Document:

<PAGE>

                                                                    EXHIBIT 10.1

                          APAC CUSTOMER SERVICES, INC.
                            MANAGEMENT INCENTIVE PLAN

                           (EFFECTIVE JANUARY 3, 2000)

<PAGE>

<TABLE>
<CAPTION>

                                                        TABLE OF CONTENTS
                                                                                                                 PAGE
                                                                                                                 ----
<S>     <C>                                                                                                      <C>
SECTION 1         ESTABLISHMENT OF THE PLAN.......................................................................1

SECTION 2         DEFINITIONS.....................................................................................1
         2.1      Annual Incentive Award..........................................................................1
         2.2      Base Salary.....................................................................................1
         2.3      Board...........................................................................................1
         2.4      Cause...........................................................................................1
         2.5      Change in Control...............................................................................1
         2.6      Code............................................................................................2
         2.7      Committee.......................................................................................2
         2.8      Company.........................................................................................3
         2.9      Disability......................................................................................3
         2.10     Effective Date..................................................................................3
         2.11     Eligible Individual.............................................................................3
         2.12     Employment Agreement............................................................................3
         2.13     Good Reason.....................................................................................3
         2.14     Participant.....................................................................................4
         2.15     Performance Goals...............................................................................4
         2.16     Plan............................................................................................4
         2.17     Plan Year.......................................................................................4
         2.18     Retirement......................................................................................4

SECTION 3         ELIGIBILITY AND PARTICIPATION...................................................................4
         3.1      General.........................................................................................4
         3.2      Partial Year Participation......................................................................5
         3.3      No Right to Participate.........................................................................5

SECTION 4         ANNUAL INCENTIVE OPPORTUNITY....................................................................5
         4.1      Performance Goals...............................................................................5
         4.2      Annual Incentive Awards.........................................................................6

SECTION 5         PAYMENT OF ANNUAL INCENTIVE AWARD...............................................................6
         5.1      Form and Timing of Payment......................................................................6
         5.2      Payment of Partial Awards.......................................................................6

SECTION 6         TERMINATION OF EMPLOYMENT.......................................................................7
         6.1      Termination for Cause...........................................................................7
         6.2      Termination by Death, Disability or Retirement..................................................7
         6.3      Other Termination...............................................................................7
         6.4      Change in Control Termination...................................................................7

SECTION 7         RIGHTS OF PARTICIPANTS..........................................................................8
</TABLE>

                                        i

<PAGE>
<TABLE>
<S>      <C>                                                                                                     <C>
         7.1      No Employment Rights............................................................................8
         7.2      Nontransferability..............................................................................8

SECTION 8         ADMINISTRATION..................................................................................8

SECTION 9         AMENDMENT AND MODIFICATION......................................................................9

SECTION 10        MISCELLANEOUS...................................................................................9
         10.1     Governing Law...................................................................................9
         10.2     Withholding Taxes...............................................................................9
         10.3     Shareholder Approval............................................................................9
         10.4     Costs of the Plan...............................................................................9
         10.5     Unsecured General Creditor......................................................................9
         10.6     Entire Agreement...............................................................................10
         10.7     Limitations of Liability.......................................................................10
         10.8     Successors.....................................................................................10
         10.9     Gender and Number..............................................................................10
         10.10    Headings.......................................................................................10
         10.11    Severability...................................................................................10
</TABLE>

                                       ii

<PAGE>

                          APAC CUSTOMER SERVICES, INC.

                            MANAGEMENT INCENTIVE PLAN

                                   SECTION 1
                            ESTABLISHMENT OF THE PLAN

         APAC Customer Services, Inc. (the "Company") has established the APAC
Customer Services, Inc. Management Incentive Plan, as set forth herein,
effective as of January 3, 2000 (the "Plan"), to reward certain eligible
employees of the Company who help achieve the Company's annual performance goals
and who achieve specified individual goals.

                                   SECTION 2
                                  DEFINITIONS

         2.1 ANNUAL INCENTIVE AWARD means the actual bonus earned during a Plan
Year by a Participant, as determined by the Committee at or after the end of the
Plan Year. A Participant's Annual Incentive Award shall be stated as a
percentage of the Participant's Base Salary.

         2.2 BASE SALARY means the annual base pay rate in effect at the end of
the Plan Year.

         2.3 BOARD means the Board of Directors of the Company.

         2.4 CAUSE means:

         (a) Gross negligence or gross misconduct in the performance of the
Participant's employment duties;

         (b) Willful disobedience of the lawful directions received from the
Company or from the person to whom the Participant directly reports or of
established policies of the Company; or

         (c) Commission of a crime involving fraud or moral turpitude that can
reasonably be expected to have an adverse effect on the business, reputation or
financial situation of the Company.

         2.5 CHANGE IN CONTROL means any of the following events:

         (a) A tender offer shall be made and consummated for the ownership of
more than 50% of the outstanding voting securities of the Employer;

         (b) The Employer shall be merged or consolidated with another
corporation and as a result of such merger or consolidation less than 50% of the
outstanding voting securities of the surviving or resulting corporation shall be
owned in the aggregate by the former shareholders of the Employer, as the same
shall have existed immediately prior to such merger or consolidation;

         (c) The Employer shall sell all or substantially all of its assets to
another corporation which is not a wholly-owned subsidiary or affiliate;

<PAGE>

         (d) As the result of, or in connection with, any contested election for
the Board of Directors of the Employer, or any tender or exchange offer, merger
or business combination or sale of assets, or any combination of the foregoing
(a "Transaction"), the persons who were Directors of the Employer before the
Transaction shall cease to constitute a majority of the Board of Directors of
the Employer, or any successor thereto; or

         (e) A person, within the meaning of Section 3(a)(9) or of Section
13(d)(3) (as in effect on the date hereof) of the Securities and Exchange Act of
1934 ("Exchange Act"), other than any employee benefit plan then maintained by
the Employer, shall acquire more than 50% of the outstanding voting securities
of the Employer (whether, directly, indirectly, beneficially or of record). For
purposes hereof, ownership of voting securities shall take into account and
shall include ownership as determined by applying the provisions of Rule
13d-3(d)(1)(i) (as in effect on the date hereof) pursuant to the Exchange Act.

         Notwithstanding the foregoing, (i) a Change in Control will not occur
for purposes of this Agreement merely due to the death of Theodore G. Schwartz,
or as a result of the acquisition by Theodore G. Schwartz, alone or with one or
more affiliates or associates, as defined in the Exchange Act, of securities of
the Employer, as part of a going-private transaction or otherwise, unless Mr.
Schwartz or his affiliates, associates, family members or trusts for the benefit
of family members (collectively, the "Schwartz Entities") do not control,
directly or indirectly, at least twenty-seven percent (27%) of the resulting
entity, and (ii) if the Schwartz Entities control, directly or indirectly, less
than twenty-seven (27%) percent of the Employer's voting securities while it is
a public company, then "33-1/3%" shall be substituted for "50%" in clauses (a)
and (e) of this Section 2.5, and "66-2/3%" shall be substituted for "50%" in
clause (b) of this Section 2.5.

         2.6 CODE means the Internal Revenue Code of 1986, as amended.
References to a Section of the Code shall include references to any temporary or
final regulation related to such Section or any successor to such Section or
regulation.

         2.7 COMMITTEE means the Compensation Committee of the Board designated
to administer the Plan in accordance with Section 8, which shall consist of two
or more "outside directors" within the meaning of Section 162(m) of the Code,
who are appointed by the Board.

         2.8 COMPANY means APAC Customer Services, Inc., a Delaware corporation,
and any successor thereto.

         2.9 DISABILITY means, to the extent such term is not defined in an
Employment Agreement, if any, a physical or mental condition that entitles the
Participant to benefits under the Company-sponsored long term disability plan
covering the Participant.

         2.10 EFFECTIVE DATE means January 3, 2000.

         2.11 ELIGIBLE INDIVIDUAL means the Chief Executive Officer, an
Executive Vice President, a Senior Vice President, Vice President, Director,
Site Director, Business Unit Director, Manager or Center Business Manager, of
the Company or such other individual designated by the Committee.

                                       2

<PAGE>

         2.12 EMPLOYMENT AGREEMENT means one or more written agreements entered
into by the Participant and the Employer covering the terms and conditions of
the Participant's employment with the Company, including written agreements
covering the terms and conditions of severance payable, if any, upon a
termination of the Participant's employment.

         2.13 GOOD REASON means, after notice by the Participant to the Company
and a fifteen (15) day opportunity by the Company to cure (during which it does
not cure the condition),

         (a) The Participant's principal place of work (not including regular
business travel) is relocated by more than fifty (50) miles;

         (b) The Participant's duties, responsibilities or authority as an
executive employee are materially reduced or diminished from those in effect
immediately prior to a Change in Control without the Participant's written
consent; provided that any reduction or diminishment in any of the foregoing
resulting merely from the acquisition of the Company and its existence as a
subsidiary or division of another entity shall not be sufficient to constitute
Good Reason;

         (c) The compensation received by the Participant is reduced in the
aggregate, and such reduction is not remedied within thirty (30) days of the
Participant's notice to the Company thereof;

         (d) A determination is made by the Participant in good faith that as a
result of a Change in Control, and a change in circumstances thereafter
significantly affecting his or her position, he or she is unable to carry out
the authorities, powers, functions or duties attached to his or her position and
the situation is not remedied within thirty (30) days after receipt of the
Company of written notice from the Participant of such determination;

         (e) The Company violates the material terms of the Plan with respect to
the Participant; or

         (f) There is a liquidation, dissolution, consolidation or merger of the
Company or transfer of all or a significant portion of its assets unless a
successor or successors (by merger, consolidation or otherwise) to which all or
a significant portion of its assets have been transferred shall have assumed
(either by operation of law or otherwise) all duties and obligations of the
Company under the Plan.

         2.14 PARTICIPANT means an Eligible Individual who has been designated
as eligible to participate under Section 3.

         2.15 PERFORMANCE GOALS means the criteria established by the Committee
pursuant to Section 4, which shall be used to determine whether a Participant is
entitled to an Annual Incentive Award and the amount of an Annual Incentive
Award.

         2.16 PLAN means the APAC Customer Services, Inc. Management Incentive
Plan, as set forth herein, and amended from time to time.

         2.17 PLAN YEAR means the Company's fiscal year.

                                       3

<PAGE>

         2.18 RETIREMENT means, to the extent such term is not defined in an
Employment Agreement, a Participant's termination of employment at or after the
"normal retirement date" as provided under the Company's qualified pension plan
in which the Participant is participating.

                                   SECTION 3
                          ELIGIBILITY AND PARTICIPATION

         3.1 GENERAL. The Committee, in its discretion, shall designate the
Eligible Individuals who are eligible to participate in the Plan for each Plan
Year. Eligible Individuals who are eligible to participate in the Plan shall be
so notified in writing, and shall be apprised of the Performance Goals and
related Annual Incentive Award opportunities for the relevant Plan Year within
the first 90 days of the Plan Year.

         3.2 PARTIAL YEAR PARTICIPATION. In the event that an Eligible
Individual becomes eligible to participate in the Plan subsequent to the
commencement of a Plan Year (either because he or she first becomes an Eligible
Individual or because he or she is designated as eligible to participate after
the commencement of the Plan Year), then such individual's Annual Incentive
Award shall be determined using his or her Base Salary multiplied by a fraction,
the numerator of which is the number of days in such year that the Participant
was eligible to participate in the Plan and the denominator of which is 365.

         3.3 NO RIGHT TO PARTICIPATE. No Participant, Eligible Individual or
other employee of the Company shall at any time have the right to be selected
for participation in the Plan for any Plan Year, despite having previously
participated in this Plan or another incentive plan of the Company.

                                   SECTION 4
                          ANNUAL INCENTIVE OPPORTUNITY

         4.1 PERFORMANCE GOALS.

         (a) COMPANY PERFORMANCE GOALS. Prior to the beginning of the Plan Year,
or as soon as practicable thereafter, the Committee, in its discretion, and
subject to the approval of the Board, shall establish Performance Goals for the
Company, the Company's business units and/or for each Participant (based on his
or her position in the Company). For the Performance Goals so established, the
Committee shall establish individual or aggregate threshold, target and maximum
levels of performance necessary to achieve and to earn all or a portion of an
Annual Incentive Award. The Performance Goals may be based upon both financial
and non-financial goals. Financial goals shall be measured by both revenue and
profitability, each of which shall be weighted depending upon the organizational
unit of the Company, as determined by the Committee. Unless the Committee
determines otherwise, earnings per share shall be used to measure profitability
for the Company. If the Committee establishes Performance Goals for the
Company's business units to achieve for a Plan Year, the Committee, in its
discretion, shall determine the profitability measures for such business units.

         (b) INDIVIDUAL PERFORMANCE GOALS. If the Committee determines that the
Annual Incentive Award shall be attributable, in part, to a Participant's
achievement of individual Performance Goals, such achievement shall be
determined by the person to whom the Participant

                                       4

<PAGE>

directly reports, subject to the approval of the Committee. Notwithstanding any
provision of the Plan to the contrary, a Participant shall not receive payment
of an Annual Incentive Award if the Participant does not achieve a "meets
expectations" or higher performance appraisal rating under the Company's
performance management plan or program.

         (c) ADJUSTMENT OF PERFORMANCE GOALS. The Committee shall have the right
to adjust the Performance Goals and the Annual Incentive Award opportunities
(either up or down) during a Plan Year if it determines that external changes or
other unanticipated business conditions have materially affected the fairness of
the Performance Goals and have unduly influenced the ability to achieve the
Performance Goals. Further, in the event of a Plan Year of less than twelve (12)
months, the Committee shall have the right to adjust the Performance Goals and
the Annual Incentive Award opportunities, in its sole discretion.

         4.2 ANNUAL INCENTIVE AWARDS. As soon as practicable after the end of
the Plan Year, the Committee, in its discretion, shall determine the amount of
each Participant's Annual Incentive Award. Unless the Committee determines
otherwise, Participants shall receive an Annual Incentive Award based upon their
position and percentage achievement of the Performance Goal or Goals established
for such position in accordance with the following table. Notwithstanding the
foregoing, if a Participant is promoted or demoted during the Plan Year, the
Annual Incentive Award will equal the sum of prorated amounts for each position
that the Participant was in during the Plan Year based on his or her performance
for the whole Plan Year and the number of days in such year that the Participant
served in each position.

<TABLE>
<CAPTION>
                                                               ANNUAL INCENTIVE AWARD
                                --------------------------------------------------------------------------------------
           POSITION                   THRESHOLD LEVEL               TARGET LEVEL                 MAXIMUM LEVEL
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                             <C>                          <C>                          <C>
   Chief Executive Officer          30% of Base Salary           60% of Base Salary           90% of Base Salary

  Executive Vice Presidents         25% of Base Salary           50% of Base Salary           75% of Base Salary

    Senior Vice Presidents          20% of Base Salary           40% of Base Salary           60% of Base Salary

       Vice Presidents              15% of Base Salary           30% of Base Salary           45% of Base Salary
Directors, SBU Directors, and
        Site Directors              10% of Base Salary           20% of Base Salary           30% of Base Salary
 Managers and Center Business
           Managers                 7.5% of Base Salary          15% of Base Salary          22.5% of Base Salary
------------------------------- ---------------------------- ---------------------------- ----------------------------
</TABLE>

         Annual Incentive Awards for percentage achievement of Performance Goals
between the threshold, target and maximum levels shall be determined by straight
line interpolation.

                                   SECTION 5
                        PAYMENT OF ANNUAL INCENTIVE AWARD

         5.1 FORM AND TIMING OF PAYMENT. As soon as practicable after the end of
each Plan Year (and, generally, during March), the Company shall pay to each
Participant a lump sum cash payment equal to the Participant's Annual Incentive
Award for the applicable Plan Year.

                                       5

<PAGE>

         5.2 PAYMENT OF PARTIAL AWARDS. In the event a Participant no longer
meets the eligibility criteria set forth in the Plan during the course of a
particular Plan Year, the Committee may, in its discretion, pay a partial award
for the portion of the Plan Year the individual was a Participant.

                                   SECTION 6
                            TERMINATION OF EMPLOYMENT

         6.1 TERMINATION FOR CAUSE. In the event the Company terminates the
Participant's employment for Cause, the Participant shall forfeit all rights to
receive an Annual Incentive Award for the Plan Year in which the Participant's
employment terminates.

         6.2 TERMINATION BY DEATH, DISABILITY OR RETIREMENT. Unless an
Employment Agreement specifically provides for the treatment of an annual
incentive award under the circumstances, in the event that the Participant's
employment with the Company terminates by reason of death, Disability, or
Retirement during a Plan Year, the Participant (or his or her beneficiary or
estate, as described below) shall be entitled to receive an annual incentive
award for such Plan Year equal to the product of (i) a Target Level Annual
Incentive Award times (ii) a fraction, the numerator of which is the number of
days that the Participant was participating hereunder in such year through the
day of termination and the denominator of which is 365. Payment under this
Section 6.2 may be made in accordance with Section 5.1 or sooner, as determined
by the Committee in its discretion.

         In the event a Participant's employment with the Company terminates by
reason of death, payments under this Section 6.2 shall be made to the
Participant's surviving spouse, if any, or other beneficiary designated in a
writing delivered to the Company (and in such form as is prescribed by the
Company). If the Participant has no surviving spouse, and has not designated a
beneficiary, the remaining payments shall be made to the Participant's estate.

         6.3 OTHER TERMINATION. Unless an Employment Agreement specifically
provides for the treatment of an annual incentive award under the circumstances,
it is a condition to the receipt of an Annual Incentive Award that the
Participant be employed or that the Participant's employment terminated because
of death, Disability or Retirement, and the Participant shall not be entitled to
receive an Annual Incentive Award for the Plan Year in which the Participant's
employment terminates unless such termination is because of death, Disability or
Retirement. However, the Committee may, in its discretion, pay a prorated award
for the Plan Year in which the Participant's employment terminates other than
death, Disability or Retirement, in an amount determined by the Committee.

         6.4 CHANGE IN CONTROL TERMINATION. Unless an Employment Agreement
specifically provides for the treatment of an annual incentive award under the
circumstances, in the event that the Company terminates a Participant's
employment without Cause coincident with or after a Change in Control, or, the
Participant resigns from employment with the Company due to an event
constituting Good Reason that occurs coincident with or after a Change in
Control, the Participant shall be entitled to receive an annual incentive award
for such Plan Year equal to the product of (i) a Target Level Annual Incentive
Award, based on the highest Base Salary rate paid to the Participant for such
Plan Year, times (ii) a fraction, the

                                       6

<PAGE>

numerator of which is the number of days in such year through the day of
termination and the denominator of which is 365.

                                   SECTION 7
                             RIGHTS OF PARTICIPANTS

         7.1 NO EMPLOYMENT RIGHTS. Nothing in the Plan shall interfere with or
limit in any way the right of the Company to terminate any Eligible Individual's
employment at any time, nor confer upon any Eligible Individual any right to
continue in the employ of the Company.

         7.2 NONTRANSFERABILITY. No Participant or any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
otherwise encumber, transfer, hypothecate or convey in advance of actual receipt
of the amounts, if any, payable hereunder, or any part thereof, which are, and
all rights to which are, expressly declared to be unassignable and
non-transferable. No part of the amounts payable shall, prior to actual payment,
be subject to seizure or sequestration for the payment of any debts, judgment,
alimony or separate maintenance owed by a Participant or any other person, nor
be transferable by operation of law in the event of a Participant's or any other
person's bankruptcy or insolvency.

                                   SECTION 8
                                 ADMINISTRATION

         The Committee shall administer the Plan in accordance with its terms,
and shall have the discretion and authority necessary to carry out the
administration of the Plan. With respect to Participants whose position is below
the Senior Vice President level, the Committee may delegate, to one or more
individuals, some or all of its authority to administer the Plan and to permit
such individuals to have the discretion necessary to carry out the
administration of the Plan. Such authority shall include the authority to:

         (a) Select the Eligible Individuals eligible to participate in the Plan
for each Plan Year or portion thereof;

         (b) Determine the Performance Goals applicable to the payment of Annual
Incentive Awards, and the amount of the Annual Incentive Awards payable upon the
Participants' achievement of the Performance Goals;

         (c) Impose such limitations, restrictions, an conditions upon the
receipt of Annual Incentive Awards as it deems appropriate;

         (d) Interpret the Plan, make any necessary factual determinations under
the Plan, adopt, amend, and rescind administrative guidelines and other rules
and regulations relating to the Plan;

         (e) Correct any defect or omission or reconcile any inconsistency in
this Plan or any award of payment hereunder, and

         (f) Make all other necessary determinations and take all other actions
necessary or advisable for the implementation and administration of the Plan.

                                       7

<PAGE>

         The Committee's determinations on matters within its authority shall be
conclusive and binding upon all parties.

                                   SECTION 9
                           AMENDMENT AND MODIFICATION

         The Committee, in its sole discretion, without notice, at any time and
from time to time, may modify or amend, in whole or in part, any or all of the
provisions of the Plan, or suspend or terminate it entirely; provided, however,
that no such modification, amendment, suspension, or termination may, without
the consent of a Participant (or his or her beneficiary in the case of the death
of the Participant), reduce the right of a Participant (or his or her
beneficiary, as the case may be) to a payment or distribution hereunder to which
he or she is otherwise entitled.

                                   SECTION 10
                                  MISCELLANEOUS

         10.1 GOVERNING LAW. The Plan, and all agreements hereunder, shall be
governed by and construed in accordance with the laws of the State of Illinois.

         10.2 WITHHOLDING TAXES. The Company shall have the right to deduct from
all payments under the Plan any Federal, state, or local taxes required by law
to be withheld with respect to such payments.

         10.3 SHAREHOLDER APPROVAL. This Plan is adopted and any Annual
Incentive Awards hereunder are made subject to the condition that the Plan be
approved by the shareholders of the Company. If the Plan is not so approved, it
and such Awards shall be null and void and without effect.

         10.4 COSTS OF THE PLAN. All costs of implementing and administering the
Plan shall be borne by the Company.

         10.5 UNSECURED GENERAL CREDITOR. Participants and their heirs,
successors and assigns shall have no legal or equitable rights, interest or
claims in any property or assets of the Company by virtue of participation in
the Plan. The Company's obligation under the Plan shall be that of an unfunded
and unsecured promise of the Company to pay money in the future.

         10.6 ENTIRE AGREEMENT. Except to the extent an Employment Agreement
expressly provides for additional or other terms pertaining to a Participant's
or beneficiary's annual incentive compensation, including, but not limited to,
guaranteed bonuses or annual incentive award opportunities equal to a percentage
of Base Salary different from the percentages set forth above in Section 4.2,
this Plan and any written amendments thereto are the entire agreement between
the Company and the Participants and beneficiaries regarding the Plan. No oral
statement regarding the Plan may be relied upon by any Participant or
beneficiary.

         10.7 LIMITATIONS OF LIABILITY. The liability of the Company under this
Plan is limited to the obligations expressly set forth in the Plan, and no term
or provision of the Plan may be construed to impose any further or additional
duties, obligations or costs on the Company or the Committee not expressly set
forth in the Plan.

                                       8

<PAGE>

         10.8 SUCCESSORS. All obligations of the Company under the Plan shall be
binding upon and inure to the benefit of any successor to the Company, whether
the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

         10.9 GENDER AND NUMBER. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.

         10.10 HEADINGS. The headings and captions contained herein are provided
for convenience only, and are not to be used to in the interpretation or
construction of any provision contained in the Plan.

         10.11 SEVERABILITY. In the event any provision of the Plan shall be
held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

                                      * * *

         IN WITNESS WHEREOF, the Company has executed this Plan by its duly
authorized officers as of this _____ day of May, 2000.

                           APAC CUSTOMER SERVICES, INC.

                           By: ______________________________

                           Its: ______________________________

                                      9<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement"), executed this 7th day of
November, 2000 to be effective as of October 16, 2000, is between
GlobalScape, INC., a Delaware corporation (the "Employer"), and Timothy
Nicolaou ("Employee").

                                R E C I T A L S:

         A.       The Employer desires to offer employment to the Employee and
                  Employee desires to be employed by Employer.

         B.       Employer and Employee agree to enter into an Executive
                  Employment Agreement for a one-year term on the terms and
                  conditions herein provided.

         C.       The Employer considers the maintenance of a sound and
                  effective management team, including Employee, essential to
                  protecting and enhancing its best interests and those of its
                  stockholders.

         D.       Employee will be an officer of the Employer and Employee will
                  be nominated to become a member of Employer's Board of
                  Directors.

         NOW, THEREFORE, in consideration of the Employer's agreement to
employ Employee pursuant to the terms of this Agreement and Employee's future
employment with Employer, and other good and valuable consideration, the
parties agree as follows:

         SECTION 1. EMPLOYMENT. The Employer hereby employs Employee, and
Employee hereby accepts employment, upon the terms and subject to the
conditions stated in this Agreement.

         SECTION 2. DUTIES. Employee shall be employed as Chief Executive
Officer of the Employer, or such other comparable positions with Employer to
which he may be appointed by the Board of Directors of the Employer (the
"Board"). It is understood that Employee may be requested from time to time
to provide assistance or services to, or act as an officer or director of,
the Employer or any of its subsidiaries or other affiliates. Employee shall
perform such services and, if elected as a director or officer of any such
company, shall hold such office (and discharge its duties) without additional
compensation other than the compensation set forth in this Agreement;
provided, however, that this Agreement does not prohibit (or require) the
affiliates of Employer from offering additional compensation. Employee agrees
to devote his full work time and best efforts to the performance of the
duties as an Employee of Employer and to the

                                        -1-
<PAGE>

performance of such other duties as assigned him from time to time by the
Board or the Chairman of the Board.

         SECTION 3. TERM. The initial term of employment of Employee
hereunder shall continue for one year, from October 16, 2000 ("Employment
Date") until September 30, 2001, unless earlier terminated pursuant to
Section 6 herein. The term of this Agreement shall continue for an additional
one year term unless either Employee or Employer notifies the other party no
less than thirty (30) days prior to the end of the initial term or any
subsequent term.

         SECTION 4. COMPENSATION AND BENEFITS. In consideration for the
services of Employee hereunder, the Employer shall compensate Employee as
follows:

         (a) BASE SALARY. Until the termination of Employee's employment
hereunder, Employer shall pay Employee a base salary at the rate of at least
$180,000 per year ("Base Salary"), payable in accordance with the regular
payroll practices of the Employer for executives, less such deductions or
amounts as are required to be deducted or withheld by applicable laws or
regulations and less such other deductions or amounts, if any, as are
authorized by Employee. The Base Salary may not be decreased at any time
during the term of Employee's employment hereunder. Any increase in Base
Salary shall be in the sole discretion of the Compensation Committee of the
Board.

         (b) EXECUTIVE BONUS PLAN. Employee shall be eligible to receive from
the Employer such management incentive bonuses as may be provided in
management incentive bonus plans adopted from time to time by Employer. The
terms stated on the attached EXHIBIT A are incorporated herein.

         (c) VACATION. Employee shall be entitled time off in accordance with
the Employee's vacation and absence policy, as it may be modified from time
to time during Employee's employment hereunder, provided that Employee will
have no less than four (4) weeks of paid vacation during the initial term of
this Agreement, and each subsequent year if the initial term is extended.

         (d) LIFE INSURANCE BENEFITS. Employer shall pay the premiums
allocable to a term life insurance policy in the face amount of $150,000
covering Employee as the named insured, subject to Employee's passing a
standard physical examination in order to permit issuance of the policy at
standard (non-rated) premiums and satisfaction of any other standard
underwriting requirements. Employee shall be the owner of such policy and
shall have the right to designate the beneficiary of the policy proceeds.
Employee shall be liable for income taxes with respect to premium amounts
includable in Employee's taxable income.

         (e) GROUP INSURANCE BENEFITS. Employee shall be entitled to
participate in the Employer's group health and disability programs as are
made available to the Employer's other

                                        -2-
<PAGE>

executives and officers and the Employee's participation in such programs
shall be at the same rates which are available to the Employer's other
executives and officers.

         (f) SAVINGS PLANS. Employee shall be entitled to participate in
Employer's 401(k) plan, or other retirement or savings plans as are made
available to the Employer's other executives and officers on the same terms
which are available to the Employer's other executives and officers;

         SECTION 5. EXPENSES. The parties anticipate that in connection with
the services to be performed by Employee pursuant to the terms of this
Agreement, Employee will be required to make payments for travel,
entertainment of business associates and similar expenses. Employer shall
reimburse Employee for all appropriate and reasonable expenses authorized by
Employer and incurred by Employee in the performance of his duties hereunder.
Employee shall comply with such budget limitations and approval and reporting
requirements with respect to expenses as Employer may establish from time to
time.

         SECTION 6. TERMINATION.

         (a) GENERAL. Employee's employment hereunder shall commence on the
Employment Date and continue until the end of the term specified in Section
3, except that the employment of Employee hereunder shall terminate prior to
such time in accordance with the following:

                  (i) DEATH OR DISABILITY. Upon the death of Employee during the
         term of his employment hereunder or, at the option of Employer, in the
         event of Employee's Disability, upon 30 days' notice to Employee.
         "Disability" with respect to an Employee shall be deemed to exist if
         the Employee meets the definition of either "disabled" or "disability"
         under the terms of the Employer's long-term disability benefit program
         (including the definitions for total or partial disability). Any
         refusal by Employee to submit to a reasonable medical examination to
         determine whether Employee is so disabled shall be deemed to constitute
         conclusive evidence of Employee's disability.

                  (ii) FOR CAUSE. For "Cause" immediately upon written notice by
         Employer to Employee. A termination shall be for "Cause" if:

                  (1)      Employee commits fraud, bribery, embezzlement or
                           other material dishonesty with the respect to the
                           business of Employer, or Employer discovers that
                           Employee has committed any such act in the past with
                           respect to a previous employer, or;

                  (2)      Employee commits a felony or any criminal act
                           involving moral turpitude or Employer discovers that
                           Employee has committed any such act in the past; or

                                        -3-
<PAGE>

                  (3)      Employee commits a material breach of any of the
                           covenants, representations, terms or provisions
                           hereof; or

                  (4)      Employee violates any material instructions or
                           policies of Employer with respect to the operation of
                           its business or affairs or Employee fails in a
                           material way to obey written directions delivered to
                           Employee by the Employer's Board or Chairman of the
                           Board; or

                  (5)      Employee commits or omits to perform any act the
                           performance of which or the omission of which
                           constitutes substantial failure of Employee to
                           diligently and effectively perform his duties to
                           Employer or has a material adverse effect or could
                           materially adversely affect the Employer's business
                           reputation; or

                  (6)      Employee uses illegal drugs.

                  (iii) WITHOUT CAUSE. Without Cause immediately upon notice by
         Employer to Employee.

                  (iv) BY THE EMPLOYEE FOR GOOD CAUSE. Employee may terminate
         his employment hereunder for Good Cause upon written notice to the
         Company setting forth the nature of such Good Cause in reasonable
         detail. "Good Cause" shall mean:

                  (1)      the material failure of Employer to provide Employee
                           the base salary and incentive compensation and
                           benefits in accordance with the terms of Section 4
                           herein;

                  (2)      the material diminution in the nature or scope of
                           Employee's responsibilities, duties or authority;

                  (3)      the occurrence of a Change in Control (as defined
                           herein);

                  (4)      Notice by the Employer under Section 3 that the
                           Employer will not renew this Agreement; or

                  (5)      Failure to elect Employee to the Board of Directors
                           of Employer or removal of Employee from his Board
                           position, once elected;

                  (6)      Failure to issue the options described in the Offer
                           Letter to Employee on Exhibit A on or before January
                           16, 2001.

         (b)      SEVERANCE PAY.

                                        -4-
<PAGE>

                  (i) TERMINATION UPON DEATH OR DISABILITY; TERMINATION WITHOUT
         CAUSE; TERMINATION FOR EMPLOYEE'S GOOD CAUSE. In the event Employee's
         employment hereunder is terminated pursuant to Section 6(a)(i), (iii)
         or (iv), Employer shall pay Employee (or his estate) a cash amount
         equal to Employee's then current Base Salary. Additionally, following
         such termination, the Employer shall have the continuing obligation to
         contribute to the cost of Employee's participation in the Employer's
         group medical and insurance plans, if any, provided that Employee is
         entitled to continue such participation under applicable law and plan.
         Employer will also pay Employee (or his estate), in the event of such
         termination, any incentive compensation that is earned but unpaid,
         based on operations of the Company for the whole year, prorated through
         the date of his termination or death. Any unvested stock options held
         by Employee at the time of death or termination shall vest on the date
         of death or termination. The exercise period for all non-qualified
         options (as determined on the vesting date), whether vested prior to
         or on the date of death or termination, shall be six months from the
         date of death or termination if death or termination occurs on or
         before October 16, 2001, nine months from the date of death or
         termination if death or termination occurs after October 16, 2001 and
         before October 16, 2002 and twelve months from the date of death or
         termination if death or termination occurs on or after October 16,
         2002. Termination by Employee for good cause under clause 6(a)(iv)(i)
         above does not waive the Employer's obligation to issue the stock
         options described on Exhibit A or Employee's right to specific
         performance of the obligation, or the economic equivalent thereof, even
         after termination.

         (c) CHANGE IN CONTROL. If a "Change in Control" occurs during
Employee's employment under this Agreement, and if Employee's employment is
terminated "Without Cause" pursuant to Section 6(a)(iii) above prior to the
end of a period of twenty-four (24) months beyond the month in which a
"Change in Control" of the Employer occurs, or if Employee voluntarily
terminates his employment prior to the end of a period three (3) months
beyond the month in which a Change in Control of the Employer occurs,
Employee shall receive the amount determined pursuant to Section 6(b)(i)
above. A "Change in Control" of Employer shall be deemed to have occurred if
(i) any "person" or "group" (as such terms are used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Act")),
becomes the "beneficial owner" (as such term is defined in Rule 13d-3 under
the Act), directly or indirectly, of outstanding securities of Employer
representing 40% of more of the combined voting power of the outstanding
securities of the Employer, or (ii) during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board
cease for any reason to constitute a majority of the Board (except that any
new director who is elected by the Board to fill a vacancy created by the
death, resignation or disqualification of a member of the Board shall not be
considered a new member of the Board for purposes of this definition), or
(iii) the shareholders of Employer approve (A) a merger or consolidation of
Employer with any other entity, other than a merger or consolidation which
would result in the voting securities of Employer outstanding immediately
prior thereto continuing to represent (either by remaining

                                        -5-
<PAGE>

outstanding or by being converted into voting securities of the surviving
entity) at least 60% of the combined voting power of the voting securities of
Employer, or (B) a plan of complete liquidation of Employer, or (C) an
agreement or agreements for the sale or disposition, in a single transaction
or series of related transactions, by the Employer of all or substantially
all of the property and assets of Employer.

         (d) VOLUNTARY TERMINATION BY EMPLOYEE. Except as provided in Section
6(a)(iv), in the event that Employee's employment with Employer is
terminated by Employee, such termination shall be a breach of this Agreement
and the Employer shall have no further obligations hereunder from and after
the date of such termination.

         SECTION 7. INVENTIONS; ASSIGNMENT.

         (a) INVENTIONS DEFINED. All rights to discoveries, inventions,
improvements, designs and innovations (including all data and records
pertaining thereto) that relate to the business of Employer, including its
affiliates, whether or not able to be patented, copyrighted or reduced to
writing, that Employee may discover, invent or originate during the term of
his employment hereunder, and for a period of six months thereafter, either
alone or with others and whether or not during working hours or by the use of
the facilities of Employer ("Inventions"), shall be the exclusive property of
Employer. Employee shall promptly disclose all Inventions to Employer, shall
execute at the request of Employer any assignments or other documents
Employer may deem necessary to protect or perfect its rights therein, and
shall assist Employer, at Employer's expense, in obtaining, defending and
enforcing Employer's rights therein. Employee hereby appoints Employer as his
attorney-in-fact to execute on his behalf any assignments or other documents
deemed necessary by Employer to protect or perfect its rights to any
Inventions.

         (b) COVENANT TO ASSIGN AND COOPERATE. Without limiting the
generality of the foregoing, Employee shall assign and transfer to Employer
the world-wide right, title and interest of Employee in the Inventions.
Employee agrees that Employer may apply for and receive patent rights
(including Letters Patent in the United States) for the Inventions in
Employer's name in such countries as may be determined solely by Employer.
Employee shall communicate to Employer all facts known to Employee relating
to the Inventions and shall cooperate with Employer's reasonable requests in
connection with vesting title to the Inventions and related patents
exclusively in Employer and in connection with obtaining, maintaining and
protecting Employer's exclusive patent rights in the Inventions.

         (c) SUCCESSORS AND ASSIGNS. Employee's obligations under this
Section 7 shall inure to the benefit of Employer, its affiliates and their
respective successors and assigns and shall survive the expiration of the
term of this Agreement for such time as may be necessary to protect the
proprietary rights of Employer and its affiliates in the Inventions.

                                        -6-
<PAGE>

         SECTION 8. CONFIDENTIAL INFORMATION.

         (a) ACKNOWLEDGMENT OF PROPRIETARY INTEREST. Employee acknowledges
the proprietary interest of Employer and its affiliates in all Confidential
Information (as defined below). Employee agrees that all Confidential
Information learned by Employee during his employment with Employer or
otherwise, whether developed by Employee alone or in conjunction with others
or otherwise, is and shall remain the exclusive property of Employer.
Employee further acknowledges and agrees that his disclosure of any
Confidential Information will result in irreparable injury and damage to
Employer.

         (b) CONFIDENTIAL INFORMATION DEFINED. "Confidential Information"
means all trade secrets, copyrightable works, confidential or proprietary
information of Employer or its affiliates, including without limitation, (i)
information derived from reports, investigations, experiments, research and
work in progress, (ii) methods of operation, (iii) market data, (iv)
proprietary computer programs and codes, (v) drawings, designs, plans and
proposals, (vi) marketing and sales programs, (vii) the identities of clients
or customers, (viii) historical financial information and financial
projections, (ix) pricing formulae and policies, (x) all other concepts,
ideas, materials and information prepared or performed for or by Employer and
(xi) all information related to the business, services, products, purchases
or sales of Employer or any of its suppliers and customers, other than
information that is publicly available.

         (c) COVENANT NOT TO DIVULGE CONFIDENTIAL INFORMATION. Employer is
entitled to prevent the disclosure of Confidential Information. As a portion
of the consideration for the employment of Employee and for the compensation
being paid to Employee by Employer, Employee agrees at all times during the
term of his employment hereunder and thereafter to hold in strict confidence
and not to disclose or allow to be disclosed to any person, firm or
corporation, other than to persons engaged by Employer to further the
business of Employer, and not to use except in the pursuit of the business of
Employer, the Confidential Information, without the prior written consent of
Employer.

         (d) RETURN OF MATERIALS AT TERMINATION. In the event of any
termination or cessation of his employment with Employer for any reason,
Employee shall promptly deliver to Employer all documents, data and other
information derived from or otherwise pertaining to Confidential Information.
Employee shall not take or retain any documents or other information, or any
reproduction or excerpt thereof, containing or pertaining to any Confidential
Information.

         SECTION 9. NON-SOLICITATION.

         (a) SOLICITATION OF EMPLOYEES. During Employee's employment with
Employer and for a period of twelve (12) months after termination of such
employment at any time and for any reason, Employee shall not solicit,
participate in or promote the solicitation of any person who was employed by
Employer or any of its affiliates at the time of Employee's termination of
employment with Employer to leave the employ of Employer or any of its
affiliates, or, on behalf

                                        -7-

<PAGE>

of himself or any other person, hire, employ or engage any such person.
Employee further agrees that, during such time, if an employee of Employer or
any of its affiliates contacts Employee about prospective employment,
Employee will inform such employee that he or she cannot discuss the matter
further without the consent of Employer (and the applicable affiliate).

         (b) SOLICITATION OF CLIENTS, CUSTOMERS, ETC. During Employee's
employment with Employer and for a period of twelve (12) months after
termination of Employee's employment at any time and for any reason, Employee
shall not, directly or indirectly, solicit any person who, at the time of
termination of Employee's employment with Employer, was a client, customer,
policyholder, vendor, consultant or agent of Employer or its affiliates to
discontinue business, in whole or in part, with Employer or its affiliates.
Employee further agrees that, during such time, if such a client, customer,
policyholder, vendor, or consultant or agent contacts Employee about
discontinuing business with Employer or moving that business elsewhere,
Employee will inform such client, customer, policyholder, vendor, consultant
or agent that he or she cannot discuss the matter further without the consent
of Employer (and the applicable affiliate).

         SECTION 10. NO-COMPETE.

         (a) COMPETITION DURING EMPLOYMENT. Employee agrees that during the
term of his employment with Employer, neither he nor any of his affiliates,
will directly or indirectly compete with Employer or its affiliates in any
way, and that he will not act as an officer, director, employee, consultant,
shareholder, lender, or agent of any entity which is engaged in any business
of the same nature as, or in competition with, the businesses in which
Employer and its affiliates are now engaged or in which Employer or its
affiliates become engaged during the term of employment; provided, however,
that this Section 10(a) shall not prohibit Employee or any of his affiliates
from: (i) purchasing or holding an aggregate equity interest of up to 1%, so
long as Employee and his affiliates combined do not purchase or hold an
aggregate equity interest of more than 5%, in any business in competition
with Employer and its affiliates. Furthermore, Employee agrees that during
the term of employment, he will undertake no planning for the organization of
any business activity competitive with the work he performs as an employee of
Employer and Employee will not combine or conspire with any other employees
of Employer and its affiliates for the purpose of the organization of any
such competitive business activity.

         (b) COMPETITION FOLLOWING EMPLOYMENT. In order to protect Employer
against the unauthorized use or the disclosure of any Confidential
Information of Employer and its affiliates presently known or hereinafter
obtained by Employee during his employment under this Agreement, Employee
agrees that for a period of twelve (12) months after the termination or
cessation of his employment with Employer at any time and for any reason, and
regardless of whether any payments are made to Employee under this Agreement
as a result of such termination, neither Employee nor any of his affiliates,
shall, directly or indirectly, for itself or himself or on behalf of any
other corporation, person, firm, partnership, association, or any other
entity (whether as an individual, agent, servant, employee, employer,
officer, director, shareholder, investor, principal, consultant or in any
other capacity):

                                        -8-
<PAGE>

                         (i) engage or participate in any business which engages
                in competition with such businesses being conducted by Employer
                or any of its affiliates during the term of employment anywhere
                in any state in the United States or in any foreign country
                where the Employer or any of its affiliates writes, develops or
                markets file management software for the Internet, multimedia
                utilities or Internet or Web based development tools, including
                file compression, zipping or ripping capabilities, or any other
                business in which the Employer or any of its affiliates has been
                actively engaged during the term Employee performed services for
                the Employer; provided, however, that this provision shall not
                prohibit Employee from purchasing or holding an aggregate equity
                interest of up to 1%, so long as Employee and his affiliates
                combined do not purchase or hold an aggregate equity interest of
                more than 5%, in any business in competition with Employer;

                        (ii) assist or finance any person or entity in any
               manner or in any way inconsistent with the intents and purposes
               of this Agreement.

         SECTION 11. GENERAL.

         (a) NOTICES. All notices and other communications hereunder shall be
in writing or by written telecommunication, and shall be deemed to have been
duly given if delivered personally or if mailed by certified mail, return
receipt requested or by written telecommunication, to the relevant address
set forth below, or to such other address as the recipient of such notice or
communication shall have specified to the other party in accordance with this
Section 11(a):

        If to Employer, to:

        GlobalScape, Inc.
        6000 Northwest Parkway, Suite 100
        San Antonio, Texas, 78249
        Attention:  Chairman of the Board

         If to Employee, to the Employee's last known address appearing on
Employer's records

         (b) WITHHOLDING. All payments required to be made to Employee by
Employer under this Agreement shall be subject to the withholding of such
amounts, if any, relating to federal, state and local taxes as may be
required by law.

         (c) EQUITABLE REMEDIES. Each of the parties hereto acknowledges and
agrees that upon any breach by Employee of his obligations under any of
Sections 7, 8, 9, and 10 Employer shall suffer immediate, great and
irreparable injury and shall have no adequate remedy at law. Accordingly, in
event of such breach, Employer shall be entitled, in addition to other
remedies

                                        -9-
<PAGE>

and without showing actual damages, to specific performance and other
appropriate injunctive and equitable relief.

         (d) SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid or unenforceable, such provision shall be fully severable,
and this Agreement shall be construed and enforced as if such illegal,
invalid or unenforceable provision never comprised a part hereof, and the
remaining provisions hereof shall remain in full force and effect and shall
not be affected by the illegal, invalid or unenforceable provision or by its
severance. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as part of this Agreement a
provision as similar in its terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

         (e) WAIVERS. No delay or omission by either party in exercising any
right, power or privilege hereunder shall impair such right, power or
privilege, nor shall any single or partial exercise of any such right, power
or privilege preclude any further exercise thereof or the exercise of any
other right, power or privilege.

         (f) COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

         (g) CAPTIONS. The captions in this Agreement are for convenience of
reference only and shall not limit or otherwise affect any of the terms or
provisions hereof.

         (h) INTERPRETATION OF AGREEMENT. This Agreement shall be construed
according to its fair meaning and not for or against either party. Use of the
words "herein," "hereof," "hereto," "hereunder" and the like in this
Agreement refer to this Agreement only as a whole and not to any particular
section or subsection of this Agreement, unless otherwise noted. The
masculine gender shall be deemed to denote the feminine or neuter genders,
the singular to denote the plural, and the plural to denote the singular,
where the context so permits.

         (i) BINDING AGREEMENT; ASSIGNMENT. This Agreement shall be binding
upon and inure to the benefit of the parties and shall be enforceable by the
personal representatives and heirs of Employee and the successors and assigns
of Employer. The affiliates of Employer shall be considered third party
beneficiaries of this Agreement with respect to any services provided by
Employee to them and in connection with Employee's covenants in Sections
7,8,9 and 10 hereof. This Agreement may be assigned by the Employer; provided
that in the event of any such assignment, the Employer shall remain liable
for all of its obligations hereunder and shall be liable for all obligations
of all such assignees hereunder. If Employee dies while any amounts would
still be payable to him hereunder, such amounts shall be paid to Employee's
estate. This Agreement is not otherwise assignable by Employee.

                                        -10-
<PAGE>

         (j) ENTIRE AGREEMENT. This Agreement contains the entire
understanding of the parties, supersedes all prior agreements and
understandings relating to the subject matter hereof and may not be amended
except by a written instrument hereafter signed by each of the parties
hereto; provided, however, that the Employer and Employee agree that the
terms of Exhibit A are incorporated herein.

         (k) GOVERNING LAW. This Agreement and the performance hereof shall
be construed and governed in accordance with the laws of the State of Texas,
without regard to its choice of law principles.

         (l) ARBITRATION. Without limiting Employer's right to seek equitable
remedies under Section 11(c) above, Employer and Employee agree that any
dispute or controversy arising under or in connection with this Agreement
shall be settled first by attendance at a mandatory mediation process and, if
not resolved by mediation, by arbitration. If the parties are unable to agree
on a mediator, either party may petition a Travis County state district court
judge for assistance in selecting a mediator. Arbitration under this
Agreement shall be governed by the Federal Arbitration Act and proceed in San
Antonio, Texas in accordance with the rules of the American Arbitration
Association ("AAA"). Arbitration will be conducted before a panel of three
neutral arbitrators selected from a AAA list of proposed arbitrators with
business law experience. Either party may take any legal action needed to
protect any right pending completion of the arbitration. The arbitrator will
determine whether an issue is arbitrable and will give effect to applicable
statutes of limitation. The arbitrator has the discretion to decide, upon
documents only or with a hearing, any motion to dismiss for failure to state
a claim or any motion for summary judgment. Discovery shall be governed by
the Federal Rules of Civil Procedure and the Federal Rules of Evidence. All
information developed by the arbitration or litigation shall be held in
confidence subject to such protective orders as the arbitrator deems useful
to ensure complete confidentiality. The decision of the arbitrator shall be
final and binding on all parties to this Agreement, and judgment thereon may
be entered in any court having jurisdiction over the parties. All costs of
the arbitration proceeding or litigation to enforce the arbitration award
shall be paid by the party against whom the arbitrator decides.

         (m) EMPLOYEE REPRESENTATIONS. Employee represents and certifies to
Employer that he: (i) has received a copy of this Agreement for review and
study and has had ample time to review it before signing; (ii) has read this
Agreement carefully; (iii) has been given a fair opportunity to discuss and
negotiate the terms of this Agreement; (iv) understands its provisions; (v)
has had the opportunity to consult his attorney; (vi) has determined that it
is in his best interest to enter into his Agreement; (vii) has not been
influenced to sign this Agreement by any statement or representation by
Employer or its counsel not contained in this Agreement; and (viii) enters
into this Agreement knowingly and voluntarily.

                                        -11-

<PAGE>

         EXECUTED as of the date and year first above written.

                                 GLOBALSCAPE, INC.

                                 By:
                                    -------------------------------------------
                                          Chairman of Board of Directors

                                 ----------------------------
                                 Tim Nicolaou

                                        -12-
<PAGE>

                                    EXHIBIT A

                              Terms and Conditions

Title:              Chief Executive Officer, reporting to the Chairman of the
                    Board, Art Smith

Salary:             $180,000 annually; to be paid bi-weekly

Bonus:              Potential award of a minimum of 100% of a bonus pool set at
                    $220k. You will be guaranteed a minimum bonus of $100,000
                    for the first year. Said bonus to be on a calendar quarterly
                    basis and to be paid within 30 days of the closing of the
                    quarter.

Stock options:      You will be granted 700,000 options priced at $1.00; 200,000
                    to vest on the date of GlobalSCAPE's IPO or at the end of
                    the first year of employment, whichever comes first; 200,000
                    to vest one year from the date of GlobalSCAPE's IPO or at
                    the end of the second year of employment, whichever comes
                    first; 100,000 to vest on each of the first, second and
                    third anniversary of hire.

Relocation:         The company will pay for the moving of household goods from
                    your current residence to a location in the San Antonio
                    area. [Such location to be determined at a later date.] The
                    company will pay for the storage of such household goods
                    should that be required. The company will provide temporary
                    living expenses until you relocate to the San Antonio area.
                    The company will compensate you for four return trips to
                    your present home each month. The company will also pay for
                    two house hunting trips for your spouse. You will be
                    reimbursed for the expenses associated with the selling of
                    your primary residence and the purchasing of a new
                    residence. Expenses associated with your relocation will be
                    grossed up for tax purposes. Your relocation must be
                    completed within one year from your date of hire.

Benefits:           You will be eligible to participate in all the company
                    benefits that GlobalSCAPE provides to its employees
                    according to their respective participation dates. You will
                    be eligible for four weeks of vacation.

Signing bonus:      You will be paid a signing bonus of $50,000. Such
                    bonus will be paid as follows, $25,000 to be paid on date of
                    hire, and $25,000 to be paid upon you and your family's
                    relocation to the San Antonio area.

                                        -13-
<PAGE>

As the Chief Executive Officer of GlobalSCAPE, you will have a seat on
GlobalSCAPE's board of directors. In this role, and working in conjunction
with GlobalSCAPE's board of directors, you will be responsible for recruiting
independent directors for GlobalSCAPE. The recruitment of independent
directors, along with the creation and acceptance of a strategic plan for
GlobalSCAPE have to be at the top of your priority list. I would also think
that the recruiting of key senior personnel, especially a CFO, would be a
priority. Tim, you will have full P&L responsibility for GlobalSCAPE, and you
will be given whatever authority that the board of directors deems it
necessary for you to fulfill your responsibilities as CEO.

                                        -14-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]