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                                                                   EXHIBIT 10.51

                          FUTURELINK DISTRIBUTION CORP.
                    DEBENTURE AND WARRANT PURCHASE AGREEMENT

THIS DEBENTURE AND WARRANT PURCHASE AGREEMENT (the "Agreement") is made and
entered into as of March 2, 1999, by and between FUTURELINK DISTRIBUTION CORP.,
a Colorado corporation ("Seller") and AUGUSTINE FUND, LP, an Illinois
corporation ("Buyer"), with respect to the following facts:

A)   Seller desires to sell to the Buyer, and Buyer desires to purchase from the
     Seller up to $500,000 of a 8% Convertible Debenture (the "Debentures") for
     the Common Stock of the Seller at an exercise price per share equal to the
     lesser of 80% of the average of the closing price of the Common Stock of
     the Seller as quoted on the NASD Electronic Bulletin Board for the three
     trading days prior to i) the Initial Funding Date or ii) the Conversion
     Date; and

B)   $50,000 of Warrants to purchase shares of the Seller's Common Stock (the
     "Warrants") at an exercise price per share equal to the average of the
     closing price of the Common Stock of the Seller as quoted on the NASD
     Electronic Bulletin Board for the three trading days prior to the Initial
     Funding Date (as hereinafter defined), in the form of Exhibits A and B
     hereto, respectively, (collectively, the "Securities"), upon the terms and
     conditions as set forth in this Agreement.

NOW THEREFORE, in consideration of the foregoing facts and the mutual covenants
and agreements contained herein, the parties hereby agree as follows:

1.   PURCHASE AND SALE OF SECURITIES. Seller hereby sells the Securities to
     Buyer, and Buyer hereby purchases the Securities from Seller. Seller is
     acquiring the Securities as Nominee and intends to resell the Securities to
     its customers.

2.   PURCHASE PRICE. The total purchase price (the "Purchase Price") for the
     Securities shall be up to Five Hundred Thousand Dollars ($500,000), payable
     in cash in accordance with the terms, conditions and procedures set forth
     herein.

3.   TRANSFER OF SECURITIES AND DELIVERY OF PURCHASE PRICE.

3.1

     a)   On the Initial Funding Date, the Buyer will advance Five Hundred
          Thousand Dollars ($500,000) which is to be used for working capital;
          provided that;

          i.   The Seller shall file with the United States Securities and
               Exchange Commission (the "SEC") within 45 days of the Initial
               Funding Date: (A) an appropriate form to register its Common
               Stock under Section 12(g) of the Securities Exchange Act of 1934,
               as amended (the "Securities Act"), and (B) the registration
               statement described

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               in Section 6 below to register for resale under the Securities
               Exchange Act of 1934, as amended (the "Exchange Act"), a portion
               of the shares of Common Stock issuable upon conversion or
               exercise of the Securities.

          The amount advanced shall be represented by a Debenture(s) in the form
          of Exhibit A hereto for the amount advanced; provided that Debentures,
          at the Buyer's request may be issued in amounts of One Hundred
          Thousand Dollars ($100,000) or multiples thereof, whether issued at
          the Initial Funding Date of any Subsequent Funding Date. The Seller
          shall also deliver to the Buyer on the Initial Funding Date, the
          Warrants in the form of Exhibit B hereto.

3.2

On the Initial Funding Date, Seller shall issue to the Buyer, for Buyer's own
account, $50,000 of Warrants of the Seller exercisable at a per share price
equal to the average of the closing price of the Common Stock of the Seller as
quoted on the NASD Electronic Bulletin Board for the three trading days prior to
the Initial Funding Date, in the form of Exhibit B hereto.

3.3

On the Initial Funding Date, the Seller and the Buyer shall enter into the
Escrow Agreement in the form of Exhibit C hereto, with Brobeck Phleger &
Harrision LLP as Escrow Agent.

4.   REPRESENTATIONS AND WARRANTIES OF THE SELLER. The Seller hereby represents
     and warrants to the Buyers as follows:

4.1

Any Common Stock of Seller issuable upon conversion of or as payment of interest
pursuant to the Debentures and the exercise of the Warrants will be duly and
validly issued fully paid and nonassessable Common Stock of the Seller.

4.2

The Seller is a corporation duly organized, validly existing and in good
standing under the laws of the State of Colorado. The Seller has full corporate
power and authority to own and operate its properties and assets, and to carry
on its business as presently conducted and as proposed to be conducted. The
Seller is duly qualified to do business as a foreign corporation in each
jurisdiction to which the failure to be so qualified could have a material
adverse effect on the Seller.

4.3

The Seller has and will have at the Initial Date, all required legal and
corporate power and authority to execute and deliver this Agreement and the
Exhibits hereto, to sell and issue the Securities and all Common Stock
underlying the Securities hereunder, and to carry out and perform its
obligations under the terms of the Agreement and the Exhibits hereto.

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4.4

The authorized capital stock of the Seller consists of (a) 100,000,000 shares of
Common Stock, par value $.0001 per share, of which 29,300,318 shall be issued
and outstanding as of the Initial Funding Date and, (b) 5,000,000 shares of
Preferred Stock, no par value per share, none of which are issued and
outstanding immediately prior to the Initial Funding Date.

4.5

All corporate action on the part of the Seller, its directors and stockholders
necessary for the authorization, execution, delivery and performance of this
Agreement and the Exhibits hereto, the authorization, sale, issuance and
delivery of the Securities and all underlying Common Stock and the performance
of all of the Seller's obligations hereunder and under each of the Exhibits
hereto shall be duly taken by the Seller. This Agreement, when executed and
delivered by the Seller, constitutes and each of the Exhibits thereto shall,
when executed and delivered, constitute, a valid and binding obligation of the
Seller, enforceable in accordance with their terms except for bankruptcy and
equitable remedies. The Common Stock when issued in compliance with the
Securities shall be validly issued, fully paid and non-assessable. The
Securities are free of any liens, claims or encumbrances; provided, however,
that they will be subject to restrictions on transfer under applicable state
and/or federal securities laws as set forth herein. The issuance of the
Securities will not be subject to any preemptive rights or rights of first
refusal, or result in any default of, or conflict with, the Articles of
Incorporation or Bylaws of the Seller, any contract or agreement to which the
Seller is a party or by which it is bound of any other obligation or commitment
of the Seller.

4.6

The Seller has delivered to the Buyer the reviewed balance sheet and statements
of operations and cash flows of the Seller as of and for the period ended
September 30, 1998 (the "Financial Statements"). The Financial Statements are
complete and correct and have been prepared in accordance with the books and
records of the Seller on a consistent basis. The Financial Statements accurately
set out, present fairly and describe the consolidated financial condition and
operating results of the Seller as of the dates, and during the periods,
indicated therein.

4.7

The Seller has no liabilities or obligations of any kind, absolute, contingent
or otherwise, except (a) the liabilities and obligations set forth in the
Financial Statements, (b) liabilities and obligations which have been incurred
subsequent to September 30, 1998, in the ordinary course of business and
consistent with past practice.

4.8

The Seller has good and marketable title to its properties and assets, and has
good title to all it leasehold forecasts, in each case subject to no lien, claim
or encumbrance other than (a) the lien

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of current taxes not yet due and payable, (b) possible minor liens and
encumbrances which do not in any case or in the aggregate materially detract
from the value of the property subject thereto or materially impair the
operations of the Seller, and which have not arisen otherwise than in the
ordinary course of business. The assets and properties of the Seller are
adequate to conduct the operations currently conducted and proposed to be
conducted by it. The Seller enjoys peaceful and undisturbed possession under all
leases under which it is operating, and all said leases are valid and subsisting
and in full force and effect. The leasehold improvements of the Seller and all
of their tangible personal property, machinery, equipment, fixtures and
inventories used in the ordinary course of business are in good repair and in
good operating condition, reasonable wear and tear excluded.

4.9

The Seller is not in violation of any term of its Articles of Incorporation or
Bylaws, or of any material term or provision of any mortgage, indebtedness,
indenture, contract, agreement, instrument, judgment or decree, including
without limitation any Material Contract. The Seller is in compliance with all
judgments, decrees, governmental orders, laws, statutes, rules and regulations
by which it is bound or to which it or any of its properties or assets is
subject, except where the failure to comply would not have a material adverse
effect on the Seller. The Seller has all permits, licenses, franchises and
authorizations (collectively, the "License") which are required by law and/or
necessary to operate its business as conducted or proposed to be conducted,
except where the failure to have any such License would not have a material
adverse effect on the Seller. All such Licenses were validly issued and are in
full force and effect. The Seller is in compliance in all material respect with
all of its Licenses and no suspension, revocation or termination of any License
is pending or, to the knowledge of the Seller, thereafter. The execution,
delivery and performance of and compliance with this Agreement and the Exhibits
thereto, and the issuance of the Securities have not resulted and will not
result in any violation of, or conflict with, or constitute a material default
under, (a) the Articles of Incorporation or Bylaws of the Seller or (b) assuming
the accuracy of the representations and warranties of the Seller set forth in
hereto, any applicable law, statute, rule, regulation or License, or (c) any
agreement, contract, franchise or instrument to which the Seller is a party, and
has not resulted and will not result in the creation of, any Lien upon any of
the properties or assets of the Seller.

4.10

The Seller has good and marketable titles to, or valid and continuing rights and
licenses to use, all patents, patent rights, trade secrets, trademarks,
trademark rights, service marks, trade names, copyrights, franchises, licenses,
permits, inventions, customer lists, and all rights with respect to the
foregoing, which are necessary for the operation of its business as presently
conducted and now proposed to be operated (collectively, the "Intangible
Property"). To the Seller's knowledge, the conduct of business of the Seller as
now operated and as now proposed to be operated does not and will not conflict
with any valid intellectual property right of others. The Seller has not
received any notices of any claim against it that any of its operations,
activities, products or publications infringes on any patent, trademark, trade
name, copyright or other property right of a third party or that it is illegally
or otherwise using the trade secrets or any

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property rights of others. The Seller has no knowledge that any licensor of it
has any disputes with or claims against any third party for infringements by
such third party of any trade name or other Intangible Property.

4.11

There are no actions, suits, proceedings or investigations pending against the
Seller or its properties before any court or governmental agency (nor, to the
best of the Seller's knowledge, is there any reasonable basis therefore or
threat thereof) that has not been disclosed to the Buyer.

4.12

To the best of the Seller's knowledge, no employee of the Seller is in violation
of any term of any employment contract, patent disclosure agreement or any other
contract or agreement relating to the relationship of such employee with Seller.

4.13

All agreements material to the business of the Seller ("Material Contracts") are
valid, binding and in full force and effect in all material respects. The Seller
and, to the best of the Seller's knowledge, each other party to a Material
Contract have in all material respects performed all the obligations required to
be performed by them, have received no notice of default under any Material
Contract.

4.14

The Seller: (a) has accurately prepared and timely filed all tax returns that
are required to have been filed by it with all appropriate federal, state,
country and local governmental agencies (and all such returns fairly reflect the
Seller's operations for tax purposes); and (b) has paid in full or made adequate
provision on the financial Statements for the payment of all taxes.

4.15

None of this Agreement (including the Exhibits hereto), any instruments,
certificate or report furnished to the Shareholder when read together, contains
any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained herein or therein, in light
of the circumstances under which they are made, not misleading. The Seller knows
of no information or fact that has and/or could have a material adverse effect
on it that has not been disclosed to the Buyer.

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5.   REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF THE BUYER. The
     Buyer hereby represents and warrants to and covenants and agrees with the
     Seller the following:

5.1

The Buyer has the full power and authority to execute, deliver and perform this
Agreement. This Agreement when executed and delivered by the Buyer will
constitute a valid and legally binding obligation of the Buyer, enforceable in
accordance with its terms except for bankruptcy and equitable remedies.

5.2

This Agreement is made with the Buyer in reliance upon such Buyer's
representation to the Company, which by such Buyer's execution of this Agreement
such Buyer hereby confirms, that the Securities to be purchased by such Buyer
and the Common Stock issuable upon conversion of the Debenture or upon exercise
of the Warrant will be acquired for investment for such Buyer's own account, not
as a nominee or agent, and not with a view to the resale or distribution of any
part thereof, and that such Buyer has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this
Agreement, the Buyer further represents that such Buyer does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to any of the Securities to be purchased by such Buyer and the Common
Stock issuable upon conversion of the Debenure or upon exercise of the Warrant.
The Buyer has not been formed for the specific purpose of acquiring the
Debenture or the Warrant.

5.3

The Buyer understands that the Debenture and the Warrant are not, and any Common
Stock acquired on conversion of the Debenture or upon exercise of the Warrant at
the time of issuance may not be, registered under the Securities Act.

5.4

The Buyer represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of
the Securities and the business, properties, prospects and financial condition
of the Company.

5.5

The Buyer is an "accredited investor" as defined in Rule 501(a) under the
Securities Act. The Buyer is able to bear the economic risk of this investment,
and has such knowledge and experience in financial and business matters that
such Buyer is capable of evaluating the merits and risks of the investment in
the securities to be purchased hereunder. The Buyer is purchasing the Securities
pursuant to this Agreement for investment purposes for its own account and not

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with a view to, or for resale in connection with, any distribution thereof,
within the meaning of Section 2(11) of the Securities Act.

5.6

The Buyer understands that the Debenture and the Warrant and any Common Stock
issued upon conversion of the Debenture or upon exercise of the Warrant are
characterized as "restricted securities" under applicable U.S. federal and state
securities laws. The Buyer understands that the Debenture and the Warrant and
Common Stock issuable upon conversion of the Debenture or upon exercise of the
Warrant may not be sold except in compliance with the Securities Act and
applicable state securities laws.

5.7

The Buyer understands that the Debenture and the Warrant, and any securities
issued in respect thereof or exchange therefor, may bear one or both of the
following legends.

     A. "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THESE
SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED EXCEPT IN
COMPLIANCE WITH THE FEDERAL AND STATE SECURITIES LAWS."

     B. Any legend required by the blue sky laws of any state to the extent such
laws are applicable to the shares represented by the certificate so legended.

5.8

The Purchase Price to be paid by Buyer to Seller for the Securities has been
determined by Buyer as fair and appropriate based solely upon Buyer's
independent investigation and due diligence of the Seller, and neither the
Seller nor any of its agents, including, without limitation, any of their
officers, directors, employees, accountants and attorneys, has made any
representations or warranties whatsoever in connection with the sale of the
Securities by the Seller to the Buyer, except as specifically set forth herein.
The Buyer has had sufficient opportunity in connection with the sale of the
Securities to review the Seller's business and affairs (including, without
limitation, the Seller's financial statements and other information) and to
inquire of the Seller's management with respect thereto. The Buyer has had
answered to its satisfaction any questions with respect to the Seller's business
and affairs. The Buyer further has had the opportunity to obtain independent
financial, legal, accounting, business, tax and other appropriate advice with
respect to the transactions contemplated by this Agreement, and is not relying
upon the Seller or any of its agents in any manner in connection with same.

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5.9

The Buyer has reviewed with his/her or its own tax advisors the foreign,
federal, state and local tax consequences of this investment, where applicable,
and the transactions contemplated by this Agreement. The Buyer is relying solely
on such advisors and not on any statements or representations of the Seller or
any of its agents and understands that the Buyer (and not the Seller) shall be
responsible for the Buyer's own tax liability that may arise as a result of this
investment or the transactions contemplated by this Agreement.

5.10

The Buyer acknowledges that it has had this Agreement and the transactions
contemplated by this Agreement reviewed by its own legal counsel. The Buyer is
relying solely on such counsel and not on any statements or representations of
the Seller or any of its agents for legal advice with respect to this investment
or the transactions contemplated by this Agreement.

6.   REGISTRATION UNDER THE SECURITIES ACT.

6.1

As soon as possible after the date (but in no case prior to the Initial Funding
Date), the Seller will include in an appropriate form of registration statement
filed under the Securities Act for resale by the potential holders (the "Buyer")
the following shares of Common Stock, but only Common Stock, of the Seller
(collectively, the "Securities");

     i.   One hundred fifty percent (150%) of the shares underlying the
          Debenture, assuming the aggregate outstanding Principal Sum was Five
          Hundred Thousand Dollars ($500,000) based on a Conversion Price per
          share equal to eighty percent of the closing prices for the Common
          Stock of the Seller for the three trading days prior to the Initial
          Funding Date; and

     ii.  One hundred percent (100%) of the shares underlying the Warrants to
          purchase Fifty Thousand Dollars ($50,000) of the Common Stock of the
          Seller based on an exercise price per share equal to the closing price
          for the Common Stock of the Seller for the three trading days prior to
          the Initial Funding Date.

6.2

The Seller shall use its best efforts to cause the registration statement
provided for in Section 6.1 hereof to become effective under the Act no later
than the ninetieth (90th) day after March 31, 1999. Should the registration
statement not become effective on the 90th day after March 31, 1999, then the
Seller shall pay to the Buyer a penalty equal to .067 of a percent of the
Initial Funding Amount for each day following the 90th day after March 31, 1999,
that the registration statement is not effective.

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6.3

The following provision of this Section 6 shall also be:

     i.   The Seller shall file the registration statement at its own expense
          and without charge to the Buyer. The Buyer shall, however, bear the
          fees of his own counsel and any transfer taxes applicable to the
          Securities sold by it pursuant thereto.

     ii.  The Seller's agreements with respect to the Securities in this Section
          6 shall continue by effect regardless of the conversion and surrender
          of the Debenture or any exercise of the Warrants or the underlying
          Common Stock, except for any such underlying Common Stock sold
          pursuant to a registration statement under the Act or sold pursuant to
          Rule 144.

7.   ENTIRE AGREEMENT. This agreement, and the Exhibits hereto embodies the
     entire agreement and understanding between the parties hereto with respect
     to the subject matter hereof and supercedes all prior agreements and
     understandings relating to such subject matter.

8.   CHOICE OF LAW AND VENUE. This Agreement shall be governed by and construed
     under the laws of the State of Delaware, USA, without regard to choice of
     laws, in force from time to time. Any proceeding arising out of this
     Agreement shall be brought in Delaware, USA and all parties hereby consent
     to the jurisdiction of the courts in Delaware.

9.   ATTORNEY'S FEES. On the Initial Funding Date, the Seller agrees to pay
     $2,500.00 to Foley & Lardner, legal counsel to the Buyer. In any action to
     enforce this Agreement, the prevailing party shall be entitled to recover
     from the non-prevailing party all reasonable costs, including, without
     limitation, attorneys' fees.

10.  PARTIES BOUND. This Agreement is binding on and shall inure to the benefit
     of the parties and their respective successors, assigns, heirs and legal
     representatives.

11.  NOTICES. Except as otherwise provided herein, all notices, instructions or
     other communications required or permitted hereunder shall be in writing
     and sent by registered mail, postage prepaid, addressed as follows:

     To: FutureLink

     300, 250 - 6th Avenue S.W.
     Calgary, AB, Canada  T2P 2T5
     Fax: (403) 509-6101
     Attention: Mr. Raghu Kilambi
     Chief Financial Officer

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     To: Augustine Fund, LP

     2182 - 141 West Jackson Boulevard
     Chicago, IL
     60604
     Fax: 312-427-5396
     Attention:  Mr. John T. Porter

     or such other address, telephone numbers of contact persons as shall be
     furnished in writing by such party to the other parties hereto. Any such
     notice, instruction or communication shall be deemed to have been given
     three (3) business days after the date mailed by registered mail or if sent
     by fax, upon electronic confirmation or receipt.

12.  GENDER. Masculine nouns and pronouns shall include feminine nouns and
     pronouns.

13.  ATTORNEY'S FEES. The Seller agrees to pay all costs and expenses, including
     without limitation reasonable attorney's fees, which may be incurred by the
     Buyer in collecting any amount due under the Debenture or in enforcing any
     of the Buyer's conversion rights as described herein.

14.  INDEMNIFICATION. The Seller shall indemnify, defend and hold harmless each
     holder of Registrable Securities which are included in a registration
     statement pursuant to the provisions hereof and each of its officers,
     directors, employees, agents, partners or controlling persons (within the
     meaning of the Securities Act) (each, an "indemnified party") from and
     against, and shall reimburse such indemnified party with respect to, any
     and all claims, suits, demands, causes of action, losses, damages,
     liabilities, costs or expenses ("Liabilities") to which such indemnified
     party may become subject under the Securities Act or otherwise, arising
     from or relating to (a) any untrue statement or alleged untrue statement of
     any material fact contained in such registration statement, any prospectus
     contained therein or any amendment or supplement thereto, or (b) the
     omission or alleged omission to state therein a material fact required to
     be stated therein or necessary to make the statements therein, in light of
     the circumstances in which they were made, not misleading; provided,
     however, that the Seller shall not be liable in any such case to the extent
     that any such Liability arises out of or is based upon an untrue statement
     or omission so made in strict conformity with information furnished by such
     indemnified party in writing specifically for use in a registration
     statement.

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

               SELLER:         FUTURELINK DISTRIBUTION CORP.

                               By: /s/ R. Kilambi
                                   ---------------------------------------------

                               As: CFO
                                   ---------------------------------------------

               BUYER:          AUGUSTINE FUND, LP

                               By: /s/ John T. Porter
                                   ---------------------------------------------

                               As: CFO Augustine Capital Management Inc., G.P.
                                   ---------------------------------------------<PAGE>   1

                                                                   EXHIBIT 10.52

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT
THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE SECURITIES
ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH
TRANSFER IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL
BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                          FUTURELINK DISTRIBUTION CORP.
No. _____

         This is to Certify That, FOR VALUE RECEIVED, ____________, or assigns
("Holder"), is entitled to purchase, subject to the provisions of this Warrant,
from FutureLink Distribution Corp., a corporation organized under the laws of
the State of Colorado ("Company"), ___________ (________) fully paid, validly
issued and nonassessable shares of common stock, $.0001 par value, of the
Company ("Common Stock") at a price of $.25 per share at any time or from time
to time during the period from [April 29, 1999] until [April 29, 2006], subject
to adjustment as set forth herein. The number of shares of Common Stock to be
received upon the exercise of this Warrant and the price to be paid for each
share of Common Stock may be adjusted from time to time as hereinafter set
forth. The shares of Common Stock deliverable upon such exercise, and as
adjusted from time to time, are hereinafter sometimes referred to as "Warrant
Shares" and the exercise price of a share of Common Stock in effect at any time
and as adjusted from time to time is hereinafter sometimes referred to as the
"Exercise Price". This Warrant, together with warrants of like tenor,
constituting in the aggregate warrants (the "Warrants") to purchase up to
15,000,000 shares of Common Stock, was originally issued in connection with a
private offering of the Company's securities (the "Private Placement") through
Commonwealth Associates ("Commonwealth") in consideration for loans evidenced by
8% senior subordinated convertible promissory notes issued in the Private
Placement (the "Notes").

         (a)      EXERCISE OF WARRANT; CANCELLATION OF WARRANT.

                  (1) This Warrant may be exercised in whole or in part at any
time or from time to time on or after [April 29], 1999 and until [April 29],
2006 (the "Exercise Period"), subject to the provisions of Section (j)(2)
hereof; provided, however, that (i) if either such day is a day on which banking
institutions in the State of New York are authorized by law to close, then on
the next succeeding day which shall not be such a day, and (ii) in the event of
any merger, consolidation or sale of substantially all the assets of the Company
as an entirety, resulting in any distribution to the Company's stockholders,
prior to [April 29], 2006, the Holder shall have the right to exercise this
Warrant commencing at such time through [April 29], 2006 into the kind and
amount of shares of stock and other securities and property (including cash)
receivable by a holder of the number of shares of Common Stock into which this
Warrant might have been exercisable immediately prior thereto. This Warrant may
be exercised by presentation and surrender hereof to the Company at its
principal office with the Purchase Form annexed hereto duly executed and
accompanied by payment of the Exercise Price for the number of Warrant
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Shares specified in such form. As soon as practicable after each such exercise
of the warrants, but not later than seven (7) days following the receipt of good
and available funds, the Company shall issue and deliver to the Holder a
certificate or certificate for the Warrant Shares issuable upon such exercise,
registered in the name of the Holder or its designee. If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the Warrant Shares purchasable
thereunder. Upon receipt by the Company of this Warrant at its office in proper
form for exercise, the Holder shall be deemed to be the holder of record of the
shares of Common Stock issuable upon such exercise, notwithstanding that the
stock transfer books of the Company shall then be closed or that certificates
representing such shares of Common Stock shall not then be physically delivered
to the Holder.

                  (2) At any time during the Exercise Period, the Holder may, at
its option, exchange this Warrant, in whole or in part (a "Warrant Exchange"),
into the number of Warrant Shares determined in accordance with this Section
(a)(2), by surrendering this Warrant at the principal office of the Company or
at the office of its stock transfer agent, accompanied by a notice stating such
Holder's intent to effect such exchange, the number of Warrant Shares to be
exchanged and the date on which the Holder requests that such Warrant Exchange
occur (the "Notice of Exchange"). The Warrant Exchange shall take place on the
date specified in the Notice of Exchange or, if later, the date the Notice of
Exchange is received by the Company (the "Exchange Date"). Certificates for the
shares issuable upon such Warrant Exchange and, if applicable, a new warrant of
like tenor evidencing the balance of the shares remaining subject to this
Warrant, shall be issued as of the Exchange Date and delivered to the Holder
within seven (7) days following the Exchange Date. In connection with any
Warrant Exchange, this Warrant shall represent the right to subscribe for and
acquire the number of Warrant Shares equal to (i) the number of Warrant Shares
specified by the Holder in its Notice of Exchange (the "Total Number") less (ii)
the number of Warrant Shares equal to the quotient obtained by dividing (A) the
product of the Total Number and the existing Exercise Price by (B) the current
market value of a share of Common Stock. Current market value shall have the
meaning set forth Section (c) below, except that for purposes hereof, the date
of exercise, as used in such Section (c), shall mean the Exchange Date.

         (b) RESERVATION OF SHARES. The Company shall at all times reserve for
issuance and/or delivery upon exercise of this Warrant such number of shares of
its Common Stock as shall be required for issuance and delivery upon exercise of
the Warrants.

         (c) FRACTIONAL SHARES. No fractional shares or script representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a share called for upon any exercise hereof, the
Company shall pay to the Holder an amount in cash equal to such fraction
multiplied by the current market value of a share, determined as follows:

                  (1) If the Common Stock is listed on a national securities
exchange or admitted to unlisted trading privileges on such exchange or listed
for trading on the Nasdaq National Market, the current market value shall be the
last reported sale price of the Common Stock on such exchange or market on the
last business day prior to the date of exercise of this Warrant or if no such
sale is made on such day, the average of the closing bid and asked prices for
such day on such exchange or market; or

                                       2
<PAGE>   3

                  (2) If the Common Stock is not so listed or admitted to
unlisted trading privileges, but is traded on the Nasdaq SmallCap Market, the
current market value shall be the average of the closing bid and asked prices
for such day on such market and if the Common Stock is not so traded, the
current market value shall be the mean of the last reported bid and asked prices
reported by the NASD Electronic Bulletin Board on the last business day prior to
the date of the exercise of this Warrant; or

                  (3) If the Common Stock is not so listed or admitted to
unlisted trading privileges and bid and asked prices are not so reported, the
current market value shall be an amount, not less than book value thereof as at
the end of the most recent fiscal year of the Company ending prior to the date
of the exercise of the Warrant, determined in such reasonable manner as may be
prescribed by the Board of Directors of the Company.

         (d) EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other warrants of different denominations entitling the
holder thereof to purchase in the aggregate the same number of shares of Common
Stock purchasable hereunder. Upon surrender of this Warrant to the Company at
its principal office or at the office of its stock transfer agent, if any, with
the Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment and
this Warrant shall promptly be cancelled. This Warrant may be divided or
combined with other warrants which carry the same rights upon presentation
hereof at the principal office of the Company or at the office of its stock
transfer agent, if any, together with a written notice specifying the names and
denominations in which new Warrants are to be issued and signed by the Holder
hereof. The term "Warrant" as used herein includes any Warrants into which this
Warrant may be divided or exchanged. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will execute and deliver a new Warrant of
like tenor and date. Any such new Warrant executed and delivered shall
constitute an additional contractual obligation on the part of the Company,
whether or not this Warrant so lost, stolen, destroyed, or mutilated shall be at
any time enforceable by anyone.

         (e) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in the Warrant and
are not enforceable against the Company except to the extent set forth herein.

         (f) ANTI-DILUTION PROVISIONS. Subject to the provisions of Section l
hereof, the Exercise Price in effect at any time and the number and kind of
securities purchasable upon the exercise of the Warrants shall be subject to
adjustment from time to time upon the happening of certain events as follows:

                                       3
<PAGE>   4

                  (1) In case the Company shall hereafter (i) declare a dividend
                  or make a distribution on its outstanding shares of Common
                  Stock in shares of Common Stock, (ii) subdivide or reclassify
                  its outstanding shares of Common Stock into a greater number
                  of shares, or (iii) combine or reclassify its outstanding
                  shares of Common Stock into a smaller number of shares, the
                  Exercise Price in effect at the time of the record date for
                  such dividend or distribution or of the effective date of such
                  subdivision, combination or reclassification shall be adjusted
                  so that it shall equal the price determined by multiplying the
                  Exercise Price by a fraction, the denominator of which shall
                  be the number of shares of Common Stock outstanding after
                  giving effect to such action, and the numerator of which shall
                  be the number of shares of Common Stock outstanding
                  immediately prior to such action. Such adjustment shall be
                  made successively whenever any event listed above shall occur.

                  (2) In case the Company shall hereafter fix a record date for
                  the issuance of rights or warrants to all holders of its
                  Common Stock entitling them to subscribe for or purchase
                  shares of Common Stock (or securities convertible into Common
                  Stock) at a price (the "Subscription Price") (or having a
                  conversion price per share) less than the current market price
                  of the Common Stock (as defined in Subsection (8) below) on
                  the record date mentioned below (if on the record date the
                  Company is Public), the Exercise Price shall be adjusted so
                  that the same shall equal the price determined by multiplying
                  the Exercise Price in effect immediately prior to the date of
                  such issuance by a fraction, the numerator of which shall be
                  the sum of the number of shares of Common Stock outstanding on
                  the record date mentioned below and the number of additional
                  shares of Common Stock which the aggregate offering price of
                  the total number of shares of Common Stock so offered (or the
                  aggregate conversion price of the convertible securities so
                  offered) would purchase at such current market price per share
                  of the Common Stock, and the denominator of which shall be the
                  sum of the number of shares of Common Stock outstanding on
                  such record date and the number of additional shares of Common
                  Stock offered for subscription or purchase (or into which the
                  convertible securities so offered are convertible). Such
                  adjustment shall be made successively whenever such rights or
                  warrants are issued and shall become effective immediately
                  after the record date for the determination of shareholders
                  entitled to receive such rights or warrants; and to the extent
                  that shares of Common Stock are not delivered (or securities
                  convertible into Common Stock are not delivered) after the
                  expiration of such rights or warrants the Exercise Price shall
                  be readjusted to the Exercise Price which would then be in
                  effect had the adjustments made upon the issuance of such
                  rights or warrants been made upon the basis of delivery of
                  only the number of shares of Common Stock (or securities
                  convertible into Common Stock) actually delivered.

                           (3) In case the Company shall hereafter distribute to
                  the holders of its Common Stock evidences of its indebtedness
                  or assets (excluding cash dividends or distributions and
                  dividends or distributions referred to in Subsection (1)
                  above) or subscription rights or warrants (excluding those
                  referred to in Subsection (2) above), then in each such case
                  the Exercise Price in effect thereafter shall be

                                       4
<PAGE>   5

                  determined by multiplying the Exercise Price in effect
                  immediately prior thereto by a fraction, the numerator of
                  which shall be the total number of shares of Common Stock
                  outstanding multiplied by the current market price per share
                  of Common Stock (as defined in Subsection (8) below), less the
                  fair market value (as determined by the Company's Board of
                  Directors) of said assets or evidences of indebtedness so
                  distributed or of such rights or warrants, and the denominator
                  of which shall be the total number of shares of Common Stock
                  outstanding multiplied by such current market price per share
                  of Common Stock. Such adjustment shall be made successively
                  whenever such a record date is fixed. Such adjustment shall be
                  made whenever any such distribution is made and shall become
                  effective immediately after the record date for the
                  determination of shareholders entitled to receive such
                  distribution.

                           (4) In case the Company shall hereafter issue shares
                  of its Common Stock (excluding shares issued (a) in any of the
                  transactions described in Subsection (1) above, (b) upon
                  exercise of options granted to the Company's officers,
                  directors and employees under a plan or plans adopted by the
                  Company's Board of Directors and approved by its shareholders,
                  if such shares would otherwise be included in this Subsection
                  (4), (but only to the extent that the aggregate number of
                  shares excluded hereby and issued after the date hereof, shall
                  not exceed 5% of the Company's Common Stock outstanding at the
                  time of any issuance), (c) upon exercise of options, warrants
                  and convertible debentures outstanding as of the final closing
                  of the Private Placement, or conversion of the Notes or the
                  Warrants, (d) to shareholders of any corporation which merges
                  into the Company in proportion to their stock holdings of such
                  corporation immediately prior to such merger, upon such
                  merger, (e) issued in a private placement through
                  Commonwealth, as placement agent, or upon exercise or
                  conversion of any securities issued in or in connection with
                  such a private placement (including agent, consulting or
                  advisory warrants) or (f) issued in a bona fide public
                  offering pursuant to a firm commitment underwriting, but only
                  if no adjustment is required pursuant to any other specific
                  subsection of this Section (f) (without regard to Subsection
                  (9) below) with respect to the transaction giving rise to such
                  rights) for a consideration per share (the "Offering Price")
                  less than the current market price per share (as defined in
                  Subsection (8) below) on the date the Company fixes the
                  offering price of such additional shares, the Exercise Price
                  shall be adjusted immediately thereafter so that it shall
                  equal the price determined by multiplying the Exercise Price
                  in effect immediately prior thereto by a fraction, the
                  numerator of which shall be the sum of the number of shares of
                  Common Stock outstanding immediately prior to the issuance of
                  such additional shares and the number of shares of Common
                  Stock which the aggregate consideration received (determined
                  as provided in Subsection (7) below) for the issuance of such
                  additional shares would purchase at such current market price
                  per share of Common Stock, and the denominator of which shall
                  be the number of shares of Common Stock outstanding
                  immediately after the issuance of such additional shares. Such
                  adjustment shall be made successively whenever such an
                  issuance is made.

                                       5
<PAGE>   6

                           (5) In case the Company shall hereafter issue any
                  securities convertible into or exchangeable for its Common
                  Stock (excluding securities issued in transactions described
                  in Subsections (2) and (3) above) for a consideration per
                  share of Common Stock (the "Conversion Price") initially
                  deliverable upon conversion or exchange of such securities
                  (determined as provided in Subsection (7) below) less than the
                  current market price per share (as defined in Subsection (8)
                  below) in effect immediately prior to the issuance of such,
                  the Exercise Price shall be adjusted immediately thereafter so
                  that it shall equal the price determined by multiplying the
                  Exercise Price in effect immediately prior thereto by a
                  fraction, the numerator of which shall be the sum of the
                  number of shares of Common Stock outstanding immediately prior
                  to the issuance of such securities and the number of shares of
                  Common Stock which the aggregate consideration received
                  (determined as provided in Subsection (7) below) for such
                  securities would purchase at such current market price per
                  share of Common Stock, and the denominator of which shall be
                  the sum of the number of shares of Common Stock outstanding
                  immediately prior to such issuance and the maximum number of
                  shares of Common Stock of the Company deliverable upon
                  conversion of or in exchange for such securities at the
                  initial conversion or exchange price or rate. Such adjustment
                  shall be made successively whenever such an issuance is made.

                           (6) Whenever the Exercise Price payable upon exercise
                  of each Warrant is adjusted pursuant to Subsections (1), (2),
                  (3), (4) and (5) above, the number of Shares purchasable upon
                  exercise of this Warrant shall simultaneously be adjusted by
                  multiplying the number of Shares initially issuable upon
                  exercise of this Warrant by the Exercise Price in effect on
                  the date hereof and dividing the product so obtained by the
                  Exercise Price, as adjusted.

                           (7) For purposes of any computation respecting
                  consideration received pursuant to Subsections (4) and (5)
                  above, the following shall apply:

                                    (A) in the case of the issuance of shares of
                           Common Stock for cash, the consideration shall be the
                           amount of such cash, provided that in no case shall
                           any deduction be made for any commissions, discounts
                           or other expenses incurred by the Company for any
                           underwriting of the issue or otherwise in connection
                           therewith;

                                    (B) in the case of the issuance of shares of
                           Common Stock for a consideration in whole or in part
                           other than cash, the consideration other than cash
                           shall be deemed to be the fair market value thereof
                           as determined in good faith by the Board of Directors
                           of the Company (irrespective of the accounting
                           treatment thereof), whose determination shall be
                           conclusive; and

                                    (C) in the case of the issuance of
                           securities convertible into or exchangeable for
                           shares of Common Stock, the aggregate consideration
                           received therefor shall be deemed to be the
                           consideration received by the

                                       6
<PAGE>   7

                           Company for the issuance of such securities plus the
                           additional minimum consideration, if any, to be
                           received by the Company upon the conversion or
                           exchange thereof (the consideration in each case to
                           be determined in the same manner as provided in
                           clauses (A) and (B) of this Subsection (7)).

                           (8) For the purpose of any computation under
                  Subsections (2), (3), (4) and (5) above, the current market
                  price per share of Common Stock at any date shall be
                  determined in the manner set forth in Section (c) hereof
                  except that the current market price per share shall be deemed
                  to be the higher of (i) the average of the prices for 30
                  consecutive business days before such date or (ii) the price
                  on the business day immediately preceding such date.

                           (9) No adjustment in the Exercise Price shall be
                  required unless such adjustment would require an increase or
                  decrease of at least five cents ($0.05) in such price;
                  provided, however, that any adjustments which by reason of
                  this Subsection (9) are not required to be made shall be
                  carried forward and taken into account in any subsequent
                  adjustment required to be made hereunder. All calculations
                  under this Section (f) shall be made to the nearest cent or to
                  the nearest one-hundredth of a share, as the case may be.
                  Anything in this Section (f) to the contrary notwithstanding,
                  the Company shall be entitled, but shall not be required, to
                  make such changes in the Exercise Price, in addition to those
                  required by this Section (f), as it shall determine, in its
                  sole discretion, to be advisable in order that any dividend or
                  distribution in shares of Common Stock, or any subdivision,
                  reclassification or combination of Common Stock, hereafter
                  made by the Company shall not result in any Federal Income tax
                  liability to the holders of Common Stock or securities
                  convertible into Common Stock (including Warrants).

                           (10) Whenever the Exercise Price is adjusted, as
                  herein provided, the Company shall promptly but no later than
                  10 days after any request for such an adjustment by the
                  Holder, cause a notice setting forth the adjusted Exercise
                  Price and adjusted number of Shares issuable upon exercise of
                  each Warrant, and, if requested, information describing the
                  transactions giving rise to such adjustments, to be mailed to
                  the Holders at their last addresses appearing in the Warrant
                  Register, and shall cause a certified copy thereof to be
                  mailed to its transfer agent, if any. In the event the Company
                  does not provide the Holder with such notice and information
                  within 10 days of a request by the Holder, then
                  notwithstanding the provisions of this Section (f), the
                  Exercise Price shall be immediately adjusted to equal the
                  lowest Offering Price, Subscription Price or Conversion Price,
                  as applicable, since the date of this Warrant, and the number
                  of shares issuable upon exercise of this Warrant shall be
                  adjusted accordingly. The Company may retain a firm of
                  independent certified public accountants selected by the Board
                  of Directors (who may be the regular accountants employed by
                  the Company) to make any computation required by this Section
                  (f), and a certificate signed by such firm shall be conclusive
                  evidence of the correctness of such adjustment.

                                       7
<PAGE>   8

                           (11) In the event that at any time, as a result of an
                  adjustment made pursuant to Subsection (1) above, the Holder
                  of this Warrant thereafter shall become entitled to receive
                  any shares of the Company, other than Common Stock, thereafter
                  the number of such other shares so receivable upon exercise of
                  this Warrant shall be subject to adjustment from time to time
                  in a manner and on terms as nearly equivalent as practicable
                  to the provisions with respect to the Common Stock contained
                  in Subsections (1) to (9), inclusive above.

                           (12) Irrespective of any adjustments in the Exercise
                  Price or the number or kind of shares purchasable upon
                  exercise of this Warrant, Warrants theretofore or thereafter
                  issued may continue to express the same price and number and
                  kind of shares as are stated in the similar Warrants initially
                  issuable pursuant to this Agreement.

         (g) OFFICER'S CERTIFICATE. Whenever the Exercise Price shall be
adjusted as required by the provisions of the foregoing Section, the Company
shall forthwith file in the custody of its Secretary or an Assistant Secretary
at its principal office and with its stock transfer agent, if any, an officer's
certificate showing the adjusted Exercise Price determined as herein provided,
setting forth in reasonable detail the facts requiring such adjustment,
including a statement of the number of additional shares of Common Stock, if
any, and such other facts as shall be necessary to show the reason for and the
manner of computing such adjustment. Each such officer's certificate shall be
made available at all reasonable times for inspection by the holder or any
holder of a Warrant executed and delivered pursuant to Section (a) and the
Company shall, forthwith after each such adjustment, mail a copy by certified
mail of such certificate to the Holder or any such holder.

         (h) NOTICES TO WARRANT HOLDERS. So long as this Warrant shall be
outstanding, (i) if the Company shall pay any dividend or make any distribution
upon the Common Stock or (ii) if the Company shall offer to the holders of
Common Stock for subscription or purchase by them any share of any class or any
other rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation, sale, lease or transfer of all or
substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then in any such case, the Company shall cause
to be mailed by certified mail to the Holder, at least fifteen days prior the
date specified in (x) or (y) below, as the case may be, a notice containing a
brief description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or rights,
or (y) such reclassification, reorganization, consolidation, merger, conveyance,
lease, dissolution, liquidation or winding up is to take place and the date, if
any is to be fixed, as of which the holders of Common Stock or other securities
shall receive cash or other property deliverable upon such reclassification,
reorganization, consolidation, merger, conveyance, dissolution, liquidation or
winding up.

         (i) RECLASSIFICATION, REORGANIZATION OR MERGER. In case of any
reclassification, capital reorganization or other change of outstanding shares
of Common Stock of the Company, or in case of any consolidation or merger of the
Company with or into another corporation (other than a merger with a subsidiary
in which merger the Company is the

                                       8
<PAGE>   9

continuing corporation and which does not result in any reclassification,
capital reorganization or other change of outstanding shares of Common Stock of
the class issuable upon exercise of this Warrant) or in case of any sale, lease
or conveyance to another corporation of the property of the Company as an
entirety, the Company shall, as a condition precedent to such transaction, cause
effective provisions to be made so that the Holder shall have the right
thereafter by exercising this Warrant at any time prior to the expiration of the
Warrant, to purchase the kind and amount of shares of stock and other securities
and property receivable upon such reclassification, capital reorganization and
other change, consolidation, merger, sale or conveyance by a holder of the
number of shares of Common Stock which might have been purchased upon exercise
of this Warrant immediately prior to such reclassification, change,
consolidation, merger, sale or conveyance. Any such provision shall include
provision for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Warrant. The foregoing
provisions of this Section (i) shall similarly apply to successive
reclassifications, capital reorganizations and changes of shares of Common Stock
and to successive consolidations, mergers, sales or conveyances. In the event
that in connection with any such capital reorganization or reclassification,
consolidation, merger, sale or conveyance, additional shares of Common Stock
shall be issued in exchange, conversion, substitution or payment, in whole or in
part, for a security of the Company other than Common Stock, any such issue
shall be treated as an issue of Common Stock covered by the provisions of
Subsection (1) of Section (f) hereof.

         (j) REGISTRATION UNDER THE SECURITIES ACT OF 1933. The holder will have
registration rights with respect to the Warrant Shares as more particularly set
forth in the subscription agreement executed in connection with the Private
Placement.

         (k) REDEMPTION.

                   (1) The Warrants may be redeemed, at the option of the
             Company on not less than thirty (30) days notice (the "Redemption
             Notice") to the Holders, at a redemption price of $0.05 per Warrant
             (the "Redemption Price"), if (i) the average closing bid price of
             the Company's Common Stock for 15 consecutive trading days ending
             within five days of the date of the Redemption Notice exceeds the
             greater of (a) 300% of the average closing bid price of the Common
             Stock for the 10 trading days immediately preceding the first
             closing of the Private Placement and (b) $1.50 (the "Target Price")
             and (ii) either a registration statement covering the shares of
             Common Stock issuable upon exercise of the Warrants has been
             declared effective by the Securities and Exchange Commission or two
             years has elapsed since the issuance of the Warrants. The date
             fixed for redemption of the Warrants (the "Redemption Date") shall
             be set forth in the Redemption Notice.

                   (2) Any right to exercise a Warrant shall terminate at 5:00
             P.M. (New York time) on the business day immediately preceding the
             Redemption Date. On and after the Redemption Date, Holders of the
             Warrants shall have no further rights except to receive, upon
             surrender of the Warrant, the Redemption Price.

                   (3) From and after the Redemption Date, the Company shall,
             at the place specified in the Redemption Notice, upon presentation
             and surrender to the

                                       9
<PAGE>   10

                  Company by or on behalf of the Holder thereof of one or more
                  Warrant Certificates evidencing Warrants to be redeemed,
                  deliver or cause to be delivered to or upon the written order
                  of such Holder a sum in cash equal to the Redemption Price of
                  each such Warrant. From and after the Redemption Date and upon
                  the deposit or setting aside by the Company of a sum
                  sufficient to redeem all the Warrants called for redemption,
                  such Warrants shall expire and become void and all rights
                  hereunder and under the Warrant Certificates, except the right
                  to receive payment of the Redemption Price, shall cease.

                           (4) If the shares of the Company's Common Stock are
                  subdivided or combined into a greater or smaller number of
                  shares of Common Stock, the Target Price shall be
                  proportionally adjusted by the ratio which the total number of
                  shares of Common Stock outstanding immediately prior to such
                  event bears to the total number of shares of Common Stock to
                  be outstanding immediately after such event.

                                       FUTURELINK DISTRIBUTION CORP.

                                       By:
                                          ----------------------------------

                                       By:
                                          ----------------------------------

Dated:            , 1999
      ------------

                                       10
<PAGE>   11

                                  PURCHASE FORM

                                                 Dated
                                                      ------------------

The undersigned hereby irrevocably elects to exercise the within Warrant to the
extent of purchasing _____shares of Common Stock and hereby makes payment
of_____ in payment of the actual exercise price thereof.

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name
    ----------------------------------------
(Please typewrite or print in block letters)

Address
       -------------------------------------

Signature
         -----------------------------------

                                 ASSIGNMENT FORM

        FOR VALUE RECEIVED,____________ hereby sells, assigns and
transfers unto

Name
    ----------------------------------------
(Please typewrite or print in block letters)

Address
       -------------------------------------

the right to purchase Common Stock represented by this Warrant to the extent of
____________ shares as to which such right is exercisable and does hereby
irrevocably constitute and appoint _______________ Attorney, to transfer the
same on the books of the Company with full power of substitution in the
premises.

Date
    -----------------------------

Signature
         ------------------------

<PAGE>   12

The Company issued a warrant in substantially the form attached hereto on
Exhibit 10.52 to the following selling stockholders included in this
Registration Statement, entitling each to purchase the following respective
number of shares of common stock.

                                                      Number of
                                                      Shares of
Name                                                 Common Stock
----                                                 ------------

Bill Arnett                                             17,790
Charles A. Barnes, Jr.                                   8,895
Edwin J. Beattie                                         7,413
Robert Bettinger                                        14,529
Jerome Dreyfuss                                         14,825
Merrill Lynch Canada Inc. ITF Doug Evans                 5,337
Ilya Gaba and Alice Gaba                                 5,930
Jonathan L. Glashow                                     29,650
Just In Case, Ltd.                                      14,825
Eugene Mascarenhas                                       4,448
David Nelson and Donna Nelson                           59,300
Jody Nelson                                              4,744
Allen Notowitz                                          29,650
William and Linda O'Neill                               11,860
Avtar Sandhu                                            11,860
Gary and Barbra Schultz                                 14,825
Alvin Shrager
M. Frank and Barbra J. Shrager                           5,930
May Shubash                                              8,895
Ventana Partners, LP                                    11,860
Seymour Wasserstrum                                      7,413
Wasson Capital Advisors Limited                         23,720
Ora Zabloski                                             8,895

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