Document:

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                                                                   EXHIBIT 10.17

                               SECURITY AGREEMENT

     This security agreement (this "SECURITY AGREEMENT") dated November 3, 1999,
made by FutureLink Distribution Corp. (the "GUARANTOR"), a Alberta corporation
having its principal place of business and chief executive office at 250 - 6th
Avenue S.W., Suite 300, Calgary, Alberta, T2P 3H7, in favor of Transamerica
Business Credit Corporation, a Delaware corporation (the "LENDER"), having its
principal office at Riverway II, West Office Tower, 9399 West Higgins Road,
Rosemont, Illinois 60018.

     WHEREAS, concurrently herewith, the Guarantor is executing a guarantee of
even date herewith (as amended, supplemented or otherwise modified from time to
time, the "GUARANTEE"), in favor of the Lender in respect of the liabilities,
present or future, absolute or contingent, owed by FutureLink Corp., a Delaware
corporation (the"BORROWER").

     WHEREAS the Guarantor is the wholly owned subsidiary of the Borrower.

     NOW, THEREFORE, in consideration of the premises and to induce the Lender
to extend credit, the Guarantor hereby agrees with the Lender as follows:

SECTION 1 DEFINITIONS.

     As used herein, the following terms shall have the following meanings, and
shall be equally applicable to both the singular and plural forms of the terms
defined:

     "APPLICABLE LAW" shall mean the laws of the Province of Alberta (or any
     other jurisdiction whose laws are mandatorily applicable notwithstanding
     the parties' choice of Alberta law) or the laws of the Canada, whichever
     laws allow the greater interest, as such laws now exist or may be changed
     or amended or come into effect in the future;

     "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or public
     holiday or the equivalent for banks in Canada;

     "EVENT OF DEFAULT" shall mean any event specified in Section 5 of this
     Security Agreement;

     "GAAP" shall mean generally accepted accounting principles in Canada, as
     in effect from time to time;

     "LOAN DOCUMENTS" shall mean, collectively, this Security Agreement, the
     Guarantee, and each other document, agreement, certificate and instrument
     executed by the Guarantor and delivered to the Lender in connection
     herewith and therewith, as the same may be modified, extended, restated or
     supplemented from time to time;

     "MATERIAL ADVERSE CHANGE" shall mean, with respect to any Person, a
     material adverse change in the business, prospects, operations, results of
     operations, assets,

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     liabilities or condition (financial or otherwise) of such Person and its
     affiliates, taken as a whole;

     "MATERIAL ADVERSE EFFECT" shall mean, with respect to any Person, a
     material adverse effect on the business, prospects, operations, results of
     operations, assets, liabilities or condition (financial or otherwise) of
     such Person and its affiliates, taken as a whole;

     "OBLIGATIONS" shall mean all indebtedness, obligations and liabilities of
     the Guarantor under the Guarantee and under this Security Agreement,
     whether on account of principal, interest, indemnities, fees (including,
     without limitation, attorneys' fees, re-marketing fees, origination fees,
     collection fees and all other professionals' fees), costs, expenses, taxes
     or otherwise; and

     "PERSON" shall mean any individual, sole proprietorship, partnership, joint
     venture, trust, unincorporated organization, association, corporation,
     institution, entity, party or government (including any division, agency
     or department thereof), and the successors, heirs and assigns of each.

SECTION 2 CREATION OF SECURITY INTEREST; COLLATERAL.

(1)  The Guarantor hereby assigns and grants to the Lender a continuing general,
     first priority lien on and security interest in, all the Guarantor's right,
     title and interest in and to all the following collateral (the
     "Collateral"), to secure the payment and performance of all the
     Obligations. The Collateral consists of all equipment set forth on Schedule
     A hereto (the "Equipment"), together with all present and future additions,
     parts, accessories, attachments, substitutions, repairs, improvements and
     replacements thereof or thereto, and any and all proceeds thereof,
     including, without limitation, proceeds of insurance.

(2)  The parties acknowledge that the Borrower may engage in purchase money
     security financing with third parties in the future. The equipment financed
     by such third parties shall not constitute an attachment to Lender's
     Collateral for the purposes of this Agreement if such equipment can be (a)
     removed form Lender's Collateral without causing damage thereto; (b) such
     removal can be completed without diminishing the value of Lender's
     Collateral; and (c) such removal does not affect the marketability of
     Lender's Collateral.

(3)  The parties acknowledge that the Guarantor has rights in the Collateral,
     value has been given and that the security interest has attached.

     The Guarantor's Representations and Warranties.

(4)  GOOD STANDING; QUALIFIED TO DO BUSINESS. The Guarantor (a) is duly
     organized, validly existing and in good standing under the laws of the
     Province of Alberta, (b) has the requisite power and authority to own its
     properties and assets and to transact the businesses in which it is
     presently, or proposes to be, engaged, and (c) is duly qualified and
     authorized to do business and is in good standing in every jurisdiction in
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     which the failure to be so qualified could have a Material Adverse Effect
     on (i) the Guarantor, (ii) the Guarantor's ability to perform its
     obligations under the Loan Documents or (iii) the rights of the Lender
     hereunder.

(5)  DUE EXECUTION, ETC. The execution, delivery and performance by the
     Guarantor of each of the Loan Documents to which it is a party are within
     the powers of the Guarantor, do not contravene the organizational
     documents, if any, of the Guarantor, and do not (a) violate any law or
     regulation, or any order or decree of any court or governmental authority,
     (b) conflict with or result in a breach of, or constitute a default under,
     any material indenture, mortgage or deed of trust or any material lease,
     agreement or other instrument binding on the Guarantor or any of its
     properties, or (c) require the consent, authorization by or approval of or
     notice to or filing or registration with any governmental authority or
     other Person. This Security Agreement is, and each of the other Loan
     Documents to which the Guarantor is or will be a party, when delivered
     hereunder or thereunder, will be the legal, valid and binding obligation of
     the Guarantor enforceable against the Guarantor in accordance with its
     terms, except as enforceability may be limited by bankruptcy, insolvency or
     similar laws affecting creditors' right, generally and by general
     principles of equity.

(6)  SOLVENCY, NO LIENS. The Guarantor is solvent, is paying its debts as they
     become due and has sufficient capital to conduct its business; the fair
     saleable value of the Guarantor's assets is in excess of the total amount
     of its liabilities (including contingent liabilities) as they become
     absolute and matured; the security interests granted herein constitute and
     shall at all times constitute the first and only liens on the Collateral,
     except for Permitted Liens; and the Guarantor is, or will be at the time
     additional Collateral is acquired by it, the absolute owner of the
     Collateral with full right to pledge, sell, consign, transfer and create a
     security interest therein, free and clear of any and all claims or liens in
     favor of any other Person, except for Permitted Liens.

(7)  NO JUDGMENTS, LITIGATION. No judgments are outstanding against the
     Guarantor nor is there now pending or, to the best of Guarantor's knowledge
     after diligent inquiry, threatened any litigation, contested claim, or
     governmental proceeding by or against the Guarantor except judgments and
     pending or threatened litigation, contested claims and governmental
     proceedings which would not, in the aggregate, have a Material Adverse
     Effect on the Guarantor.

(8)  NO DEFAULTS. The Guarantor is not in default under any material contract,
     lease, or commitment to which it is a party or by which it is bound or the
     Guarantor has received duly executed waivers for any of its defaults in
     form and substance satisfactory to the Lender. The Guarantor knows of no
     dispute regarding any contract, lease, or commitment which could have a
     Material Adverse Effect on the Guarantor.

(9)  COLLATERAL LOCATIONS. On the date hereof, the Collateral is located at the
     place or places of business specified in Schedule A hereto.
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(10) NO EVENTS OF DEFAULT. No Event of Default has occurred and is continuing
     nor has any event occurred which, with the giving of notice or the passage
     of time, or both, would constitute an Event of Default.

(11) NO LIMITATION ON LENDER'S RIGHTS. Except as permitted herein, none of the
     Collateral is subject to contractual obligations that may restrict or
     inhibit the Lender's rights or abilities to sell or dispose of the
     Collateral or any part thereof after the occurrence of an Event of Default.

(12) Permitted Liens shall mean such of the following as to which no
     enforcement, collection, execution, levy, or foreclosure proceeding shall
     have been commenced: (a) liens for taxes, assessments, and other
     governmental charges or levies or the claims or demands of landlords,
     carriers, warehousemen, mechanics, laborers, materialmen, and other like
     Persons arising by operation of law in the ordinary course of business for
     sums which are not yet due and payable, or liens which are being contested
     in good faith by appropriate proceedings diligently conducted and with
     respect to which adequate reserves are maintained to the extent required
     by GAAP; (b) deposits or pledges to secure the payment of worker's
     compensation, unemployment insurance, or other social security benefits or
     obligations, public or statutory obligations, surety or appeal bonds, bid
     or performance bonds, or other obligations of a like nature incurred in
     the ordinary course of business; (c) licenses, restrictions, or covenants
     for or on the use of the Equipment which do not materially impair either
     the use of the Equipment in the operation of the business of the Guarantor
     or the value of the Equipment; and (d) attachment or judgment liens that do
     not constitute an Event of Default.

(13) PERFECTION AND PRIORITY OF SECURITY INTEREST. This Security Agreement
     creates a valid and, upon completion of all required filings of financing
     statements, a perfected and first priority and exclusive security interest
     in the Collateral (subject to Permitted Liens), securing the payment of all
     the Obligations.

(14) MODEL AND SERIAL NUMBERS. Schedule A hereto sets forth the true and
     correct model number and serial number of each item of equipment that
     constitutes Collateral.

(15) SHAREHOLDER. The Borrower is the registered owner of all of the issued and
     outstanding shares in the capital of the Guarantor.

SECTION 3 COVENANTS OF THE GUARANTOR.

(1)  EXISTENCE, ETC. The Guarantor will maintain its existence and its current
     yearly accounting cycle; shall maintain in full force and effect all
     licenses, bonds, franchises, leases, trademarks, patents, contracts and
     other rights necessary or desirable to the profitable conduct of its
     business; shall continue in, and limit its operations to, the same general
     lines of business as those presently conducted by it; and shall comply with
     all applicable laws and regulations of any federal, state or local
     governmental authority, except for such laws and regulations the violations
     of which would not, in the aggregate, have a Material Adverse Effect on the
     Guarantor.
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(2)  NOTICE TO THE LENDER. As soon as possible, and in any event within five
     days after the Guarantor learns of the following, the Guarantor will give
     written notice to the Lender of (a) any proceeding instituted or threatened
     to be instituted against the Guarantor in any federal, state, local, or
     foreign court or before any commission or other regulatory body (federal,
     state, local, or foreign) involving a sum, together with the sum involved
     in all other similar proceedings, in excess of $50,000 in the aggregate,
     (b) any contract that is terminated or amended and which has had or could
     reasonably be expected to have a Material Adverse Effect on the Guarantor,
     (c) the occurrence of any Material Adverse Change with respect to the
     Guarantor, and (d) the occurrence of any Event of Default or event or
     condition which, with notice or lapse of time or both, would constitute an
     Event of Default, together with a statement of the action which the
     Guarantor has taken or proposes to take with respect thereto.

(3)  MAINTENANCE OF BOOKS AND RECORDS. The Guarantor will maintain books and
     records pertaining to the Collateral in such detail, form, and scope as the
     Lender shall require in its commercially reasonable judgment. The Guarantor
     agrees that the Lender or its agents may enter upon the Guarantor's
     premises on reasonable written notice at any time and from time to time
     during normal business hours, and at any time upon the occurrence and
     continuance of an Event of Default, for the purpose of inspecting the
     Collateral and any and all records pertaining thereto.

(4)  INSURANCE. The Guarantor will maintain insurance on the Collateral under
     such policies of insurance, with such insurance companies, in such amounts
     and covering such risks as are at all times reasonably satisfactory to the
     Lender. All such policies shall be made payable to the Lender, in case of
     loss, under a standard non-contributory "LENDER" or "SECURED PARTY" clause
     and are to contain such other provisions as the Lender may reasonably
     require to protect the Lender's interests in the Collateral and to any
     payments to be made under such policies. True copies of all original
     insurance policies are to be delivered to the Lender, premium prepaid, with
     the loss payable endorsement in the Lender's favor, and shall provide for
     not less than thirty days' prior written notice to the Lender, of any
     material alteration, as determined in the sole discretion of the Lender, or
     cancellation of coverage. If the Guarantor fails to maintain such
     insurance, the Lender may arrange for (at the Guarantor's expense and
     without any responsibility on the Lender's part for) obtaining the
     insurance. Unless the Lender shall otherwise agree with the Guarantor in
     writing, the Lender shall have the sole right, in the name of the Lender or
     the Guarantor, to file claims under any insurance policies, to receive and
     give acquittance for any payments that may be payable thereunder, and to
     execute any endorsements, receipts, releases, assignments, reassignments or
     other documents that may be necessary to effect the collection, compromise
     or settlement of any claims under any such insurance policies.

(5)  TAXES. The Guarantor will pay, when due, all taxes, assessments, claims
     and other charges (herein "TAXES") lawfully levied or assessed against the
     Guarantor or the Collateral other than taxes that are being diligently
     contested in good faith by the Guarantor by appropriate proceedings
     promptly instituted and for which an adequate reserve is being maintained
     by the Guarantor in accordance with GAAP. If any taxes

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     remain unpaid after the date fixed for the payment thereof, or if any lien
     shall be claimed therefor, and such taxes are not being diligently
     contested in good faith by the Guarantor, then, without notice to the
     Guarantor, but on the Guarantor's behalf, the Lender may pay such taxes,
     and the amount thereof shall be included in the Obligations.

(6)  GUARANTOR TO DEFEND COLLATERAL AGAINST CLAIMS; FEES ON COLLATERAL. The
     Guarantor will defend the Collateral against all claims and demands of all
     Persons at any time claiming the same or any interest therein. Guarantor
     will not permit any notice creating or otherwise relating to liens on the
     Collateral or any portion thereof to exist or be on file in any public
     office except for Permitted Liens. The Guarantor shall promptly pay, when
     payable, all transportation, storage, and warehousing charges and license
     fees, registration fees, assessments, charges, permit fees, and taxes
     (municipal, state, and federal) which may now or hereafter be imposed upon
     the ownership, leasing, renting, possession, sale, or use of the
     Collateral, other than taxes on or measured by the Lender's income and
     fees, assessments, charges, and taxes which are being contested in good
     faith by appropriate proceedings diligently conducted and with respect to
     which adequate reserves are maintained to the extent required by GAAP.

(7)  NO CHANGE OF LOCATION, STRUCTURE OR IDENTITY. The Guarantor will not (a)
     change the location of its chief executive office or establish any place of
     business other than those specified herein or (b) move or permit the
     movement of any Collateral from the location specified in Schedule A
     hereto, except that the Guarantor may change its chief executive office and
     keep Collateral at other locations within Canada provided that the
     Guarantor has delivered to the Lender (i) prior written notice thereof and
     (ii) duly executed financing statements and other agreements and
     instruments (all in form and substance satisfactory to the Lender)
     necessary or, in the opinion of the Lender, desirable to perfect and
     maintain in favor of the Lender a first priority security interest in the
     Collateral. Notwithstanding anything to the contrary in the immediately
     preceding sentence, the Guarantor may keep any Collateral consisting of
     motor vehicles or rolling stock at any location in Canada provided that the
     Lender's security interest in any such Collateral is conspicuously marked
     on the certificate of title thereof and the Guarantor has complied with the
     provisions of Section 3(9).

(8)  USE OF COLLATERAL; LICENSES. The Collateral shall be operated by
     competent, qualified personnel in connection with the Guarantor's business
     purposes, for the purpose for which the Collateral was designed and in
     accordance with applicable operating instructions, laws and government
     regulations, and the Guarantor shall use every reasonably precaution to
     prevent loss or damage to the Collateral from fire and other hazards. The
     Collateral shall not be used or operated for personal, family or household
     purposes. The Guarantor shall procure and maintain in effect all orders,
     licenses, certificates, permits, approvals and consents required by
     federal, provincial or local laws or by any governmental body, agency or
     authority in connection with the delivery, installation, use and operation
     of the Collateral.

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(9)  FURTHER ASSURANCES. The Guarantor will, promptly upon request by the
     Lender, execute and deliver any document required by the Lender (including,
     without limitation, warehouseman or processor disclaimers, mortgagee
     waivers, landlord disclaimers, or subordination agreements with respect to
     the Obligations and the Collateral), give any notices, execute and file any
     financing statements, mortgages or other documents (all in form and
     substance satisfactory to the Lender), mark any chattel paper, deliver any
     chattel paper or instruments to the Lender, and take any other actions that
     are necessary or, in the opinion of the Lender, desirable to perfect or
     continue the perfection and priority of the Lender's security interest in
     the Collateral, to protect the Collateral against the rights, claims, or
     interests of any Persons, or to effect the purposes of this Security
     Agreement. The Guarantor hereby authorizes the Lender to file one or more
     financing or continuation statements, and amendments thereto, relating to
     all or any part of the Collateral without the signature of the Guarantor
     where permitted by law. A carbon, photographic or other reproduction of
     this Security Agreement or any financing statement covering the Collateral
     or any part thereof shall be sufficient as a financing statement where
     permitted by law. To the extent required under this Security Agreement, the
     Guarantor will pay all costs and expenses (including attorneys' fees)
     incurred in connection with any of the foregoing.

(10) NO DISPOSITION OF COLLATERAL. The Guarantor will not in any way hypothecate
     or create or permit to exist any lien, security interest, charge or
     encumbrance on or other interest except for Permitted Liens in any of the
     Collateral, except for the lien and security interest granted hereby, and
     the Guarantor will not sell, transfer, assign, pledge, collaterally assign,
     exchange or otherwise dispose of any of the Collateral without written
     notice to and consent of the Lender. In the event the Collateral, or any
     part thereof, is sold, transferred, assigned, exchanged, or otherwise
     disposed of in violation of these provisions, the security interest of the
     Lender shall continue in such Collateral or part thereof notwithstanding
     such sale, transfer, assignment, exchange or other disposition, and the
     Guarantor will hold the proceeds thereof in a separate account for the
     benefit of the Lender. Following such a sale, the Guarantor will transfer
     such proceeds to the Lender in kind.

(11) NO LIMITATION ON LENDER'S RIGHTS. The Guarantor will not enter into any
     contractual obligations which may restrict or inhibit the Lender's rights
     or ability to sell or otherwise dispose of the Collateral or any part
     thereof.

(12) PROTECTION OF COLLATERAL. Upon written notice to the Guarantor (provided
     that if an Event of Default has occurred and is continuing the Lender need
     not give any notice), the Lender shall have the right at any time to make
     any payments and do any other acts the Lender may deem necessary to protect
     its security interests in the Collateral, including, without limitation,
     the rights to satisfy, purchase, contest, or compromise any encumbrance,
     charge, or lien which, in the reasonable judgment of the Lender, appears to
     be prior to or superior to the security interests granted hereunder, and
     appear in, and defend any action or proceeding purporting to affect its
     security interests in, or the value of, any of the Collateral. The
     Guarantor hereby agrees to reimburse the Lender for all payments made and
     reasonable expenses incurred under
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     this Agreement including fees, expenses, and disbursements of attorneys and
     paralegals (including the allocated costs of in-house counsel) acting for
     the Lender, including any of the foregoing payments under, or acts taken to
     protect its security interests in, any of the Collateral, which amounts
     shall be secured under this Agreement, and agrees it shall be bound by any
     payment made or act taken by the Lender hereunder absent the Lender's gross
     negligence or willful misconduct. The Lender shall have no obligation to
     make any of the foregoing payments or perform any of the foregoing acts.

(13) DELIVERY OF ITEMS. The Guarantor will promptly (but in no event later than
     one Business Day) after its receipt thereof, deliver to the Lender any
     documents or certificates of title issued with respect to any property
     included in the Collateral, and any promissory notes, letters of credit or
     instruments related to or otherwise in connection with any property
     included in the Collateral, which in any such case come into the possession
     of the Guarantor, or shall cause the issuer thereof to deliver any of the
     same directly to the Lender, in each case with any necessary endorsements
     in favor of the Lender.

(14) FUNDAMENTAL CHANGES. The Guarantor shall not (a) amend or modify its name,
     unless the Guarantor delivers to the Lender thirty days prior to any such
     proposed amendment or modification written notice of such amendment or
     modification and within ten days before such amendment or modification
     delivers executed financing statements (in form and substance satisfactory
     to the Lender) or (b) merge or consolidate with any other entity or make
     any material change in its capital structure, in each case without the
     Lender's prior written consent which shall not be unreasonably withheld.

SECTION 4 FINANCIAL STATEMENTS.

     Until the payment and satisfaction in full of all Obligations, the
Guarantor shall deliver to the Lender the following financial information:

     (a)  ANNUAL FINANCIAL STATEMENTS. As soon as available, but not later than
          120 days after the end of each fiscal year of the Guarantor and it
          consolidated subsidiaries, the consolidated balance sheet, income
          statement and statements of cash flows and shareholders equity for the
          Guarantor and its consolidated subsidiaries (the "FINANCIAL
          STATEMENTS") for such year, reported on by independent certified
          public accountants without an adverse qualification; and

     (b)  QUARTERLY FINANCIAL STATEMENTS. As Soon as available, but not later
          than 60 days after the end of each of the first three fiscal quarters
          in any fiscal year of the Guarantor and its consolidated subsidiaries,
          the Financial Statements for such fiscal quarter, together with a
          certification duly executed by a responsible officer of the Guarantor
          that such Financial Statements have been prepared in accordance with
          GAAP and are fairly stated in all material respects (subject to normal
          year-end audit adjustments).
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SECTION 5 EVENTS OF DEFAULT.

     The occurrence of any of the following events shall constitute an Event of
Default hereunder:

          (a) the Guarantor shall fail to pay within five days of when due any
amount required to be paid by the Guarantor under or in connection with any
Note, the Guarantee and this Agreement;

          (b) any representation or warranty made or deemed made by the
Guarantor under or in connection with any Loan Document or any financial
statement shall prove to have been false or incorrect in any material respect
when made;

          (c) the Guarantor shall fail to perform or observe (i) any of the
terms, covenants or agreements contained herein or (ii) any other term,
covenant, or agreement contained in any Loan Document (other than the other
Events of Default specified in this Section) and such failure remains
unremedied for the earlier of fifteen days from (A) the date on which the Lender
has given the Guarantor written notice of such failure and (B) the date on which
the Guarantor knew or should have known of such failure;

          (d) any material provision of any Loan Document to which the Guarantor
is a party shall for any reason cease to be valid and binding on the Guarantor,
or the Guarantor shall so state;

          (e) dissolution, liquidation, winding up, or cessation of the
Guarantor's business, failure of the Guarantor generally to pay its debts as
they mature, admission in writing by the Guarantor of its inability generally to
pay its debts as they mature, or calling of a meeting of the Guarantor's
creditors for purposes of compromising any of the Guarantor's debts;

          (f) the commencement by or against the Guarantor of any bankruptcy,
insolvency, arrangement, reorganization, receivership, or similar proceedings
under any federal or state law and, in the case of any such involuntary
proceeding, such proceeding remains undismissed or unstayed for sixty days
following the commencement thereof, or any action by the Guarantor is taken
authorizing any such proceedings;

          (g) an assignment for the benefit of creditors is made by the
Guarantor, whether voluntary or involuntary (in the case of an involuntary
assignment by Guarantor, a cure period of sixty days shall be granted by
Lender), the appointment of a trustee, custodian, receiver, or similar official
for the Guarantor or for any substantial property of the Guarantor, or any
action by the Guarantor authorizing any such proceeding;
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          (h) the Guarantor shall default in (i) the payment of principal or
interest on any indebtedness in excess of $50,000 (other than the Obligations)
beyond the period of grace, if any, provided in the instrument or agreement
under which such indebtedness was created; or (ii) the observance or
performance of any other agreement or condition relating to any such
indebtedness or contained in any instrument or agreement relating thereto, or
any other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or holders of
such indebtedness to cause, with the giving of notice if required, such
indebtedness to become due prior to its stated maturity;

          (i) the Guarantor suffers or sustains a Material Adverse Change;

          (j) any tax lien, other than a Permitted Lien, is filed of record
against the Guarantor and is not bonded or discharged within thirty Business
Days;

          (k) any judgement which has had or could reasonably be expected to
have a Material Adverse Effect on the Guarantor and such judgment shall not be
stayed, vacated, bonded, or discharged within sixty days;

          (l) any material covenant, agreement, or obligation, as determined in
the sole discretion of the Lender, made by the Guarantor and contained in or
evidenced by any of the Loan Documents shall cease to be enforceable, or shall
be determined to be unenforceable, in accordance with its terms; the Guarantor
shall deny or disaffirm the Obligations under any of the Loan Documents or any
liens granted in connection therewith; or any liens granted on any of the
Collateral in favor of the Lender shall be determined to be void, voidable, or
invalid, or shall not be given the priority contemplated by this Agreement; or

          (m) there is a change, which change results from a single transaction
or series of related transactions, but not from the sale of newly issued
securities to investors, in more than 35% of the ownership of any equity
interests of the Guarantor on the date hereof or more than 35% of such
interests become subject to any contractual, judicial, or statutory lien,
charge, security interest, or encumbrance which is not discharged within 30
days.

SECTION 6.     REMEDIES.

     If any Event of Default occurs and continues:
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(a)  The Lender may, without prejudice to any of its other rights under any Loan
     Document or applicable law, declare all Obligations to be immediately due
     and payable (except with respect to any Event of Default set forth in
     Section 5 hereof, in which case all Obligations shall automatically become
     immediately due and payable without necessity of any declaration) without
     presentment, representation, demand of payment or protest, which are hereby
     expressly waived.

(b)  The Lender may take possession of the Collateral and, for that purpose may
     enter, with the aid and assistance of any person or persons, any premises
     where the Collateral or any part thereof is, or may be placed, and remove
     the same.

(c)  The obligation of the Lender, if any, to give additional (or to continue)
     financial accommodations of any kind to the Guarantor shall immediately
     terminate.

(d)  The Lender may exercise in respect of the Collateral, in addition to other
     rights and remedies provided for herein (or in any other Loan Document) or
     otherwise available to it, all the rights and remedies of a secured party
     under the Personal Property Security Act (Alberta) (the "Act") whether or
     not the Act applies to the affected Collateral and also may (i) require the
     Guarantor to, and the Guarantor hereby agrees that it will at its expense
     and upon request of the Lender forthwith, assemble all or part of the
     Collateral as directed by the Lender and make it available to the Lender at
     a place to be designated by the Lender that is reasonably convenient to
     both parties and (ii) without notice except as specified below, sell the
     Collateral or any part thereof in one or more parcels at public or private
     sale, at any of the Lender's offices or elsewhere, for cash, on credit or
     for future delivery, and upon such other terms as the Lender may deem
     commercially reasonable. The Guarantor agrees that, to the extent notice of
     sale shall be required by law, at least ten days' notice to the Guarantor
     of the time and place of any public sale or the time after which any
     private sale is to be made shall constitute reasonable notification. The
     Lender shall not be obligated to make any sale of Collateral regardless of
     notice of sale having been given. The Lender may adjourn any public or
     private sale from time to time by announcement at the time and place fixed
     therefor, and such sale may, without further notice, be made at the time
     and place to which it was so adjourned. In addition, the Lender may appoint
     by instrument in writing a receiver (which term as used in the Security
     Agreement includes a received and manager) or agent of the Collateral or
     may institute proceedings in any court of competent jurisdiction for the
     appointment of a receiver.

(e)  All cash proceeds received by the Lender in respect of any sale of,
     collection from, or other realization upon all or any part of the
     Collateral may, in the discretion of the Lender, be held by the Lender as
     collateral for, or then or at any time thereafter applied in whole or in
     part by the Lender against, all or
<PAGE>   12
                                      -12-

          any part of the Obligations in such order as the Lender shall elect.
          Any surplus of such cash or cash proceeds held by the Lender and
          remaining after the full and final payment of all the Obligations
          shall be promptly paid over to the Guarantor or to such other Person
          to which the Lender may be required under applicable law, or directed
          by a court of competent jurisdiction, to make payment of such surplus.

     (f)  Any receiver appointed by the Lender shall be vested with the rights
          and remedies which could have been exercised by the Lender or the
          Collateral and such other powers and discretions as are granted in the
          instrument of appointment and any instrument or instruments
          supplemental thereto. The identity of the receiver, any replacement
          thereof and any remuneration thereof shall be within the sole and
          unfettered discretion of the Lender.

     (g)  Any receiver appointed by the Lender shall act as agent for Lender for
          the purposes of taking possession of the Collateral, but otherwise and
          for all other purposes (except as provided below), as agent for the
          Guarantor.

     (h)  The Lender, in appointing or refraining from appointing any receiver
          shall not incur liability to the receiver, the Guarantor or otherwise
          and shall not be responsible for any misconduct or negligence of such
          receiver.

     (i)  No person dealing with the Lender or its agent or a receiver shall be
          required (i) to determine whether the Security Interest has become
          enforceable; (ii) to determine whether the powers which the Lender or
          its agent is purporting to exercise have become exercisable; (iii) to
          determine whether any money remains due to the Lender by the
          Guarantor; (iv) to determine the necessity or expediency of the
          stipulations and conditions subject to which any sale or lease shall
          be made; (v) to determine the propriety or regularity of any sale or
          of any other dealing by the Lender with the Collateral; or (vi) to see
          the application of any money paid to the Lender.

SECTION 7.      MISCELLANEOUS PROVISIONS.

(1)  NOTICES.  Except as otherwise provided herein, all notices, approvals,
     consents, correspondence or other communications required or desired to be
     given hereunder shall be given in writing and shall be delivered by
     overnight courier, hand delivery or certified or registered mail, postage
     prepaid, if to the Lender, then to Technology Finance Division, 76
     Batterson Park Road, Farmington, Connecticut 06032, Attention: Assistant
     Vice President, Lease Administration, with a copy to the Lender at Riverway
     II, West Office Tower, 9399 West Higgin Road, Rosemont, Illinois 60018,
     Attention: Legal Department or such other address as shall be designated by
     the Lender to the Guarantor in accordance herewith, and if to the
     Guarantor, then to 250-6th Avenue S.W., Suite 300, Calgary, Alberta, T2P
     3H7, Attention: Legal Department, or such other address as shall be
     designated by the Guarantor to the Lender in accordance herewith. All such
     notices and correspondence shall be effective when received.
<PAGE>   13
                                      -13-

(2)  GUARANTOR REMAINS LIABLE. Anything herein to the contrary notwithstanding,
     (a) the Guarantor shall remain liable, under the contracts and agreements
     included in the Collateral to the extent set forth therein to perform all
     of its duties and obligations thereunder to the same extent as if this
     Security Agreement had not been executed, (b) the exercise by the Lender of
     any of the rights hereunder shall not release the Guarantor from any if its
     duties or obligations under the contracts and agreements included in the
     Collateral, and (c) the Lender shall not have any obligation or liability
     under the contracts and agreements included in the Collateral by reason of
     this Security Agreement, nor shall the Lender be obligated to perform any
     of the obligations or duties of the Guarantor thereunder or to take any
     action to collect or enforce any claim for payment assigned hereunder.

(3)  LENDER APPOINTED ATTORNEY-IN-FACT. The Guarantor hereby irrevocably
     appoints the Lender the Guarantor's attorney-in-fact, with full authority
     in the place and stead of the Guarantor and in the name of the Guarantor or
     otherwise, from time to time in the discretion of the Lender, to take any
     action and to execute any instrument which the Lender may deem necessary or
     advisable to accomplish the purpose of this Security Agreement, including,
     without limitation:

     (a)  to obtain and adjust insurance required to be paid to the Lender
          hereunder;

     (b)  upon the occurrence and during the continuance of an Event of Default,
          to ask, demand, collect, sue for, recover, compromise, receive and
          give acquittance and receipts for moneys due and to become due under
          or in respect of any of the Collateral;

     (c)  to receive, endorse and collect any drafts or other instruments,
          documents and chattel paper, in connection with clause (a) or (b)
          above; and

     (d)  upon the occurrence and during the continuance of an Event of Default,
          to file any claims or take any action or institute any proceedings
          which the Lender may deem necessary or desirable for the collection of
          any of the Collateral or otherwise to enforce the rights of the Lender
          with respect to any of the Collateral.

(4)  HEADINGS. The headings in this Security Agreement are for purposes of
     reference only and shall not affect the meaning or construction of any
     provision of this Security Agreement.

(5)  ASSIGNMENTS. The Guarantor shall not have the right to assign the Guarantee
     or this Security Agreement or any interest therein. The Lender may assign
     its rights and delegate its obligations under the Guarantee or this
     Security Agreement.

(6)  AMENDMENTS, WAIVERS AND CONSENTS. Any amendment or waiver of any provision
     of this Security Agreement and any consent to any departure by the
     Guarantor from any provision of this Security Agreement shall be effective
     only by a writing signed by the Lender and shall bind and benefit the
     Guarantor and the Lender and their

<PAGE>   14
                                      -14-

     respective successors and assigns, subject, in the case of the Guarantor,
     to the first sentence of Section 5(5).

(7)  INTERPRETATION OF AGREEMENT. Time is of the essence in each provision of
     this Security Agreement of which time is an element. All terms not defined
     herein or in the Guarantee shall have the meaning set forth in the
     applicable Act, except where the context otherwise requires. To the extent
     a term or provision of this Security Agreement conflicts with the Guarantee
     and is not dealt with herein with more specificity, this Security Agreement
     shall control with respect to the subject matter of such term or provision.
     Acceptance of or acquiescence in a course of performance rendered under
     this Security Agreement shall not be relevant in determining the meaning of
     this Security Agreement even though the accepting or acquiescing party had
     knowledge of the nature of the performance and opportunity for objection.

(8)  CONTINUING SECURITY INTEREST. This Security Agreement shall create a
     continuing security interest in the Collateral and shall (a) remain in full
     force and effect until the indefeasible payment in full of the Obligations,
     (b) be binding upon the Guarantor and its successors and assigns and (c)
     inure, together with the rights and remedies of the Lender hereunder, to
     the benefit of the Lender and its successors, transferees and assigns.

(9)  REINSTATEMENT. To the extent permitted by law, this Security Agreement and
     the rights and powers granted to the Lender hereunder and under the Loan
     Documents shall continue to be effective or be reinstated if at any time
     any amount received by the Lender in respect of the Obligations is
     rescinded or must otherwise be restored or returned by the Lender upon the
     insolvency, bankruptcy, dissolution, liquidation or reorganization of the
     Guarantor or upon the appointment of any receiver, intervenor, conservator,
     trustee or similar official for the Guarantor or any substantial part of
     its assets, or otherwise, all as though such payments had not been made.

(10) SURVIVAL OF PROVISIONS. All representations, warranties and covenants of
     the Guarantor contained herein shall survive the execution and delivery of
     this Security Agreement, and shall terminate only upon the full and final
     payment and performance by the Guarantor of the Obligations secured hereby.

(11) INDEMNIFICATION. The Guarantor agrees to indemnify and hold harmless the
     Lender and its directors, officers, agents, employees and counsel from and
     against any and all costs, expenses, claims, or liability incurred by the
     Lender or such Person hereunder and under any other Loan Document or in
     connection herewith or therewith, unless such claim or liability shall be
     due to willful misconduct or gross negligence on the part of the Lender or
     such Person.

(12) TAXES. Any and all payments to the Lender by the Guarantor hereunder or
     under any of the other Loan Documents 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 (all such taxes, levies, imposts, deductions, charges,
     withholdings and liabilities being hereinafter referred to

<PAGE>   15

                                      -15-

     as "TAXES") imposed by Canada, the United States or any other relevant
     jurisdiction (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 Guarantor shall be required by
     law or the administration thereof to deduct or withhold any such Taxes from
     or in respect of any sum payable hereunder, (i) the sum 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 receives an
     amount equal to the sum it would have received if no such deduction or
     withholding had been made; (ii) the Guarantor shall make such deductions or
     withholdings; and (iii) the Guarantor forthwith shall pay the full amount
     deducted or withheld to the relevant taxation or other authority in
     accordance with applicable law.

(13) GOVERNING LAW. The validity, interpretation and enforcement of this
     Security Agreement shall be governed by and construed by and construed in
     accordance with the laws of the Province of Alberta without giving effect
     to the conflict of law principles thereof.

(14) DELAYS; PARTIAL EXERCISE OF REMEDIES. No delay or omission of the Lender to
     exercise any right or remedy hereunder, whether before or after the
     happening of any Event of Default, shall impair any such right or shall
     operate as a waiver thereof or as a waiver of any such Event of Default. No
     single or partial exercise by the Lender of any right or remedy shall
     preclude any other or further exercise thereof, or preclude any other right
     or remedy.

(15) ENTIRE AGREEMENT. The Guarantor and the Lender agree that this Security
     Agreement and the Schedules hereto are the complete and exclusive statement
     and agreement between the parties with respect to the subject matter
     hereof, superseding all proposals and prior agreements, oral or written,
     and all other communications between the parties with respect to the
     subject matter hereof.

<PAGE>   16
                                      -16-

       IN WITNESS WHEREOF, the undersigned Guarantor has caused this Security
Agreement to be duly executed and delivered by its proper and duly authorized
officer as of the date first set forth above.

                                        FUTURELINK DISTRIBUTION
                                        CORP., AS GUARANTOR

                                        By: /s/ Raghu Kilambi
                                           ------------------------------
                                             Name:  Raghu Kilambi
                                             Title: CFO

                                        TRANSAMERICA BUSINESS CREDIT
                                        CORPORATION

                                        By: /s/ GARY P. MORO
                                           ------------------------------
                                             Name:  Gary P. Moro
                                             Title: Senior Vice President<PAGE>   1
                                                                   EXHIBIT 10.18
                                                Master Agreement Number ________

                      MASTER LEASE AND FINANCING AGREEMENT

This Master Lease and Financing Agreement (together with Exhibits A through E
attached hereto and hereby made a part hereof, this "Master Agreement"), dated
as of _______________, is entered into by and between Compaq Capital
Corporation, a Delaware corporation ("Lessor"), and FutureLink Corp., a Delaware
corporation ("Lessee"). Capitalized terms used in this Master Agreement without
definition have the meanings ascribed to them in Section 31.

1.  PURPOSE OF MASTER AGREEMENT.  The purpose of this Master Agreement is to
set forth the general terms and conditions upon which (a) Lessor shall lease to
Lessee and Lessee shall lease from Lessor items of Hardware, Software or both
(such Hardware and Software being collectively referred to as "Equipment", and
each such lease of Equipment being referred to as a "Lease"), and (b) Lessor
shall provide financing to Lessee (each such financing transaction being
referred to as a "Financing") for software program license fees, maintenance
fees, fees for other services and other one-time charges ("Financed Items")
Lessee desires to finance hereunder. In connection with its execution of this
Master Agreement, Lessee shall deliver to Lessor an Officer's Certificate in
form and substance acceptable to Lessor, executed by a duly authorized officer
of Lessee and certifying as to, among other things, Lessee's authority to enter
into this Master Agreement and Leases and Financings hereunder and the
authority of Lessee's officers or representatives specified therein to execute
this Master Agreement and all other Fundamental Agreements.

2.  ALTERNATIVE COMMENCEMENT PROCEDURES.  Subject to the other terms and
conditions contained in this Master Agreement and the applicable Schedule or
Advance Pricing Agreement. Lessee may, at its option, enter into individual
Leases and Financings with Lessor under either or both of the following
procedures:
     A. TRADITIONAL PROCEDURE:  (a) EXECUTION OF SCHEDULE. Lessor and Lessee
mutually agree to enter into a Lease, a Financing or both by executing a
Schedule in the form of Exhibit A with such changes as Lessor and Lessee shall
have agreed to as conclusively evidenced by their execution thereof. Each such
Schedule shall specifically identify (by serial number or other identifying
characteristics) the items of Equipment to be leased under such Schedule (other
than items of System Software, which shall be deemed to be items of Software
leased under the Schedule pursuant to which the related items of Hardware are
leased), and the Financed Items to be financed under such Schedule. Each
Schedule, when executed by both Lessee and Lessor, together with this Master
Agreement, shall constitute a separate and distinct Lease, a separate and
distinct Financing, or a separate and distinct Lease and a separate and
distinct Financing, as the case may be, enforceable according to its terms. In
the event of any conflict between the terms of this Master Agreement and such
Schedule, the provisions of the Schedule shall govern.
     (b) ACCEPTANCE: INITIAL TERM OF LEASES AND TERM OF FINANCINGS. Lessee
shall accept the Equipment subject to a Lease and the Financed Items subject to
a Financing in accordance with section 3. The Initial Term of each Lease and,
if applicable, the Term of any related Financing evidenced by a Schedule
executed pursuant to this Section 2.A shall begin on the Acceptance Date of the
Equipment subject to such Lease and shall continue for the period described in
the applicable Schedule. The Term of each Financing evidenced by a Schedule
executed pursuant to this Section 2.A that is unrelated to any Lease shall
begin on the Acceptance Date for the related Financed Items and shall continue
for the period described in the applicable Schedule.
     (c) ADJUSTMENTS TO SCHEDULE. Lessee acknowledges that the Total Cost of
Equipment and Financed Items and the related Rent payments set forth in any
Schedule executed pursuant to this Section 2.A may be estimates, and if the
final invoice from the Seller specifies a Total Cost that is more or less than
the estimated Total Cost set forth in the Schedule. Lessee hereby authorizes
Lessor to adjust the applicable Total Cost and Rent payment on the Schedule to
reflect the final invoice amount (the "Final Invoice Amount"). However, if the
Final Invoice Amount exceeds the estimated Total Cost by more than 5%. Lessor
will notify Lessee and obtain Lessee's prior written approval of the
aforementioned adjustments. If Lessee fails to so approve any such adjustments
within 15 days of Lessor's request, then the affected Schedule shall terminate
without penalty to either Lessor or Lessee and Lessee shall be solely
responsible for all obligations arising under the applicable Purchase
Documents, including, without limitation, the obligation to purchase Equipment
and pay Financed Items. All references in this Master Agreement and any
Schedule to Total Cost and Rent shall mean the amounts thereof specified in the
applicable Schedule, as adjusted pursuant to this paragraph. Lessee also
acknowledges that the Equipment and Financed Items described in a Schedule may
differ from the description of the Equipment and Financed Items set forth in
the related Acceptance Certificate and actually accepted by Lessee. Lessee
hereby authorizes Lessor to conform the description of the Equipment and
Financed Items set forth in any Schedule to the description thereof in the
related Acceptance Certificate. All references in the Master Agreement and any
Schedule to the Equipment subject to a Lease and the Financed Items subject to
a Financing shall mean the Equipment and Financed Items described in the
applicable Schedule, as conformed to the related Acceptance Certificate
pursuant to this paragraph.
     B. FUNDING CONSOLIDATION PROCEDURE. (a) EXECUTION OF ADVANCE PRICING
AGREEMENT.  Lessor and Lessee mutually agree to enter into one or more Leases,
Financings or both by executing, from time to time, an Advance Pricing
Agreement in the form of Exhibit B with such changes as Lessor and Lessee shall
have agreed to as conclusively evidenced by their execution thereof. Subject to
the following provisions of this Section 2.B, such Advance Pricing Agreement
shall constitute a commitment on the part of Lessor, during the Commitment
Period specified therein (i) to purchase Equipment of the type(s) described
therein and enter into one or more Leases of the same with Lessee at the lease
rates sets forth therein, and (ii) to fund Financed Items of the type(s)
described therein and enter into one or more Financings of the same with Lessee
at the financing rates set forth therein: provided, however, that Lessor shall
under no circumstances be obligated to purchase Equipment or fund Financed
Items if (x) such purchase or funding would require Lessor to expend moneys in
excess of the Amount Available specified in the Advance Pricing Agreement less
the aggregate amount previously paid or committed to be paid by Lessor to
acquire Equipment or fund Financed Items during such Commitment Period, or (y)
and Lessee Default shall have occurred and be continuing under any Lease or
Financing or any event shall have occurred and be continuing under any Lease or
Financing or any event shall have occurred and be continuing which, with the
giving of notice or the passage of time or both, would constitute a Lessee
Default under any Lease or Financing, or (z) Lessee shall have failed to
deliver to Lessor any financial statements in accordance with the provisions of
paragraph (f) below or any material adverse change shall have occurred in
Lessee's financial or operating condition, as determined by Lessor in its sole
discretion, after the date of the last financial statements of Lessee delivered
to Lessor prior to the execution and delivery of such Advance Pricing Agreement.
     (b) LESSOR'S PURCHASE OF EQUIPMENT AND FUNDING OF FINANCED ITEMS.  Subject
to the provisions of this Section 2.B and the applicable Advance Pricing
Agreement, Lessor shall, at Lessee's request made during the Commitment Period
specified in such Advance Pricing Agreement (i) purchase Equipment of the
type(s) described therein and enter into a Lease of such Equipment with Lessee,
and (ii) fund Financed Items of the type(s) described therein and enter into a
Financing with Lessee relating to such Financed Items. Until such time as
Lessee shall have executed and delivered to Lessor a Consolidating Schedule in
accordance with paragraph (d) below, each such Lease or Financing shall be
governed by the terms of this Master Agreement, the applicable Advance Lessor
by Lessee pursuant to paragraph (c) below. Each such Acceptance Certificate
shall specifically identify (by serial number or other identifying
characteristics) the items of Equipment to be leased thereunder (other than
items of System Software, which shall be deemed to be items of Software leased
together with the related items of Hardware) and the Financed Items to be
financed thereunder. Until Lessee shall have executed and delivered to Lessor a
Consolidating Schedule, each such Acceptance Certificate, when executed and
delivered by Lessee and accepted by Lessor, together with this Master Agreement
and the applicable Advance Pricing Agreement, shall constitute a separate and
distinct Lease, a separate and district Financing, or a separate and distinct
Lease and a separate and distinct Financing, or a separate and distinct Lease
and a separate and distinct Financing, as the case may be enforceable according
to its terms. In the event of any conflict among the terms of such documents,
the provisions of such Acceptance Certificate shall control over conflicting
provisions in such Advance Pricing Agreement or this Master Agreement and the
provisions of such Advance Pricing Agreement shall control over conflicting
provisions in this Master Agreement.
     (c) ACCEPTANCE: INITIAL TERM OF LEASES AND TERM OF FINANCINGS.  Lessee
shall accept the Equipment subject to a Lease and the Financed Items subject to
a Financing in accordance with Section 3. The Initial Term of each Lease and,
if applicable, the Term of any related Financing evidenced by an Advance
Pricing Agreement and an Acceptance Certificate shall begin on the Acceptance
Date of the Equipment subject to such Lease and shall continue for the period
determined pursuant to such Advance Pricing Agreement. The Term of each
Financing evidenced by an Advance Pricing Agreement and an Acceptance
Certificate that is unrelated to any Lease shall begin on the Acceptance Date
for the related Financed Items and shall continue for the period determined
pursuant to such Advance Pricing Agreement.
<PAGE>   2
     (d) Periodic Consolidation of Leases and Financings. All Leases and
Financings commenced during a Consolidation Period (as specified in the
applicable Advance Pricing Agreement) pursuant to this Section 2.B shall be
consolidated into a single Schedule (a "Consolidating Schedule") in the form of
Exhibit C with such changes as Lessor and Lessee shall have agreed to as
conclusively evidenced by their execution thereof. Lessor shall prepare and
deliver to Lessee a Consolidating Schedule as of the close of each applicable
Consolidation Period. Lessee agrees to execute and deliver each Consolidating
Schedule to Lessor within 10 days after its receipt thereof from Lessor. From
and after Lessee's execution and delivery to Lessor of a Consolidating
Schedule, the Consolidating Schedule shall supersede the applicable Acceptance
Certificates and the Advance Pricing Agreement with respect to all Leases and
Financings commenced during the Consolidation Period to which such
Consolidating Schedule relates, and all such Leases shall be deemed to be a
single, separate and distinct Lease and all such Financings shall be deemed to
be a single, separate and distinct Financing, in each case governed by such
Consolidating Schedule and this Master Agreement and enforceable in accordance
with its terms. In the event of any conflict between the terms of this Master
Agreement and such Consolidating Schedule, the provisions of the Consolidating
Schedule shall govern.

     (e) Failure of Lessee to Deliver Consolidating Schedule. If Lessee fails
to execute and deliver to Lessor any Consolidating Schedule within 10 days
after its receipt thereof, Lessor may exercise its rights and remedies under
Section 21 and 22 of this Master Agreement arising as a result of such failure,
either immediately or at any time during the Initial Term of the Leases or the
Term of the Financings to which such Consolidating Schedule relates. No delay
in exercising such rights or remedies shall operate as a waiver thereof. Lessee
acknowledges and agrees that Rent with respect to such Leases and Financings
shall be payable in the amounts and at the times determined pursuant to the
applicable Advance Pricing Agreement and Acceptance Certificates, regardless of
whether Lessee shall have received such Consolidating Schedule from Lessor or
executed and delivered the same to Lessor as of the time any such payment is
due.

     (f) Financial Statements. Lessee shall, at all times during which any
Advance Pricing Agreement is effective, deliver to Lessor its quarterly and
annual financial statements no later than 45 days after the end of each of
Lessee's fiscal quarters or 90 days after the end of each of Lessee's fiscal
years, as applicable. Such annual financial statements shall be audited and
certified by Lessee's independent certified public accountants.

3.   ACCEPTANCE OF EQUIPMENT AND FINANCED ITEMS. (a) General. Lessee shall
unconditionally and irrevocably accept all Equipment under a Lease and, if
applicable, all related Financed Items subject to a Financing as soon as such
Equipment is delivered and inspected by Lessee or, if acceptance requirements
for such Equipment, related Financed Items or both are specified in the
applicable Purchase Documents, as soon as such requirements are met. Lessee
shall evidence such acceptance by executing and delivering to Lessor a properly
completed Acceptance Certificate in substantially the form of (i) Exhibit D if
the Lease or the Lease and the related Financing, as the case may be, is
evidenced by a Schedule executed pursuant to Section 2.A. or (ii) Exhibit E if
the Lease or the Lease and the related Financing, as the case may be, is being
commenced pursuant to an Advance Pricing Agreement executed pursuant to Section
2.B. Lessee agrees (y) to inspect all Equipment as soon as reasonably
practicable after the delivery thereof to Lessee or, if acceptance requirements
for such Equipment or any related Financed Items are specified in the
applicable Purchase Documents, as soon as reasonably practicable after being
advised by the Supplier that such requirements have been met, and (z) to
complete, execute and deliver to Lessor such Acceptance Certificate as soon as
reasonably practicable after its satisfactory completion of such inspection. In
the case of a Financing of Financed Items unrelated to any Equipment subject to
a Lease, Lessee shall unconditionally and irrevocably accept such Financed
Items as soon as it shall have become liable to pay for such Financed Items,
and shall complete, execute and deliver to Lessor an Acceptance Certificate in
substantially the form of Exhibit D or Exhibit E (as applicable) as soon as
reasonably practicable thereafter.

     (b) E-mail Acceptance. For its convenience and at its option, Lessee may
accept Equipment and Financed Items by electronic mail in accordance with this
paragraph, in lieu of the execution and physical delivery of Acceptance
Certificates provided for in paragraph (a) above. Subject to the terms and
conditions set forth below, a Valid E-mail Acceptance Certificate shall
constitute an original and authentic written Acceptance Certificate, duly
executed and delivered by an authorized representative of Lessee. A "Valid
E-mail Acceptance Certificate" means an electronic facsimile of an Acceptance
Certificate in substantially the form of Exhibit D or Exhibit E (as applicable)
properly completed and sent by an Authorized Lessee Representative from his or
her Authorized Lessee E-mail Address to an Authorized Lessor E-mail Address by
an electronic mail message confirming Lessee's acceptance of the Equipment or
Financed Items described therein. Upon request, Lessor shall provide to Lessee
electronic file copies of Exhibits D and E for Lessee's use under this
paragraph. The Authorized Lessee Representatives and their corresponding
Authorized Lessee E-mail Addresses and the Lessee Acceptance Confirmation Fax
Number are as specified in Section 29 or as designated by Lessee in a written
notice executed by a duly authorized officer of Lessee and delivered to Lessor
in accordance with Section 29. The Authorized Lessor E-mail Address(es) are
specified in Section 29. Lessee may unilaterally modify any of the Authorized
Lessee Representatives and Authorized Lessee E-mail Addresses and the Lessee
Acceptance Confirmation Fax Number by written notice of the modification
executed by a duly authorized officer of Lessee and delivered to Lessor in
accordance with Section 29. Lessor may unilaterally modify the Authorized
Lessor E-mail Address by written notice of the modification executed by a duly
authorized officer of Lessor and delivered to Lessee in accordance with Section
29. Upon Lessor's receipt of a Valid E-mail Acceptance Certificate from Lessee,
Lessor shall transmit to Lessee by confirmed facsimile transmission to the
Lessee Acceptance Confirmation Fax Number, a notice acknowledging Lessor's
receipt of the Valid E-mail Acceptance Certificate from Lessee. A Valid E-mail
Acceptance Certificate shall become effective and constitute Lessor's
unconditional and irrevocable acceptance of the Equipment or Financed Items
described therein, as of the Acceptance Date specified therein, at the end of
the second business day following the day on which Lessor shall have
transmitted such notice unless Lessee shall have delivered a written notice to
Lessor in accordance with Section 29 revoking such Valid E-mail Acceptance
Certificate prior to the end of such second business day. Lessor's transmission
of such notice shall constitute Lessor's acknowledgement and acceptance of the
Valid E-mail Acceptance Certificate. Lessee expressly waives any claim or
defense that any Valid E-mail Acceptance Certificate which was sent and
became effective in accordance with the above procedures does not constitute an
original and authentic written Acceptance Certificate, duly executed and
delivered by Lessee.

4.   LESSEE'S END-OF-LEASE-TERM OPTIONS; AUTOMATIC EXTENSION. Lessee shall have
the following options in respect of each Lease at the end of each of the
Initial Term, any Renewal Term and any optional extension of the Initial Term
or any Renewal Term.

     A. PURCHASE OPTION. Lessee may elect, by delivering to Lessor an
End-of-Term Notice at least 90 days prior to the expiration of the Initial Term,
any Renewal Term or any optional extension of the Initial Term or any Renewal
Term, to purchase any or all Units of Equipment then subject to such Lease
(other than items of Software that may not be sold by Lessor under the terms of
any applicable License Agreement) for an amount equal to the Fair Market Value
of such Units of Equipment as of the end of the Then Applicable Term, provided
no Lessee Default shall have occurred and be continuing. In the event of such an
election, Lessee shall pay such amount to Lessor, in immediately available
funds, on or before the last day of the The Applicable Term. If Lessee shall
have so elected to purchase any of the Units of Equipment, shall have so paid
the applicable purchase price and shall have fulfilled the terms and conditions
of this Master Agreement, then on the last day of the Then Applicable Term (i)
the Lessee with respect to such Units of Equipment shall terminate and, except
as provided in Section 27, Lessee shall be relieved of all of its obligations in
favor of Lessor with respect to such Units of Equipment, and (ii) Lessor shall
transfer all of its interest in such Units of Equipment to Lessee "AS IS, WHERE
IS," without any warranty, express or implied, from Lessor, other than the
absence of any liens or claims by or through Lessor. In the event Lessor and
Lessee are unable to agree on the Fair Market Value of any Units of Equipment ,
Lessor shall, at Lessee's expense, select an independent appraiser to
conclusively determine such amount.

     B. RENEWAL OPTION. Lessee may elect, by delivering to Lessor an
End-of-Term Notice at least 90 days prior to the expiration of the Initial
Term, any Renewal Term, or any optional extension of the Initial Term or any
Renewal Term, to renew the Lease with respect to any or all Units of Equipment
then subject to such Lease (other than items of Software that may not be
re-released by Lessor under the terms of any applicable License Agreement) for
an amount equal to the Fair Rental Value of such Units of Equipment as of the
end of the Then Applicable Term. In the event of such an election, Lessee
shall enter into a mutually agreeable renewal agreement with Lessor ("Renewal
Agreement") on or before the last day of the Then Applicable Term confirming
the Units of Equipment as to which the Lease is to be renewed, the period for
which the Lease is to be renewed (the "Renewal Term"), and the amount of Rent
and the times at which such Rent is to be payable during the Renewal Term. In
the event Lessor and Lessee are unable to agree on the Fair Rental Value of any
Units of Equipment, Lessor shall, at Lessee's expense, select an independent
appraiser to conclusively determine such amount.

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      C. RETURN. Lessee may elect, by delivering to Lessor an End-of-Term
Notice at least 90 days prior to the expiration of the Initial Term, any Renewal
Term or any optional extension of the Initial Term or any Renewal Term, to
return any or all of the Units of Equipment then subject to such Lease in
accordance with Section 9 of this Master Agreement.

      D. OPTIONAL EXTENSION. Lessee may elect, by omitting to deliver to Lessor
an End-of-Term Notice at least 90 days prior to the expiration of the Initial
Term or any Renewal Term, to extend the Initial Term or such Renewal Term, as
the case may be. In that event, the Initial Term or such Renewal Term shall,
without any additional notice or documentation, be automatically extended for
successive calendar months with respect to all items of Equipment then subject
to such Lease through the end of the calendar month falling at least 90 days
after the date Lessee shall have delivered to Lessor an End-of-Term Notice
with respect to such Lease. For each calendar month that the Then Applicable
Term of such Lease is so extended, Lessee shall pay to Lessor Rent in an amount
equal to the monthly Rent payment in effect immediately prior to such extension
(or the appropriate pro rata portion of the Rent payment then in effect in the
case of Rent payable other than on a monthly basis), and all other provisions
of this Master Agreement and the applicable Schedule shall continue to apply.

      If Lessee shall have delivered to Lessor an End-of-Term Notice with
respect to a Lease, but shall have subsequently failed to comply with its
obligations arising from its elections specified therein (e.g., Lessee shall
have failed, on or before the last day of the Then Applicable Term (i) to pay
Lessor the purchase price for Equipment to be purchased in accordance with
Section 4.A above, (ii) to execute a Renewal Agreement with respect to
Equipment as to which the Lease is to be renewed in accordance with Section 4.B
above, or (iii) to return to Lessor Equipment to be returned in accordance with
Section 4.C above), then the Then Applicable Term of such Lease shall, without
any additional notice or documentation, be automatically extended for
successive calendar months with respect to all items of Equipment as to which
Lessee shall have so failed to comply with its obligations through the end of
the calendar month in which Lessee shall have complied with such obligations.
For each calendar month that the Then Applicable Term of any Lease is so
extended, Lessee shall pay to Lessor Rent in an amount equal to the monthly
Rent payment in effect immediately prior to such extension (or the appropriate
pro rata portion of the Rent payment then in effect in the case of Rent payable
other than on a monthly basis), and all other provisions of this Master
Agreement and the applicable Schedule shall continue to apply. Notwithstanding
any of the provisions of this Section 4 to the contrary, if any Lessee Default
shall have occurred and be continuing at any time during the last 90 days of
the Then Applicable Term of any Lease, Lessor may cancel any Renewal Term or
optional or other automatic extension of the Then Applicable Term immediately
upon written notice to Lessee.

5. RENT; LATE CHARGES; ADVANCE RENT. As rent ("Rent") for the Equipment under
any Lease and the Financed Items under any Financing, Lessee agrees to pay the
amounts specified in the applicable Schedule on the due dates specified in the
applicable Schedule. Lessee agrees to pay Lessor interest on any Rent payment
or other amount due hereunder that is not paid within 10 days of its due date,
at the rate of 1-1/2% per month (or such lesser rate as is the maximum rate
allowable under applicable law). Lessee shall pay to Lessor, with respect to
each Lease or Financing, the Advance Rent specified on the applicable Schedule,
if any. Any payment of Advance Rent shall be credited against the first Rent
payment payable by Lessee under the applicable Schedule and any excess Advance
Rent will be credited against the last Rent payment(s) payable by Lessee with
respect to the Initial Term of the applicable Lease or Financing. Advance Rent
shall be refunded to Lessee without interest only if Lessor declines to sign
the applicable Schedule.

6. LEASES AND FINANCINGS NON-CANCELABLE; NET LEASES; WAIVER OF DEFENSES TO
PAYMENT. IT IS SPECIFICALLY UNDERSTOOD AND AGREED THAT EACH LEASE AND FINANCING
HEREUNDER SHALL BE NON-CANCELABLE, AND THAT EACH LEASE HEREUNDER IS A NET
LEASE. LESSEE AGREES THAT IT HAS AN ABSOLUTE AND UNCONDITIONAL OBLIGATION TO
PAY ALL RENT AND OTHER AMOUNTS WHEN DUE. LESSEE IS NOT ENTITLED TO ABATE OR
REDUCE RENT OR ANY OTHER AMOUNT DUE, OR TO SET OFF ANY CHARGE AGAINST ANY SUCH
AMOUNT. LESSEE HEREBY WAIVES ANY RECOUPMENT, CROSS-CLAIM, COUNTERCLAIM OR ANY
OTHER DEFENSE AT LAW OR IN EQUITY TO ANY RENT PAYMENT OR OTHER AMOUNT DUE WITH
RESPECT TO ANY LEASE OR FINANCING, WHETHER ANY SUCH DEFENSE ARISES OUT OF THIS
MASTER AGREEMENT, ANY SCHEDULE, ANY CLAIM BY LESSEE AGAINST LESSOR, LESSOR'S
ASSIGNEES OR SUPPLIER, OR OTHERWISE. IF THE EQUIPMENT OR ANY FINANCED ITEM IS
NOT PROPERLY INSTALLED, DOES NOT OPERATE OR INTEGRATE AS REPRESENTED OR
WARRANTED BY SUPPLIER OR IS UNSATISFACTORY FOR ANY REASON WHATSOEVER, LESSEE
SHALL MAKE ANY CLAIM ON ACCOUNT THEREOF SOLELY AGAINST SUPPLIER AND SHALL
NEVERTHELESS PAY ALL SUMS DUE WITH RESPECT TO EACH LEASE AND EACH FINANCING.

7. ASSIGNMENT OF PURCHASE DOCUMENTS. Lessee assigns to Lessor all of Lessee's
right, title and interest in and to (a) the Equipment described in each
Schedule, and (b) the Purchase Documents relating to such Equipment. Such
assignment of the Purchase Documents is an assignment of rights only; nothing
in this Master Agreement shall be deemed to have relieved Lessee of any
obligation or liability under any of the Purchase Documents, except that, as
between Lessee and Lessor, Lessor shall pay for the Equipment within 30 days
after Lessee's delivery to Lessor of a properly completed and executed
Acceptance Certificate and all other documentation necessary to establish
Lessee's acceptance of such Equipment under the related Lease. Lessee
represents and warrants that it has reviewed and approved the Purchase
Documents. In addition, if Lessor shall so request, Lessee shall deliver to
Lessor a document acceptable to Lessor whereby Seller acknowledges and provides
any required consent to such assignment. For the avoidance of doubt, Lessee
covenants and agrees that it shall at all times during the Total Term of each
Lease comply in all respects with the terms of any License Agreement relating
to any Equipment leased thereunder. IT IS ALSO SPECIFICALLY UNDERSTOOD AND
AGREED THAT NEITHER SUPPLIER NOR ANY SALESPERSON OF SUPPLIER IS AN AGENT OF
LESSOR, NOR ARE THEY AUTHORIZED TO WAIVE OR ALTER ANY TERMS OF THIS MASTER
AGREEMENT OR ANY SCHEDULE.

8. ASSIGNMENT OF SUPPLIER WARRANTIES. To the extent permitted, Lessor hereby
assigns to Lessee, for the Total Term of any Lease, all Equipment warranties
provided by any Supplier in the applicable Purchase Documents. Lessee shall
have the right to take any action it deems appropriate to enforce such
warranties provided such enforcement is pursued in Lessee's name and at its
expense. In the event Lessee is precluded from enforcing any such warranty in
its name, Lessor shall, upon Lessee's request, take reasonable steps to enforce
such warranty. In such circumstances, Lessee shall, promptly upon demand,
reimburse Lessor for all out-of-pocket expenses incurred by Lessor in enforcing
the Supplier warranty. Any recovery resulting from any such enforcement efforts
shall be divided among Lessor and Lessee as their interests may appear.

9. EQUIPMENT RETURN REQUIREMENTS. On or before the last day of the Total Term
of each Lease (and any other time Lessee is required to return Equipment to
Lessor under the terms of this Master Agreement or any Schedule), Lessee shall
pack the Equipment to the returned to Lessor in accordance with the
manufacturer's guidelines and deliver such Equipment to Lessor at any
destination within the continental United States designated by Lessor. In the
case of any item of Software to be returned to Lessor, Lessee shall also
deliver to Lessor the original Certificate of Authenticity issued by the
licensor of such Software, if any. Alternatively, Lessee may deliver any such
Certificate of Authenticity to Lessor on or at any time after the Acceptance
Date for such Software. All dismantling, packaging, transportation, in-transit
insurance and shipping charges shall be borne by Lessee. All Equipment shall be
returned to Lessor in the same condition and working order as when delivered to
Lessee, reasonable wear and tear excepted, and shall qualify for maintenance
service by the Supplier at its then standard rates for Equipment of that age,
if available. Lessee shall be responsible for, and shall reimburse Lessor
promptly on demand for, any cost incurred by Lessor to qualify the Equipment
for the Supplier's maintenance service or, if not available, to return the
Equipment to good working condition.

10. EQUIPMENT USE AND MAINTENANCE. Lessee is solely responsible for the
selection, installation, operation and maintenance of the Equipment and all
costs related thereto, including shipping charges. Lessee shall at all times
operate and maintain the Equipment in good working order, repair, condition and
appearance, and in accordance with the manufacturer's specifications and
recommendations. On reasonable prior notice to Lessee, Lessor and Lessor's
agents shall have the right, during Lessee's normal business hours, to enter
the premises where the Equipment is located for the purpose of inspecting the
Equipment and observing its use. If Lessor shall have provided to Lessee any
tags or identifying labels, Lessee shall, at its expense, affix and maintain in
a prominent position on each item of Equipment such tags or labels to indicate
Lessor's ownership of the Equipment. Except in the case of PC Equipment and
Software, Lessee shall, at its expense, enter into and maintain and enforce at
all times during the Total Term of each Lease a maintenance

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<PAGE>   4
agreement to service and maintain the related Equipment, upon terms and with a
provider reasonably acceptable to Lessor.

11.  EQUIPMENT OWNERSHIP; LIENS; LOCATION. As between Lessor and Lessee, Lessor
is the sole owner of the Equipment and has sole title thereto. Lessee shall not
make any representation to any third-party inconsistent with Lessor's sole
ownership of the Equipment. Lessee covenants that it will not pledge or encumber
the Equipment or Lessor's interest in the Equipment in any manner whatsoever nor
create or permit to exist any levy, lien or encumbrance thereof or thereon
except those created by or through Lessor. The Equipment shall remain Lessor's
personal property whether or not affixed to realty and shall not become a
fixture or be made to become a part of any real property on which it is placed
without Lessor's prior written consent. Lessee shall maintain the Equipment so
that it may be removed from any building in which it is placed without any
damage to the building or the Equipment. Lessee may relocate any Equipment from
the Equipment Location specified in the applicable Schedule to another of its
business locations within the United States upon prior written notice to Lessor
specifying the new Equipment Location, provided Lessee remains in possession and
control of the Equipment.

12.  ALTERATIONS AND ADDITIONS TO EQUIPMENT. Lessee shall make no alterations or
additions to the Equipment, except those that (a) will not void any warranty
made by the Supplier of the Equipment, result in the creation of any security
interest, lien or encumbrance on the Equipment or impair the value or use of the
Equipment either at the time made or at the end of the Total Term of the
applicable Lease, and that are readily removable without damage to the Equipment
("Optional Additions"), or (b) are required by any applicable law regulation or
order. All additions to the Equipment or repairs made to the Equipment, except
Optional Additions, become a part thereof and Lessor's property at the time
made; Optional Additions which have not been removed prior to the return of the
Equipment shall become Lessor's property upon such return.

13.  INSURANCE. Lessee agrees to keep the Equipment insured at Lessee's expense
against all risks of loss from any cause whatsoever, including without
limitation, theft and damage. Lessee agrees that such insurance shall name
Lessor as a loss payee and cover not less than the Stipulated Loss Value of the
Equipment. Lessee also agrees that it shall carry commercial general liability
insurance in an amount not less than $2,000,000 total liability per occurrence
and cause Lessor and its affiliates to be named additional insureds under such
insurance. Each policy shall provide that the insurance cannot be canceled
without at least 30 days prior written notice to Lessor. Lessee shall provide to
Lessor (a) on or prior to the Acceptance Date for each Lease, and from time to
time thereafter, certificates of insurance evidencing such insurance coverage
throughout the Total Term of each Lease, and (b) upon Lessor's request, copies
of the insurance policies. If Lessee fails to provide Lessor with such evidence,
then Lessor will have the right, but not the obligation, to purchase such
insurance protecting Lessor at Lessee's expense. Lessee's expense shall include
the full premium paid for such insurance and any customary charges, costs or
fees of Lessor. Lessee agrees to pay such amounts in substantially equal
installments allocated to each Rent payment (plus interest on such amounts at
the rate of 1-1/2% per month or such lesser rate as is the maximum rate
allowable under applicable law).

14.  RISK OF LOSS. In the event any Casualty Loss shall occur, on the next Rent
payment date Lessee shall, at its option (a) pay Lessor the Stipulated Loss
Value of the Equipment suffering the Casualty Loss, or (b) substitute and
replace each item of Equipment suffering the Casualty Loss with an item of
Substitute Equipment. If Lessee shall elect to pay the Stipulated Loss Value of
the Equipment suffering a Casualty Loss, upon Lessor's receipt in full of such
payment the applicable Lease shall terminate as it relates to such Equipment
and, except as provided in Section 27, Lessee shall be relieved of all
obligations under the applicable Lease as it relates to such Equipment. If
Lessee shall elect to replace Equipment suffering a Casualty Loss with items of
Substitute Equipment (i) the applicable Lease shall continue in full force and
effect without any abatement of Rent with such Substitute Equipment thereafter
being deemed to be Equipment leased thereunder, and (ii) Lessee shall deliver to
Lessor a bill of sale or other documentation, in either case in form and
substance satisfactory to Lessor, in which Lessee shall represent and warrant
that it has transferred to Lessor good and marketable title to all Substitute
Equipment, free and clear of all liens, encumbrances and claims of others. Upon
Lessor's receipt of such payment of Stipulated Loss Value in full, or such bill
of sale or other documentation, as the case may be, Lessor shall transfer to
Lessee all of Lessor's interest in the Equipment suffering the Casualty Loss "AS
IS, WHERE IS," without any warranty, express or implied, from Lessor, other than
the absence of any liens or claims by or through Lessor. In the event of any
repairable damage to any Equipment, the Lease shall continue with respect to
such Equipment without any abatement of Rent and Lessee shall at its expense
promptly cause such Equipment to be repaired to the condition it is required to
be maintained in pursuant to Section 10. Lessee shall notify Lessor of any
Casualty Loss or repairable damage to any Equipment as soon as reasonably
practicable after the date of any such occurrence.

15.  TAXES. Lessor shall report and pay all Taxes now or hereafter imposed or
assessed by governmental body, agency or taxing authority upon the purchase,
ownership, delivery, installation, leasing, rental, use or sale of the
Equipment, the Rent or other charges payable hereunder, or otherwise upon or in
connection with any Lease or Financing, whether assessed on Lessor or Lessee,
other than any such Taxes required by law to be reported and paid by Lessee.
Lessee shall promptly reimburse Lessor for all such Taxes paid by Lessor,
together with any penalties or interest in connection therewith attributable to
Lessee's acts or failure to act, excluding (a) Taxes on or measured by the
overall gross or net income or items of tax preference of Lessor, (b) as to any
Lease or the related Equipment. Taxes attributable to the period after the
return of such Equipment to Lessor, and (c) Taxes imposed as a result of a sale
or other transfer by Lessor of any portion of its interest in any Lease or
Financing or in any Equipment except for a sale or other transfer to Lessee or a
sale or other transfer occurring after and during the continuance of any Lessee
Default.

16.  GENERAL INDEMNITY. Lessee shall indemnify and hold harmless Lessor, its
employees, officers, directors, agents and assignees and, if requested by
Lessor, defend Lessor, its employees, officers, directors, agents and assignees
from and against any and all Claims arising directly or indirectly out of or in
connection with any matter involving this Master Agreement, the Equipment or any
Lease or Financing, including but not limited to (a) the selection, manufacture,
purchase, acceptance, rejection, ownership, delivery, lease, financing,
possession, maintenance, use, condition, return or operation of any Equipment of
Financed Items or the enforcement of Lessor's rights under any Lease or
Financing; (b) any latent defect or other defect in any Equipment or Financed
Item, whether or not discoverable by Lessor or by Lessee; (c) any patent
trademark or copyright  infringement involving any Equipment or Financed Item;
(d) the condition of any Equipment or Financed Item arising or existing at any
time during the Total Term of any Lease or the Term of any Financing; and (e)
any breach by Lessee of any representation, warranty or covenant contained in
any Fundamental Agreement. Notwithstanding the foregoing, Lessee shall have no
obligation to indemnify or defend against any Claim arising solely as a result
of Lessor's gross negligence or willful misconduct.

17.  TAX BENEFIT INDEMNITY. Each Lease is entered into on the assumption that
Lessor is the owner of the Equipment for tax purposes and is entitled to certain
federal and state tax benefits available to an owner of Equipment (collectively,
"Tax Benefits"), including without limitation, accelerated cost recovery system
deductions for 5-year property and deductions for interest incurred by Lessor to
finance the purchase of Equipment available under the Code. Lessee represents,
warrants and covenants to Lessor that (a) Lessee is not a tax-exempt entity (as
defined in Section 168(h) of the Code), (b) all Equipment will be used solely
within the United States, and (c) Lessee will take no position inconsistent with
the assumption that Lessor is the owner of the Equipment for federal and state
tax purposes. If, due to any act or omission of Lessee or any party acting
through Lessee, or the breach or inaccuracy of any representation, warranty or
covenant of Lessee contained in any Fundamental Agreement, Lessor reasonably
determines that it cannot claim, is not allowed to claim, loses or must
recapture any or all of the Tax Benefits otherwise available with respect to the
Equipment subject to any Lease (a "Tax Loss"), then Lessee shall, promptly upon
demand, pay to Lessor an amount sufficient to provide Lessor the same after-tax
rate of return and aggregate after-tax cash flow through the end of the Then
Applicable Term of such Lease that Lessor would have realized but for such Tax
Loss.

18.  COVENANT OF QUIET ENJOYMENT. So long as no Lessee Default exists, and no
event shall have occurred and be continuing which, with the giving of notice or
the passage of time or both, would constitute a Lessee Default, neither Lessor
nor any party acting or claiming through Lessor, by assignment or otherwise,
will disturb Lessee's quiet enjoyment of the Equipment during the Total Term of
the related Lease.

19.  DISCLAIMERS AND LESSEE WAIVERS. LESSEE LEASES THE EQUIPMENT FROM LESSOR
"AS IS, WHERE IS". IT IS SPECIFICALLY UNDERSTOOD AND AGREED THAT (A) EXCEPT AS
EXPRESSLY SET FORTH IN SECTION 18, LESSOR MAKES ABSOLUTELY NO REPRESENTATIONS
OR WARRANTIES
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<PAGE>   5
WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY REPRESENTATION
OR WARRANTY WITH RESPECT TO THE DESIGN, COMPLIANCE WITH SPECIFICATIONS, QUALITY,
OPERATION, OR CONDITION OF ANY EQUIPMENT OR FINANCED ITEMS (OR ANY PART
THEREOF), THE MERCHANTABILITY OR FITNESS OF EQUIPMENT OR FINANCED ITEMS FOR A
PARTICULAR PURPOSE, OR ISSUES REGARDING PATENT INFRINGEMENT, TITLE AND THE LIKE;
(B) LESSOR SHALL NOT BE DEEMED TO HAVE MADE, BE BOUND BY OR LIABLE FOR, ANY
REPRESENTATION, WARRANTY OR PROMISE MADE BY THE SUPPLIER OF ANY EQUIPMENT OR
FINANCED ITEMS (EVEN IF LESSOR IS AFFILIATED WITH SUCH SUPPLIER); (C) LESSOR
SHALL NOT BE LIABLE FOR ANY FAILURE OF ANY EQUIPMENT OR FINANCED ITEMS OR ANY
DELAY IN THE DELIVERY OR INSTALLATION THEREOF; (D) LESSEE HAS SELECTED ALL
EQUIPMENT AND FINANCED ITEMS WITHOUT LESSOR'S ASSISTANCE; AND (E) LESSOR IS NOT
A MANUFACTURER OF ANY EQUIPMENT. IT IS FURTHER AGREED THAT LESSOR SHALL HAVE NO
LIABILITY TO LESSEE, LESSEE'S CUSTOMERS, OR ANY THIRD PARTIES FOR ANY
INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS
MASTER AGREEMENT OR ANY SCHEDULE OR CONCERNING ANY EQUIPMENT OR FINANCED ITEMS,
OR FOR ANY DAMAGES BASED ON STRICT OR ABSOLUTE TORT LIABILITY OR, EXCEPT TO THE
EXTENT CONSTITUTING A LESSOR DEFAULT, LESSOR'S NEGLIGENCE; PROVIDED, HOWEVER,
THAT NOTHING IN THIS MASTER AGREEMENT SHALL DEPRIVE LESSEE OF ANY RIGHTS IT MAY
HAVE AGAINST ANY PERSON OTHER THAN LESSOR. LESSOR AND LESSEE AGREE THAT THE
LEASES AND THE FINANCINGS SHALL BE GOVERNED BY THE EXPRESS PROVISIONS OF THIS
MASTER AGREEMENT AND THE OTHER FUNDAMENTAL AGREEMENTS AND NOT BY THE CONFLICTING
PROVISIONS OF ANY OTHERWISE APPLICABLE LAW. ACCORDINGLY, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, LESSEE WAIVES ANY RIGHTS AND REMEDIES CONFERRED UPON A LESSEE
BY ARTICLE 2A OF THE UCC (INCLUDING, BUT NOT LIMITED TO, LESSEE'S RIGHTS, CLAIMS
AND DEFENSES UNDER UCC SECTIONS 2A-303 AND 2A-508 THROUGH 2A-522) AND THOSE
RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE, IN EITHER CASE THAT
ARE INCONSISTENT WITH OR THAT WOULD LIMIT OR MODIFY LESSOR'S RIGHTS SET FORTH IN
THIS MASTER AGREEMENT.

20. LESSEE WARRANTIES. Lessee represents, warrants and covenants to Lessor that:
(a) ALL EQUIPMENT WILL BE USED FOR BUSINESS PURPOSES ONLY AND NOT FOR PERSONAL,
FAMILY OR HOUSEHOLD PURPOSES; (b) Lessee is duly organized, validly existing and
in good standing under applicable law; (c) Lessee has the power and authority to
enter into each of the Fundamental Agreements; (d) all Fundamental Agreements
are enforceable against Lessee in accordance with their terms and do not violate
or create a default under any instrument or agreement binding on Lessee; (e)
there are no pending or threatened actions or proceedings before any court or
administrative agency that could have a material adverse effect on Lessee or any
Fundamental Agreement, unless such actions are disclosed to Lessor and consented
to in writing by Lessor; (f) Lessee shall comply in all material respects with
all laws and regulations the violation of which could have a material adverse
effect upon the Equipment or Lessee's performance of its obligations under any
Fundamental Agreement; (g) each Fundamental Agreement shall be effective against
all creditors of Lessee under applicable law, including fraudulent conveyance
and bulk transfer laws, and shall raise no presumption of fraud; and (h) all
financial statements and other related information furnished by Lessee shall be
prepared in accordance with generally accepted accounting principles and shall
fairly present Lessee's financial position as of the dates given on such
statements.

21. DEFAULT. Any of the following shall constitute a default by Lessee (a
"Lessee Default") under this Master Agreement and all Leases and Financings: (a)
Lessee fails to pay any Rent payment or any other amount payable to Lessor under
this Master Agreement or any Schedule within 10 days after its due date; or (b)
Lessee defaults on or breaches any of the other terms and conditions of any
Material Agreement, and fails to cure such breach within 10 days after written
notice thereof from Lessor; or (c) any representation or warranty made by Lessee
in any Material Agreement proves to be incorrect in any material respect when
made or reaffirmed; or (d) Lessee or Guarantor sells or otherwise disposes of
all or substantially all of its assets, consolidates with or merges with or into
any entity or incurs a substantial amount of indebtedness other than in the
ordinary course of its business (unless consented to in advance by Lessor); or
(e) Lessee or Guarantor dissolves or otherwise terminates its existence, ceases
to do business, or becomes insolvent or fails generally to pay its debts as they
become due; or (f) any Equipment is levied against seized or attached; or (g)
Lessee or Guarantor makes an assignment for the benefit of creditors; or (h) a
proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency
or receivership law is filed by or against Lessee or Guarantor (and, if such
proceeding is involuntary, it is not dismissed within 60 days after the filing
thereof) or Lessee or Guarantor takes any action to authorize any of the
foregoing matters; or (i) any letter of credit or guaranty issued in support of
a Lease or Financing is revoked, breached, cancelled or terminated (unless
consented to in advance by Lessor); or (j) any Guarantor fails to fulfill its
obligations in favor of Lessor pursuant to its guaranty.

     Any of the following shall constitute a default by Lessor (a "Lessor
Default") under this Master Agreement and (i) the applicable Lease(s) or
Financing(s) in the case of a Lessor Default described in clauses (w) or (x)
below, or (ii) all Leases and Financings in the case of a Lessor Default
described in clauses (y) or (z) below; (w) Lessor breaches its covenant of quiet
enjoyment set forth in Section 18 and fails or is unable to cure such breach
within 10 days after written notice thereof from Lessee; or (x) Lessor fails to
pay Seller (or in the case of Financed Items, Lessee or such other party as
Lessee or Seller shall have directed in writing) for any Equipment or Financed
Items within 30 days after Lessor's receipt of a properly completed and executed
Acceptance Certificate and all other documentation necessary to establish
Lessee's acceptance of such Equipment or Financed Items under a Lease or
Financing, respectively, and such failure continues for more than 10 days after
written notice thereof from Lessee; or (y) Lessor makes an assignment for the
benefit of creditors; or (z) a proceeding under any bankruptcy, reorganization,
arrangement of debt, insolvency or receivership law is filed by or against
Lessor (and, if such proceeding is involuntary, it is not dismissed within 60
days after the filing thereof).

22. REMEDIES. If a Lessee Default occurs, Lessor may, in its sole discretion,
exercise one or more of the following remedies: (a) declare all amounts due and
to become due under any or all Leases and Financings to be immediately due and
payable; or (b) terminate this Master Agreement or any Lease or Financing; or
(c) take possession of, or render unusable, any Equipment wherever the Equipment
may be located, without demand or notice and without any court order or other
process of law in accordance with Lessee's reasonable security procedures, and
no such action shall constitute a termination of any Lease; or (d) require
Lessee to deliver the Equipment to a location specified by Lessor; or (e)
declare the Stipulated Loss Value for any or all Equipment to be due and payable
as liquidated damages for loss of a bargain and not as a penalty and in lieu of
any further Rent payments under the applicable Lease or Leases; or (f) proceed
by court action to enforce performance by Lessee of any Lease or Financing
and/or to recover all damages and expenses incurred by Lessor by reason of any
Lessee Default; or (g) terminate any other agreement that Lessor may have with
Lessee; or (h) exercise any other right or remedy available to Lessor at law or
in equity. Also, Lessee shall pay Lessor all costs and expenses that Lessor may
incur to maintain, safeguard or preserve the Equipment, and other expenses
incurred by Lessor in enforcing any of the terms, conditions or provisions of
this Master Agreement (including reasonable legal fees and collection agency
costs). Upon repossession or surrender of any Equipment, Lessor shall lease,
sell or otherwise dispose of the Equipment in a commercially reasonable manner,
with or without notice and at public or private sale, and apply the net proceeds
thereof to the amounts owed to Lessor hereunder, but only after deducting (i) in
the case of a sale, the estimated Fair Market Value of the Equipment sold as of
the scheduled expiration of the Then Applicable Term of the related Lease, (ii)
in the case of a lease, the rent due for any period beyond the scheduled
expiration of the Then Applicable Term of the related Lease, and (iii) in either
case, all expenses (including reasonable legal fees and costs) reasonably
incurred by Lessor in connection therewith; provided, however, that Lessee shall
remain liable to Lessor for any deficiency that remains after any sale or lease
of such Equipment. Any proceeds of any sale or lease of such Equipment in excess
of the amounts owed to Lessor hereunder shall be retained by Lessor. Lessee
agrees that with respect to any notice of a sale required by law to be given, 10
days' notice shall constitute reasonable notice. Upon payment of all past due
Rent and the Stipulated Loss Value as provided in clause (e) above, together
with interest at the rate of 1-1/2% per month (or such lesser rate as is the
maximum rate allowable under applicable law) from the date declared due until
paid, Lessor will transfer to Lessee all of Lessor's interest in the Equipment
for which such Rent and Stipulated Loss Value has been paid, which transfer
shall be on an "AS IS, WHERE IS" basis, without any warranty, express or
implied, from Lessor, other than the absence of any liens or claims by or
through Lessor. These remedies are cumulative of

                                                                       12/98 Rev

                                                                               5

<PAGE>   6
every other right or remedy given hereunder or now or hereafter existing at law
or in equity or by statute or otherwise, and may be enforced concurrently
therewith or from time to time.

     If a Lessor Default occurs, Lessee's sole and exclusive remedy shall be to
recover by appropriate legal proceedings any direct damages suffered by Lessee
as a result of such Lessor Default and any reasonable and necessary expenses
(including, without limitation, court costs and reasonable legal fees) incurred
by Lessee in connection therewith.

23.  PERFORMANCE OF LESSEE'S OBLIGATIONS. If Lessee fails to perform any of its
obligations hereunder, Lessor may perform any act or make any payment that
Lessor deems reasonably necessary for the maintenance and preservation of the
Equipment and Lessor's interests therein; provided, however, that the
performance of any act or payment by Lessor shall not be deemed a waiver of, or
release Lessee from, the obligation at issue. All sums so paid by Lessor,
together with expenses (including legal fees and costs) incurred by Lessor in
connection therewith, shall be paid to Lessor by Lessee immediately upon demand.

24.  TRUE LEASE; SECURITY INTEREST; MAXIMUM RATE. Each Lease is intended to be a
"Finance Lease" as defined in Article 2A of the UCC, and Lessee hereby
authorizes Lessor to file a financing statement to give public notice of
Lessor's ownership of the Equipment. Lessee, by its execution of each Schedule,
acknowledges that Lessor has informed it that (a) the identity of Seller is set
forth in the applicable Schedule. (b) Lessee is entitled under Article 2A to the
promises and warranties, including those of any third party, provided to Lessor
in connection with, or as a part of, the applicable Purchase Documents, and (c)
Lessee may communicate with Seller and receive an accurate and complete
statement of the promises and warranties, including any disclaimers and
limitations of them or of remedies. If (i) notwithstanding the express intention
of Lessor and Lessee to enter into a true lease, any Lease is ever deemed by a
court of competent jurisdiction to be a lease intended for security, or (ii)
Lessor and Lessee enter into a Lease with the intention that it be treated as a
lease intended as security by so providing in the applicable Schedule, or (iii)
Lessor and Lessee enter into a Financing, then to secure payment and performance
of Lessee's obligations under this Master Agreement and all Leases and
Financings, Lessee hereby grants Lessor a purchase money security interest in
the related Equipment and Financed Items and in all attachments, accessories,
additions, substitutions, products, replacements, rentals and proceeds
(including, without limitation, insurance proceeds) thereto as well as a
security interest in any other equipment financed pursuant to this Master
Agreement or any other agreement between Lessor and Lessee (collectively, the
"Collateral"). In any such event, notwithstanding any provisions contained in
this Master Agreement or in any Schedule, neither Lessor nor any Assignee shall
be entitled to receive, collect or apply as interest any amount in excess of the
maximum rate or amount permitted by applicable law. In the event Lessor or any
Assignee ever receives, collects or applies as interest any amount in excess of
the maximum amount permitted by applicable law, such excess amount shall be
applied to the unpaid principal balance and any remaining excess shall be
refunded to Lessee. In determining whether the interest paid or payable under
any specific contingency exceeds the maximum rate or amount permitted by
applicable law, Lessor and Lessee shall, to the maximum extent permitted under
applicable law, characterize any non-principal payment as an expense or fee
rather than as interest, exclude voluntary prepayments and the effect thereof,
and spread the total amount of interest over the entire term of this Master
Agreement and all Leases and Financings.

25.  ASSIGNMENT. Lessor shall have the unqualified right to sell, assign,
pledge, transfer, mortgage or otherwise convey any part of its interest in this
Master Agreement, any Schedule or any Equipment, in whole or in part, without
prior notice to or the consent of Lessee. If any Lease is assigned, Lessee shall
(a) unless otherwise specified by Lessor and the Assignee, pay all amounts due
under the applicable Schedule to such Assignee, notwithstanding any defense,
setoff or counterclaim whatsoever that Lessee may have against Lessor or
Assignee; (b) not permit the applicable Schedule to be amended or the terms
thereof waived without the prior written consent of the Assignee; (c) not
require the Assignee to perform any obligations of Lessor, other than those that
are expressly assumed in writing by such Assignee; and (d) execute such
acknowledgments thereto as may be requested by Lessor or the Assignee. It is
further agreed that (i) each Assignee shall be entitled to all of Lessor's
rights, powers and privileges under the applicable Lease or Financing, to the
extent assigned; (ii) any Assignee may reassign its rights and interests under
the applicable Lease or Financing with the same force and effect as the
assignment described herein; and (iii) any payments received by the Assignee
from Lessee with respect to the assigned portion of the Lease or Financing
shall, to the extent thereof, discharge the obligations of Lessee to Lessor with
respect to the assigned portion of the Lease or Financing. Lessee acknowledges
that any assignment or transfer by Lessor or any Assignee shall not materially
change Lessee's obligations under the assigned Lease or Financing.

     Upon Lessor's prior written consent, which shall not be unreasonably
withheld, Lessee may sublet the Equipment to another end user other than another
leasing company or other competitor of Lessor. No such sublease shall relieve
Lessee of its obligations under the Lease and Lessee shall be responsible for
all costs and expenses associated with such sublease, including, without
limitation, additional Taxes or any Tax Loss suffered by Lessor. Lessee may
permit use of the Equipment by its affiliates or independent contractors at the
Equipment Location provided it does not relinquish possession and control of the
Equipment. Lessee may not assign, transfer or otherwise dispose of this Master
Agreement, any Lease or Financing, any Equipment or any interest therein.

26.  FURTHER ASSURANCES. Lessee agrees to promptly execute and deliver to Lessor
such further documents and take such further action as Lessor may require in
order to more effectively carry out the intent and purpose of this Master
Agreement and any Schedule. Without limiting the generality of the foregoing,
Lessee agrees (a) to furnish to Lessor from time to time, its certified
financial statements, officer's certificates and appropriate resolutions,
opinions of counsel and such other information and documents as Lessor may
reasonably request, and (b) to execute and timely deliver to Lessor any
financing statements or other documents that Lessor deems necessary to perfect
or protect Lessor's security interest in the Collateral or to evidence Lessor's
interest in the Equipment. If Lessee fails to execute any document referred to
in clause (b) of the preceding sentence, Lessor or Lessor's agent is hereby
authorized to sign and file the same as Lessee's agent. It is also agreed that
Lessor or Lessor's agent may file as a financing statement, any lease document
(or copy thereof, where permitted by law) that Lessor deems appropriate to
perfect or protect Lessor's security interest in the Collateral or to evidence
Lessor's interest in the Equipment. Upon demand, Lessee will promptly reimburse
Lessor for any filing or recordation fees or expenses (including legal fees and
costs) incurred by Lessor in perfecting or protecting its interests in the
Equipment.

27.  TERM OF MASTER AGREEMENT; SURVIVAL. This Master Agreement shall commence
and be effective upon the execution hereof by both parties and shall continue in
effect until terminated by either party by 30 days' prior written notice to the
other. However, no termination of this Master Agreement pursuant to the
preceding sentence shall be effective with respect to any Lease or Financing
that commenced prior to such termination until the expiration or termination of
such Lease or Financing and the satisfaction by Lessee of all of its obligations
hereunder with respect thereto. All representations, warranties and covenants
made by Lessee hereunder shall survive the termination of this Master Agreement
and shall remain in full force and effect. All of Lessor's rights, privileges
and indemnities under this Master Agreement or any Lease or Financing, to the
extent they are fairly attributable to events or conditions occurring or
existing on or prior to the expiration or termination of such Lease or
Financing, shall survive such expiration or termination and be enforceable by
Lessor and Lessor's successors and assigns.

28.  WAIVER OF JURY TRIAL. LESSEE AND LESSOR HEREBY EXPRESSLY WAIVE ANY RIGHT TO
DEMAND A JURY TRIAL WITH RESPECT TO ANY ACTION OR PROCEEDING INSTITUTED BY
LESSOR OR LESSEE IN CONNECTION WITH THIS MASTER AGREEMENT OR ANY FUNDAMENTAL
AGREEMENT.

29.  NOTICES. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Master Agreement or any other
Fundamental Agreement shall be in writing and shall be deemed to have been duly
given if delivered personally or mailed via certified mail or a nationally
recognized overnight courier service, or sent by confirmed facsimile
transmission, addressed as follows (or such other address or fax number as
either party shall so notify the other):

If to Lessor:

Compaq Capital Corporation
100 Woodbridge Center Drive, Suite 202
Woodbridge, New Jersey 07095
Attn: Vice President, Operations and Credit
Fax: (888) 202-4271

Authorized Lessor E-mail Address: electronicacceptance@compaq.com

                                                                       12/98 Rev
                                                                               6
<PAGE>   7
If to Lessee:

_______________________________________

_______________________________________

_______________________________________

Attn __________________________________

Fax: __________________________________

Authorized Lessee Representatives and Authorized Lessee E-mail Addresses:

_________________________________________________________________________

Lessee Acceptance Confirmation Fax Number: ______________________________

30.  MISCELLANEOUS.

(a)  GOVERNING LAW. THIS MASTER AGREEMENT AND EACH LEASE AND FINANCING SHALL BE
GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO CONFLICTS OF LAW PROVISIONS) OF
THE STATE OF NEW JERSEY.

(b)  CONSENT TO JURISDICTION. Lessor and Lessee consent to the jurisdiction of
any local, state or Federal court located within the State of New Jersey, and
waive any objection relating to improper venue or forum non conveniens to the
conduct of any proceeding in any such court.

(c)  CREDIT REVIEW. Lessee consents to a reasonable credit review by Lessor for
each Lease and Financing.

(d)  CAPTIONS AND REFERENCES. The captions contained in this Master Agreement
and any Schedule are for convenience only and shall not affect the
interpretation of this Master Agreement. All references in this Master Agreement
to Sections and Exhibits refer to Sections hereof and Exhibits hereto unless
otherwise indicated.

(e)  ENTIRE AGREEMENT; AMENDMENTS. This Master Agreement and all other
Fundamental Agreements executed by both Lessor and Lessee constitute the entire
agreement between Lessor and Lessee relating to the leasing of the Equipment and
the financing of Financed Items, and supersede all prior agreements relating
thereto, whether written or oral, and may not be amended or modified except in a
writing signed by the parties hereto.

(f)  NO WAIVER. Any failure of Lessor to require strict performance by Lessee,
or any written waiver by Lessor of any provision hereof, shall not constitute
consent or waiver of any other breach of the same or any other provision hereof.

(g)  LESSOR AFFILIATES. Lessee understands and agrees that Compaq Capital
Corporation or any affiliate or subsidiary thereof may, as lessor, execute
Advance Pricing Agreements and Schedules under this Master Agreement, in which
event the terms and conditions of the applicable Advance Pricing Agreement or
Schedule and this Master Agreement as it relates to the lessor under such
Advance Pricing Agreement or Schedule shall be binding upon and shall inure to
the benefit of such entity executing such Advance Pricing Agreement or Schedule
as lessor, as well as any successors or assigns of such entity.

(h)  INVALIDITY. If any provision of this Master Agreement or any Schedule shall
be prohibited by or invalid under law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Master Agreement
or such Schedule.

(i)  COUNTERPARTS. This Master Agreement may be executed in counterparts, which
collectively shall constitute one document.

(j)  LESSOR RELIANCE. Lessor may act in reliance upon any instruction,
instrument or signature reasonably believed by Lessor in good faith to be
genuine. Lessor may assume that any employee of Lessee who executes any document
or gives any written notice, request or instruction has the authority to do so.

31.  DEFINITIONS. All capitalized terms used in this Master Agreement have the
meanings set forth below or in the Sections of this Master Agreement referred to
below:

     "ACCEPTANCE DATE" means, as to any Lease or Financing, the date Lessee
shall have accepted the Equipment or Financed Items subject to such Lease or
Financing in accordance with Section 3.

     "ADVANCE PRICING AGREEMENT" means an Advance Pricing Agreement executed by
Lessor and Lessee pursuant to Section 2.B.

     "ADVANCE RENT" means, as to any Lease, Rent paid by Lessee in advance of
the Acceptance Date for the related Equipment or otherwise intended to be
treated as "Advance Rent" under this Master Agreement and the applicable
Schedule.

     "AMOUNT AVAILABLE" has the meaning specified in an Advance Pricing
Agreement.

     "ASSIGNEE" means any assignee of all or any portion of Lessor's interest in
this Master Agreement, any Schedule or any Equipment, whether such assignee
received the assignment of such interest from Lessor or a previous assignee of
such interest.

     "CASUALTY LOSS" means, with respect to any Equipment, the condemnation,
taking, loss, destruction, theft or damage beyond repair of such Equipment.

     "CASUALTY VALUE" means, as to any Equipment, an amount determined as of the
date of the Casualty Loss or Lessee Default in question pursuant to a "Table of
Casualty Values" attached to the applicable Schedule or, if no "Table of
Casualty Values" is attached to the applicable Schedule, an amount equal to the
sum of (i) the present value as of the date of the Casualty Loss or Lessee
Default in question (discounted at 5% per annum, compounded monthly) of all Rent
payments payable after such date through the scheduled date of expiration of the
Then Applicable Term, plus (ii) the present value as of the date of the Casualty
Loss or Lessee Default in question (discounted at 5% per annum, compounded
monthly, from the scheduled date of expiration of the Then Applicable Term) of
an amount determined by multiplying the applicable casualty percentage specified
below by the Total Cost of such Equipment. The applicable casualty percentage
shall be 35% for Equipment having an Initial Term of less than 24 months; 30%
for Equipment having an Initial Term of 24 months or greater, but less than 36
months; 25% for Equipment having an Initial Term of 36 months or greater, but
less than 48 months; and 20% for Equipment having an Initial Term of 48 months
or greater.

     "CLAIMS" means all claims, actions, suits, proceedings, costs, expenses
(including, without limitation, court costs, witness fees and attorneys' fees),
damages, obligations, judgments, orders, penalties, fines, injuries, liabilities
and losses, including, without limitation, actions based on Lessor's strict
liability in tort.

     "CODE" means the Internal Revenue Code of 1986, as amended.

     "COLLATERAL" has the meaning specified in Section 24.

     "COMMITMENT PERIOD" means the period during which Lessor will purchase
Equipment and fund Financed Items and enter into a Lease or Financing of the
same with Lessee pursuant to Section 2.B and an Advance Pricing Agreement at the
rates set forth in such Advance Pricing Agreement, which period shall be
specified in such Advance Pricing Agreement.

     "CONSOLIDATING SCHEDULE" has the meaning specified in an Section 2.B(d).

     "CONSOLIDATION PERIOD" has the meaning specified in an Advance Pricing
Agreement.

     "DAILY RENT" means, as to any Lease or Financing, an amount equal to the
per diem Rent payable under the applicable Schedule (calculated on the basis of
a 360 day year and 30 day months).

     "END-OF-TERM NOTICE" means, as to any Lease, a written notice delivered by
Lessee to Lessor at least 90 days prior to the end of the Initial Term, any
Renewal Term or any optional extension of the Initial Term or any Renewal Term
setting forth Lessee's elections pursuant to Section 4 with respect to the
Equipment subject to such Lease. Each End-of-Term Notice shall specify with
particularity the Units of Equipment to be purchased by Lessee (if any), as to
which the Lease is to be renewed (if any) and that are to be returned to Lessor
(if any).

     "EQUIPMENT LOCATION" means, as to any Equipment, the address at which such
Equipment is located from time to time, as originally specified in the
applicable Schedule and as subsequently specified in a notice delivered to
Lessor pursuant to Section 11. if applicable.

     "EQUIPMENT" has the meaning specified in Section 1.

     "FAIR MARKET VALUE" means the total price that would be paid for any
specified Equipment in an arm's length transaction between an informed and
willing buyer (other than a used equipment dealer) under no compulsion to buy
and an informed and willing seller under no compulsion to sell. Such total price
shall not be reduced by the costs of removing such Equipment from its current
location or moving it to a new location.

     "FAIR RENTAL VALUE" means the amount of periodic rent that would be payable
for any specified Equipment in an arm's length transaction between an informed
and willing lessee and an informed and willing lessor, neither under compulsion
to lease. Such amount shall not be reduced by the costs of removing such
Equipment from its current location or moving it to a new location.

     "FINAL INVOICE AMOUNT" has the meaning set forth in Section 2.A(c).

     "FINANCED ITEM" has the meaning specified in Section 1.

     "FINANCING" has the meaning specified in Section 1.

     "FIRST PAYMENT DATE" means, as to any Lease or Financing, the date the
first Rent payment with respect to the Initial Term of such Lease or the Term of
such Financing (as applicable) is due, as determined pursuant to the terms of
the applicable Schedule.

     "FUNDAMENTAL AGREEMENTS" means, collectively, this Master Agreement, each
Advance Pricing Agreement, each Schedule and Acceptance Certificate and all
other related instruments and documents.

     "FUNDING DATE" means, with respect to any Financed Item, the date Lessor
makes funds available to the Seller of such Financed Item to pay for the same or
to Lessee to reimburse Lessee for its payments of the same.

                                                                       12/98 Rev
                                                                               7
<PAGE>   8
                                                   EXHIBIT A TO MASTER AGREEMENT

COUNTERPART NO. ____ OF ____. TO THE EXTENT THAT THIS SCHEDULE CONSTITUTES
CHATTEL PAPER (AS DEFINED ON THE UCC), NO SECURITY INTEREST IN THIS SCHEDULE
MAY BE CREATED THROUGH THE TRANSFER OR POSSESSION OF ANY COUNTERPART OTHER THAN
COUNTERPART NO. 1.

[COMPAQ CAPITAL LOGO]                          MASTER AGREEMENT NUMBER ________
                                                       SCHEDULE NUMBER ________

                      MASTER LEASE AND FINANCING AGREEMENT
                                    SCHEDULE

      Compaq Capital Corporation ("Lessor") and _______________ ("Lessee") are
parties to the Master Lease and Financing Agreement identified by the Master
Agreement Number specified above (the "Master Agreement"). This Schedule (which
shall be identified by the Schedule Number specified above) and the Master
Agreement together comprise a separate Lease, a separate Financing or a
separate Lease and a separate Financing, as the case may be, between the
parties. The terms and conditions of the Master Agreement are hereby
incorporated by reference into this Schedule. All capitalized terms used in
this Schedule without definition have the meanings ascribed to them in the
Master Agreement.

1.    LEASE.
      A.    Description of Items of Leased Equipment                 Total Cost

      B.    Initial Term: ___ Months (plus the number of days from and including
            the Acceptance Date through and including the last day of the
            calendar month or quarter (depending on whether Rent is payable
            monthly or quarterly as specified in Section 3 below) in which the
            Acceptance Date occurs).

2.    FINANCING.
      A.    Description of Financed Items                            Total Cost

      B.    Term: ___ Months (plus the number of days from and including the
            Acceptance Date through and including the last day of the calendar
            month or quarter (depending on whether Rent is payable monthly or
            quarterly as specified in Section 3 below) in which the Acceptance
            Date occurs).

3.    RENT:
      For Lease: ________________
      For Financing: ____________
      Total Rent: _______________

      RENT is payable:        __ in advance  __ in arrears (check one)
                              __ monthly     __ quarterly (check one)

      Lessee shall pay Lessor (a) on the first day of each calendar month or
      calendar quarter (depending on whether Rent is payable monthly or
      quarterly as specified above.) If Rent is payable in advance, or (b) on
      the last day of each calendar month or calendar quarter (depending on
      whether Rent is payable monthly or quarterly as specified above) if Rent
      is payable in arrears, the Rent payment specified above for the length of
      the Initial Term in the case of a Lease and for the length of the Term
      in the case of a Financing. The First Payment Date shall be the first day
      (if Rent is payable in advance) or the last day (if Rent is payable in
      arrears) of the month or quarter (as applicable) immediately following
      the month or quarter (as applicable) in which the Acceptance Date occurs.
      However, if Rent is payable in advance and if the Acceptance Date falls
      on the first day of a month or quarter (as applicable), that date shall
      be the First Payment Date. In addition, on the First Payment Date Lessee
      shall also pay Lessor an amount equal to the Daily Rent multiplied by the
      number of days from and including the Acceptance Date (Funding Date in
      the case of a Financing) up to but excluding the first day of the month
      or quarter (as applicable) in which the First Payment Date occurs.

4.    ADVANCE RENT: ____________

5.    PRICING EXPIRATION DATE: __________. Lessor's obligation to purchase and
      lease the Equipment or fund and finance the Financed items is subject to
      the Acceptance Date being on or before the Pricing Expiration Date.

6.    EQUIPMENT LOCATION: _____________________________________________________

7.    SELLER: _________________________________________________________________

8.    ADDITIONAL PROVISIONS: __________________________________________________
      _________________________________________________________________________

LESSOR AGREES TO LEASE TO LESSEE AND LESSEE AGREES TO LEASE FROM LESSOR THE
EQUIPMENT DESCRIBED IN SECTION 1.A ABOVE, IF ANY, AND LESSOR AND LESSEE AGREE
TO ENTER INTO A FINANCING OF THE FINANCED ITEMS DESCRIBED IN SECTION 2.A ABOVE,
IF ANY. SUCH LEASE AND/OR FINANCING WILL BE GOVERNED BY THE MASTER AGREEMENT
AND THIS SCHEDULE, INCLUDING THE IMPORTANT ADDITIONAL TERMS AND CONDITIONS SET
FORTH ABOVE. IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THIS SCHEDULE
AND THE MASTER AGREEMENT, THE TERMS OF THIS SCHEDULE SHALL GOVERN.

LESSEE:                                LESSOR:
FUTURELINK CORP.                       COMPAQ CAPITAL CORPORATION

BY: R. KILAMBI                         BY:
    ----------------------------           ----------------------------
    R. KILAMBI, CFO
    ----------------------------           ----------------------------
           Name and Title                         Name and Title

    November 15, 1999
    ----------------------------           ----------------------------
                Date                                   Date

                                                                       12/98 Rev

<PAGE>   9
[COMPAQ CAPITAL LOGO]

                                                   EXHIBIT B TO MASTER AGREEMENT

                                              MASTER AGREEMENT NUMBER __________
                                                           APA NUMBER __________

                           ADVANCE PRICING AGREEMENT

     COMPAQ CAPITAL CORPORATION ("Lessor") and ____________________ ("Lessee")
are parties to the Master Lease and Financing Agreement identified by the
Master Agreement Number specified above (the "Master Agreement"). This Advance
Pricing Agreement (which shall be identified by the APA Number specified
above) is being entered into by Lessor and Lessee for the purpose specified in
Section 2.B of the Master Agreement and supersedes any Advancing Pricing
Agreement previously entered into by Lessor and Lessee pursuant thereto with
respect to Leases and Financings commencing during the Commitment Period
specified in Section 1 below. The terms and conditions of the Master Agreement
are hereby incorporated by reference into this Advance Pricing Agreement. All
capitalized terms used in this Advance Pricing Agreement without definition
have the meanings ascribed to them in the Master Agreement.

1.   COMMITMENT PERIOD. Lessee may enter into Leases and Financings with Lessor
pursuant to Section 2.B of the Master Agreement and this Advance Pricing
Agreement during the period beginning on ____________________ and ending on
____________________ (the "Commitment Period").

2.   AMOUNT AVAILABLE. The aggregate Total Cost of Equipment to be subject to
such Leases and Financed Items to be subject to such Financings shall not
exceed $__________ ("Amount Available") without Lessor's consent, which consent
shall be evidenced either by a writing executed by Lessor or by Lessor's
funding during the Commitment Period of Leases, Financings, or both in an
aggregate amount exceeding such Amount Available.

3.   CONSOLIDATION PERIOD. All Leases and Financings commencing during each
[calendar month] [calendar quarter] or portion thereof ending during the
Commitment Period (a "Consolidation Period") shall be consolidated into a
single Consolidating Schedule in accordance with Section 2.B(d) of the Master
Agreement.

4.   LEASES. Set forth below is a description of the type(s) of Equipment that
may be leased pursuant to this Advance Pricing Agreement, the times at which
Rent is payable and the length of the Initial Term of each Lease that is
commenced pursuant hereto, and the Lease rate factor to be multiplied by the
Total Cost of the Equipment subject to each such Lease to determine the
periodic Rent payable with respect thereto:

      A.   EQUIPMENT TYPE I:

          (i)   Description of Equipment: ______________________________________

          (ii)  Rent is payable: ___ in advance    ___ in arrears (check one)
                                 ___ monthly       ___ quarterly (check one)

          (iii) Initial Term:_____ Months (plus the number of days from and
                including the Acceptance Date through and including the last
                day of the Consolidation Period in which the Acceptance Date
                occurs).

          (iv)  Lease rate factor: _____________________________________________

     [Add additional sequentially lettered paragraphs in the event of
     additional Equipment types]

     With respect to each Lease that is commenced pursuant to this Advance
     Pricing Agreement, Lessee shall pay Lessor (a) on the first day of each
     calendar month or calendar quarter (depending on whether Rent is payable
     monthly or quarterly) if Rent is payable in advance, or (b) on the last
     day of each calendar month or quarter (depending on whether Rent is
     payable monthly or quarterly) if Rent is payable in arrears, the Rent
     payment calculated as set forth above in this Section 4 for the length of
     the Initial Term of such Lease. The First Payment Date shall be the
     first day (if Rent is payable in advance) or the last day (if Rent is
     payable in arrears) of the month or quarter (as applicable) immediately
     following the end of the Consolidation Period in which the Acceptance Date
     occurs. In addition, on the First Payment Date Lessee shall also pay
     Lessor with respect to each such Lease an amount equal to the Daily Rent
     multiplied by the number of days from and including the Acceptance Date
     up to but excluding the first day of the month or quarter (as applicable)
     in which the First Payment Date occurs.

5.   FINANCINGS. Set forth below is a description of the types of Financed
Items that may be financed pursuant to this Advance Pricing Agreement, the
times at which Rent is payable and the length of the Term of each Financing
that is commenced pursuant hereto, and the Financing rate factor to be
multiplied by the Total Cost of the Financed Items subject to each such
Financing to determine the periodic Rent payable with respect thereto:

     A.   FINANCED ITEM TYPE 1:

          (i)   Description of Financed Item: __________________________________

          (ii)  Rent is payable: ___ in advance    ___ in arrears (check one)
                                 ___ monthly       ___ quarterly (check one)

          (iii) Term:_____ Months (plus the number of days from and including
                the Acceptance Date through and including the last day of the
                Consolidation Period in which the Acceptance Date occurs).

          (iv)  Financing rate factor: _________________________________________

     [Add additional sequentially lettered paragraphs in the event of
     additional types of Financed Items]

     With respect to each Financing commenced pursuant to this Advance Pricing
     Agreement, Lessee shall pay Lessor (a) on the first day of each calendar
     month or calendar quarter (depending on whether Rent is payable monthly or
     quarterly) if Rent is payable in advance, or (b) on the last day of each
     calendar month or quarter (depending on whether Rent is payable monthly or
     quarterly) if Rent is payable in arrears, the Rent payment calculated as
     set forth above in this Section 5 for the length of the Term of such
     Financing. The First Payment Date shall be the first day (if Rent is
     payable in advance) or the last day (if Rent is payable in arrears) of the
     month or quarter (as applicable) immediately following the end of the
     Consolidation Period in which the Acceptance Date occurs. In addition, on
     the First Payment Date Lessee shall also pay Lessor with respect to each
     such Lease an amount equal to the Daily Rent multiplied by the number of
     days from and including the Acceptance Date up to but excluding the first
     day of the month or quarter (as applicable) in which the First Payment Date
     occurs.

6.   ADDITIONAL PROVISIONS: ____________________________________________________

IN WITNESS WHEREOF, LESSOR AND LESSEE HAVE EXECUTED THIS ADVANCE PRICING
AGREEMENT ON THE DATES SPECIFIED BELOW.

LESSEE:                                      LESSOR:
                                             COMPAQ CAPITAL CORPORATION
------------------------------------

BY: /s/ R. KILAMBI                           BY:
    --------------------------------             -------------------------------
    R. Kilambi, CFO
------------------------------------         -----------------------------------
       Name and Title                                  Name and Title

    November 15, 1999
------------------------------------         -----------------------------------
            Date                                            Date
<PAGE>   10
                                                [COMPAQ FINANCIAL SERVICES LOGO]

                             OFFICER'S CERTIFICATE

LESSEE:                         LESSOR:
FUTURELINK CORP.                COMPAQ FINANCIAL SERVICES CORPORATION
Street Address:                 Address:
6 Morgan, Suite 100             100 Woodbridge Center Drive, Suite 202
                                Woodbridge, NJ 07095
City, State, Zip Code:          Master Lease and Financing Agreement
Irvine, CA 92618                Number: 100746 ("Master Agreement")

     I, Philip R. Ladoucew, DO HEREBY CERTIFY that I am the duly qualified and
acting Chief Executive Officer of the Corporation referenced above as Lessee
("Corporation"); that the Corporation is a duly organized corporation, validly
existing and in good standing under the laws of the State of Delaware and
qualified to do business in each jurisdiction where the Equipment (as such term
is defined in the Master Agreement) will be located; that based on an
examination of the aforementioned charter, bylaws and other relevant records, as
of the date set forth below the following persons in the respective capacities
appearing after their names, on behalf of the Corporation with full authority to
bind the Corporation thereto, have been authorized to execute the Master
Agreement and all other agreements, documents and instruments executed and
delivered and to be executed and delivered in connection therewith, including
without limitation, Master Lease and Financing Agreement Schedules, Advance
Pricing Agreements, and Acceptance Certificates (the "Documents"); and that the
signatures after the title of each such person is his or her true and authentic
signature:

<TABLE>
<CAPTION>
   Name                                 Title                   Signature
  -----                                 ------                  ---------
<S>                               <C>                           <C>
Raghu Kilambi                           CFO
Glen Holmes                       President and CEO
</TABLE>

     The foregoing authority and empowerment of the above-named persons shall
remain in full force and effect, and Lessor shall be entitled to rely upon the
same, until written notice of the modification, rescission or revocation of the
same, in whole or in part, has been delivered to Lessor, but no such
modification, rescission or revocation shall, in any event, be effective with
respect to any Documents executed or actions taken in reliance upon the
foregoing authority and empowerment prior to the delivery to Lessor of said
written notice of the modification, rescission or revocation. The execution and
delivery of the Documents for and on behalf of the Corporation is not prohibited
or in any manner restricted by the terms of the Corporation's Articles of
Incorporation, by-laws, or any loan agreement, indenture or contract.

     IN WITNESS WHEREOF, I have set my hand and affixed the seal of the
Corporation this ___ day of ________________, 1999.

                        By: /s/ PHILIP R. LADOUCEHE
                           --------------------------------

                        Name: Philip R. Ladoucehe
                            --------------------------------

                        Title: Chief Executive Officer
                            --------------------------------

(Corporate Seal)

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