to applicable law.

            "Board" shall mean the Board of Directors of the Issuer.

            "Capital Stock" means and includes (i) any and all shares,
      interests, participations or other equivalents of or interests in (however
      designated) corporate stock, including, without limitation, shares of
      preferred or preference stock, (ii) all partnership interests (whether
      general or limited) in any Person which is a partnership, (iii) all
      membership interests or limited liability company interests in any limited
      liability company, and (iv) all equity or ownership interests in any
      Person of any other type.

            "Common Stock" means the Common Stock, par value $0.001 per share,
      of the Issuer and any other Capital Stock into which such stock may
      hereafter be changed.

            "Common Stock Equivalent" means any Convertible Security or warrant,
      option or other right to subscribe for or purchase any Additional Shares
      of Common Stock or any Convertible Security.

            "Convertible Securities" means evidences of Indebtedness, shares of
      Capital Stock or other Securities which are or may be at any time
      convertible into or exchangeable for Additional Shares of Common Stock.
      The term "Convertible Security" means one of the Convertible Securities.

                                      -15-
<PAGE>

            "Governmental Authority" means any governmental, regulatory or
      self-regulatory entity, department, body, official, authority, commission,
      board, agency or instrumentality, whether federal, state or local, and
      whether domestic or foreign.

            "Holder" means the Person who holds this Warrant. The term "Holders"
      means one of the Persons who shall from time to time hold this Warrant.

            "Independent Appraiser" means a nationally recognized or major
      regional investment banking firm or firm of independent certified public
      accountants of recognized standing (which may be the firm that regularly
      examines the financial statements of the Issuer) that is regularly engaged
      in the business of appraising the Capital Stock or assets of corporations
      or other entities as going concerns, and which is not affiliated with
      either the Issuer or the Holder of any Warrant.

            "Issuer" means XL Generation International Inc., a Nevada
      corporation, and its successors and assigns.

            "Majority Holders" means at any time the Holders of Warrants
      exercisable for a majority of the shares of Warrant Stock issuable under
      the Warrants at the time outstanding.

            "Original Issue Date" means November 8th, 2005.

            "OTC Bulletin Board" means the over-the-counter electronic bulletin
      board.

            "Other Common" means any other Capital Stock of the Issuer of any
      class which shall be authorized at any time after the date of this Warrant
      (other than Common Stock) and which shall have the right to participate in
      the distribution of earnings and assets of the Issuer without limitation
      as to amount.

            "Outstanding Common Stock" means, at any given time, the aggregate
      amount of outstanding shares of Common Stock, assuming full exercise,
      conversion or exchange (as applicable) of all options, warrants and other
      Securities which are convertible into or exercisable or exchangeable for,
      and any right to subscribe for, shares of Common Stock that are
      outstanding at such time.

            "Person" means an individual, corporation, limited liability
      company, partnership, joint stock company, trust, unincorporated
      organization, joint venture, Governmental Authority or other entity of
      whatever nature.

            "Per Share Market Value" means on any particular date (a) the
      closing bid price for a share of Common Stock in the over-the-counter
      market, as reported by the OTC Bulletin Board or in the National Quotation
      Bureau Incorporated or similar organization or agency succeeding to its
      functions of reporting prices) at the close of business on such

                                      -16-
<PAGE>

      date, or (b) if the Common Stock is not then reported by the OTC Bulletin
      Board or the National Quotation Bureau Incorporated (or similar
      organization or agency succeeding to its functions of reporting prices),
      then the average of the "Pink Sheet" quotes for the relevant conversion
      period, as determined in good faith by the holder, or (c) if the Common
      Stock is not then publicly traded the fair market value of a share of
      Common Stock as determined by the Board in good faith; provided, however,
      that the Majority Holders, after receipt of the determination by the
      Board, shall have the right to select, jointly with the Issuer, an
      Independent Appraiser, in which case, the fair market value shall be the
      determination by such Independent Appraiser; and provided, further that
      all determinations of the Per Share Market Value shall be appropriately
      adjusted for any stock dividends, stock splits or other similar
      transactions during such period. The determination of fair market value
      shall be based upon the fair market value of the Issuer determined on a
      going concern basis as between a willing buyer and a willing seller and
      taking into account all relevant factors determinative of value, and shall
      be final and binding on all parties. In determining the fair market value
      of any shares of Common Stock, no consideration shall be given to any
      restrictions on transfer of the Common Stock imposed by agreement or by
      federal or state securities laws, or to the existence or absence of, or
      any limitations on, voting rights.

            "Purchase Agreement" means the Common Stock Purchase Agreement dated
      as of November 8th, 2005 among the Issuer and the Purchasers.

            "Purchasers" means the purchasers of Common Stock and Warrants
      issued by the Issuer pursuant to the Purchase Agreement.

            "Securities" means any debt or equity securities of the Issuer,
      whether now or hereafter authorized, any instrument convertible into or
      exchangeable for Securities or a Security, and any option, warrant or
      other right to purchase or acquire any Security. "Security" means one of
      the Securities.

            "Securities Act" means the Securities Act of 1933, as amended, or
      any similar federal statute then in effect.

            "Subsidiary" means any corporation at least 50% of whose outstanding
      Voting Stock shall at the time be owned directly or indirectly by the
      Issuer or by one or more of its Subsidiaries, or by the Issuer and one or
      more of its Subsidiaries.

            "Term" has the meaning specified in Section 1 hereof.

            "Trading Day" means (a) a day on which the Common Stock is traded on
      the OTC Bulletin Board, or (b) if the Common Stock is not traded on the
      OTC Bulletin Board, a day on which the Common Stock is quoted in the
      over-the-counter market as reported by the National Quotation Bureau
      Incorporated (or any similar organization or agency succeeding its
      functions of reporting prices); provided, however, that in the event that
      the Common Stock is not listed or quoted as set forth in (a) or (b)
      hereof, then Trading Day shall mean any day except Saturday, Sunday and
      any day which shall be a legal holiday or a day on which banking
      institutions in the State of New York are authorized or required by law or
      other government action to close.

                                      -17-
<PAGE>

            "Voting Stock" means, as applied to the Capital Stock of any
      corporation, Capital Stock of any class or classes (however designated)
      having ordinary voting power for the election of a majority of the members
      of the Board of Directors (or other governing body) of such corporation,
      other than Capital Stock having such power only by reason of the happening
      of a contingency.

      t 12 6 "Warrants" means the Warrants issued and sold pursuant to the
Purchase Agreement, including, without limitation, this Warrant, and any other
warrants of like tenor issued in substitution or exchange for any thereof
pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or of any of
such other Warrants.

            "Warrant Price" initially means US$1.25, as such price may be
      adjusted from time to time as shall result from the adjustments specified
      in this Warrant, including Section 4 hereto.

            "Warrant Share Number" means at any time the aggregate number of
      shares of Warrant Stock which may at such time be purchased upon exercise
      of this Warrant, after giving effect to all prior adjustments and
      increases to such number made or required to be made under the terms
      hereof.

            "Warrant Stock" means Common Stock issuable upon exercise of any
      Warrant or Warrants or otherwise issuable pursuant to any Warrant or
      Warrants.

      10. Other Notices. In case at any time:

                  (A)   the Issuer shall make any distributions to the holders
                        of Common Stock; or

                  (B)   the Issuer shall authorize the granting to all holders
                        of its Common Stock of rights to subscribe for or
                        purchase any shares of Capital Stock of any class or
                        other rights; or

                  (C)   there shall be any reclassification of the Capital Stock
                        of the Issuer; or

                  (D)   there shall be any capital reorganization by the Issuer;
                        or

                  (E)   there shall be any (i) consolidation or merger involving
                        the Issuer or (ii) sale, transfer or other disposition
                        of all or substantially all of the Issuer's property,
                        assets or business (except a merger or other
                        reorganization in which the Issuer shall be the
                        surviving corporation and its shares of Capital Stock
                        shall continue to be outstanding and unchanged and
                        except a consolidation, merger, sale, transfer or other
                        disposition involving a wholly-owned Subsidiary); or

                                      -18-
<PAGE>

                  (F)   there shall be a voluntary or involuntary dissolution,
                        liquidation or winding-up of the Issuer or any partial
                        liquidation of the Issuer or distribution to holders of
                        Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than ten (10) days prior
to the record date or the date on which the Issuer's transfer books are closed
in respect thereto. This Warrant entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

      11. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 11 without the consent of the Holder of this Warrant.

      12. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY
OF ITS PRINCIPLES OF CONFLICTS OF LAW WHICH WOULD RESULT IN THE APPLICATION OF
THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION.

      13. Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern time, on a
Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service or
(iv) actual receipt by the party to whom such notice is required to be given.
The addresses for such communications shall be with respect to the Holder of
this

                                      -19-
<PAGE>

Warrant or of Warrant Stock issued pursuant hereto, addressed to such Holder at
its last known address or facsimile number appearing on the books of the Issuer
maintained for such purposes, or with respect to the Issuer, addressed to:

If to the Company:                  XL Generation International Inc.
                                    460 SAINT-GABRIEL
                                    Suite 21
                                    Montreal, Quebec, Canada,  H2Y 2Z9
                                    Attention: Alain Lemieux, President and CEO
                                    Tel. No.: 1-514-397-0575
                                    Fax No.: 1-514-397-0480

with copies (which copies
shall not constitute notice
to the Company) to:                 Mr. Travis Gering, Esq
                                    WUERSCH & GERING, LLP
                                    100, Wall Street, 21st Floor
                                    New York, NY 10005

                                    Tel. No.: (212) 509-5050
                                    Fax No.: (212) 509-9559

Copies of notices to the Holder shall be sent at the address of such Holder set
forth on Exhibit A to this Warrant. Any party hereto may from time to time
change its address for notices by giving at least ten (10) days written notice
of such changed address to the other party hereto.

      14. Warrant Agent. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

      15. Remedies. The Issuer stipulates that the remedies at law of the Holder
of this Warrant in the event of any breach or threatened breach by the Issuer in
the performance of or compliance with any of the terms or provisions of this
Warrant are not and will not be adequate and that, to the fullest extent
permitted by law, such terms or provisions may be specifically enforced by a
decree for the specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms or provisions hereof or
otherwise.

      16. Successors and Assigns. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or Holders of Warrant Stock.

                                      -20-
<PAGE>

      17. Severability. If, in any action before any court or agency legally
empowered to enforce any provision contained herein, any provision hereof is
found to be unenforceable, then such provision shall be deemed modified to the
extent necessary to make it enforceable by such court or agency. If any such
provision is not enforceable as set forth in the preceding sentence, the
unenforceability of such provision shall not affect the other provisions of this
Warrant, but this Warrant shall be construed as if such unenforceable provision
had never been contained herein.

      18. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant and shall not influence the construction or interpretation of
this Warrant.

                                      -21-
<PAGE>

      IN WITNESS WHEREOF, the Issuer has executed this Series A Warrant as of
the day and year first above written.

                                        XL GENERATION INTERNATIONAL INC.

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                      -22-
<PAGE>

                                  EXERCISE FORM
                                SERIES A WARRANT

                        XL GENERATION INTERNATIONAL INC.

      The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase t 0 0 _____ shares of Common Stock of
____________ covered by the within Warrant.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________
                                                _____________________

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________
                                                _____________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: _________________            Signature   ___________________________

                                    Address     _____________________
                                                _____________________

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of
___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _______________.

                                      -23-

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