SETTLEMENT AGREEMENT AND RELEASE

      This Settlement Agreement and Release (the "Agreement") is dated December
29, 2005 and is made by and between GlobalNet Corporation ("GlobalNet"),
including, but not limited to, any of its subsidiaries, affiliates, officers,
employees or agents (collectively, "GlobalNet") and Mr. Mark Wood ("Wood")
(collectively, the "Parties").

      WHEREAS, bona fide disputes and controversies have arisen between
GlobalNet and Wood with respect to (1) the amount of compensation due and
payable to Wood for his services during his employment and/or association with
GlobalNet and its subsidiaries, (2) certain loans made by Wood to GlobalNet, and
related interest, and (3) the amount of compensation due and payable to Wood
with respect to his employment contract with GlobalNet dated February 1, 2003
(the "Employment Contract"), (collectively, the "Claims"); and,

      WHEREAS, Wood has asserted that the Claims entitle him to payments
totaling $197,424, as follows:

      1)    a loan made by Wood to GlobalNet in the amount of $17,924 (the
            "Loan");

      2)    unpaid interest in connection with Loan, including alleged default
            interest, in the amount of $14,500 (the "Loan Interest");

      3)    deferred compensation payments, in the amount of $140,000 (the
            "Deferred Compensation"); and,

      4)    expenses paid on behalf of GlobalNet , in the amount of $25,000 (the
            "Expenses").

      WHEREAS, GlobalNet paid Wood $96,500 (the "Payment") in April 2005 with
respect to certain of the Claims; and,

      WHEREAS, the parties intend by this Agreement to clarify their intentions
with respect to settlement of the Claims and the characterization of prior
payments made to Wood; and,

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         WHEREAS, by reason of such disputes and controversies, the Parties
hereto desire to compromise and settle all claims and causes of action of any
kind whatsoever by and between Wood and GlobalNet related to the Claims and
Payment and intend that the full terms and conditions of such compromise and
settlement be set forth in this Agreement;

       NOW THEREFORE, for and in consideration of (i) the above recitals, and
(ii) other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties do hereby agree as follows:

      1. GlobalNet agrees that the following items, made pursuant to alleged
agreements between November 1, 2003 and the date of execution of the Agreement,
shall be considered as duly authorized by the Board of Directors, and represent
valid claims for compensation by Wood as follows:

      (a)   $17,924 paid to Wood pursuant to the Loan;

      (b)   $14,500 payable to Wood pursuant to the Loan Interest;

      (c)   $140,000 payable to Wood pursuant to the Deferred Compensation; and,

      (d)   $25,000 payable to Wood pursuant to the Expenses.

      2. Wood agrees that the $96,500 payment made in April of 2005, represents
a full satisfaction of his claims against GlobalNet as outlined in paragraph one
above. The Parties hereby agree that the proper allocation of the $96,500
payment is as follows: $17,924, representing the Company's repayment of the
Loan; $14,500, representing the Company's payment of the Loan Interest; $39,076
representing the Company's payment of deferred compensation; and $25,000
representing the Company's payment of the Expenses to Wood.

      3. Wood accepts and agrees that, except as otherwise provided in this
Agreement, as of the date of execution of this Agreement that there is no other,
direct or indirect, debt or claim, of any character or kind, between Wood and
GlobalNet, and that should there be any unknown, direct or indirect, claim, that
such claim shall be included, released and/or indemnified under this Agreement.
Notwithstanding the foregoing, however, normal travel and entertainment expenses
incurred since October 31, 2005 shall not be considered as included in this
Release;

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      4. No later than December 29, 2005, Wood shall remit to the Company
$18,067 to cover tax withholding obligations relating to payments described in
this Agreement. GlobalNet agrees to immediately remit that entire sum to proper
federal and, if applicable, state taxing authorities, and further agrees to
indemnify and defend Wood from and against any and all tax liabilities imposed
or assessed against Wood as a result of GlobalNet's failure or refusal to remit
such funds to appropriate taxing authorities.

      5. Wood agrees that this Agreement relates only to the Claims, and the
Payments, and that no other relationship between the Parties is affected under
this Release and Indemnification. Specifically, Wood agrees that all expense
reporting by Wood to GlobalNet is not affected by this Release and
Indemnification, and that Wood will provide acceptable documentation of all such
amounts to GlobalNet. Notwithstanding the foregoing sentence, however, in
consideration of the substantial discount on overall claims settlement,
GlobalNet agrees that should aggregate expense submissions not be able to be
sufficiently documented in an amount not to exceed twenty-five thousand dollars
($25,000), GlobalNet shall not seek reimbursement from Wood but shall report any
such unsubstantiated amounts as additional taxable income.

      6. Upon execution of this document, Wood releases and discharges GlobalNet
and its heirs, executors, administrators, parent company, holding company,
subsidiaries, successors, predecessors, officers, directors, principals, control
persons, past and present employees, insurers, and assigns from all actions,
cause of action, suits, debts, dues, sums of money, accounts, reckonings, bonds,
bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, extents, executions, claims, and
demands whatsoever, in law, admiralty or equity, against GlobalNet, related in
any way whatsoever to the Claims and Payment, that Wood or his heirs, executors,
administrators, successors and assigns ever had, now have or hereafter can,
shall or may, have for, upon, or by reason of any matter, cause or thing
whatsoever, whether or not known or unknown, from the beginning of the world to
the day of the date of this Release. Notwithstanding the foregoing, however,
this agreement shall not release, waive or otherwise limit any claim or right of
Wood relating to or arising from: (1) his ownership of GlobalNet securities; or
(2) his right to indemnification and/or defense, whether arising under any
certificate of incorporation or bylaw, any contract, any policy of insurance, or
otherwise.

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      7. Upon execution of this document, GlobalNet releases and discharges
Wood, and his heirs, executors, administrators, parent company, holding company,
subsidiaries, successors, predecessors, officers, directors, principals, control
persons, past and present employees, insurers, and assigns from all actions,
cause of action, suits, debts, dues, sums of money, accounts, reckonings, bonds,
bills, specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, extents, executions, claims, and
demands whatsoever, in law, admiralty or equity, against Wood, related in any
way whatsoever to the Claims and Payment, that GlobalNet or its heirs,
executors, administrators, successors and assigns ever had, now have or
hereafter can, shall or may, have for, upon, or by reason of any matter, cause
or thing whatsoever, whether or not known or unknown, from the beginning of the
world to the day of the date of this Release.

      8. In the event of any dispute relating to or arising from this Agreement,
the party substantially prevailing therein shall recover the costs and expenses
incurred in connection with the dispute, including reasonable attorneys' fees.

      9. It is expressly understood and agreed by the Parties hereto that the
terms hereof are contractual and not merely recitals, that the agreements herein
contained and the consideration herein transferred are to compromise doubtful
and disputed claims, avoid litigation, and buy peace, and that no payments made
nor releases or other consideration given shall be construed as an admission of
liability, all liability being expressly denied.

      10. The Parties expressly agree to the filing of this Agreement as a
Material Contract on Form 8-K with the Securities and Exchange Commission.

      11. This Agreement contains the entire agreement and understanding
concerning the subject matter hereof between the parties and supersedes and
replaces all prior negotiations, proposed agreement and agreements, written or
oral. Each of the parties hereto acknowledges that neither any of the parties
hereto, nor agents or counsel of any other party whomsoever, has made any
promise, representation or warranty whatsoever, express or implied, not
contained herein concerning the subject hereto, to induce it to execute this
Agreement and acknowledges and warrants that it is not executing this Agreement
in reliance on any promise, representation or warranty not contained herein.

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      12. This Agreement may not be modified or amended in any manner except by
an instrument in writing specifically stating that it is a supplement,
modification or amendment to the Agreement and signed by each of the parties
hereto.

      13. Should any provision of this Agreement be declared or be determined by
any court or tribunal to be illegal or invalid, the validity of the remaining
parts, terms or provisions shall not be affected thereby and said illegal or
invalid part, term or provision shall be severed and deemed not to be part of
this Agreement.

      14. This Agreement may be executed in facsimile counterparts, each of
which, when all parties have executed at least one such counterpart, shall be
deemed an original, with the same force and effect as if all signatures were
appended to one instrument, but all of which together shall constitute one and
the same Agreement.

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

MARK T. WOOD                                GLOBALNET CORPORATION

/s/ Mark T. Wood                            /s/Thomas P. Dunn
----------------                            -----------------------------
                                            Name: Thomas P. Dunn
                                            Title: CFO