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He joined the Imps from Scunthorpe United two years ago after starting his career at Nottingham Forest.
Walker played alongside Grecians manager John Cornforth in his time at Glanford Park, as well as fellow summer signing Gareth Sheldon.
"He is already a very, very good midfield player and he can definitely get even better," is how Corny sees the player.
"He's got a good pedigree and he has done well everywhere he has been.
"I've got a good squad now and it's important that there is competition for places."