Document:

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                                                                   EXHIBIT 10.62

                               WARRANT AGREEMENT

                WARRANT AGREEMENT (this "Agreement"), dated as of November 16,
2000, by and between FutureLink Corp., a Delaware corporation (the "Company"),
and Foothill Capital Corporation, a California corporation ("Lender").
Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to such terms in the Loan Agreement (as defined below).

                              W I T N E S S E T H:

                WHEREAS, the Company is party to that certain Loan and Security
Agreement, dated as of November 16, 2000 (as the same may from time to time be
amended, restated, supplemented or otherwise modified, the "Loan Agreement") by
and between, on the one hand, the Company and its subsidiaries and, on the other
hand, the financial institutions identified therein as the Lenders (including
Lender);

                WHEREAS, pursuant to the Loan Agreement, it is a requirement
that the Company execute and deliver this Agreement and issue to the Warrant
Holder, in accordance with the terms and conditions hereof, a warrant (the
"Warrant") to purchase up to an aggregate of one hundred thousand (100,000)
shares of the Company's Common Stock, par value $0.0001 per share ("Common
Stock"), at the exercise price per share provided for herein, which warrant
shall be evidenced in substantially the same form as the Form of Warrant
Certificate (the "Warrant Certificate") attached hereto as Exhibit A; and

                WHEREAS, the Warrant Holder desires to acquire from the Company,
and the Company desires to issue to the Warrant Holder, the Warrant.

                NOW, THEREFORE, in consideration of these premises, and the
respective promises and covenants contained herein, the parties hereto hereby
agree as follows:

                SECTION 1. Definitions. The following terms as used in this
Agreement shall have the meanings set forth below:

                "Business Day" means a day other than a Saturday, Sunday or
other day on which banks in the State of New York are authorized by law to
remain closed;

                "Common Stock" shall mean the Company's common stock, par value
$0.0001 per share;

                "Company" shall have the meaning set forth in the introductory
paragraph, or any successor thereof;

                "Convertible Securities" shall have the meaning set forth in
Section 4(c);

                "Exempt Securities" shall have the meaning set forth in Section
4(o);

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                "Exercise Date" shall mean any date on which the Company shall
have received both (i) a Warrant Certificate representing a Warrant, with the
exercise form thereon duly executed by the Warrant Holder, or his
attorney-in-fact duly authorized in writing, and (ii) payment of the Underlying
Share Purchase Price pursuant to Section 2(b) or Section 2(c), as determined by
the Warrant Holder in its sole discretion;

                "Lender" shall have the meaning set forth in the preamble
hereto;

                "Nasdaq" means the Nasdaq National Market;

                "Notice Event" shall mean (i) any authorization by the Company
of the issuance to all holders of shares of Common Stock of rights, options or
warrants to subscribe for or purchase shares of Common Stock or of any other
subscription rights or warrants, (ii) any authorization by the Company of the
distribution to all holders of shares of Common Stock of evidences of its
indebtedness or assets (other than cash dividends or distributions payable out
of consolidated earnings or earned surplus or dividends payable in shares of
Common Stock), (iii) any consolidation or merger to which the Company is a party
and for which approval of any stockholders of the Company is required, or of the
conveyance or transfer of the properties and assets of the Company substantially
as an entirety, or of any reclassification or change of Common Stock issuable
upon exercise of the Warrants (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), or a tender offer or exchange offer for shares of
Common Stock, (iv) any voluntary or involuntary dissolution, liquidation or
winding up of the Company, (v) any failure to maintain the effectiveness of a
registration statement during the 90 days immediately before the Underlying
Share Expiration Date pursuant to Section 3(c), or (vi) any proposal by the
Company to take any other action that would require an adjustment of the
Underlying Share Purchase Price or the number of Underlying Shares pursuant to
Section 4;

                "Option Issuance" shall have the meaning set forth in Section
4(c);

                "Options" shall have the meaning set forth in Section 4(c);

                "Registrable Securities" shall have the meaning set forth in the
Registration Rights Agreement;

                "Registration Rights Agreement" means that certain Registration
Rights Agreement, dated as of the date hereof, by and between the Company and
Lender;

                "SEC" means the Securities and Exchange Commission;

                "SEC Reports" shall have the meaning set forth in Section 3(d);

                "Stock Option Plan" shall have the meaning set forth in Section
4(o);

                "Transfer Agent" means American Stock Transfer & Trust Company,
or such other firm as may then be acting as the transfer agent of the Company;

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                "Underlying Share Expiration Date" means the last date on which
the Warrants to purchase the Underlying Shares may be exercised, which shall be
5:00 p.m., New York City time, on the day before the date which is ten years
from the date hereof (or as may be extended pursuant to Section 3(c)), or if
such expiration date is not a Business Day, at or before 5:00 p.m. New York City
time on the next following Business Day;

                "Underlying Share Purchase Price" shall mean eight dollars and
forty cents ($8.40), subject to adjustment from time to time pursuant to the
provisions of Section 4;

                "Underlying Shares" means the one hundred thousand (100,000)
shares of Common Stock that are the subject of the Warrants, subject to
adjustment from time to time as provided herein;

                "Warrants" shall mean the right to purchase the Underlying
Shares pursuant to this Agreement, together with any divisions thereof;

                "Warrant Certificate" shall have the meaning set forth in the
recitals hereto;

                "Warrant Holder" means a person or entity in whose name the
Warrants shall be either initially or subsequently registered upon the books to
be maintained by the Company for such purpose.

                SECTION 2. Duration and Exercise

                        (a) Duration. Subject to the provisions of Section 4
hereof, the Warrants may be exercised from time to time, upon the terms and
subject to the conditions set forth herein, at any time before the Underlying
Share Expiration Date. If the Warrants are not exercised before the Underlying
Share Expiration Date, the Warrant Holder shall no longer be entitled to
purchase the Underlying Shares and all rights hereunder to purchase such
Underlying Shares shall thereupon cease.

                        (b) Exercise.

                                (1) A Warrant Holder may exercise the Warrants,
in whole or in part, to purchase the Underlying Shares in such amounts as may be
elected upon surrender of the Warrant Certificates therefor with the
subscription form thereon duly executed, to the Company at its corporate office
at 2 South Point Drive, Lake Forest, California, together with the full
Underlying Share Purchase Price for each Underlying Share to be purchased, (i)
in lawful money of the United States, or by certified check or bank draft
payable in United States dollars to the order of the Company, (ii) cancellation
of all or any part of the unpaid principal amount of indebtedness outstanding
under the Loan Agreement in an amount equal to the Underlying Share Purchase
Price, or (iii) surrender to the Company for cancellation certificates
representing shares of Common Stock of the Company owned by the Warrant Holder
(properly endorsed for transfer in blank) having a current market price on the
date of Warrant exercise equal to the Underlying Share Purchase Price and upon
compliance with and subject to the conditions set forth herein and in the
Warrant Certificate. For purposes of any computation under this Section 2(b)(1),
the then

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current market price per share of Common Stock will be computed as set forth
under Section 2(c).

                                (2) Upon receipt of such Warrant Certificates
together with the Subscription Form attached hereto as Exhibit D (or a
reasonable facsimile thereof) thereon duly executed and accompanied by payment
of the Underlying Share Purchase Price for the number of Underlying Shares for
which such Warrants are then being exercised, the Company shall, subject to
Section 5(b) hereof, cause to be issued and delivered promptly, but in all
events within three (3) days of receipt by the Company of the Underlying Share
Purchase Price, to the Warrant Holder certificates for such shares of Common
Stock in such denominations as are requested by the Warrant Holder.

                                (3) In case a Warrant Holder shall exercise
Warrants with respect to less than all of the Underlying Shares, the Company
will execute a new Warrant Certificate, as represented by a warrant certificate
substantially in the form attached hereto as Exhibit A, exercisable for the
balance of the Underlying Shares that may be purchased upon exercise of such
Warrants and deliver such new Warrant Certificate to the Warrant Holder. Warrant
Certificates shall be executed on behalf of the Company by the Company's
Chairman of the Board, President or any Vice President and by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary.

                                (4) Warrants shall be deemed to have been
exercised immediately prior to the close of business on the Exercise Date, and
the person entitled to receive the Underlying Shares and any Warrant Certificate
representing the unexercised portion of the Warrants deliverable upon such
exercise shall be treated for all purposes as the holder of such Underlying
Shares and unexercised Warrants, respectively, upon such exercise as of the
close of business on the Exercise Date.

                                (5) The Company covenants and agrees that it
will pay when due and payable any and all taxes that may be payable in respect
of the issue of the Warrants or the issue of any Underlying Shares. The Company
shall not, however, be required to pay any tax that may be payable in respect of
any transfer by the Warrant Holder of the Warrants or any Underlying Shares to
any person or entity at the time of surrender. Until the payment of the tax
referred to in the previous sentence and the presentation to the Company by the
Warrant Holder of reasonable proof of such payment, the Company shall not be
required to issue such Underlying Shares or new Warrant Certificates
representing unexercised Warrants to any transferee.

                        (c) Cashless Exercise. In lieu of a cash payment of the
Underlying Share Purchase Price, a Warrant Holder may exercise the Warrants, in
whole or in part, by presentation and surrender of the Warrant to the Company,
together with a Cashless Exercise Form attached hereto as Exhibit B (or a
reasonable facsimile thereof) duly executed (a "Cashless Exercise"). Acceptance
by the Company of such presentation and surrender shall be deemed a waiver of
the Warrant Holder's obligation to pay all or any portion of the Underlying
Share Purchase Price, as the case may be. In the event of a Cashless Exercise,
the Warrant Holder shall exchange the Warrants for that number of shares of
Common Stock determined by multiplying the number of shares of Common Stock for
which the Warrants are being exercised by a fraction, the numerator of which
shall be the

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difference between the then current market price per share of the Common Stock
and the Underlying Share Purchase Price, and the denominator of which shall be
the then current market price per share of Common Stock. For purposes of any
computation under this Section 2(c), the then current market price per share of
Common Stock at any date shall be deemed to be the average for the ten (10)
consecutive business days immediately prior to the Cashless Exercise of the
daily closing prices of the Common Stock on the principal national securities
exchange on which the Common Stock is admitted to trading or listed, or if not
listed or admitted to trading on any such exchange, the last reported sales
prices as included for quotation on Nasdaq, or if not included for quotation on
Nasdaq, the average of the highest reported bid and lowest reported asked prices
as reported by the National Association of Securities Dealers, Inc. Automated
Quotations System, or if not then publicly traded, the fair market price of the
Common Stock as determined by the Board of Directors of the Company.

                SECTION 3. Covenants

                        (a) Issuance and Sale of Underlying Shares. The Company
covenants that it will at all times reserve and keep available, free from
preemptive rights, out of its authorized Common Stock, solely for the purpose of
issuance upon exercise of the Warrants, such number of shares of Common Stock as
shall equal the aggregate number of the Underlying Shares. The Company covenants
that all shares of Common Stock that shall be issuable upon exercise of the
Warrants shall, at the time of delivery and, subject to Section 2(c) hereof,
upon receipt by the Company of the Underlying Share Purchase Price, be duly and
validly issued, fully paid, nonassessable and free from all taxes, liens and
charges with respect to the issue thereof (other than those which the Company
shall promptly pay or discharge).

                The Transfer Agent for the Common Stock will be irrevocably
authorized and directed at all times to reserve such number of authorized shares
as shall be required for such purpose. The Company will keep a copy of this
Agreement on file with the Transfer Agent. The Company will supply such Transfer
Agent with duly executed certificates for such purposes and will provide or
otherwise make available any cash which may be payable as provided in Section
5(b) hereof. The Company will furnish such Transfer Agent with a copy of all
notices of adjustments and certificates related thereto transmitted to the
Warrant Holder pursuant to Section 4(p) hereof.

                        (b) Registration Rights Agreement. Lender, any
transferee of Lender's interests hereunder and any subsequent transferee thereof
shall be entitled to the benefits of that certain Registration Rights Agreement
between Lender and the Company of even date herewith, to the extent provided for
in the Registration Rights Agreement.

                        (c) Notice Regarding Extension of Underlying Share
Expiration Date. Notwithstanding anything to the contrary in this Agreement, if
the Company has not maintained an effective registration statement under the
Securities Act with respect to the sale or issuance of the Registrable
Securities during the 90 days immediately before the Underlying Share Expiration
Date (and maintained the registration or qualification of such Registrable
Securities under applicable state securities laws during such periods), the
Warrants shall not expire until the Company maintains such effective
registration statement (and such registrations and qualifications) for 90
consecutive days beginning with the first day after 90 days before the
Underlying Share Expiration Date, that such registration statement (and such
registrations and qualifications) is effective. In the circumstances

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described in this paragraph, the extended Underlying Share Expiration Date shall
be considered the Underlying Share Expiration Date for purposes of this
Agreement. Notwithstanding anything to the contrary in this Agreement, the
Company shall issue the Underlying Shares to the Warrant Holder upon the
exercise of the Warrants and such Warrant Holder's representation that such
Warrant Holder is a "sophisticated investor, "under the federal securities laws
if a registration statement is not effective at the time of such issuance.

                        (d) SEC Reports. So long as the Warrants remain
outstanding, the Company shall cause copies of all quarterly and annual
financial reports and of the information, documents, and other reports (or
copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which the Company is required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act ("SEC Reports") to be mailed
to the Warrant Holder at his, her or its address appearing in the register of
warrant holders maintained by the Company, in each case, within 15 days of
filing with the SEC. If the Company is not subject to the requirements of
Section 13 or 15(d) of the Exchange Act, the Company shall nevertheless continue
to cause SEC Reports comparable to those which it would be required to file
pursuant to Section 13 or 15(d) of the Exchange Act if it were subject to the
requirements of either such section, to be so filed with the SEC (but only if
the SEC permits such filings) and mailed to the Warrant Holder, in each case,
within the same time periods as would have applied (including under the
preceding sentence) had the Company been subject to the requirements of Section
13 or 15(d) of the Exchange Act.

                        (e) Tax Basis. The Company and the Holder have mutually
agreed that the tax basis of this Warrant for purposes of the Internal Revenue
Code of 1986, as amended, and the treatment of this Warrant under such Code by
each of the Company and the Holder shall be $1.00. This determination was based
upon the considerable discrepancy between the Current Market Price of the
Underlying Shares and the initial Underlying Share Purchase Price.

                        (f) Restrictive Legend. Each Warrant Certificate and
certificate evidencing shares of Common Stock issued to the Warrant Holder
following the exercise of Warrants shall bear the following restrictive legend
until such time as the transfer of such security is not restricted under the
federal securities laws:

       THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
       REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
       "ACT"), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED,
       SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
       DISPOSED OF EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION
       STATEMENT UNDER THE ACT, (II) TO THE EXTENT APPLICABLE, RULE 144
       UNDER THE ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE
       DISPOSITION OF SECURITIES), OR (III) AN OPINION OF COUNSEL, IF
       SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE

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       ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
       AVAILABLE.

                SECTION 4. Adjustment of Underlying Share Purchase Price and
Number ofUnderlying Shares. The number of Underlying Shares purchasable upon the
exercise of the Warrants and the payment of the Underlying Share Purchase Price
shall be subject to adjustment from time to time as follows:

                        (a) Stock Splits, Combinations, etc. In case the Company
shall hereafter, but prior to 5:00 p.m. (New York City time) on the Underlying
Share Expiration Date: (i) pay a dividend or make a distribution on its Common
Stock in shares of its capital stock (whether such distribution consists of
shares of Common Stock or of capital stock of any other class); (ii) subdivide
its outstanding shares of Common Stock; (iii) combine its outstanding shares of
Common Stock into a smaller number of shares; or (iv) issue by reclassification
of its shares of Common Stock any shares of capital stock of the Company, the
Underlying Share Purchase Price in effect and the number of Underlying Shares
issuable upon exercise of the Warrants immediately prior to such action shall be
adjusted so that the Warrant Holder shall be entitled to receive that number of
shares of capital stock of the Company at the same aggregate Underlying Share
Purchase Price that the Warrant Holder would have owned immediately following
such action had the Warrants been exercised immediately prior thereto. An
adjustment made pursuant to this paragraph shall become effective on the day
which is immediately after the record date in the case of a dividend and shall
become effective on the day which is immediately after the effective date in the
case of a subdivision, combination or reclassification. If, as a result of an
adjustment made pursuant to this paragraph, the Warrant Holder shall become
entitled to receive shares of two or more classes of capital stock of the
Company, the Board of Directors of the Company (whose determination shall be
conclusive) shall determine the allocation of the adjusted Underlying Share
Purchase Price between or among shares of such classes of capital stock.

                        (b) Reclassification, Combination, Mergers, etc. In case
of any reclassification or change of outstanding shares of Common Stock issuable
upon exercise of the Warrants (other than as set forth in paragraph (a) above
and other than a change in par value, or from par value to no par value, or from
no par value to par value or as a result of a subdivision or combination), or in
case of any consolidation or merger of the Company with or into another
corporation or entity (other than a merger in which the Company is the
continuing corporation and which does not result in any reclassification or
change of the then outstanding shares of Common Stock or other capital stock
issuable upon exercise of the Warrants), or in the case of any sale or
conveyance of all or substantially all of the assets of the Company followed by
a related distribution to holders of shares of Common Stock or cash, securities
or other property, then as a condition of such reclassification, change,
consolidation, merger, or sale of assets, the Company or such successor
corporation or entity, as the case may be, shall forthwith make lawful and
adequate provision whereby the Warrant Holder shall have the right thereafter to
receive on exercise of the Warrants (provided such exercise occurs prior to 5:00
p.m. (New York City time) on the Underlying Share Expiration Date) the kind and
amount of shares of stock and other securities and property receivable upon such
reclassification, change, consolidation, merger, or sale of assets, by a holder

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of shares of Common Stock immediately prior to such reclassification, change,
consolidation, merger, or sale of assets, and the Company or such successor
corporation or entity shall enter into a supplemental warrant agreement with the
Warrant Holder so providing. Such provisions shall include provision for
adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 4. If the issuer of securities
deliverable upon exercise of the Warrants under the supplemental warrant
agreement is an affiliate of the formed or surviving corporation or other
entity, that issuer shall join in the supplemental warrant agreement. The above
provisions of this paragraph (b) shall similarly apply to successive
reclassification and changes of shares of Common Stock and to successive
consolidations or mergers.

                        (c) Issuance of Options or Convertible Securities. In
the event the Company shall, at any time or from time to time after the date
hereof, but prior to 5:00 p.m. (New York City time) on the Underlying Share
Expiration Date, issue, sell, distribute or otherwise grant in any manner
(including by assumption) any rights to subscribe for or to purchase, or any
warrants or options for the purchase of, Common Stock or any stock or securities
convertible into or exchangeable for Common Stock (any such rights, warrants or
options being herein called "Options" and any such convertible or exchangeable
stock or securities being herein called "Convertible Securities"), whether or
not such Options or rights to convert or exchange such Convertible Securities
are immediately exercisable, and the price per share at which Common Stock is
issuable upon the exercise of such Options or upon the conversion or exchange of
such Convertible Securities (determined by dividing (1) the aggregate amount, if
any, received or receivable by the Company as consideration for the issuance,
sale, distribution or granting of such Options or such Convertible Securities,
plus the minimum aggregate amount of additional consideration, if any, payable
to the Company upon the exercise of all such Options or upon conversion or
exchange of all such Convertible Securities, plus, in the case of Options to
acquire Convertible Securities, the minimum aggregate amount of additional
consideration, if any, payable upon the conversion or exchange of all such
Convertible Securities, by (2) the total maximum number of shares of Common
Stock issuable upon the exercise of all such Options or upon the conversion or
exchange of all such Convertible Securities or upon the conversion or exchange
of all Convertible Securities issuable upon the exercise of all such Options)
shall be less than the current market price per share of the Common Stock on the
record date that the Company becomes obligated to make such issuance, sale,
distribution or granting of such Options or Convertible Securities (any such
event being herein called an "Option Issuance"), then, effective upon such
Option Issuance:

                                (1) the Underlying Share Purchase Price shall be
reduced to the price (calculated to the nearest one tenth of one cent ($0.001))
determined by multiplying the Underlying Share Purchase Price in effect
immediately prior to such Option Issuance by a fraction, the numerator of which
shall be the sum of (X) the number of shares of Common Stock outstanding
(exclusive of any treasury shares) immediately prior to such Option Issuance
multiplied by the current market price per share of Common Stock on the date of
such Option Issuance, plus (Y) the consideration, if any, received by the
Company upon such Option Issuance, and the denominator of which shall be the
product of (A) the total number of shares of Common Stock outstanding (exclusive
of any treasury shares) immediately after such Option Issuance, multiplied by
(B) the current market price per share of Common Stock on the record date for
such Option Issuance; and

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                                (2) the number of Underlying Shares purchasable
upon the exercise of the Warrants shall be increased to a number determined by
multiplying the number of Underlying Shares so purchasable immediately prior to
the record date for such Option Issuance by a fraction, the numerator of which
shall be the Underlying Share Purchase Price in effect immediately prior to the
adjustment required by clause (i) of this Section 4(c) and the denominator of
which shall be the Underlying Share Purchase Price in effect immediately after
such adjustment.

                For purposes of the foregoing, the total maximum number of
shares of Common Stock issuable upon exercise of all such Options or upon
conversion or exchange of all such Convertible Securities or upon the conversion
or exchange of the total maximum amount of the Convertible Securities issuable
upon the exercise of all such Options shall be deemed to have been issued as of
the date of such Option Issuance and thereafter shall be deemed to be
outstanding and the Company shall be deemed to have received as consideration
therefor such price per share, determined as provided above. Except as provided
in paragraphs (j) and (k) below, no additional adjustment of the Underlying
Share Purchase Price shall be made upon the actual exercise of such Options or
upon conversion or exchange of the Convertible Securities or upon the conversion
or exchange of the Convertible Securities issuable upon the exercise of such
Options.

                        (d) Dividends and Distributions. In the event the
Company shall, at any time or from time to time after the date hereof, but prior
to 5:00 p.m. (New York City time) on the Underlying Share Expiration Date,
distribute to all the holders of Common Stock any dividend or other distribution
of cash, evidences of its indebtedness, other securities or other properties or
assets (in each case other than (1) dividends payable in Common Stock, Options
or Convertible Securities and (2) any cash dividend that, when added to all
other cash dividends paid in the one year prior to the declaration date of such
dividend, does not exceed 5% of the current market price per share of Common
Stock on such declaration date), or any options, warrants or other rights to
subscribe for or purchase any of the foregoing, then:

                                (1) the Underlying Share Purchase Price shall be
decreased to a price determined by multiplying the Underlying Share Purchase
Price then in effect by a fraction, the numerator of which shall be the current
market price per share of Common Stock on the record date for such distribution
less the sum of (X) the cash portion per share, if any, of such distribution of
Common Stock outstanding (exclusive of any treasury shares) on the record date
for such distribution plus (Y) the then fair market value per share (as
determined in good faith by the Board of Directors of the Company) of Common
Stock outstanding (exclusive of any treasury shares) on the record date for such
distribution of that portion, if any, of such distribution consisting of
evidences of indebtedness, other securities, properties assets, options,
warrants or subscription of purchase rights, and the denominator of which shall
be such current market price per share of the Common Stock on the record date
for such distribution; and

                                (2) the number of Underlying Shares purchasable
upon the exercise of the Warrants shall be increased to a number determined by
multiplying the number of Underlying Shares so purchasable immediately prior to
the record date for such distribution by a fraction, the numerator of which
shall be the Underlying Share Purchase Price in effect immediately

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prior to the adjustment required by clause (i) of this sentence and the
denominator of which shall be the Underlying Share Purchase Price in effect
immediately after such adjustment.

                The adjustments required by this paragraph (d) shall be made
whenever any such distribution occurs retroactive to the record date for the
determination of stockholders entitled to receive such distribution.

                        (e) Sale of Common Stock Below its Current Market Price.
In the event the Company shall, at any time or from time to time after the date
hereof, issue or sell any shares of Common Stock and the price per share at
which such shares were issued or sold shall be less than the current market
price per share of the Common Stock on the date the Company becomes obligated to
make such issuance or sale, then, effective upon such issuance or sale:

                                (1) the Underlying Share Purchase Price shall be
reduced to the price (calculated to the nearest one tenth of one cent ($0.001))
determined by multiplying the Underlying Share Purchase Price in effect
immediately prior to such issuance or sale by a fraction, the numerator of which
shall be the sum of (A) the number of shares of Common Stock outstanding
(exclusive of any treasury shares) immediately prior to such issuance or sale
multiplied by the current market price per share of Common Stock on the date of
such issuance or sale, plus (B) the consideration received by the Company upon
such issuance or sale, and the denominator of which shall be the product of (X)
the total number of shares of Common Stock outstanding (exclusive of any
treasury shares) immediately after such issuance or sale, multiplied by (Y) the
current market price per share of Common Stock on the date of such issuance or
sale; and

                                (2) the number of Underlying Shares purchasable
upon the exercise of the Warrants shall be increased to a number determined by
multiplying the number of Underlying Shares so purchasable immediately prior to
the date of such issuance or sale by a fraction, the numerator of which shall be
the Underlying Share Purchase Price in effect immediately prior to the
adjustment required by clause (i) of this sentence and the denominator of which
shall be the Underlying Share Purchase Price in effect immediately after such
adjustment.

                        (f) Current Market Price. For the purpose of any
computation of current market price under this Section 4 and Section 5(b)
hereof, the current market price per share of the Common Stock at any date shall
be (x) for purposes of Section 5(b) and any Options granted to the Company's
directors and officers under the Stock Option Plan, the closing price on the
Business Day immediately prior to the exercise of the Warrants or the grant of
any such Options and (y) in all other cases, the average of the daily closing
prices for the thirty (30) consecutive trading days immediately preceding the
date in question. The closing price for any day shall be the last reported sale
price or, in case no such reported sale takes place on such day, the average of
the closing bid and asked prices for such day, in each case (1) on the principal
national securities exchange on which the shares of Common Stock are listed or
to which such shares are admitted to trading or (2) if the Common Stock is not
listed or admitted to trading on a national securities exchange, in the
over-the-counter market as included for quotation on Nasdaq or any comparable
system or (3) if the Common Stock is not included for quotation on Nasdaq or a
comparable system, as furnished by two members of the National Association of
Securities Dealers, Inc. selected from time to time in good faith by the Board
of Directors of the Company for that purpose. In the absence of all of the
foregoing, or if for any

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reason the current market price per share cannot be determined pursuant to the
foregoing provisions of this paragraph (f), the current market price per share
shall be the fair market value thereof as determined in good faith by the Board
of Directors of the Company.

                        (g) Intentionally omitted.

                        (h) Consideration Received. If any shares of Common
Stock, Options or Convertible Securities shall be issued, sold or distributed
for consideration other than cash, the amount of the consideration other than
cash received by the Company in respect thereof shall be deemed to be the then
fair market value of such consideration (as determined in good faith by the
Board of Directors of the Company). If any Options shall be issued in connection
with the issuance and sale of other securities of the Company, together
comprising one transaction in which no specific consideration is allocated to
such Options by the parties thereto, such Options shall be deemed to have been
issued without consideration. If the Company shall pay a dividend or make any
other distribution payable in Options or Convertible Securities, then such
Options or Convertible Securities shall be deemed to have been issued or sold
without consideration.

                        (i) Deferral of Certain Adjustments. No adjustment to
the Underlying Share Purchase Price (including the related adjustment to the
number of Underlying Shares) shall be required hereunder unless such adjustment,
together with other adjustments carried forward as provided below, would result
in an increase or decrease of at least one percent (1%) of the Underlying Share
Purchase Price; provided that any adjustments which by reason of this paragraph
(i) are not required to be made shall be carried forward and taken into account
in any subsequent adjustment. No adjustment need be made for a change in the par
value of the Common Stock. All calculations under this Section 4 shall be made
to the nearest one tenth of one cent ($0.001) or to the nearest whole share, as
the case may be.

                        (j) Changes in Options and Convertible Securities. If
the exercise price provided for in any Options referred to in paragraph (c)
above, the additional consideration, if any, payable upon the conversion or
exchange of any Convertible Securities referred to in paragraph (c) above, or
the rate at which any Convertible Securities referred to in paragraph (c) above
are convertible into or exchangeable for Common Stock shall change at any time
(other than under or by reason of provisions designed to protect against
dilution upon an event which results in a related adjustment pursuant to this
Section 4), the Underlying Share Purchase Price then in effect and the number of
Underlying Shares purchasable upon the exercise of the Warrants shall forthwith
be readjusted (effective only with respect to any exercise of the Warrants after
such readjustment) to the Underlying Share Purchase Price and number of
Underlying Shares so purchasable that would then be in effect had the adjustment
made upon the issuance, sale, distribution or granting of such Options or
Convertible Securities been made based upon such changed purchase price,
additional consideration or conversion rate, as the case may be, but only with
respect to such Options and Convertible Securities as then remain outstanding.

                        (k) Expiration of Options and Convertible Securities.
If, at any time after any adjustment to the number of Underlying Shares
purchasable upon the exercise of the Warrants shall have been made pursuant to
paragraph (c) or (j) above or this paragraph (k), any Options or Convertible
Securities shall have expired unexercised, the number of Underlying Shares so

                                      -11-
<PAGE>   12

purchasable with respect to any then outstanding Warrants shall, upon such
expiration, be readjusted and shall thereafter be such as they would have been
had the Warrants outstanding at the time of the original adjustment been
adjusted (or had the original adjustment not been required, as the case may be)
as if (i) the only shares of Common Stock deemed to have been issued in
connection with such Options or Convertible Securities were the shares of Common
Stock, if any, actually issued or sold upon the exercise of such Options or
Convertible Securities and (ii) such shares of Common Stock, if any, were issued
or sold for the consideration actually received by the Company upon such
exercise plus the aggregate consideration, if any, actually received by the
Company for the issuance, sale, distribution or granting of all such Options or
Convertible Securities, whether or not exercised; provided that no such
readjustment shall have the effect of decreasing the number of such Underlying
Shares so purchasable by an amount (calculated by adjusting such decrease to
account for all other adjustments made pursuant to this Section 4 following the
date of the original adjustment referred to above) in excess of the amount of
the adjustment initially made in respect of the issuance, sale, distribution or
granting of such Options or Convertible Securities.

                        (l) Other Adjustments. In the event that at any time, as
a result of an adjustment made pursuant to this Section 4, the Warrant Holder
shall become entitled to receive any securities of the Company other than
Underlying Shares, thereafter the number of such other securities so receivable
upon exercise of the Warrants and the Underlying Share Purchase Price applicable
to such exercise shall be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect
to the shares of Common Stock contained in this Section 4.

                        (m) Common Stock. As used in this Section 4, the term
"Common Stock" shall mean and include the Common Stock issued and outstanding on
the date hereof and shall also include any capital stock of any class of the
Company thereafter authorized for issuance that is not limited to a fixed sum or
percentage in respect of the rights of the holders thereof to participate in
dividends and in the distribution of assets upon the voluntary liquidation,
dissolution or winding up of the Company; provided, however, that the Underlying
Shares shall include only shares of such class designated in the Company's
Certificate of Incorporation as Common Stock or (i) in the case of any
reclassification, change, consolidation, merger, or sale of assets of the
character referred to in Section 4(b) hereof, the stock, securities or property
provided for in such section or (ii) in the case of any reclassification or
change in the number of Underlying Shares as a result of a subdivision or
combination or consisting of a change in par value, or from par value to no par
value, or from no par value to par value, such Underlying Shares as so
reclassified or changed.

                        (n) Determination of Net Sales Price. In case of the
sale for cash of any shares of Common Stock, Options, or Convertible Securities,
the consideration received by the Company therefor shall be deemed to be the net
sales price therefor (after deducting therefrom any expense paid or incurred by
the Company or any underwriting discounts or commissions or concessions paid or
allowed by the Company in connection therewith).

                        (o) Events Resulting in no Adjustments. No adjustment to
the Underlying Share Purchase Price or to the number of Underlying Shares,
however, will be made

                                      -12-
<PAGE>   13

upon (i) the exercise of any stock options issued under the Company's Stock
Option Plan (the "Stock Option Plan") to officers, directors and employees of
the Company under the terms of such plans as they exist on the date hereof, (ii)
the exercise of any warrants by officers and directors of the Company that are
outstanding as of the date hereof, or (iii) the sale of any shares of Common
Stock pursuant to the exercise of the Warrants (collectively, the "Exempt
Securities").

                        (p) Notice of Change in Underlying, Share Purchase
Price. Upon any adjustment pursuant to this Section 4, the Company shall
promptly thereafter (i) cause to be prepared a certificate of the President and
Chief Financial Officer of the Company setting forth the Underlying Share
Purchase Price after such adjustment and setting forth in reasonable detail the
method of calculation and the facts upon which such calculations are based and
setting forth the number of Underlying Shares (or portion thereof) issuable
after such adjustment in the Underlying Share Purchase Price, upon exercise of
the Warrants and payment of the adjusted Underlying Share Purchase Price, which
certificate shall be conclusive evidence of the correctness of the matters set
forth therein absent manifest error, provided that if the Warrant Holder
requests, the Company shall engage a firm of independent public accountants of
recognized standing selected by the Board of Directors of the Company (who may
be the regular auditors of the Company) to prepare and file such certificate in
lieu of the certificate of the President and Chief Financial Officer, in which
case such certificate shall be conclusive evidence of the matters set forth
therein absent manifest error, and (ii) send to the Warrant Holder at the
address appearing on the registry books maintained by the Company written notice
of such adjustments by first-class mail, postage prepaid.

                        (q) Notice of Certain Events. With respect to any Notice
Event, the Company shall cause to be given to the Warrant Holder at such Warrant
Holder's address on the registry books maintained by the Company, at least 20
days prior to the applicable record date hereinafter specified, or in the case
of events for which there is no record date, at least fifteen (15) days prior to
the taking of such proposed action, by certified mail, return receipt requested,
postage prepaid, a written notice stating (i) the date as of which the holders
of record of shares of Common Stock entitled to receive any such rights,
options, warrants or distribution is to be determined, (iii) the initial
expiration date set forth in any tender offer or exchange offer for shares of
Common Stock, or (iii) the date on which any such consolidation, merger,
conveyance, transfer, dissolution, liquidation or winding up is expected to
become effective or consummated and the date as of which it is expected that
holders of record of shares of Common Stock shall be entitled to exchange such
shares for securities or other property, if any, deliverable upon such
reclassification, consolidation, merger, conveyance, transfer, dissolution,
liquidation or winding up. The failure to give the notice required by this
Section 4(q) or any defect therein shall not affect the legality or validity of
any distribution, right, option, warrant, consolidation, merger, conveyance,
transfer, dissolution, or liquidation or winding up, or the vote upon any
action, provided that the Warrant Holder shall retain any right to damages from
the Company with respect to such failure.

                SECTION 5. Other Provisions Relating to Rights of the Warrant
Holder

                        (a) Warrant Holder not a Stockholder. The Warrant
Holder, as such, shall not be entitled to vote or receive dividends or be deemed
holders of Common Stock for any purpose whatsoever, nor shall anything contained
in this Agreement be construed to confer upon the

                                      -13-
<PAGE>   14

Warrant Holder, as such, any of the rights of a stockholder of the Company
including, but not limited to, the right to vote for the election of directors
or on any other matter, give or withhold consent to any action by the Company
(whether upon any recapitalization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings or
other action affecting stockholders (except for notices provided for in this
Agreement), receive dividends or subscription rights, or otherwise until
Warrants shall have been exercised to purchase Underlying Shares, at which time
the person or persons in whose name or names the certificate or certificates for
the shares of Common Stock are registered shall be deemed the holder or holders
of record of such shares of Common Stock for all purposes.

                        (b) Fractional Shares. Anything contained herein to the
contrary notwithstanding, the Company shall not be required to issue any
fractional shares of Common Stock in connection with the exercise of the
Warrants. In any case where the Warrant Holder would, except for the provisions
of this Section 5(b), be entitled under the terms of this Agreement to receive a
fraction of a share of Common Stock upon the exercise of the Warrants, the
Company shall, upon the exercise of the Warrants and receipt of the Underlying
Share Purchase Price, issue the largest number of whole shares of Common Stock
purchasable upon exercise of the Warrants. The Warrant Holder expressly waives
his or her right to receive a certificate of any fraction of a share of Common
Stock upon the exercise hereof. However, with respect to any fraction of a share
of Common Stock called for upon any exercise hereof, the Company shall pay to
the Warrant Holder an amount in cash equal to such fraction multiplied by the
current market price per share of Common Stock determined pursuant to Section
4(f) hereof.

                        (c) Absolute Owner. Prior to due presentment for
registration of transfer of the Warrant Certificates, the Company may deem and
treat the Warrant Holder as the absolute owner of the Warrants for the purpose
of any exercise thereof and for all other purposes and the Company shall not be
affected by any notice to the contrary.

                SECTION 6. Division, Split-Up, Combination, Exchange and
Transfer of Warrants

                        (a) Request. The Warrants may be divided, split up,
combined or exchanged for other Warrants of like tenor to purchase a like
aggregate number of Underlying Shares. If the Warrant Holder desires to divide,
split up, combine or exchange the Warrants, he or she shall make such request in
writing delivered to the Company at its office in 2 South Point Drive, Lake
Forest, California, or as otherwise directed by the Company in writing, and
shall surrender such Warrant Certificates to be so divided, split up, combined
or exchanged at said office. Upon any such surrender for a division, split-up,
combination or exchange, the Company shall execute and deliver to the person
entitled thereto a new Warrant Certificate(s) as so requested. The Company may
require the Warrant Holder to pay a sum sufficient to cover any tax,
governmental or other charge that may be imposed in connection with any
division, split-up, combination or exchange of the Warrants.

                        (b) Initial Issuance to Lender. The Company shall issue
the right to purchase one hundred thousand (100,000) Underlying Shares to
Lender, subject to adjustment as provided herein, as represented by a Warrant
Certificate issued to Lender in the form attached hereto as Exhibit A or to
Lender's designee or such officers of Lender as Lender may direct.

                                      -14-
<PAGE>   15

                        (c) Assignment; Replacement of Warrant Certificates.
Subject to the provisions of Section 6(d) hereof, the Warrants may be sold,
transferred, assigned or hypothecated by Lender at any time, in whole or in
part, subject to compliance with federal and state securities laws. Any division
or assignment permitted of the Warrants shall be made by surrender of the
Warrant Certificates to the Company at its principal office with the Form of
Assignment attached as Exhibit C hereto duly executed. In such event, the
Company shall, without charge, execute and deliver a new Warrant Certificate in
the name of the assignee named in such instrument of assignment and the
surrendered Warrant Certificates shall promptly be canceled. Upon receipt by the
Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of the Warrant Certificates and (in the case of loss, theft or
destruction) of reasonably satisfactory indemnification, and (in the case of
mutilation) upon surrender and cancellation of such Warrant Certificates, the
Company will execute and deliver a new Warrant Certificate of like tenor and
date and any such lost, stolen or destroyed Warrant Certificates shall thereupon
become void.

                        (d) Right of First Offer. Subject to the terms and
conditions specified in this Section 6(d), the Warrant Holder hereby grants to
the Company a right of first offer with respect to future transfers by the
Warrant Holder of: (i) the Warrants or (ii) units, consisting of the Warrants
and all or any part of the unpaid principal amount of indebtedness outstanding
under the Loan Agreement ("Units"), to an entity that is known at the time of
the transfer to be a direct competitor of the Company. In the case of Units, the
Warrants may not be obtained by the Company separately from the corresponding
indebtedness.

                Each time the Warrant Holder proposes to offer any Warrants or
Units to an entity that is known at the time of the transfer to be a direct
competitor of the Company, the Warrant Holder shall first make an offering of
such Warrants and/or Units to the Company in accordance with the following
provisions:

                                (1) The Warrant Holder shall deliver a Notice,
pursuant to the provisions of Section 7(b) hereof, to the Company stating (i)
its bona fide intention to offer such Warrants and/or Units, (ii) the number of
such Warrants and/or Units to be offered, and (iii) the price and terms, if any,
upon which it proposes to offer such Warrants and/or Units.

                                (2) By written notification received by the
Warrant Holder, within five calendar days after the giving of the Notice, the
Company may elect to purchase or obtain, at the price and on the terms specified
in the Notice, all of such Warrants and/or Units.

                                (3) If the Company does not elect to obtain all
of the Warrants and/or Units referred to in the Notice which it is entitled to
obtain pursuant to this Section 6(d), the Warrant Holder may, during the 60-day
period following the expiration of the period provided in Section 6(d)(2)
hereof, offer the Warrants and/or Units to any person or persons at a price not
less than, and upon terms no more favorable to the offeree than those specified
in the Notice. If the Warrant Holder does not enter into an agreement for the
sale of the Warrants and/or Units within such period, or if such agreement is
not consummated within 60 days of the execution thereof, the right provided
hereunder shall be deemed to be revived and such Warrants and or Units shall not
be offered to any entity that is known at the time of such transfer to be a
direct competitor of the Company unless first reoffered to the Company in
accordance herewith.

                                      -15-
<PAGE>   16

                SECTION 7. Other Matters

                        (a) Taxes and Charges. The Company will from time to
time promptly pay, subject to the provisions of paragraph (5) of Section 2(b),
all taxes and charges that may be imposed upon the Company in respect of the
issuance or delivery of the Warrants or the Underlying Shares.

                        (b) Notices. Notice or demand pursuant to this Agreement
to be given or made by the Warrant Holder to or on the Company shall be
sufficiently given or made if delivered or sent by registered or certified mail,
postage prepaid, return receipt requested, and addressed, until another address
is designated in writing by the Company, or by facsimile transmission, as
follows:

                             Futurelink Corp.
                             2 South Point Drive
                             Lake Forest, California 92630
                             Attn: Ross Vincenti, Esq.
                             Fax No. (949) 672-3117

                             with a copy to:

                             Paul Hastings Janofsky & Walker, LLP
                             399 Park Avenue, 31st Floor
                             New York, New York 10022
                             Attn:  Tom Pollock, Esq.
                             Fax No. (212) 319-4090

                Notices to the Warrant Holder provided for in this Agreement
shall be deemed given or made by the Company if delivered or sent by mail,
certified or registered, return receipt requested, postage prepaid, or overnight
courier or facsimile transmission addressed to the Warrant Holder at his or her
last known address or facsimile number as shall appear on the registry books of
the Company and at the following address for Lender:

                             Foothill Capital Corporation
                             2450 Colorado Boulevard
                             Suite 3000 West
                             Santa Monica, California 90404
                             Attention:  Business Finance Division, Manager
                             Facsimile No.: (310) 453-7413

                             With a copy to:

                             Brobeck, Phleger & Harrison, LLP
                             550 South Hope Street
                             Los Angeles, California 90071-2604

                                      -16-
<PAGE>   17

                             Attention: John F. Hilson, Esq.
                             Facsimile No.: (213) 745-3345

                        (c) Governing Law. The validity, interpretation and
performance of this Agreement shall be governed by the laws of the State of
California without giving effect to the conflicts of laws and principles
thereof.

                        (d) WAIVER OF JURY TRIAL. THE COMPANY WAIVES (A) THE
RIGHT TO TRIAL BY JURY (WHICH THE WARRANT HOLDER HEREBY ALSO WAIVES) IN ANY
ACTION, SUIT, PROCEEDING, OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED
TO THIS AGREEMENT, THE WARRANT, THE WARRANT CERTIFICATE OR THE REGISTRATION
RIGHTS AGREEMENT. THE COMPANY WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THE
FOREGOING WAIVER WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

                        (e) Exclusive Benefit. Nothing in this Agreement
expressed or nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or
corporation other than the Company, Lender and the Warrant Holder any right,
remedy or claim hereunder, and all covenants, conditions, stipulations, promises
and agreements contained in this Agreement shall be for the sole and exclusive
benefit of such persons and their successors, survivors and permitted assigns
hereunder. This Agreement is for the benefit of and is enforceable by any
subsequent Warrant Holder.

                        (f) Headings. The article headings herein are for
convenience only and are not part of this Agreement and shall not affect the
interpretation hereof.

                  [Remainder of page left intentionally blank.]

                                      -17-
<PAGE>   18

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

                                            FUTURELINK CORP.

                                            By: /s/ COREY E. FISCHER
                                               ---------------------------------
                                                 Name: Corey E. Fischer
                                                 Title: Vice President

                                            FOOTHILL CAPITAL CORPORATION

                                            By: /s/ WILLIAM SHIAO
                                               ---------------------------------
                                                 Name: William Shiao
                                                 Title: Vice President

                                      S-1
<PAGE>   19

                                    EXHIBIT A

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT, (II) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT
(OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES),
OR (III) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY
TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
AVAILABLE.

No. ___________

                               WARRANT CERTIFICATE

                                FUTURELINK CORP.

                This warrant certificate certifies that FOOTHILL CAPITAL CORP.,
or its registered assigns, is the registered holder of Warrants representing the
right to purchase one hundred thousand (100,000) shares (the "Underlying
Shares") of common stock, par value $0.0001 per share (the "Common Stock") of
FUTURELINK, CORP. (the "Company") in accordance with the terms of that certain
Warrant Agreement dated November __, 2000 between the Company and Foothill
Capital Corporation (the "Warrant Agreement"). The Warrants with respect to the
Underlying Shares expire on November __, 2010 (the "Underlying Share Expiration
Date"), or on such expiration dates as may be extended pursuant to the terms of
the Warrant Agreement. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in the Warrant Agreement.

                The Warrants entitle the registered holder, upon exercise from
time to time from 9:00 a.m. New York City time on or after November __, 2000
until 5:00 p.m. New York City time on the Underlying Share Expiration Date to
purchase Underlying Shares at an exercise price per Underlying Share equal to
eight dollars and forty cents ($8.40) (the "Underlying Share Purchase Price") in
lawful money of the United States of America upon surrender of this certificate
and payment of the Underlying Share Purchase Price in accordance with the terms
of the Warrant Agreement. The Underlying Share Purchase Price, the number of
Underlying Shares issuable upon exercise of the Warrants are subject to
adjustment upon the occurrence of certain events set of in the Warrant
Agreement.

                                      A-1
<PAGE>   20

                The Warrants with respect to the Underlying Shares may not be
exercised after 5:00 p.m. on the Underlying Share Expiration Date, and to the
extent not exercised by such time such Warrants shall become void.

                This warrant certificate shall be governed by and construed in
accordance with the laws of the State of California, without regard to conflicts
of laws and principles thereof.

                IN WITNESS WHEREOF, FutureLink Corp. has caused this warrant
certificate to be signed by its duly authorized officers.

Dated:
      --------------------
                                                 FUTURELINK CORP.

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

                                      A-2
<PAGE>   21

                                    EXHIBIT B

                             CASHLESS EXERCISE FORM

To be executed upon exercise of Warrants pursuant to Section 2(c) of the Warrant
Agreement.

                The undersigned hereby irrevocably elects to surrender
___________ shares purchasable under the Warrants for such shares of Common
Stock issuable in exchange therefor pursuant to the Cashless Exercise provisions
of the within Warrants, as provided for in Section 2(c) of such Warrant
Agreement.

                Please issue a certificate or certificates for such Common Stock
in the name of, and pay cash for fractional shares in the name of:

--------------------------------------------------------------------------------

           (Please print name, address, and social security number/tax
                            identification number:)

--------------------------------------------------------------------------------

and, if said number of shares of Common Stock shall not be all the shares of
Common Stock purchasable thereunder, then a new Warrant Certificate for the
balance remaining of the shares of Common Stock purchasable under the within
Warrants shall be registered in the name of the undersigned Warrant Holder or
its transferee as below indicated and delivered to the address stated below.

Dated:
      --------------------

Name of Warrant Holder
or transferee:
              ------------------------------------------------------------------
                                 (Please print)

Address:
        ------------------------------------------------------------------------

Signature:
          ----------------------------------------------------------------------

               NOTE: Signature must conform to the name of Warrant Holder as
               specified on the face of the Warrants or with the name of the
               transferee appearing in the form of assignment attached as
               Exhibit C to the Warrant Agreement.

                                      B-1
<PAGE>   22

                                    EXHIBIT C

                               FORM OF ASSIGNMENT

                For value received, the undersigned hereby sells, assigns and
transfers unto ________________, whose address is
_____________________________________________ and whose social security or other
identifying number is ________________, the right to purchase Underlying Shares
evidenced by the within Warrants, and hereby irrevocably constitutes and
appoints the Secretary of FutureLink Corp. (the "Company") as his, her or its
attorney-in-fact to transfer the same on the books of the Company with full
power of substitution and re-substitution. If said number of Underlying Shares
is less than all of the Underlying Shares purchasable hereunder, the undersigned
requests that a new warrant certificate representing the right to purchase the
balance of such Underlying Shares be registered in the name of
_________________, whose address is _________________________________________,
whose social security or other identifying number is ______________, and that
such warrant certificate be delivered to __________________, whose address is
____________________________________________.

Date:                                             [Transferor Name]
     -------------------

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

                                      C-1
<PAGE>   23

                                    EXHIBIT D

                                SUBSCRIPTION FORM

                The undersigned hereby irrevocably elects to exercise the right,
represented by this warrant certificate, to purchase _________________
Underlying Shares and [tenders payment herewith in the amount $_____________]
[or] [makes payment therefor by application pursuant to Section 2(b)(ii) of the
Warrant of $_______ aggregate principal amount of the outstanding indebtedness
under the Loan and Security Agreement] [or] [makes payment therefor by delivery
of the following Common Stock Certificates of the Company (properly endorsed for
transfer in blank) for cancellation by the Company pursuant to Section 2(b)(iii)
of the Warrant, certificates of which are attached hereto for cancellation [list
certificates by number and amount]. The undersigned requests that a certificate
for such Underlying Shares be registered in the name of _______________, whose
address is _______________________________________________, and whose social
security or other identifying number is ____________, and that such Underlying
Shares be delivered to ___________________, whose address is
__________________________________________. If said number of Underlying Shares
is less than all of the Underlying Shares purchasable hereunder, the undersigned
requests that a new warrant certificate representing the right to purchase the
balance of such Underlying Shares be registered in the name of _______________,
whose address is ______________________________________________ and whose social
security or other identifying number is ________________, and that such warrant
certificate be delivered to ______________, whose address is
_____________________________________________.

Date:                                             [Warrant Holder]
     -------------------

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

                                      D-1<PAGE>   1

                                                                   EXHIBIT 10.63

                          REGISTRATION RIGHTS AGREEMENT

                                 by and between

                                FUTURELINK CORP.

                                       and

                         The INITIAL HOLDER Specified on
                           the Signature Pages Hereof

                          Dated as of November 16, 2000

                                       1
<PAGE>   2

             REGISTRATION RIGHTS AGREEMENT (the "Agreement") dated as of
November 16, 2000, by and between FutureLink Corp., a Delaware corporation (the
"Company"), and the holders specified on the signature pages to this Agreement.

                              W I T N E S S E T H :

             WHEREAS, simultaneously herewith, the Company, and the lenders that
are signatories thereto (the "Lenders") have entered into a Loan and Security
Agreement, dated as of the date hereof (the "Loan and Security Agreement").

             WHEREAS, in order to induce the Lenders to enter into the Loan and
Security Agreement, the Company is issuing and delivering to Foothill Capital
Corporation ("Foothill") or their nominees or assignees (the "Initial Holder")
warrants (the "Warrants") to purchase Common Shares (the Common Shares issued or
issuable upon exercise of the Warrants are hereinafter referred to as the
"Warrant Shares"), and the Company has further agreed to provide certain
registration rights in respect of the Registrable Securities (as defined below)
on the terms and subject to the conditions set forth herein.

             NOW, THEREFORE, in consideration of the premises and of the mutual
agreements contained herein and for other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound hereby, the Company hereby agrees with the Initial Holders as
follows:

             1. Definitions. As used in this Agreement, the following terms
shall have the following meanings:

             "Affiliate" shall mean (i) with respect to any Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such Person, and (ii) with respect to any
individual, shall also mean the spouse, sibling, child, step-child, grandchild,
niece, nephew or parent of such Person, or the spouse thereof.

             "Blackout Period" shall have the meaning set forth in Section 2.6.

             "Common Shares" shall mean shares of common stock, par value $.0001
per share, of the Company.

             "Company" shall have the meaning set forth in the preamble.

             "Demand Registration" shall mean a registration required to be
effected by the Company pursuant to Section 2.1.

             "Demand Registration Statement" shall mean a registration statement
of the Company which covers the Registrable Securities requested to be included
therein pursuant to the provisions of Section 2.1 and all amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference (or deemed to be incorporated by
reference) therein.

                                       2
<PAGE>   3

             "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and the rules and regulations thereunder, or any
successor statute.

             "Holders" shall mean the Initial Holders for so long as they are
the registered owners of any Registrable Securities and such of their respective
heirs, successors and permitted assigns (including any permitted transferees of
Registrable Securities) who acquire or are otherwise the transferee of
Registrable Securities, directly or indirectly, from such Initial Holders (or
any subsequent Holders), for so long as such heirs, successors and permitted
assigns are the registered owner of any Registrable Securities. For purposes of
this Agreement, a Person will be deemed to be a Holder whenever such Person
holds an option to purchase, or a security convertible into or exercisable or
exchangeable for, Registrable Securities, whether or not such purchase,
conversion, exercise or exchange has actually been effected and disregarding any
legal restrictions upon the exercise of such rights. Registrable Securities
issuable upon exercise of an option or upon conversion, exchange or exercise of
another security shall be deemed outstanding for the purposes of this Agreement.

             "Holders' Counsel" shall mean one firm of counsel (per
registration) to the Holders of Registrable Securities participating in such
registration, which counsel shall be selected (i) in the case of a Demand
Registration, by the Initiating Holders holding a majority of the Registrable
Securities for which registration was requested in the Request, and (ii) in all
other cases, by the Majority Holders of the Registration.

             "Incidental Registration" shall mean a registration required to be
effected by the Company pursuant to Section 2.2.

             "Incidental Registration Statement" shall mean a registration
statement of the Company, which covers the Registrable Securities requested to
be included therein pursuant to the provisions of Section 2.2 and all amendments
and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference (or deemed to be
incorporated by reference) therein.

             "Initial Holders" shall mean the Persons specified as such on the
signature pages to this Agreement on the date hereof.

             "Initiating Holders" shall mean, with respect to a particular
registration, the Holders who initiated the Request for such registration.

             "Majority Holders" shall mean one or more Holders of Registrable
Securities who would hold a majority of the Registrable Securities then
outstanding.

             "Majority Holders of the Registration" shall mean, with respect to
a particular registration, one or more Holders of Registrable Securities who
would hold a majority of the Registrable Securities to be included in such
registration.

             "NASD" shall mean the National Association of Securities Dealers,
Inc.

             "Loan and Security Agreement" shall have the meaning set forth in
the preamble.

                                       3
<PAGE>   4

             "Person" shall mean any individual, firm, partnership, corporation,
trust, joint venture, association, joint stock company, limited liability
company, unincorporated organization or any other entity or organization,
including a government or agency or political subdivision thereof, and shall
include any successor (by merger or otherwise) of such entity.

             "Prospectus" shall mean the prospectus included in a Registration
Statement (including, without limitation, any preliminary prospectus and any
prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act) and any such Prospectus as amended or
supplemented by any prospectus supplement, and all other amendments and
supplements to such Prospectus, including post-effective amendments, and in each
case including all material incorporated by reference (or deemed to be
incorporated by reference) therein.

             "Redeeming Holders" shall have the meaning set forth in Section
2.1(h).

             "Redemption" shall have the meaning set forth in Section 2.1(h).

             "Redemption Notice" shall have the meaning set forth in Section
2.1(h).

             "Redemption Price" shall have the meaning set forth in Section
2.1(h).

             "Redemption Request" shall have the meaning set forth in Section
2.1(h).

             "Registrable Securities" shall mean (i) any Warrant Shares issued
upon exercise of the Warrants, (ii) any Common Shares otherwise or hereafter
purchased or acquired by the Holders or their Affiliates and (iii) any other
securities of the Company (or any successor or assign of the Company, whether by
merger, consolidation, sale of assets or otherwise) which may be issued with
respect to, in exchange for, or in substitution of, Registrable Securities
referenced in clauses (i) and (ii) above by reason of any dividend or stock
split, combination of shares, merger, consolidation, recapitalization,
reclassification, reorganization, sale of assets or similar transaction. As to
any particular Registrable Securities, such securities shall cease to be
Registrable Securities when (A) a registration statement with respect to the
sale of such securities shall have been declared effective under the Securities
Act and such securities shall have been disposed of in accordance with such
registration statement, (B) such securities are sold pursuant to Rule 144 (or
any similar provisions then in force) under the Securities Act, (C) such
securities have been otherwise transferred, a new certificate or other evidence
of ownership for them not bearing the legend restricting further transfer shall
have been delivered by the Company and subsequent public distribution of them
shall not require registration under the Securities Act, or (D) such securities
shall have ceased to be outstanding.

             "Registration Expenses" shall mean any and all reasonable out of
pocket expenses incident to performance of or compliance with this Agreement by
the Company and its subsidiaries, including, without limitation (i) all SEC,
stock exchange, NASD and other registration, listing and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities
or blue sky laws and compliance with the rules of any stock exchange (including
fees and disbursements of counsel in connection with such compliance and the
preparation of a blue sky memorandum and legal investment survey), (iii) all
printers' fees

                                       4
<PAGE>   5

and costs incurred in printing, distributing, mailing and delivering any
Registration Statement, any Prospectus and any other document relating to the
performance of or compliance with this Agreement, (iv) the fees and
disbursements of counsel for the Company, (v) the fees and disbursements of
Holders' Counsel, (vi) the fees and disbursements of all independent public
accountants (including the expenses of any audit and/or "cold comfort" letters)
and the fees and expenses of other Persons, including experts, retained by the
Company, (vii) the expenses incurred in connection with making road show
presentations and holding meetings with potential investors to facilitate the
distribution and sale of Registrable Securities, (viii) any fees and
disbursements of underwriters customarily paid by issuers or sellers of
securities, (ix) premiums and other costs of policies of insurance against
liabilities arising out of the public offering of the Registrable Securities
being registered, and (x) all internal expenses of the Company (including all
salaries and expenses of officers and employees performing legal or accounting
duties); provided, however, Registration Expenses shall not include discounts
and commissions payable to underwriters, selling brokers, dealer managers or
other similar Persons engaged in the distribution of any of the Registrable
Securities; and provided further, that in any case where Registration Expenses
are not to be borne by the Company, such expenses shall not include salaries of
Company personnel or general overhead expenses of the Company, auditing fees,
premiums or other expenses relating to liability insurance required by
underwriters of the Company or other expenses for the preparation of financial
statements or other data normally prepared by the Company in the ordinary course
of its business or which the Company would have incurred in any event; provided,
further, that in the event the Company shall not register any securities with
respect to which it had given written notice of its intention to register to
Holders, notwithstanding anything to the contrary in the foregoing, all of the
costs incurred by the Holders in connection with such registration shall be
deemed to be Registration Expenses.

             "Registration Statement" shall mean any registration statement of
the Company which covers any Registrable Securities and all amendments and
supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference (or deemed to be
incorporated by reference) therein.

             "Request" shall have the meaning set forth in Section 2.1(a).

             "SEC" shall mean the Securities and Exchange Commission, or any
successor agency having jurisdiction to enforce the Securities Act.

             "Securities Act" shall mean the Securities Act of 1933, as amended
from time to time, and the rules and regulations thereunder, or any successor
statute.

             "Shelf Registration" shall have the meaning set forth in Section
2.1(a).

             "Underwriters" shall mean the underwriters, if any, of the offering
being registered under the Securities Act.

             "Underwritten Offering" shall mean a sale of securities of the
Company to an Underwriter or Underwriters for reoffering to the public.

                                       5
<PAGE>   6

             "Warrant Shares" shall mean the Common Shares or other securities
issued or issuable upon the exercise of the Warrants.

             "Warrants" shall mean the warrants issued to the Initial Holders
pursuant to the Loan and Security Agreement, together with any additional
warrants issued in accordance with the terms thereof.

             "Withdrawn Demand Registration" shall have the meaning set forth in
Section 2.1(a).

             "Withdrawn Request" shall have the meaning set forth in Section
2.1(a).

             2. REGISTRATION UNDER THE SECURITIES ACT.

             2.1 Demand Registration.

             (a) Right to Demand Registration. Subject to Section 2.1(c), at any
time or from time to time, upon receipt of a request in writing from the Holders
of at least 50% of the total Registrable Securities outstanding that the Company
register all or part of such Holders' Registrable Securities (a "Request")
(which Request shall specify the amount of Registrable Securities intended to be
disposed of by such Holders and the intended method of disposition thereof) by
filing with the SEC a Demand Registration Statement. As promptly as practicable,
but no later than 15 days after receipt of a Request, the Company shall give
written notice of such requested registration to all other Holders of
Registrable Securities. Subject to Section 2.1(b), the Company shall include in
a Demand Registration (i) the Registrable Securities intended to be disposed of
by the Initiating Holders and (ii) the Registrable Securities intended to be
disposed of by any other Holder which shall have made a written request (which
request shall specify the amount of Registrable Securities to be registered and
the intended method of disposition thereof) to the Company for inclusion thereof
in such registration within 20 days after the receipt of such written notice
from the Company. Subject to the Company's redemption right pursuant to Section
2.1(h), the Company shall, as expeditiously as possible, following a Request,
use its best efforts to cause to be filed with the SEC a Demand Registration
Statement providing for the registration under the Securities Act of the
Registrable Securities which the Company has been so requested to register by
all such Holders, to the extent necessary to permit the disposition of such
Registrable Securities to be registered in accordance with the intended methods
of disposition thereof specified in such Request or further requests (including,
without limitation, by means of a shelf registration pursuant to Rule 415 under
the Securities Act (a "Shelf Registration") if so requested and if the Company
is then eligible to use such a registration.) The Company shall use its best
efforts to have such Demand Registration Statement declared effective by the SEC
as soon as practicable thereafter and to keep such Demand Registration Statement
continuously effective for the period specified in Section 4.1(b).

             A Request may be withdrawn prior to the filing of the Demand
Registration Statement by the Initiating Holders (a "Withdrawn Request") and a
Demand Registration Statement may be withdrawn prior to the effectiveness
thereof by the Initiating Holders (a "Withdrawn Demand Registration"), and such
withdrawals shall be treated as a Demand Registration which shall have been
effected pursuant to this Section 2.1, unless the Holders of

                                       6
<PAGE>   7

Registrable Securities to be included in such Registration Statement reimburse
the Company for its reasonable out-of-pocket Registration Expenses relating to
the preparation and filing of such Demand Registration Statement (to the extent
actually incurred), in which case such withdrawal shall not be treated as a
Demand Registration effected pursuant to this Section 2.1 (and shall not be
counted toward the number of Demand Registrations); provided, however, that if a
Withdrawn Request or Withdrawn Registration Statement is made (A) because of a
material adverse change in the business, financial condition or prospects of the
Company, or (B) because the sole or lead managing Underwriter advises that the
amount of Registrable Securities to be sold in such offering be reduced pursuant
to Section 2.1(b) by more than 10% of the Registrable Securities to be included
in such Registration Statement, then such withdrawal shall not be treated as a
Demand Registration effected pursuant to this Section 2.1 (and shall not be
counted toward the number of Demand Registrations), and the Company shall pay
all Registration Expenses in connection therewith. Any Holder requesting
inclusion in a Demand Registration may, at any time prior to the effective date
of the Demand Registration Statement (and for any reason) revoke such request by
delivering written notice to the Company revoking such requested inclusion.

             The registration rights granted pursuant to the provisions of this
Section 2.1 shall be in addition to the registration rights granted pursuant to
the other provisions of Section 2 hereof.

             (b) Priority in Demand Registrations. If a Demand Registration
involves an Underwritten Offering, and the sole or lead managing Underwriter, as
the case may be, of such Underwritten Offering shall advise the Company in
writing (with a copy to each Holder requesting registration) on or before the
date five days prior to the date then scheduled for such offering that, in its
opinion, the amount of Registrable Securities requested to be included in such
Demand Registration exceeds the number which can be sold in such offering within
a price range acceptable to the Initiating Holders (such writing to state the
basis of such opinion and the approximate number of Registrable Securities which
may be included in such offering), and the Request is not thereafter withdrawn,
the Company shall include in such Demand Registration, to the extent of the
number which the Company is so advised may be included in such offering, first,
the Registrable Securities requested to be included in the Demand Registration
by the Initiating Holders and second, the Registrable Securities requested to be
included in the Demand Registration by any other Holders, allocated pro rata in
proportion to the number of Registrable Securities requested to be included in
such Demand Registration by each of them. In the event the Company shall not, by
virtue of this Section 2.1(b), include in any Demand Registration all of the
Registrable Securities of any Holder requested to be included in such Demand
Registration, such Holder may, upon written notice to the Company given within
five days of the time such Holder first is notified of such matter, further
reduce the amount of Registrable Securities it desires to have included in such
Demand Registration, whereupon only the Registrable Securities, if any, that it
desires to have included will be so included and the Holders not so reducing
shall be entitled to a corresponding pro rata increase in the amount of
Registrable Securities to be included in such Demand Registration.

             (c) Limitations on Registrations. The rights of Holders of
Registrable Securities to request Demand Registrations pursuant to Section
2.1(a) are subject to the following limitation: in no event shall the Company be
required to effect, in the aggregate, more

                                       7
<PAGE>   8

than two Demand Registrations, provided, however, that such number shall be
increased to the extent the Company (x) does not include in what would otherwise
be the final registration for which the Company is required to pay Registration
Expenses the number of Registrable Securities requested to be registered by the
Holders by reason of Section 2.1(b) or (y) terminates a Shelf Registration
pursuant to Section 2.3 prior to the time that all Registrable Securities
covered by such Shelf Registration have been sold; and provided, further, that
the Registration Expenses in connection with each other Demand Registration
shall be allocated pro rata among all Persons on whose behalf securities of the
Company are included in such registration, on the basis of the respective
amounts of the securities then being registered on their behalf.

             (d) Underwriting; Selection of Underwriters. Notwithstanding
anything to the contrary contained in Section 2.1(a), if the Initiating Holders
so elect, the offering of such Registrable Securities pursuant to such Demand
Registration shall be in the form of a firm commitment Underwritten Offering and
such Initiating Holders may require that all Persons (including other Holders)
participating in such registration sell their Registrable Securities to the
Underwriters at the same price and on the same terms of underwriting applicable
to the Initiating Holders. If any Demand Registration involves an Underwritten
Offering, the sole or managing Underwriters and any additional investment
bankers and managers to be used in connection with such registration shall be
selected by the Company subject to the approval of the Initiating Holders.

             (e) Effective Registration Statement; Suspension. A Demand
Registration Statement shall not be deemed to have become effective (and the
related registration will not be deemed to have been effected) (i) unless it has
been declared effective by the SEC and remains effective in compliance with the
provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such Demand Registration Statement for the
time period specified in Section 4.1(b), (ii) if the offering of any Registrable
Securities pursuant to such Demand Registration Statement is interfered with by
any stop order, injunction or other order or requirement of the SEC or any other
governmental agency or court, or (iii) if, in the case of an Underwritten
Offering, the conditions to closing specified in an underwriting agreement to
which the Company is a party are not satisfied (other than by the sole reason of
any breach or failure by the Holders of Registrable Securities) and are not
otherwise waived.

             (f) Registration Statement Form. Registrations under this Section
2.1 shall be on such appropriate registration form of the SEC (i) as shall be
reasonably selected by the Company, and (ii) which shall be available for the
sale of Registrable Securities in accordance with the intended method or methods
of disposition specified in the requests for registration. The Company agrees to
include in any such Registration Statement all information which any selling
Holder, upon advice of counsel, shall reasonably request.

             (g) Other Registrations. During the period (i) beginning on the
date of a Request and (ii) ending on the date that is 90 days after the date
that a Demand Registration Statement filed pursuant to such Request has been
declared effective by the SEC or, if the Holders shall withdraw such Request or
such Demand Registration Statement, on the date of such Withdrawn Request or
such Withdrawn Registration Statement, the Company shall not, without the
consent of the Initiating Holders, file a registration statement pertaining to
any other securities of the Company.

                                       8
<PAGE>   9

             (h) Redemption Right. As promptly as practicable, but no later than
five days after receipt of a Request, the Company shall give written notice (the
"Redemption Notice") to all Holders of Registrable Securities of its intention
to effect the Demand Registration, or its intention to repurchase the
Registrable Securities in lieu of effecting a Demand Registration (the
"Redemption"). Any Redemption Notice notifying Holders of the Company's
intention to effect a Redemption shall include a determination of the Redemption
Price (as defined below). Pursuant to the Redemption, the Company shall
repurchase (i) the Registrable Securities intended to be disposed of by the
Initiating Holders and (ii) the Registrable Securities intended to be disposed
of by any other Holder which shall have made a written request (the "Redemption
Request," which request shall specify the amount of Registrable Securities to be
disposed of) to the Company for inclusion in the Redemption within 20 days after
the receipt of the Redemption Notice from the Company (such Holders are
collectively referred to as the "Redeeming Holders"). The Company shall, as
expeditiously as possible, but no later than 30 days following a Redemption
Notice, effect the Redemption by paying the Redemption Price in cash to the
Redeeming Holders. The Redeeming Holders shall deliver to the Company the
Registrable Securities upon payment of the Redemption Price. For purposes of
this Section 2.1, "Redemption Price" shall be an amount equal to the average for
the ten (10) consecutive business days immediately prior to the date of the
Request of the daily closing prices of the Common Stock on the principal
national securities exchange on which the Common Stock is admitted to trading or
listed, or if not listed or admitted to trading on any such exchange, the last
reported sales prices as included for quotation on Nasdaq, or if not included
for quotation on Nasdaq, the average of the highest reported bid and lowest
reported asked prices as reported by the National Association of Securities
Dealers, Inc. Automated Quotations System, or if not then publicly traded, the
fair market price of the Common Stock as determined by the Board of Directors of
the Company.

             The Redeeming Holders may withdraw a Redemption Request at any time
prior to the payment of the Redemption Price (a "Withdrawn Redemption Request")
by delivering written notice to the Company revoking such requested inclusion.
Such withdrawal shall be treated as a Demand Registration which shall have been
effected pursuant to this Section 2.1, unless the Redeeming Holders reimburse
the Company for its reasonable out-of-pocket expenses relating to the Company's
preparation for the Redemption.

             2.2 Incidental Registration.

             (a) Right to Include Registrable Securities. If the Company at any
time or from time to time proposes to register any of its securities under the
Securities Act (other than in a registration on Form S-4 or S-8 or any successor
form to such forms and other than pursuant to Section 2.1 or 2.3) whether or not
pursuant to registration rights granted to other holders of its securities and
whether or not for sale for its own account, the Company shall deliver prompt
written notice (which notice shall be given at least 45 days prior to such
proposed registration) to all Holders of Registrable Securities of its intention
to undertake such registration, describing in reasonable detail the proposed
registration and distribution (including the anticipated range of the proposed
offering price, the class and number of securities proposed to be registered and
the distribution arrangements) and of such Holders' right to participate in such
registration under this Section 2.2 as hereinafter provided. Subject to the
other provisions of this paragraph (a) and Section 2.2(b), upon the written
request of any Holder made within 30 days after the receipt of

                                       9
<PAGE>   10

such written notice (which request shall specify the amount of Registrable
Securities to be registered and the intended method of disposition thereof), the
Company shall effect the registration under the Securities Act of all
Registrable Securities requested by Holders to be so registered (an "Incidental
Registration"), to the extent required to permit the disposition (in accordance
with the intended methods thereof as aforesaid) of the Registrable Securities so
to be registered, by inclusion of such Registrable Securities in the
Registration Statement which covers the securities which the Company proposes to
register and shall cause such Registration Statement to become and remain
effective with respect to such Registrable Securities in accordance with the
registration procedures set forth in Section 4. If an Incidental Registration
involves an Underwritten Offering, immediately upon notification to the Company
from the Underwriter of the price at which such securities are to be sold, the
Company shall so advise each participating Holder. The Holders requesting
inclusion in an Incidental Registration may, at any time prior to the effective
date of the Incidental Registration Statement (and for any reason), revoke such
request by delivering written notice to the Company revoking such requested
inclusion.

             If at any time after giving written notice of its intention to
register any securities and prior to the effective date of the Incidental
Registration Statement filed in connection with such registration, the Company
shall determine for any reason not to register or to delay registration of such
securities, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, (A) in
the case of a determination not to register, the Company shall be relieved of
its obligation to register any Registrable Securities in connection with such
registration (but not from its obligation to pay the Registration Expenses
incurred in connection therewith), without prejudice, however, to the rights of
Holders to cause such registration to be effected as a registration under
Section 2.1 or 2.3(a) and (B) in the case of a determination to delay such
registration, the Company shall be permitted to delay the registration of such
Registrable Securities for the same period as the delay in registering such
other securities; provided, however, that if such delay shall extend beyond 120
days from the date the Company received a request to include Registrable
Securities in such Incidental Registration, then the Company shall again give
all Holders the opportunity to participate therein and shall follow the
notification procedures set forth in the preceding paragraph. There is no
limitation on the number of such Incidental Registrations pursuant to this
Section 2.2 which the Company is obligated to effect.

             The registration rights granted pursuant to the provisions of this
Section 2.2 shall be in addition to the registration rights granted pursuant to
the other provisions of Section 2 hereof.

             (b) Priority in Incidental Registration. If an Incidental
Registration involves an Underwritten Offering (on a firm commitment basis), and
the sole or the lead managing Underwriter, as the case may be, of such
Underwritten Offering shall advise the Company in writing (with a copy to each
Holder requesting registration) on or before the date five days prior to the
date then scheduled for such offering that, in its opinion, the amount of
securities (including Registrable Securities) requested to be included in such
registration exceeds the amount which can be sold in such offering without
materially interfering with the successful marketing of the securities being
offered (such writing to state the basis of such opinion and the approximate
number of such securities which may be included in such offering without such

                                       10
<PAGE>   11

effect), the Company shall include in such registration, to the extent of the
number which the Company is so advised may be included in such offering without
such effect, (i) in the case of a registration initiated by the Company, (A)
first, the securities that the Company proposes to register for its own account
(but solely to the extent that the proceeds thereof shall not be used to
purchase shares of common stock of the Company or other securities of the
Company), (B) second, the Registrable Securities requested to be included in
such registration by the Holders, allocated pro rata in proportion to the number
of Registrable Securities requested to be included in such registration by each
of them, and (C) third, other securities of the Company to be registered on
behalf of any other Person, and (ii) in the case of a registration initiated by
a Person other than the Company, (A) first, the Registrable Securities requested
to be included in such registration by any Persons initiating such registration
requested to be included in such registration by any Persons initiating such
registration, (B) second, the Registrable Securities requested to be included in
such registration by the Holders and any other Persons (not including Affiliates
of the Company), allocated pro rata in proportion to the number of securities
requested to be included in such registration by each of them, and (C) third,
the securities that the Company proposes to register for the account of it and
its Affiliates, provided, however, that in the event the Company will not, by
virtue of this Section 2.2(b), include in any such registration all of the
Registrable Securities of any Holder requested to be included in such
registration, such Holder may, upon written notice to the Company given within
three days of the time such Holder first is notified of such matter, reduce the
amount of Registrable Securities it desires to have included in such
registration, whereupon only the Registrable Securities, if any, it desires to
have included will be so included and the Holders not so reducing shall be
entitled to a corresponding pro rata increase in the amount of Registrable
Securities to be included in such registration.

        2.3 S-3 Registration; Shelf Registration.

             (a) S-3 Registration. If at any time (i) one or more Holders of
Registrable Securities representing 10% or more of the Registrable Securities
then outstanding request that the Company file a registration statement on Form
S-3 or any successor form thereto for a public offering of all or any portion of
the shares of Registrable Securities held by such Holder or Holders, the
reasonably anticipated aggregate price to the public of which would exceed
$1,000,000, and (ii) the Company is a registrant entitled to use Form S-3 or any
successor form thereto to register such securities, then the Company shall, as
expeditiously as possible following such Request, use its best efforts to
register under the Securities Act on Form S-3 or any successor form thereto, for
public sale in accordance with the intended methods of disposition specified in
such Request or any subsequent requests (including, without limitation, by means
of a Shelf Registration) the Registrable Securities specified in such Request
and any subsequent requests; provided, that if such registration is for an
Underwritten Offering, the terms of Sections 2.1(b) and 2.1(d) shall apply (and
any reference to "Demand Registration" therein shall, for purposes of this
Section 2.3, instead be deemed a reference to "S-3 Registration"). Whenever the
Company is required by this Section 2.3 to use its best efforts to effect the
registration of Registrable Securities, each of the procedures and requirements
of Section 2.1(a) and 2.1(e) (including but not limited to the requirements that
the Company (A) notify all Holders of Registrable Securities from whom such
Request for registration has not been received and provide them with the
opportunity to participate in the offering and (B) use its best efforts to have
such S-3 Registration Statement declared and remain effective for the time
period specified herein) shall apply to such registration (and any reference in
such Sections 2.1(a) and 2.1(e) to

                                       11
<PAGE>   12

"Demand Registration" shall, for purposes of this Section 2.3, instead be deemed
a reference to "S-3 Registration"). Notwithstanding anything to the contrary
contained herein, no Request may be made under this Section 2.3 within 90 days
after the effective date of a Registration Statement filed by the Company
covering a firm commitment Underwritten Offering in which the Holders of
Registrable Securities shall have been entitled to join pursuant to this
Agreement in which there shall have been effectively registered all shares of
Registrable Securities as to which registration shall have been requested. There
is no limitation on the number of S-3 Registrations that the Company is
obligated to effect.

             The registration rights granted pursuant to the provisions of this
Section 2.3(a) shall be in addition to the registration rights granted pursuant
to the other provisions of this Section 2.

             (b) Shelf Registration. If a request made pursuant to Section 2.1
or 2.3(a) is for a Shelf Registration, the Company shall use its best efforts to
keep the Shelf Registration continuously effective through the date on which all
of the Registrable Securities covered by such Shelf Registration may be sold
pursuant to Rule 144(k) under the Securities Act (or any successor provision
having similar effect); provided, however, that prior to the termination of such
Shelf Registration, the Company shall first furnish to each Holder of
Registrable Securities participating in such Shelf Registration (i) an opinion,
in form and substance satisfactory to the Majority Holders of the Registration
(in the case of a request under Section 2.3(a)) or the Initiating Holders (in
the case of a request under Section 2.1), of counsel for the Company
satisfactory to the Majority Holders of the Registration stating that such
Registrable Securities are freely saleable pursuant to Rule 144(k) under the
Securities Act (or any successor provision having similar effect) or (ii) a
"No-Action Letter" from the staff of the SEC stating that the SEC would not
recommend enforcement action if the Registrable Securities included in such
Shelf Registration were sold in a public sale other than pursuant to an
effective registration statement.

             2.4 Underwritten Offerings.

             (a) Demand Underwritten Offerings. If requested by the sole or lead
managing Underwriter for any Underwritten Offering effected pursuant to a Demand
Registration or an S-3 Registration, the Company shall enter into a customary
underwriting agreement with the Underwriters for such offering, such agreement
to be reasonably satisfactory in substance and form to the Company and each
Holder of Registrable Securities participating in such offering and to contain
such representations and warranties by the Company and such other terms as are
generally prevailing in agreements of that type, including, without limitation,
indemnification and contribution to the effect and to the extent provided in
Section 5.

             (b) Holders of Registrable Securities to be Parties to Underwriting
Agreement. The Holders of Registrable Securities to be distributed by
Underwriters in an Underwritten Offering contemplated by Section 2 shall be
parties to the underwriting agreement between the Company and such Underwriters
and may, at such Holders' option, require that any or all of the representations
and warranties by, and the other agreements on the part of, the Company to and
for the benefit of such Underwriters shall also be made to and for the benefit
of such Holders of Registrable Securities and that any or all of the conditions
precedent to

                                       12
<PAGE>   13

the obligations of such Underwriters under such underwriting agreement be
conditions precedent to the obligations of such Holders of Registrable
Securities; provided, however, that the Company shall not be required to make
any representations or warranties with respect to written information
specifically provided by a selling Holder for inclusion in the Registration
Statement. No Holder shall be required to make any representations or warranties
to, or agreements with, the Company or (in the case of an Incidental
Registration) the Underwriters other than representations, warranties or
agreements regarding such Holder, such Holder's Registrable Securities and such
Holder's intended method of disposition.

             (c) Participation in Underwritten Registration. Notwithstanding
anything herein to the contrary, no Person may participate in any underwritten
registration hereunder unless such Person (i) agrees to sell its securities on
the same terms and conditions provided in any underwritten arrangements approved
by the Persons entitled hereunder to approve such arrangement and (ii)
accurately completes and executes in a timely manner all questionnaires, powers
of attorney, indemnities, custody agreements, underwriting agreements and other
documents reasonably required under the terms of such underwriting arrangements.

             2.5 Expenses. The Company shall pay all Registration Expenses in
connection with any Demand Registration, Incidental Registration, S-3
Registration or Shelf Registration whether or not such registration shall become
effective and whether or not all Registrable Securities originally requested to
be included in such registration are withdrawn or otherwise ultimately not
included in such registration, except as otherwise provided with respect to a
Withdrawn Request and a Withdrawn Demand Registration in Section 2.1(a).

             2.6 Conversions; Exercises. Notwithstanding anything to the
contrary herein, in order for any Registrable Securities that are issuable upon
the exercise of conversion rights, options or warrants to be included in any
registration pursuant to Section 2 hereof, the exercise of such conversion
rights, options or warrants must be effected no later than immediately prior to
the closing of any sales under the Registration Statement pursuant to which such
Registrable Securities are to be sold.

             3. RESTRICTIONS ON SALE BY THE COMPANY. The Company agrees, if
timely requested in writing by a sole or lead managing Underwriter, not to sell
or otherwise transfer or dispose of any of the Company's equity securities (or
any security convertible into or exchangeable or exercisable for any of the
Company's equity securities) during the one hundred eighty (180) day period
following the effective date of a registration statement of the Company filed
under the Securities Act, unless the sole or lead managing Underwriter in such
Underwritten Offering otherwise agrees.

             4. REGISTRATION PROCEDURES.

             4.1 Obligations of the Company. Whenever the Company is required to
effect the registration of Registrable Securities under the Securities Act
pursuant to Section 2 of this Agreement, the Company shall, as expeditiously as
possible:

             (a) prepare and file with the SEC (promptly, and in any event
within 60 days after receipt of a request to register Registrable Securities)
the requisite Registration Statement to effect such registration, which
Registration Statement shall comply as to form in all material

                                       13
<PAGE>   14

respects with the requirements of the applicable form and include all financial
statements required by the SEC to be filed therewith, and the Company shall use
its best efforts to cause such Registration Statement to become effective
(provided, that the Company may discontinue any registration of its securities
that are not Registrable Securities, and, under the circumstances specified in
Section 2.2, its securities that are Registrable Securities); provided, however,
that before filing a Registration Statement or Prospectus or any amendments or
supplements thereto, or comparable statements under securities or blue sky laws
of any jurisdiction, the Company shall (i) provide Holders' Counsel and any
other Inspector (as defined below) with an adequate and appropriate opportunity
to participate in the preparation of such Registration Statement and each
Prospectus included therein (and each amendment or supplement thereto or
comparable statement) to be filed with the SEC, which documents shall be subject
to the review and comment of Holders' Counsel, and (ii) not file any such
Registration Statement or Prospectus (or amendment or supplement thereto or
comparable statement) with the SEC to which Holder's Counsel, any selling Holder
or any other Inspector shall have reasonably objected on the grounds that such
filing does not comply in all material respects with the requirements of the
Securities Act or of the rules or regulations thereunder;

             (b) prepare and file with the SEC such amendments and supplements
to such Registration Statement and the Prospectus used in connection therewith
as may be necessary (i) to keep such Registration Statement effective, and (ii)
to comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities covered by such Registration
Statement, in each case until such time as all of such Registrable Securities
have been disposed of in accordance with the intended methods of disposition by
the seller(s) thereof set forth in such Registration Statement; provided that
except with respect to any Shelf Registration, such period need not extend
beyond twelve months after the effective date of the Registration Statement; and
provided further, that with respect to any Shelf Registration, such period need
not extend beyond the time period provided in Section 2.3, and which periods, in
any event, shall terminate when all Registrable Securities covered by such
Registration Statement have been sold (but not before the expiration of the 90
day period referred to in Section 4(3) of the Securities Act and Rule 174
thereunder, if applicable);

             (c) furnish, without charge, to each selling Holder of such
Registrable Securities and each Underwriter, if any, of the securities covered
by such Registration Statement, such number of copies of such Registration
Statement, each amendment and supplement thereto (in each case including all
exhibits), and the Prospectus included in such Registration Statement (including
each preliminary Prospectus) in conformity with the requirements of the
Securities Act, and other documents, as such selling Holder and Underwriter may
reasonably request in order to facilitate the public sale or other disposition
of the Registrable Securities owned by such selling Holder (the Company hereby
consenting to the use in accordance with applicable law of each such
Registration Statement (or amendment or post-effective amendment thereto) and
each such Prospectus (or preliminary prospectus or supplement thereto) by each
such selling Holder of Registrable Securities and the Underwriters, if any, in
connection with the offering and sale of the Registrable Securities covered by
such Registration Statement or Prospectus);

             (d) prior to any public offering of Registrable Securities, use its
best efforts to register or qualify all Registrable Securities and other
securities covered by such Registration Statement under such other securities or
blue sky laws of such jurisdictions as any selling Holder

                                       14
<PAGE>   15

of Registrable Securities covered by such Registration Statement or the sole or
lead managing Underwriter, if any, may reasonably request to enable such selling
Holder to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such selling Holder and to continue such registration or
qualification in effect in each such jurisdiction for as long as such
Registration Statement remains in effect (including through new filings or
amendments or renewals), and do any and all other acts and things which may be
necessary or advisable to enable any such selling Holder to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
selling Holder;

             (e) use its best efforts to obtain all other approvals, consents,
exemptions or authorizations from such governmental agencies or authorities as
may be necessary to enable the selling Holders of such Registrable Securities to
consummate the disposition of such Registrable Securities;

(f) notify Holders' Counsel, each Holder of Registrable Securities covered by
such Registration Statement and the sole or lead managing Underwriter, if any:
(i) when the Registration Statement, any pre-effective amendment, the Prospectus
or any prospectus supplement related thereto or post-effective amendment to the
Registration Statement has been filed and, with respect to the Registration
Statement or any post-effective amendment, when the same has become effective,
(ii) of any request by the SEC or any state securities or blue sky authority for
amendments or supplements to the Registration Statement or the Prospectus
related thereto or for additional information, (iii) of the issuance by the SEC
of any stop order suspending the effectiveness of the Registration Statement or
the initiation or threat of any proceedings for that purpose, (iv) of the
receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the securities or
blue sky laws of any jurisdiction or the initiation of any proceeding for such
purpose, (v) of the existence of any fact of which the Company becomes aware or
the happening of any event which results in (A) the Registration Statement
containing an untrue statement of a material fact or omitting to state a
material fact required to be stated therein or necessary to make any statements
therein not misleading, or (B) the Prospectus included in such Registration
Statement containing an untrue statement of a material fact or omitting to state
a material fact required to be stated therein or necessary to make any
statements therein, in the light of the circumstances under which they were
made, not misleading, (vi) if at any time the representations and warranties
contained in any underwriting agreement in respect of such offering cease to be
true and correct in all material respects, and (vii) of the Company's reasonable
determination that a post-effective amendment to a Registration Statement would
be appropriate or that there exists circumstances not yet disclosed to the
public which make further sales under such Registration Statement inadvisable
pending such disclosure and post-effective amendment; and, if the notification
relates to an event described in any of the clauses (ii) through (vii) of this
Section 4.1(f), the Company shall promptly prepare a supplement or
post-effective amendment to such Registration Statement or related Prospectus or
any document incorporated therein by reference or file any other required
document so that (1) such Registration Statement shall not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
(2) as thereafter delivered to the purchasers of the Registrable Securities
being sold thereunder, such Prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein in the light of the circumstances
under which they were

                                       15
<PAGE>   16
made not misleading (and shall furnish to each such Holder and each
Underwriter, if any, a reasonable number of copies of such Prospectus so
supplemented or amended); and if the notification relates to an event described
in clause (iii) of this Section 4.1(f), the Company shall take all reasonable
action required to prevent the entry of such stop order or to remove it if
entered;

             (g) make available for inspection by any selling Holder of
Registrable Securities, any sole or lead managing Underwriter participating in
any disposition pursuant to such Registration Statement, Holders' Counsel and
any attorney, accountant or other agent retained by any such seller or any
Underwriter (each, an "Inspector" and, collectively, the "Inspectors"), all
financial and other records, pertinent corporate documents and properties of the
Company and any subsidiaries thereof as may be in existence at such time
(collectively, the "Records") as shall be necessary, in the opinion of such
Holders' and such Underwriters' respective counsel, to enable them to exercise
their due diligence responsibility and to conduct a reasonable investigation
within the meaning of the Securities Act, and cause the Company's and any
subsidiaries' officers, directors and employees, and the independent public
accountants of the Company, to supply all information reasonably requested by
any such Inspectors in connection with such Registration Statement;

             (h) obtain an opinion from the Company's counsel and a "cold
comfort" letter from the Company's independent public accountants who have
certified the Company's financial statements included or incorporated by
reference in such Registration Statement, in each case dated the effective date
of such Registration Statement (and if such registration involves an
Underwritten Offering, dated the date of the closing under the underwriting
agreement), in customary form and covering such matters as are customarily
covered by such opinions and "cold comfort" letters delivered to underwriters in
underwritten public offerings, which opinion and letter shall be reasonably
satisfactory to the sole or lead managing Underwriter, if any, and to the
Majority Holders of the Registration, and furnish to each Holder participating
in the offering and to each Underwriter, if any, a copy of such opinion and
letter addressed to such Holder (in the case of the opinion) and Underwriter (in
the case of the opinion and the "cold comfort" letter);

             (i) provide a CUSIP number for all Registrable Securities and
provide and cause to be maintained a transfer agent and registrar for all such
Registrable Securities covered by such Registration Statement not later than the
effectiveness of such Registration Statement;

             (j) otherwise use its best efforts to comply with all applicable
rules and regulations of the SEC and any other governmental agency or authority
having jurisdiction over the offering, and make available to its security
holders, as soon as reasonably practicable but no later than 90 days after the
end of any 12-month period, an earnings statement (i) commencing at the end of
any month in which Registrable Securities are sold to Underwriters in an
Underwritten Offering and (ii) commencing with the first day of the Company's
calendar month next succeeding each sale of Registrable Securities after the
effective date of a Registration Statement, which statement shall cover such
12-month periods, in a manner which satisfies the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder;

                                       16
<PAGE>   17

             (k) use its best efforts to cause all such Registrable Securities
to be (i) duly included for quotation on the Nasdaq Stock Market's National
Market (the "Nasdaq National Market") or listed on the principal national
securities exchange on which the Company's similar securities are then listed,
if applicable, or (ii) if securities of the Company are not at the time included
on the Nasdaq National Market or listed on any national securities exchange (or
if the listing of Registrable Securities is not permitted under the rules of
each national securities exchange on which the Company's securities are then
listed), listed on the National Nasdaq Market or a national securities exchange
designated by the Majority Holders of the Registration;

             (l) enter into and perform customary agreements (including, if
applicable, an underwriting agreement in customary form) and provide officers'
certificates and other customary closing documents;

             (m) cooperate with each selling Holder of Registrable Securities
and each Underwriter participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required
to be made with the NASD and make reasonably available its employees and
personnel and otherwise provide reasonable assistance to the Underwriters
(taking into account the needs of the Company's businesses and the requirements
of the marketing process) in the marketing of Registrable Securities in any
Underwritten Offering;

             (n) cooperate with the selling Holders of Registrable Securities
and the sole or lead managing Underwriter, if any, to facilitate the timely
preparation and delivery of certificates not bearing any restrictive legends
representing the Registrable Securities to be sold, and cause such Registrable
Securities to be issued in such denominations and registered in such names in
accordance with the underwriting agreement prior to any sale of Registrable
Securities to the Underwriters or, if not an Underwritten Offering, in
accordance with the instructions of the selling Holders of Registrable
Securities at least three business days prior to any sale of Registrable
Securities;

             (o) keep each selling Holder of Registrable Securities advised in
writing as to the initiation and progress of any registration under Section 2
hereunder;

             (p) furnish to each Holder participating in the offering and the
sole or lead managing Underwriter, if any, without charge, at least one
manually-signed copy of the Registration Statement and any post-effective
amendments thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits (including those deemed to be
incorporated by reference);

             (q) if requested by the sole or lead managing Underwriter or any
selling Holder of Registrable Securities, promptly incorporate in a prospectus
supplement or post-effective amendment such information concerning such Holder
of Registrable Securities, the Underwriters or the intended method of
distribution as the sole or lead managing Underwriter or the selling Holder of
Registrable Securities reasonably requests to be included therein and as is
appropriate in the reasonable judgment of the Company, including, without
limitation, information with respect to the number of shares of the Registrable
Securities being sold to the Underwriters, the purchase price being paid
therefor by such Underwriters and with respect to any other terms of the
Underwritten Offering of the Registrable Securities to be sold in such

                                       17
<PAGE>   18

offering; make all required filings of such Prospectus supplement or
post-effective amendment as soon as notified of the matters to be incorporated
in such Prospectus supplement or post-effective amendment; and supplement or
make amendments to any Registration Statement if requested by the sole or lead
managing Underwriter of such Registrable Securities; and

             (r) use its best efforts to take all other steps necessary to
expedite or facilitate the registration and disposition of the Registrable
Securities contemplated hereby.

             4.2 Seller Information. The Company may require each selling Holder
of Registrable Securities as to which any registration is being effected to
furnish to the Company such information regarding such seller and the
disposition of such securities as the Company may from time to time reasonably
request in writing; provided, however, that such information shall be used only
in connection with such Registration. If any Registration Statement or
comparable statement under "blue sky" laws refers to any Holder by name or
otherwise as the Holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance satisfactory to such Holder and the Company, to the effect that the
holding by such Holder of such securities is not to be construed as a
recommendation by such Holder of the investment quality of the Company's
securities covered thereby and that such holding does not imply that such Holder
will assist in meeting any future financial requirements of the Company, and
(ii) in the event that such reference to such Holder by name or otherwise is not
in the judgment of the Company, as advised by counsel, required by the
Securities Act or any similar federal statute or any state "blue sky" or
securities law then in force, the deletion of the reference to such Holder.

             4.3 Notice to Discontinue. Each Holder of Registrable Securities
agrees by acquisition of such Registrable Securities that, (i) upon receipt of
any notice from the Company of the happening of any event of the kind described
in Section 4.1(f)(ii) through 4.1(f)(v), such Holder shall forthwith discontinue
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such Holder's receipt of the copies
of the supplemented or amended prospectus contemplated by Section 4.1(f) and, if
so directed by the Company, such Holder shall deliver to the Company (at the
Company's expense) all copies, other than permanent file copies, then in such
Holder's possession of the Prospectus covering such Registrable Securities which
is current at the time of receipt of such notice. If the Company shall give any
such notice, the Company shall extend the period during which such Registration
Statement shall be maintained effective pursuant to this Agreement (including,
without limitation, the period referred to in Section 4.1(b)) by the number of
days during the period from and including the date of the giving of such notice
pursuant to Section 4.1(f) to and including the date when the Holder shall have
received the copies of the supplemented or amended prospectus contemplated by
and meeting the requirements of Section 4.1(f).

             5. INDEMNIFICATION; CONTRIBUTION.

             5.1 Indemnification by the Company. The Company agrees to indemnify
and hold harmless, to the fullest extent permitted by law, each Holder of
Registrable Securities, its officers, directors, partners, members,
stockholders, employees, Affiliates, advisers, attorneys and agents
(collectively, "Agents") and each Person who controls such Holder (within the
meaning of the Securities Act) and its Agents with respect to each registration
which has been

                                       18
<PAGE>   19

effected pursuant to this Agreement, against any and all losses, claims, damages
or liabilities, joint or several, actions or proceedings (whether commenced or
threatened) in respect thereof, and expenses (as incurred or suffered and
including, but not limited to, any and all expenses incurred in investigating,
preparing or defending any litigation or proceeding, whether commenced or
threatened, and the reasonable fees, disbursements and other charges of legal
counsel) in respect thereof (collectively, "Claims"), insofar as such Claims
arise out of or are based upon any untrue or alleged untrue statement of a
material fact contained in any Registration Statement or Prospectus (including
any preliminary, final or summary prospectus and any amendment or supplement
thereto) related to any such registration or any omission or alleged omission to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the Company of the
Securities Act or any rule or regulation thereunder applicable to the Company
and relating to action or inaction required of the Company in connection with
any such registration, or any qualification or compliance incident thereto;
provided, however, that the Company will not be liable in any such case to the
extent that any such Claims arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact or omission or alleged omission
of a material fact so made in reliance upon and in conformity with written
information furnished to the Company by a Holder, Underwriter or other
indemnified person hereunder expressly for use therein. The Company shall also
indemnify any Underwriters of the Registrable Securities, their Agents and each
Person who controls any such Underwriter (within the meaning of the Securities
Act) to the same extent as provided above with respect to the indemnification of
the Holders of Registrable Securities. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of any Person
who may be entitled to indemnification pursuant to this Section 5 and shall
survive the transfer of securities by such Holder or Underwriter.

             5.2 Indemnification by Holders. Each Holder, if Registrable
Securities held by it are included in the securities as to which a registration
is being effected, agrees to, severally and not jointly, indemnify and hold
harmless, to the fullest extent permitted by law, the Company, its directors and
officers, each other Person who participates as an Underwriter in the offering
or sale of such securities and its Agents and each Person who controls the
Company against any and all Claims, insofar as such Claims arise out of or are
based upon any untrue or alleged untrue statement of a material fact contained
in any Registration Statement or Prospectus (including any preliminary, final or
summary prospectus and any amendment or supplement thereto) related to such
registration, or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Company by a Holder, Underwriter or other indemnified person hereunder expressly
for use therein; provided, however, that the aggregate amount which any such
Holder shall be required to pay pursuant to this Section 5.2 shall in no event
be greater than the amount of the net proceeds received by such Holder upon the
sale of the Registrable Securities pursuant to the Registration Statement giving
rise to such Claims less all amounts previously paid by such Holder with respect
to any such Claims. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of any Person who may be
entitled to indemnification pursuant to this Section 5 and shall survive the
transfer of securities by such Holder or Underwriter.

                                       19
<PAGE>   20

             5.3 Conduct of Indemnification Proceedings. Promptly after receipt
by an indemnified party of notice of any Claim or the commencement of any action
or proceeding involving a Claim under this Section 5, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party pursuant to Section 5, (i) notify the indemnifying party in writing of the
Claim or the commencement of such action or proceeding; provided, that the
failure of any indemnified party to provide such notice shall not relieve the
indemnifying party of its obligations under this Section 5, except to the extent
the indemnifying party is materially and actually prejudiced thereby and shall
not relieve the indemnifying party from any liability which it may have to any
indemnified party otherwise than under this Section 5, and (ii) permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided, however, that any indemnified
party shall have the right to employ separate counsel and to participate in the
defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such indemnified party unless (A) the indemnifying party has agreed
in writing to pay such fees and expenses, (B) the indemnifying party shall have
failed to assume the defense of such claim and employ counsel reasonably
satisfactory to such indemnified party within 20 days after receiving notice
from such indemnified party that the indemnified party believes it has failed to
do so, or (C) in the reasonable judgment of any such indemnified party, based
upon advice of counsel, a conflict of interest shall exist between such
indemnified party and the indemnifying party with respect to such claims; it
being understood, however, that the indemnifying party shall not, in connection
with any one such action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to no more than one firm of local
counsel) at any time for all such indemnified parties. No indemnifying party
shall be liable for any settlement of any such claim or action effected without
its written consent, which consent shall not be unreasonably withheld. No
indemnifying party shall, without the consent of the indemnified party, which
consent shall not be unreasonably withheld, consent to entry of any judgment or
enter into any settlement of any claim or action in respect of which
indemnification or contribution may be sought hereunder, unless such settlement,
(i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim, (ii) does not include a statement
as to or an admission of fault, culpability or a failure to act, by or on behalf
of any indemnified party, and (3) does not provide for any action on the part of
any party other than the payment of money damages which is to be paid in full by
the indemnifying party.

             5.4 Contribution. If the indemnification provided for in Section
5.1 or 5.2 from the indemnifying party for any reason is unavailable to (other
than by reason of exceptions provided therein), or is insufficient to hold
harmless an indemnified party hereunder in respect of any Claim, then the
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such Claim in such proportion as is appropriate to reflect the relative fault
of the indemnifying party, on the one hand, and the indemnified party, on the
other hand, in connection with the actions which resulted in such Claim, as well
as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified party, and the parties'

                                       20
<PAGE>   21

relative intent, knowledge, access to information and opportunity to correct or
prevent such action. If, however, the foregoing allocation is not permitted by
applicable law, then each indemnifying party shall contribute to the amount paid
or payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative faults but also the relative benefits of the
indemnifying party and the indemnified party as well as any other relevant
equitable considerations.

             5.5. Other Indemnification. Indemnification similar to that
specified in the preceding Sections 5.1 and 5.2 (with appropriate modifications)
shall be given by the Company and each selling Holder of Registrable Securities
with respect to any required registration or other qualification of securities
under any Federal or state law or regulation of any governmental authority,
other than the Securities Act. The indemnity agreements contained herein shall
be in addition to any other rights to indemnification or contribution which any
indemnified party may have pursuant to law or contract.

             5.6 Indemnification Payments. The indemnification and contribution
required by this Section 5 shall be made by periodic payments of the amount
thereof during the course of any investigation or defense, as and when bills are
received or any expense, loss, damage or liability is incurred.

             6. General.

             6.1 Adjustments Affecting Registrable Securities. The Company
agrees that it shall not effect or permit to occur any combination or
subdivision of shares which would adversely affect the ability of the Holder of
any Registrable Securities to include such Registrable Securities in any
registration contemplated by this Agreement or the marketability of such
Registrable Securities in any such registration.

             6.2 Registration Rights to Others. Other than as set forth on
Schedule A attached hereto, the Company represents and warrants that it is not
currently a party to any agreement with respect to its securities granting
registration rights to Persons. If the Company shall at any time hereafter
provide to any holder of any securities of the Company rights with respect to
the registration of such securities under the Securities Act (not including any
such rights which have been previously granted), (i) such rights shall not be in
conflict with or adversely affect any of the rights provided in this Agreement
to the Holders and (ii) if such rights are provided on terms or conditions more
favorable to such holder than the terms and conditions provided in this
Agreement, the Company shall provide (by way of amendment to this Agreement or
otherwise) such more favorable terms or conditions to the Holders.

             6.3 Availability of Information; Rule 144; Rule 144A; Other
Exemptions. The Company covenants that it shall timely file any reports required
to be filed by it under the Securities Act or the Exchange Act (including, but
not limited to, the reports under Sections 13 and 15(d) of the Exchange Act
referred to in subparagraph (c) of Rule 144 under the Securities Act), and that
it shall take such further action as any Holder of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such
Holder to sell Registrable Securities without registration under the Securities
Act within the limitation of the exemptions provided by (i) Rule 144 and Rule
144A under the Securities Act, as such rules may

                                       21
<PAGE>   22

be amended from time to time, or (ii) any other rule or regulation now existing
or hereafter adopted by the SEC. Upon the request of any Holder of Registrable
Securities, the Company shall deliver to such Holder a written statement as to
whether it has complied with such requirements.

             6.4 Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the
provisions hereof may not be given, without the written consent of the Company
and the Majority Holders; provided, however, that no such amendment,
modification, supplement, waiver or consent to departure shall reduce the
aforesaid percentage of Registrable Securities without the written consent of
all of the Holders of Registrable Securities; and provided further, that nothing
herein shall prohibit any amendment, modification, supplement, termination,
waiver or consent to departure the effect of which is limited only to those
Holders who have agreed to such amendment, modification, supplement,
termination, waiver or consent to departure.

             6.5 Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, telecopier, any
courier guaranteeing overnight delivery or first class registered or certified
mail, return receipt requested, postage prepaid, addressed to the applicable
party at the address set forth below or such other address as may hereafter be
designated in writing by such party to the other parties in accordance with the
provisions of this Section:

        If to the Company:            FUTURELINK CORP.
                                      2 South Point Drive
                                      Lake Forest, California 92630
                                      Attn: Ross Vincenti, Esq.
                                      Fax No. 949.672.3117

               with copies to:        PAUL HASTINGS JANOFSKY & WALKER, LLP
                                      399 Park Avenue, 31st Floor
                                      New York, New York 10022
                                      Attn: Tom Pollock, Esq.
                                      Fax No. 212.319.4090

        If to Initial Holder:         FOOTHILL CAPITAL CORPORATION
                                      2450 Colorado Avenue
                                      Suite 3000 West
                                      Santa Monica, California  90404
                                      Attn: Business Finance Division Manager
                                      Fax No. 310.453.7413

               with copies to:        BROBECK, PHLEGER & HARRISON LLP
                                      550 South Hope Street, Suite 2100
                                      Los Angeles, CA 90071
                                      Attn:  John Francis Hilson, Esq.
                                      Fax No. 213.745.3345

                                       22
<PAGE>   23

             All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; when receipt
is acknowledged, if telecopied; on the next business day, if timely delivered to
a courier guaranteeing overnight delivery; and five days after being deposited
in the mail, if sent first class or certified mail, return receipt requested,
postage prepaid.

             6.6 Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs,
successors and permitted assigns (including any permitted transferee of Warrants
or Registrable Securities). Any Holder may assign to any permitted (as
determined under the Warrants) transferee of its Warrants or Registrable
Securities (other than a transferee that acquires such Registrable Securities in
a registered public offering or pursuant to a sale under Rule 144 of the
Securities Act (or any successor rule)), its rights and obligations under this
Agreement; provided, however, if any permitted transferee shall take and hold
Warrants or Registrable Securities, such transferee shall promptly notify the
Company and by taking and holding such Registrable Securities such permitted
transferee shall automatically be entitled to receive the benefits of and be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement as if it were a party hereto (and shall,
for all purposes, be deemed a Holder under this Agreement). If the Company shall
so request any heir, successor or permitted assign (including any permitted
transferee) wishing to avail itself of the benefits of this Agreement shall
agree in writing to acquire and hold the Registrable Securities subject to all
of the terms hereof. For purposes of this Agreement, "successor" for any entity
other than a natural person shall mean a successor to such entity as a result of
such entity's merger, consolidation, sale of substantially all of its assets, or
similar transaction. Except as provided above or otherwise permitted by this
Agreement, neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by any Holder or by
the Company without the consent of the other parties hereto.

             6.7 Counterparts. This Agreement may be executed in two or more
counterparts, each of which, when so executed and delivered, shall be deemed to
be an original, but all of which counterparts, taken together, shall constitute
one and the same instrument.

             6.8 Descriptive Headings, Etc. The headings in this Agreement are
for convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein. Unless the context of this Agreement
otherwise requires: (1) words of any gender shall be deemed to include each
other gender; (2) words using the singular or plural number shall also include
the plural or singular number, respectively; (3) the words "hereof", "herein"
and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section and paragraph references are to the Sections and
paragraphs of this Agreement unless otherwise specified; (4) the word
"including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless otherwise specified; (5) "or" is not
exclusive; and (6) provisions apply to successive events and transactions.

             6.9 Severability. In the event that any one or more of the
provisions, paragraphs, words, clauses, phrases or sentences contained herein,
or the application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the

                                       23
<PAGE>   24

validity, legality and enforceability of any such provision, paragraph, word,
clause, phrase or sentence in every other respect and of the other remaining
provisions, paragraphs, words, clauses, phrases or sentences hereof shall not be
in any way impaired, it being intended that all rights, powers and privileges of
the parties hereto shall be enforceable to the fullest extent permitted by law.

             6.10 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. THE VALIDITY OF
THIS AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND
THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER
OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.

             THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN
CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE
AND FEDERAL COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA.
THE COMPANY AND THE INITIAL HOLDERS WAIVE, TO THE EXTENT PERMITTED UNDER
APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON
CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS SECTION 6.10.

             THE COMPANY AND THE INITIAL HOLDERS HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. THE COMPANY AND THE INITIAL HOLDERS REPRESENT THAT EACH HAS
REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL
RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A
COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

             6.11 Remedies; Specific Performance. The parties hereto acknowledge
that money damages would not be an adequate remedy at law if any party fails to
perform in any material respect any of its obligations hereunder, and
accordingly agree that each party, in addition to any other remedy to which it
may be entitled at law or in equity, shall be entitled to seek to compel
specific performance of the obligations of any other party under this Agreement,
without the posting of any bond, in accordance with the terms and conditions of
this Agreement in any court specified in Section 6.10 hereof, and if any action
should be brought in equity to enforce any of the provisions of this Agreement,
none of the parties hereto shall raise the defense that there is an adequate
remedy at law. Except as otherwise provided by law, a delay or omission by a
party hereto in exercising any right or remedy accruing upon any such breach
shall not impair the right or remedy or constitute a waiver of or acquiescence
in any such breach. No remedy shall be exclusive of any other remedy. All
available remedies shall be cumulative.

                                       24
<PAGE>   25

             6.12 Entire Agreement. This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, representations, warranties, covenants or undertakings relating to
such subject matter, other than those set forth or referred to herein or in the
Other Agreements. This Agreement and the Other Agreements supersede all prior
agreements and understandings between the Company and the other parties to this
Agreement with respect to such subject matter.

             6.13 Further Assurances. Each party hereto shall do and perform or
cause to be done and performed all such further acts and things and shall
execute and deliver all such other agreements, certificates, instruments and
documents as any other party hereto reasonably may request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

             6.14 Construction. The Company and the Initial Holders acknowledge
that each of them has had the benefit of legal counsel of its own choice and has
been afforded an opportunity to review this Agreement with its legal counsel and
that this Agreement shall be construed as if jointly drafted by the Company and
the Holders.

             6.15 No Inconsistent Agreement. The Company will not hereafter
enter into any agreement which is inconsistent with the rights granted to the
Holders in this Agreement.

             6.16 Costs and Attorneys' Fees. In the event that any action, suit
or other proceeding is instituted concerning or arising out of this Agreement,
the Company and the Initial Holders agree that the prevailing party shall
recover from the non-prevailing party all of such prevailing party's costs and
reasonable attorneys' fees incurred in each and every such action, suit or other
proceeding, including any and all appeals or petitions therefrom.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>   26

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

THE COMPANY:.                         INITIAL HOLDER:

FUTURELINK CORP.                      FOOTHILL CAPITAL CORPORATION

By:  /S/ COREY E. FISCHER             By: /s/ WILLIAM SHIAO
   --------------------------------      -----------------------------------

Name: COREY E. FISCHER                Name: WILLIAM SHIAO
     ------------------------------        ---------------------------------

Title:  VICE PRESIDENT                Title:  VICE PRESIDENT
      -----------------------------         --------------------------------

              [SIGNATURE PAGE TO THE REGISTRATION RIGHTS AGREEMENT]

                                       26

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