Document:

<PAGE>

                                                                    EXHIBIT 10.6

                                PROMISSORY NOTE

Principal Amount:  $180,000.00        Date of Note:  January 28, 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
American, the principal amount of One Hundred Eighty Thousand & 00/100 Dollars
($180,000.00), together with Interest or the unpaid principal balance form
January 28, 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:

     23 consecutive monthly interest payments, beginning February 28, 1999, with
     interest calculated on the unpaid principal balances at an interest rate of
     1.000 percentage points over the index described below;  12 consecutive
     monthly principal payments of $5,000.00 each, beginning February 28, 1999,
     with interest calculated on the unpaid principal balances at an interest
     rate of 1.000 percentage points over the index described below;  11
     consecutive monthly principal payments of $10,000.00 each, beginning
     February 29, 2000, with interest calculated on the unpaid principal
     balances at an interest rate of 1.000 percentage points over the index
     described below;  and 1 principal and interest payment in the initial
     amount of $10,075.35 on January 31, 2001, with interest calculated on the
     unpaid principal balances at an interest rate of 1.000 percentage points
     over the index described below.  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 bases;  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 pay
lender at Lender's address shown above or at such other place as Lender may
designate in writing.  Unless otherwise agreed or required by applicable law,
payments will be applied first to accrued unpaid interest, then to principal,
and any remaining amount to any unpaid collection costs and late charges.

     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 a 90
day unsecured loans to the most creditworthy corporate customer.  This rate 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 a 7.750% per annum.  The interest rate or rates to be applied to
the unpaid principal balance of this note will be the rate or rates set forth in
the "Payment" section. NOTICE:  Under no circumstances will the interest rate on
this Note be more than the maximum rate allowed by applicable law.  For purposes
of the 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 the Note, or (b) the "Weekly Rate" as referred
to in Section 303.201 of the Texas Finance Code and Articles 1D.002 and 1D.003
of the Texas Credit Title.  Whenever increases occur in the interest rate,
Lender, at its option, may be 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 payment
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

                                       1
<PAGE>

     of Borrower's obligation to 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 that 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 rate.

     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, obligations, 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 other 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 Note 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 any 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 Borrower 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, 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 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 attorneys'
     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 expensed 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 this
     loan, or premiums or identifiable charges receive din connection with the
     sale of authorized insurance.  This Note has been delivered to Lender and
     accepted by Lender in the Stat [sic] 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 at 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 authorized 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 delaying the expense

                                       2
<PAGE>

     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 or 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.

     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.  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, and 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 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,
     instruction, or directions by telephone of 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 days 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 statements 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

                                       3
<PAGE>

     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 order of trust or
     mortgage;  obtaining a writ of attachment or imposition of a receiver;  or
     exercising any rights relating to personal property, including take 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 any 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 any action for these purposes.  The Federal
     Arbitration Act shall apply to the construction, interpretation, and
     enforcement of this arbitration provision.

     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 or intend to pay, and
     Lender does not agree or intend to contract for, charge, collect, take,
     reserve or receive (collectively referred 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 of 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 change 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

                                       4
<PAGE>

     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
     notice to anyone. All such parities 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, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.  BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:

GLOBALSCAPE, INC.

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

                                       5<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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]