Document:

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                                                                   EXHIBIT 10.68

                           GENERAL SECURITY AGREEMENT

                      Debtor:            1423280 Ontario Inc.

                      Secured Party:     Foothill Capital Corporation

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                           GENERAL SECURITY AGREEMENT
                                (Business Debtor)

PARTIES

        DEBTOR

          Name:                1423280 ONTARIO INC.
          Address:             100 King Street West
                               1 First Canadian Place
                               Suite #6600
                               Toronto, ON   M5X 1B8

          Fax No.

        SECURED PARTY

          Name:                Foothill Capital Corporation
          Address:             2450 Colorado Avenue,
                               Suite 3000 West
                               Santa Monica, California
                               90404

          Fax No.              (310) 453-7443

EFFECTIVE DATE

          December 14, 2000 (the "Effective Date")

1.      GRANT OF SECURITY INTEREST

        For valuable consideration (the receipt and sufficiency of which each of
the parties hereto hereby acknowledges) the Debtor hereby 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 Debtor's rights, title and interests in and to each and every property
described or referred to below (collectively, the "COLLATERAL"), all pursuant to
and in accordance with the provisions of this Agreement.

2.      DESCRIPTION OF COLLATERAL

        The Collateral includes all of the following personal property and
fixtures, and all of the leasehold interests and other property described in
paragraph 2.(j) below,

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        (a)     all goods now or hereafter comprising part of the inventory of
                the Debtor and all interests, rights and benefits, both present
                and future of the Debtor in or to inventory including, without
                limitation, goods now or hereafter held for sale or lease or
                furnished or to be furnished under a contract of service or that
                are raw materials, work in process or materials used or consumed
                in a business or profession or finished goods;

        (b)     all equipment now or hereafter owned by the Debtor and all
                interests, rights and benefits, both present and future, of the
                Debtor in or to equipment including, without limitation, office,
                warehouse and other furniture, fixtures, machinery, tools,
                rolling stock, vehicles, accessories, spare parts, supplies and
                other tangible personal property;

        (c)     all fixtures now or hereafter owned by the Debtor and all
                interests, rights and benefits, both present and future, of the
                Debtor in or to fixtures;

        (d)     all chattel paper now or hereafter owned or held by the Debtor
                and all interests, rights and benefits, both present and future,
                of the Debtor in, under or to chattel paper;

        (e)     each and every document of title now or hereafter owned by the
                Debtor or of which the Debtor is or becomes a holder, whether
                negotiable or non-negotiable, including, without limitation,
                each and every warehouse receipt and bill of lading, and all
                interests, rights and benefits, both present and future, of the
                Debtor in, under or to each and every document of title;

        (f)     each and every instrument now or hereafter owned by the Debtor
                or of which the Debtor is or becomes a holder, and all
                interests, rights and benefits, both present and future, of the
                Debtor in, under or to each and every instrument;

        (g)     each and every security now or hereafter owned by the Debtor or
                of which the Debtor is or becomes a holder including, without
                limitation, all shares, stocks, warrants, bonds, debentures,
                debenture stock or the like issued by a corporation or other
                person, or a partnership, association or government, and all
                interests, rights and benefits, both present and future, of the
                Debtor in, under or to each and every security;

        (h)     all money of the Debtor and all money hereafter acquired by the
                Debtor and each and every account, debt, claim and demand of
                every nature and kind which is now due, owing or accruing due or
                which may hereafter become due, owing or accruing due to the
                Debtor, or which the Debtor now has or may hereafter have and
                all interests, rights and benefits, both present and future of
                the Debtor in or to each and every account, debt, claim and
                demand including, without limitation, claims against the Crown
                and claims under insurance policies;

        (i)     all patents, industrial designs, trade-marks, trade secrets and
                know-how including without limitation, environmental technology
                and biotechnology, confidential information, trade-names,
                goodwill, copyrights, personality rights, plant breeders'
                rights, integrated circuit topographies, software and all other
                forms of intellectual and industrial property, and any
                registrations and applications for registration of any of the
                foregoing (collectively, "INTELLECTUAL PROPERTY");

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        (j)     each and every lease, agreement to lease and leasehold interest
                of the Debtor and all interests, rights and benefits, both
                present and future, of the Debtor, in, under or to the same,
                except the last day of any term of years reserved by any such
                lease or agreement therefor of which reversion of one day the
                Debtor shall stand possessed upon trust to assign and dispose of
                the same as the Secured Party shall direct;

        (k)     each and every intangible now or hereafter owned by the Debtor
                or of which the Debtor is or becomes a holder, and all
                interests, rights and benefits, both present and future, of the
                Debtor in, under or to each and every intangible;

        (l)     with respect to the property described in each of subparagraphs
                2.(a) to 2.(k) inclusive, all substitutions and replacements
                thereof, improvements, increases, additions and accessions
                thereto and all interests, rights and benefits, both present and
                future, of the Debtor in, under or to the same;

        (m)     with respect to the property described in each of subparagraphs
                2. (a) to 2.(l) inclusive, identifiable or traceable personal
                property in any form derived directly or indirectly from any
                dealing with such property or the proceeds therefrom and
                includes any payment representing indemnity or compensation for
                loss of or damage to such property or proceeds therefrom; and

        (n)     with respect to the property described in each of subparagraphs
                2.(a) to 2.(m) inclusive, all books, accounts, invoices,
                letters, deeds, contracts, security, securities, instruments,
                bills, notes, writings, papers, documents and records in any
                form evidencing or relating thereto, and all other rights and
                benefits to which the Debtor is now or may hereafter become
                entitled in respect thereof.

        In this Agreement, the words "goods", "inventory", "equipment", "chattel
paper", "document of title", "instrument", "security", "money", "account",
"motor vehicle", "proceeds", "intangible" and "accessions" shall have the same
meanings as their defined meanings in the PPSA. In this Agreement, each
reference to "Collateral" shall, unless the context otherwise requires, include
and be read as "Collateral or any part thereof".

        All of the Collateral, insofar as the same is not intangible property,
is now and will hereafter be kept at the address set out above.

3.      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 Debtor 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
                Debtor 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 Debtor;

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

        (d)     whether incurred by the Debtor 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).

4.      ATTACHMENT

        Each of the Debtor and the Secured Party acknowledges and confirms that
the security interests, mortgages and charges granted hereby shall attach:

        (a)     forthwith upon the Effective Date with respect to each and every
                property included in the Collateral and in which the Debtor then
                has rights; and

        (b)     forthwith upon the Debtor first acquiring rights in each and
                every property included in the Collateral and in which the
                Debtor first acquires such rights subsequent to the Effective
                Date.

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

5.      DEBTOR'S WARRANTIES

        The Debtor 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)     Title to Collateral: The Debtor is the absolute and beneficial
                owner of the Collateral and none of the Collateral is held in
                the name of any person other than the Debtor, whether as agent,
                trustee or other nominee for the Debtor, and all registrations
                and filings which may be required to preserve the Debtor's
                title, rights or other interests in the Collateral vis-a-vis
                others have been made.

        (b)     No Encumbrances: The Collateral is 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
                Debtor to or in favour of Secured Party.

        (c)     Due Authorization: The Debtor 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.

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        (d)     Right to Grant: The Debtor has taken all necessary corporate
                action to authorize the execution, delivery and performance of
                this Agreement and the Debtor 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 Debtor of its obligations hereunder does not
                and will not contravene, breach or result in any default under
                any agreement to which the Debtor is a party or by which the
                Debtor or any of its properties or assets 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 Litigation: Except as disclosed in writing to the Secured
                Party, there is no court, administrative, regulatory or similar
                proceeding (whether civil, quasi-criminal or criminal),
                arbitration or other dispute settlement procedure, investigation
                or enquiry by any government body, or any similar matter or
                proceeding (collectively, "PROCEEDINGS") against or involving
                the Debtor (whether in progress or threatened) which, if
                determined adversely to the Debtor, would adversely affect its
                business, property, financial condition or prospects or its
                ability to perform any of the provisions of this Agreement. No
                event has occurred which might give rise to any proceedings and
                there is no judgment, decree, injunction, rule, award or order
                of any governmental body outstanding against the Debtor which
                has or may have an adverse effect on its business, property,
                financial condition or prospects.

        (g)     Re Intellectual Property: All Intellectual Property applications
                and registrations are valid and in good standing and the Debtor
                is the owner of each of such applications and registrations.

6.      DEBTOR'S COVENANTS

        The Debtor covenants and agrees with the Secured Party that:

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

        (b)     Possession/Description: Forthwith upon request by the Secured
                Party, the Debtor shall deliver possession of the Collateral to
                the Secured Party and shall, if requested by the Secured Party,
                deliver forthwith to the Secured Party such further details
                respecting the Collateral and, if the Collateral includes
                fixtures or crops, or oil, gas or other minerals to be
                extracted, or timber to be cut, identification and legal
                description (in registerable form) of the lands concerned. Such
                further details and legal description so delivered shall be
                deemed to be contained in and form part of this Agreement.

7.      EVENTS OF DEFAULT

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        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 Debtor to pay when due any payment of any of
                the Obligations;

        (b)     the failure of the Debtor 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
                Debtor 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 Debtor to pay any of its debts
                or liabilities as the same fall due;

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

        (f)     the Debtor 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 Debtor of the Collateral or any part
                thereof;

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

        (i)     the Debtor taking any action or commencing any proceeding or any
                action or proceeding being taken or commenced by another person
                or persons against the Debtor in respect of the liquidation,
                dissolution or winding-up of the Debtor, 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 Debtor taking any action or commencing any proceeding or any
                action or proceeding being taken or commenced by another person
                or persons against the Debtor relating to the reorganization,
                readjustment, compromise or settlement of the debts owed by the
                Debtor to its creditors where such reorganization, readjustment,
                compromise or settlement shall affect a substantial portion of
                the Debtor'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 Debtor or such person or persons;

        (k)     the Debtor 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
                Debtor 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 Debtor or a
                distress or analogous action or proceeding being taken,
                commenced or issued against the Debtor or levied upon

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                or in respect of the Collateral or any part thereof, or any
                lien, trust claim or any other right or entitlement against or
                in respect of the Collateral or any part thereof becoming
                effective, including, without limitation, a warrant of distress
                of any rent in respect of any premises occupied by the Debtor or
                any premises in or upon which the Collateral or any part thereof
                may at any time be situate;

        (n)     a receiver, receiver and manager, agent, liquidator or other
                similar administrator being appointed in respect of the
                Collateral or any part thereof or the taking by a secured party,
                lien claimant, other encumbrancer, judgement creditor or a
                person asserting similar rights of possession of the Collateral
                or any part thereof;

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

        (p)     the Secured Party in good faith and having commercially
                reasonable grounds for believing that the ability of the Debtor
                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 Debtor to the Secured Party is impaired
                or that the Collateral is in danger of being lost, damaged,
                destroyed or confiscated.

8.      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
Debtor 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. In
addition, the Secured Party may take possession of the Collateral and enforce
any rights of the Debtor in respect of the Collateral by any method available in
or permitted by law and may require the Debtor to assemble the Collateral and
deliver or make the Collateral available to the Secured Party at any place as
may be designated by the Secured Party.

9.      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, subordination
agreements 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 Collateral (collectively, the
"EXPENSES") shall be payable by the Debtor to the Secured Party forthwith upon
demand, shall be deemed advanced to the Debtor by the Secured Party, shall bear
interest at a

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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 Debtor 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.

        The Debtor 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 Debtor to the Secured Party ("DESIGNATED
PERIOD").

        The Debtor 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
                Debtor 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.

10.     NOTICE OF DISPOSITION

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

11.     RECEIVER - APPOINTMENT

        The Secured Party may take proceedings in any court of competent
jurisdiction for the appointment of a receiver or a receiver and manager (the
"RECEIVER") of the Collateral or of any part thereof or may by instrument in
writing appoint any person to be a receiver of the Collateral or of any part
thereof and may remove any receiver so appointed by the Secured Party and
appoint another in his stead.

12.     RECEIVER - POWERS

        Any receiver appointed hereunder by instrument in writing shall have
power (a) to take possession of the Collateral or any part thereof and, without
liability or obligation to the Debtor,

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to maintain, preserve and protect the same; (b) to carry on or concur in
carrying on all or any part of the business or businesses of the Debtor; (c) to
borrow money which such receiver, in its sole discretion, determines is required
in connection with either or both of the powers provided for in paragraph (a)
and (b); and (d) to dispose of the Collateral in whole or in part, and any such
disposition may be by public sale (whether by auction, tender or otherwise),
private sale, lease or otherwise, and at such time and place and on such terms
and for such price and manner of payment thereof, all as such receiver may, in
its sole discretion, determine; provided that any such receiver shall be and is
deemed to be the agent of the Debtor and the Secured Party shall not in any way
be responsible for any misconduct, negligence or nonfeasance of any such
receiver.

13.     PROCEEDS OF DISPOSITION/DEFICIENCY

        Any proceeds of any disposition of any of the Collateral 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 Debtor. If such proceeds fail to satisfy the Obligations, the
Debtor shall be liable for the full amount of the deficiency resulting to the
Secured Party.

14.     GENERAL PROVISIONS

        (a)     Discharge: The Debtor 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
                Collateral, 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
                Debtor's expense, deliver to the Debtor 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 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

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                        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 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 Debtor and in any action
                brought by any assignee to enforce such rights, the Debtor shall
                not assert against such assignee any claim, defence, right of
                set-off, or the benefit of any equities which the Debtor 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, 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 Collateral 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

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                "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 Debtor hereunder shall bind the Debtor, its
                successors and assigns. Each reference to the Secured Party in
                this Agreement shall be deemed to include a reference to the
                Secured Party, its successors and assigns and each reference to
                the Debtor in this Agreement shall be deemed to include a
                reference to the Debtor, its successors and assigns.

        (k)     Re Liabilities: If more than one person executes this Agreement
                as Debtor, 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 Collateral 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 Debtor or any other person, firm or
                corporation in respect of same.

<PAGE>   13
                                     - 12 -

        (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 Debtor with full power to make,
                do, execute and deliver all such documents, assignments, acts,
                matters or things on behalf of the Debtor with the right to use
                the name of the Debtor 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 Debtor. The Debtor 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 Debtor 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)     Debtor's Receipt: The Debtor hereby acknowledges receipt of a
                fully signed copy of this Agreement.

        IN WITNESS WHEREOF the Debtor and the Secured Party have executed this
Agreement under their respective seals 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                         )

FOOTHILL CAPITAL CORPORATION by              )
its authorized signatories:                  )
                                             )
/s/ WILLIAM SHIAO                            )
-------------------------------------------- )
Authorized Signatory                         )
                                             )
                                             )
--------------------------------------------
Authorized Signatory                         )
                                             )<PAGE>   1
                                                                   EXHIBIT 10.69

                       GUARANTEE AND POSTPONEMENT OF CLAIM
                               ("this Guarantee")

             THIS GUARANTEE is dated as of December 14, 2000, and made by the
undersigned Canadian Subsidiary in favour of Foothill Capital Corporation, a
California corporation.

             WHEREAS:

A. Pursuant to the terms of a loan and security agreement as amended, restated,
supplemented or otherwise modified from time to time (the "Loan Agreement")
dated the date of this Guarantee by and between Foothill Capital Corporation, a
California corporation, of Suite 3000 West 2450 Colorado Avenue., Santa Monica,
California, 90404 (the "Lender") and FutureLink Corp., a Delaware corporation
(the "Borrower"), and certain other subsidiaries of the Borrower identified in
the Loan Agreement, the Lender has agreed to make Advances (as such term is
defined in the Loan Agreement) to the Borrower;

B. 1423280 Ontario Inc. (the "Canadian Subsidiary"), a corporation incorporated
under the laws of Ontario pursuant to the Ontario Business Corporations Act with
its registered and records office located at 100 King Street West, 1 First
Canadian Place, Suite 6600, Toronto, Ontario M5X 1B8, is a subsidiary of the
Borrower and as such derives economic benefit from the Advances to the Borrower;

C. As a condition of and as security for the Advances, the Lender requires the
Canadian Subsidiary to guarantee repayment of the Advances , interest thereon
calculated in accordance with the Loan Agreement and all other Obligations (as
such term is defined in the Loan Agreement) (collectively the "Debt") and to
guarantee the observance, payment and performance by the Borrower of all the
obligations, payments and otherwise to the Lender under the Loan Agreement, the
UK Loan Documents (as such term is defined in the Loan Agreement) and the Loan
Documents (as such term is defined in the Loan Agreement) (together with the
Debt, collectively the "Guaranteed Obligations");

   FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
acknowledged, the Canadian Subsidiary hereby agrees with the Lender as follows:

1. The Canadian Subsidiary irrevocably, absolutely and unconditionally
guarantees to the Lender the due payment by the Borrower to the Lender of the
Guaranteed Obligations and the due performance by the Borrower of the Guaranteed
Obligations.

2. This Guarantee is a continuing guarantee and is not limited by amount, time
or otherwise.

3. The Canadian Subsidiary hereby acknowledges that certain of the rights of
interest applicable as to the Guaranteed Obligations may be computed on the
basis of a year of 360 days or 365 days, as the case may be, and paid for the
actual number of days elapsed. For the purposes of the Interest Act (Canada),
whenever any interest is calculated using a rate based on a year of 360 days or
365 days, as the case may be, such rate determined pursuant to such calculation,
when expressed as an annual rate is equivalent to:

<PAGE>   2
                                     - 2 -

        (a)     the applicable rate based on a year of 360 days or 365 days, as
                the case may be,

        (b)     multiplied by the actual number of days in a calender year in
                which the period for such interest is payable (or compounded),
                and

        (c)     divided by 360 days or 365 days, as the case may be.

4. The liability of the Canadian Subsidiary hereunder shall bear interest from
the date written demand for payment is deemed to have been given by the Lender
to the Canadian Subsidiary at the Prime Interest Rate (defined below) plus 4%
per annum (the "Interest Rate"). "Prime Interest Rate" as used in this Guarantee
shall mean 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.

5. The Canadian Subsidiary will provide and grant forthwith to the Lender the
security described in the Loan Agreement, including, without limitation, a
Canadian Security Agreement (as such term is defined in the Loan Agreement) as
security for the obligations of the Canadian Subsidiary hereunder to the Lender.

6. Without releasing, discharging, limiting or otherwise affecting in whole or
in part the obligations and liabilities of the Canadian Subsidiary hereunder and
without the consent of or notice to the Canadian Subsidiary, the Lender may as
it sees fit and regardless of whether the Canadian Subsidiary's risk is
increased:

        (a)     grant time, renewals, extensions, indulgences, releases and
                discharges to the Borrower or any other person or persons now or
                hereafter liable to the Lender in respect of the Guaranteed
                Obligations,

        (b)     take or refrain from taking securities or collateral from the
                Borrower or any other person or persons or from perfecting such
                securities or collateral in connection with the Guaranteed
                Obligations,

        (c)     give up, modify, exchange, renew, release, discharge,
                compromise, realize, enforce or otherwise deal with or do any
                act or thing in respect of (with or without consideration) any
                and all collateral, mortgages or other security given by the
                Borrower or any other person or persons with respect to the
                Guaranteed Obligations,

        (d)     accept compromises, settlements or arrangements from the
                Borrower or any other person or persons,

        (e)     exercise any right or remedy which it may have against the
                Borrower or any other person or persons or with respect to any
                security for the Guaranteed Obligations, including judicial and
                nonjudicial foreclosure,

<PAGE>   3
                                     - 3 -

        (f)     apply money at any time received from the Borrower or any other
                person or persons or from securities upon such part of the
                Guaranteed Obligations as the Lender may see fit or change any
                such application in whole or in part from time to time as the
                Lender may see fit,

        (g)     give credit or make loans or advances to the Borrower, any
                guarantor or any other person, and discontinue, release,
                increase or otherwise vary such credit,

        (h)     otherwise deal with, or waive or modify its right to deal with,
                the Borrower and any other person or persons and securities as
                the Lender may see fit, or

and in no case shall the Lender be responsible for nor the Canadian Subsidiary
released from its obligations hereunder by any neglect or omission of the Lender
with respect to any of the foregoing.

7. The Canadian Subsidiary renounces all benefits of discussion and division.

8. This Guarantee will not be considered as wholly or partially satisfied by the
payment or liquidation at any time or times of any sum or sums of money for the
time being due or remaining unpaid to the Lender, and all dividends,
compositions, proceeds of security valued and payments received by the Lender
from the Borrower or from others or from estates shall be regarded for all
purposes as payments in gross without any right on the part of the Canadian
Subsidiary to claim in reduction of the liability under this Guarantee the
benefit of any such dividends, compositions, proceeds or payments or any
securities held by the Lender or proceeds thereof. Nothing but the performance
and payment in full of the Guaranteed Obligations shall release the Canadian
Subsidiary of its liability under the Guarantee.

9. All monies, advances, renewals and credits in fact borrowed or obtained by
the Borrower from the Lender under the Loan Agreement or any other Loan Document
(as defined in the Loan Agreement) or under any security held from time to time
by the Lender for the Guaranteed Obligations will be deemed to form part of the
Guaranteed Obligations, notwithstanding any lack or limitation of status or of
power, incapacity or disability of the Borrower or of the directors, partners or
agents thereof, or that the Borrower may not be a legal or suable entity, or any
irregularity, defect or informality in the borrowing or obtaining of such money,
advances, renewals or credits, the whole whether known to the Lender or not, and
any sum which may not be recoverable from the Canadian Subsidiary as guarantor
shall be recoverable from the Canadian Subsidiary as sole or principal debtor in
respect thereof and vice versa and shall be paid to the Lender as aforesaid.

10. This Guarantee is in addition to and not in substitution for any other
guarantee by any other person(s), at any time held by the Lender, and any
present or future obligation to the Lender incurred or arising otherwise than
under a guarantee provided by the Canadian Subsidiary or of any other obligant,
whether bound with or apart from the Borrower.

<PAGE>   4
                                     - 4 -

11. The Canadian Subsidiary hereby expressly authorizes and consents to the
Lender, from time to time, without giving notice to the Canadian Subsidiary, and
without in any way discharging, limiting or lessening the liability of the
Canadian Subsidiary under this Guarantee, omitting or refraining from proving
its full claim or any claim or omitting or refraining from valuing any security
held by it, in the event of the bankruptcy, liquidation, winding-up or other
distribution of assets of the Borrower or of any surety or guarantor for the
Guaranteed Obligations or if the Borrower or any surety or guarantor for the
Guaranteed Obligations shall make a bulk sale of its assets within the bulk
transfer provisions of any applicable legislation or any composition with
creditors or scheme of arrangement.

12. The Canadian Subsidiary will be bound by any account settled between the
Lender and the Borrower, and if no such account has been so settled any account
stated by the Lender will be accepted by the Canadian Subsidiary as prima facie
evidence of the amount which at the date of the account so stated is due by the
Borrower to the Lender or remains unpaid by the Borrower to the Lender, in the
absence of manifest error.

13. The Canadian Subsidiary will not at any time claim to be subrogated in any
manner to the rights and position of the Lender and will not claim the benefit
of any security at any time held by the Lender until the Lender has received
payment in full of all monies, interest and other amounts due to the Lender
under or relating to the Guaranteed Obligations.

14. The Lender will not be bound to exhaust its recourse against the Borrower or
any other person or persons or the security or other securities it may hold, or
any of them, before requiring payment by the Canadian Subsidiary, and the Lender
may enforce the various remedies available to it and may realize upon the
various securities or any part of such securities in such order as the Lender
may determine.

15. No suit based upon this Guarantee shall be instituted until demand for
payment has been made, and demand for payment shall be deemed to have been
effectively made upon the Canadian Subsidiary by delivery of written demand to
the Canadian Subsidiary at the address of the Canadian Subsidiary last known to
the Lender. Moreover, when demand for payment has been made, the Canadian
Subsidiary shall also be liable to the Lender for all legal fees and
disbursements (on a solicitor and his own client basis) incurred by or on behalf
of the Lender resulting from any action instituted on the basis of this
Guarantee.

16. All indebtedness of every nature and kind, whether now or hereafter in
existence, of the Borrower to the Canadian Subsidiary is hereby postponed to the
indebtedness of the Borrower to the Lender and, following the occurrence and
during the continuation of an Event of Default (as defined in the Loan
Agreement), all money received by the Canadian Subsidiary in respect of or on
account of any of the said indebtedness shall be received and held in trust for
the Lender and shall forthwith be paid to the Lender without the necessity of
demand. The assignment and postponement contained in this Guarantee is
independent of and severable from this Guarantee and shall remain in full force
and effect until repayment in full to the Lender of all of the Guaranteed
Obligations, notwithstanding that the liability of the Canadian Subsidiary under
this Guarantee may have been

<PAGE>   5
                                     - 5 -

discharged or terminated. No duty, obligation or liability shall arise on the
part of the Lender in connection with the aforesaid assignment, including,
without limitation, the obligation to ensure that the indebtedness and liability
of the Borrower to the Canadian Subsidiary does not become prescribed by statute
or otherwise invalidated or rendered unenforceable.

17. This Guarantee shall not be discharged, limited or otherwise affected by
anything done, suffered or permitted by the Lender in connection with the
Borrower, the Guaranteed Obligations or any security held by or granted to the
Lender to secure payment of the Guaranteed Obligations or otherwise. Without
limiting the generality of the foregoing, the obligations and liabilities of the
Canadian Subsidiary hereunder shall not be released, limited or otherwise
affected by:

        (a)     the insolvency or bankruptcy or ceasing to exist of the Borrower
                or any other person or persons,

        (b)     the appointment of a receiver for the assets of the Borrower or
                any other person or persons,

        (c)     any change in the name of the Borrower or in the reorganization,
                merger or amalgamation of the Borrower,

        (d)     the acquisition of the Borrower's business by any person or a
                change in control of the Borrower,

        (e)     any change whatsoever in the objects, capital structure,
                constitution or constating documents of the Borrower,

        (f)     any defect in, omission from, failure to file or register or
                defective filing or registration of any instrument under which
                the Lender has taken any security or collateral for payment of
                or performance or observance of any of the Guaranteed
                Obligations or of any other person who is or may become liable
                in respect of the Guaranteed Obligations, or

        (g)     any other circumstance which might otherwise constitute a legal
                or equitable defence available to, or a complete or partial
                discharge of, the Borrower in respect of the Guaranteed
                Obligations, or both,

but shall, notwithstanding the happening of any such event before or after the
execution of this Guarantee, continue to apply to the Guaranteed Obligations.

18. This Guarantee will be operative and binding upon the Canadian Subsidiary,
and possession of this instrument by the Lender or its assigns will be
conclusive evidence against the Canadian Subsidiary that this Guarantee was not
delivered in escrow or pursuant to any agreement that it should not be effective
until any conditions precedent or subsequent had been complied with.

<PAGE>   6
                                     - 6 -

19. The Canadian Subsidiary hereby waives notice of its acceptance of this
Guarantee, notice of transactions or obligations contracted or incurred by the
Borrower under this Guarantee, notice of default of the Borrower and demand for
payment upon the Borrower and the Canadian Subsidiary.

20. Taxes and Other Taxes

        (a)     Any and all payments to the Lender shall be made free and clear
                of and without deduction or withholding for any and all present
                or future taxes, levies, imposts, deductions, charges or
                withholdings, and liabilities with respect thereto (as such
                taxes, levies, imposts, deductions, charges, withholdings and
                liabilities being hereinafter referred to as "Taxes") imposed by
                the government of Canada (or any political subdivision or taxing
                authority thereof or therein), unless such Taxes are required by
                law or the administration thereof to be deducted or withheld. If
                the Canadian Subsidiary shall be required by law or the
                administration thereof to deduct or withhold any such Taxes from
                or in respect of any amount payable hereunder, then:

                (i)     the amount payable shall be increased as may be
                        necessary so that after making all required deductions
                        or withholdings (including deductions or withholdings
                        applicable to additional amounts paid under this
                        paragraph), the Lender shall receive an amount equal to
                        the sum it would have received if no such deduction or
                        withholding had been made, and

                (ii)    the Canadian Subsidiary forthwith shall pay the full
                        amount deducted or withheld to the relevant taxation or
                        other authority in accordance with applicable law.

        (b)     The Canadian Subsidiary agrees to pay forthwith any present or
                future stamp or documentary taxes or any other excise or
                property taxes, charges or similar levies (all such taxes,
                charges and levies being herein referred to as "Other Taxes")
                imposed by the government of Canada (or any political
                subdivision or taxing authority thereof or therein) which arise
                from any payment made by the Canadian Subsidiary hereunder or
                from the execution, delivery or registration of, or otherwise
                with respect to this Guarantee.

        (c)     The Canadian Subsidiary agrees to indemnify the Lender for the
                full amount of Taxes or Other Taxes not deducted or withheld and
                paid by the Canadian Subsidiary in accordance with subparagraphs
                20(a) or (b) hereof to the relevant taxation or other authority
                and any Taxes or Other Taxes imposed by any jurisdiction on the
                amounts payable by the Canadian Subsidiary under this paragraph
                20 paid by the Lender and any liability (including penalties,
                interest and expenses) arising therefrom or with respect
                thereto, whether or

<PAGE>   7
                                     - 7 -

                not any such Taxes or Other Taxes were correctly or legally
                asserted. Payment under this indemnification shall be made
                within fifteen (15) days from the date the Lender makes written
                demand therefor. A certificate as to the amount of such Taxes or
                Other Taxes and evidence of payment thereof submitted to the
                Canadian Subsidiary by the Lender shall be prima facie evidence
                of the amount due from the Canadian Subsidiary to the Lender.

        (d)     The Canadian Subsidiary shall furnish to the Lender the original
                or a certified copy of a receipt evidencing any payment of Taxes
                or Other Taxes made by the Canadian Subsidiary as soon as such
                receipt becomes available, together with a certificate of an
                officer of the Canadian Subsidiary, which certificate indicates
                the amount of Taxes or Other Taxes, as the case may be, withheld
                by the Canadian Subsidiary in respect of payments made
                hereunder.

        (e)     Without prejudice to the survival of any other agreement or
                obligation of the Canadian Subsidiary hereunder, the obligations
                of the Canadian Subsidiary under this paragraph 20 shall survive
                the termination of this Guarantee and the payment of the
                Guaranteed Obligations.

21. This Guarantee covers all agreements between the parties hereto concerning
the subject matter hereof, and none of the parties shall be bound by any
representation or promise made by any person relative thereto which is not
expressly embodied herein.

22. This Guarantee is governed by and shall be construed in accordance with the
laws of the Province of Ontario, and the Canadian Subsidiary attorns to the
exclusive jurisdiction of the courts of Ontario in respect of all disputes which
may arise under this Guarantee, and irrevocably agrees that such actions and
proceedings may be heard and determined in such courts, agrees to be bound by
any judgment thereof and irrevocably waives, to the fullest extent possible, the
defence of forum non conveniens, provided, however, that the Lender may serve
legal process in any manner permitted by law and that nothing herein shall limit
the Lender's right to bring proceedings against the Canadian Subsidiary or the
property or assets of the Canadian Subsidiary in the courts of any other
jurisdiction.

23. So long as any part of the Guaranteed Obligations or any related amounts
due, owing or accrued to the Lender remains unpaid or outstanding, the Canadian
Subsidiary assumes all responsibility for being and keeping itself informed of
the financial condition of the Borrower and of all circumstances bearing upon
the nature, scope and extent of the risk which the Canadian Subsidiary assumes
and incurs under this Guarantee.

24. The Canadian Subsidiary represents and warrants to the Lender, and
acknowledges that the Lender is, in part, relying upon such representations and
warranties that:

<PAGE>   8
                                     - 8 -

        (a)     the Canadian Subsidiary has full power and capacity to enter
                into this Guarantee and to carry out the obligations
                contemplated herein,

        (b)     this Guarantee has been approved by all necessary corporate
                action on the part of the Canadian Subsidiary, and, when
                executed and delivered, will constitute a legal, valid and
                binding obligation of the Canadian Subsidiary, enforceable in
                accordance with the terms of this Guarantee,

        (c)     the execution of this Guarantee will not contravene any
                provision of law, regulation, order or permit applicable to the
                Canadian Subsidiary, or result in a breach of or constitute a
                default under or require any consent under any agreement or
                instrument to which the Canadian Subsidiary is a party or by
                which the Canadian Subsidiary is bound,

        (d)     the Canadian Subsidiary is not in default under any agreement or
                instrument to which it is a party which in any way materially
                and adversely affects its business and there are no suits or
                judicial proceedings or proceedings before any governmental
                commission, board or other agency pending or to the knowledge of
                the Canadian Subsidiary threatened against the Canadian
                Subsidiary, and

        (e)     the Borrower is the registered holder of 2,426,191.387 common
                shares and 3045207 Nova Scotia Company is the registered holder
                of 7,500,000 Class C voting shares.

25. The Lender may assign its rights under this Guarantee without notice to the
Canadian Subsidiary, provided that the assignee has also obtained the rights and
obligations of the Lender under the Loan Agreement.

26. The Canadian Subsidiary acknowledges that there are reasonable grounds for
believing that, and the directors of the Canadian Subsidiary are of the opinion
that, the giving of the financial assistance provided by this Guarantee is in
the best interests of the Canadian Subsidiary and the Canadian Subsidiary
further covenants that it shall provide all required notices of disclosure and
shall do all other acts required by law within the time periods prescribed under
applicable law, including, without limitation, giving notice of disclosure of
this Guarantee to the shareholders of the Canadian Subsidiary pursuant to
Section 20 of the Ontario Business Corporations Act in the form attached hereto
as Schedule "A".

27. This Guarantee enures to the benefit of the Lender and its respective
successors and assigns and is binding on the Canadian Subsidiary and its
respective successors and assigns.

28. This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement. Delivery of an
executed counterpart of this Agreement by facsimile transmission shall be
equally as effective as delivery of an original executed counterpart of this
Agreement. Any party

<PAGE>   9
                                     - 9 -

delivering an executed counterpart of this Agreement by facsimile transmission
also shall deliver an original executed counterpart of this Agreement but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement.

29. In the event that the Lender obtains any judgment in Canadian dollars in
respect of any liability of the Canadian Subsidiary in United States dollars,
the Lender and the Canadian Subsidiary agree that the rate of exchange to be
used to determine the amount of the judgment shall be the rate of exchange
quoted by the bankers of the Lender as the rate at which the Lender could
purchase United States dollars with Canadian dollars on the banking day
preceding the date on which the judgment is rendered. The liability of the
Canadian Subsidiary in respect of any amount due in United States dollars shall,
despite any judgment in Canadian dollars, be discharged only to the extent that
on the banking day following receipt of the payment or satisfaction of the
judgment, the Lender, through its bankers, is able to purchase United States
dollars with Canadian dollars. If the amount of United States dollars purchased
by the Lender is less than the amount of United States dollars originally due to
it, the Canadian Subsidiary agrees, as a separate obligation, to indemnify the
Lender against such loss, and if the amount so purchased exceeds the sum
originally due to the Lender, the Lender agrees to remit such excess to the
Canadian Subsidiary.

30. If any provision herein is determined to be void, voidable or unenforceable,
in whole or in part, such determination shall not affect or impair or be deemed
to affect or impair the validity of any other provision hereof and all the
provisions hereof are hereby declared to be separate, severable and distinct.

31. In the event of a direct conflict between the terms and provisions of this
Guarantee and the Loan Agreement, it is the intention of the parties hereto that
both such documents shall be read together and construed, to the fullest extent
possible, to be in concert with each other. In the event of any actual
irreconcilable conflict that cannot be resolved as aforesaid, the terms and
provisions of the Loan Agreement shall control and govern; provided, however,
that the inclusion of additional obligations on the part of any Borrower (as
such term is defined in the Loan Agreement) and supplemental rights and remedies
in favour of the Lender shall not be deemed a conflict with the Loan Agreement.

32. The Lender's rights or remedies hereunder shall not be exhausted by the
exercise of any such rights or remedies or by any action or by any number of
successive actions against the Canadian Subsidiary in respect of the Canadian
Subsidiary's obligations hereunder.

33. Upon the bankruptcy, liquidation, winding-up or other distribution of assets
of the Borrower or any surety or guarantor for the Guaranteed Obligations, or in
the event that the Borrower or any surety or guarantor for the Guaranteed
Obligations shall make a bulk sale of its assets within the bulk transfer
provisions of any applicable legislation or any composition with creditors or
scheme of arrangement, the Lender shall have the right to prove and rank for the
full amount of the Guaranteed Obligations, including in its claim all sums paid
by the Canadian Subsidiary to the Lender under this Guarantee, and to receive
all dividends or other payments in respect of such claim, until all of the
Guaranteed Obligations has been paid in full, the Canadian Subsidiary hereby

<PAGE>   10
                                     - 10 -

assigning and transferring to the Lender until such time as all of the
Guaranteed Obligations has been paid in full all of its rights to prove and rank
for such sums paid by the Canadian Subsidiary to the Lender and to receive the
full amount of all dividends and payments in respect thereto.

34. The Canadian Subsidiary shall continue to be liable, up to the limit of the
liability under this Guarantee, less any payments made by the Canadian
Subsidiary to the Lender, for any balance which may be owing to the Lender by
the Borrower after payment of such dividends or other payments to the Lender. In
the event of the valuation by the Lender of any of its security and/or retention
thereof by the Lender, such valuation and/or retention shall not, as between the
Lender and the Canadian Subsidiary, be considered as payment or satisfaction or
reduction of the Guaranteed Obligations or any part thereof.

35. Waiver, etc.: No failure or delay on the part of the Lender to exercise any
right provided for in or contemplated by this Guarantee shall operate as a
waiver thereof unless made in writing and signed by the Lender and, in that
event, such waiver shall operate only as a waiver of the right expressly
referred to therein.

36. No Amendment: This Guarantee 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.

37. Further Assurances: The Canadian Subsidiary 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 the Lender or its
counsel, acting reasonably, for implementing and carrying out more effectually
the true intent and meaning of this Guarantee.

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

<PAGE>   11
                                     - 11 -

39. Receipt: The Canadian Subsidiary hereby acknowledges receipt of a fully
signed copy of this Guarantee.

    IN WITNESS WHEREOF the Canadian Subsidiary has executed, and delivered this
Guarantee under its corporate seal as of the date given 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>   12

                                  SCHEDULE "A"

                                     NOTICE

TO: The Shareholders of 1423280 Ontario Inc.

RE: 1423280 ONTARIO INC. (the "Corporation")

(a)     WHEREAS FutureLink Corp. is the registered holder of 2,426,191.387
        common shares and 3045207 Nova Scotia Company is the registered holder
        of 7,500,000 Class C voting shares, the list of shareholders on Exhibit
        "1" attached hereto are the registered holders of 2,199,965 exchangeable
        shares, and Glen C. Holmes is the registered holder of 35,000 Class A
        Preferred shares of the Corporation;

(b)     AND WHEREAS the Corporation is giving financial assistance to FutureLink
        Corp. in the form of a guarantee;

(c)     AND WHEREAS Section 20 of the Business Corporations Act (Ontario)
        provides that a corporation shall disclose to its shareholders all
        material financial assistance that the corporation gives to certain
        persons including a shareholder of the corporation;

        NOW THEREFORE NOTICE IS HEREBY GIVEN that the Corporation is giving
financial assistance to FutureLink Corp. in the form of a guarantee in favour of
Foothill Capital Corporation of payment of all debts and liabilities that
FutureLink Corp. has incurred or may incur to Foothill Capital Corporation.

        DATED this _____ day of ________________, 2000

1423280 ONTARIO INC. by its authorized
signatory:

-----------------------------------
Authorized Signatory

TO:  1423280 ONTARIO INC.

        Receipt of the within Notice is hereby acknowledged this_____ day of
________________, 2000.

____________ by its authorized signatory:

-----------------------------------
Authorized Signatory

<PAGE>   13
                                     - 13 -

                                   EXHIBIT "1"

                     LIST OF HOLDERS OF EXCHANGEABLE SHARES

                                    [INSERT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]