Document:

<PAGE>

                                                                  EXHIBIT 10.10

                                PROMISSORY NOTE
<TABLE>
<S>                                               <C>      <C>
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
----------------------------------------------------------------------------------
</TABLE>

Principal Amount:  $50,000.00                    Date of Note:  October 6, 1999

PROMISE TO PAY.  GLOBALSCAPE, INC. ("Borrower") promises to pay to THE FROST
NATIONAL BANK ("Lender"), or order, in lawful money of the United States of
America, the principal amount of Fifty Thousand & 00/100 Dollars ($50,000.00),
together with interest on the unpaid principal balance from October 6, 1999,
until maturity.

PAYMENT.  Subject to any payment changes resulting from changes in the Index,
Borrower will pay this loan in accordance with the following payment schedule:

     18 consecutive monthly interest payments, beginning November 6, 1999, with
     interest calculated on the unpaid principal balances at an interest rate of
     1.000 percentage points over the index described below; 6 consecutive
     monthly principal payments of $1,000.00 each, beginning November 6, 1999,
     with interest calculated on the unpaid principal balances at an interest
     rate of 1.000 percentage points over the index described below; and 12
     consecutive monthly principal payments of $3,666.67 each, beginning May 6,
     2000, with interest calculated on the unpaid principal balances at an
     interest rate of 1.000 percentage points over the index described below.
     Borrower's final payment of $3,666.87 will be due on April 6, 2001.  This
     estimated final payment is based on the assumption that all payments will
     be made exactly as scheduled and that the index does not change; the actual
     final payment will be for all principal and accrued interest not yet paid,
     together with any other unpaid amounts under this Note.

The annual interest rate for this Note is computed on a 365/360 basis; that is,
by applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number
of days the principal balance is outstanding, unless such calculation would
result in a usurious rate, in which case interest shall be calculated on a per
diem basis of a year of 365 or 366 days, as the case may be.  Borrower will
Lender at Lender's address shown above or as such other place as Lender may
designate in writing.  Unless otherwise agreed or required by applicable law,
payments will be applied first to any unpaid collection costs and any late
charges, then to any accrued unpaid interest, and any remaining amount to
principal.

VARIABLE INTEREST RATE.  The interest rate on this Note is subject to change
from time to time based on changes in an index which is Lender's Prime Rate (the
"index").  This is the rate Lender charges, or would charge, on 90-day unsecured
loans to the most creditworthy corporate customers.  This rage [sic] may or may
not be the lowest rate available from Lender at any given time. Lender will tell
Borrower the current index rate upon Borrower's request. Borrower understands
that Lender may make loans based on other rates as well. The interest rate
change will not occur more often than each day. The index currently is 8.250%
per annum. The interest rate or rates to be applied to the unpaid principal
balance on this Note will be the rate or rates set forth above in the "Payment"
section. NOTICE: Under no circumstances will the interest rate on this loan be
more than the maximum rate allowed by applicable law. For purposes of this Note,
the "maximum rate allowed by applicable law" means the greater of (a) the
maximum rate of interest permitted under federal or other law applicable to the
indebtedness evidenced by this Note, or (b) the "Weekly Ceiling" as referred to
in Section 303.002 and 303.003 of the Texas Finance Code. Whenever increases
occur in the Interest rate, Lender, at its option, may do one or more of the
following: (a) increase Borrower's payments to ensure Borrower's loan will pay
off by its original final maturity date, (b) increase Borrower's payments to
cover accruing interest, (c) increase the number of Borrower's payments, and (d)
continue Borrower's payments at the same amount and increase Borrower's final
payment.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due.  Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to

                                       1
<PAGE>

continue to make payments under the payment schedule. Rather, they will reduce
the principal balance due and may result in Borrower making fewer payments.

POST MATURITY RATE.  The Post Maturity Rate on this Note is the maximum rate
allowed by applicable law.  Borrower will pay Interest on all sums due after
final maturity, whether by acceleration or otherwise, at the rate, with the
exception of any amounts added to the principal balance of this Note based on
Lender's payment of Insurance premiums, which will continue to accrue interest
at the pre-maturity ratel [sic]

DEFAULT.  Borrower will be in default if any of the following happens:  (a)
Borrower fails to make any payment when due.  (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform when
due any other term, obligation, covenant, or condition contained in this Note or
any agreement related to this Note, or in any other agreement or loan Borrower
has with Lender.  (c) Borrower defaults under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in
favor of any othe4r creditor or person that may materially affect any of
Borrower's property or Borrower's ability to repay this Note or perform
Borrower's obligations under this or any of the related Documents.  (d) Any
representation or statement made or furnished to Lender by Borrower or on
Borrower's behalf is false or misleading in y material respect either now or at
the time made or furnished.  (e)  Borrower becomes insolvent, a receiver is
appointed for any part of Borrower's property, Borrower makes an assignment for
the benefit of creditors or any proceeding is commenced either by Borrow3r or
against Borrower under any bankruptcy or insolvency laws.  (f)  Any creditor
tries to take any of Borrower's property on or in which Lender has a lien or
security interest.  This includes a garnishment of any of Borrower's accounts
with Lender.  (g)  Any guarantor dies or any of the other events described in
this default section occurs with respect to any guarantor of this Note.  (h)  A
material adverse change occurs in Borrower's financial condition, or Lender
believes the prospect of payment or performance of the indebtedness is impaired.
(i)  Lender in good faith deems itself insecure.

LENDER'S RIGHTS.  Upon default, Lender may declare the entire indebtedness,
including the unpaid principal balance on this Note, all accrued unpaid
interest, and all other amounts, costs and expenses for which Borrower is
responsible under this Note or any other agreement with Lender pertaining to
this loan, immediately due, without notice, and then Borrower will pay that
amount.  Lender may hire an attorney to help collect this Note if Borrower does
not pay, and Borrower will pay Lender's reasonable attorney's fees.  Borrower
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 this loan; the reasonable cost actually expended 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 a security for this loan, or premiums or identifiable charges
received in connection with the sale of authorized Insurance.  This Note 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 Note occurred in Bexar
County, Borrower agrees upon Lender's request to submit to the jurisdiction of
the courts of Bexar County, the State of Texas.  This Note shall be governed by
and construed in accordance with the laws of the State of Texas and applicable
Federal laws.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on this Note against any and all such accounts.

DISHONORED CHECK CHARGE.  In the event a check offered in full or partial
payment on this loan is returned unpaid, Lender may charge a fee for the purpose
of defraying the expense incident to handling such returned check, and Borrower
agrees to pay such fee.  The fee shall not exceed the maximum amount permitted
under applicable law.

OTHER CREDITS AFFECTING AVAILABILITY.  Any other credits made available to
Borrower by Lender, such as other loans or letters of credit, may be advanced to
Borrower and/or issued under this line of credit commitment, and any such
advances or issuances shall, in addition to the outstanding advances on this
Note, reduce the outstanding availability on the line of credit.

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<PAGE>

FACSIMILE DOCUMENTS AND SIGNATURE.  For purposes of negotiating and finalizing
this document, if this document is transmitted by facsimile machine ("fax"), it
shall be treated for all purposes as an original document.  Additionally, the
signature of any party on this document transmitted by way of a fax machine
shall be considered 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.

WAIVER OF RIGHT TO TRIAL BY JURY.  THE PARTIES TO THIS AGREEMENT HEREBY WAIVE
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE
PARTIES HERETO AGAINST THE OTHER TO ENFORCE THIS AGREEMENT, TO COLLECT DAMAGES
FOR THE BREACH OF THIS AGREEMENT, OR WHICH IN ANY OTHER WAY ARISE OUT OF, ARE
CONNECTED TO OR ARE RELATED TO THIS AGREEMENT OR THE SUBJECT MATTER OF THIS
AGREEMENT.  ANY SUCH ACTION SHALL BE TRIED BY THE JUDGE WITHOUT A JURY.

LINE OF CREDIT.  This Note evidences a straight line of credit.  Once the total
amount of principal has been advanced, Borrower' [sic] is not entitled to
further loan advances. Advances under this Note may be requested orally by
Borrower or by an authorized person. Lender may, but need not, require that all
oral requests be confirmed in writing. All communications, instructions, or
directions by telephone or otherwise to Lender are to be directed to Lender's
office shown above. Borrower agrees to be liable for all sums either (a)
advanced in accordance with the instructions of an authorized person or (b)
credited to any of Borrower's accounts with Lender. The unpaid principal balance
owing on this Note at any time may be evidenced by endorsements on this Note or
by Lender's Internal records, including daily computer print-outs. Lender will
have no obligation to advance funds under this Note if: (a) Borrower or any
guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Note; (b) Borrower or any guarantor ceases
doing business or is insolvent; (c) any guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such guarantor's guarantee of this Note or
any other loan with Lender; (d) Borrower has applied funds provided pursuant to
this Note for purposes other than those authorized by Lender; or (e) Lender in
good faith deems itself insecure under this Note or any other agreement between
Lender and Borrower.

LATE CHARGE.  If a payment is made 10 days or more late, Borrower will be
charged, in addition to interest, a delinquency charge of (i) 5% of the unpaid
portion of the regularly scheduled payment, or (ii) $250.00 whichever is less.
Additionally, upon maturity of this Note, if the outstanding principal balance
(plus all accrued but unpaid interest) is not paid within 10 day[s] of the
maturity date, Borrower will [be] charged a delinquency charge of (i) 5% of the
sum of the outstanding principal balance (plus all accrued but unpaid interest),
or (ii) $250.00, whichever is less. Borrower agrees with Lender that the charges
set forth herein are reasonable compensation to Lender for the handling of such
late payments.

FINANCIAL INFORMATION.  Borrower agrees to promptly furnish such financial
information and statements, including financial statement in a format acceptable
to Lender, lists of assets and liabilities, agings of receivables and payables,
inventory schedules, budgets, forecasts, tax returns, and other reports with
respect to Borrower's financial condition and business operations as Lender may
request from time to time.  This provision shall not alter the obligation of
Borrower to deliver to Lender any other financial statements or reports pursuant
to the terms of any other loan documents executed in connection with this Note.

ARBITRATION.  Lender and Borrower agree that all disputes, claims and
controversies between them, whether individual, joint, or class in nature,
arising from the Note or otherwise, including without limitation contract and
tort disputes, shall be arbitrated pursuant to the Commercial Arbitration Rules
of the American Arbitration Association, upon written request of either party.
The party that requests arbitration has the burden to initiate the arbitration
proceedings pursuant to and by complying with the Commercial Arbitration Rules
of the American Arbitration Association and shall pay all associated
administrative and filing fees.  The arbitration shall be conducted in the City
of San Antonio, Bexar County, Texas, and administered by the American
Arbitration Association.  All arbitration hearings will be commenced within
sixty (60) days of the written request for arbitration, and if the arbitration
hearing is not commenced within the sixty (60) days, the party that requested
arbitration shall have waived its election to arbitrate.  No act to take or
dispose of any collateral securing the Note shall constitute a waiver of this
arbitration agreement or be prohibited by this arbitration agreement.  This
includes, without limitation, obtaining injunctive relief or a temporary
restraining order; invoking a power of sale under any deed of trust or mortgage;

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<PAGE>

obtaining a writ of attachment or imposition of a receiver; or exercising any
rights relating to personal property, including taking or disposing of such
property with or without judicial process pursuant to Article 9 of the Uniform
Commercial Code.  Any disputes, claims, or controversies concerning the
lawfulness or reasonableness of any act, or exercise of any right, concerning
any collateral securing the Note, including any claim to rescind, reform, or
otherwise modify any agreement relating to the collateral securing the Note,
shall also be arbitrated, provided however that no arbitrator shall have the
right or the power to enjoin or restrain any act of any party.  Judgment upon
any award rendered by an arbitrator may be entered in any court having
jurisdiction.  Nothing in the Note shall preclude any party from seeking
equitable relief from a court of competent jurisdiction.  The statute of
limitations, estoppel, waiver, laches, and similar doctrines which would
otherwise be applicable in an action brought by a party shall be applicable in
any arbitration proceeding, and the commencement of an arbitration proceeding
shall be deemed the commencement of an action for these purposes.  The Federal
Arbitration Act shall apply to the construction, interpretation, and
enforcement of this arbitration.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will
not affect the rest of the Note. In particular, this section means (among other
things) that Borrower does not agree to intend to pay, and Lender does not agree
or intend to contract for, charge, collect, take, reserve or receive
(collectively referr4ed [sic] to herein as "charge or collect'), any amount in
the nature of interest or in the nature of a fee for this loan, which would in
any way or event (including demand, prepayment, or acceleration) cause Lender to
charge or collect more for this loan than the maximum Lender would be permitted
to charge or collect by federal law or the law of the State of Texas (as
applicable). Any such excess interest or unauthorized fee shall, instead of
anything stated to the contrary, be applied first to reduce the principal
balance of this loan, and when the principal has been paid in full, be refunded
to Borrower. The right to accelerate maturity of sums due under this Note does
not include the right to accelerate any interest which has not otherwise accrued
on the date of such acceleration, and Lender does not intend to charge or
collect any unearned interest in the event of acceleration. All sums paid or
agreed to be paid to Lender for the use, forbearance or detention of sums due
hereunder shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of the loan evidenced by
this Note until payment in full so that the rate or amount of interest on
account of the loan evidenced hereby does not exceed the applicable usury
ceiling. Lender may delay or forgo enforcing any of its rights or remedies under
this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by Law, waive
presentment, demand for payment, protest, notice of dishonor, notice of intent
to accelerate the maturity of this Note, and notice of acceleration of the
maturity of this Note. Upon any changes in the terms of this Note, and unless
otherwise expressly stated in writing, no party who signs this Note, whether as
maker, guarantor, accommodation maker or endorser, shall be released from
liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan, or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender's security
interest in the collateral without the consent of or notic4 to anyone. All such
parties also agree that Lender may modify this loan without the consent of or
notice to anyone other than the party with whom the modification is made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE.  BORROWER AGREES TO THE TERMS O F [sic] THE TERMS OF THE NOTE AND
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:

GLOBALSCAPE, INC.

By:  /s/ Sandra Poole Christal     By:  /s/ H. Douglas Saathoff
    ----------------------------       -----------------------------------------
    Sandra Poole, President            H. Douglas Saathoff, Secretary/Treasurer

                                       4<PAGE>

                                                                   EXHIBIT 10.11

                         COMMERCIAL SECURITY AGREEMENT

<TABLE>
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   Principal      Loan Date    Maturity   Loan No.  Call  Collateral  Account  Officer  Initials
<S>               <C>         <C>        <C>        <C>   <C>         <C>      <C>      <C>

   $50,000.00     10--5-1999  04-06-2001   9002      500    6073      2919728    752

--------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>         <C>                                    <C>       <C>
Borrower:   GLOBALSCAPE, INC. (TIN: 74-2786449)    Lender:   THE FROST NATIONAL BANK
            800 ISOM ROAD, SUITE 400                         P. O. BOX 1600
            SAN ANTONIO, TX  78216                           SAN ANTONIO, TX  78296
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</TABLE>

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 shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollars 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 from time to time.

     Collateral.  The word "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 the
          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.

     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."

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<PAGE>

     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 October 8,
     1999, in the principal amount of $50,000.00 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 of
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 trust accounts for which
the grant of a security interest would be prohibited by law. Grantor authorizes
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
     statements 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 and the
     continuation of 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 pain in full and
     even though for a period of time Grantor may not be indebted to Lender.

     No Violation.  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

                                       2
<PAGE>

     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 the 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, bona fide indebtedness incurred by the
     account debtor, for merchandise held subject to delivery instructions or
     theretofore shipped or delivered pursuant to a contract of sale, or for
     services theretofore 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 from 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 deliver 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 in 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 have
     the right at all reasonable times to examine, inspect, and audit the
     Collateral wherever 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

                                       3
<PAGE>

     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, now 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 9601, et seq. ("CERCLA"), the Superfund
     Amendments and Reauthorization Act of 1986, Pub. L. No. 98-499 ("SARA"),
     the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et
     seq., the Resource Conservation and Recovery Act, 42 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 reasonably
     acceptable to Lender. GRANTOR MAY FURNISH THE REQUIRED INSURANCE WHETHER
     THROUGH EXISTING POLICIES 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 such insurance is
     procured by lender at a rate or charge not fixed or approved by the State
     Board of Insurance, Grantor will be so notified; and Grantor will have the
     option for five (5) days of furnishing equivalent Insurance through any
     Insurer authorized to transact business in Texas. Grantor, upon request of
     Lender, will deliver to Lender from time to time the policies or
     certificates of insurance in form satisfactory to Lender, including
     stipulations that coverages will not be cancelled or diminished without at
     least ten (10) days' prior written notice to Lender and not including any
     disclaimer of the Insurer's liability for failure to give such a notice.
     Each insurance policy also shall include an endorsement providing that
     coverage in favor of Lender will not be impaired in any way by any act,
     omission or default of Grantor or any other person. In connection with all
     policies covering assets in which Lender holds or is offered a security
     interest, Grantor will provide lender with such loss payable or other
     endorsements as Lender may require. If Grantor at any time fails to obtain
     or maintain any insurance as required under this Agreement, Lender may (but
     still not be obligated to) obtain such Insurance as Lender deems
     appropriate, including if it so chooses "single interest insurance," which
     will cover only Lender's interest in the Collateral.

                                       4
<PAGE>

     Application of Insurance Proceeds.  Grantor shall promptly notify Lender of
     any loss or damage to the Collateral.  Lender may make proof of loss if
     Grantor fails to do so within fifteen (15) days of the casualty.  All
     proceeds of any insurance on the Collateral, including accrued proceeds
     thereon, shall be held by Lender as part of the Collateral.  If Lender
     consents to repair or replacement of the damaged or destroyed Collateral,
     Lender shall, upon satisfactory proof of expenditure, pay or reimburse
     Grantor from the proceeds for the reasonable cost of repair or restoration.
     If Lender does not consent to repair or replacement of the Collateral,
     Lender shall retain a sufficient amount of the proceeds to pay all of the
     indebtedness, and shall pay the balance to Grantor.  Any proceeds which
     have not been disbursed within six (6) months after their receipt and which
     Grantor has not committed to the repair or restoration of the Collateral
     shall be used to prepay the indebtedness.

     Insurance Reserves.  Lender may require Grantor to maintain with Lender
     reserves for payment of insurance premiums, which reserves shall be created
     by monthly payments from Grantor of a sum estimated by Lender to be
     sufficient to produce, at least fifteen (15) days before the premium due
     date, amounts at least equal to the insurance premiums to be paid.  If
     fifteen (15) days before payment is due, the reserve funds are
     insufficient, Grantor shall upon demand pay any deficiency to Lender. The
     reserve funds shall be held by Lender as a general deposit and shall
     constitute a non-interest-bearing account which Lender may satisfy by
     payment of the insurance premiums required to be paid by Grantor as they
     become due.  Lender does not hold the reserve funds in trust for Grantor,
     and Lender is not the agent of Grantor for payment of the insurance
     premiums required to be paid by Grantor.  The responsibility for the
     payment of premiums shall remain Grantor's sole responsibility.

     Insurance Reports.  Grantor, upon request of Lender, shall furnish to
     Lender reports on each existing policy of insurance showing such
     information as Lender may reasonably request including the following:  (a)
     the name of the insurer; (b) the risks insured; (c) the amount of the
     policy; (d) the property insured; (e) the then current value on the basis
     of which insurance has been obtained and the manner of determining that
     value; and (e) the expiration date of the policy.  In addition, Grantor
     shall upon request by Lender (however not more often than annually) have an
     independent appraiser satisfactory to Lender determine, as applicable, the
     cash value or replacement cost of the Collateral.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS.  Until default and except
as otherwise provided below with respect to accounts, Grantor may have
possession of the tangible personal property and beneficial use of all the
Collateral and may use it in any lawful manner not inconsistent with this
Agreement or the Related Documents, provided that Grantor's right to possession
and beneficial use shall not apply to any Collateral where possession of the
Collateral by Lender is required by law to perfect Lender's security interest in
such Collateral.  Until otherwise notified by Lender, Grantor may collect any of
the Collateral consisting of accounts.  At any time and even though no Event of
Default exists.  Lender may exercise its rights to collect the accounts and to
notify account debtors to make payments directly to Lender for application to
the indebtedness.  If Lender at any time has possession of any Collateral,
whether before or after an Event of Default, Lender shall be deemed to have
exercised Lender's sole discretion, shall deem appropriate under the
circumstances, but failure to honor any request by Grantor shall not of itself
be deemed to be a failure to exercise reasonable care.  Lender shall not be
required to take any steps necessary to preserve any rights in the Collateral
against prior parties, nor to protect, preserve or maintain any security
interest given to secure the indebtedness.

EXPENDITURES BY LENDER.  If not discharged or paid when due, Lender may (but
shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without limitation
all taxes, liens, security interests, encumbrances, and other claims, at any
time levied or placed on the Collateral.  Lender also may (but shall not be
obligated to) pay all costs for insuring, maintaining and preserving the
Collateral.  All such expenditures incurred or paid by Lender for such purposes
will then bear interest at the Note rate from the date incurred or paid by
Lender to the date of repayment by Grantor.  All such expenses shall become a
part of the indebtedness and, at Lender's option, will (a) be payable on demand,
(b) be added to the balance of the Note and be apportioned among and be payable
with any installment payments to become due during either (i) the term of any
applicable insurance policy or (ii) the remaining term of the Note, or (c) be
treated as a balloon payment which will be due and payable at the Note's
maturity.  This Agreement also will secure payment of these amounts.  Such right
shall be in addition to all other rights and remedies to which Lender may be
entitled upon the occurrence of an Event of Default.

                                       5
<PAGE>

EVENTS OF DEFAULT.  Each of the following shall constitute an Event of Default
under this Agreement:

     Default on Indebtedness.  Failure of Grantor to comply with or to perform
     any other term, obligation, covenant or condition contained in this
     Agreement or in any of the Related Documents or in any other agreement
     between Lender and Grantor.

     Other Defaults.  Failure of Grantor to comply with or to perform any other
     term, obligation, covenant or condition contained in this Agreement or in
     any of the Related Documents or in any other agreement between Lender and
     Grantor.

     Default in Favor of Third Parties.  Should Borrower or any Grantor default
     under any loan, extension of credit, security agreement, purchase or sales
     agreement, or any other agreement, in favor of any other creditor or person
     that may materially affect any of Borrower's property or Borrower's or any
     Grantor's ability to repay the Loans or perform their respective
     obligations under this Agreement or any of the Related Documents.

     False Statements.  Any warranty, representation or statement made or
     furnished to Lender by or on behalf of Grantor under this Agreement, the
     Note or the Related Documents is false or misleading in any material
     respect, either now or at the time made or furnished.

     Defective Collateralization.  This Agreement or any of the Related
     Documents ceases to be in full force and effect (including failure of any
     collateral documents to create a valid and perfected security interest or
     lien) at any time and for any reason.

     Insolvency.  The dissolution or termination of Grantor's existence as a
     going business, the insolvency of Grantor, the appointment of a receiver
     for any part of Grantor's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Grantor.

     Creditor or Forfeiture Proceedings.  Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Grantor or by any
     governmental agency against the Collateral or any other collateral securing
     the indebtedness.  This includes a garnishment of any of Grantor's deposit
     accounts with Lender.

     Events Affecting Guarantor.  Any of the preceding events occurs with
     respect to any Guarantor of any of the indebtedness or such Guarantor dies
     or becomes incompetent.

     Adverse Change.  A material adverse change occurs in Grantor's financial
     condition, or Lender believes the prospect of payment or performance of the
     indebtedness is impaired.

     Insecurity.  Lender, in good faith, deems itself insecure.

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 of 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 also shall 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 an remove the Collateral.  If the
     Collateral contains other goods not covered by this Agreement at the time
     of repossession, Grantor agrees Lender may

                                       6
<PAGE>

     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 public
     auction 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 of 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 from 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 its own 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, causes in action, or similar properly, Lender
     may demand, collect, receipt for, sell, 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 in this Agreement.  Grantor shall
     be liable for a deficiency even if the transaction described in this
     subsection is a sale of accounts or chattel paper.

     Other Rights and Remedies.  Lender shall have all the right sand 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 right sand remedies it may have available at
     law, in equity, or otherwise.

     Cumulative Remedies.  All of Lender's right sand remedies, whether
     evidenced by this Agreement ore 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.  No alteration of or amendment to

                                       7
<PAGE>

     this Agreement shall be effective unless given in writing and signed by the
     party or parties sought to be charged or bound by the alteration or
     amendment.

     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 expended 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.

     Multiple Parties; Corporate Authority.  All obligations of Grantor under
     this Agreement shall be joint and several, and all reference to Grantor
     shall mean each and every Grantor.  This means that each of the persons
     signing below is responsible for all obligations in 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 national 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, receive, 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 al claims, instruments, receipts, checks, drafts or warrants issued in
     payment for the Collateral; (c) to settle or compromise 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  ** discretion of Lender may seem to be necessary or
     advisable.  This power is given as security for the indebtedness, and the
     authority herein conferred is and shall be irrevocable and shall remain in
     full force and effect until renounced by Lender.

     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.

                                       8
<PAGE>

     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
     of 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 a continuing convent 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 document, if this document is transmitted by facsimile machine ("fax").  It
shall be treated for all purposes as an original document.  At the request of
any party, this document shall be re-executed by each signatory party in an
original form.

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY
AGREEMENT, AND GRANTOR AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED OCTOBER 5,
1998

                              GRANTOR:

                              GLOBALSCAPE, INC.

                              By:   /s/  Sandra Poole Christal
                                    __________________________
                                    Sandra Poole, President

                              By:   /s/  H. Douglas Saathoff
                                    ________________________
                                    H. Douglas Saathoff, Secretary/Treasurer

                                       9

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