Document:

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                                                                    Exhibit 10.3

                                G U A R A N T E E

                              -- DAY OF MARCH, 2000

                                       BY

                            Imperial Parking LIMITED
                                  AS GUARANTOR

                                  IN FAVOUR OF

             First Union Real Estate Equity and Mortgage Investments
                                   AS CREDITOR

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                                TABLE OF CONTENTS

<TABLE>
<C>                                                                                                             <C>
1.                INTERPRETATION.................................................................................1
        1.01      Definitions....................................................................................1
        1.02      Generally Accepted Accounting Principles.......................................................2
        1.03      Headings.......................................................................................2
        1.04      Number and Gender..............................................................................3

2.                Guarantee and indemnity........................................................................3
        2.01      Guarantee......................................................................................3
        2.02      Nature of Guarantee............................................................................3
        2.03      Performance of Obligations.....................................................................3
        2.04      Obligations Unconditional......................................................................3
        2.05      Guarantee Unaffected by Judgment or Bankruptcy.................................................3
        2.06      Independence of Guarantee......................................................................4
        2.07      Indemnity......................................................................................4

3.                Representations and Warranties.................................................................4
        3.01      Incorporation..................................................................................4
        3.02      Capacity.......................................................................................4
        3.03      Licences.......................................................................................5
        3.04      Non-Conflict...................................................................................5
        3.05      No Default.....................................................................................5
        3.06      Enforceability.................................................................................5
        3.07      Financial Information..........................................................................5
        3.08      Due Authorization by Guarantor.................................................................5
        3.09      Reliance and Survival..........................................................................6

4.                Covenants of the Guarantor.....................................................................6
        4.01      Waiver.........................................................................................6
        4.02      No Requirement to Exhaust Recourse.............................................................6
        4.03      Payment of Obligations.........................................................................6
        4.04      Assignment and Postponement....................................................................6
        4.05      Postponed Subrogation..........................................................................7
        4.06      Bankruptcy.....................................................................................7
        4.07      Set-Off, Combination of Accounts and Crossclaims...............................................7
        4.08      Powers.........................................................................................7
        4.09      Survival of Guarantee..........................................................................7
        4.10      Further Assurances.............................................................................8
        4.11      Payment of Realization Costs...................................................................8
        4.12      No Termination.................................................................................8
        4.13      Financial Condition of Debtor..................................................................8

5.                Rights of the Creditor.........................................................................8
        5.01      Appropriations.................................................................................8
</TABLE>

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<TABLE>
<C>                                                                                                             <C>
        5.02      Dealing with Liabilities and Security..........................................................8
        5.03      Assignment.....................................................................................9
        5.04      Creditor Accounts to Govern....................................................................9
        5.05      Guarantee in Addition..........................................................................9
        5.06      Successors and Assigns........................................................................10
        5.07      Set-Off by the Creditor.......................................................................10
        5.08      Right to Recover for Contingent Liabilities...................................................10

6.                GENERAL.......................................................................................10
        6.01      Notices.......................................................................................10
        6.02      Time of the Essence...........................................................................11
        6.03      Governing Law.................................................................................11
        6.04      Guarantee Effective Immediately...............................................................11
        6.05      Entire Agreement..............................................................................11
        6.06      Severability..................................................................................11
        6.07      Judgment Currency.............................................................................11
        6.08      Amendment.....................................................................................12
        6.09      Waiver of Rights..............................................................................12
        6.10      Receipt of Copy...............................................................................12
</TABLE>

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                                    GUARANTEE

                  THIS GUARANTEE is given the o day of March, 2000, by (the
"Guarantor") whose principal office or place of business is located at Suite
300, 601 West Cordova St., Vancouver, B.C. V6B 1G1 in favour of First Union Real
Estate Equity and Mortgage Investments (the "Creditor").

PREMISES:

         (a)      Imperial Parking Corporation (the "Debtor") has or may become
                  indebted to the Creditor.

         (b)      The Creditor has required the Guarantor to enter into this
                  Guarantee as a condition of the Creditor advancing funds to
                  the Debtor.

                  IN CONSIDERATION of $1.00 now paid by the Creditor to the
Guarantor and of other consideration (the receipt and sufficiency of which are
acknowledged by the Guarantor), the Guarantor agrees with the Creditor as
follows:

1.                INTERPRETATION

1.01              DEFINITIONS

                  In this Guarantee:

                  "AGREEMENT" means any agreement, oral or written, and any
                  indenture, instrument or undertaking.

                  "BUSINESS DAY" means any day of the week other than a
                  Saturday, Sunday or statutory or civic holiday observed in
                  Vancouver, British Columbia or New York, New York.

                  "CONTINGENT FACILITY" means any obligation in any form assumed
                  or issued by the Creditor at the request of or for the account
                  of the Debtor under which the Creditor has any contingent or
                  future liability, including, without limitation, any
                  guarantee, uncleared payment order, endorsement, letter of
                  credit or banker's acceptance.

                  "GUARANTEE" means this Guarantee and all attached Schedules.
                  The words "hereto," "herein," "hereof," "hereby", "hereunder,"
                  and similar expressions, refer to this Guarantee and not to
                  any particular portion of it. The words "Article," "Section,"
                  "Subsection" or "Schedule" refer to the applicable article,
                  section, subsection or schedule of this Guarantee.

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                                     - 2 -

                  "LIABILITIES" means all and any item or part, of the existing
                  and future indebtedness, obligations and liabilities of any
                  kind whatever of the Debtor to the Creditor, whether direct or
                  indirect or absolute or contingent, and whether matured or
                  not. "Liabilities" includes, without limitation, all such
                  indebtedness, obligations and liabilities regardless of the
                  place or manner in which they arise or are evidenced, whether
                  resulting from dealings between the Creditor and the Debtor or
                  from other dealings or proceedings by which the Debtor may be
                  or become in any manner indebted, obligated or liable to the
                  Creditor and in any currency and whether incurred by the
                  Debtor alone or with another or others and whether as
                  principal, guarantor, or surety. "Liabilities" also includes
                  the aggregate amount of all Contingent Facilities and all
                  interest, commissions, costs, charges and expenses which the
                  Creditor incurs in respect of any of the Liabilities and any
                  Security granted in respect of any of the Liabilities.

                  "OBLIGATIONS" means all, and any part, of the guarantees,
                  indemnities, obligations and liabilities of the Guarantor to
                  the Creditor under this Guarantee.

                  "PERSON" includes an individual, corporation, partnership,
                  joint venture, trust or unincorporated organization, the Crown
                  or any agency or instrumentality thereof or any other entity
                  recognized by law.

                  "SECURITY" means existing or future security interests of any
                  type and any guarantee other than this Guarantee, granted by
                  any Person in respect of the Liabilities or the Obligations.

                  "TAXES" means all taxes, imposts, rates, levies, assessments
                  and government fees or dues lawfully levied, assessed or
                  imposed, including, without limitation, sales, excise, use,
                  property, capital, business transfer, goods and services or
                  value added taxes.

1.02              GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

                  All accounting and financial terms used in this Guarantee
shall be interpreted in accordance with generally accepted accounting principles
in Canada. Where the Canadian Institute of Chartered Accountants or any
successor thereto includes a recommendation in its Handbook or any successor
thereto concerning the treatment of any accounting matter, such recommendation
shall be regarded as the only generally accepted accounting principle applicable
to the circumstances that it covers and references herein to "generally accepted
accounting principles" shall be interpreted accordingly.

1.03              HEADINGS

                  The division of this Guarantee into Articles, Sections,
paragraphs and subparagraphs and the insertion of headings are for convenience
of reference only and shall not affect the construction or interpretation of
this Guarantee. The Article and Section headings in

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                                     - 3 -

this Guarantee are not intended to be full or accurate descriptions of the text
to which they refer and shall not be considered part of this Guarantee.

1.04              NUMBER AND GENDER

                  In this Guarantee, words in the singular include the plural
and vice-versa and words in one gender include all genders.

2.                Guarantee and indemnity

2.01              GUARANTEE

                  The Guarantor guarantees to the Creditor the due and punctual
payment and performance in full of the Liabilities as they become due from time
to time. The Guarantor shall be liable for the Liabilities as a primary obligor,
not merely as a surety.

2.02              NATURE OF GUARANTEE

                  This Guarantee is an unconditional, irrevocable and continuing
guarantee of all of the Liabilities, and the liability of the Guarantor in
respect of the Liabilities is unlimited.

2.03              PERFORMANCE OF OBLIGATIONS

                  The Guarantor shall pay or perform the Liabilities immediately
on demand from the Creditor, without any requirement that the Creditor has
demanded that the Debtor pay or perform any of the Liabilities or that the
Debtor has failed to do so.

2.04              OBLIGATIONS UNCONDITIONAL

                  This Guarantee is effective irrespective of the genuineness,
validity or enforceability of the Liabilities. No circumstance, act or omission,
even if known by the Guarantor or the Creditor, which might otherwise limit,
lessen or release the Obligations or discharge this Guarantee shall release or
discharge, or wholly or partly exonerate the Guarantor from, any Obligations or
prejudice the Creditor's rights and remedies under this Guarantee. The Creditor
may at any time vary, compromise, exchange, renew, discharge, release or abandon
any Obligation or any other right or remedy it may have without thereby
lessening, limiting or releasing any other Obligation. The Guarantor hereby
waives all defences to any action or proceeding to enforce this Guarantee,
except any defence that there has been no default by the Debtor in paying and
performing the Liabilities or that the amount claimed has been permanently and
irrevocably paid to the Creditor.

2.05              GUARANTEE UNAFFECTED BY JUDGMENT OR BANKRUPTCY

                  Without limiting Section 2.04, none of the Obligations shall
be limited, lessened or released, nor shall this Guarantee be discharged, by the
recovery of any judgment against the Debtor or any other Person, by any
voluntary or involuntary liquidation, dissolution, winding-up,

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merger or amalgamation of the Debtor, the Guarantor or any other Person, by any
sale or other disposition of all or substantially all of the assets of the
Debtor, or by any judicial or extra-judicial receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization, moratorium,
arrangement, composition with creditors or other proceedings affecting the
Debtor, the Guarantor or any other Person.

2.06              INDEPENDENCE OF GUARANTEE

                  The Obligations are in addition to and independent of any
Security. The Obligations shall not be lessened or limited, nor shall this
Guarantee be discharged, by:

         (a)      any direction of application of payment by the Debtor or by
                  any other Person; or

         (b)      any payment received on account of the Liabilities that the
                  Creditor may consider that it is obliged to repay pursuant to
                  any applicable law or for any other reason.

2.07              INDEMNITY

                  The Guarantor shall indemnify and save the Creditor harmless
from and against all loss, cost, damage, expense, claims and liability which it
may at any time suffer or incur in connection with:

         (a)      any failure by the Debtor to duly and punctually pay or
                  perform the Liabilities;

         (b)      any loss for any reason whatsoever, including by operation of
                  law, the negligence of the Creditor or otherwise, of any right
                  of the Creditor against the Debtor or the Guarantor; and

         (c)      any action or omission of the Creditor in connection with the
                  enforcement of any of its rights against the Debtor or the
                  Guarantor or under any Security.

3.                Representations and Warranties

                  The Guarantor represents and warrants to the Creditor as
follows:

3.01              INCORPORATION

                  The Guarantor is validly incorporated and organized and is a
valid and subsisting corporation under the laws applicable to it.

3.02              CAPACITY

                  The Guarantor has the power, capacity, legal right and
authority to execute and perform this Guarantee.

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                                     - 5 -

3.03              LICENCES

                  The Guarantor has the power, capacity, legal right and
authority, and holds all licences, permits and consents that it requires, to own
its property and to carry on its current business, and any business in which it
contemplates it will engage, in each relevant jurisdiction.

3.04              NON-CONFLICT

                  Neither the execution nor the performance of this Guarantee
requires the approval of any regulatory agency having jurisdiction over the
Guarantor nor is this Guarantee in contravention of or in conflict with the
articles, by-laws or resolutions of the directors or shareholders of the
Guarantor or of the provisions of any Agreement to which the Guarantor is a
party or by which any of its property may be bound or of any statute,
regulation, by-law, ordinance or other law, or of any judgment, decree, award,
ruling or order to which the Guarantor or any of its property may be subject.
Neither the execution nor the performance of this Guarantee will oblige the
Guarantor to grant any encumbrance of any kind to any Person other than the
Creditor.

3.05              NO DEFAULT

                  The Guarantor is not in breach of or in default under any
Agreement to which it is a party.

3.06              ENFORCEABILITY

                  This Guarantee constitutes a valid and legally binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms, subject only to applicable bankruptcy, insolvency or other statutes
or jurisprudence affecting the enforcement of creditors' rights in general, and
to general principles of equity under which specific performance and injunctive
relief may be awarded by a court in its discretion.

3.07              FINANCIAL INFORMATION

                  In all information and financial statements supplied for the
benefit of the Creditor, the Guarantor has made no untrue statement of any
material fact, and has revealed all material facts the omission of which would
make such information and statements misleading. The Guarantor has disclosed all
facts which materially adversely affect or, so far as the Guarantor can
reasonably foresee, will materially adversely affect the business, properties,
prospects or financial condition of the Guarantor or the ability of the
Guarantor to pay or perform the Obligations. All accounting information and
financial statements have been prepared in accordance with generally accepted
accounting principles.

3.08              DUE AUTHORIZATION BY GUARANTOR

                  The Guarantor has taken all necessary corporate action, and
those signing on its behalf have been duly authorized, to execute this Guarantee
effectively.

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                                     - 6 -

3.09              RELIANCE AND SURVIVAL

                  All representations and warranties of the Guarantor made
herein or in any certificate or other document delivered by or on behalf of the
Guarantor for the benefit of the Creditor are material, shall survive the
execution and delivery of this Guarantee and shall continue in full force and
effect without time limit. The Creditor shall be deemed to have relied upon each
such representation and warranty notwithstanding any investigation made by or on
behalf of the Creditor at any time.

4.                COVENANTS OF THE GUARANTOR

                  The covenants set forth in the Credit Agreement which are
applicable to the Guarantor in its capacity as a subsidiary of the Debtor are
deemed to be made herein by the Guarantor in favour of the Creditor as if such
covenants were included herein mutatis mutandis. In addition he Guarantor
further covenants:

4.01              WAIVER

                  The Guarantor hereby waives both notice of the existence or
creation of the Liabilities and presentment, demand, dishonour, notice of
dishonour, protest, notice of protest and all other notices whatsoever.

4.02              NO REQUIREMENT TO EXHAUST RECOURSE

                  The Creditor shall not be bound to seek or exhaust its
recourse against the Debtor or any other Person nor to enforce or value any
Security before being entitled to payment under this Guarantee. The Guarantor
renounces the benefits of discussion and division, if applicable.

4.03              PAYMENT OF OBLIGATIONS

                  The Guarantor shall pay to the Creditor, at any office of the
Creditor as notified in writing by the Creditor, all amounts payable hereunder,
in the applicable currencies of the Liabilities, free and clear and without
deduction for any present or future Taxes, charges or withholdings.

4.04              ASSIGNMENT AND POSTPONEMENT

                  All present and future obligations and liabilities of the
Debtor to the Guarantor are assigned to the Creditor and postponed to the
Liabilities and all moneys received from the Debtor or for its account by the
Guarantor or its representatives or assigns shall be received in trust for the
Creditor and, forthwith upon receipt, paid over to the Creditor in reduction of
the Liabilities, all without prejudice to and without in any way limiting,
lessening or releasing the Obligations. This assignment and postponement is
independent of the Guarantor's other Obligations, and shall remain in effect
even though the Guarantor has no further liability to guarantee the payment or
performance of the Liabilities.

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                                     - 7 -

4.05              POSTPONED SUBROGATION

                  The Guarantor shall not be subrogated to any right or remedy
of the Creditor until the Liabilities have been paid and performed in full and
the Creditor no longer has any obligation, actual or contingent, to provide
financial accommodation to the Debtor. Thereafter, the Guarantor may require the
Creditor to assign to the Guarantor any of its rights and remedies then
remaining with respect to the Liabilities, but any such assignment shall only be
without representation or warranty by, or recourse against, the Creditor.

4.06              BANKRUPTCY

                  Upon any voluntary or involuntary liquidation, dissolution or
winding-up of the Debtor or any surety or guarantor of the Liabilities, any sale
or other disposition of all or substantially all of the assets of the Debtor, or
any insolvency, bankruptcy, reorganization, moratorium, arrangement with
creditors, judicial or extra-judicial receivership, or other similar proceedings
affecting the Debtor or any surety or guarantor for any Liabilities, the rights
of the Creditor shall not be limited, lessened or released by its omission to
prove its claim or to prove its full claim and it may prove such claim as it
sees fit and may refrain from proving any claim and in its discretion it may
value as it sees fit or refrain from valuing any security or securities held by
it, without in any way lessening, limiting or releasing the liability to it of
the Guarantor and until the Liabilities have been fully paid or discharged, the
Creditor shall have the right to include in its claim the amount of all sums
paid to the Creditor under this Guarantee and to prove and rank for and receive
dividends in respect thereof. Any and all rights to prove and rank for such sums
paid by the Guarantor and to receive the full amount of all dividends in respect
thereto are assigned by the Guarantor to the Creditor.

4.07              SET-OFF, COMBINATION OF ACCOUNTS AND CROSSCLAIMS

                  The Guarantor will pay and perform the Obligations without
regard to any equities between the Guarantor, the Debtor and the Creditor, or
any of them, or any defence or right of set-off, combination of accounts or
cross-claim which the Debtor or the Guarantor may have.

4.08              POWERS

                  The Creditor need not inquire into the powers of the Debtor or
its directors, officers, employees or agents purporting to act on its behalf.
All advances, credits or other financial accommodation in fact obtained from the
Creditor in the purported exercise of such powers shall be deemed to be part of
the Liabilities. The Guarantor will not contest the validity of any of the
Liabilities on the grounds that the Liabilities were obtained irregularly,
fraudulently, defectively or informally or in excess of the powers of the Debtor
or of its directors, officers, employees or agents, even if the Creditor had
notice of any such powers.

4.09              SURVIVAL OF GUARANTEE

                  The Obligations shall continue unaffected by any change in the
name of the Debtor or of the Guarantor, or by any change whatsoever in the
objects, capital structure or

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                                     - 8 -

constitution of the Debtor or the Guarantor, or by the Debtor or the Guarantor
being amalgamated with another corporation.

4.10              FURTHER ASSURANCES

                  The Guarantor shall at all times do, execute, acknowledge and
deliver or cause to be done, executed, acknowledged or delivered all such
further acts, deeds, transfers, assignments and assurances as the Creditor may
reasonably require in order to give effect to the provisions of this Guarantee.

4.11              PAYMENT OF REALIZATION COSTS

                  The Guarantor shall reimburse or pay the Creditor on demand
for all costs, expenses and reasonable legal fees paid or incurred by the
Creditor in enforcing the Liabilities, the Obligations or any Security. The
Guarantor shall pay interest on the amount of each such demand at a rate of 7.5%
per annum, compounded and payable monthly both before and after judgment and
default, commencing on the 15th day following such demand until payment of such
amount is made in full.

4.12              NO TERMINATION

                  This Guarantee and the Obligations are irrevocable. The
Guarantor may not terminate its liability in regard to any Liabilities,
including future Liabilities, without the prior written consent of the Lender.

4.13              FINANCIAL CONDITION OF DEBTOR

                  The Guarantor acknowledges that it has fully informed itself
about the financial condition of the Debtor. The Guarantor assumes full
responsibility for keeping fully informed of the financial condition of the
Debtor and all other circumstances affecting the Debtor's ability to pay or
perform the Liabilities, and agrees that the Creditor has no duty to report to
the Guarantor any information which the Creditor has or receives about the
Debtor's financial condition or any circumstances bearing on its ability to pay
or perform the Liabilities.

5.                Rights of the Creditor

5.01              APPROPRIATIONS

                  The Creditor may, at its sole discretion, appropriate moneys
received to such of the Liabilities, and in such order, as it sees fit, and may
change any appropriation at any time.

5.02              DEALING WITH LIABILITIES AND SECURITY

                  Without limiting Section 2.04, the Creditor may:

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                                     - 9 -

         (a)      grant or allow any waiver, consent, extension, indulgence or
                  other act or omission in respect of any Agreement, any of the
                  Liabilities or any Security;

         (b)      do, or omit to do, anything to enforce the payment or
                  performance of any Agreement, any of the Liabilities or any
                  Security;

         (c)      give, refuse, cease or refrain from giving any credit, loans
                  or other financial accommodation to the Debtor;

         (d)      vary, compromise, exchange, renew, discharge, release,
                  subordinate, postpone or abandon any Agreement, any of the
                  Liabilities or any Security;

         (e)      take, refuse or refrain from taking any Security;

         (f)      refuse or omit to register or otherwise perfect or keep
                  perfected any Security; or

         (g)      deal with or allow the Debtor, the Guarantor or any other
                  Person to deal with goods or property covered by any Security;

all when and in such manner and with or without notice as the Creditor may deem
expedient. The Creditor may do, or omit or refuse to do, anything enumerated in
this Section without thereby lessening, limiting or releasing the Obligations or
its rights and remedies under this Guarantee in any way, even if the effect is
to deprive the Guarantor of any right or opportunity to be reimbursed by the
Debtor or any other Person for any sums paid to the Creditor, and even if any
such action or omission results from inadvertence or negligence of any Person.

5.03              ASSIGNMENT

                  The Creditor may, without notice to the Guarantor, assign or
transfer the Liabilities or any of its rights and remedies under this Guarantee.
The Creditor shall have an unimpaired right, prior and superior to that of any
such assignee or transferee to enforce this Guarantee for the benefit of the
Creditor as to such of the Liabilities as the Creditor has not assigned or
transferred.

5.04              CREDITOR ACCOUNTS TO GOVERN

                  The amount of the Liabilities at any time shall be deemed to
be as stated by the Creditor based solely on its records. The Guarantor shall be
bound by any account settled between the Creditor and the Debtor. Any
acceleration of any of the Liabilities shall be binding on the Guarantor, even
if contested by the Debtor.

5.05              GUARANTEE IN ADDITION

                  The rights and remedies of the Creditor hereunder are in
addition to and not in substitution for any other rights or remedies which the
Creditor has at any time against the Debtor respecting the Liabilities or under
any Security.

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                                     - 10 -

5.06              SUCCESSORS AND ASSIGNS

                  This Guarantee shall enure to the benefit of the Creditor's
successors and assigns and all Obligations shall be binding upon the successors
and assigns of the Guarantor.

5.07              SET-OFF BY THE CREDITOR

                  Whenever any  Obligation  is due and  payable,  the Creditor
may,  without  prior demand or notice to the Guarantor,

         (a)      appropriate and apply to such Obligation any property,
                  balances, credits, accounts or moneys of the Guarantor then in
                  its possession or control, whether received by the Creditor
                  for safekeeping, as agent for collection or transmission or
                  otherwise, and

         (b)      set-off any deposits or other sums at any time credited by or
                  due from the Creditor to the Guarantor, whether in a special
                  or other account or represented by a certificate of deposit or
                  deposit receipt (and whether or not the liability of the
                  Creditor therefor is conditional, contingent or unmatured),

all notwithstanding the contrary term of any present or future account or
instrument.

5.08              RIGHT TO RECOVER FOR CONTINGENT LIABILITIES

                  Whenever the Creditor may demand payment or performance of any
of the Obligations, the Guarantor must, upon demand, also pay the Creditor an
amount equal to the Creditor's maximum aggregate potential liability (including
without limitation out-of-pocket expenses and fees) under all outstanding
Contingent Facilities. Such amount may be held by the Creditor as collateral
security or for offset against the obligations of the Creditor under the
Contingent Facilities or applied by the Creditor as a prepayment thereof.

6.                GENERAL

6.01              NOTICES

                  Any notice, demand or other communication (in this Section, a
"notice") from the Guarantor to the Creditor shall be in writing and shall be
sufficiently given or made if:

         (a)      delivered in person during normal business hours on a Business
                  Day and left with a receptionist or other responsible employee
                  of the Creditor at the address set out in the first paragraph
                  of this Guarantee;

         (b)      sent by prepaid first class mail; or

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                                     - 11 -

         (c)      sent by any electronic means of sending messages, including
                  telex or facsimile transmission, which produces a paper record
                  during normal business hours on a Business Day charges prepaid
                  and confirmed by prepaid first class mail.

                  The Creditor may change its address by giving notice to the
Guarantor.

6.02              TIME OF THE ESSENCE

                  Time is of the essence of each provision of this Guarantee.

6.03              GOVERNING LAW

                  This Guarantee shall be governed by, and interpreted and
enforced in accordance with, the laws in force in the State of New York. The
Guarantor irrevocably submits to the jurisdiction of the courts of the State of
New York with respect to any matter arising hereunder or related hereto.

6.04              GUARANTEE EFFECTIVE IMMEDIATELY

                  Neither the execution of, nor any filing with respect to, this
Guarantee shall bind the Creditor to grant any credit, loans or other financial
accommodation to the Debtor, but the Obligations shall arise forthwith upon the
execution of this Guarantee by the Guarantor. Possession of this instrument by
the Creditor shall be conclusive evidence against the Guarantor that this
Guarantee was not delivered in escrow or pursuant to any Agreement that it
should not be effective until any terms or conditions precedent or subsequent
have been complied with.

6.05              ENTIRE AGREEMENT

                  There are no representations, warranties, conditions, other
agreements or acknowledgements, whether direct or collateral, express or
implied, that form part of or affect this Guarantee. The execution of this
Guarantee has not been induced by, nor does the Guarantor rely upon or regard as
material, any representations, warranties, conditions, other agreements or
acknowledgements not expressly made in this Guarantee or in the agreements and
other documents to be delivered pursuant hereto.

6.06              SEVERABILITY

                  If any provision of this Guarantee is determined to be invalid
or unenforceable by a court of competent jurisdiction from which no further
appeal lies or is taken, that provision shall be deemed to be severed herefrom,
and the remaining provisions of this Guarantee shall not be affected thereby and
shall remain valid and enforceable.

6.07              JUDGMENT CURRENCY

                  If, for the purposes of obtaining or enforcing judgment in any
court in any jurisdiction, it becomes necessary to convert into the currency of
the jurisdiction giving such judgment (the "Judgment Currency") an amount due
hereunder in any other currency (the

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                                     - 12 -

"Original Currency"), then the date on which the rate of exchange for conversion
is selected by that court is referred to herein as the "Conversion Date." If
there is a change in the rate of exchange between the Judgment Currency and the
Original Currency between the Conversion Date and the actual receipt by the
Creditor of the amount due hereunder or under such judgment, the Guarantor
shall, notwithstanding such judgment, pay all such additional amounts as may be
necessary to ensure that the amount received by the Creditor in the Judgment
Currency, when converted at the rate of exchange prevailing on the date of
receipt, will produce the amount due in the Original Currency. The Guarantor's
liability hereunder constitutes a separate and independent liability which shall
not merge with any judgment or any partial payment or enforcement of payment of
sums due under this Guarantee. The term "rate of exchange," as used in this
Section, includes any premiums or costs payable in connection with the currency
conversion then being effected.

6.08              AMENDMENT

                  This Guarantee may only be amended or supplemented by a
written agreement signed by the Guarantor and the Creditor.

6.09              WAIVER OF RIGHTS

                  Any waiver of, or consent to depart from, the requirements of
any provision of this Guarantee shall be effective only in the specific instance
and for the specific purpose for which it has been given. No failure on the part
of the Creditor to exercise, and no delay in exercising, any right under this
Guarantee shall operate as a waiver of such right. No single or partial exercise
of any such right shall preclude any other or further exercise of such right or
the exercise of any other right.

6.10              RECEIPT OF COPY

                  The Guarantor acknowledges receipt of an executed copy of this
Guarantee.

                  TO WITNESS this Guarantee, the Guarantor has caused it to be
duly signed and sealed.

                                       By:
                                          -------------------------------
                                          - name and title of signatory

                                                                          (seal)

                                       By:
                                          -------------------------------
                                          - name and title of signatory

<PAGE>   16
                                     - 13 -<PAGE>   1
                                                                    Exhibit 10.4

                               INDEMNITY AGREEMENT

     INDEMNITY AGREEMENT ("Indemnity Agreement"), dated this ___ day of ____,
_____, between First Union Real Estate Equity and Mortgage Investments, an Ohio
business trust having its principal place of business at 55 Public Square, Ste.
1900, Cleveland, OH  44113 ("First Union"), and Imperial Parking Corporation, a
Delaware corporation having its principal place of business at 601 West Cordova
Street, Suite 300, Vancouver, BC Canada V6B 1G1 ("Impark").

                                  WITNESSETH:

     WHEREAS, First Union desires to distribute all of the outstanding common
stock of Impark to First Union shareholders pursuant to a Memorandum of
Understanding dated _________________;

     WHEREAS, Impark desires that First Union distribute all of the shares of
Impark Common Stock that First Union holds to the First Union shareholders; and

     WHEREAS, the Boards of Directors of First Union and Impark have adopted a
resolution approving this Indemnity Agreement;

     NOW THEREFORE, in consideration of the foregoing premises and the
undertakings herein contained and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

                                   ARTICLE I
                               STATEMENT OF FACTS

     1.1 Oracle Litigation. Newcourt Financial Ltd., as the assignee of Oracle
Corporation Canada Inc., has brought suit against First Union Management, Inc.,
an affiliate of First Union ("FUMI"), and Imperial Parking Limited, a
subsidiary of Impark ("Impark Limited"), in Ontario Superior Court.  The suit
alleges that the plaintiff is owed $825,000 (USD) plus interest and costs
pursuant to a payment plan agreement among Oracle Corporation Canada Inc., FUMI
and Impark Limited.  This matter shall be referred to herein as the "Oracle
Litigation".

<PAGE>   2

     1.2 VenTek Bond I. Reference is made to Contract A950 (97031) between
VenTek International, Inc., a California corporation and subsidiary of FUMI
("VenTek"), and the Santa Clara County Transit District. In connection with that
contract, VenTek was required to furnish a Performance/Payment/Maintenance Bond
for Public Works in favor of Santa Clara County Transit District, in the sum of
$5,316,483.00 (USD). The National Fire Insurance Company of Hartford is Surety
for the bond, dated February 13, 1998. At the time the bond was executed, VenTek
was a subsidiary of Imperial Parking (U.S.), Inc., a predecessor of Impark
("Impark US"). This matter shall be referred to as "VenTek Bond I" in this
Indemnification Agreement.

     1.3 VenTek Bond II. Reference is made to Ticket Vending Equipment Contract
C-60379JPB between VenTek and the Peninsula Corridor Joint Powers Board.  In
connection with that contract, VenTek was required to furnish a
Performance\Payment\Maintenance\ Guarantee Bond in favor of the Peninsula
Corridor Joint Powers Board, in the sum of $6,169,265 (USD).  The National Fire
Insurance Company of Hartford is Surety for the bond, dated February 25, 1998.
At the time the bond was executed, VenTek was a subsidiary of Impark U.S.  This
matter shall be referred to as "VenTek Bond II" in this Indemnification
Agreement.

                                   ARTICLE II
                                 INDEMNIFICATION

     2.1 Indemnification by First Union.  First Union shall indemnify Impark
and each of its affiliates, directors, officers, employees, consultants and
agents in respect of, and hold each such party harmless against, any and all
debts, obligations and other liabilities (whether absolute, accrued,
contingent, fixed or otherwise, or whether known or unknown, or due or to
become due or otherwise), monetary damages, fines, fees, penalties, interest
obligations, deficiencies, losses and expenses (including without limitation
amounts paid in settlement, interest, court costs, costs of investigators,
reasonable fees and expenses of attorneys, accountants, financial advisors and
other experts, and other expenses of litigation whether or not resulting in any
liability) ("Damages") incurred or suffered by Impark or each such party
resulting from, relating to or constituting:

     (a) the Oracle Litigation, but only to the extent that Damages resulting
from, relating to or constituting the Oracle Litigation exceed $605,000;

                                      -2-

<PAGE>   3

     (b) VenTek Bond I; and

     (c) VenTek Bond II.

     2.2 Indemnification Claims.

     (a) A party entitled, or seeking to assert rights, to indemnification
under this Article II (an "Indemnified Party") shall give written notification
to the party from whom indemnification is sought (an "Indemnifying Party") of
the commencement of any suit or proceeding relating to a third party claim for
which indemnification pursuant to this Article II may be sought.  Such
notification shall be given within 20 business days after receipt by the
Indemnified Party of notice of such suit or proceeding, and shall describe in
reasonable detail (to the extent known by the Indemnified Party) the facts
constituting the basis for such suit or proceeding and the amount of the
claimed damages; provided, however, that no delay on the part of the
Indemnified Party in notifying the Indemnifying Party shall relieve the
Indemnifying Party of any liability or obligation hereunder except to the
extent of any damage or liability caused by or arising out of such failure.
Promptly, and in any event within 20 days after delivery of such notification,
the Indemnifying Party may, upon written notice thereof to the Indemnified
Party, assume control of the defense of such suit or proceeding with counsel
reasonably satisfactory to the Indemnified Party; provided that (i) the
Indemnifying Party may only assume control of such defense if it acknowledges
in writing to the Indemnified Party that any Damages that may be assessed
against the Indemnified Party in connection with such suit or proceeding shall
be indemnified pursuant to this Article II and (ii) the Indemnifying Party may
not assume control of the defense of a suit or proceeding involving criminal
liability or in which equitable relief is sought against the Indemnified Party.
If the Indemnifying Party does not so assume control of such defense, the
Indemnified Party shall control such defense.  The party not controlling such
defense (the "Non-controlling Party") may participate therein at its own
expense; provided that if the Indemnifying Party assumes control of such
defense and the Indemnified Party reasonably concludes that the Indemnifying
Party and the Indemnified Party have conflicting interests or different
defenses available with respect to such suit or proceeding, the reasonable fees
and expenses of counsel to the Indemnified Party shall be considered "Damages"
for purposes of this Agreement.  The party controlling such defense (the
"Controlling Party") shall keep the Non-controlling Party advised of the status
of such suit or proceeding and the defense thereof and shall consider in good
faith recommendations made by the Non-controlling Party with respect thereto.
The Non-controlling Party shall furnish the Controlling Party with such
information as it may have with respect to such suit or proceeding (including
copies of any summons, complaint

                                      -3-

<PAGE>   4

or other pleading which may have been served on such party and any written
claim, demand, invoice, billing or other document evidencing or asserting the
same) and shall otherwise cooperate with and assist the Controlling Party in
the defense of such suit or proceeding.  The Indemnifying Party shall not agree
to any settlement of, or the entry of any judgment arising from, any such suit
or proceeding without the prior written consent of the Indemnified Party, which
shall not be unreasonably withheld or delayed.  The Indemnified Party shall not
agree to any settlement of, or the entry of any judgment arising from, any such
suit or proceeding without the prior written consent of the Indemnifying Party,
which shall not be unreasonably withheld or delayed.

     (b) Impark hereby acknowledges that First Union is the Controlling Party
with respect to the Oracle Litigation, VenTek Bond I and VenTek Bond II.  First
Union acknowledges that any damages, fines, costs or other liabilities that may
be assessed against Impark in connection with the Oracle Litigation, VenTek Bond
I and VenTek Bond II constitute Damages for which Impark shall be indemnified
pursuant to this Article II.

     (c) In order to seek indemnification under this Article II other than as
provided in Section 2.2(a) above, an Indemnified Party shall give written
notification (a "Claim Notice") to the Indemnifying Party which contains (i) a
description and the amount (the "Claimed Amount") of any Damages incurred or
reasonably expected to be incurred by the Indemnified Party, (ii) a statement
that the Indemnified Party is entitled to indemnification under this Article II
for such Damages and a reasonable explanation of the basis therefor, and (iii)
a demand for payment (in the manner provided in paragraph (d) below) in the
amount of such Damages.

     (d) Within 20 days after delivery of a Claim Notice, the Indemnifying
Party shall deliver to the Indemnified Party a written response (the
"Response") in which the Indemnifying Party shall:  (i) agree that the
Indemnified Party is entitled to receive all of the Claimed Amount (in which
case the Response shall be accompanied by a payment by the Indemnifying Party
to the Indemnified Party of the Claimed Amount, by check or by wire transfer);
(ii) agree that the Indemnified Party is entitled to receive part, but not all,
of the Claimed Amount (the "Agreed Amount") (in which case the Response shall
be accompanied by a payment by the Indemnifying Party to the Indemnified Party
of the Agreed Amount, by check or by wire transfer) or (iii) dispute that the
Indemnified Party is entitled to receive any of the Claimed Amount.  If the
Indemnifying Party in the Response disputes its liability for all or part of
the Claimed Amount, the Indemnifying Party and the Indemnified Party shall
follow the procedures set forth in Section 2.2(e) for the resolution of such
dispute (a "Dispute").

                                      -4-

<PAGE>   5

     (e) During the 60-day period following the delivery of a Response that
reflects a Dispute, the Indemnifying Party and the Indemnified Party shall use
good faith efforts to resolve the Dispute.

     (f) Notwithstanding the other provisions of this Section 2.2, if a third
party asserts (other than by means of a lawsuit) that an Indemnified Party is
liable to such third party for a monetary or other obligation which may
constitute or result in Damages for which such Indemnified Party may be
entitled to indemnification pursuant to this Article II, and such Indemnified
Party reasonably determines that it has a valid business reason to fulfill such
obligation, then (i) such Indemnified Party shall be entitled to satisfy such
obligation, without prior notice to or consent from the Indemnifying Party,
(ii) such Indemnified Party may subsequently make a claim for indemnification
in accordance with the provisions of this Article II, and (iii) such
Indemnified Party shall be reimbursed, in accordance with the provisions of
this Article II, for any such Damages for which it is entitled to
indemnification pursuant to this Article II (subject to the right of the
Indemnifying Party to dispute the Indemnified Party's entitlement to
indemnification, or the amount for which it is entitled to indemnification,
under the terms of this Article II).

     2.3 Withdrawal of Claims.  If the legal proceeding or written claim with
respect to which a claim notice has been given is definitively withdrawn or
resolved in favor of the Indemnified Party, the Indemnified Party shall
promptly so notify the Indemnifying Party.

                                  ARTICLE III
                                  TERMINATION

     3.1 Termination of Agreement.  The Parties may terminate this Agreement by
mutual written consent.

     3.2 Effect of Termination.  If any Party terminates this Agreement
pursuant to Section 3.1, all obligations of the Parties hereunder shall
terminate without any further liability of any Party to any other Party (except
for any liability of any Party for breaches of this Agreement).

                                      -5-

<PAGE>   6

                                   ARTICLE IV
                                 MISCELLANEOUS

     4.1 Press Releases and Announcements.  No Party shall issue any press
release or public announcement relating to the subject matter of this Indemnity
Agreement including with respect to the settlement of any claim without the
prior written approval of the other Parties; provided, however, that any Party
may make any public disclosure it believes in good faith is required by
applicable law, regulation or stock market rule (in which case the disclosing
Party shall use reasonable efforts to advise the other Parties and provide them
with a copy of the proposed disclosure prior to making the disclosure).  The
Parties hereby consent to the filing of this Indemnity Agreement with the
United States Securities and Exchange Commission in connection with the Impark
Form 10 filing.

     4.2 No Third Party Beneficiaries.  This Indemnity Agreement shall not
confer any rights or remedies upon any person other than the Parties and the
affiliates of Impark that are entitled to indemnification hereunder and their
respective successors and permitted assigns.

     4.3 Entire Agreement.  This Indemnity Agreement (including the documents
referred to herein) constitutes the entire agreement among the Parties and
supersedes any prior understandings, agreements or representations by or among
the Parties, written or oral, with respect to the subject matter hereof.

     4.4 Succession and Assignment.  This Indemnity Agreement shall be binding
upon and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns.  No Party may assign either this Agreement or
any of its rights, interests or obligations hereunder without the prior written
approval, not to be unreasonably withheld or delayed, of the other Party.

     4.5 Counterparts and Facsimile Signature.  This Indemnity Agreement may be
executed in two or more counterparts, each of which shall be deemed an original
but both of which together shall constitute one and the same instrument.  This
Indemnity Agreement may be executed by facsimile signature.

     4.6 Headings.  The section headings contained in this Indemnity Agreement
are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Indemnity Agreement.

                                      -6-

<PAGE>   7

     4.7 Notices. All notices, requests, demands and other communications under
this Indemnity Agreement shall be in writing and shall be deemed to have been
duly given (i) on the date of service if served personally on the party to whom
notice is given, (ii) on the day of transmission if sent via facsimile
transmission to the facsimile number given below, provided telephonic
confirmation of receipt is obtained promptly after completion of transmission,
(iii) on the business day after delivery to an overnight courier service or the
Express mail service maintained by the United States Postal Service, provided
receipt of delivery has been confirmed, or (iv) on the fifth day after mailing,
if mailed by registered or certified mail, postage prepaid, properly addressed
and return-receipt requested, in all cases to the parties as follows:

                    First Union Real Estate Equity and
                    Mortgage Investments
                    551 Fifth Avenue
                    New York, NY 10176-1499
                    Attention: Chief Executive Officer
                    Telephone:  (212) 905-1100
                    Telephone:  (212) 905-1102

                  or

                    Imperial Parking Corporation
                    501 West Corodova Street, Suite 300
                    Vancouver, BC Canada V6B1G1
                    Attention: Chief Executive Officer
                    Telephone:  (604) 331-7206
                    Telephone:  (212) 331-7172

     4.8 Governing Law.  This Indemnity Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York without
giving effect to any choice or conflict of law provision or rule (whether of
the State of New York or any other jurisdiction) that would cause the
application of laws of any jurisdictions other than those of the State of New
York.

     4.9 Amendments and Waivers.  No amendment of any provision of this
Indemnity Agreement shall be valid unless the same shall be in writing and
signed by both of the Parties.  No waiver of any right or remedy hereunder
shall be valid unless the same shall be in writing and signed by the Party
giving such waiver.  No waiver by any Party with respect to any default,

                                      -7-

<PAGE>   8

misrepresentation or breach of warranty or covenant hereunder shall be deemed
to extend to any prior or subsequent default, misrepresentation or breach of
warranty or covenant hereunder or affect in any way any rights arising by
virtue of any prior or subsequent such occurrence.

     4.10 Severability.  Any term or provision of this Indemnity Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.  If the final judgment of a
court of competent jurisdiction declares that any term or provision hereof is
invalid or unenforceable, the Parties agree that the court making the
determination of invalidity or unenforceability shall have the power to limit
the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified.

     4.11 Construction.

     (a) The language used in this Agreement shall be deemed to be the language
chosen by the Parties to express their mutual intent, and no rule of strict
construction shall be applied against any Party.

     (b) Any reference to any federal, state, local or foreign statute or law
shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise.

                                      -8-

<PAGE>   9

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first above written.

                                    FIRST UNION REAL ESTATE EQUITY & MORTGAGE
                                    INVESTMENTS

                                    By:____________________________________

                                    Name:__________________________________

                                    Title:_________________________________

                                    IMPERIAL PARKING CORPORATION

                                    By:____________________________________

                                    Name:__________________________________

                                    Title:_________________________________

                                      -9-

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