Document:

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                                                                   EXHIBIT 10.70

                     S H A R E  P L E D G E  A G R E E M E N T

          PLEDGOR:                         1423280 Ontario Inc.

          SECURED PARTY:                   Foothill Capital Corporation

          CORPORATION:                     FutureLink Canada Corp.

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                             SHARE PLEDGE AGREEMENT

PARTIES

        PLEDGOR

          Name:            1423280 Ontario Inc.

          Address:         100 King Street West
                           1 Canadian Place, Suite 6600
                           Toronto, ON   M5X 1B8

          Fax No:          (902) 425-6500

        SECURED PARTY

          Name:            Foothill Capital Corporation

          Address:         2450 Colorado Avenue,
                           Suite 3000 West
                           Santa Monica, California
                           90404

          Fax No:          (310) 453-7443

        CORPORATION

          Name:            FutureLink Canada Corp.

          Address:         2 Gibbs Road
                           Toronto, ON   M9B 6L6

          Fax No:          (949) 672-3117

        EFFECTIVE DATE

          December 14, 2000 (the "Effective Date")

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1.      GRANT OF SECURITY INTEREST

        For valuable consideration (the receipt and sufficiency of which each of
the parties hereto hereby acknowledges) the Pledgor hereby assigns, pledges,
hypothecates and grants to the Secured Party a security interest (to which the
Personal Property Security Act (Ontario) and the regulations thereto, as the
same may be amended from time to time (the "PPSA") applies) in and grants,
mortgages and charges as and by way of a fixed and specific mortgage and charge
to and in favour of the Secured Party, all of the Pledgor's rights, title and
interests in and to 100 common shares in the capital of the Corporation owned by
the Pledgor including without limitation all dividends or other distributions
paid or payable in respect thereof from time to time (the "SHARES"), all
pursuant to and in accordance with the provisions of this Agreement.

2.      SECURED OBLIGATIONS

        The security interests, mortgages and charges granted hereby secure all
of the following (collectively, the "OBLIGATIONS"): both the performance and the
payment to the Secured Party of all obligations, debts and liabilities
(including, without limitation, on account of damages) of the Pledgor to the
Secured Party, present or future, direct or indirect, absolute or contingent,
liquidated or unliquidated, matured or not, wheresoever and howsoever incurred,

        (a)    whether arising under this or any other agreement (whether
               written or oral), instrument or writing;

        (b)    whether arising from dealings between the Secured Party and the
               Pledgor or from other dealings or proceedings by which the
               Secured Party may be or become in any manner whatever a creditor,
               obligee or promisee of the Pledgor;

        (c)    whether incurred by the Pledgor alone or with another or others;

        (d)    whether incurred by the Pledgor as principal, surety, indemnitor,
               obligor or promissor; and

        (e)    whether such obligations, debts and liabilities are from time to
               time reduced and thereafter increased or entirely extinguished
               and thereafter incurred again,

        all including, without limitation, all interest, commissions, legal and
other costs, charges and expenses payable in connection with any and all of the
foregoing and, in addition thereto, the Expenses (provided for and defined
below).

3.      ATTACHMENT

        Each of the parties hereto acknowledges and confirms that the security
interests, mortgages and charges granted hereby shall attach:

        (a)    forthwith upon the Effective Date with respect to the Shares in
               which the Pledgor then has rights; and

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        (b)    with respect to Substituted or Additional Shares (defined below)
               forthwith upon the Pledgor first acquiring rights in such
               Substituted or Additional Shares.

        For greater certainty, without in any way limiting the above, each of
the parties hereto acknowledges and confirms that they have not agreed to
postpone the time for attachment of the said security interests, mortgages and
charges.

4.      PERFECTION

        (a)    Subject to paragraph 4(b) hereof, in furtherance of the security
               interests, mortgages and charges hereby granted to the Secured
               Party, the Pledgor agrees that contemporaneously with the
               execution of this Agreement, it shall deliver the following to
               the Secured Party upon the terms hereof:

               (i)    the relevant share certificate(s) representing all of the
                      Shares, duly registered in the name of the Pledgor, and
                      duly endorsed in blank for transfer hereunder and noting
                      conspicuously on the face thereof the following:

                             "TAKE notice that the ownership and transfer of the
                             shares represented by this Certificate are
                             restricted by and are subject to the provisions of
                             a Share Pledge Agreement dated December 14, 2000".

               (ii)   a transfer in blank of the Shares duly executed by the
                      Pledgor, the Pledgor hereby giving the Secured Party the
                      authority to complete the said transfer on its behalf upon
                      the occurrence of an Event of Default (defined below);

               (iii)  a certified copy of a resolution of the directors of the
                      Corporation approving the hypothecation and pledge of
                      the Shares to the Secured Party, the notation of the
                      Secured Party's interest on the relevant share
                      certificate(s) and in the shareholder ledgers of the
                      Corporation, any further transfers of the Shares made
                      pursuant to this Agreement, and the recording of same in
                      the books and records of the Corporation, which
                      resolution shall state that it may not be amended or
                      revoked without the prior written consent of the Secured
                      Party; and

               (iv)   signed, undated resignations addressed to the Corporation
                      pursuant to which each officer and/or director of the
                      Corporation resigns from all offices with the Corporation
                      and/or as a director on its board of directors.

        (b)    The Secured Party acknowledges and agrees that it shall hold the
               Shares hereby delivered to it in accordance with the terms of
               this Agreement.

5.      RIGHT TO VOTE

        So long as no Event of Default has occurred hereunder, the Pledgor shall
be entitled to remain as shareholder of record of the Shares and to exercise all
voting rights in respect of the Shares.

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6.      RIGHT TO DIVIDENDS, ETC.

        So long as no Event of Default has occurred hereunder, the Pledgor shall
be entitled to receive all dividends and other distributions paid or payable in
respect of the Shares. In the event that the Pledgor receives any dividend or
other distribution contrary to the foregoing it shall stand possessed of same in
trust solely for the Secured Party and shall forthwith pay or deliver the same
to the Secured Party to be applied in accordance with paragraph 15.

7.      PLEDGOR'S WARRANTIES

        The Pledgor hereby represents and warrants to and covenants with the
Secured Party as follows and acknowledges that the Secured Party is, in part,
relying upon such representations, warranties and covenants in accepting the
security interests, mortgages and charges granted upon the terms of this
Agreement:

        (a)    Ownership of Shares: The Pledgor is the absolute and beneficial
               owner of the Shares and none of the Shares is held in the name of
               any person other than the Pledgor, whether as agent, trustee or
               other nominee for the Pledgor and the Shares are recorded in the
               name of the Pledgor in the shareholder ledgers and registers in
               the Corporation's minute book.

        (b)    No Encumbrances: The Shares are owned by the Pledgor with good
               and marketable title thereto and they are and shall at all times
               be kept free and clear of any and all mortgages, hypothecs,
               pledges, claims, adverse claims, demands, liens, charges,
               security interests, encumbrances, agreements, rights and equities
               of any kind whatsoever other than those given by the Pledgor to
               or in favour of Secured Party.

        (c)    Due Authorization: The Pledgor has the corporate power and
               capacity to enter into this Agreement and to do all acts and
               things as are required or contemplated hereunder to be done,
               observed and performed by it.

        (d)    Right to Grant: The Pledgor has taken all necessary corporate
               action to authorize the execution, delivery and performance of
               this Agreement and the Pledgor shall at all relevant times have
               the full right, power and authority to perform its obligations
               hereunder and to grant the security interests, mortgages and
               charges as herein provided.

        (e)    No Default: The entering into of this Agreement and the
               performance by the Pledgor of its obligations hereunder does not
               and will not contravene, breach or result in any default under
               any agreement to which the Pledgor is a party or by which the
               Pledgor or any of the Shares may be bound and will not result in
               or permit the acceleration of the maturity of any indebtedness,
               liability or obligation of the Debtor under any such agreement.

        (f)    No Agreements or Options: No person, firm or corporation other
               than the Secured Party has any agreement or option (whether
               written or oral) or any right or privilege (whether by law,
               pre-emptive or contractual) capable of becoming an agreement or
               option for the purchase of the Shares or any interests therein or
               rights thereto.

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        (g)    No Litigation: There is not pending any court, administrative,
               regulatory or other action or legal proceeding of any sort
               either to restrain or otherwise prevent in any manner the
               Pledgor from effectually and legally hypothecating and pledging
               the Shares to the Secured Party free and clear of any and all
               mortgages, hypothecs, pledges, claims, adverse claims, demands,
               liens, charges, security interests, encumbrances, agreements,
               rights and equities of any kind whatsoever or any suit, action
               or proceeding the effect of which would be to cause a lien to
               attach to the Shares or to divest title to the Shares in any
               manner whatsoever.

        (h)    Issued Capital: The only issued and outstanding shares in the
               capital of the Corporation owned by the Pledgor are the Shares
               and no person, firm or corporation has any agreement or option
               (whether written or oral) or any right or privilege (whether by
               law, pre-emptive or contractual) capable of becoming an
               agreement, including convertible securities, warrants or
               convertible obligations of any nature for the purchase,
               subscription, allotment or issuance of any of the unissued shares
               in the capital of the Corporation.

8.      PLEDGOR'S COVENANTS

        The Pledgor covenants and agrees with the Secured Party that:

        (a)    Obligations: The Pledgor shall pay, perform, satisfy, fulfill and
               discharge the Obligations when due.

        (b)    No Transfers or Encumbrances: The Pledgor shall not either
               directly or indirectly (including by way of corporate
               reorganization, amalgamation or otherwise) sell, transfer,
               convey, assign, exchange, convert or in any manner dispose of,
               pledge or in any manner encumber any of the Shares without the
               prior written consent of the Secured Party, except as expressly
               permitted or required elsewhere herein.

        (c)    Substituted or Additional Shares: In the event any substituted
               or additional shares in the capital of the Corporation are
               received or acquired (directly or indirectly) by or on behalf of
               the Pledgor, whether as a result of a share issuance,
               subdivision, consolidation, conversion, reclassification, stock
               dividend, transfer, sale, reorganization, amalgamation or
               otherwise (the "SUBSTITUTED OR ADDITIONAL SHARES"), the Pledgor
               shall stand possessed of the Substituted or Additional Shares in
               trust for the Secured Party and shall forthwith deliver to the
               Secured Party the certificate or certificates representing the
               Substituted or Additional Shares together with a certified copy
               of the resolution of the directors of the Corporation approving
               the hypothecation and pledge thereof to the Secured Party
               whereupon the Secured Party shall hold and deal with the
               Substituted or Additional Shares and the certificate or
               certificates evidencing the same as the Shares.

9.      EVENTS OF DEFAULT

        Forthwith upon the occurrence of any of the following events (an "EVENT
OF DEFAULT"), the Obligations will, without the Secured Party being required to
give notice or demand, become due and payable in full and, to the extent
applicable, be required to be fully performed:

        (a)    the failure of the Pledgor to pay when due any payment of any of
               the Obligations;

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        (b)    the failure of the Pledgor to perform any of the Obligations;

        (c)    any representation, warranty, statement or report which is false
               or incorrect in any respect having been made or given by the
               Pledgor to the Secured Party, whether contained herein or in any
               other agreement (written or oral), instrument or writing;

        (d)    the failure or inability of the Pledgor or the Corporation to pay
               any of its debts or liabilities as the same fall due;

        (e)    the occurrence of a default by the Pledgor under any agreement,
               instrument or writing entered into by the Pledgor with any
               person(s);

        (f)    the Pledgor or the Corporation making or agreeing to make an
               assignment, disposition or conveyance, whether by way of sale or
               otherwise, of its assets in bulk;

        (g)    the abandonment by the Pledgor or the Corporation of its assets
               or any part thereof;

        (h)    the Pledgor or the Corporation ceasing or threatening to cease
               carrying on its business or any of its businesses;

        (i)    the Pledgor or the Corporation taking any action or commencing
               any proceeding or any action or proceeding being taken or
               commenced by another person or persons against the Pledgor or the
               Corporation in respect of the liquidation, dissolution or
               winding-up of the Pledgor or the Corporation, including without
               limitation, any action or proceeding under the Winding Up and
               Restructuring Act, the Business Corporations Act (Ontario), the
               Canada Business Corporations Act or other similar legislation
               whether now or hereinafter in effect;

        (j)    the Pledgor or the Corporation taking any action or commencing
               any proceeding or any action or proceeding being taken or
               commenced by another person or persons against the Pledgor or
               the Corporation relating to the reorganization, readjustment,
               compromise or settlement of the debts owed by the Pledgor or the
               Corporation to its creditors where such reorganization,
               readjustment, compromise or settlement shall affect a
               substantial portion of the Pledgor's or the Corporation's
               assets, including without limitation, the filing of a notice of
               intention to make a proposal or the filing of a proposal
               pursuant to the provisions of the Bankruptcy and Insolvency Act,
               the making of an order under the Companies' Creditors
               Arrangements Act or the commencement of any similar action or
               proceeding by the Pledgor or the Corporation or such person or
               persons;

        (k)    the Pledgor or the Corporation committing or threatening to
               commit any act of bankruptcy pursuant to or set out under the
               provisions of the Bankruptcy and Insolvency Act;

        (l)    the filing of a petition for a receiving order against the
               Pledgor or the Corporation pursuant to the provisions of the
               Bankruptcy and Insolvency Act;

        (m)    any execution, sequestration or other process of any court or
               other tribunal becoming enforceable against the Pledgor or the
               Corporation or a distress or analogous action or proceeding
               being taken, commenced or issued against the

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               Pledgor or the Corporation or levied upon or in respect of its
               assets or any part thereof, or any lien, trust claim or any
               other right or entitlement against or in respect of its assets
               or any part thereof becoming effective, including, without
               limitation, a warrant of distress of any rent in respect of any
               premises occupied by the Pledgor or the Corporation or any
               premises in or upon which its assets or any part thereof may at
               any time be situate or if a notice of an adverse claim in
               respect of the Shares is made;

        (n)    the loss, damage, destruction or confiscation of any part of the
               assets of the Pledgor or the Corporation unless upon such event,
               the Pledgor pays to the Secured Party forthwith such amount as
               the Secured Party in its absolute and uncontrolled discretion
               determines is satisfactory; and

        (o)    the Secured Party in good faith and having commercially
               reasonable grounds for believing that the ability of the Pledgor
               to pay any monies hereby secured or to perform any requirement of
               any provision contained in this Agreement or any other agreement
               (written or oral), instrument or writing heretofore or hereafter
               given by the Pledgor to the Secured Party is impaired or that the
               assets of the Pledgor or the Corporation are in danger of being
               lost, damaged, destroyed or confiscated.

10.     RIGHTS AND REMEDIES

        Forthwith upon the occurrence of an Event of Default, the security
interests, mortgages and charges granted herein shall be enforceable and the
Pledgor and the Secured Party shall have, in addition to any other rights and
remedies provided by law, the rights and remedies of a debtor and a secured
party respectively under the PPSA and those provided by this Agreement.

11.     EXPENSES

        The reasonable costs and expenses of the Secured Party in the
preparation, execution and delivery of this Agreement, the registration of this
Agreement or of notices, financing statements or other filings in respect
thereof, the reasonable costs and expenses of the Secured Party in connection
with the preparation or review of waivers, consents, amendments or other matters
pertaining to the subject matter of this Agreement, the reasonable costs and
expenses expressly provided for in the PPSA and, in addition thereto, the cost
of any insurance, taxes, solicitor's fees, costs and other legal expenses and
all other costs, charges and expenses of or incurred (on a scale as between a
solicitor and his own client) by the Secured Party in respect of any of the
foregoing and in respect of the enforcement of the Obligations, including taking
possession, custody, holding, preserving, protecting, repairing, using or
operating, collecting, realizing, processing, preparing for disposition and
disposing of the Shares and any other collateral for the Obligations taken by
the Secured Party (collectively, the "Expenses") shall be payable by the Pledgor
to the Secured Party forthwith upon demand, shall be deemed advanced to the
Pledgor by the Secured Party, shall bear interest at a rate equal to the Prime
Rate (defined below) plus 4% per annum calculated, both before and after demand,
maturity, default and judgment, from the date each of the Expenses,
respectively, was incurred until fully paid by the Pledgor and shall be secured
by this Agreement.

        "PRIME RATE" means the annual rate of interest announced from time to
time by Royal Bank of Canada as a reference rate then in effect for determining
interest rates on Canadian dollar commercial loans in Canada.

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        The Pledgor authorizes the Secured Party to designate, in its sole
discretion, any number of years as the registration period in any financing
statement or financing change statement filed with respect to this Agreement or
any other agreement delivered by the Pledgor to the Secured Party ("DESIGNATED
PERIOD").

        The Pledgor acknowledges and confirms that:

        (a)    all registration costs in connection with the filing of the
               aforesaid financing statements or financing change statements are
               and shall be reasonable and shall form part of the Expenses;

        (b)    the designation of the number of years comprising the Designated
               Period shall not constitute an acknowledgement by or commitment
               or other obligation of the Secured Party to provide financial
               assistance (whether by loan, agreement or otherwise) to the
               Pledgor at any time or from time to time during the Designated
               Period; and

        (c)    the Secured Party shall be entitled to exercise all of its rights
               and remedies provided for in this Agreement forthwith upon the
               occurrence of an Event of Default notwithstanding that such Event
               of Default may occur prior to the expiration of the Designated
               Period.

12.     NOTICE OF DISPOSITION

        Unless not required to do so by applicable law, the Secured Party shall
give to the Pledgor at least 15 days written notice of the Secured Party's
intention to dispose of the Shares. Such notice may be sent by registered mail
to the last known post office address of the Pledgor.

13.     MODE OF DISPOSITION

        The Secured Party may dispose of the Shares by a private sale or public
auction or tender at any place and time whatsoever and in such manner and at
such price as the Secured Party may reasonably determine, either for cash or on
credit, or for part cash and part credit. The Secured Party may postpone any
sale prior to the date thereof and may sell the Shares as a whole or in parcels
and if in parcels in such order and manner as the Secured Party may reasonably
determine. Until the time such sale is completed, the amount of any dividends or
other distributions paid or payable by the Corporation in respect of the Shares
shall be paid to the Secured Party.

14.     SECURED PARTY MAY PURCHASE

        Upon the disposition of the Shares at a public sale, the Secured Party
may become a purchaser of the Shares free of any right or equity of redemption
which right or equity is hereby expressly waived.

15.     PROCEEDS OF DISPOSITION/DEFICIENCY

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        Any proceeds of any disposition of any of the Shares shall be applied by
the Secured Party firstly on account of the Expenses, and any balance of such
proceeds shall be applied by the Secured Party on account of the Obligations
(other than the Expenses) in such order of application as the Secured Party may
from time to time effect and the same shall not be subject to dispute by the
Pledgor. If such proceeds fail to satisfy the Obligations, the Pledgor shall be
liable for the full amount of the deficiency resulting to the Secured Party.

16.     GENERAL PROVISIONS

        (a)    Discharge: The Pledgor shall not be discharged from the
               Obligations by any extension of time, additional advances,
               renewals, amendments or extensions to this Agreement, any waiver
               by or failure of the Secured Party to enforce any provision of
               this Agreement or any other agreement, the taking of further
               security, releasing security, extinguishment of the security
               interests, mortgages and charges as to all or any part of the
               Shares, or any other act except a release or discharge by the
               Secured Party of the security interests, mortgages and charges
               granted hereby upon the full payment and performance of the
               Obligations, at which time the Secured Party shall, at the
               Pledgor's expense, deliver to the Pledgor the relevant share
               certificate(s) representing all of the Shares duly endorsed in
               blank for transfer, all other documents held by the Secured
               Party pursuant to this Agreement, and all necessary discharges
               and releases of the security interests, mortgages and charges
               granted hereby.

        (b)    Other Security:

               (i)    The security constituted by this Agreement is in addition
                      to and not in substitution for any other security,
                      guarantee or right from time to time held by the Secured
                      Party;

               (ii)   The Secured Party may realize upon or enforce all or part
                      of any security, guarantee or right from time to time held
                      by it in any order it desires and any realization by any
                      means upon any security, guarantee or right shall not bar
                      realization by upon any other security, guarantee or
                      right; and

               (iii)  The taking of any action or proceeding or refraining from
                      so doing or any other dealings with or in respect of any
                      other security, guarantee or right from time to time held
                      by the Secured Party shall not release or affect the
                      security provided for in this Agreement and the taking of
                      the security hereby granted or any proceedings hereunder
                      for the realization of the security hereby granted shall
                      not release or affect any other security, guarantee or
                      right from time to time held by the Secured Party.

        (c)     Waiver, etc.: No failure or delay on the part of the Secured
                Party to exercise any right provided for in or contemplated by
                this Agreement and no waiver as to an Event of Default hereunder
                shall operate as a waiver thereof unless made in writing and
                signed by the Secured Party and, in that event, such waiver
                shall operate only as a waiver of the right or Event of Default
                expressly referred to therein. Nothing in this Agreement and
                nothing referred to in the Obligations shall preclude any

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               other remedy by action or otherwise for the enforcement of this
               Agreement or the payment and performance in full of the
               Obligations.

        (d)    Secured Party Assignment: All rights and obligations of the
               Secured Party hereunder shall be freely assignable in whole or in
               part without the consent of the Pledgor and in any action brought
               by any assignee to enforce such rights, the Pledgor shall not
               assert against such assignee any claim, defence, right of
               set-off, or the benefit of any equities which the Pledgor now has
               or may hereafter have against the Secured Party.

        (e)    Entire Agreement: This Agreement sets forth the entire intent and
               understanding of the parties relating to the subject-matter
               hereof and supersedes and replaces all prior agreements and
               commitments, whether written or oral, made between the parties
               and all earlier discussions and negotiations between them. The
               parties are not relying upon and there are no collateral or other
               representations, warranties, agreements or covenants made by any
               of the parties hereto which are not contained herein.

        (f)    Further Assurances: Each of the parties hereto shall and will,
               from time to time and at all times hereafter upon every
               reasonable written request so to do, cause such meetings to be
               held, resolutions passed and by-laws enacted, exercise its vote
               and influence, make, do, execute and deliver, or cause to be
               made, done, executed and delivered, all such further papers,
               acts, deeds, assurances and things as may be necessary or
               desirable in the opinion of any party or counsel for any party,
               acting reasonably, for implementing and carrying out more
               effectually the true intent and meaning of this Agreement
               including, without limitation, to perfect or better perfect the
               security interests, mortgages and charges of the Secured Party
               in the Shares or any part thereof.

        (g)    Severability: In the event that any covenant or provision
               contained in this Agreement is held to be invalid, illegal or
               unenforceable in whole or in part, the validity, legality and
               enforceability of the remaining covenants and provisions shall
               not be affected or impaired thereby and all such remaining
               covenants and provisions shall continue in full force and effect.
               All covenants and provisions hereof are declared to be separate
               and distinct covenants or provisions, as the case may be.

        (h)    Headings: All headings and titles in this Agreement are for
               convenience of reference only and shall not affect the
               interpretation of the terms hereof.

        (i)    Gender, etc.: In construing this Agreement, all words and
               personal pronouns relating thereto shall be read and construed as
               the number and gender of the party or parties referred to in each
               case require, and the verb agreeing therewith shall be construed
               as agreeing with the required word and pronoun. Words such as
               "hereunder", "hereto", "hereof", "herein", and other words
               commencing with "here", shall unless the context clearly
               indicates the contrary, refer to the whole of this Agreement and
               not to any particular paragraph or part thereof.

        (j)    Binding Effect: All rights of the Secured Party hereunder shall
               enure to the benefit of its successors and assigns and all
               obligations of the Pledgor hereunder shall bind the Pledgor, its
               successors and assigns. Each reference to the Secured Party in
               this Agreement shall be deemed to include a reference to the
               Secured

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               Party, its successors and assigns and each reference to the
               Pledgor in this Agreement shall be deemed to include a reference
               to the Pledgor, its successors and assigns.

        (k)    Re Liabilities: If more than one person executes this Agreement
               as Pledgor, their obligations under this Agreement shall be joint
               and several.

        (l)    Governing Law: This Agreement shall be governed by, and
               interpreted and enforced in accordance with, the laws in force in
               the Province of Ontario and the laws of Canada applicable therein
               and shall be treated in all respects as an Ontario contract. Each
               party irrevocably submits to the non-exclusive jurisdiction of
               the courts of Ontario with respect to any matter arising
               hereunder or related hereto.

        (m)    Notice: Subject to the specific requirements of the PPSA, any
               demand, notice, request, consent, approval or other
               communication required or permitted to be made or given by any
               party hereto to any other party hereto in connection with this
               Agreement shall be in writing and may be made or given by
               personal delivery to such party or by transmittal by facsimile
               transmission or similar electronic means of communication which
               produces a paper record to such party at the fax number noted on
               page 1 of this Agreement or, if a corporation, to a director
               thereof or, if postal services and deliveries are then
               operating, by mailing the same by prepaid registered post to
               such party at its address noted on page 1 of this Agreement or
               at such other address which the party to whom such communication
               is being given may have designated by notice given in accordance
               with the provisions of this paragraph. Any communication so
               delivered or transmitted by electronic means of communication
               shall be deemed to have been given and received on the day of
               delivery or transmittal, if a business day, or if not a business
               day, on the business day next following the day of delivery or
               transmittal, and any communication so mailed shall be deemed to
               have been given and received on the fourth business day
               following and exclusive of the date of mailing. In this
               paragraph, "business day" means any day except a Saturday,
               Sunday or statutory holiday in the Province of Ontario. Either
               party may give notice in writing to the other in the manner
               provided in this paragraph of any change of fax number or
               address of the party giving such notice, and from and after the
               giving of such notice, the fax number or address therein
               specified shall be deemed to be the fax number or address of
               such party for purposes of this paragraph.

        (n)    Failure to Perfect: The Secured Party shall not be liable or
               accountable for any negligence or failure to perfect its security
               interests, mortgages and charges granted herein, seize, collect,
               realize, sell or obtain payment for the Shares or any part
               thereof and shall not be bound to institute proceedings for the
               purpose of seizing, collecting, realizing or obtaining possession
               or payment of the same for the purpose of preserving the rights
               of the Pledgor, the Corporation or any other person, firm or
               corporation in respect of same.

        (o)    No Amendment: This Agreement may not be amended, altered or
               qualified except by a memorandum in writing signed by all of the
               parties hereto and any amendment, alteration or qualification
               hereof shall be null and void and shall not be binding upon any
               party who has not signed such memorandum.

        (p)    Power of Attorney: The Secured Party, or any receiver appointed
               hereunder is hereby irrevocably constituted as the duly
               appointed lawful attorney of the Pledgor

<PAGE>   13

                                           - 13 -

               with full power to make, do, execute and deliver all such
               documents, assignments, acts, matters or things on behalf of the
               Pledgor with the right to use the name of the Pledgor whenever
               and wherever it may be deemed necessary or expedient. The power
               of attorney hereby granted is a power coupled with an interest
               and shall survive the dissolution, liquidation, winding-up or
               other termination of existence of the Pledgor. The Pledgor
               agrees to and does hereby ratify all acts done and all documents
               executed and delivered by the Secured Party pursuant to the
               power of attorney hereby granted and the Pledgor hereby confirms
               that the Secured Party and all third parties are entitled to
               rely upon such ratification.

        (q)    Time of Essence: Time shall be strictly of the essence of this
               Agreement and of every part thereof and no extension or variation
               of this Agreement shall operate as a waiver of this provision.

        (r)    Pledgor's Receipt: The Pledgor hereby acknowledges receipt of a
               fully signed copy of this Agreement.

        (s)    Independent Legal Advice: The Pledgor acknowledges having been
               advised to obtain independent legal representation or advice, in
               its discretion, prior to executing this Agreement and thereby
               becoming bound by its terms and subject to its obligations. This
               Agreement shall become effective when it is signed by the
               Pledgor.

        (t)    Meaning of Shares: The term "SHARES" as used herein shall include
               Substituted or Additional Shares.

        IN WITNESS WHEREOF the Pledgor and the Secured Party have executed this
Agreement and agree to be bound thereby as of the Effective Date set out above.

THE CORPORATE SEAL of 1423280                )
ONTARIO INC. was hereunto affixed in the     )
presence of:                                 )
                                             )    c/s
/s/ COREY E. FISCHER                         )
---------------------------------------------)
Authorized Signatory                         )
                                             )
                                             )
---------------------------------------------)
Authorized Signatory                         )

<PAGE>   14

                                     - 14 -

FOOTHILL CAPITAL CORPORATION by              )
its authorized signatories:                  )
                                             )
                                             )
/s/ WILLIAM SHIAO                            )
---------------------------------------------)
Authorized Signatory                         )
                                             )
                                             )
---------------------------------------------)
Authorized Signatory                         )
                                             )

THE CORPORATE SEAL of                        )
FUTURELINK CANADA CORP. was                  )
hereunto affixed in the presence of:         )
                                             )    c/s
                                             )
/s/ COREY E. FISCHER                         )
---------------------------------------------)
Authorized Signatory                         )
                                             )
                                             )
---------------------------------------------)
Authorized Signatory                         )

<PAGE>   15

                                    TRANSFER

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto Foothill Capital Corporation, 100 common shares in the capital of
FutureLink Canada Corp. (the "Corporation") and does hereby irrevocably
constitute and appoint the Secretary of the Corporation as attorney to transfer
or register the transfer of the said share on the books of the Corporation, with
full power of substitution in the premises.

               The undersigned has hereunto executed this transfer the 14 day
of December, 2000.

                                             1423280 ONTARIO INC.

                                             Per: /s/ COREY E. FISCHER
                                                 -------------------------------
                                                  AUTHORIZED SIGNING OFFICER<PAGE>   1

                                                                   EXHIBIT 10.71

                     HYPOTHEC ON MOVABLE PROPERTY (GENERAL)

   BETWEEN:    FUTURELINK CANADA CORP., a corporation continued under the laws
               of Ontario, having its chief executive office at 2 Gibbs Road, in
               the City of Toronto, Province of Ontario, M9B 6L6;
               (hereinafter referred to as the "GRANTOR")

   AND:        FOOTHILL CAPITAL CORPORATION, a California corporation, having a
               place of business at 2450 Colorado Avenue, Suite 3000 West, in
               the City of Santa Monica, State of California, USA, 90404;
               (hereinafter referred to as the "CREDITOR")

WHEREAS the GRANTOR and the BORROWER (as hereinafter defined) have entered into
credit arrangements pursuant to the CREDIT AGREEMENT (as hereinafter defined)
whereby the GRANTOR is or may hereafter become indebted to the CREDITOR by
virtue of its guarantee of the obligations of the BORROWER under the CREDIT
AGREEMENT and the GUARANTEE (as hereinafter defined);

WHEREAS the GRANTOR carries on an enterprise;

WHEREAS the CREDITOR requires security for the payment of any and all
indebtedness and obligations due from time to time by the GRANTOR to the
CREDITOR and the GRANTOR has agreed, as security for payment of such
indebtedness, to hypothecate in favour of the CREDITOR the "CHARGED PROPERTY"
(as hereinafter defined);

THE PARTIES AGREE AS FOLLOWS:

1.      PREAMBLE

1.1     The preamble forms part hereof as if recited at length herein.

2.      DEFINITIONS

2.1     Unless the context otherwise requires, the following expressions will
have the respective meanings hereinafter set forth:

2.1.1   "ADVERSE ENCUMBRANCE" means any hypothec, encumbrance, charge, right or
        prior claim (other than the PERMITTED CHARGES) whether ranking prior to,
        equal with or after the security hereby created in favour of the
        CREDITOR, or any seizure or attachment, which affects the whole or any
        portion of the CHARGED PROPERTY;

2.1.2   "BORROWER" means collectively, FutureLink Corp. and each of its
        subsidiaries listed as borrowers pursuant to the terms of the CREDIT
        AGREEMENT;

2.1.3   "CHARGED PROPERTY" has the meaning attributed to it in Section 3;

2.1.4   "CLAIMS" means, collectively, all accounts receivable, book accounts,
        book debts, debts, claims, monies, rentals, revenues, incomes, loans
        receivable, demands, rebates, refunds, amounts owing by or claimable
        from the crown, state or government or any departments, agents or
        agencies thereof and choses in action which now are or which may at any
        time hereafter be due or owing to or owned by the GRANTOR or in which
        the GRANTOR now or hereafter has any other interest and all security
        interests, hypothecs, assignments,

<PAGE>   2
                                     - 2 -

        guarantees, bills of exchange, notes, negotiable instruments, contracts,
        invoices, books of account, letters of credit and other documents and
        rights now held or owned or which may be hereafter held or owned by the
        GRANTOR or any third party on behalf of the GRANTOR in respect of any of
        the foregoing and all rights of an unpaid vendor, including rights to
        merchandise returned, repossessed or recovered and including any credit
        balances, term deposits or other indebtedness due to the GRANTOR by the
        CREDITOR (without prejudice to the CREDITOR's right of compensation or
        set-off);

2.1.5   "CREDIT AGREEMENT" means the Loan and Security Agreement dated November
        16, 2000 executed among the BORROWER and the CREDITOR, as same may be
        amended, replaced, supplemented or renewed from time to time, pursuant
        to which the CREDITOR has extended certain credit facilities to the
        BORROWER;

2.1.6   "DOCUMENTS OF TITLE" means, collectively, all documents of title,
        whether negotiable or non-negotiable including, without limitation, all
        warehouse receipts and bills of lading in which the GRANTOR now or
        hereafter has an interest;

2.1.7   "EQUIPMENT" means, collectively, all machinery, equipment, furniture,
        fixtures, materials, supplies, appliances, dyes, molds, tanks, vehicles,
        furnaces, boilers, motors, engines, accessories and tools now owned or
        hereafter acquired by the GRANTOR whether or not the same be affixed to
        any immoveable property or used upon or in connection therewith,
        together with all present and future improvements, appurtenances and
        accessories thereto;

2.1.8   "GUARANTEE" means the Guarantee and Postponement of claim dated December
        14, 2000 executed among the GRANTOR and the CREDITOR, as same may be
        amended, replaced, supplemented or renewed from time to time, pursuant
        to which the GRANTOR has jointly and severally (solidarily) guaranteed
        the performance of all of the BORROWER'S obligations under the CREDIT
        AGREEMENT;

2.1.9   "HYPOTHEC AMOUNT" means the sum of FIFTY MILLION CANADIAN DOLLARS (Cdn.
        $50,000,000);

2.1.10  "INDEBTEDNESS" means, any and all indebtedness from time to time of the
        GRANTOR to the CREDITOR arising from or under the GUARANTEE and the
        CREDIT AGREEMENT, including, without limitation, any and all amounts
        already owing and which may be owed to the CREDITOR by the GRANTOR and
        any indebtedness of any nature whatsoever, present and future, direct
        and indirect, absolute and contingent, matured or not, at any time owing
        or to become owing by the GRANTOR to the CREDITOR, and whether the
        GRANTOR be bound alone or with another and whether as principal or
        surety, and any and all interest accrued thereon and all costs incurred
        by or on behalf of the CREDITOR for recovering or conserving the CHARGED
        PROPERTY, the whole in connection with the GUARANTEE and the CREDIT
        AGREEMENT;

2.1.11  "INSURANCE" means, collectively, all insurance policies relating
        directly or indirectly to any of the CHARGED PROPERTY or any part
        thereof and all rights and claims under all policies of insurance of
        whatever nature including, without limitation, under life insurance
        policies and under insurance against loss or damage;

2.1.12  "INTANGIBLE PROPERTY" means, collectively, all incorporeal property now
        owned or hereafter acquired by the GRANTOR or its interest therein
        including, without limitation, all patents and patents pending,
        registered and unregistered trade marks, trade or brand names, service
        marks, copyrights, industrial designs, formulae, processes, trade
        secrets, goodwill, contractual rights, licences and permits;

2.1.13 "INTEREST RATE" means TWENTY-FIVE percent (25%) per annum;

<PAGE>   3
                                     - 3 -

2.1.14  "INVENTORY" means, collectively, all property in stock and inventory now
        owned and hereafter acquired by the GRANTOR including, without
        limitation, all raw materials, goods in process, finished goods, goods
        in transit and all packaging and shipping materials and all materials
        and merchandise procured for the manufacture or production thereof and
        all goods, wares and merchandise held for sale, lease or resale or
        furnished or to be furnished under contracts for service or used or
        consumed in the business of the GRANTOR;

2.1.15  "MONIES" means, collectively, all monies, cash, foreign currencies and
        credits in which the GRANTOR now or hereafter has an interest;

2.1.16  "PERMITTED CHARGES" means, collectively, the following

        0.0.0.1  security presently existing or hereafter created in favour or
                 for the benefit of the CREDITOR;

        2.1.16.1 the security listed in Schedule "A" hereto;

        2.1.16.2 inchoate or statutory liens for taxes, assessments or
                 governmental charges which have not been assessed and are not
                 delinquent, or if assessed, are being contested in good faith
                 by appropriate proceedings and provided that in any such case,
                 the effect of such proceedings is to stay any enforcement or
                 the CREDITOR has been provided with security satisfactory to
                 it in an amount sufficient to satisfy such liens;

        0.0.0.2  minor title defects or irregularities not in the aggregate
                 materially and adversely affecting the use of the property to
                 which they relate;

        0.0.0.3  other encumbrances which are, from time to time, expressly
                 permitted in writing by the CREDITOR, including those
                 permitted pursuant to the terms of the CREDITOR AGREEMENT;

2.1.17  "PROCEEDS" means, collectively, all property in any form derived
        directly or indirectly from any dealings with any of the CHARGED
        PROPERTY;

2.1.18  "RECORDS" means, collectively, firmware and software and all computer
        and other records and data, whether in hard copy or otherwise,
        pertaining to any of the CHARGED PROPERTY and the equipment containing
        same;

2.1.19  "SECURITIES" means, collectively, all shares, stocks, warrants, bonds,
        debentures, debenture stock, and other securities in which the GRANTOR
        now or hereafter has an interest;

<PAGE>   4
                                     - 4 -

3.      HYPOTHEC AND ADDITIONAL HYPOTHEC

3.1     HYPOTHEC

        As security for the payment to the CREDITOR of the INDEBTEDNESS and the
fulfilment of the obligations of the GRANTOR hereunder, the GRANTOR hereby
hypothecates and grants a security interest in, to and in favour of the CREDITOR
to the extent of the HYPOTHEC AMOUNT with interest thereon at the INTEREST RATE,
both before and after maturity, demand, default and judgment, the following
property of the GRANTOR, wherever situate, and all renewals thereof, accretions
thereto, replacements thereof, substitutions therefor as well as everything
united thereto by accession (herein collectively referred to as the "CHARGED
PROPERTY"):

3.1.1   as a universality, the CLAIMS;

3.1.2   as a universality, the DOCUMENTS OF TITLE;

3.1.3   as a universality, the EQUIPMENT;

3.1.4   as a universality, the INSURANCE;

3.1.5   as a universality, the INTANGIBLE PROPERTY;

3.1.6   as a universality, the INVENTORY;

3.1.7   as a universality, the MONIES;

3.1.8   as a universality, the PROCEEDS;

3.1.9   as a universality, the RECORDS;

3.1.10  as a universality, the SECURITIES;

3.1.11  as a universality, all other corporeal and incorporeal moveable
        property, assets, rights and undertakings of any nature and kind, now
        owned or hereafter acquired by the GRANTOR.

3.2     ADDITIONAL HYPOTHEC

        To further secure the performance and observance of all the GRANTOR's
obligations hereunder, the GRANTOR hereby hypothecates and grants a security
interest in the CHARGED PROPERTY in favour of the CREDITOR to the extent of a
further amount equal to twenty-percent (20%) of the HYPOTHEC AMOUNT.

3.3     DEALINGS WITH CHARGED PROPERTY

        Notwithstanding the hypothecation of the CHARGED PROPERTY provided
herein:

3.3.1   subject to Section 9, the CREDITOR authorizes the GRANTOR to collect the
        CLAIMS as they fall due;

3.3.2   until such time as the security created hereunder has become
        enforceable, nothing will prevent the GRANTOR from selling, disposing of
        or dealing with any of the INVENTORY in the ordinary course of its
        business;

3.3.3   until such time as the security created hereunder has become
        enforceable, the GRANTOR may at any time without the consent of the
        CREDITOR, sell or otherwise dispose of EQUIPMENT which is not necessary
        to or useful in connection with the enterprise of the

<PAGE>   5
                                     - 5 -

        GRANTOR or which has become worn out or damaged or otherwise unsuitable
        for its purpose, of a value not exceeding TEN THOUSAND DOLLARS
        ($10,000.00) per annum;

the whole subject to the hypothec of the CREDITOR on any proceeds resulting from
the disposition of any INVENTORY or EQUIPMENT and on any rights to such
INVENTORY or EQUIPMENT which are retained or reacquired at any time by the
GRANTOR.

4.      INSURANCE

4.1     As additional security for the payment of the INDEBTEDNESS and the
performance of the GRANTOR's obligations hereunder, the GRANTOR will insure and
keep insured the CHARGED PROPERTY against loss or damage by fire and such other
perils as are customarily insured by those carrying on an enterprise similar to
that of the GRANTOR or as may from time to time be specified by the CREDITOR,
for their full insurable value, by means of a policy or policies each with loss
payable to the CREDITOR and containing a mortgage clause in form and terms
approved by the CREDITOR and issued by an insurer or insurers approved by the
CREDITOR. The GRANTOR obliges itself to effect such new insurance as the
CREDITOR may direct should the insurer(s) cease to have the approval of the
CREDITOR. At least ten (10) days before the expiry or cancellation of any policy
the GRANTOR will deliver to the CREDITOR evidence of renewal or replacement
thereof.

4.2     The GRANTOR will immediately notify the CREDITOR of any loss of or
damage to any of the CHARGED PROPERTY which are the subject of a claim made to
any insurer of the CHARGED PROPERTY.

4.3     In the event that any insurance proceeds are paid to the CREDITOR
following the occurrence of an EVENT OF DEFAULT, it may, at its option, apply
such proceeds in the payment or reduction of the INDEBTEDNESS, whether or not
exigible, and interest thereon, interest on interest and all other sums owing to
the CREDITOR by the GRANTOR or, at the option of the CREDITOR, advance such
proceeds to the GRANTOR, in such manner as the CREDITOR deems advisable for the
purpose of replacing, repairing or restoring the CHARGED PROPERTY.

5.      COVENANTS, REPRESENTATIONS AND WARRANTIES

5.1     The GRANTOR covenants, represents and warrants that as of the date of
this agreement and at all times during which this agreement is in effect:

5.1.1   the GRANTOR will pay to the CREDITOR the INDEBTEDNESS without the
        necessity of demand as and when it becomes due and payable or on demand,
        if payable on a demand basis, at the office of the CREDITOR indicated on
        the signature page of this agreement, or at such other place as may from
        time to time be designated in writing by the CREDITOR;

5.1.2   the GRANTOR will pay all reasonable fees and expenses, legal and
        notarial, and costs of registration, incurred by or on behalf of the
        CREDITOR in respect of this agreement and all amendments thereto and
        renewals and discharges thereof, and will pay all appraisal fees
        relating to the CHARGED PROPERTY as well as all costs, disbursements and
        expenses in connection with the enforcement of any of the CREDITOR's
        rights hereunder and in connection with the recovery or conservation of
        the CHARGED PROPERTY, which costs, disbursements and expenses include,
        without limitation, the following:

        0.0.0.1 all reasonable costs and expenses of maintenance, operation,
                administration, conservation and/or collection of the CHARGED
                PROPERTY;

        5.1.2.1 reasonable compensation for any person or firm engaged, employed
                or consulted by or on behalf of the CREDITOR who acts in
                connection with the maintenance, operation, administration,
                conservation and/or collection of any of the CHARGED PROPERTY;

<PAGE>   6
                                     - 6 -

5.1.3   the GRANTOR will maintain the CHARGED PROPERTY in good repair and
        prevent any use thereof which might diminish the value thereof or the
        CREDITOR's hypothec thereon, and from time to time at the request of the
        CREDITOR give the CREDITOR's officers, employees and agents reasonable
        access thereto for the purpose of inspection;

5.1.4   the GRANTOR has and will have good and marketable title to the CHARGED
        PROPERTY free and clear of all ADVERSE ENCUMBRANCES;

5.1.5   the CHARGED PROPERTY is and will be kept only at the locations indicated
        in Schedule "B" hereto and will not be removed or disposed of without
        the prior written consent of the CREDITOR, except for dispositions of
        INVENTORY in the ordinary course of the GRANTOR's business;

5.1.6   the GRANTOR will, at all times, duly and punctually pay and discharge
        the wages, salaries and other remuneration of all persons employed by
        the GRANTOR in connection with the enterprise of the GRANTOR and will,
        from time to time, if so requested by the CREDITOR, obtain such waivers
        of liens for salaries, wages or other remuneration as may be necessary
        to ensure that the CREDITOR owns the CHARGED PROPERTY free and clear of
        all encumbrances;

5.1.7   the GRANTOR will at all times do or cause to be done all things
        necessary or proper to preserve and keep in full force and effect its
        corporate existence and its ability to carry on its business;

5.1.8   subject to the consent of certain landlords of the GRANTOR which the
        GRANTOR has undertaken to obtain, neither the execution and delivery of
        this agreement, nor the granting of the hypothecs in respect of the
        CHARGED PROPERTY, constitutes or will constitute a violation or breach
        of the documents of incorporation or the by-laws of the GRANTOR or of
        any provision of any contract or other instrument to which the GRANTOR
        is a party or of any provision of law to which the GRANTOR is or may be
        subject;

5.1.9   the GRANTOR will pay or cause to be paid as and when due and payable all
        taxes, rates, charges, levies and assessments, ordinary and
        extraordinary, which may be assessed on or payable by the GRANTOR or in
        respect of any of the CHARGED PROPERTY;

5.1.10  the GRANTOR carries on and will carry on the enterprise referred to in
        Schedule "B" and all of the CHARGED PROPERTY is and will be used for the
        operation of such enterprise;

5.1.11  none of the CHARGED PROPERTY is or will be property which is exempt from
        seizure;

5.1.12  none of the CHARGED PROPERTY is property which furnishes a main
        residence or which is used by and is necessary for the life of a
        household;

5.1.13  the GRANTOR will perform, observe and comply with all obligations,
        terms, conditions and covenants relating to any financing arrangement or
        agreement entered into with the CREDITOR;

5.1.14  the GRANTOR will immediately notify the CREDITOR in the event that any
        shares or other securities are received by or issued to it on the
        purchase, redemption, conversion or cancellation or any other
        transformation of any of the SECURITIES;

5.1.15  the GRANTOR will operate its business and maintain the CHARGED PROPERTY
        and all other property owned from time to time by it in compliance with
        the requirements of applicable environmental laws and will not bring
        thereon or use any air contaminant, pollutant, toxic substances or
        hazardous waste except in strict compliance with all environmental laws.
        The GRANTOR will promptly forward to the CREDITOR copies of all

<PAGE>   7
                                     - 7 -

        orders, notices, permits, applications, complaints and other
        communications and reports relating to its breach or potential breach of
        any environmental laws and will properly and diligently commence and
        complete all operations and other matters necessary in order to complete
        the remedy or rectify any such breach;

5.1.16  subject to the PERMITTED CHARGES, the GRANTOR will not grant a hypothec
        on any of the CHARGED PROPERTY in favour of any other party without the
        prior written consent of the CREDITOR, which consent will be subject to
        the beneficiary of the hypothec entering into satisfactory arrangements
        with the CREDITOR including, without limiting the generality of the
        foregoing, a provision in such hypothec that upon sale of any of the
        CHARGED PROPERTY by or for the account of the CREDITOR, such property
        will be sold free of any hypothecs created therein;

5.1.17  at the demand of the CREDITOR, the GRANTOR will from time to time
        prepare and deliver to the CREDITOR all deeds, documents, vouchers,
        promissory notes, bills of exchange, notes, negotiable instruments,
        contracts, invoices, books of account, letters of credit, security
        agreements, hypothecs, assignments, guarantees and other documents and
        rights relating to any of the CLAIMS;

5.1.18  the GRANTOR will keep proper books of account in accordance with sound
        accounting practice and will furnish to the CREDITOR such financial and
        other information, statements and reports relating to the GRANTOR, the
        enterprise carried on by it and the CHARGED PROPERTY as the CREDITOR may
        from time to time require. The GRANTOR will permit the CREDITOR, its
        officers, employees and authorized representatives free and reasonable
        access to its premises, the enterprise carried on by it, the CHARGED
        PROPERTY, its computer, including hardware, software and firmware and
        the financial and computer and other data, records and reports relating
        to the GRANTOR, its enterprise and the CHARGED PROPERTY and allow them
        to make copies thereof and to take extracts therefrom.

6.      CREDITOR'S RIGHT TO MAKE PAYMENTS

6.1     If the GRANTOR fails to pay when due any sum payable under this
agreement or fails to perform any of its obligations hereunder, whether or not
the CREDITOR has invoked any EVENT OF DEFAULT, the CREDITOR may do so on the
GRANTOR's behalf (but will not be obliged to), without notice to the GRANTOR,
and the GRANTOR will pay to the CREDITOR, on demand, all sums so paid by the
CREDITOR together with interest thereon at the rate of FIFTEEN percent (15%) per
annum. If, for any reason, the CREDITOR's security or rights hereunder are
diminished, the CREDITOR may do such things and make such expenditures as are
desirable or necessary to preserve its security or rights, without notice to the
GRANTOR, in which event the GRANTOR will pay to the CREDITOR, on demand, all
sums so paid by the CREDITOR, together with interest thereon at the INTEREST
RATE, the whole without prejudice to any other recourse of the CREDITOR
hereunder or by law.

7.      EVENTS OF DEFAULT

7.1     Each of the following events constitutes an "EVENT OF DEFAULT"
hereunder:

7.1.1   any Event of Default as such term is defined under the CREDIT AGREEMENT;

7.1.2   any event of default or breach of any obligation of the GRANTOR under
        the GUARANTEE;

7.1.3   failure to pay to the CREDITOR the INDEBTEDNESS or any part thereof
        without the necessity of demand as and when such sum becomes due and
        payable or on demand, if payable on a demand basis, subject to notice
        requirements as provided for under the CREDIT AGREEMENT or at law;

<PAGE>   8
                                     - 8 -

7.1.4   if the GRANTOR fails to perform, observe or comply with any covenant,
        obligation, term or condition on its part to be performed, observed or
        complied with hereunder which does not specifically constitute an EVENT
        OF DEFAULT hereunder provided, however, that if the default is
        susceptible of being remedied, it remains outstanding for a period of
        more than ten (10) days after receipt by the GRANTOR of written notice
        specifying the default;

7.1.5   if any representation or warranty made by the GRANTOR in connection with
        this agreement is materially false or misleading;

7.1.6   if the GRANTOR fails to care for, maintain, protect or preserve any of
        the CHARGED PROPERTY and such failure diminishes the value of the
        CHARGED PROPERTY;

7.1.7   if the GRANTOR does not, within ten (10) days of an ADVERSE ENCUMBRANCE
        first affecting the whole or any portion of the CHARGED PROPERTY either:

        0.0.0.1 cause the ADVERSE ENCUMBRANCE to be completely discharged and
                radiated from the CHARGED PROPERTY; or

        0.0.0.2 in good faith contest the ADVERSE ENCUMBRANCE and furnish to the
                CREDITOR complete security in form, substance and amount
                acceptable to the CREDITOR against all loss and damages which
                the CREDITOR might suffer by reason thereof;

7.1.7.1 if the whole or any portion of the CHARGED PROPERTY is sold in execution
        or satisfaction of the rights of any other party;

7.1.7.2 if the GRANTOR sells, transfers or disposes of or purports to sell,
        transfer or dispose of any of the CHARGED PROPERTY, except in the
        ordinary course of business or as expressly permitted hereunder;

7.1.7.3 if the GRANTOR makes an assignment for the benefit of its creditors,
        becomes insolvent, commits an act of bankruptcy, ceases or threatens to
        cease to do business as a going concern or seeks any arrangement or
        composition with its creditors or invokes, threatens to invoke or
        indicates its intention to invoke the benefit of any legislation
        governing insolvent debtors;

7.1.7.4 if any proceeding in bankruptcy, receivership, liquidation or insolvency
        is commenced in respect of the GRANTOR or in respect of any of its
        property or if any receiver or receiver manager takes possession of the
        undertaking or any substantial portion of the property of the GRANTOR or
        if any creditor enforces or gives notice of its intention to enforce or
        gives prior notice with respect to the exercise of any of its rights
        under any security granted to it by the GRANTOR, where such proceeding
        is still pending or such notice has not been radiated within ten (10)
        days of the institution of such proceeding or the receipt of such
        notice, respectively; or

7.1.7.5 if, in the reasonable opinion of the CREDITOR, acting in good faith,
        there has occurred a material adverse change in the financial or any
        other condition of the GRANTOR which is likely to result in the
        impairment of the GRANTOR's ability to repay the INDEBTEDNESS or of the
        recoverable value of the CHARGED PROPERTY or the CREDITOR's ability to
        realize thereupon.

8.      REMEDIES IN CASE OF DEFAULT

8.1     The occurrence of any one or more of the foregoing events, by the mere
lapse of time for performance and, unless expressly otherwise provided hereunder
or pursuant to the terms of the CREDIT AGREEMENT, without the necessity of any
notice or other proceeding, shall constitute an EVENT OF DEFAULT. Upon the
occurrence of any EVENT OF DEFAULT (and without prejudice

<PAGE>   9
                                     - 9 -

to the demand nature of any of the INDEBTEDNESS), the GRANTOR will lose the
benefit of any term for payment granted by the CREDITOR and all INDEBTEDNESS
will become immediately due and payable and the GRANTOR will, without the
necessity of demand or notice (other than as may be required by law) repay the
INDEBTEDNESS to the CREDITOR, failing which, in addition to all hypothecary
rights and other remedies and recourses presently or in the future available
under law:

8.1.1   the CREDITOR may immediately take proceedings for the recovery of all or
        any portion of the INDEBTEDNESS;

8.1.2   the GRANTOR will surrender and abandon the CHARGED PROPERTY, or the part
        thereof specified by the CREDITOR, to the CREDITOR or such person as may
        be designated by the CREDITOR, or will consent in writing to turn such
        property over to the CREDITOR or such person as may be designated by the
        CREDITOR at the time and place specified by the CREDITOR.

8.2     ADMINISTRATION AFTER SURRENDER

        In the event that the CREDITOR obtains the surrender of the whole or any
portion of the CHARGED PROPERTY and until such time as such CHARGED PROPERTY is
restored to the GRANTOR or, as regards any portion thereof, the CREDITOR has
concluded a recourse by way of taking in payment, sale by the CREDITOR, sale
under judicial authority or otherwise, or in the event that the CREDITOR
withdraws the GRANTOR's right to collect the CLAIMS, then, notwithstanding any
provision of law to the contrary which may apply as a result of the CREDITOR
having acquired or being deemed to have acquired simple, full or any other
administration of the whole or any portion of the CHARGED PROPERTY:

8.2.1   the CREDITOR will be entitled to generally delegate the whole or any
        part of the administration of any CHARGED PROPERTY (including without
        limitation, the exercise of all discretionary powers) to such person(s)
        as the CREDITOR may designate or re-designate in the CREDITOR's sole
        discretion (any such person being herein referred to as an
        "ADMINISTRATOR");

8.2.2   the CREDITOR and any ADMINISTRATOR will be entitled to reimbursement of
        all reasonable costs and expenses (including, without limitation, all
        costs, expenses and reasonable fees incurred by any attorneys or other
        persons engaged by the CREDITOR or the ADMINISTRATOR in order to assist
        in such administration or any matter pertaining thereto), as well as all
        reasonable fees of the CREDITOR and the ADMINISTRATOR incurred in such
        administration, all of which may be charged by the CREDITOR against any
        fruits, revenues or proceeds of alienation of the whole or any portion
        of the CHARGED PROPERTY;

8.2.3   the CREDITOR or the ADMINISTRATOR may alienate any CHARGED PROPERTY
        which by its nature is destined for alienation in the course of the
        operation of the enterprise of the GRANTOR, by onerous title in such
        manner as it, in its sole discretion, but acting reasonably, deems
        appropriate, the whole notwithstanding that it may have only simple
        administration of the CHARGED PROPERTY;

8.2.4   the CREDITOR will be entitled to acquire the whole or any portion of any
        CHARGED PROPERTY alienated by onerous title in the course of any
        administration thereof;

8.2.5   in the event that the CREDITOR or the ADMINISTRATOR acquires full
        administration of any CHARGED PROPERTY, neither the CREDITOR nor the
        ADMINISTRATOR will be under any obligation whatsoever to make such
        CHARGED PROPERTY productive, increase such CHARGED PROPERTY or the value
        thereof or appropriate such CHARGED PROPERTY to any purpose other than
        payment of the INDEBTEDNESS;

<PAGE>   10
                                     - 10 -

8.2.6   the CREDITOR and the ADMINISTRATOR will be entitled to use for their own
        benefits any information which either of them may obtain by reason of
        their administration of the whole or any portion of the CHARGED
        PROPERTY;

8.2.7   the CREDITOR and the ADMINISTRATOR will be entitled, acting reasonably
        but whether or not for value, to renounce to any right affecting,
        benefiting, pertaining to and/or forming part of any CHARGED PROPERTY
        administered by either of them;

8.2.8   neither the CREDITOR nor the ADMINISTRATOR will be obliged, in any
        manner whatsoever, to prepare any inventory of any CHARGED PROPERTY,
        insure any CHARGED PROPERTY or give any security for any CHARGED
        PROPERTY or their administration thereof. Should the CREDITOR or the
        ADMINISTRATOR, in its discretion, insure the whole or any portion of any
        CHARGED PROPERTY, the costs and expenses of any insurance shall form
        part of the costs and expenses referred to in subparagraph 5.1.2 hereof;

8.2.9   the CREDITOR and the ADMINISTRATOR may, acting reasonably, change the
        destination of the whole or any portion of any CHARGED PROPERTY under
        their administration and will not be bound to continue the use or
        operation of any CHARGED PROPERTY under their administration which
        produces fruits or revenues;

8.2.10  notwithstanding any provisions of law to the contrary, the CREDITOR and
        the ADMINISTRATOR will only be obliged to render an account to the
        GRANTOR upon the written request of the GRANTOR and once the CREDITOR or
        ADMINISTRATOR has determined, to its satisfaction, the details of such
        account.

8.3     TAKING IN PAYMENT

        In the event that the CREDITOR exercises its right to become the
absolute owner of the CHARGED PROPERTY or any part thereof, the GRANTOR,
concurrently with surrender or at any time thereafter at the request of the
CREDITOR, will sign a voluntary Deed providing for the CREDITOR to take in
payment the CHARGED PROPERTY or any part thereof. All expenditures and
improvements made by any holder of the CHARGED PROPERTY and all payments made on
account of the INDEBTEDNESS and the accessories thereof will belong to the
CREDITOR without return or compensation. The CREDITOR will not be obliged to
compensate or indemnify the GRANTOR or any other person for any cause
whatsoever.

8.4     SALE BY THE CREDITOR

        In the event that the CREDITOR exercises its right to sell the whole or
any portion of the CHARGED PROPERTY, such CHARGED PROPERTY may be sold subject
to and upon such terms and conditions (including, without limitation, terms
extending credit) by way of one or more sales by private agreement, call for
tenders or public auction or combinations thereof as the CREDITOR or the
ADMINISTRATOR sees fit and the CREDITOR or the ADMINISTRATOR may, at any time,
change or substitute any method of sale for any other method of sale of such
CHARGED PROPERTY. Notwithstanding any provision of law to the contrary, in any
call for tenders, the CREDITOR or ADMINISTRATOR will not be obliged to accept
the highest offer or any offer and, in the event that no offer is accepted, may
proceed to sell such CHARGED PROPERTY by any other method.

8.5     SALE BY JUDICIAL AUTHORITY

        In the event that the CREDITOR exercises its right to have the whole or
any portion of the CHARGED PROPERTY sold by judicial authority, the GRANTOR
expressly agrees that the CREDITOR will not be required to obtain or present to
the Court any appraisals of such CHARGED PROPERTY and that such CHARGED PROPERTY
may be sold without any upset price therefor.

<PAGE>   11
                                     - 11 -

9.      CLAIMS

9.1     The CREDITOR may, at any time following the occurrence of an EVENT OF
DEFAULT, withdraw the authorization of the GRANTOR to collect the CLAIMS as they
fall due and, thereafter, the following will apply:

9.1.1   the CREDITOR will be the only party authorized and entitled to collect,
        dispose of and deal with the CLAIMS;

9.1.2   the CREDITOR will have the right to collect, dispose of and deal with
        the claims as it may deem expedient including, without limiting the
        generality of the foregoing, to demand, sue for, enforce, recover and
        receive payment of the CLAIMS and to compound, compromise, grant
        extensions, take and give up securities, accept compositions and grant
        releases and discharges with respect thereto, the whole without notice
        to the GRANTOR and without any liability for any loss resulting
        therefrom;

9.1.3   actions to enforce rights with respect to the CLAIMS may be instituted
        by the CREDITOR, at its discretion, in its own name, in the name of the
        GRANTOR, or in the name of the CREDITOR and the GRANTOR jointly;

9.1.4   the CREDITOR will not be obliged to inform the GRANTOR of any
        irregularity in the payment of any of the CLAIMS.

9.2     All amounts collected or received by the GRANTOR in respect of the
CLAIMS (whether prior to or after the CREDITOR has withdrawn the authorization
of the GRANTOR to collect the CLAIMS) will be deemed to have been collected or
received by the GRANTOR as mandatary of the CREDITOR and will be deposited into
such bank accounts as are acceptable from time to time to the CREDITOR. If at
any time the CREDITOR so declares and at all times after the CREDITOR has
withdrawn the right of the GRANTOR to collect the CLAIMS, all amounts collected
or received by the GRANTOR in respect of the CLAIMS will be received by the
GRANTOR in trust for the CREDITOR and will be remitted to the CREDITOR in
identical form as received.

10.     APPLICATION AND IMPUTATION OF PROCEEDS

10.1    Notwithstanding any provisions of law to the contrary, the proceeds of
enforcement of any rights of the CREDITOR with respect to the CHARGED PROPERTY,
including, without limitation, proceeds of any sale of the CHARGED PROPERTY by
the CREDITOR and collections of any CLAIMS, will be applied as follows:

10.1.1  to the reasonable costs and expenses incurred by or on behalf of the
        CREDITOR in connection with exercising the rights of the CREDITOR;

10.1.2  to the payment of any claims ranking in priority to the rights of the
        CREDITOR in respect of the CHARGED PROPERTY;

10.1.3  to the CREDITOR in reduction of the INDEBTEDNESS, subject to its right
        of imputation as provided herein.

10.2    The CREDITOR shall have the right to impute any amounts or proceeds
received by it from or for the account of the GRANTOR, whether pursuant to the
terms hereof or as a result of a judicial or other sale, or as an inducement to
grant mainlevee or discharge hereof or otherwise, against any portion of the
INDEBTEDNESS which it, in its sole discretion, determines and from time to time
to vary such determination, the whole notwithstanding any pretended contrary
imputation by the GRANTOR or by any other party.

11.     REMEDIES CUMULATIVE

<PAGE>   12
                                     - 12 -

11.1    The different recourses of the CREDITOR hereunder are cumulative and not
alternative. The rights and remedies of the CREDITOR hereunder are in addition
to every other right and remedy now or hereafter existing in favour of the
CREDITOR, whether by law or otherwise.

12.     WAIVERS

12.1    No delay or failure on the part of the CREDITOR in exercising any right
or remedy hereunder shall affect such right or remedy, nor shall any single or
partial exercise thereof preclude any further exercise thereof or the exercise
of any other right or remedy. Any waiver by the CREDITOR of any of its rights or
remedies hereunder will be valid only if express and in writing. No waiver shall
be deemed to be or constitute a waiver of any other rights or remedies of the
CREDITOR. In no event will the CREDITOR's acceptance, after the full payment of
the INDEBTEDNESS may have become due and payable, of any partial payment, be
deemed to alter or affect the CREDITOR's rights with respect to any subsequent
payment or default thereon. Moreover, should the CREDITOR grant or tolerate any
extension or delay for payment or performance of any obligations of the GRANTOR,
such extension, delay, indulgence or tolerance will not be deemed an
acquiescence by the CREDITOR in such default or waiver of any of the CREDITOR's
rights and remedies hereunder or in respect of any future default.

13.     NATURE OF INDEBTEDNESS AND SECURITY

13.1    Nothing contained in this agreement will be deemed to derogate from or
alter the demand nature of any of the INDEBTEDNESS, except to the extent that
the CREDITOR has expressly and by separate written instrument granted a term for
payment.

13.2    The security hereby granted secures and will continue to secure the
INDEBTEDNESS on a continuing and fluctuating basis and is and will be valid
notwithstanding that the whole or any portion of the prestations in
consideration of which the GRANTOR has undertaken its obligations towards the
CREDITOR have not yet been received and notwithstanding that the whole or any
portion of the INDEBTEDNESS may not yet exist.

13.3    The security hereby granted will remain in full force and effect for the
full HYPOTHEC AMOUNT until such time as an express written discharge is executed
by the CREDITOR and delivered to the GRANTOR. The hypothecs, security and rights
hereby created in favour of the CREDITOR will not be extinguished, reduced,
novated or otherwise affected by any payments made to or amounts received by the
CREDITOR, directly or indirectly, from the GRANTOR or any other party or as a
result of any insurance indemnities arising from loss or damage to any of the
CHARGED PROPERTY or by reason of the collection of any CLAIMS.

13.4    Should the INDEBTEDNESS at any time be fully extinguished without an
express discharge of the security created hereunder having been granted, and
should new INDEBTEDNESS arise, the security created hereunder will secure the
new INDEBTEDNESS in the same manner and to the same extent as if there had never
occurred an extinction of the old INDEBTEDNESS and the GRANTOR is and will be
obligated under the provisions hereof. The GRANTOR will be deemed to have
obligated itself for the new INDEBTEDNESS pursuant to the provisions hereof and
the security herein created will secure such new INDEBTEDNESS.

14.     NATURE OF OBLIGATIONS

14.1    Every obligation of the GRANTOR hereunder is and will remain indivisible
and the performance thereof in its entirety may be claimed from each of the
heirs, legatees, liquidators of any succession, trustees or legal
representatives of the GRANTOR.

14.2    If there be more than one GRANTOR hereunder, all of the obligations of
the GRANTOR hereunder will be and remain solidary obligations of such persons,
each waiving the benefits of

<PAGE>   13
                                     - 13 -

division and discussion, such that each of them may be compelled separately to
perform all of the obligations of the GRANTOR.

15.     OTHER SECURITY

15.1    The security created hereunder is in addition to and not in substitution
for nor deemed to be substituted by any other security now or hereafter held by
or for the benefit of the CREDITOR and shall not be diminished or novated or
otherwise affected by any other security or any promissory note or other
evidence of indebtedness which the CREDITOR or any party for the benefit of the
CREDITOR may have or obtain from the GRANTOR or any other person, nor shall any
other security or note or evidence of indebtedness be diminished or novated or
otherwise affected hereby.

16.     ELECTION OF DOMICILE

16.1    Any notice to or demand upon the GRANTOR shall be given or made at the
ordinary place of business of the GRANTOR or at the address in the judicial
district referred to on the signature page of this agreement, or at the address
of such new place of business of which the GRANTOR shall have subsequently
notified the CREDITOR in writing. However, if the CREDITOR is unable to locate
the GRANTOR at such address, then any such notice or demand may be served upon
the GRANTOR at the Office of the Clerk of the Superior Court, District of
Montreal at which office in such event the GRANTOR elects domicile for the
purpose of this agreement.

1.1     17. NOTICE

17.1    Any notice, request or other communication hereunder to any party hereto
in connection with this agreement shall be in writing and be well and
sufficiently given if sent by pre-paid, registered or certified mail,
hand-delivered or sent by telecopier to it at its address indicated on the
signature page of this agreement.

        Any such notice shall be deemed to have been received on the date of
delivery if hand delivered, on the earlier of the date of actual delivery by the
postal authorities or three (3) business days after the date of mailing, if sent
by mail, on the date of transmission, if sent by telecopier before 3:00 pm on a
business day or on the business day following the date of transmission if sent
by telecopier after 3:00 pm on a business day or on a day which is not a
business day. In the event of an interruption or abnormal delay in postal
service, any notice or other communication shall be hand delivered or sent by
telecopier. Any of the parties hereto may, by written notice to the others,
given as aforesaid, designate a changed address for such party. For the purposes
of this section 17.1, "business day" shall mean a day on which banks are open
for business in the City of Toronto, Ontario.

18.     GOVERNING LAW

18.1    This agreement shall be governed by and interpreted in accordance with
the laws of the Province of Quebec.

19.     INTERPRETATION

19.1    Any word herein contained in the singular number will include the
plural; any word importing any gender will include the masculine, feminine and
neuter genders; any word importing a person will include a corporation, a
partnership and any other entity and vice-versa. The headings of this agreement
are for convenience of reference only and shall not affect in any manner any of
the terms and conditions hereof or the construction or interpretation of this
agreement.

20.     CONFLICTS/SUPREMACY

<PAGE>   14
                                     - 14 -

20.1    In the event of a conflict or inconsistency between the provision of
this agreement and those of the CREDIT AGREEMENT, the terms of the CREDIT
AGREEMENT shall prevail.

21.     OTHER DOCUMENTS

21.1    The GRANTOR undertakes to perform all acts and enter into all
documentation which may be useful or necessary or required by the CREDITOR for
purposes of giving full force and effect to the provisions hereof or to perfect
the rights of the CREDITOR hereunder including, without limitation, the right to
recover and collect the CLAIMS and to exercise its hypothecary remedies with
respect thereto.

22.     SEVERABILITY

22.1    Every provision of this agreement is and shall be independent of the
other and in the event that any part of this agreement is declared invalid,
illegal or unenforceable, then the remaining terms, clauses and provisions of
this agreement shall not be affected by such declaration and all of the
remaining clauses of this agreement shall remain valid, binding and enforceable.

23.     LANGUAGE

23.1    The parties acknowledge that they have required that this agreement and
all related documents be prepared in English.

        Les parties reconnaissent avoir exige que la presente convention et tous
les documents connexes soient rediges en anglais.

SIGNED AT LOS ANGELES, CALIFORNIA, THIS 14 DAY OF DECEMBER, 2000.

                                     FUTURELINK CANADA CORP.

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

                                     Per:

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

                                     ADDRESS: 2 Gibbs Road
                                              Toronto (Ontario)
                                              M9B 6L6

                                     FOOTHILL CAPITAL CORPORATION

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

                                     ADDRESS: 2450 Colorado Avenue
                                              Suite 3000 West
<PAGE>   15
                                     - 15 -

                                      Santa Monica, California
                                      90404

<PAGE>   16
                                     - 16 -

                                  SCHEDULE "A"

                TO THE HYPOTHEC ON MOVABLE PROPERTY (GENERAL) GRANTED BY
                FUTURELINK CANADA CORP. ("GRANTOR") IN FAVOUR OF FOOTHILL
                CAPITAL CORPORATION (THE"CREDITOR"), BEARING FORMAL DATE OF
                DECEMBER 14, 2000.

                                PERMITTED CHARGES

- NIL

<PAGE>   17
                                     - 17 -

                                  SCHEDULE "B"

                TO THE HYPOTHEC ON MOVABLE PROPERTY (GENERAL) GRANTED BY
                FUTURELINK CANADA CORP. ("GRANTOR") IN FAVOUR OF FOOTHILL
                CAPITAL CORPORATION (THE"CREDITOR"), BEARING FORMAL DATE OF
                DECEMBER 14, 2000.

II. ENTERPRISE CARRIED ON BY THE GRANTOR

-       [TO BE COMPLETED]

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