<PAGE>

                                                                    EXHIBIT 10.7

                         COMMERCIAL SECURITY AGREEMENT




Borrower:  GLOBALSCAPE, INC. (TIN: 74-2785449)  Lender: THE FROST NATIONAL BANK
           800 ISOM ROAD, SUITE 400                     P. O. BOX 1600
           SAN ANTONIO, TX  78216                       SAN ANTONIO, TX  78296

--------------------------------------------------------------------------------

Principal Amount:  $180,000.00                   Date of Note:  January 28, 1999


THIS COMMERCIAL SECURITY AGREEMENT is entered into between GLOBALSCAPE, INC.
(referred to below as "Grantor"); and THE FROST NATIONAL BANK (referred to below
as "lender").  For valuable consideration, Grantor grants to Lender a security
interest in the collateral to secure the indebtedness and agrees that lender
shall have the rights stated in this Agreement with respect to the Collateral,
in addition to all other rights which Lender may have by law.

DEFINITIONS.  The following words shall have the following meanings when used in
this Agreement.  Terms not otherwise defined in this Agreement all have the
meanings attributed to such terms in the Uniform Commercial Code.  All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

     Agreement.   The word "Agreement"" means this Commercial Security
     Agreement, as this Commercial Security Agreement may be amended or modified
     from time to time, together with all exhibits and schedules attached to
     this Commercial Security Agreement form time to time.

     Collateral.  The work "Collateral" means the following described property
     of Grantor, whether now owned or hereafter acquired, whether now existing
     or hereafter arising, and wherever located:

               All accounts and equipment

     In addition, the word "Collateral" includes all the following, whether now
     owned or hereafter acquired, whether now existing or hereafter arising, and
     wherever located:

               (a)  All attachments, accessions, accessories, tools, parts,
               supplies, increases, and additions to and all replacements of and
               substitutions for any property described above.

               (b)  All products and produce of any of the property described in
               this Collateral section.

               (c)  All accounts, general intangibles, instruments, rents,
               monies, payments, and all other rights, arising out of a sale,
               lease, or other disposition of any of the property described in
               this Collateral section.

               (d)  All proceeds (including insurance proceeds) from the sale,
               destruction, loss, or other disposition of any of the property
               described in this Collateral section.

               (e)  All records and data relating to any of the property
               described in this Collateral section, whether in the form of a
               writing, photograph, microfilm, microfiche, or electronic media,
               together with all of Grantor's right, title, and interest in and
               to all computer software required to utilize, create, maintain,
               and process any such records or data on electronic media.

                                       1
<PAGE>

     Event of default.  The words "Event of Default" mean and include without
     limitation any of the Events of Default set forth below in the section
     titled "Events of Default."

     Grantor.  The word "Grantor" means GLOBALSCAPE, INC., its successors and
     assigns.

     Guarantor.  The word "Guarantor" means and includes without limitation each
     and all of the guarantors, sureties, and accommodation parties in
     connection with the indebtedness.

     Indebtedness.  The word "Indebtedness" means the indebtedness evidenced by
     the Note, including all principal and earned interest, together with all
     other indebtedness and costs and expenses for which Grantor is responsible
     under this Agreement or under any of the Related Documents.  In addition,
     the word "Indebtedness" includes all other obligations, debts and
     liabilities, plus interest thereon, of Grantor, or any one or more of them,
     to Lender, as well as all claims by Lender against Grantor, or any one or
     more of them, whether existing now or later;  whether they are voluntary or
     involuntary, due or not due, direct or indirect, absolute or contingent,
     liquidated or unliquidated;  whether Grantor may be liable individually or
     jointly with others;  whether Grantor may be obligated as guarantor,
     surety, accommodation party or otherwise.

     Lender.  The word "Lender" means THE FROST NATIONAL BANK, its successors
     and assigns.

     Note.  The word "Note" means the note or credit agreement dated January 28,
     1999, in the principal amount of $180,000.00 from GLOBALSCAPE, INC. to
     lender, together with all renewals of, extensions of, modifications of,
     refinancings of, consolidations of and substitutions for the note or credit
     agreement.

     Related Documents.  The words "Related Documents" mean and include without
     limitation all promissory notes, credit agreements, loan agreements,
     environmental agreements, guaranties, security agreements, mortgages, deeds
     of trust, and all other instruments, agreements and documents, whether now
     or hereafter existing, executed in connection with the indebtedness.

RIGHT OF SETOFF.  Grantor hereby grants Lender a contractual security interest
in and hereby assigns, conveys, delivers, pledges, and transfers all Grantor's
right, title and interest in and to Grantor's accounts with Lender (whether
checking, savings, or some other account), including all accounts held jointly
with someone else and all accounts Grantor may open in the future, excluding,
however, all IRA and Keogh accounts, and all accounts for which the grant of a
security interest would be prohibited by law.  Grantor authorized Lender, to the
extent permitted by applicable law, to charge or setoff all indebtedness against
any and all such accounts.

OBLIGATIONS OF GRANTOR.  Grantor warrants and covenants to Lender as follows:

     Perfection of Security Interest.  Grantor agrees to execute such financing
     statement and to take whatever other actions are requested by Lender to
     perfect and continue Lender's security interest in the Collateral.  Upon
     request of Lender, Grantor will deliver to Lender any and all of the
     documents evidencing or constituting the Collateral, and Grantor will note
     Lender's interest upon any and all chattel paper if not delivered to Lender
     for possession by Lender.  Grantor hereby appoints Lender as its
     irrevocable attorney-in-fact for the purpose of executing any documents
     necessary to perfect or to continue the security interest granted in this
     Agreement.  Lender may at any time, and without further authorization from
     Grantor, file a carbon, photographic or other reproduction of any financing
     statement or of this Agreement for use as a financing statement. Grantor
     will reimburse Lender for all expenses for the perfection of Lender's
     security interest in the Collateral.  Grantor promptly will notify Lender
     before any change in Grantor's name including any change to the assumed
     business names of Grantor.  This is a continuing Security Agreement and
     will continue in effect even though all or any part of the indebtedness is
     paid in full and even though for a period of time Grantor may not be
     indebted to Lender.

                                       2
<PAGE>

     No Violations.  The execution and delivery of this Agreement will not
     violate any law or agreement governing Grantor or to which Grantor is a
     party, and its certificate or articles of incorporation and bylaws do not
     prohibit any term or condition of this Agreement.

     Enforceability of Collateral.  To the extent the Collateral consists of
     accounts, chattel paper, or general intangibles, the Collateral is
     enforceable in accordance with its terms, is genuine, and complies with
     applicable laws concerning form, content and manner of preparation and
     execution, and all persons appearing to be obligated on the Collateral have
     authority and capacity to contract and are in fact obligated as they
     appear to be on the Collateral.  At any time any account becomes subject to
     a security interest in favor of Lender, the account shall be a good and
     valid account representing an undisputed, bon[a] fide indebtedness incurred
     by the account debtor, for merchandise held subject to delivery
     instructions or therefore shipped or delivered pursuant to a contract of
     sale, or for services therefore performed by Grantor with or for the
     account debtor; there shall be no setoffs or counterclaims against any such
     account; and no agreement under which any deductions or discounts may be
     claimed shall have been made with the account debtor except those disclosed
     to Lender in writing.

     Removal of Collateral.  Grantor shall keep the Collateral (or to the extent
     the Collateral consists of intangible property such as accounts, the
     records concerning the Collateral) at Grantor's address shown above, or at
     such other locations as are acceptable to Lender.  Except in the ordinary
     course of its business, including the sales of inventory, Grantor shall not
     remove the Collateral form its existing locations without the prior written
     consent of Lender.  To the extent that the Collateral consists of vehicles,
     or other titled property, Grantor shall not take or permit any action which
     would require application for certificates of title for the vehicles
     outside the State of Texas, without the prior written consent of Lender.

     Transactions Involving Collateral.  Except for inventory sold or accounts
     collected in the ordinary course of Grantor's business, Grantor shall not
     sell, offer to sell, or otherwise transfer or dispose of the Collateral.
     Grantor shall not pledge, mortgage, encumber or otherwise permit the
     Collateral to be subject to any lien, security interest, encumbrance, or
     charge, other than the security interest provided for in this Agreement,
     without the prior written consent of Lender.  This includes security
     interests even if junior in right to the security interests granted under
     this Agreement.  Unless waived by Lender, all proceeds from any disposition
     of the Collateral (for whatever reason) shall be held in trust for Lender
     and shall not be commingled with any other funds; provided however, this
     requirement shall not constitute consent by Lender to any sale or other
     disposition.  Upon receipt, Grantor shall immediately delivery any such
     proceeds to Lender.

     Title.  Grantor represents and warrants to Lender that it holds good and
     marketable title to the Collateral, free and clear of all liens and
     encumbrances except for the lien of this Agreement.  No financing statement
     covering any of the Collateral is on file in any public office other than
     those which reflect the security interest created by this Agreement or to
     which Lender has specifically consented.  Grantor shall defend Lender's
     rights to the Collateral against the claims and demands of all other
     persons.

     Collateral Schedules and Locations.  As often as Lender shall require, and
     insofar as the Collateral consists of accounts, Grantor shall deliver to
     Lender schedules of such Collateral, including such information as Lender
     may require, including without limitation names and addresses of account
     debtors and agings of accounts.  Insofar as the Collateral consists of
     equipment, Grantor shall deliver to Lender, as often as Lender shall
     require, such lists, descriptions, and designations of such Collateral as
     Lender may require to identify the nature, extent, and location of such
     Collateral.  Such information shall be submitted for Grantor and each of
     its subsidiaries or related companies.

     Maintenance and Inspection of Collateral.  Grantor shall maintain all
     tangible Collateral in good condition and repair.  Grantor will not commit
     or permit damage to or destruction of the Collateral or any part of the
     Collateral.  Lender and its designated representatives and agents shall

                                       3
<PAGE>

     have the right at all reasonable times to examine, inspect, and audit the
     Collateral whenever located.  Grantor shall immediately notify Lender of
     all cases involving the return, rejection, repossession, loss or damage of
     or to any Collateral; of any request for credit or adjustment or of any
     other dispute arising with respect to the Collateral; and generally of all
     happenings and events affecting the Collateral or the value or the amount
     of the Collateral.

     Taxes, Assessments and Liens.  Grantor will pay when due all taxes,
     assessments and liens upon the Collateral, its use or operation, upon this
     Agreement, upon any promissory note or notes evidencing the indebtedness,
     or upon any of the other Related Documents.  Grantor may withhold any such
     payment or may elect to contest any lien if Grantor is in good faith
     conducting an appropriate proceeding to contest the obligation to pay and
     so long as Lender's interest in the Collateral is not jeopardized in
     Lender's sole opinion.  If the Collateral is subjected to a lien which is
     not discharged within fifteen (15) days, Grantor shall deposit with Lender
     cash, a sufficient corporate surety bond or other security satisfactory to
     Lender in an amount adequate to provide for the discharge of the lien plus
     any interest, costs attorneys' fees or other charges that could accrue as a
     result of foreclosure or sale of the Collateral.  In any contest Grantor
     shall defend itself and Lender and shall satisfy any final adverse judgment
     before enforcement against the Collateral.  Grantor shall name Lender as an
     additional obligee under any surety bond furnished in the contest
     proceedings.

     Compliance with Governmental Requirements.  Grantor shall comply promptly
     with all laws, ordinances, rules and regulations of all governmental
     authorities, nor or hereafter in effect, applicable to the ownership,
     production, disposition, or use of the Collateral.  Grantor may contest in
     good faith any such law, ordinance or regulation and withhold compliance
     during any proceeding, including appropriate appeals, so long as Lender's
     interest in the Collateral, in Lender's opinion, is not jeopardized.

     Hazardous Substances.  Grantor represents and warrants that the Collateral
     never has been, and never will be so long as this Agreement remains a lien
     on the Collateral, used for the generation, manufacture, storage,
     transportation, treatment, disposal, release or threatened release of any
     hazardous waste or substance, as those terms are defined in the
     Comprehensive Environmental Response, Compensation, and Liability Act of
     1980, as amended, 42 U.S.C. Section 9801, et seq. ("CERCLA"), the Superfund
     Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"),
     the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et
     seq., the Resource Conversation and Recovery Act, 41 U.S.C. Section 6901,
     et seq., or other applicable state or Federal laws, rules, or regulations
     adopted pursuant to any of the foregoing.  The terms "hazardous waste" and
     "hazardous substance" shall also include, without limitation, petroleum and
     petroleum by-products or any fraction thereof and asbestos.  The
     representations and warranties contained herein are based on Grantor's due
     diligence in investigating the Collateral for hazardous wastes and
     substances.  Grantor hereby (a) releases and waives any future claims
     against Lender for indemnity or contribution in the event Grantor becomes
     liable for cleanup or other costs under any such laws, and (b) agrees to
     indemnify and hold harmless Lender against any and all claims and losses
     resulting from a breach of this provision of this Agreement.  This
     obligation to indemnify shall survive the payment of the indebtedness and
     the satisfaction of this Agreement.

     Maintenance of Casualty Insurance.  Grantor shall procure and maintain all
     risks insurance, including without limitation fire, theft and liability
     coverage together with such other insurance as Lender may require with
     respect to the Collateral, in form, amounts, coverages and basis OWNED OR
     CONTROLLED BY GRANTOR OR THROUGH EQUIVALENT INSURANCE FROM ANY INSURANCE
     COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THE STATE OF TEXAS.  If Grantor
     fails to provide any required insurance or fails to continue such insurance
     in force, Lender may, but shall not be required to, do so at Grantor's
     expense, and the cost of the insurance will be added to the indebtedness.
     If any insecurity, Lender, in good faith, seems itself insecure.

                                       4
<PAGE>

RIGHTS AND REMEDIES ON DEFAULT.  If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the Texas Uniform Commercial Code.  In addition and without
limitation, Lender may exercise any one or more of the following rights and
remedies:

     Accelerate Indebtedness.  Lender may declare the entire indebtedness
     immediately due and payable, without notice.

     Assemble Collateral.  Lender may require Grantor to deliver to Lender all
     or any portion of the Collateral and any and all certificates to title and
     other documents relating to the Collateral.  Lender may require Grantor to
     assemble the Collateral and make it available to Lender at a place to be
     designated by Lender.  Lender shall also have full power to enter, provided
     Lender does so without a breach of the peace or a trespass, upon the
     property of Grantor to take possession of and remove the Collateral.  If
     the Collateral contains other goods not covered by this Agreement at the
     time of the repossession, Grantor agrees Lender may take such other goods,
     provided that Lender makes reasonable efforts to return them to Grantor
     after repossession.

     Sell the Collateral.  Lender shall have full power to sell, lease,
     transfer, or otherwise deal with the Collateral or proceeds thereof in its
     own name or that of Grantor.  Lender may sell the Collateral at publication
     or private sale.  Unless the Collateral threatens to decline speedily in
     value or is of a type customarily sold on a recognized market, Lender will
     give Grantor reasonable notice of the time after which any private sale or
     any other intended disposition of the Collateral is to be made.  The
     requirements of reasonable notice shall be met if such notice is given at
     least ten (10) days before the time for the sale or disposition.  All
     expenses relating to the disposition of the Collateral, including without
     limitation the expenses of retaking, holding, insuring, preparing for sale
     and selling the Collateral, shall become a part of the Indebtedness secured
     by this Agreement and shall be payable on demand, with interest at the Note
     rate form date of expenditure until repaid.

     Appoint Receiver. To the extent permitted by applicable law, Lender shall
     have the following rights and remedies regarding the appointment of a
     receiver:  (a) Lender may have a receiver appointed as a matter of right,
     (b) the receiver may be an employee of Lender and may serve without bond,
     and (c) all fees of the receiver and his or her attorney shall become part
     of the indebtedness secured by this Agreement and shall be payable on
     demand, with interest at the Note rate from date of expenditure until
     repaid.

     Collect Revenues, Apply Accounts.  Lender, either itself or through a
     receiver, may collect the payments, rents, income, and revenues from the
     Collateral.  Lender may at any time in its discretion transfer any
     Collateral into it sown name or that of its nominee and receive the
     payments, rents, income, and revenues therefrom and hold the same as
     security for the indebtedness or apply it to payment of the indebtedness in
     such order of preference as Lender may determine.  Insofar as the
     Collateral consists of accounts, general intangibles, insurance policies,
     instruments, chattel paper, chooses inaction, or similar property, Lender
     may demand, collect, receipt for, settle, compromise, adjust, sue for,
     foreclose, or realize on the Collateral as Lender may determine, whether or
     not indebtedness or Collateral is then due.  For these purposes, Lender
     may, on behalf of and in the name of Grantor, receive, open and dispose of
     mail addressed to Grantor; change any address to which mail and payments
     are to be sent; and endorse notes, checks, drafts, money orders, documents
     of title, instruments and items pertaining to payment, shipment, or storage
     of any Collateral.  To facilitate collection, Lender may notify account
     debtors and obligors on any Collateral to make payments directly to Lender.

     Obtain Deficiency.  If Lender chooses to sell any or all of the Collateral,
     Lender may obtain a judgment against Grantor for any deficiency remaining
     on the indebtedness due to Lender after application of all amounts received
     from the exercise of the rights provided involuntary termination his
     Agreement.  Grantor shall be liable for a deficiency even if the
     transaction described in this subsection is a sale of accounts or chattel
     paper.

                                       5
<PAGE>

     Other Rights and Remedies.  Lender shall have all the rights and remedies
     of a secured creditor under the provisions of the Uniform Commercial Code,
     as may be amended from time to time.  In addition, Lender shall have and
     may exercise any or all other rights and remedies it may have available at
     law, in equity, or otherwise.

     Cumulative Remedies.  All of Lender's rights and remedies, whether
     evidenced by this Agreement or the Related Documents or by any other
     writing, shall be cumulative and may be exercised singularly or
     concurrently.  Election by Lender to pursue any remedy shall not exclude
     pursuit of any other remedy, and an election to make expenditures or to
     take action to perform an obligation of Grantor under this Agreement, after
     Grantor's failure to perform, shall not affect Lender's right to declare a
     default and to exercise its remedies.

MISCELLANEOUS PROVISIONS.  The following miscellaneous provisions are a part of
this Agreement:

     Amendments.  This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to the
     matters set forth in this Agreement

     Applicable Law.  This Agreement has been delivered to Lender and accepted
     by Lender in the State of Texas.  If there is a lawsuit, and if the
     transaction evidenced by this Agreement occurred in Bexar County, Grantor
     agrees upon Lender's request to submit to the jurisdiction of the courts of
     Bexar County, the State of Texas.  This Agreement shall be governed by and
     construed in accordance with the laws of the State of Texas and applicable
     Federal laws.

     Attorneys' Fees and Other Costs.  Lender may hire an attorney to help
     collect the Note if Grantor does not pay, and Grantor will pay Lender's
     reasonable attorneys' fees.  Grantor also will pay Lender all other amounts
     actually incurred by Lender as court costs, lawful fees for filing,
     recording, or releasing to any public office any instrument securing the
     Note; the reasonable cost actually for repossessing, storing, preparing for
     sale, and selling any security; and fees for noting a lien on or
     transferring a certificate of title to any motor vehicle offered as
     security for the Note, or premiums or identifiable charges received in
     connection with the sale of authorized insurance.

     Caption Headings.  Caption headings in this Agreement are for convenience
     purposes only and are not to be used to interpret or define the provisions
     of this Agreement.

     Notices.  All notices required to be given under this Agreement shall be
     given in writing, may be sent by telefacsimile (unless otherwise required
     by law) and shall be effective when actually delivered or when deposited
     with a nationally recognized overnight courier or deposited in the United
     States mail, first class, postage prepaid, addressed to the party to whom
     the notice is to be given at the address shown above.  Any party may change
     its address for notices under this Agreement by giving formal written
     notice to the other parties, specifying that the purpose of the notice is
     to change the party's address.  To the extent permitted by applicable law,
     if there is more than one Grantor, notice to any Grantor will constitute
     notice to all Grantors.  For notice purposes, Grantor will keep Lender
     informed at all times of Grantor's current address(es).

     Power of Attorney.  Grantor hereby appoints Lender as its true and lawful
     attorney-in-fact, irrevocably, with full power of substitution to do the
     following:  a) to demand, collect, received, receipt for, sue and recover
     all sums of money or other property which may now or hereafter become due,
     owing or payable from the Collateral; (b) to execute, sign and endorse any
     and all claims arising under the Collateral, and, in the place and stead of
     Grantor, to execute and deliver its release and settlement for the claim;
     and (d) to file any claim or claims or to take any action or institute or
     take part in any proceedings, either in its own name or in the name of
     Grantor, or otherwise, which in the discretion of Lender may seem to be
     necessary or advisable.  This power is given as security for the
     Indebtedness, and the authority hereby conferred is and shall be
     irrevocable and shall remain in full force and effect until renounced by
     Lender.

                                       6
<PAGE>

     Severability.  If a court of competent jurisdiction finds any provision of
     this Agreement to be invalid or unenforceable as to any person or
     circumstance, such finding shall not render that provision invalid or
     unenforceable as to any other persons or circumstances.  If feasible, any
     such offending provision shall be deemed to be modified to be within the
     limits of enforceability or validity;  however, if the offending provision
     cannot be so modified, it shall be stricken and all other provisions of
     this Agreement in all other respects shall remain valid and enforceable.

     Successor Interests.  Subject to the limitations set forth above on
     transfer of the Collateral, this Agreement shall be binding upon and inure
     to the benefit of the parties, their successors and assigns.

     Waiver.  Lender shall not be deemed to have waived any rights under this
     Agreement unless such waiver is given in writing and signed by Lender.  No
     delay or omission on the part of Lender in exercising any right shall
     operate as a waiver of such right or any other right.  A waiver by Lender
     or a provision of this Agreement shall not prejudice or constitute a waiver
     of Lender's right otherwise to demand strict compliance with that provision
     or any other provision of this Agreement.  No prior waiver by lender, nor
     any course of dealing between Lender and Grantor, shall constitute a waiver
     of any of Lender's rights or of any of Grantor's obligations as to any
     future transactions.  Whenever the consent of Lender is required under this
     Agreement, the granting of such consent by lender in any instance shall not
     constitute continuing consent to subsequent instances where such consent is
     required and in all cases such consent may be granted or withheld in the
     sole discretion of Lender.

FACSIMILE DOCUMENTS AND SIGNATURES.  For purposes of negotiating and finalizing
this documents, if this document is transmitted by facsimile machine ("fax"), it
shall be treated for all purposes as an original signature.  Any such faxed
document shall be considered to have the same binding legal effect as an
original document.  At the request of any party, any faxed document shall be re-
executed by each signatory party in an original form.

TANGIBLE NET WORTH.  Borrower shall maintain throughout the term of this Loan a
minimum Tangible Net Worth of not less than $325,000.00.  "Tangible Net Worth"
is defined as net Worth (defined in accordance with the generally accepted
accounting principles (GAAP)) less all intangibles and company receivables.

FINANCIAL STATEMENTS.  Borrower covenants and agrees with Lender that, while
this Loan is in effect, Borrower will furnish Lender with, as soon available,
but in no event later than forty five (45) days after the end of each fiscal
quarter, Borrower's balance sheet and profit and loss statement for the period
ended, prepared and certified as correct to the best knowledge and belief by
Borrower's chief financial officer or other officer or person acceptable to
Lender.  All financial reports required to be provided under this Loan shall be
prepared in accordance with GAAP, applied on a consistent bases, and certified
by Borrower as being true and correct.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY
AGREEMENT, AND GRANTOR AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED JANUARY 28,
1999.

GRANTOR:


GLOBALSCAPE, INC.


/s/ H. Douglas Saathoff
-----------------------
H. DOUGLAS SAATHOFF, Secretary/Treasurer

                                       7