Document:

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                                                                   EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

        This Employment Agreement (the "Agreement") dated this 25th day of
January, 1 999 between Colomotion, Inc., a California corporation (the
"Company") and Charles M. Skibo, General Partner for the Skibo Family Limited
Partnership (the "Executive").

                                  W I T N E S S E T H :

        WHEREAS, the Company is engaged in and seeks to expand its business in
the telecommunications industry. And the Executive has substantial experience in
managing and operating businesses or being a senior management executive in the
telecommunications industry that would be very beneficial to the Company's
operations and future profitability.

        WHEREAS, the Company believes its progress and its prospects for future
development and growth are significantly enhanced if the Executive were to serve
as the Company's Chairman and Chief Executive Officer.

        WHEREAS, the Board of Directors of the Company (the "Board") has
authorized this Agreement with the Executive and has approved its terms and
conditions, all of which the Board has found to be reasonable, proper, and in
the best interest of the Company;

        WHEREAS, the Company and the Executive desire to set forth the terms and
conditions pursuant to which the Executive will be employed by the Company; and

        WHEREAS, the Executive is willing to be employed by the Company pursuant
to the terms and conditions set forth herein;

        NOW THEREFORE, in consideration of the foregoing premises and of the
mutual covenants and undertakings contained herein, the parties to this
agreement hereby agree as follows:

                                    ARTICLE I

                       EMPLOYMENT DUTIES AND COMPENSATION

1.01 (a) Initial Term of Employment and Duties:

        The Company and the Executive hereby agree that for a three (3) year
period beginning January 25,1999 and terminating on January 24, 2002 (the
"Termination Date"), the Company shall employ the Executive and the Executive
shall perform services for the Company at the Company's headquarters location. A
120 day transition period will be provided to Executive so that Executive may
complete projects outside the scope of Executive's responsibilities with the
Company. It is estimated that these activities will consume approximately 25% of
Executive's time.

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        (b) Renewal of Term:

        Unless the Company shall have given the Executive written notice at
least 180 days poor to the Termination Date, this Agreement shall renew and
continue in effect for additional one-year periods (and all provisions of this
Agreement shall continue in full force and effect), and each successive
anniversary from such original Termination Date shall thereafter be designated
as the "Termination Date" for all purposes under this Agreement, provided,
however, that the Company may, at its election at any time after the expiration
of the initial term of this Agreement, give the Executive notice of termination,
in which event the Executive shall continue to receive, as severance pay, his
base compensation and benefits set forth in Paragraphs (d) and (f) below for 12
full months following such notice of termination. During such 12 month severance
period, the Board may modify the Executive's duties as described in Paragraph
(c) below without triggering the provisions of Section 2.03 below. The Company
agrees that it will not unreasonably withhold any annual renewals of this
Agreement.

        (c) Duties:

        As the Executive shall be entitled to exercise all rights and power and
shall have all the privileges and authorities commensurate with his offices,
including without limitation (i) the fall authority for the operations and
conduct of the business of the Company; (ii) general decision-making authority
with respect to the day-to-day operations of the business of the Company; (iii)
the engagement, retention, and termination of employees and independent
contractors of the Company, the setting of the compensation and other material
terms of employment or engagement of employees and independent contractors and
the establishment of work rules for employees; and (iv) the initiation,
development, and implementation of new business, subject only to the supervision
of the Board. The Executive shall reader his services hereunder in the
headquarters city (or other headquarters location approved by the Board) subject
to such reasonable travel as may be required to perform his duties hereunder.
During the term of employment, the Executive shall devote such time as is
required to perform his services hereunder.

        (d) Compensation:

        During the initial term of this Agreement and for each renewal term
thereafter, the Executive's annual gross base salary pursuant to this agreement
shall be as set forth below:

                (i)     for the first year period immediately following the
                        beginning date above, $225,000, payable at a rate of
                        $18,750 per month; such monthly salary to be accrued
                        until Company secures a second round of financing at
                        which time a lump sum payment of accrued salary will be
                        paid and subsequent salary will be payable in accordance
                        with the Company's regular payroll practices.

                (ii)    for the second year period, $250,000, payable at a rate
                        of $20,833.33 per month.

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                (iii)   for the third year period, $300,000, payable at a rate
                        of $25,000 per month.

                (iv)    upon completion of an IPO during the initial or
                        subsequent period, the Executive's gross annual base
                        salary shall automatically increase to $360,000, payable
                        $30,000 per month.

        Nothing herein shall be deemed to restrict the right of the Board to
increase the Executive annual gross base salary, bonuses and fringe benefits or
grant stock options at any time in its discretion.

        (e) Bonuses:

        The Executive shall be entitled to such bonuses as are described in
Exhibit A attached hereto.

        (f) Fringe Benefits:

        The Company shall provide to the Executive, during the term of this
employment hereunder:

                (i)     All so-called "fringe benefits" including, but not
                        limited to, participation in pension plans, profit
                        sharing plans, hospitalization insurance, medical
                        insurance, dental insurance, disability insurance, life
                        insurance, and the like that are granted to or provided
                        for eligible employees of the Company, or that may be
                        granted to or provided for during the term of the
                        Executive's employment under this Agreement; and

                (ii)    Four weeks paid vacation.

        (g) Initial Options:

        In consideration for his services hereunder, the Company hereby grants
to the Executive an option to acquire the Company's common stock, as described
in Exhibit B.

        (h) Loans:

        Any loans granted to Executive are detailed in Exhibit C.

        (i) Travel and Reimbursement of Expenses:

        The company agrees to pay to on behalf of Executive the cost of travel
and other expenses incurred by Executive on the Company's behalf. It is
understood

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that the Company will reimburse executive for reasonable travel expenses between
the Company and Executive's primary residences provided that reasonable efforts
are made to manage the costs associated with travel.

                                   ARTICLE II

                       RIGHTS ON TERMINATION OF EMPLOYMENT

2.01 Rights to Terminate Employment:

        The Executive may at his option, terminate his employment under this
Agreement upon not less than 60 days notice to the Company given at any time,
provided, however, that the Board of Directors may accept the Executive's
resignation, or may reduce his duties and responsibilities, at any time
following receipt of such notice and this Agreement shall terminate immediately
upon such acceptance except that the provisions of Article 3.01 and 3.02 below
shall survive any such termination for the periods provided therein.

2.02 Disability:

        If, because of mental or physical disability, the Executive shall be
incapable for a period of six consecutive months (the "Disability Period") of
performing his obligations and agreements hereunder (hereinafter referred to as
a "Disability") during which period the provision of this Agreement will
continue to apply in full force and effect, then at the election of the Company
expressed to the Executive in writing, this Agreement shall terminate at the end
of such Disability Period, except that the Executive's benefits shall continue
until the end of this Agreement, and the Executive shall receive one-half of his
base salary then in effect until the end of this Agreement, together with the
bonuses described on Exhibit A hereto. Additionally, any stock options that are
vested or any stock previously exercised but not granted shall be vested and
granted to the Executive upon termination by the Company. The determination of
whether the Executive has suffered a Disability shall be made by three licensed
medical doctors: one chosen by the Company, one chosen by the Executive, and one
chosen by the two doctors so chosen.

2.03 Rights Upon Termination of Employment Without Cause Prior to the
Termination:

        The company may terminate the executive's services without Cause (as
defined in Section 4.20 below) by delivering written notice of such termination
to the Executive. In addition, any (i) material change of the Executive's title,
responsibilities, or authority by the Board without the Elective's concurrence
which is not cured within 30 days after notice by the Executive; or (ii)
material breach by the Company of this Agreement which continues for 30 days
after notice by the Executive (provided that the Executive shall not also be in
breach of this Agreement). shall be deemed termination by the Company without
cause. In the event of termination pursuant to clauses (i) or (ii) of the
preceding sentence, the Executive shall be entitled to give notice of
termination, which notice shall have the same effect as a notice delivered by
the Company.

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        If, prior to the Termination Date, the Company terminates the
Executive's employment for any reason other than Cause or Disability, then the
Company shall:

                (i)     continue to pay the Executive (in the same manner as
                        prior to such termination) after the date of such
                        termination the compensation provided under Section 1.01
                        above through the Termination Date as if the Executive
                        had been employed hereunder during such period;

                (ii)    pay of all bonuses quarterly as if the mutually agreed
                        upon targets were met; and

                (iii)   provide the Executive with continued coverage through
                        the Termination Date under any employee benefit plan (as
                        such term is defined in Section 3(3) of the Date
                        Executive Retirement Income Security Action of 1974, as
                        amended) then maintained by the Company and which the
                        Executive then participates or any successor plan
                        thereof. Notwithstanding, 2.03 iii above, the Company
                        hereby agrees to maintain the Executive's
                        hospitalization/ medical/dental/disability and life
                        insurance policy in effect at the time of termination
                        through the full period of this Agreement, to continue
                        to pay any premium to maintain the policy through the
                        full period of this Agreement, and the Executive may, at
                        his option and his expense at the end of this Agreement
                        or termination, continue the policy without interruption
                        until his death; and

                (iv)    all stock options will immediately vest and the stock
                        granted to the Executive upon his exercise of such
                        options, such stock to be unrestricted except for any
                        governmental restrictions and registered if the Company
                        is a public company at the time of termination or
                        subsequently becomes public.

2.04 Right Upon Termination of Employment For Cause:

        The Company shall have the right at any time, by giving written notice
to Executive to terminate Executive's employment for cause: Cause shall be
deemed to have occurred if the Executive is convicted of a felony or a crime
involving fraud, gross negligence or significant mismanagement of the business.
Upon such termination for cause, Executive shall be paid his current monthly
salary, any bonuses earned up to that point and Executive may exercise any
unexercised options that are vested.

2.05 Beneficiaries of Payments:

        If the Executive shall die before receiving all payments to be made by
the Company to him pursuant to any of the provisions of this Agreement, all such
payments or any remaining payments, as the case may be, shall be made by the
Company to such beneficiary or beneficiaries as the Executive may designate from
time to time by notice in writing filed with the Company, or if the

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Executive shall fail or fail effectively to designate a beneficiary, or if no
beneficiary shall survive the date when the last payment is to be made, any
remaining payments shall be made to the Executive's estate.

                                   ARTICLE III

                           PROTECTIONS/CONFIDENTIALITY

3.01 Covenants Regarding Protections:

        The Executive hereby agrees and covenants to the following:

        (a) Solicitation of Customers and Registered Primary Vendors:

        During the term of this Agreement and for a period of 12 months
following the termination of this Agreement by either party (other than a
termination of this Agreement by the Company's failure to renew it pursuant to
Section 1.01(b) above), the Executive hereby agrees not to solicit or contact in
any manner that could be reasonably construed as a solicitation, any past or
current customer or registered primary vendor of the Company for purposes of
encouraging such customer to refrain from purchasing products or services from
the Company or for purposes of encouraging such vendor to refrain from providing
services or selling products to the Company. Notwithstanding the above, if the
Executive should leave the Company and join a competitive company, it is
recognized by the parties that the industry utilizes a variety of marketing and
sales techniques such as direct mail, telemarketing, advertising, etc. and the
customer might be contacted by the company that the Executive joins as a matter
of course and in this event this practice would not be considered a violation of
this Agreement.

        (b) Solicitation of Executives:

        During the term of this Agreement and for a period of 6 months following
the termination of this Agreement by either party (other than a termination of
this Agreement by the Company's failure to renew it pursuant to Section 1.01 (b)
above), the Executive hereby agrees not to employ, either directly or indirectly
through any entity in which the Executive is an executive officer, and agrees
not to solicit, or contact in any manner that could reasonably be construed as a
solicitation, any executive officer or director of the Company for purposes of
encouraging such person to leave or terminate his employment with the Company.

        3.02 Confidentiality: Competitive or Personal Disparagement:

        The Executive and the Company hereby agree that neither will, during the
term of the Executive's employment or at any time following the termination
hereof for any reason, do or cause to have done any of the following:

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                (i)     without the prior written consent of the other party,
                        use for its own purposes or disclosure to any person or
                        other entity any confidential and/or proprietary
                        information of the Company or the Executive;

                (ii)    each party agrees that it will not disparage the other
                        parry; and

                (iii)   at the termination of this Agreement, each party will
                        present to the other party a written statement of
                        exactly what can be said about each party upon third-
                        party inquiry about the Executive or the Company. Each
                        party will name a spokesperson to handle all inquiries
                        about the Company or the Executive and only the named
                        spokesperson is allowed to comment unless changed by
                        mutual written consent.

                                   ARTICLE IV

4.01 Indemnifications:

        The parties agree that the Executive shall be indemnified by the Company
against any liability asserted against the Executive (and expenses, including
without limitations, reasonable attorney's fees, court costs, and other legal
expenses incurred in connection therewith) by reason of his position with the
Company or any subsidiary to the full extent a California corporation may
indemnify an officer or director under the California General Corporate Law.

4.02 No Obligation to Mitigate Damages:

        In the event of a termination of employment upon a change in control,
the Executive shall not be required to mitigate damages by seeking other
employment.

4.03 Arbitration and Remedies:

        (a) All disputes, differences, or questions between the parties
concerning the construction, interpretation, and effect of the Agreement, or the
rights, obligations and liabilities of the parties, and which have as their sole
remedy monetary damages, will be settled by arbitration in the City of Bethesda,
Maryland, or such other place as the parties may mutually agree. In the case of
a dispute, difference, or question, one party shall appoint its arbitrator and
shall notify the other party in writing (the "Arbitrations Notice") of the
appointment and the matter to be determined. If the party receiving the
Arbitration Notice fails to appoint an arbitrator and notify the first party of
such appointment for 15 days after receipt of such notice, the decision of the
arbitrator appointed by the first of the parties shall be final and binding on
both of the parries hereto. If two arbitrators are appointed, they shall meet
within 30 days after appointment of the second arbitrator. If they do not agree
as to their decision, they shall choose a third arbitrator, failing which, third
arbitrator shall be selected in accordance with the rules of the American
Arbitration Association. The arbitration shall

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be held as promptly as possible at such time and place in the designated city as
the arbitrators may determine. The decision of the arbitrators so appointed, or
a majority of them, will be final and binding upon the parties hereto. Judgment
upon the award may be entered in any court having jurisdiction, or application
may be made to such court for judicial acceptance of the award and an order to
enforcement, as the case may be. If the arbitrator appointed refuses to act or
is incapable of acting or dies, a substitute for him shall be appointed in the
manner provided above.

        (b) Each of the parties to the Agreement will be entitled to enforce its
rights under the Agreement specifically, to recover damages by reason of any
breach of any provision of this Agreement and to exercise all other rights
existing in its favor. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of the
Agreement and that any party may in its sole discretion apply for specific
performance and/or injunctive relief in either a federal or state court in order
to enforce or prevent any violations of the provisions of this Agreement.

4.04 Legal Cost and Indemnification:

        The Company shall pay the Executive all reasonable legal fees and
expenses incurred by him as a result of his termination without Cause or
Disability, including but not limited to, all such fees and expenses, if any,
incurred in contesting or disputing any such termination or in seeking to obtain
or enforce any right or benefit provided in this Agreement through legal process
or arbitration, if the Executive shall be wholly successful on the merits.

4.05 Notices:

        (a) Any notice to be given concerning this Agreement shall be given in
writing and either (i) sent by certified or registered mail, return receipt
requested, postage prepaid; or (ii) hand delivered to the recipient personally.
In the case of notice sent by mail, the date of the giving of the notice shall
be deemed to be (i) the date of the postmark of the executed return receipt; or
(ii) the date of actual receipt if not postmarked by the United States Postal
Service. In the case of notice being hand delivered, a written dated receipt
shall be given therefor. Hand delivery of any notice to the Company shall be
delivered to the Company's chief financial officer personally.

        (b) Notice shall be sent as follows:

        If to the Executive:          Charles M. Skibo, General Partner
                                      Skibo Family Limited Partnership
                                      9045 Holly Leaf Lane
                                      Bethesda, Maryland 20817

        If to the Company:
                                      ----------------------------------

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

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        (c) By giving notice to all other parties, any party may, from time to
time, designate a different address to which notice by mail to such party shall
be sent.

4.06 Successors d Assigns; Survival in Case of Merger:

        (a) This Agreement is intended to bind and inure to the benefit of, and
be enforceable by, the Executive and the Company and their respective successors
and assigns.

        (b) Without limiting the effect of the foregoing, this Agreement and all
of its terms shall survive, and be enforceable by the Executive,
notwithstanding any merger, consolidation, combination or reorganization of the
Company with or into any other entity or person ("Surviving Entity"), including
but not limited to any other corporation, partnership, or other similar
organization, whether or not the Company is the Surviving Entity of such merger,
consolidation, combination, or reorganization. The Surviving Entity shall be
bound by this Agreement to the same extent as if such Surviving Entity had
entered into the Agreement with the Executive on the Effective Date.

        (c) As a condition of any merger, consolidation, combination or
reorganization of the Company as discussed in Section 4.06(b) above, the Company
agrees to include, as a condition of consummation of such merger, consolidation,
combination, or reorganization, an undertaking by the Surviving Entity pursuant
to which the Surviving Entity shall agree in writing to be bound by this
Agreement.

4.07 Amendment Waiver:

        No amendment or other modification of this Agreement nor any waiver of
any term of this Agreement shall be valid unless it is in writing and signed by
the party against whom enforcement of the amendment, modification or waiver is
sought. No waiver by any party of the breach of any term contained in this
Agreement, whether by conduct or otherwise, in any one or more instances, shall
be deemed to be or construed as a further or continuing waiver of any such
breach of any other term of this Agreement.

4.08 Further Assurances:

        Each party hereto agrees to perform any further acts and to execute and
deliver any further documents mutually agreed to in writing that may be
reasonably necessary to carry out the provisions of this Agreement.

4.09 Severability:

        In the event that any of the provisions, or portions thereof, of this
Agreement are held to be unenforceable or invalid by any court of competent
jurisdiction, the validity and enforceability of the remaining provisions, or
portions thereof, shall not be affected thereby.

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4.10 Construction:

        Whenever used herein, the singular number shall include the plural, and
the plural number shall include the singular.

4.11 Gender:

        Any references herein to the masculine gender, or to the masculine form
of any noun, adjective, or possessive, shall be construed to include the
feminine or neuter gender and form, and vice versa.

4.12 Headings:

        The headings contained in this Agreement are for purposes of reference
only and shall not limit or otherwise affect the meaning of any of the
provisions contained herein.

4.13 Multiple Counterparts:

        This Agreement may be executed in multiple counterparts, each of which
shall be deemed to be an original but all of which together shall constitute one
and the same instrument.

4.14 GOVERNING LAW:

        THIS AGREEMENT HAS BEEN EXECUTED IN AND SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF MARYLAND AND THE OBLIGATIONS OF THE PARTIES HERETO SHALL BE
PERFORMABLE IN MONTGOMERY COUNTY.

4.15 Inurement:

        Subject to the restrictions against transfer or assignment as herein
contained, the provisions of the Agreement shall inure to the benefit of, and
shall be binding on, the assigns, successors in interest, personal
representatives, estates, heirs, and legatees of each of the parties hereto.

4.16 Waivers:

        No waiver of any provision or condition of this Agreement shall be valid
unless executed in writing and signed by the party to be bound thereby and then
only to the extent specified in such waiver. No waiver of any provision or
condition of this Agreement shall be construed as a waiver of any other
provision or condition of this Agreement and no present waivers of any provision
or condition of this Agreement shall be construed as a future waiver of such
provision or condition.

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4.17 Entire Agreement:

        This Agreement contains the entire understanding between the parties
hereto concerning the subject matter contained herein.

        IN WITNESS WHEREOF, the parties to the Agreement have set their
respective hands hereto as of the date first written above.

                                            THE EXECUTIVE

                                            CHARLES M. SKIBO,
                                            GENERAL PARTNER
                                            SKIBO FAMILY LIMITED PARTNERSHIP

                                            By: /s/ CHARLES M. SKIBO
                                               ---------------------------------

                                            THE COMPANY

                                            Colomotion, Inc.

                                            By:  /s/ [SIGNATURE ILLEGIBLE]

                                            Its: Director

                                      -11-
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                                  EXHIBIT "A"

                                    BONUSES

-    FIRST YEAR:              Executive will be eligible for a bonus of up
                              to $75,000 payable quarterly based upon the
                              completion of Company objectives and performance
                              criteria to be mutually agreed upon by Executive
                              and the Board of Directors within 60 days from
                              employment start date.

-    SECOND YEAR:             Same as first year, except bonus amount will be up
                              to 60% of base salary.

-    THIRD YEAR:              Same as first year, except bonus amount will be up
                              to 85% of base salary.

-    NOTE:                    Regardless of any other objectives established, if
                              the Company is successful in raising $6 to $10
                              million of equity capital during the first four
                              months of Executive's tenure, the first two
                              quarters' objectives will be met. Furthermore, in
                              the event the Company is successful in raising
                              debt exceeding $25 million for a roll-out, then
                              that year's objectives are met. Moreover, in the
                              event the Company is successful in doing an IPO,
                              then that year's objectives are met.
<PAGE>   13
                                  EXHIBIT "B"

                                INITIAL OPTIONS

     Subject to the approval of the Company's Board of Directors, Executive
will be granted a stock option to purchase 2,848,837 shares of the Company
Common Stock, priced at the fair market value (5 cents per share) on the date of
grant (the "Stock option"). The stock options shall vest over a three year
period, with 60% of the shares vesting one year from start of employment, 20%
vesting two years from start of employment and the remaining 20% vesting three
years from the start of employment. Upon securing of second round financing of
at least $6 million, 35% out of the first-anniversary 60% will accelerate and
vest immediately. There will be no buy-back rights on such shares and the grant
of any options does not imply any right to continued employment except what is
provided herein.
<PAGE>   14
                                    COLO.COM

                       ADDENDUM 1 TO EMPLOYMENT AGREEMENT

     As a condition of my employment with COLO.COM, its subsidiaries,
affiliates, successors or assigns (together the "Company"), and in consideration
of my employment with the Company and my receipt of the compensation now and
hereafter paid to me by Company, I agree to the following as Addendum 1 to my
Employment Agreement with the Company dated January 25, 1999:

     1.   Confidential Information.

          (a)  Company Information. I agree at all times during the term of my
employment and thereafter, to hold in strictest confidence, and not to use,
except for the benefit of the Company, or to disclose to any person, firm or
corporation without written authorization of the Board of Directors of the
Company, any Confidential Information of the Company. I understand that
"Confidential Information" means any Company proprietary information, technical
data, trade secrets or know-how, including, but not limited to, research,
product plans, products, services, customer lists and customers (including, but
not limited to, customers of the Company on whom I called or with whom I became
acquainted during the term of my employment), markets, software, developments,
inventions, processes, formulas, technology, designs, drawings, engineering,
hardware configuration information, marketing, forecasts or other business
information disclosed to me by the Company either directly or indirectly, in
writing, orally, by drawings, or by observation of parts or equipment. I further
understand that Confidential Information does not include any of the foregoing
items which has become publicly known and made generally available through no
wrongful act of mine or of others who were under confidentiality obligations as
to the item or items involved.

          (b)  Former Employer Information. I agree that I will not, during my
employment with the Company, improperly use or disclose any proprietary
information or trade secrets of any former or concurrent employer or other
person or entity and that I will not bring onto the premises of the Company any
unpublished document or proprietary information belonging to any such employer,
person or entity unless consented to in writing by such employer, person or
entity.

          (c)  Third Party Information. I recognize that the Company has
received and in the future will receive from third parties their confidential
or proprietary information subject to a duty on the Company's part to maintain
the confidentiality of such information and to use it only for certain limited
purposes. I agree to hold all such confidential or proprietary information in
the strictest confidence and not to disclose it to any person, firm or
corporation or to use it except as necessary in carrying out my work for the
Company consistent with the Company's agreement with such third party.

     2.   Inventions.

          (a)  Inventions Retained and Licensed. I have attached hereto, as
Exhibit A, a list describing all inventions, original works of authorship,
developments, improvements, and trade secrets which were made by me prior to my
employment with the Company, which belong to me, which relate to the Company's
proposed business, products or research and development, and which are not
assigned to the Company hereunder (collectively referred to as "Prior
Inventions"); or, if such list is attached, I represent that there are no such
Prior Inventions. If in the course of my employment with the Company, I
incorporate into any invention, improvement, development, product, copyrightable
material or trade secret any invention, improvement, development, concept,
discovery or other proprietary information owned by me or in which I have an
interest, the Company is hereby granted and shall have a nonexclusive,
royalty-free, irrevocable, perpetual, worldwide license to make, have made,
modify, use and sell such items as part of or in connection with such product,
process or machine.

          (b)  Assignment of Inventions. I agree that I will promptly make full
written disclosure to the Company, will hold in trust for the sole right and
benefit of the Company, and hereby assign to the Company, or its designee, all
my right, title, and interest in and to any and all inventions, original works
of authorship, developments, concepts, improvements or trade secrets, whether or
not patentable or registrable under copyright or similar laws, which I may
solely or jointly conceive
<PAGE>   15
or develop or reduce to practice, or cause to be conceived or developed or
reduced to practice, during the period of time I am in the employ of the Company
(collectively referred to as "Inventions"), except as provided in Section 2(f)
below. I further acknowledge that all original works of authorship which are
made by me (solely or jointly with others) within the scope of and during the
period of my employment with the Company and which are protectible by copyright
are "works made for hire," as that term is defined in the United States
Copyright Act.

     (c)  Inventions Assigned in the United States. I agree to assign to the
United States government all my right, title and interest in and to any and all
Inventions whenever such full title is required to be in the United States by a
contract between the Company and the United States or any of its agencies.

     (d)  Maintenance of Records. I agree to keep and maintain adequate and
current written records of all Inventions made by me (solely or jointly with
others) during the term of my employment with the Company. The records will be
in the form of notes, sketches, drawings, and any other format that may be
specified by the Company. The records will be available to and remain the sole
property of the Company at all times.

     (e)  Patent and Copyright Registrations. I agree to assist the Company, or
its designee, at the Company's expense, in every proper way to secure the
Company's rights in the Inventions and any copyrights, patents, mask work rights
or other intellectual property rights relating thereto in any and all countries,
including the disclosure to the Company of all pertinent information and data
with respect thereto, the execution of all applications, specifications, oaths,
assignments and all other instruments which the Company shall deem necessary in
order to apply for and obtain such rights and in order to assign and convey to
the Company, its successors, assigns and nominees the sole and exclusive rights,
title and interest in and to such inventions, and any copyrights, patents, mask
work rights or other intellectual property rights relating thereto. I further
agree that any obligation to execute or cause to be executed, when it is in my
power to do so, any such instrument or papers shall continue after the
termination of this Agreement. If the Company is unable because of my mental or
physical incapacity or for any other reason to secure my signature to apply for
or to pursue any application for any United States or foreign patents or
copyright registrations covering inventions or original works of authorship
assigned to the Company as above, then I hereby irrevocably designate and
appoint the Company and its duly authorized officers and agents as my agent and
attorney in fact, to act for and in my behalf and stead to execute and file any
such applications and to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent or copyright registrations thereon
with the same legal force and effect as if executed by me.

     (f) Exception to Assignments. I understand that the provisions of this
Agreement requiring assignment of Inventions to the Company do not apply to any
invention which qualifies fully under the provisions of California Labor Code
Section 2870 (attached hereto as Exhibit B). I will advise the Company promptly
in writing of any inventions that I believe meet the criteria in California
Labor Code Section 2870 and not otherwise disclosed on Exhibit A.

Dated effective as of January 25, 1999

                                                  /s/ CHARLES M. SKIBE
                                                  ------------------------
                                                  Charles M. Skibe

AGREED AND ACCEPTED:

COLO.COM

By: /s/ WAYNE OLSON
    --------------------
    Wayne Olson, Senior Vice President

                                      -2-<PAGE>   1

                                                                   EXHIBIT 10.8

                          LOAN AND SECURITY AGREEMENT

        THIS AGREEMENT (the "Agreement"), dated as of October 22, 1999 is
entered into by and between COLO.COM, a California corporation having a
principal place of business at 2000 Sierra Point, 6th Floor, Brisbane, CA 94005
(the "Borrower) and Comdisco, Inc., a Delaware corporation having a principal
place of business at 6111 North River Road, Rosemont, Illinois 60018 (the
"Lender"). In consideration of the mutual agreements contained herein, the
parties hereto agree as follows:

        WHEREAS, Borrower desires to borrow from the Lender hereunder the
aggregate amount of Seven Million and 00/100 Dollars ($7,000,000)("Committed
Principal Amount") in minimum installments of Five Hundred Thousand and 00/100
Dollars ($500,000) each in connection with the Construction Costs (as defined
herein) to be incurred by Borrower for co-location facilities located in
Chicago, San Francisco or Emeryville in amounts of the aggregate construction
costs of the facilities (individually, a "Co-location Facility", collectively,
"Co-location Facilities") (as the same may from time to time be amended,
modified, supplemented or revised, the "Loan"), which would be evidenced by
secured promissory notes(s) executed by borrower substantially in the form of
Exhibit A hereto (as the same may from time to time be amended, modified,
supplemented or restated the "Note(s)"). "Construction Costs" shall consist of
generators, switches, power suppliers, computers, servers, cages, software,
tenant improvements, security systems, installation costs, shipping and
management fees.

        WHEREAS, Lender is willing to lend amounts to Borrower in the aggregate
of the Loan subject to the terms and conditions set forth herein.

        NOW, THEREFORE, it is agreed:

        SECTION 1. DEFINITIONS.

Unless otherwise defined herein, the following capitalized terms shall have the
following meanings (such meanings being equally applicable to both the singular
and plural form of the terms defined);

        1.1 "ACCOUNT" means any "account," as such term is defined in SECTION
9106 of the UCC, now owned or hereafter acquired by Borrower or in which
Borrower now holds or hereafter acquires any interest and, in any event, shall
include, without limitation, all accounts receivable, book debts and other forms
of obligations (other than forms of obligations evidenced by Chattel Paper,
Documents or Instruments) now owned or hereafter received or acquired by or
belonging or owing to Borrower (including, without limitation, under any trade
name, style or division thereof) whether arising out of goods sold or services
rendered by Borrower or from any other transaction, whether or not the same
involves the sale of goods or services by Borrower (including, without
limitation, any such obligation which may be characterized as an account or
contract right under the UCC) and all of Borrower's rights in, to and under all
purchase orders or receipts now owned or hereafter acquired by it for goods or
services, and all of Borrower's rights to any goods represented by any of the
foregoing (including, without limitation, unpaid seller's rights of rescission,
replevin, reclamation and stoppage in transit and rights to returned, reclaimed
or repossessed goods), and all monies due or to become due to Borrower under all
purchase orders and contracts for the sale of goods or the performance of

                                      -1-
<PAGE>   2

services or both by Borrower (whether or not yet earned by performance on the
part of Borrower or in connection with any other transaction), now in existence
or hereafter occurring, including, without limitation, the right to receive the
proceeds of said purchase orders and contracts, and all collateral security and
guarantees of any kind given by any Person with respect to any of the foregoing.

        1.2 "ACCOUNT DEBTOR" means any "account debtor," as such term is defined
in Section 9105(1)(a) of the UCC.

        1.3 "ADVANCE" means each installment made by the Lender to Borrower
pursuant to the Loan to be evidenced by the Note(s) secured by the Collateral.

        1.4 "ADVANCE DATE" means the funding date of any Advance of the Loan.

        1.5. "ADVANCE REQUEST" means the request by Borrower for an Advance
under the Loan, each to be substantially in the form of EXHIBIT B attached
hereto, as submitted by Borrower to Lender from time to time.

        1.6 "CHATTEL PAPER" means any "chattel paper," as such term is defined
in SECTION 9105(1)(b) of the UCC, now owned or hereafter acquired by Borrower or
in which Borrower now holds or hereafter acquires any interest.

        1.7 "CLOSING DATE" means the date of this Agreement.

        1.8 "COLLATERAL" shall have the meaning assigned to such term in SECTION
3 of this Agreement.

        1.9 "CONTRACTS" means all contracts, undertakings, franchise agreements
or other agreements (other than rights evidenced by Chattel Paper, Documents or
Instruments) in or under which Borrower may now or hereafter have any right,
title or interest, including, without limitation, with respect to an Account,
any agreement relating to the terms of payment or the terms of performance
thereof.

        1.10 "COPYRIGHTS" means all of the following now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any
interest: (i) all copyrights, whether registered or unregistered, held pursuant
to, the laws of the United States, any State thereof or of any other country;
(ii) registrations, applications and recordings in the United States Copyright
Office or in any similar office or agency of the United States, any state
thereof or any other country; (iii) any continuations, renewals or extensions
thereof; and (iv) any registrations to be issued in any pending applications.

        1.11 "COPYRIGHT LICENSE" means any written agreement granting any right
to use any Copyright or Copyright registration now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest.

        1.12 "DOCUMENTS" means any "documents," as such term is defined in
SECTION 9105(1)(F) of the UCC, now owned or hereafter acquired by Borrower or in
which Borrower now holds or hereafter acquires any interest.

                                      -2-
<PAGE>   3

        1.13 "EQUIPMENT" means any "equipment," as such term is defined in
SECTION 9109(2) of the UCC, now or hereafter owned or acquired by Borrower or in
which Borrower now holds or hereafter acquires any interest and any and all
additions, substitutions and replacements of any of the foregoing, wherever
located, together with all attachments, components, parts, equipment and
accessories installed thereon or affixed thereto.

        1.14 "FACILITY FEE" means $7,500 due at the Closing Date which will be
deducted from the commitment fee of $20,000 received on August 20, 1999 and
thereafter the commitment fee will be applied to payments due under the Loan,

        1.15 "FIXTURES" means any "fixtures", as such term is defined in
SECTION 9313(1)(a) of the UCC, now or hereafter owned or acquired by Borrower or
in which Borrower now holds or hereafter acquires any interest and, now or
hereafter attached or affixed to or constituting a part of, or located in or
upon, real property wherever located, together with all right, title and
interest of Borrower in and to all extensions, improvements, betterments,
renewals, substitutes, and replacements of, and all additions and appurtenances
to any of the foregoing property, and all conversions of the security
constituted thereby, immediately upon any acquisition or release thereof or any
such conversion, as the case may be.

        1.16 "GENERAL INTANGIBLES" means any "general intangibles," as such term
is defined in SECTION 9106 of the UCC, now owned or hereafter acquired by
Borrower or in which Borrower now holds or hereafter acquires any interest and,
in any event, shall include, without limitation, all right, title and interest
which Borrower may now or hereafter have in or under any contract, all customer
lists, Copyrights, Trademarks, Patents, rights to Intellectual Property,
interests in partnerships, joint ventures and other business associations,
Licenses, permits, trade secrets, proprietary or confidential information,
inventions (whether or not patented or patentable), technical information,
procedures, designs, knowledge, know-how, software, data bases, data, skill,
expertise, recipes, experience, processes, models, drawings, materials and
records, goodwill (including, without limitation, the goodwill associated with
any Trademark, Trademark registration or Trademark licensed under any Trademark
License), claims in or under insurance policies, including unearned premiums,
uncertificated securities, cash and other forms of money or currency, deposit
accounts (including as defined in SECTION 9105(e) of the UCC), rights to sue
for past; present and future infringement of Copyrights, Trademarks and Patents,
rights to receive tax refunds and other payments and rights of indemnification.

        1.17 "INSTRUMENTS" means any "instrument" as such term is defined in
SECTION 9105(1)(I) of the UCC, now owned or hereafter acquired by Borrower or in
which Borrower now holds or hereafter acquires any interest.

        1.18 "INTELLECTUAL PROPERTY" means all Copyrights, Trademarks, Patents,
trade secrets, source codes, customer lists, proprietary or confidential
information, inventions (whether or not patented or patentable), technical
information, procedures, designs, knowledge, know-how, software, data bases,
skill, expertise, experience, processes, models, drawings, materials and
records.

        1.19 "INVENTORY" means any "inventory," as such term is defined in
SECTION 9109(4) of the UCC, wherever located, now or hereafter owned or acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest,
and, in any event, shall include, without limitation, all inventory, goods and
other personal property which are held by or on behalf of

                                      -3-
<PAGE>   4

Borrower for sale or lease or are furnished or are to be furnished under a
contract of service or which constitute raw materials, work in process or
materials used or consumed or to be used or consumed in Borrower's business, or
the processing, packaging, promotion, delivery or shipping of the same, and all
furnished goods whether or not such inventory is listed on any schedules,
assignments or reports furnished to Lender from time to time and whether or not
the same is in transit or in the constructive, actual or exclusive occupancy or
possession of Borrower or is held by Borrower or by others for Borrower's
account, including, without limitation, all goods covered by purchase orders and
contracts with suppliers and all goods billed and held by suppliers and all
inventory which may be located on premises of Borrower or of any carriers,
forwarding agents, truckers, warehousemen, vendors, selling agents or other
persons.

        1.20 "LICENSE" means any Copyright License, Patent License, Trademark
License or other license of rights or interests now held or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest
and any renewals or extensions thereof.

        1.21 "LIEN" means any mortgage, deed of trust, pledge, hypothecation,
assignment for security, security interest, encumbrance, levy, lien or charge of
any kind, whether voluntarily incurred or arising by operation of law or
otherwise, against any property, any conditional sale or other title retention
agreement, any lease in the nature of a security interest, and the fling of any
financing statement (other than a precautionary financing statement with respect
to a lease that is not in the nature of a security interest) under the UCC or
comparable law of any jurisdiction.

        1.22 "MATERIAL ADVERSE EFFECT" means a material adverse effect upon:
(i) the business, operations, properties, assets or conditions (financial or
otherwise) of Borrower; or (ii) the ability of Borrower to perform, or of Lender
to enforce, the Secured Obligations.

        1.23 "MATURITY DATE" means the date forty-two (42) months from the
Advance Date of each installment of the Loan.

        1.24 "NEXT ROUND" means a private equity financing, Merger (as defined
in Section 6.7 hereof), or an initial public offering of Borrower's securities.

        1.25 "PATENT LICENSE" means any written agreement granting any right
with respect to any invention on which a Patent is in existence now owned or
hereafter acquired by Borrower or in which Borrower now holds or hereafter
acquires any interest.

        1.26 "PATENTS" means all of the following now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any
interest: (a) letters patent of, or rights corresponding thereto in, the United
States or any other county, all registrations and recordings thereof, and all
applications for letters patent of, or rights corresponding thereto in the
United States or any other country, including, without limitation,
registrations, recordings and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country; (b) all reissues, continuations,
continuations-in-part or extensions thereof, (c) all petty patents, divisionals,
and patents of addition; and (d) all patents to issue in any such applications.

                                      -4-
<PAGE>   5

        1.27 "PROCEEDS" means "proceeds," as such term is defined in SECTION
9306(1) of the UCC and, in any event, shall include, without limitation, (a) any
and all Accounts, Chattel Paper, Instruments, cash or other forms of money or
currency or other proceeds payable to Borrower from time to time in respect of
the Collateral, (b) any and all proceeds of any insurance, indemnity, warranty
or guaranty payable to Borrower from time to time with respect to any of the
Collateral, (c) any and all payments (in any form whatsoever) made or due and
payable to Borrower from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any Person acting under color of
governmental authority), (d) any claim of Borrower against third parties (i) for
past, present or future infringement of any Copyright, Patent or Patent License
or (ii) for past, present or future infringement or dilution of any Trademark or
Trademark License or for injury to the goodwill associated with any Trademark,
Trademark registration or Trademark licensed under any Trademark License and (e)
any and all other amounts from time to time paid or payable under or in
connection with any of the Collateral.

        1.28 "RECEIVABLES" shall mean and include all of the Borrowers accounts,
instruments, documents, chattel paper and general intangibles whether secured or
unsecured, whether now existing or hereafter created or arising, and whether or
not specifically sold or assigned to Lender hereunder which relate to each
Co-Location Facility.

        1.29 "SECURED OBLIGATIONS" shall mean and include all principal,
interest, fees, costs, or other liabilities or obligations for monetary amounts
owed by Borrower to Lender, whether due or to become due, matured or unmatured,
liquidated or unliquidated, contingent or non-contingent, and all covenants and
duties regarding such amounts, of any kind of nature, present or future, arising
under this Agreement, the Note(s), or any of the other Loan Documents, whether
or not evidenced by any Note(s), Agreement or other instrument, as the same may
from time to time be amended, modified, supplemented or restated.

        1.30 "TRADEMARK LICENSE" means any written agreement granting any right
to use any Trademark or Trademark registration now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest.

        1.31 "TRADEMARKS" means any of the following now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any
interest: (a) any and all trademarks, trade names, corporate names, business
names, trade styles, service marks, logos, other source or business identifiers,
prints and labels on which any of the foregoing have appeared or appear, designs
and general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and any applications in
connection therewith, including, without limitation, registrations, recordings
and applications in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof and (b) any reissues, extensions or
renewals thereof.

        1.32 "UCC" shall mean the Uniform Commercial Code as the same may, from
time to time, be in effect in the State of Illinois. Unless otherwise defined
herein, terms that are defined in the UCC and used herein shall have the
meanings given to them in the UCC.

                                      -5-
<PAGE>   6

        1.33 "WARRANT AGREEMENT" shall mean that agreement entered into in
connection with the Loan, substantially in the form attached hereto as Exhibit C
pursuant to which Borrower grants Lender the right to purchase that number of
shares of preferred stock of Borrower equivalent to eight percent (8%) of the
Committed Principal Amount divided by the Exercise Price as more particularly
set forth therein. The Exercise Price shall be equal to the Time Weighted
Average of .50 per share (the Series B Preferred Stock price) and the price per
share of the Next Round. Notwithstanding the foregoing, if the Next Round does
not occur on or prior to December 31, 1999, the Exercise Price per share shall
be .50 per share (the Series B Preferred Stock price) and the Warrant Agreement
shall be for shares of Series B Preferred Stock. "Time Weighted Average" will be
calculated from the Closing Date and the date of the Next Round.

SECTION 2. THE LOAN

        2.1 Subject to the terms and conditions set forth herein, Lender shall
lend to Borrower the aggregate original principal amount of each Advance
together with interest at the rate of eight and one quarter percent (8.25%),
such interest accruing as of the date of the Advance, and payable in forty-two
(42) equal monthly installments of principal and interest commencing on the
first day of the month immediately following the Advance Date and an additional
installment equal to fifteen percent (15%) of the Advance ("Balloon Payment"),
as set forth in the Note(s).

        2.2 Upon the occurrence of and during an Event of Default (as defined
herein), interest shall thereafter be calculated at a rate of five percent (5%)
in excess of the rate that would otherwise be applicable ("Default Rate"). All
such interest shall be due and payable in arrears, on the first day of the
following month.

        2.3 Notwithstanding any provision in this Agreement, the Note(s), or any
other "Loan Document" (as defined herein), it is not the parties' intent to
contract for, charge or receive interest at a rate that is greater than the
maximum rate permissible by law which a court of competent jurisdiction shall
deem applicable hereto (which under the haws of the State of Illinois shall be
deemed to be the laws relating to permissible rates of interest on commercial
loans) (the "Maximum Rate"). If the Borrower actually pays Lender an amount of
interest, chargeable on the total aggregate principal Secured Obligations of
Borrower under this Agreement and the Note(s) (as said rate is calculated over a
period of time that is the longer of (i) the time from the date of this
Agreement through the maturity time as set forth on the Note(s), or (ii) the
entire period of time that any principal is outstanding on the Note(s)), which
amount of interest exceeds interest calculated at the Maximum Rate on said
principal chargeable over said period of time, then such excess interest
actually paid by Borrower shall be applied first, to the, payment of principal
outstanding on the Note(s); second, after all principal is repaid, to the
payment of Lenders out of pocket costs, expenses, and professional fees which
are owed by Borrower to Lender under this Agreement or the Loan Documents; and
third, after all principal, costs, expenses, and professional fees owed by
Borrower to Lender are repaid, the excess (if any) shall be refunded to
Borrower.

                                      -6-
<PAGE>   7

        2.4 In the event any interest is not paid when due hereunder, delinquent
interest shall be added to principal and shall bear interest on interest,
compounded at the rate set forth in SECTION 2.1.

        2.5 Upon and during the continuation of an Event of Default hereunder
(as defined herein), all Secured Obligations, including principal, interest,
compounded interest and reasonable professional fees, shall bear interest at a
rate per annum equal to the Default Rate.

        2.6 Borrower shall have the option to prepay the Loan, in whole or in
part, after 12 months from the Closing Date by paying (1) the principal amount
thereon together with all accrued and unpaid interest with respect to such
principal amount, as of the date of such prepayment, (2) the present value of
the Balloon Payment, and (3) a prepayment premium equal to one percent (1%) of
the unpaid principal. In the event Borrower prepays the Note(s) within 12 months
from the Closing Date hereof, Borrower shall pay the principal amount together
with all accrued and unpaid interest and a prepayment premium equal to one
percent (1%) of the then outstanding principal amount.

SECTION 3. SECURITY INTEREST

        As security for the prompt, complete and indefeasible payment when due
(whether at stated payment dates or otherwise) of all the Secured Obligations
and in order to induce Lender to make the Loan upon the terms and subject to the
conditions of the Note(s), Borrower hereby assigns, conveys, mortgages, pledges,
hypothecates and transfers to Lender for security purposes only, and hereby
grants to Lender a security interest in, all of Borrower's right, title and
interest in, to and under each of the following (all of which being hereinafter
collectively called the "Collateral") as to each, and only as to each,
Co-location Facility for which Lender provides Advances hereunder:

        (a)     All Receivables;

        (b)     All Equipment;

        (c)     All Fixtures;

        (d)     All General Intangibles (excluding Intellectual Property,
                customer lists, inventions (whether or not patentable),
                procedures, designs, knowledge, know-how, skill, expertise,
                recipes, experience, processes, models, drawings);

        (e)     All Inventory;

        (f)     All other goods and personal property of Borrower whether
                tangible or intangible and whether now or hereafter owned or
                existing, leased, consigned by or to, or acquired by, Borrower;
                and

        (g)     To the extent not otherwise included, all Proceeds of each of
                the foregoing and all accessions to, substitutions and
                replacements for, and rents, profits and products of each of the
                foregoing.

                                      -7-
<PAGE>   8

The foregoing Collateral excludes Intellectual Property currently held or
hereafter obtained, including without limitation, the Borrower's right, title
and interest in or licenses to all patents, trademarks, service marks or
processes, provided however, in the event Borrower transfers, sell, assigns,
hypothecates or otherwise encumbers it Intellectual Property, without Lenders
prior written consent, Lender's security interest shall be deemed to include
Intellectual Property.

SECTION 4. REPRESENTATIONS AND WARRANTIES OF BORROWER

The Borrower represents, warrants and agrees that:

        4.1 it will have good title in and to the Collateral, free of all liens,
security interests, encumbrances and claims whatsoever, except for the interest
of the Lender therein prior to the date of the respective Advances;

        4.2 it has the full power and authority to, and does hereby grant and
convey to the Lender, a valid first priority perfected security interest in the
Collateral as security for the Secured Obligations, free of all liens, security
interests, encumbrances and claims, and shall execute such Uniform Commercial
Code financing statements in connection herewith as the Lender may reasonably
request. No other lien, security interest, adverse claim or encumbrance has been
created by Borrower or is known by Borrower to exist with respect to any
Collateral;

        4.3 it is a corporation duly organized, legally existing and in good
standing under the laws of the State of California, and is duly qualified as a
foreign corporation in all jurisdictions where the failure to so qualify would
have a Material Adverse Effect on the Collateral or the business of the Borrower
taken as a whole;

        4.4 the execution, delivery and performance of the Note(s), this
Agreement, the Warrant Agreement, and all financing statements, certificates and
other documents required to be delivered or executed in connection herewith
(collectively, the "Loan Documents") have been duly authorized by all necessary
corporate action of Borrower, the individual or individuals executing the Loan
Documents were duly authorized to do so, and the Loan Documents constitute
legal, valid and binding obligations of the Borrower, enforceable in accordance
with their respective terms, subject to applicable bankruptcy, insolvency,
reorganization or other similar laws generally affecting the enforcement of the
rights of creditors;

        4.5 the Loan Documents do not and will not violate any provisions of its
Articles of Incorporation, bylaws or any, contract, agreement, law, regulation,
order, injunction, judgment, decree or writ to which the Borrower is subject, or
result in the creation or imposition of any lien, security interest or other
encumbrance upon the Collateral, other than those created by this Agreement;

        4.6 the execution, delivery and performance of the Loan Documents do not
require the consent or approval of any other person or entity including, without
limitation, any regulatory authority or governmental body of the United States
or any state thereof or any political subdivision of the United States or any
state thereof.

                                      -8-
<PAGE>   9

        4.7 as of the date hereof no fact or condition exists that would (or
could, with the passage of time, the giving of notice, or both) constitute an
Event of Default under this Agreement or any of the Loan Documents and no event
which has had or could reasonably be expected to have a Material Adverse Effect
has occurred and is continuing.

SECTION 5. INSURANCE AND RISK OF LOSS

        5.1 So long as there are any Secured Obligations outstanding, Borrower
shall cause to be carried and maintained commercial general liability insurance
against risks customarily insured against in Borrower's line of business. Such
risks shall include, without limitation, the risks of death, bodily injury and
property damage. So long as there are any Secured Obligations outstanding,
Borrower shall also cause to be carried and maintained insurance upon the
Collateral and Borrower's business, covering casualty, hazard and such other
property risks in amounts equal to the full replacement cost of the Collateral.
Borrower shall deliver to Lender lender's loss payable endorsements (Form BFU
438 or equivalent) naming Lender as loss payee and additional insured. Borrower
shall use commercially reasonable efforts to cause all policies evidencing such
insurance to provide for at least thirty (30) days prior written notice by the
underwriter or insurance company to Lender in the event of cancellation or
expiration. Such policies shall be issued by such insurers and in such amounts
as are reasonably acceptable to Lender.

        5.2 Borrower shall and dots hereby indemnify and hold Lender, its agents
and shareholders harmless from and against any and all claims, costs, expenses,
damages and liabilities (including, without limitation, such claims, costs,
expenses, damages and liabilities based on liability in tort, including without
limitation, strict liability in tort), including reasonable attorneys' fees,
arising out of the disposition or utilization of the Collateral, other than
claims arising at or caused by Lender's gross negligence or willful misconduct.

SECTION 6. COVENANTS OF BORROWER

        Borrower covenants and agrees as follows at all times while any of the
Secured Obligations remain outstanding:

        6.1 Borrower shall furnish to Lender the financial statements listed
hereinafter, each prepared in accordance with generally accepted accounting
principles consistently applied (the "Financial Statements"):

                (a) as soon as practicable (and in any event within thirty (30)
        days) after the end of each month, unaudited interim financial
        statements as of the end of such month (prepared on a consolidated and
        consolidating basis, if applicable), including balance sheet and related
        statements of income and cash flows accompanied by a report detailing
        any material contingencies (including the commencement of any material
        litigation by or against Borrower) or any other occurrence that could
        reasonably be expected to have a Material Adverse Effect, all certified
        by Borrower's Chief Executive Officer or Chief Financial Officer to be
        true and correct;

                (b) as soon as practicable (and in any event within ninety (90)
        days) after the end of each fiscal year, unqualified audited financial
        statements as of the end of such year (prepared on a consolidated and
        consolidating basis, if applicable), including

                                      -9-
<PAGE>   10

        balance sheet and related statements of income and cash flows, and
        setting forth in comparative form the corresponding figures for the
        preceding fiscal year, certified by a firm of independent certified
        public accountants selected by Borrower and reasonably acceptable to
        Lender, accompanied by any management report from such accountants;

                (c) promptly after the sending or filing thereof, as the case
        may be, copies of any proxy statements, financial statements or reports
        which Borrower has made available to its shareholders and copies of any
        regular, periodic and special reports or registration statements which
        Borrower files with the Securities and Exchange Commission or any
        governmental authority which may be substituted therefor, or any
        national securities exchange; and

                (d) promptly, any additional information, financial or otherwise
        (including, but not limited, to tax returns and names of principal
        creditors) as Lender reasonably believes necessary to evaluate
        Borrower's continuing ability to meet its financial obligations.

        6.2 Borrower shall permit any authorized representative of Lender and
its attorneys and accountants on reasonable notice to inspect, examine and make
copies and abstracts of the books of account and records of Borrower at
reasonable times during normal business hours. In addition, such representative
of Lender and its attorneys and accountants shall have the right to meet with
management and officers of the Company to discuss such books of account and
records.

        6.3 Borrower will from time to time execute, deliver and file, alone or
with Lender, any financing statements, security agreements or other documents;
procure any instruments or documents as may be requested by Lender; and take all
further action that may be necessary or desirable, or that Lender may request,
to confirm, perfect, preserve and protect the security interests intended to be
granted hereby, and in addition, and for such purposes only, Borrower hereby
authorizes Lender to execute and deliver on behalf of Borrower and to file such
financing statements, security agreement and other documents without the
signature of Borrower either in Lender's name or in the name of Borrower as
agent and attorney-in-fact for Borrower. The parties agree that a carbon,
photographic or other reproduction of this Agreement shall be sufficient as a
financing statement and may be filed in any appropriate office in lieu thereof.

        6.4 Borrower shall protect and defend Borrower's title as well as the
interest of the Lender against all persons claiming any interest adverse to
Borrower or Lender and shall at all times keep the Collateral free and clear
from any legal process, liens or encumbrances whatsoever (except any placed
thereon by Lender or liens permitted by Lender pursuant to Section 9 hereof) and
shall give Lender immediate written notice thereof.

        6.5 Without Lender's prior written consent, Borrower shall not (a) grant
any material extension of the time of payment of any of the Receivables, (b) to
any material extent, compromise, compound or settle the same for less than the
full amount thereof, (c) release, wholly or partly, any person liable for the
payment thereof, or allow any credit or discount whatsoever thereon other than
trade discounts granted in the ordinary course of business of Borrower.

                                      -10-
<PAGE>   11

        6.6 Borrower shall maintain and protect its properties, assets and
facilities, including without limitation, its Equipment and Fixtures, in good
order and working repair and condition (taking into consideration ordinary wear
and tear) and from time to time make or cause to be made all necessary and
proper repairs, renewals and replacements thereto and shall competently manage
and care for its property in accordance with prudent industry practices.

        6.7 Borrower shall not merge with and into any other entity; or sell or
convey all or substantially all of its assets or stock to any other person or
entity without notifying Lender a minimum of thirty (30) days prior to the
closing date and requesting Lenders consent, which consent will not be
unreasonably withheld, to the assignment of all of Borrower's Secured
Obligations hereunder to the successor entity in form and substance satisfactory
to Lender. In the event Lender does not consent to such assignment the parties
agree Borrower shall prepay the Loan in accordance with Section 2.6 hereof.

        For purposes of this Agreement, a "Merger" shall mean any consolidation
or merger of the Borrower with or into any other corporation or entity, any sale
or conveyance of an or substantially all of the assets or stock of the Borrower
by or to any other person or entity in which Borrower is not the surviving
entity,

        6.8 Borrower shall not, without the prior written consent of Lender,
such consent not to be unreasonably withheld, declare or pay any cash dividend
or make a distribution on any class of stock, other than pursuant to employee
repurchase plans upon an employee's death or termination of employment or
transfer, sell, lease, lend or in any other manner convey any equitable,
beneficial or legal interest in any material portion of the assets of Borrower
(except inventory sold in the normal course of business).

        6.9 Upon the request of Lender, Borrower shall, during business hours,
make the Inventory and Equipment available to Lender for inspection at the place
where it is normally located and shall make Borrower's log and maintenance
records pertaining to the Inventory and Equipment available to Lender for
inspection. Borrower shall take all action necessary to maintain such logs and
maintenance records in a correct and complete fashion.

        6.10 Borrower covenants and agrees to pay when due, all taxes, fees or
other charges of any nature whatsoever (together with any related interest or
penalties) now or hereafter imposed or assessed against Borrower, Lender or the
Collateral or upon Borrower's ownership, possession, use, operation or
disposition thereof or upon Borrower's rents, receipts or earnings arising
therefrom. Borrower shall file on or before the due date therefor all personal
property tax returns in respect of the Collateral. Notwithstanding the
foregoing, Borrower may contest, in good faith and by appropriate proceedings,
taxes for which Borrower maintains adequate reserves therefor.

        6.11 Borrower shall not relocate any item of the Collateral (other than
sale of inventory in the ordinary course of business) except: (i) with the prior
written consent of the Lender not to be unreasonably withheld; and (ii) if such
relocation shall be within the continental United States. If permitted to
relocate Collateral pursuant to the foregoing sentence, unless otherwise agreed
in writing by Lender, Borrower shall first (a) cause to be filed and/or
delivered to the Lender all Uniform Commercial Code financing statements,
certificates or other documents or instruments necessary to continue in effect
the perfected security interest of the

                                      -11-
<PAGE>   12

Lender in the Collateral, and (b) have given the Lender no less than thirty (30)
days prior written notice of such relocation.

        6.12 Lender shall have the right to purchase shares of Borrower
securities of up to One Million Five Hundred Thousand and 00/100 Dollars
($1,500,000) upon the close of Borrower's Series C Preferred Stock financing at
a purchase price to be established by the lead investor.

        6.13 Borrower shall not sell, transfer, assign, hypothecate or otherwise
encumber its Intellectual Property without Lenders prior written consent.

SECTION 7. CONDITIONS PRECEDENT TO LOAN

        The obligation of Lender to fund the Loan on each Advance Date shall be
subject to Lender's discretion and satisfactory completion of its due diligence
and approval process, and satisfaction by Borrower or waiver by Lender, in
Lender's sole discretion, of the following conditions:

7.1 ADVANCE REQUEST. Borrower, on or prior to each Advance Date; which shall
occur on or prior to August 31, 2000, shall have delivered to Lender the
following:

                (a) a minimum of five (5) business days prior to the Advance
        Date, written notice in the form of an Advance Request, or as otherwise
        specified by Lender from time to time, specifying amount of such Advance
        and wire transfer instructions;

                (b) executed original of the Note(s);

                (c) any documents reasonably required by Lender to effectuate
        the liens of Lender with respect to all Collateral;

                (d) evidence reasonably satisfactory to Lender that Borrower
        will use the proceeds of this Loan to first finance the Chicago, San
        Francisco or Emeryville;

                (e) such other documents as Lender shall reasonably request.

        7.2 DOCUMENT DELIVERY. Borrower, on or prior to the Closing Date, shall
have delivered to Lender the following:

                (a) executed originals of the Agreement and the Warrant
        Agreement;

                (b) certified copy of resolutions of Borrower's board of
        directors evidencing approval of the borrowing and other transactions
        evidenced by the Loan Documents;

                (c) certified copies of the Articles of Incorporation and the
        Bylaws of Borrower, as amended through the Closing Date;

                (d) certificate of good standing for Borrower from its state of
        incorporation and similar certificates from all other jurisdictions in
        which it does business and where the failure to be qualified would have
        a Material Adverse Effect;

                                      -12-
<PAGE>   13

                (e) an opinion of counsel regarding the Borrower's total
        capitalization and the authority and enforceability of the Loan
        Documents and Warrant Agreement; and

                (f) payment of the Facility Fee.

        7.3 PERFECTION OF SECURITY INTERESTS. Borrower shall have taken or
caused to be taken such actions requested by Lender to grant Lender a first
priority perfected security interest in the Collateral. Such actions shall
include, without limitation, the delivery to Lender of all appropriate financing
statements, executed by Borrower, as to the Collateral granted by Borrower for
all jurisdictions as may be necessary or desirable to perfect the security
interest of Lender in such Collateral

        7.4 ABSENCE OF EVENTS OF DEFAULTS. As of the Closing Date or the Advance
Date, no fact or condition exists that would (or would, with the passage of
time, the giving of notice, or both) constitute an Event of Default under this
Agreement or any of the Loan Documents.

        7.5 Material Adverse Effect. As of the Closing Date or the Advance Date,
no event which has had or could reasonably be expected to have a Material
Adverse Effect has occurred and is continuing.

SECTIONS 8. ASSIGNMENT BY LENDER

        Borrower acknowledges and understands that Lender, with Borrowers prior
written consent on at least 30 days written notice, may sell and assign all or a
part of its interest hereunder and under the Note(s) and Loan Documents,
excluding the purchase right set forth in 6.12 and the Warrants to any person or
entity (an "Assignee"). After such assignment the term Lender shall mean such
Assignee, and such Assignee shall be vested with all rights, powers and remedies
of Lender hereunder with respect to the interest so assigned; but with respect
to any such interest not so transferred, the Lender shall retain all rights,
powers and remedies hereby given. No such assignment by Lender shall relieve
Borrower of any of its obligations hereunder. Borrower shall acknowledge such
assignment or assignments as shall be designated BY written notice given by
Lender to Borrower. The Lender agrees that in the event of any transfer by a of
the Note(s), it will endorse thereon a notation as to the portion of the
principal of the Note(s) which shall have been paid at the time of such transfer
and as to the date to which interest shall have been last paid thereon.

SECTION 9. SUBORDINATION BY LENDER AND INTERCREDITOR AGREEMENT.

                                      -13-
<PAGE>   14
        Lender shall subordinate its interest in Receivables to another debt
facility of Borrower pursuant to the terms of a Subordination Agreement
substantially the form attached hereto as Exhibit C, subject to the terms set
forth in this Section 9. It shall be a condition precedent to Lender's agreement
to subordinate its interest pursuant to the preceding sentence that Borrower
shall have achieved an average of thirty percent (30%) of the cumulative
facilities capacity for all Co-location Facilities for which Lender has provided
Advances under this Agreement. Notwithstanding the foregoing, the occupancy rate
of thirty percent (30%) is based upon an assumption of Borrower having a
positive cash flow (pre-depreciation)at such percentage. In the event such
assumption is incorrect, Lender may, in its sole discretion, to adjust the
percentage in minimum five percent (5%) increments until such positive cashflow
(pre-depreciation)is achieved.

        Lender acknowledges that Borrower will acquire additional credit
facilities (or high yield debt) from other Lenders to finance facilities not
encumbered by this Loan. To the extent that such other Lenders require an
inter-creditor agreement to exist between the various lending parties, Lender
agrees to enter into such agreements so long as the security interest granted
herein to Lender in Borrowers certain Co-Location Facilities is not compromised
by such agreements.

SECTION 10. DEFAULT

        The occurrence of any one or more of the following events (herein called
"Events of Default") shall constitute a default hereunder and under the Note(s):

        10.1 The Borrower defaults in the payment of any principal or interest
payable under the Note(s) and such default continues for more than five (5) days
after the due date thereof;

        10.2 The Borrower defaults in the payment or performance of any other
covenant or obligation of the Borrower hereunder or under the Note(s) or any
other loan Documents for more than ten (10) days after the Lender has given
notice of such default to the Borrower;

        10.3 Any representation or warranty made herein by the Borrower shall
prove to have been false or misleading in any material respect;

        10.4 The making of an assignment by Borrower for the benefit of its
creditors or the admission by Borrower in writing of its inability to pay its
debts as they become due, or the insolvency of Borrower, or the filing by
Borrower of a voluntary petition in bankruptcy, or the adjudication of Borrower
as a bankrupt, or the filing by Borrower of any petition or answer seeking for
itself any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any present or future statute, law or
regulation, or the filing of any answer by Borrower admitting, or the failure by
Borrower to deny, the material allegations of a petition filed against it for
any such relief, or the seeking or consenting by Borrower to, or acquiescence by
Borrower in, the appointment of any trustee, receiver or liquidator of Borrower
or of all or any substantial part of the properties of Borrower, or the
inability of Borrower to pay its debts when due, or the commission by Borrower
of any act of bankruptcy as defined in the Federal Bankruptcy Act, as amended;

        10.5 The failure by Borrower, within sixty (60) days after the
commencement of any proceeding against Borrower seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any present or future statute, law or

                                      -14-
<PAGE>   15
regulation, to obtain the dismissal of such proceeding or, within sixty (60)
days after the appointment, without the written consent or acquiescence of
Lender, of any trustee, receiver or liquidator of Borrower or of all or any
substantial part of the properties of Borrower, to vacate such appointment;

               10.6 The default by Borrower under any other notes or other
agreement for borrowed money, lease or other agreement between Borrower and
Lender; or

               10.7 The occurrence of any default under any lease or other
agreement or obligation of Borrower involving an amount in excess of $100,000.00
or having a Material Adverse Effect; or the entry of any judgment against
Borrower involving an award in excess of $100,000.00 that would have a Material
Adverse Effect, that has not been bonded or stayed on appeal within thirty (30)
days.

SECTION 11. REMEDIES

               Upon the occurrence hereof of any one or more Events of Default,
Lender, at its option, may declare the Note(s) to be accelerated and immediately
due and payable, (provided, that upon the occurrence of an Event of Default of
the type described in 10.4 or 10.5, the Note(s) and all other Secured
Obligations shall automatically be accelerated and made due and payable without
any further act) whereupon the unpaid principal of and accrued interest on such
Note shall become immediately due and payable, and shall thereafter bear
interest at the Default Rate and calculated in accordance with Section 2.2.
Lender may exercise all rights and remedies with respect to the Collateral
granted pursuant hereto for such Note(s), or otherwise available to it under
applicable law, including the right to release, hold or otherwise dispose of all
or any part of the Collateral and the right to utilize, process and commingle
the Collateral.

               Upon the happening and during the continuance of any Event of
Default, Lender may then, or at any time thereafter and from time to time,
apply, collect, sell in one or more sales, lease or otherwise dispose of, any or
all of the Collateral, in its then condition or following any commercially
reasonably preparation or processing, in such order as lender may elect, and any
such sale may be made either at public or private sale at its place of business
or elsewhere. Borrower agrees that any such public or private sale may occur
upon five (5) calendar day's notice to Borrower. Lender may require Borrower to
assemble the Collateral and make it available to Lender at a place designated by
Lender which is reasonably convenient to Lender and Borrower. The proceeds of
any sale, disposition or other realization upon all or any part of the
collateral shall be distributed by Lender in the following order of priorities:

               First, to Lender in an amount sufficient to pay in full Lender's
               reasonable costs and professionals' and advisors' fees and
               expenses;

               Second, to Lender in an amount equal to the then unpaid amount of
               the Secured Obligations in such order and priority as Lender may
               choose in its sole discretion; and

               Finally, upon payment in full of all of the Secured Obligations,
               to Borrower or its representatives or as a court of competent
               jurisdiction may direct.

The Lender shall return to the Borrower any surplus Collateral remaining after
payment of all Secured Obligations.

                                      -15-

<PAGE>   16
SECTION 12. MISCELLANEOUS

        12.1 Borrower shall remain liable to Lender for any unpaid Secured
Obligations, advances, costs, charges and expenses, together with interest
thereon and shall pay the same immediately to Lender at Lender's offices.

        12.2 The powers conferred upon Lender by this Agreement are solely to
protect its interest in the Collateral and shall not impose any duty upon Lender
to exercise any such powers.

        12.3 This is a continuing Agreement and the grant of a security interest
hereunder shall remain in full force and effect and all the rights, powers and
remedies of Lender hereunder shall continue to exist until the Secured
Obligations are paid in full as the same become due and payable. When Borrower
has paid in full all Secured Obligations, Lender will, promptly upon request of
Borrower, execute a written termination statement, reassigning to Borrower,
without recourse, the Collateral and all rights conveyed hereby and return
possession (if Lender has possession) of the Collateral to Borrower. The rights,
powers and remedies of Lender hereunder shall be in addition to all rights,
powers and remedies given by statute or rule of law and are cumulative. The
exercise of any one or more of the rights, powers and remedies provided herein
shall not be construed as a waiver of any other rights, powers and remedies of
Lender. Furthermore, regardless of whether or not the UCC is in effect in the
jurisdiction where such rights, powers and remedies are asserted, Lender shall
have the rights, powers and remedies of a secured party under the UCC.

        12.4 Upon payment in full of all Secured Obligations, the Lender shall
cancel the Note(s), this Agreement and all UCC financing statements, if any, and
shall promptly deliver all such canceled documents to the Borrower.

        12.5 GOVERNING LAW. This Agreement, the Note(s) and the other Loan
Documents have been negotiated and delivered to Lender in the State of Illinois
and shall not become effective until accepted by Lender in the State of
Illinois. Payment to Lender by Borrower of the Secured Obligations is due in the
State of Illinois. This Agreement shall be governed by, and construed and
enforced in accordance with the laws of the State of Illinois excluding conflict
of laws principles that would cause the application of laws of any other
jurisdiction.

        12.6 CONSENT TO JURISDICTION AND VENUE. All judicial proceedings arising
in or under or related to this Agreement, the Note or any of the other Loan
Documents may be brought in any state or federal court of competent jurisdiction
located in the State of Illinois. By execution and delivery of this Agreement,
each party hereto generally and unconditionally; (a) consents to personal
jurisdiction in Cook County, State of Illinois; (b) waives any objection as to
jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be
bound by any judgment rendered thereby in connection with this Agreement, the
Note(s) and the other Loan Documents. Service of process on any party hereto in
any action arising out of or relating to this Agreement shall be effective if
given in accordance with the requirements for notice set forth in SECTION 12.8
below and shall be deemed effective and received as set forth in SECTION 12.8
below. Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of either party to bring
proceedings in the courts of any other jurisdiction.

                                      -16-

<PAGE>   17
        12.7 Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement hall be prohibited by or invalid under
such law, such provision shall be ineffective only to the extent and duration of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

        12.8 Except as otherwise provided herein, all notices and service of
process required, contemplated, or permitted to have been validly served, or
hereunder shall be in writing and shall be deemed given or delivered upon the
earlier of: (i) the first business day after transmission by facsimile or hand
delivery or deposit with an overnight express service or overnight mail delivery
service; or (ii) or three (3) calendar days after mailed, postage prepaid, in
each case, and shall be addressed to the designated recipient, as follows:

        (a)     IF TO LENDER:

                                 COMDISCO, INC.
                                Legal Department
                           Attention: General Counsel
                              6111 North River Road
                            Rosemont, Illinois 60018
                             Facsimile: 847.518.5088
                           Telephone: 847.518.698.3000

                WITH A COPY TO:

                                 COMDISCO, INC.
                          Attention: Comdisco Ventures
                              6111 North River Road
                            Rosemont, Illinois 60018
                             Facsimile: 847.518.5465
                           Telephone: 847.518.698.3000

                                      -17-

<PAGE>   18
        (b)     IF TO BORROWER:

                                    COLO.COM
                      2000 Sierra Point Parkway, 6th Floor
                               Brisbane, CA 95005
                       Attention: Chief Financial Officer
                             Facsimile: 650-244-7727
                             Telephone: 650-244-7700

                WITH A COPY TO:

                                    COLO.COM
                       2000 Sierra Point Parkway, 6th Floor
                               Brisbane, CA 95005
                           Attention: General Counsel
                             Facsimile:650-244-7277
                             Telephone:650-244-7700

or to such other address as each party may designate for itself by like notice.

        12.9 Lender and Borrower acknowledge that there are no agreements or
understandings, written or oral, between Lender and Borrower with respect to the
Loan, other than as set forth herein, in the Note(s) and the other Loan
Documents and that this Agreement, the Note(s) and the other Loan Documents
contain the entire agreement between Lender and Borrower with respect thereto.
None of the terms of this Agreement, the Note(s) and the other Loan Documents
may be amended except by an instrument executed by each of the parties hereto.

        12.10 No omission, or delay, by Lender at any time to enforce any right
or remedy reserved to it, or to require performance of any of the terms,
covenants or provisions hereof by Borrower at any time designated, shall be a
waiver of any such right or remedy to which Lender is entitled, nor shall it in
any way affect the right of Lender to enforce such provisions thereafter.

        12.11 All agreements, representations and warranties contained in this
Agreement or the Note, or in any Loan Documents delivered pursuant hereto or in
connection herewith shall be for the benefit of Lender and any Assignee and
shall survive the execution and delivery of this Agreement or the Note and the
expiration or other termination of this Agreement or the Note.

        12.12 This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

                                      -18-

<PAGE>   19
IN WITNESS WHEREOF, the Borrower and the Lender have duly executed and delivered
this Agreement as of the day and year first above written.

                            BORROWER: COLO.COM

                                    By: /s/ GARY J. SANDERS
                                       -----------------------------------------
                                    Title: CFO
                                          --------------------------------------
                                    Date: 10/25/99
                                         ---------------------------------------

ACCEPTED IN ROSEMONT, ILLINOIS:

                            LENDER:  COMDISCO, INC.

                                    By: /s/ JAMES LABE
                                       -----------------------------------------
                                    Title: President, Comdisco Ventures Division
                                          --------------------------------------
                                    Date: OCT 29, 1998
                                         ---------------------------------------

                                      -19-

<PAGE>   20
                                    EXHIBIT A
                            SECURED PROMISSORY NOTE

$ __________                                                  Date:_____________

                                                              Due:______________

FOR VALUE RECEIVED, COLO.COM, a California corporation (the "Borrower") hereby
promises to pay to the order of Comdisco, Inc., a Delaware corporation (the
"Lender") at P.O. Box 91744, Chicago, IL 60693 or such other place of payment as
the holder of this Secured Promissory Note (this "Note") may specify from time
to time in writing, in lawful money of the United States of America, the
principal amount of        and 00/100 Dollars ($       ) together with interest
at eight and one quarter percent (8.25%) per annum from the date of this Note to
maturity of each installment on the principal hereof remaining from time to time
unpaid, such principal and interest to be paid 42 equal monthly installments of
$        each, commencing          and on the same day of each month thereafter
to and including          and an additional installment in the amount of $
(15%) ("Balloon Payment") to be paid on         , such installments to be
applied first to accrued and unpaid interest and the balance to unpaid
principal. Interest shall be computed on the basis of a year consisting of
twelve months of thirty days each.

This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Loan and Security Agreement of even date herewith
by and between Borrower and Lender (as the same may from time to time be
amended, modified or supplemented in accordance with its terms, the "Loan
Agreement"), and is entitled to the benefit and security of the Loan Agreement
and the other Loan Documents (as defined in the Loan Agreement), to which
reference is made for a statement of all of the terms and conditions thereof.
All terms defined in the Loan Agreement shall have the same definitions when
used herein, unless otherwise defined herein.

The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.

This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois. This Note shall be governed by and construed and enforced
in accordance with, the laws of the State of Illinois, excluding any conflicts
of law rules or principles that would cause the application of the laws of any
other jurisdiction.

          BORROWER:           COLO.COM
                              2000 Sierra Point, 6th Floor
                              BRISBANE, CA 84005

                              Signature:
                                        -------------------------------
                              Print Name:
                                         ------------------------------
                              Title:
                                    -----------------------------------

                                      -1-

<PAGE>   21
                                    EXHIBIT B
                                 ADVANCE REQUEST

                                      Date:_________________________________

To:                 Lender:
                    Comdisco, Inc.
                    c/o Comdisco Ventures
                    3000 Sand Hill Road
                    Menlo Park, CA 94025
                    Attention: Vika Tonga
                    Facsimile (650) 854-4026

Borrower hereby requests from Comdisco, Inc. ("Lender") an Advance in the amount
of $           under that Loan and Security Agreement between Borrower and
Lender dated           (the "Agreement").

        Please:

        (a)     Issue a check payable to Borrower           ________

                                       or

        (b)     Wire Funds to Borrower's account            ________

                Bank:              __________________________________

                Address:           __________________________________

                                   __________________________________

                ABA Number:        __________________________________

                Account Number:    __________________________________

                Account Name:      __________________________________

Borrower hereby affirms that all Representations and Warranties of Borrower set
forth in Section 4 and all Conditions Precedent to Loan set forth in SECTION 7
of the Agreement remain true and correct as of the date hereof.

        Executed this ___ day of _______, 1999 by:

                         BORROWER:      __________________________________

                              BY:       __________________________________

                              TITLE:    __________________________________

                              PRINT:    __________________________________

                                      -20-

<PAGE>   22
                             SUBORDINATION AGREEMENT

        THIS SUBORDINATION AGREEMENT (this "Agreement") dated as of __________,
1999 is entered into by and between COMDISCO, INC., a Delaware corporation
("Subordinated Creditor"), and _______________ ("Borrower"), a _______________
corporation, for the express benefit of Senior Creditor (as defined in
Section 1, below).

                                    RECITALS

        Concurrently herewith, Subordinated Creditor is agreeing to advance to
Borrower a secured loan of money in the aggregate original principal amount of
____________ DOLLARS ($____) in ____________ installments, the first installment
in the amount of ____________ DOLLARS ($____) and the ____________ installment
in the amount ____________ DOLLARS ($____) each which would be evidenced by one
or more Subordinated Promissory Note(s), and a Subordinated Loan and Security
Agreement, dated as of ____________, 1999 (as the same may from time to time be
amended, modified, supplemented, extended, renewed, restated or replaced, the
"Subordinated Note(s)" and the "Subordinated Loan Agreement," respectively),
made by Borrower in favor of Subordinated Creditor. Borrowers obligations to
Subordinated Creditor evidenced by the Subordinated Note(s) are secured by the
personal property collateral granted by Borrower to Subordinated Creditor
pursuant to the Subordinated Loan Agreement.

        Borrower has advised Subordinated Creditor that it contemplates entering
into a loan agreement (as the same may from time to time be amended, modified,
supplemented or restated, the "Senior Loan Agreement") with Senior Creditor,
pursuant to which Senior Creditor shall make available to Borrower, on a senior
secured basis, certain extensions of credit as described in the Senior Loan
Agreement.

        In contemplation of Borrower obtaining such senior secured financing and
the conditions expected to be imposed by Senior Creditor as conditions precedent
to making available to Borrower the proceeds of such financing, Subordinated
Creditor is entering into this Agreement with Borrower for the express benefit.
of Senior Creditor, on the terms and subject to the conditions set forth below.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of Borrower's and Subordinated
Creditor's entering into the Subordinated Loan Documents (as defined in Section
1, below), Subordinated Creditor and Borrower hereby severally agree, each on
behalf of itself and for the benefit of Senior Creditor, as set forth below.

1.      DEFINITIONS

        As used herein, the following terns shall have the following meanings:

        "EXCLUDED AGREEMENTS" means:

                                       1

<PAGE>   23
                (a) the Warrant Agreement of even date herewith between Borrower
        and Subordinated Creditor pursuant to which Borrower granted
        Subordinated Creditor the right to purchase certain shares of stock (as
        the same may from time to time be amended, modified, supplemented or
        restated, the "Warrant Agreement"), and any other warrants to acquire,
        or agreements governing the rights of the holders of, any equity
        security of Borrower,

                (b) any stock of the Company issued or purchased pursuant to the
        Warrant Agreement,

                (c) the Master Lease Agreement dated as of ___, 1999 between
        Borrower, as lessee, and Subordinated Creditor, as lessor, including,
        without limitation, any Equipment Schedules and Summary Equipment
        Schedules to the Master Lease Agreement executed or delivered by
        Borrower pursuant thereto and any other modifications or amendments
        thereof whereby Borrower (as lessee) leases equipment, software, or
        goods from Subordinated Creditor (as lessor).

        "SENIOR CREDITOR" means a bank, insurance company, pension fund, or
other institutional lender to be determined, or a syndicate of such
institutional lenders (including, without limitation, any agent or other
representative for such syndicate), that provides Senior Debt financing to
Borrower; provided, that Senior Creditor shall not include any officer,
director, shareholder, venture capital investor, or insider of Borrower, or any
affiliate of the foregoing persons, except upon the express written consent of
Subordinated Creditor.

        "SENIOR DEBT" means any and all indebtedness and obligations for
borrowed money (including, without limitation, principal, premium (if any),
interest, fees, charges, expenses, costs, professional fees and expenses, and
reimbursement obligations) at any time owing by Borrower to Senior Creditor
under the Senior Loan Documents including but not limited to such amounts as may
accrue or be incurred before or after default or workout or the commencement of
any liquidation, dissolution, bankruptcy, receivership, or reorganization case
by or against Borrower provided, that Senior Debt shall not include the
following indebtedness or obligations:

        (a) obligations incurred after default or workout or the commencement of
any liquidation, dissolution, bankruptcy, receivership, or reorganization case
by or against Borrower, and

        (b) debt exceeding __________________ Dollars ($__________) outstanding
at any one time.

        "SENIOR LOAN DOCUMENTS" means the Senior Loan Agreement and any other
agreement, security agreement, document, promissory note, UCC financing
statement, or instrument executed by Borrower in favor of Senior Creditor
pursuant to or in connection with the Senior Debt or the Senior Loan Agreement,
as the same may from time to time be amended, modified, supplemented, extended,
renewed, restated or replaced.

        "SUBORDINATED DEBT" means any and all indebtedness and obligations for
borrowed money (including, without limitation, principal, premium (if any),
interest, fees, charges, expenses, costs, professional fees and expenses, and
reimbursement obligations) at any time owing by Borrower to Subordinated
Creditor under the Subordinated Loan Documents, including but not limited to
such amounts as may accrue or be incurred before or after default or

                                       2

<PAGE>   24
workout or the commencement of any liquidation, dissolution, bankruptcy,
receivership, or reorganization case by or against Borrower; provided, that
notwithstanding anything to the contrary contained in this Agreement,
Subordinated Debt shall not include any indebtedness or obligations of Borrower
arising under or in connection with any of the Excluded Agreements.

        "SUBORDINATED LOAN DOCUMENTS" means the Subordinated Note(s), the
Subordinated Loan Agreement, and any other agreement, document, promissory note,
UCC financing statement, or instrument executed by Borrower pursuant to or in
connection with the Subordinated Debt, as the same may from time to time be
amended, modified, supplemented, extended, renewed, restated or replaced;
provided, that the Subordinated Loan Documents shall not include any of the
Excluded Agreements.

2.      SUBORDINATION

        (a) On the terms and conditions set forth below, Subordinated Creditor's
right to payment and performance of the Subordinated Debt is hereby subordinated
to Senior Creditor's right to full payment and performance of the Senior Debt.
Subject to and except as set forth in Section 3, below, Subordinated Creditor
shall not ask, demand, sue for, take or receive from Borrower, by setoff or in
any other manner, the whole or any part of any monies which may now or hereafter
be owing by Borrower to Subordinated Creditor, or be owing by any other person
to Subordinated Creditor under a guaranty or similar instrument, on account of
the Subordinated Debt, nor any collateral security for any of the foregoing,
including, without limitation, any personal property collateral granted to
Subordinated Creditor pursuant to the Subordinated Loan Agreement, unless and
until all Senior Debt shall have been paid in cash or otherwise provided for in
property or securities in the full amount of the allowed claim of the Senior
Debt and all commitments to extend credit under the Senior Loan Agreement shall
have been terminated (the temporary reduction of outstanding obligations,
liabilities and indebtedness of Borrower to Senior Creditor not being deemed to
constitute full payment or satisfaction thereof). Nothing herein shall be deemed
to subordinate, waive or restrict the payment or performance of the obligations
arising under the Excluded Agreements or subordinate the priority of any lien or
interest in property securing or evidenced by the Excluded Agreements.

        (b) Subordinated Creditor expressly understands that Senior Creditor is
expected not to permit Subordinated Creditor to create, maintain or perfect any
lien on or in any property of Borrower, other than the security interest granted
in favor of Subordinated Creditor in certain of Borrowers personal property
under and as described in the Subordinated Loan Agreement. If, notwithstanding
the foregoing, any lien shall be created or shall arise (including, without
limitation, the security interests granted in favor of Subordinated Creditor
pursuant to the Subordinated Loan Agreement), whether by operation of law or
otherwise, and may from time to time exist in favor of Subordinated Creditor in
or on any property of Borrower to secure all or any portion of the Subordinated
Debt, then, regardless of the relative times of attachment or perfection thereof
or the order of filing of financing statements, mortgages or other documents,
any liens granted by Borrower in favor of Senior Creditor to secure the Senior
Debt shall in all respects be first and senior liens, superior to any liens in
favor of Subordinated Creditor securing the Subordinated Debt, including,
without limitation, the security interests granted in favor of Subordinated
Creditor pursuant to the Subordinated Security Agreement. to the event
Subordinated Creditor has or obtains possession of any such property or
forecloses upon or enforces its lien upon any such property, whether by judicial
action or otherwise, then all such property shall be immediately delivered in
kind to Senior Creditor or, if not deliverable in kind, all cash or non-cash
proceeds and profits of such property shall be held in trust for the benefit of

                                       3

<PAGE>   25
Senior Creditor and paid over to Senior Creditor, without any deduction or
offset, unless and until all of the Senior Debt shall have been paid in cash or
otherwise provided for in property or securities in the full amount of the
allowed claim of the Senior Debt and all commitments to extend credit under the
Loan Agreement shall have been terminated.

        (c) The subordination contained in this Agreement is intended to define
the rights and duties of Subordinated Creditor and Senior Creditor; it is not
intended that any third party (including any bankruptcy trustee, receiver, or
debtor-in-possession) shall benefit from it. If the effect of the subordination
contained in this Agreement would be to give any third party a priority status
to which that party would not otherwise be entitled, that provision shall, to
the extent necessary to avoid that priority, be given no effect and the rights
and priorities of Senior Creditor and Subordinated Creditor shall be determined
in accordance with applicable law and this Subordination Agreement.

3.      PERMITTED PAYMENTS; PAYMENT BLOCKAGE

        (a) Notwithstanding anything to the contrary contained in Section 2,
above, but subject expressly to Section 3.b, below, Borrower shall be permitted
to make, and Subordinated Creditor shall be permitted to accept or receive the
following permitted payments ("Permitted Payments"): (i) scheduled repayments of
principal when due under the Subordinated Note(s) and Subordinated Loan
Agreement, (ii) scheduled payments of accrued interest when due under the
Subordinated Note(s) and Subordinated Loan Agreement, (iii) payments of
reimbursable expenses, costs and professional fees and expenses as and when due
under the Subordinated Note(s) and the other Subordinated Loan Documents, (iv)
cancellation of Subordinated Debt in consideration of the Exercise Price for
stock purchased by Subordinated Creditor under the Warrant Agreement, and (v)
other payments consented to in writing by Senior Creditor.

        (b) Notwithstanding anything to the contrary contained in this Section 3
or elsewhere in this Agreement, if Senior Creditor delivers to Subordinated
Creditor written notice (a "Blockage Notice") which states that either:

                (i) a specific default by Borrower involving the payment of
        Senior Debt (a "Payment Default") has occurred under the Senior Loan
        Documents and continues to exist after the giving of any required notice
        and the expiration of any applicable grace or cure period, or

                (ii) a specific default by Borrower not involving the payment of
        Senior Debt (a "Non-Payment Default") has occurred under the Senior Loan
        Documents and continues to exist after the giving of any required notice
        and the expiration of any applicable grace or cure period, and said
        Non-Payment Default shall have resulted in the Senior Debt becoming or
        being declared due and payable prior to the date on which it would
        otherwise have become due and payable (an "Acceleration Notice"),

then from and after the date of delivery of any such Blockage Notice,
Subordinated Creditor shall not accept or receive any payment of any kind of or
on account of the Subordinated Debt (including any Permitted Payment), unless
and until (A) in the case of a Blockage Notice with respect to a Payment
Default, the earlier of (x) the time such Payment Default shall have been cured
by Borrower or waived in writing by Senior Creditor, or (y) the expiration of
the Blockage Period (as defined below) for such Blockage Notice, or (B) in the
case of a Blockage Notice with

                                       4

<PAGE>   26
respect to a Non-Payment Default, the earlier of (x) the time such Acceleration
Notice shall have been rescinded in writing by Senior Creditor (whether or not
such Non-Payment Default shall have been cured or waived), or (y) the expiration
of the Blockage Period for such Blockage Notice.

        As used herein, "Blockage Period" means a period of time beginning on
the date a Blockage Notice is delivered to Subordinated Creditor and terminating
on the earlier to occur of:

                (1) 120 days following such date; provided that if, prior to the
        expiration of such 120-day period. Senior Lender has commenced a
        judicial proceeding or nonjudicial actions to collect or enforce the
        Senior Debt or the collateral for the Senior Debt, or a case or
        proceeding by or against Borrower is commenced under the federal
        Bankruptcy Code or any other insolvency law, then such period shall be
        extended during the continuation of such proceedings and actions until
        the payment in cash or other property or securities in the full amount
        of the allowed claim of the Senior Debt; or

                (2) Senior Creditor's written consent to such termination.

Senior Creditor shall not issue more than one (1) Blockage Notice in any period
of 365 consecutive days. After the satisfaction of the applicable conditions
specified in (A) or (B) above, Subordinated Creditor shall be entitled to
receive all Permitted Payments.

4.      ENFORCEMENT RIGHTS

        Any rights of Subordinated Creditor to accelerate the maturity of the
Subordinated Debt, enforce any claim (including any default remedy) with respect
to the Subordinated Debt or the collateral for the Subordinated Debt, or
otherwise to take any action against Borrower or Borrower's property with
respect to the Subordinated Debt shall be subject to any Blockage Notice given
pursuant to Section 3.b hereof.

S.      ASSIGNMENT OF SUBORDINATED DEBT

        Subordinated Creditor hereby covenants to Senior Creditor that prior to
the termination of this Agreement in accordance with Section 10, below, the
entire Subordinated Debt created in favor of Subordinated Creditor shall
continue to be owing only to Subordinated Creditor, and any collateral security
therefor (including, without limitation, the collateral security granted to
Subordinated Creditor pursuant to the Subordinated Security Agreement) shall
continue to be held solely for the benefit of Subordinated Creditor, unless
assigned pursuant to an assignment made expressly subject to this Agreement. The
Subordinated Note(s) shall be legended to expressly state that it is subject to
this Subordination Agreement.

6.      SENIOR CREDITOR'S PRIORITY

        In the event of any distribution, division, or application, partial or
complete, voluntary or involuntary, by operation of law or otherwise, of all or
any part of the property of Borrower or the proceeds thereof to the creditors of
Borrower, or the readjustment of the Senior Debt and the Subordinated Debt of
Borrower, whether by reason of liquidation, bankruptcy, arrangement,
receivership, assignment for the benefit of creditors or any other action or
proceeding involving the readjustment of all or any part of the Senior Debt or
the Subordinated Debt, or the application of the property of Borrower to the
payment or liquidation thereof, or upon the

                                       5

<PAGE>   27
dissolution, liquidation, reorganization, or other winding up of Borrower's
business, or upon the sale of all or any substantial part of Borrower's property
(any of the foregoing being hereinafter referred to as an "Insolvency Event"),
then, and in any such event, Senior Creditor shall be entitled to receive
payment in cash or other property or securities in the full amount of the
allowed claim of the Senior Debt, before Subordinated Creditor shall be entitled
to receive any payment on account of the Subordinated Debt, and to that end and
in furtherance thereof:

                (a) All payments and distributions of any kind or character,
        whether in cash, property, or securities, in respect of the Subordinated
        Debt to which Subordinated Creditor would be entitled if the
        Subordinated Debt were not subordinated pursuant to this Agreement,
        shall be paid to Senior Creditor and applied in payment of the Senior
        Debt.

                (b) Subordinated Creditor shall file a claim or claims, on the
        form required in such proceedings, on or before thirty (30) days prior
        to the last date such claims or proofs of claim may be filed pursuant to
        law or the order of any court exercising jurisdiction over such
        proceeding.

                (c) In the event that, notwithstanding the foregoing, any
        payment or distribution of any kind or character, whether in cash,
        properties or securities, shall be received by Subordinated Creditor on
        account of the Subordinated Debt before all of the Senior Debt has been
        paid, then such payment or distribution shall be received by
        Subordinated Creditor in trust for and shall be promptly paid over to
        Senior Creditor for application to the payments of amounts due on the
        Senior Debt until the Senior Debt shall have been paid in cash,
        property, or securities in the full amount of the allowed claim of the
        Senior Debt.

7.      GRANT OF AUTHORITY

        In the event of the occurrence of an Insolvency Event, and in order to
enable Senior Creditor to enforce its rights hereunder in any of the aforesaid
actions or proceedings, Senior Creditor is hereby irrevocably authorized and
empowered, in Senior Creditor's discretion, as follows:

                (a) Senior Creditor is hereby irrevocably authorized and
        empowered (in its own name or in the name of Subordinated Creditor or
        otherwise), but shall have no obligation, (i) to demand, sue for,
        collect and receive every payment or distribution referred to in Section
        6, above, and give acquittance therefor and (ii) (if Subordinated
        Creditor has failed to file claims or proofs of claim on or before
        thirty (30) days prior to the last date such claims or proofs of claim
        may be filed pursuant to law or the order of any court exercising
        jurisdiction over such proceeding) to file claims and proofs of claim,
        and (iii) to take such other action (including, without limitation,
        enforcing any lien securing payment of the Subordinated Debt) as it may
        deem necessary or advisable for the exercise or enforcement of any of
        the rights or interests of Senior Creditor hereunder. Subordinated
        Creditor shall duly and promptly take such action as Senior Creditor may
        reasonably request to execute and deliver to Senior Creditor such
        authorizations, endorsements, assignments, or other instruments as
        Senior Creditor may reasonably request in order to enable Senior
        Creditor to enforce any and all claims with respect to, and any liens
        securing payment of, the Subordinated Debt as such enforcement is
        contemplated herein.

                                       6

<PAGE>   28
                (b) To the extent that payments or distributions on account of
        the Subordinated Debt are made in property or securities other than
        cash, Subordinated Creditor authorizes Senior Creditor to sell or
        dispose of such property or securities on such terms as are commercially
        reasonable in the situation in question. Following full payment of the
        Senior Debt, Senior Creditor shall remit to Subordinated Creditor (with
        all necessary endorsements) to the extent of Subordinated Creditor's
        interest therein, all payments and distributions of cash, property, or
        securities paid to and held by Senior Creditor in excess of the allowed
        amount of the Senior Debt,

8.      PAYMENTS RECEIVED BY SUBORDINATED CREDITOR

        Should any payment, distribution, or security be received by
Subordinated Creditor upon or with respect to the Subordinated Debt (other than
Permitted Payments) prior to termination of this Agreement in accordance with
Section 10, below, Subordinated Creditor shall receive and hold the same in
trust for the benefit of Senior Creditor and shall forthwith deliver the same to
Senior Creditor in precisely the form received (except for the endorsement or
assignment of Subordinated Creditor where necessary), for application to the
Senior Debt, and, until so delivered, the same shall be held in trust by
Subordinated Creditor as the property of Senior Creditor.

                                       7

<PAGE>   29
9.      FURTHER ASSURANCES; COOPERATION

        Subject to Section 16.b hereof, Subordinated Creditor agrees to
cooperate with Senior Creditor and to take all actions that Senior Creditor may
reasonably require to enable Senior Creditor to realize the full benefits of
this Agreement.

10.     TERMINATION OF AGREEMENT

        This Agreement shall be effective upon the date set forth in Section 21
hereof. After the effective date occurs, this Agreement shall remain in effect
and cannot be revoked or amended by Subordinated Creditor, except with the
written consent of Senior Creditor. This Agreement shall terminate upon the date
which is 105 days following the date on which the Senior Debt shall have been
paid in cash or other property or securities in the full amount of the allowed
claim of the Senior Debt and all commitments to extend credit under the Loan
Agreement shall have been terminated.

11.     ADDITIONAL AGREEMENTS FOR SENIOR CREDITOR

        Senior Creditor may administer and manage its credit and other
relationships with Borrower in its own best interest, without notice to or
consent of Subordinated Creditor. At any time and from time to time, Senior
Creditor may enter into any amendment or agreement with Borrower as Senior
Creditor may deem proper, extending the time of payment of or renewing or
otherwise altering the terms of all or any of the obligations constituting
Senior Debt or affecting the collateral security for, supporting or underlying
any or all of the Senior Debt, and may exchange, sell, release, surrender or
otherwise deal with any such collateral without in any way thereby impairing or
affecting this Agreement, and all such additional agreements and amendments
shall be "Senior Loan Documents" evidencing the Senior Debt; provided, that
neither this Section 11 nor any provision of such agreements shall affect the
limitations contained in the definitions of Senior Creditor or Senior Debt.

12.     SUBROGATION

        If cash or other property otherwise payable or deliverable to
Subordinated Creditor or on account of the Subordinated Debt shall have been
applied pursuant to this Agreement to the payment of the Senior Debt, and if the
Senior Debt shall have been paid in CASH, property or securities in the full
amount of the allowed claim of Senior Debt, then Subordinated Creditor shall be
subrogated to any rights of Senior Creditor to receive further payments or
distributions applicable to the Senior Debt until the Subordinated Debt shall
have been fully paid. No such payments or distributions received by Subordinated
Creditor by reason of such subrogation shall, as between Borrower and its
creditors other than Senior Creditor, on the one hand, and Subordinated
Creditor, on the other hand, be deemed to be a payment by Borrower on account of
the Subordinated Debt owed to Subordinated Creditor.

13.     SUBORDINATED CREDITOR'S WAIVERS AND COVENANTS

        (a) Without limiting the generality of any other waiver made by
Subordinated Creditor in this Agreement, Subordinated Creditor hereby expressly
waives (i) reliance by Senior Creditor upon the subordination and other
agreements herein provided, and (ii) any claim that Subordinated Creditor may
now or hereafter have against Senior Creditor arising out

                                       8

<PAGE>   30
of any and all actions that Senior Creditor, in good faith, takes or omits to
take (A) with respect to the creation, perfection or continuation of liens in or
on any collateral security for the Senior Debt, (B) with respect to the
foreclosure upon, sale, release, or depreciation of, or failure to realize upon,
any of the collateral security for the Senior Debt, (C) with respect to the
collection of any claim for all or any part of the Senior Debt from any account
debtor, guarantor or any other third party and (D) with respect to the
valuation, use, protection or release of any collateral security for the Senior
Debt.

        (b) Without limiting the generality of any other covenant or agreement
made by Subordinated Creditor in this Agreement, Subordinated Creditor hereby
covenants and agrees that (i) Senior Creditor has not made any warranties or
representations with respect to the due execution, legality, validity,
completeness or enforceability of the Senior Loan Agreement or any of the other
Senior Loan Documents, or the collectibility of the Senior Debt; and (ii)
Subordinated Creditor will not interfere with or in any manner oppose a
disposition of any collateral security for the Senior Debt by Senior Creditor.

14.     REINSTATEMENT OF SENIOR DEBT

        To the extent that the Senior Creditor receives payments on, or proceeds
of any collateral security for the Senior Debt which are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee, receiver or any other party under any bankruptcy law,
state or federal law, common law, or equitable cause, then, to the extent of
such payment or proceeds invalidated, declared to be fraudulent or preferential,
set aside or required to be repaid, the Senior Debt, or part thereof, intended
to be satisfied shall be revived and continue in full force and effect as if
such payments or proceeds had not been received by Senior Creditor.

15.     NO WAIVERS

        Senior Creditor shall not be prejudiced in its rights under this
Agreement by any act or failure to act of Borrower or Subordinated Creditor or
any noncompliance of Borrower or Subordinated Creditor with any agreement or
obligation, regardless of any knowledge thereof which Senior Creditor may have,
or with which Senior Creditor may be charged; and no action permitted hereunder
taken by Senior Creditor shall in any way affect or impair the rights of Senior
Creditor in the exercise of any other right or remedy or shall operate as a
waiver thereof, and no single or partial exercise by Senior Creditor of any
right or remedy shall preclude any other or further exercise thereof; nor shall
any modification or waiver of any of the provisions of this Agreement be binding
upon Senior Creditor, except as expressly set forth in a writing duly signed and
delivered by Senior Creditor.

16.     INFORMATION CONCERNING BORROWER; CREDIT ADMINISTRATION

        (a) Subordinated Creditor hereby assumes responsibility for keeping
itself informed of the financial condition of Borrower, any and all endorsers
and any and all guarantors of the Senior Debt and of all other circumstances
bearing upon the risk of nonpayment of the Senior Debt or the Subordinated Debt
that diligent inquiry would reveal, and Subordinated Creditor hereby agrees that
Senior Creditor shall have no duty to advise Subordinated Creditor of
information known to Senior Creditor regarding such condition.

                                       9

<PAGE>   31
        (b) Subject to Sections 2.d, 3, 4, 7, and 8 hereof, Subordinated
Creditor may (i) administer and manage its credit and other relationships with
Borrower in its own best interest, and (ii) amend or extend its agreements with
Borrower or enter into additional agreements with Borrower, all without the
consent of or notice to the Senior Creditor; provided that neither this Section
16.b nor any amendments or additional agreements referred to therein shall
impair or affect the subordination of Subordinated Debt or change the definition
of Subordinated Debt or Subordinated Creditor.

17.     NOTICES

        Except as otherwise provided herein, all notices and service of process
required, contemplated, or permitted hereunder or with respect to the subject
matter hereof shall be in writing, and shall be deemed to have been validly
served, given or delivered upon the earlier of: (i) the first business day after
transmission by facsimile or hand delivery or deposit with an overnight express
service or overnight mail delivery service; or (ii) the third calendar day after
deposit in the United States mails, with proper first class postage prepaid, and
shall be addressed to the party to be notified as follows:

IF TO SUBORDINATED CREDITOR:

                                 COMDISCO, INC.
                                Legal Department
                           Attention: General Counsel
                              6111 North River Road
                               Rosemont, IL 60018
                            Facsimile: (847) 518-5088

WITH A COPY TO:

                           COMDISCO INC./VENTURE GROUP
                              Attention: James Labe
                              6111 North River Road
                               Rosemont, IL 60018
                            Facsimile: (847) 518-5465

IF TO BORROWER:

                          ____________________________
                             Attention:___________
                          ____________________________
                      ___________________________________
                            FAX: (__)___-__________
                            TEL: (__)___-__________

If to Senior Creditor, at such address as Senior Creditor shall designate in a
writing given to Subordinated Creditor and Borrower, or to such other address as
each party may designate for itself by like notice.

18.     SEVERABILITY

                                       10

<PAGE>   32
        Wherever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

19.     GOVERNING LAW

        This Agreement has been approved by Subordinated Creditor in the State
of Illinois, and shall be governed by and interpreted in accordance with the
laws of the State of Illinois without regard to principles of conflict of laws
that would cause the application of laws of any other jurisdiction.

20.     ASSIGNMENT

        This Agreement shall be binding upon Subordinated Creditor, Borrower and
their respective successors and assigns, and shall inure to the benefit of and
be enforceable by Senior Creditor and its successors and assigns.

21.     EFFECTIVENESS OF AGREEMENT

        This Agreement shall be effective upon the occurrence of both of the
following events: (a) the execution of this Agreement by Borrower and its
acceptance in Rosemont, Illinois by Subordinated Creditor, and (b) the delivery
by Borrower and Senior Creditor to Subordinated Creditor of written notice (the
"Notice of Senior Loan") in the form attached hereto as Exhibit A, that Borrower
has entered into a Senior Loan Agreement with Senior Creditor for Senior Debt,
which notice shall identify Senior Creditor and state the address to which
notices to Senior Creditor are to be sent. Borrower agrees to furnish
Subordinated Creditor with a copy of the Senior Loan Agreement and such other
Senior Loan Documents as Subordinated Creditor shall reasonably request;
provided, however, that any delay or failure by borrower to furnish such copies
shall not limit or impair the effectiveness of this Agreement.

22.     MUTUAL WAIVER OF JURY TRIAL

        Because disputes arising in connection with complex financial
transactions are most quickly and economically resolved by an experienced and
expert person and the parties wish applicable state and federal laws to apply
(rather than arbitration rules), the parties desire that their disputes be
resolved by a judge applying such applicable laws. EACH OF BORROWER,
SUBORDINATED CREDITOR, AND SENIOR CREDITOR SPECIFICALLY WAIVE EACH PARTY'S RIGHT
TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD
PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, "CLAIMS") ASSERTED BY BORROWER,
SUBORDINATED CREDITOR, OR SENIOR CREDITOR AGAINST THE OTHER PARTY OR PARTIES TO
THIS AGREEMENT. This Waiver extends to all such claims, including, without
limitation, claims which involve persons or entities other than Borrower,
Subordinated Creditor, and Senior Creditor; claims which arise out of or are in
any way connected to the relationships between or among Borrower, Subordinated
Creditor, and Senior Creditor; and any claims for damages, breach of contract,
specific performance, or any equitable or legal relief of any kind.

23.     COUNTERPARTS

                                       11

<PAGE>   33
        This Agreement and any amendments, waivers, consents or supplements
hereto may be executed in any number of counterparts, and by different parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all of which counterparts together shall
constitute but one and the same instrument.

                                       12

<PAGE>   34
        IN WITNESS WHEREOF, this Subordination Agreement has been executed as of
the date first above written.

               BORROWER:
                                   -----------------------------------------

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

                                   Print Name:
                                              ------------------------------

                                   Title:
                                         -----------------------------------

ACCEPTED IN ROSEMONT. ILLINOIS:
        SUBORDINATED CREDITOR      COMDISCO, INC.

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

                                   Print Name:
                                              ------------------------------

                                   Title:
                                         -----------------------------------

                                       13

<PAGE>   35
                                    EXHIBIT A
                           TO SUBORDINATION AGREEMENT

                              NOTICE OF SENIOR LOAN

        Pursuant to Section 2 of the Subordination Agreement dated as of April
________ , 1999, by and between Comdisco, Inc., (as Subordinated Creditor) and
_____________ (as Borrower), notice is hereby given that Borrower has entered
into a Senior Loan Agreement with __________________ (as Senior Creditor), whose
address is: ________________ Facsimile: (___)___ -______, and that on and after
the date of this Notice Senior Creditor is and shall be entitled to all the
rights and benefits of the Subordination Agreement and shall be bound thereby.

        Attached hereto are true and correct copies, as executed, of the Senior
Loan Agreement and the other Senior Loan Documents.

BORROWER:

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

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

                                   Print Name:
                                              ------------------------------

                                   Title:
                                         -----------------------------------

SENIOR CREDITOR:                                                      [NAME]
                                   -----------------------------------

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

                                   Print Name:
                                              ------------------------------

                                   Title:
                                         -----------------------------------

                                       14

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