Document:

SECURITY AGREEMENT

      SECURITY AGREEMENT (this "Agreement"), dated as of June 21, 2005, by and
among Globalnet Corporation, a Nevada corporation ("Company"), and the secured
parties signatory hereto and their respective endorsees, transferees and assigns
(collectively, the "Secured Party").

                              W I T N E S S E T H:

      WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof, between Company and the Secured Party (the "Purchase Agreement"),
Company has agreed to issue to the Secured Party and the Secured Party has
agreed to purchase from Company certain of Company's 12% Callable Secured
Convertible Notes, due three years from the date of issue (the "Notes"), which
are convertible into shares of Company's Common Stock, par value $.005 per share
(the "Common Stock"). In connection therewith, Company shall issue the Secured
Party certain Common Stock purchase warrants (the "Warrants"); and

      WHEREAS, in order to induce the Secured Party to purchase the Notes,
Company has agreed to execute and deliver to the Secured Party this Agreement
for the benefit of the Secured Party and to grant to it a security interest in
certain property of Company to secure the prompt payment, performance and
discharge in full of all of Company's obligations under the Notes and exercise
and discharge in full of Company's obligations under the Warrants.

      NOW, THEREFORE, in consideration of the agreements herein contained and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

      1. Certain Definitions. As used in this Agreement, the following terms
shall have the meanings set forth in this Section 1. Terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the UCC
(such as "general intangibles" and "proceeds") shall have the respective
meanings given such terms in Article 9 of the UCC.

            (a) "Collateral" means the collateral in which the Secured Party is
granted a security interest by this Agreement and which shall include the
following, whether presently owned or existing or hereafter acquired or coming
into existence, and all additions and accessions thereto and all substitutions
and replacements thereof, and all proceeds, products and accounts thereof,
including, without limitation, all proceeds from the sale or transfer of the
Collateral and of insurance covering the same and of any tort claims in
connection therewith:

                  (i) All Goods of the Company, including, without limitations,
            all machinery, equipment, computers, motor vehicles, trucks, tanks,
            boats, ships, appliances, furniture, special and general tools,
            fixtures, test and quality control devices and other equipment of
            every kind and nature and wherever situated, together with all
            documents of title and documents representing the same, all
            additions and accessions thereto, replacements therefor, all parts
            therefor, and all substitutes for any of the foregoing and all other
            items used and useful in connection with the Company's businesses
            and all improvements thereto (collectively, the "Equipment"); and

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                  (ii) All Inventory of the Company; and

                  (iii) All of the Company's contract rights and general
            intangibles, including, without limitation, all partnership
            interests, stock or other securities, licenses, distribution and
            other agreements, computer software development rights, leases,
            franchises, customer lists, quality control procedures, grants and
            rights, goodwill, trademarks, service marks, trade styles, trade
            names, patents, patent applications, copyrights, deposit accounts,
            and income tax refunds (collectively, the "General Intangibles");
            and

                  (iv) All Receivables of the Company including all insurance
            proceeds, and rights to refunds or indemnification whatsoever owing,
            together with all instruments, all documents of title representing
            any of the foregoing, all rights in any merchandising, goods,
            equipment, motor vehicles and trucks which any of the same may
            represent, and all right, title, security and guaranties with
            respect to each Receivable, including any right of stoppage in
            transit; and

                  (v) All of the Company's documents, instruments and chattel
            paper, files, records, books of account, business papers, computer
            programs and the products and proceeds of all of the foregoing
            Collateral set forth in clauses (i)-(iv) above.

            (b) "Company" shall mean, collectively, Company and all of the
subsidiaries of Company, a list of which is contained in Schedule A, attached
hereto.

            (c) "Obligations" means all of the Company's obligations under this
Agreement and the Notes, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
or unliquidated, whether or not jointly owed with others, and whether or not
from time to time decreased or extinguished and later decreased, created or
incurred, and all or any portion of such obligations or liabilities that are
paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from the Secured Party as a preference, fraudulent
transfer or otherwise as such obligations may be amended, supplemented,
converted, extended or modified from time to time.

            (d) "UCC" means the Uniform Commercial Code, as currently in effect
in the State of New York.

      2. Grant of Security Interest. As an inducement for the Secured Party to
purchase the Notes and to secure the complete and timely payment, performance
and discharge in full, as the case may be, of all of the Obligations, the
Company hereby, unconditionally and irrevocably, pledges, grants and
hypothecates to the Secured Party, a continuing security interest in, a
continuing lien upon, an unqualified right to possession and disposition of and
a right of set-off against, in each case to the fullest extent permitted by law,
all of the Company's right, title and interest of whatsoever kind and nature in
and to the Collateral (the "Security Interest"). In the event that the security
interest referred to in Schedule C is released, the Company shall at all times
maintain the Security Interest as a valid and perfected first priority security
interest in the Collateral in accordance with the terms and conditions of this
Agreement.

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      3. Representations, Warranties, Covenants and Agreements of the Company.
The Company represents and warrants to, and covenants and agrees with, the
Secured Party as follows:

            (a) The Company has the requisite corporate power and authority to
enter into this Agreement and otherwise to carry out its obligations thereunder.
The execution, delivery and performance by the Company of this Agreement and the
filings contemplated therein have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company.
This Agreement constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditor's rights generally.

            (b) The Company represents and warrants that it has no place of
business or offices where its respective books of account and records are kept
(other than temporarily at the offices of its attorneys or accountants) or
places where Collateral is stored or located, except as set forth on Schedule A
attached hereto;

            (c) Except as set forth in Schedule C, the Company is the sole owner
of the Collateral (except for non-exclusive licenses granted by the Company in
the ordinary course of business), free and clear of any liens, security
interests, encumbrances, rights or claims, and is fully authorized to grant the
Security Interest in and to pledge the Collateral. Except as set forth on
Schedule C, there is not on file in any governmental or regulatory authority,
agency or recording office an effective financing statement, security agreement,
license or transfer or any notice of any of the foregoing (other than those that
have been filed in favor of the Secured Party pursuant to this Agreement)
covering or affecting any of the Collateral. So long as this Agreement shall be
in effect, the Company shall not execute and shall not knowingly permit to be on
file in any such office or agency any such financing statement or other document
or instrument (except to the extent filed or recorded in favor of the Secured
Party pursuant to the terms of this Agreement).

            (d) No part of the Collateral has been judged invalid or
unenforceable. No written claim has been received that any Collateral or the
Company's use of any Collateral violates the rights of any third party. There
has been no adverse decision to the Company's claim of ownership rights in or
exclusive rights to use the Collateral in any jurisdiction or to the Company's
right to keep and maintain such Collateral in full force and effect, and there
is no proceeding involving said rights pending or, to the best knowledge of the
Company, threatened before any court, judicial body, administrative or
regulatory agency, arbitrator or other governmental authority.

            (e) The Company shall at all times maintain its books of account and
records relating to the Collateral at its principal place of business and its
Collateral at the locations set forth on Schedule A attached hereto and may not
relocate such books of account and records or tangible Collateral unless it
delivers to the Secured Party at least thirty (30) days prior to such relocation
(i) written notice of such relocation and the new location thereof (which must
be within the United States) and (ii) evidence that appropriate financing
statements and other necessary documents have been filed and recorded and other
steps have been taken to perfect the Security Interest to create in favor of the
Secured Party valid, perfected and continuing liens in the Collateral.

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            (f) This Agreement creates in favor of the Secured Party a valid
security interest in the Collateral securing the payment and performance of the
Obligations and, upon making the filings described in the immediately following
sentence, a perfected security interest in such Collateral. Except for the
filing of financing statements on Form-1 under the UCC with the jurisdictions
indicated on Schedule B, attached hereto, no authorization or approval of or
filing with or notice to any governmental authority or regulatory body is
required either (i) for the grant by the Company of, or the effectiveness of,
the Security Interest granted hereby or for the execution, delivery and
performance of this Agreement by the Company or (ii) for the perfection of or
exercise by the Secured Party of its rights and remedies hereunder.

            (g) On the date of execution of this Agreement, the Company will
deliver to the Secured Party one or more executed UCC financing statements on
Form-1 with respect to the Security Interest for filing with the jurisdictions
indicated on Schedule B, attached hereto and in such other jurisdictions as may
be requested by the Secured Party.

            (h) The execution, delivery and performance of this Agreement does
not conflict with or cause a breach or default, or an event that with or without
the passage of time or notice, shall constitute a breach or default, under any
agreement to which the Company is a party or by which the Company is bound. No
consent (including, without limitation, from stock holders or creditors of the
Company) is required for the Company to enter into and perform its obligations
hereunder.

            (i) The Company shall at all times maintain the liens and Security
Interest provided for hereunder as valid and perfected liens and security
interests in the Collateral in favor of the Secured Party until this Agreement
and the Security Interest hereunder shall terminate pursuant to Section 11. The
Company hereby agrees to defend the same against any and all persons. The
Company shall safeguard and protect all Collateral for the account of the
Secured Party. At the request of the Secured Party, the Company will sign and
deliver to the Secured Party at any time or from time to time one or more
financing statements pursuant to the UCC (or any other applicable statute) in
form reasonably satisfactory to the Secured Party and will pay the cost of
filing the same in all public offices wherever filing is, or is deemed by the
Secured Party to be, necessary or desirable to effect the rights and obligations
provided for herein. Without limiting the generality of the foregoing, the
Company shall pay all fees, taxes and other amounts necessary to maintain the
Collateral and the Security Interest hereunder, and the Company shall obtain and
furnish to the Secured Party from time to time, upon demand, such releases
and/or subordinations of claims and liens which may be required to maintain the
priority of the Security Interest hereunder.

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<PAGE>

            (j) The Company will not transfer, pledge, hypothecate, encumber,
license (except for non-exclusive licenses granted by the Company in the
ordinary course of business), sell or otherwise dispose of any of the Collateral
without the prior written consent of the Secured Party.

            (k) The Company shall keep and preserve its Equipment, Inventory and
other tangible Collateral in good condition, repair and order and shall not
operate or locate any such Collateral (or cause to be operated or located) in
any area excluded from insurance coverage.

            (l) The Company shall, within ten (10) days of obtaining knowledge
thereof, advise the Secured Party promptly, in sufficient detail, of any
substantial change in the Collateral, and of the occurrence of any event which
would have a material adverse effect on the value of the Collateral or on the
Secured Party's security interest therein.

            (m) The Company shall promptly execute and deliver to the Secured
Party such further deeds, mortgages, assignments, security agreements, financing
statements or other instruments, documents, certificates and assurances and take
such further action as the Secured Party may from time to time request and may
in its sole discretion deem necessary to perfect, protect or enforce its
security interest in the Collateral including, without limitation, the execution
and delivery of a separate security agreement with respect to the Company's
intellectual property ("Intellectual Property Security Agreement") in which the
Secured Party has been granted a security interest hereunder, substantially in a
form acceptable to the Secured Party, which Intellectual Property Security
Agreement, other than as stated therein, shall be subject to all of the terms
and conditions hereof.

            (n) The Company shall permit the Secured Party and its
representatives and agents to inspect the Collateral at any time, and to make
copies of records pertaining to the Collateral as may be requested by the
Secured Party from time to time.

            (o) The Company will take all steps reasonably necessary to
diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

            (p) The Company shall promptly notify the Secured Party in
sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other
information received by the Company that may materially affect the value of the
Collateral, the Security Interest or the rights and remedies of the Secured
Party hereunder.

            (q) All information heretofore, herein or hereafter supplied to the
Secured Party by or on behalf of the Company with respect to the Collateral is
accurate and complete in all material respects as of the date furnished.

            (r) Schedule A attached hereto contains a list of all of the
subsidiaries of Company.

      4. Defaults. The following events shall be "Events of Default":

            (a) The occurrence of an Event of Default (as defined in the Notes)
under the Notes;

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            (b) Any representation or warranty of the Company in this Agreement
or in the Intellectual Property Security Agreement shall prove to have been
incorrect in any material respect when made;

            (c) The failure by the Company to observe or perform any of its
obligations hereunder or in the Intellectual Property Security Agreement for ten
(10) days after receipt by the Company of notice of such failure from the
Secured Party; and

            (d) Any breach of, or default under, the Warrants.

      5. Duty To Hold In Trust. Upon the occurrence of any Event of Default and
at any time thereafter, the Company shall, upon receipt by it of any revenue,
income or other sums subject to the Security Interest, whether payable pursuant
to the Notes or otherwise, or of any check, draft, note, trade acceptance or
other instrument evidencing an obligation to pay any such sum, hold the same in
trust for the Secured Party and shall forthwith endorse and transfer any such
sums or instruments, or both, to the Secured Party for application to the
satisfaction of the Obligations.

      6. Rights and Remedies Upon Default. Upon occurrence of any Event of
Default and at any time thereafter, the Secured Party shall have the right to
exercise all of the remedies conferred hereunder and under the Notes, and the
Secured Party shall have all the rights and remedies of a secured party under
the UCC and/or any other applicable law (including the Uniform Commercial Code
of any jurisdiction in which any Collateral is then located). Without
limitation, the Secured Party shall have the following rights and powers:

            (a) The Secured Party shall have the right to take possession of the
Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be
placed and remove the same, and the Company shall assemble the Collateral and
make it available to the Secured Party at places which the Secured Party shall
reasonably select, whether at the Company's premises or elsewhere, and make
available to the Secured Party, without rent, all of the Company's respective
premises and facilities for the purpose of the Secured Party taking possession
of, removing or putting the Collateral in saleable or disposable form.

            (b) The Secured Party shall have the right to operate the business
of the Company using the Collateral and shall have the right to assign, sell,
lease or otherwise dispose of and deliver all or any part of the Collateral, at
public or private sale or otherwise, either with or without special conditions
or stipulations, for cash or on credit or for future delivery, in such parcel or
parcels and at such time or times and at such place or places, and upon such
terms and conditions as the Secured Party may deem commercially reasonable, all
without (except as shall be required by applicable statute and cannot be waived)
advertisement or demand upon or notice to the Company or right of redemption of
the Company, which are hereby expressly waived. Upon each such sale, lease,
assignment or other transfer of Collateral, the Secured Party may, unless
prohibited by applicable law which cannot be waived, purchase all or any part of
the Collateral being sold, free from and discharged of all trusts, claims, right
of redemption and equities of the Company, which are hereby waived and released.

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      7. Applications of Proceeds. The proceeds of any such sale, lease or other
disposition of the Collateral hereunder shall be applied first, to the expenses
of retaking, holding, storing, processing and preparing for sale, selling, and
the like (including, without limitation, any taxes, fees and other costs
incurred in connection therewith) of the Collateral, to the reasonable
attorneys' fees and expenses incurred by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the Obligations, and to the payment of
any other amounts required by applicable law, after which the Secured Party
shall pay to the Company any surplus proceeds. If, upon the sale, license or
other disposition of the Collateral, the proceeds thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency, together with interest thereon, at the rate of 15%
per annum (the "Default Rate"), and the reasonable fees of any attorneys
employed by the Secured Party to collect such deficiency. To the extent
permitted by applicable law, the Company waives all claims, damages and demands
against the Secured Party arising out of the repossession, removal, retention or
sale of the Collateral, unless due to the gross negligence or willful misconduct
of the Secured Party.

      8. Costs and Expenses. The Company agrees to pay all out-of-pocket fees,
costs and expenses incurred in connection with any filing required hereunder,
including without limitation, any financing statements, continuation statements,
partial releases and/or termination statements related thereto or any expenses
of any searches reasonably required by the Secured Party. The Company shall also
pay all other claims and charges which in the reasonable opinion of the Secured
Party might prejudice, imperil or otherwise affect the Collateral or the
Security Interest therein. The Company will also, upon demand, pay to the
Secured Party the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which
the Secured Party may incur in connection with (i) the enforcement of this
Agreement, (ii) the custody or preservation of, or the sale of, collection from,
or other realization upon, any of the Collateral, or (iii) the exercise or
enforcement of any of the rights of the Secured Party under the Notes. Until so
paid, any fees payable hereunder shall be added to the principal amount of the
Notes and shall bear interest at the Default Rate.

      9. Responsibility for Collateral. The Company assumes all liabilities and
responsibility in connection with all Collateral, and the obligations of the
Company hereunder or under the Notes and the Warrants shall in no way be
affected or diminished by reason of the loss, destruction, damage or theft of
any of the Collateral or its unavailability for any reason.

      10. Security Interest Absolute. All rights of the Secured Party and all
Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Notes, the Warrants or any agreement entered into in connection with the
foregoing, or any portion hereof or thereof; (b) any change in the time, manner
or place of payment or performance of, or in any other term of, all or any of
the Obligations, or any other amendment or waiver of or any consent to any
departure from the Notes, the Warrants or any other agreement entered into in

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connection with the foregoing; (c) any exchange, release or nonperfection of any
of the Collateral, or any release or amendment or waiver of or consent to
departure from any other collateral for, or any guaranty, or any other security,
for all or any of the Obligations; (d) any action by the Secured Party to
obtain, adjust, settle and cancel in its sole discretion any insurance claims or
matters made or arising in connection with the Collateral; or (e) any other
circumstance which might otherwise constitute any legal or equitable defense
available to the Company, or a discharge of all or any part of the Security
Interest granted hereby. Until the Obligations shall have been paid and
performed in full, the rights of the Secured Party shall continue even if the
Obligations are barred for any reason, including, without limitation, the
running of the statute of limitations or bankruptcy. The Company expressly
waives presentment, protest, notice of protest, demand, notice of nonpayment and
demand for performance. In the event that at any time any transfer of any
Collateral or any payment received by the Secured Party hereunder shall be
deemed by final order of a court of competent jurisdiction to have been a
voidable preference or fraudulent conveyance under the bankruptcy or insolvency
laws of the United States, or shall be deemed to be otherwise due to any party
other than the Secured Party, then, in any such event, the Company's obligations
hereunder shall survive cancellation of this Agreement, and shall not be
discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in
accordance with the terms and provisions hereof. The Company waives all right to
require the Secured Party to proceed against any other person or to apply any
Collateral which the Secured Party may hold at any time, or to marshal assets,
or to pursue any other remedy. The Company waives any defense arising by reason
of the application of the statute of limitations to any obligation secured
hereby.

      11. Term of Agreement. This Agreement and the Security Interest shall
terminate on the date on which all payments under the Notes have been made in
full and all other Obligations have been paid or discharged. Upon such
termination, the Secured Party, at the request and at the expense of the
Company, will join in executing any termination statement with respect to any
financing statement executed and filed pursuant to this Agreement.

      12. Power of Attorney; Further Assurances.

            (a) The Company authorizes the Secured Party, and does hereby make,
constitute and appoint it, and its respective officers, agents, successors or
assigns with full power of substitution, as the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including payments payable under or in respect of any policy of insurance) in
respect of the Collateral that may come into possession of the Secured Party;
(ii) to sign and endorse any UCC financing statement or any invoice, freight or
express bill, bill of lading, storage or warehouse receipts, drafts against
debtors, assignments, verifications and notices in connection with accounts, and
other documents relating to the Collateral; (iii) to pay or discharge taxes,
liens, security interests or other encumbrances at any time levied or placed on
or threatened against the Collateral; (iv) to demand, collect, receipt for,
compromise, settle and sue for monies due in respect of the Collateral; and (v)
generally, to do, at the option of the Secured Party, and at the Company's
expense, at any time, or from time to time, all acts and things which the
Secured Party deems necessary to protect, preserve and realize upon the
Collateral and the Security Interest granted therein in order to effect the
intent of this Agreement, the Notes and the Warrants, all as fully and
effectually as the Company might or could do; and the Company hereby ratifies
all that said attorney shall lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest and shall be irrevocable for
the term of this Agreement and thereafter as long as any of the Obligations
shall be outstanding.

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            (b) On a continuing basis, the Company will make, execute,
acknowledge, deliver, file and record, as the case may be, in the proper filing
and recording places in any jurisdiction, including, without limitation, the
jurisdictions indicated on Schedule B, attached hereto, all such instruments,
and take all such action as may reasonably be deemed necessary or advisable, or
as reasonably requested by the Secured Party, to perfect the Security Interest
granted hereunder and otherwise to carry out the intent and purposes of this
Agreement, or for assuring and confirming to the Secured Party the grant or
perfection of a security interest in all the Collateral.

            (c) The Company hereby irrevocably appoints the Secured Party as the
Company's attorney-in-fact, with full authority in the place and stead of the
Company and in the name of the Company, from time to time in the Secured Party's
discretion, to take any action and to execute any instrument which the Secured
Party may deem necessary or advisable to accomplish the purposes of this
Agreement, including the filing, in its sole discretion, of one or more
financing or continuation statements and amendments thereto, relative to any of
the Collateral without the signature of the Company where permitted by law.

      13. Notices. All notices, requests, demands and other communications
hereunder shall be in writing, with copies to all the other parties hereto, and
shall be deemed to have been duly given when (i) if delivered by hand, upon
receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof,
(iii) if sent by nationally recognized overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

If to the Company:       Globalnet Corporation
                         1919 S Highland Avenue, Suite 125D
                         Lombard, IL 60148
                         Telephone: (630) 652-1300
                         Facsimile: (303) 942-5574
                         Attention: President and Chief Executive Officer

With a copy to:          Sichenzia Ross Friedman Ference LLP
                         1065 Avenue of the Americas
                         New York, NY 10018
                         Attention: Gregory Sichenzia, Esq.
                         Telephone: (212) 930-9700
                         Facsimile: (212) 930-9725

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If to the Secured Party: AJW Partners, LLC
                         AJW Offshore, Ltd.
                         AJW Qualified Partners, LLC
                         New Millennium Capital Partners II, LLC
                         1044 Northern Boulevard
                         Suite 302
                         Roslyn, New York 11576
                         Attention: Corey Ribotsky
                         Telephone: 516-739-7110
                         Facsimile: 516-739-7115

With a copy to:          Ballard Spahr Andrews & Ingersoll, LLP
                         1735 Market Street, 51st Floor
                         Philadelphia, Pennsylvania 19103
                         Attention: Gerald J. Guarcini, Esq.
                         Telephone: 215-864-8625
                         Facsimile: 215-864-8999

      14. Other Security. To the extent that the Obligations are now or
hereafter secured by property other than the Collateral or by the guarantee,
endorsement or property of any other person, firm, corporation or other entity,
then the Secured Party shall have the right, in its sole discretion, to pursue,
relinquish, subordinate, modify or take any other action with respect thereto,
without in any way modifying or affecting any of the Secured Party's rights and
remedies hereunder.

      15. Miscellaneous.

            (a) No course of dealing between the Company and the Secured Party,
nor any failure to exercise, nor any delay in exercising, on the part of the
Secured Party, any right, power or privilege hereunder or under the Notes shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, power or privilege hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

            (b) All of the rights and remedies of the Secured Party with respect
to the Collateral, whether established hereby or by the Notes or by any other
agreements, instruments or documents or by law shall be cumulative and may be
exercised singly or concurrently.

            (c) This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof and is intended to supersede all prior
negotiations, understandings and agreements with respect thereto. Except as
specifically set forth in this Agreement, no provision of this Agreement may be
modified or amended except by a written agreement specifically referring to this
Agreement and signed by the parties hereto.

            (d) In the event that any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction, be construed as if such invalid, prohibited or unenforceable
provision had been more narrowly drawn so as not to be invalid, prohibited or

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unenforceable. If, notwithstanding the foregoing, any provision of this
Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other jurisdiction.

            (e) No waiver of any breach or default or any right under this
Agreement shall be considered valid unless in writing and signed by the party
giving such waiver, and no such waiver shall be deemed a waiver of any
subsequent breach or default or right, whether of the same or similar nature or
otherwise.

            (f) This Agreement shall be binding upon and inure to the benefit of
each party hereto and its successors and assigns.

            (g) Each party shall take such further action and execute and
deliver such further documents as may be necessary or appropriate in order to
carry out the provisions and purposes of this Agreement.

            (h) This Agreement shall be construed in accordance with the laws of
the State of New York, except to the extent the validity, perfection or
enforcement of a security interest hereunder in respect of any particular
Collateral which are governed by a jurisdiction other than the State of New York
in which case such law shall govern. Each of the parties hereto irrevocably
submit to the exclusive jurisdiction of any New York State or United States
Federal court sitting in Manhattan county over any action or proceeding arising
out of or relating to this Agreement, and the parties hereto hereby irrevocably
agree that all claims in respect of such action or proceeding may be heard and
determined in such New York State or Federal court. The parties hereto agree
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. The parties hereto further waive any objection to venue
in the State of New York and any objection to an action or proceeding in the
State of New York on the basis of forum non conveniens.

            (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRAIL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF
ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER
OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY
HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY
ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL
FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING THAT,
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF A
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

                                       11
<PAGE>

            (j) This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and, all of
which taken together shall constitute one and the same Agreement. In the event
that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement
to be duly executed on the day and year first above written.

                                        GLOBALNET CORPORATION

                                        By: ____________________________________
                                            Mark T. Wood
                                            President and Chief Executive Office

                                        AJW PARTNERS, LLC
                                        By: SMS Group, LLC

                                        By: ____________________________________
                                            Corey S. Ribotsky
                                            Manager

                                        AJW OFFSHORE, LTD.
                                        By: First Street Manager II, LLC

                                        By: ____________________________________
                                            Corey S. Ribotsky
                                            Manager

                                        AJW QUALIFIED PARTNERS, LLC
                                        By: AJW Manager, LLC

                                        By: ____________________________________
                                            Corey S. Ribotsky
                                            Manager

                                        NEW MILLENNIUM CAPITAL PARTNERS II, LLC.
                                        By: First Street Manager II, LLC

                                        By: ____________________________________
                                            Corey S. Ribotsky
                                            Manager

<PAGE>

                                   SCHEDULE A

Principal Place of Business of the Company:

Locations Where Collateral is Located or Stored:

List of Subsidiaries of the Company:

                                       A-1
<PAGE>

                                   SCHEDULE B

Jurisdictions:

                                       B-1Settlement Agreement

      SETTLEMENT AGREEMENT (this "Agreement") made as of June 23, 2005 by and
among: (a) Qwest Communications Corporation ("QCC"); (b) GlobalNet
International, LLC (the "Debtor") and (c) GlobalNet Corporation ("GlobalNet
Corp.", collectively with the Debtor, "GlobalNet"). QCC and GlobalNet are
hereinafter referred to as the "Parties" and each as a "Party".

                                   WITNESSETH:

      WHEREAS, on June 30, 2004 (the "Petition Date"), the Debtor filed a
voluntary petition for relief under chapter 11 of title 11 of the United States
Code (the "Bankruptcy Code");

      WHEREAS, since the Petition Date, the Debtor has continued to manage its
property and operate its business as a debtor-in-possession under sections 1107
and 1108 of the Bankruptcy Code; and

      WHEREAS, the Debtor and QCC were parties to certain wholesale services
agreements (the "QCC WSAs") pursuant to which QCC provided certain
telecommunications services to the Debtor (the "QCC Services"); and

      WHEREAS, both prior and subsequent to the Petition Date, the Debtor
breached the QCC WSAs by failing to make payments due QCC thereunder; and

      WHEREAS, in December 1998, QCC entered into a Carrier Service Agreement
(the "Carrier Service Agreement 1") with Loxley Business Information, Inc.
("Loxley"). In 1999, Loxley assigned its interest in the Carrier Service
Agreement 1 to Woodcomm International, Inc.("Woodcomm"). By August 2000 Woodcomm
owed QCC $436,920.00. To pay Woodcomm's debt and so that QCC would continue to
provide service, iDial Networks, Inc., as successor in interest to Loxley
Business Information, Inc. and Woodcomm International, Inc. signed a promissory
not (the "Note") backed by a confessed judgment (the "Confessed Judgment').
iDial did not make its payments pursuant to the Note nor did it pay for the
additional services QCC provided to iDial. On or about August 31, 2001,QCC filed
the Confessed Judgment in Virginia in the amount of $364,100.00 plus 8% interest
and costs (the "Virginia Judgment"). The Virginia Judgment was domesticated in
Texas; and

      WHEREAS, QCC filed for AAA arbitration in Denver and also sued iDial in
state court in Arapahoe County. iDial moved the court to compel arbitration. The
arbitration is pending under Case No. 77 181 00172 03 VSS; Qwest Communications
Corporation and Woodcomm International Inc. and iDial Networks, Inc. In it, QCC
made claims for breach of contract, book account or account stated, and quantum
meruit. QCC seeks damages in the amount of $501,921.98. The state court case is
styled Qwest Corporation, Inc. v. iDial Networks, Inc.; Case No. 03CV4300, Div
301, in the District Court for Arapahoe County, Colorado (the "Colorado
Action"). QCC makes claims for breach of contract, account stated, quantum
meruit, and pursuant to tariffs. The damages sought are $503,921.98 (the "QCC
Litigation Debt").

<PAGE>

      WHEREAS, on January 28, 2005, the Debtor and QCC entered into a letter
agreement (the "Letter Agreement") regarding the terms and conditions of
discontinuance of the QCC Services; and

      WHEREAS, the Debtor subsequently breached the Letter Agreement by, inter
alia, failing to fully pay QCC for the QCC Services provided to the Debtor under
the terms of the Letter Agreement; and

      WHEREAS, QCC moved for an order enforcing the Letter Agreement or, in the
alternative, for an order converting this case to one under Chapter 7 of the
Bankruptcy Code (the "QCC Motion"); and

      WHEREAS, there was due and owing $850,000 from the Debtor to QCC for the
QCC Services provided to the Debtor by QCC subsequent to the Petition Date (the
"QCC Amount Due"); and

      WHEREAS, the Debtor, GlobalNet Corp. and QCC sought to resolve the QCC
Motion through an agreement reached on or about June 2, 2005 (the "June 2
Agreement") which provided for the payment of $800,000 to QCC by the Debtor
secured by equipment owned by GlobalNet Corp.; and

      WHEREAS, the Debtor breached the June 2 Agreement and the QCC Motion was
rescheduled for June 23, 2005; and

      WHEREAS, in order to avoid the time, delay, expense and uncertainties of
litigation, QCC and GlobalNet desire to settle their outstanding disputes; and

      WHEREAS, the Parties have agreed to settle their disputes by, inter alia,
the payment of $575,000 to QCC; and

      WHEREAS, GlobalNet represents and warrants that it has wired $575,000 to
an account maintained by Todtman, Nachamie, Spizz & Johns, P.C. (the "Todtman
Account") which amount will be released and sent to QCC as set forth herein; and

                                   AGREEMENT:

      Now, therefore, in consideration of the mutual covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

1. Acknowledgement of Debt. Upon the execution of this Agreement, GlobalNet
shall conclusively be deemed to have acknowledged and agreed that the Debtor
owes QCC $850,000 without any setoffs, defenses, counterclaims, or any other
reductions and such amount is immediately due and payable.

                                       2
<PAGE>

2. Payment of QCC Debt. No later than June 27, 2005, the Debtor shall cause
$500,000 (the "QCC Settlement Payment") to be wired to QCC from the Todtman
Account using the following instructions:

Account Name:    Qwest Services Corporation
Account #:       0069180
Bank Name:       Mellon Bank Pittsburgh, 500 Ross Street, Pittsburgh,
                 PA 15262-0001
Bank Rtg./ABA #: 043000261
Swift#:          MELNUS3P

3. Payment of QCC Litigation Debt. No later than June 27, 2005, the Debtor shall
cause $75,000 to be wired to QCC from the Todtman Account using the following
instructions:

First Tennessee Bank
165 Madison Ave
Memphis, TN 38103

Tax ID: 841339283
DUNS: 142876221
ABA: 084000026
Qwest account number # 170660701
Qwest Communications
P.O. Box 856169
Louisville, KY 40285

4. Release by GlobalNet of QCC and QCC Affiliates. Except to the extent provided
herein, GlobalNet and each of their affiliates fully, forever, irrevocably and
unconditionally, on and as of the date hereof, release and discharge QCC and
each QCC affiliate (and, solely in their capacity as such, their respective
officers, directors, employees, agents and other representatives) of and from
any and all actions, causes of actions, charges, suits, rights, liabilities,
other obligations, disputes, controversies, complaints, claims (as such term is
defined in section 101 of the Bankruptcy Code) or demands, other acts and/or
other omissions of any kind or nature, including any that are known or unknown,
billed or unbilled, matured or unmatured, accrued or nonaccrued, discoverable or
not discoverable and/or fixed or contingent, in law or in equity or otherwise
occurring at any time or times on or prior to the date hereof it ever had,
including any it may have had, now has or hereafter can, shall or may have.

5. Release by QCC of GlobalNet and Dismissal of Colorado Action. Except to the
extent provided herein, QCC does fully, forever, irrevocably and
unconditionally, on and as of the date hereof, release and discharge GlobalNet
(and, solely in their capacity as such, their respective officers, directors,
employees, agents or other representatives) of and from any and all actions,
causes of actions, charges, suits, rights, liabilities, other obligations,

                                       3
<PAGE>

disputes, controversies, complaints, claims (as such term is defined in section
101 of the Bankruptcy Code) or demands, other acts and/or other omissions of any
kind or nature, including any that are known or unknown, billed or unbilled,
matured or unmatured, accrued or nonaccrued, discoverable or not discoverable
and/or fixed or contingent, in law or in equity or otherwise occurring at any
time or times on or prior to the date hereof it ever had, including any it may
have had, now has or hereafter can, shall or may have. QCC does not release any
covenants, liabilities or other obligations of GlobalNet provided in this
Agreement. This release includes a release of all claims asserted in the
Colorado Action. In addition, QCC shall take all steps necessary to effectuate a
satisfaction of the Virginia Judgment and the Texas Judgment and shall execute
any documents reasonably necessary to dismiss, with prejudice, the Colorado
Action.

6. Revocation of Release and Springing Claims. To the extent that GlobalNet or
their respective officers, directors, employees, agents or other representatives
start, continue, revive, restart or otherwise conduct business, in any capacity,
including as an owner, whereby such entity purchases services from QCC (a
"Business Continuity Event"), the release provisions of paragraph 5 (Release by
QCC of GlobalNet) shall be deemed null and void. Upon the occurrence of a
Business Continuity Event, the entity which purchases services from QCC shall
conclusively be determined to owe QCC $350,000 (representing the shortfall of
the QCC Settlement Payment from QCC Amount Due) and such amount shall be
immediately due and payable by such entity; and (ii) the QCC Litigation Debt
against GlobalNet shall be revived and spring back by operation of this
Agreement, but GlobalNet shall preserve any defenses to such claims. This
provision may be waived or modified only by express written agreement of the
parties which specifically waives or modifies this provision.

7. QCC Dismissal Support. To the extent that the Todtman Account has been
funded, QCC shall support the Debtor's request to have the bankruptcy case
dismissed. Any order dismissing the case shall not be final or effective unless
and until QCC receives the payments provided hereunder.

8. Representations and Warranties of the Parties. Except in each case as may be
a violation of applicable regulatory rule or law, GlobalNet represents and
warrants to QCC and QCC represents and warrants to GlobalNet, as follows:

            1) It is an entity duly organized, validly existing and in good
standing under the laws in which it was organized. It has the power and
authority to execute, deliver and perform this Agreement. The execution,
delivery and performance of this Agreement, including the consummation by such
party of the transactions contemplated hereby, has been duly authorized by all
necessary action on its part. It has duly and validly executed this Agreement.
This Agreement is its valid and binding obligation enforceable against it in
accordance with its terms.

            2) The execution, delivery and performance of this Agreement by it,
including the consummation by it of the transactions contemplated hereby and
thereby, does not and will not (i) require the consent, license, permit, waiver,
approval, authorization or other action of, by or with respect to, or
registration, declaration or filing with, or notice to, any federal, state,
local or foreign governmental or regulatory authority, including any court, (ii)

                                       4
<PAGE>

violate or conflict with the provisions of its articles of incorporation, by
laws, or other constituent documents or (iii) constitute a default (with or
without notice or lapse of time, or both) under, violate or conflict with, or
give rise to a right of termination, cancellation or acceleration or loss of a
material benefit under any law, or under any contract, permit or order to which
it is party or by which it or any of its assets is subject or bound.

            3) No representation or warranty by it in this Agreement contains
any untrue statement of a material fact or omits to state a material fact
necessary to make the statements contained herein not misleading.

            GlobalNet represents and warrants to QCC that GlobalNet has the
power and authority to bind itself to the terms and conditions of this
Agreement. QCC represents and warrants to GlobalNet that it has the power and
authority to bind itself to the terms and conditions of this Agreement.

9. Other Provisions.

      a. Entire Agreement; Amendments. This Agreement contains the entire
understanding of the Parties with respect to the subject matter hereof and
supersede any prior and/or conflicting understandings or agreements. No
amendment or modification of this Agreement shall be valid or binding upon the
Parties unless made in writing and executed by the Parties.

      b. No Admission. This Agreement is the result of a compromise and shall
not be construed as an admission by any Party of any liability, wrongdoing, or
responsibility on their part or on the part of their Affiliates or their
respective attorneys, officers, directors, or employees. The Parties expressly
deny any such liability, wrongdoing, or responsibility. The Parties confirm, for
the purposes of completeness, that the foregoing provisions of this Section are
not intended to affect any liabilities, other obligations or rights of any kind
or nature provided for in this Agreement.

      c. Third Party Beneficiaries. QCC's Affiliates are third party
beneficiaries of this Agreement, including that they are entitled to enforce its
provisions.

      d. Costs and Expenses. The Parties will each bear their respective costs
and expenses in connection with the transactions contemplated hereby.

      e. Further Assurances. Without limiting the generality of any provisions
of this Agreement, each Party agrees that upon request of any other Party, it
shall, from time to time, do any and all other acts and things as may reasonably
be required to carry out its obligations hereunder, to consummate the
transactions contemplated hereby, and to effectuate the purposes hereof.

      f. Rights and Remedies. All rights and remedies of any Party under any
provision of this Agreement for any breach of this Agreement shall be in
addition to any other rights and remedies provided for by any law of any kind
(including specific performance). All rights and remedies contemplated in the
preceding sentence shall be independent and cumulative, and may, to the extent
permitted by law, be exercised concurrently or separately, and the exercise of

                                       5
<PAGE>

any one right or remedy shall not be deemed to be an election of such right or
remedy or preclude or waive the exercise of any other right or remedy. Each
Party shall also have the right to enforce its rights and the obligations of any
breaching Party by an action or actions for specific performance, injunctive
relief and/or other equitable relief in order to enforce compliance with, or
prevent any actual or threatened breaches of, this Agreement. The exercise of
any such rights shall not require the posting of any bond or other consideration
or the proof of any actual damages.

      g. Terminology. Titles of Articles and Sections are for convenience only,
and shall not modify rights and obligations created by this Agreement. All
references herein to Articles and Sections shall refer to the corresponding
Articles and Sections of this Agreement unless specific reference is made to
Articles and Sections of another document. Use of the words "hereby", "herein",
"hereto", "hereof", "hereunder" and similar words shall be deemed to refer to
this Agreement in its entirety and not merely to the Section wherein any such
word may appear. With respect to all defined terms and all pronouns, the
singular shall include the plural, and vice versa. The term "or" is used in the
inclusive sense of "and/or" notwithstanding that the phrase "and/or" is
specifically stated only in some cases. For all purposes of this Agreement, the
term covenants includes the indemnification obligations contained in this
Agreement.

      h. Severability. If any provision of this Agreement or the application
thereof to any Person(s) or circumstance(s) shall not be enforceable in whole,
(i) the remainder of this Agreement and the application of such provision to
other Person(s) or circumstance(s) shall not be affected thereby and (ii) each
such provision shall be enforced to the greatest extent permitted by law.

      i. Survival of Agreements. All of the representations, warranties,
covenants and agreements, including indemnities, of each of the Parties
contained in this Agreement shall survive without limit as to time, including
survival of the execution, delivery and performance of this Agreement.

      j. Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York exclusive of
conflicts of laws provisions.

      k. Counterparts. This Agreement may be executed in two or more
counterparts and by fax, each of which shall constitute an original, but all of
which when taken together shall constitute but one Agreement. It shall not be
necessary that any one counterpart be signed by the Parties so long as each
Party shall have executed a counterpart.

      l. Joint Efforts. This Agreement shall be deemed to constitute the joint
efforts of the Parties, including that no provision in this Agreement shall be
construed more severely against any Party that drafted such provision.

                                       6
<PAGE>

      m. Successors and Assigns. This Agreement shall inure to the benefit of,
be binding upon and be enforceable by and against the Parties and their
respective successors and assigns provided that any such assignment shall
require the prior written consent of the other Parties and any purported
assignment without such consent shall be void (provided further that, to avoid
doubt, the Parties confirm and agree that the releases provided herein shall not
extend to any permitted assignee or any other Person with whom a Party may merge
or otherwise enter into a transaction having any similar effect).

      n. Consultation with Counsel. The Parties acknowledge that they have
consulted with legal counsel of their choosing before entering into this
Agreement, they have read this Agreement, they know and understand its contents,
and they execute this Agreement freely and voluntarily. In executing and
delivering this Agreement, each Party acknowledges that it has not relied on any
oral or written promise or representation that is not in this Agreement.

      o. No Waiver. No consent or waiver, express or implied, by a Party to or
of any breach by any other Party in the performance by it of any of its
obligations hereunder shall be deemed or construed to be a consent or waiver to
or of the breach in the performance by such Party of the same obligation or any
other obligation of such Party hereunder. Failure on the part of any Party to
complain of any act or failure to act of any other Party or to declare any other
Party in default, irrespective of how long such failure continues, shall not
constitute a waiver by a Party of its rights hereunder. All consents and waivers
shall be in writing and shall be strictly construed.

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                                       7
<PAGE>

Qwest Communications Corporation                   GlobalNet International, LLC

By: /s/                                            By: /s/ Thomas Seifert
    -----------------------                            -----------------------
Name:                                              Name: Thomas Seifert
Title: VP                                          Title: CFO

GlobalNet Corporation                              WE HEREBY CONSENT AND AGREE
                                                   TO PARAGRAPH 6 HEREOF:

By: /s/ Thomas Seifert                             MARK WOOD
    ----------------------
Name: Thomas Seifert                               BY:
Title: CFO                                             -----------------------

                                                   Thomas Seifert

                                                   By: /s/ Thomas Seifert
                                                       -----------------------

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