Document:

EXHIBIT 10.1

                                 LOAN AGREEMENT

         THIS LOAN AGREEMENT (the "Agreement") is entered into as of November
26, 2002, among Phone1, Inc. (the "Borrower"), a Florida corporation,
Phone1Globalwide, Inc. ("Global") a Delaware corporation, Globaltron
Communications Corporation ("GCC" and together with Global, "Guarantors") a
Delaware corporation and GNB Bank Panama S.A. (the "Lender"), a bank organized
under the laws of the Republic of Panama.

                                 R E C I T A L S

         WHEREAS, subject to and upon the terms and conditions herein set forth,
the Lender is willing to make available to the Borrower certain loaned money as
provided for herein;

         WHEREAS, as an inducement to the Lender, (i) the Guarantors wish to
guaranty Borrower's obligations hereunder, including but not limited to the
repayment of the Loan and its interest and (ii) Borrower and Guarantors wish to
give Lender a security interest in all of their assets pursuant to the terms of
the Security Agreement (the "Security Agreement") attached hereto as Exhibit A.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.1 Definitions.
             ------------

         (a) As used in this Agreement, the following defined terms shall have
the meanings indicated below:

         "Agreement" means this Loan Agreement, the Exhibits and any other
documents or instruments delivered in accordance herewith, as the same may be
amended from time to time in accordance with the terms hereof.

         "Borrower" has the meaning ascribed to it in the forepart of this
Agreement.

         "Business Day" means any day other than a Saturday, Sunday or any day
on which State and Federal banking institutions in the State of New York are
authorized or obligated by law or executive order to close.

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         "Event of Default" has the meaning ascribed to it in Article III.

         "Exchange Act" shall mean the Securities Exchange Act of 1934 or any
successor statute thereof.

         "Global SEC Reports" shall have the meaning set forth in Section 4.5.

         "Guarantors" has the meaning ascribed to it in the forepart of this
Agreement.

         "Guaranteed Obligations" shall have the meaning set forth in Section
7.1.

         "Indebtedness" shall mean as to any Person (i) all indebtedness
(including principal, interest, fees and charges) of such Person (x) evidenced
by any notes, bonds, debentures or similar instruments made or issued by such
Person, (y) for borrowed money or (z) for the deferred purchase price of
property or services, (ii) the face amount of all letters of credit issued for
the account of such Person, (iii) all liabilities secured by any lien on any
property owned by such Person, whether or not such liabilities have been assumed
by such Person (provided, however, if such liability is non-recourse to such
Person, the amount of the Indebtedness attributed thereto shall not exceed the
greater of the fair market value of such property or the book value of such
property), (iv) the aggregate amount required to be capitalized in accordance
with GAAP under leases under which such Person is the lessee and (v) all
guarantees or other contingent obligations of such Person as to any of the
foregoing.

         "Interest Rate" shall mean the Prime rate which Citibank N.A. announces
from time to time as its Prime rate, the Interest Rate to change when and as
such Interest rate changes. The Interest Rate is a reference rate and does not
necessarily represent the lowest or best rate actually charged to any customer.

         "Lender" has the meaning attributed to it in the forepart of this
Agreement.

         "Lien" shall mean any mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), preference,
priority or other security agreement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement, any financing or similar statement or notice filed under any
recording or notice statute, and any lease having substantially the same effect
as any of the foregoing).

         "Loan" means the aggregate amount of US$5,000,000 loaned by Lender to
Borrower.

         "Material Adverse Effect" shall mean (a) any material adverse effect on
the condition (financial or otherwise), business, operations, assets, revenues,
properties or prospects of the Borrower or the Guarantors, or (b) any material
adverse effect on the ability of the Borrower or the Guarantors to perform any
of their obligations under this

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Agreement or under the Note dated as of this date executed among the Borrower,
the Lender and the Guarantors.

         "Note" means the convertible Promissory Note due on the Repayment Date
of the Borrower issued pursuant to Section 2.2, in the form attached as Exhibit
1 hereto and made a part hereto.

         "Notice of Conversion" shall mean the notice by which the Lender
notifies the Borrower about its intention to exercise its conversion rights.

         "Per Share Price" shall mean $.40; provided that if Global, prior to
the Repayment Date issues (i) equity at a price per share below $.40 or (ii) any
type of debt or equity security convertible into equity of Global at a price per
share below $.40, then the Per Share Price shall be such number below $.40;
provided, further, that the Per Share Price shall also be subject to appropriate
adjustment for stock splits, combinations, recapitalizations, reorganizations
and similar events.

         "Person" or "Persons" shall mean any natural person, corporation,
limited liability company, general partnership, limited partnership, limited
liability partnership, proprietorship, joint venture, other business
organization, trust, union, association or governmental or regulatory authority.

         "Repayment Date" shall have the meaning set forth in Section 2.8.

         "SEC" shall have the meaning set forth in Section 4.5.

         "Securities Act" shall mean the Securities Act of 1933, as amended, or
any successor statute thereof.

         (b) Unless the context of this Agreement otherwise requires, (i) words
of any gender include each other gender; (ii) words using the singular or plural
number also include the plural or singular number, respectively; (iii) the terms
"hereof," "herein," "hereby" and derivative or similar words refer to this
entire Agreement; (iv) the terms "Article" or "Section" refer to the specified
Article or Section of this Agreement; and (v) the phrases "ordinary course of
business" and "ordinary course of business consistent with past practice" refer
to the business and practice of the Borrower.

                                   ARTICLE II
                                    THE LOAN

         2.1 The Loan.
             ---------

         Lender does hereby grant Borrower the Loan.

         2.2 Note.
             -----

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         The Borrower's obligations to pay the principal of, and interest on,
the Loan made by the Lender are evidenced by the Note to be duly executed and
delivered by the Borrower, substantially in the form of Exhibit 1, and delivered
to the Lender.

         2.3 Method, Place and date of Payment.
             ----------------------------------

         Except as otherwise specifically provided herein, all payments under
this Agreement or the Note shall be made to the Lender not later than 12:00 Noon
(New York time) on the Repayment Date or on the date when due, in accordance
with the terms of this Agreement and shall be made in lawful money of the United
States of America in New York Clearing House funds, at the principal offices of
Lender at Calle 50 y Aquilino de la Guardia, Torre Banco Continental, Piso 30,
Panama City, Republic of Panama or such other place as may be designated by the
Lender in a written notice given to the Borrower. Whenever any payment to be
made hereunder or under the Note shall be stated to be due on a day, which is
not a Business Day, the due date thereof shall be extended to the next
succeeding Business Day.

         2.4 Prepayment.
             -----------

         The Note may not be prepaid without the express written consent of the
Lender.

         2.5 Interest.
             ---------

         (a) The Borrower shall pay interest in respect of the unpaid principal
amount of the Loan from the date hereof until the Repayment Date (whether by
acceleration or otherwise) at a rate per annum which shall be equal to the
Interest Rate in effect from time to time plus 2%.

         (b) If principal or interest on the Loan is not paid when due,
thereafter the Borrower shall pay interest in respect of the unpaid principal
amount of the Loan at a rate per annum equal to 5% in excess of the Interest
Rate but not in excess of usury laws.

         (c) Accrued (and theretofore unpaid) interest in respect of the Loan
shall be payable (i) monthly in arrears commencing on December 31, 2002; or (ii)
in the occurrence of an Event of Default, on demand.

         2.6 Net Payments.
             -------------

         All payments made by the Borrower hereunder or under the Note will be
made without setoff, counterclaim or other defense. All such payments will be
made free and clear of, and without deduction or withholding for, any present or
future taxes, levies, imposts, duties, fees, assessments or other charges of
whatever nature now or hereafter imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein.

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<PAGE>

         2.7 Compensation.
             -------------

         The Borrower shall compensate the Lender for all reasonable losses,
expenses and liabilities (including, without limitation, any loss, expense or
liability incurred by reason of the liquidation or re-employment of deposits or
other funds required by the Lender to fund the Loan) which the Lender may
sustain as a consequence of any default of the Borrower of its obligation under
this Agreement or the Note, including but not limited to the repayment of the
Loan.

         2.8 Repayment.
             ----------

         The Loan and the interest shall be pay in full on the Repayment Date
which shall occur on the earliest of (i) October 31, 2003; (ii) the occurrence
of an Event of Default or (iii) March 31,2003, if on or prior to such date,
neither Borrower nor Guarantors have received a loan from any person other than
Lender, for a period of 12 months in the principal amount of at least
US$5,000,000.

         2.9 Conversion.
             -----------

         (a) By notice in writing to the Borrower and Global, the Lender may
elect (either prior to the Repayment Date or after the Repayment Date, if the
Loan and the Note have not been fully paid) to convert the Loan and the Note in
whole or in part, as elected by the Lender into (i) such number of shares of
common stock of Global or (ii) such number of securities of Global into which
any other lender with conversion rights elects to convert its debt, equal to the
principal and interest accrued thereon under the Note that the Lender elects to
convert divided by the Per Share Price.

         (b) In the event that the Lender exercises its conversion right with
respect to only a portion of the outstanding principal amount and/or accrued
interest under the Loan and the Note, that portion of the principal amount not
so converted shall continue to accrue interest and shall be repayable by the
Borrower in accordance with the terms hereof and the Borrower shall issue a new
promissory note to the Lender in substantially the form of the surrendered Note,
in an aggregate principal amount equal to the remaining unpaid principal balance
of the surrendered Note.

         2.10 Registration Rights.
              --------------------

         In the event that Lender elects to convert the Loan and the Note into
shares of Global, Global will file a shelf registration statement covering the
sale of the securities issued upon conversion (or the underlying common stock
issued upon conversion of such preferred stock) and will use its best efforts to
cause such registration statement promptly to be declared effective by the SEC
(and in any event within 45 days) thereafter and to remain continuously
effective until all shares held by Lender have been sold.

         2.11 Expenses.
              ---------

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<PAGE>

         Borrower will reimburse Lender for its reasonable legal costs relating
to this Agreement and any documentation to be prepared in connection with this
Agreement up to a maximum of US$50,000.

                                   ARTICLE III
                                EVENTS OF DEFAULT

         It shall be an Event of Default if any of the conditions or events
described in Sections 3.1 through 3.8 ("Events of Default") shall occur and be
continuing:

         3.1 Failure To Make Payments When Due.
             ----------------------------------

         The Borrower shall (i) default in the payment when due of the principal
amount or the interest on the Loan or the Note or (ii) default, and such default
shall continue unremedied for two or more Business Days, in the payment when due
of any interest on the Loan or the Note or any other amounts owed by Borrower
hereunder or under the Note;

         3.2 Breach of Agreements.
             ---------------------

         Failure of the Borrower to perform or comply with any of its
obligations contained in this Agreement or in the Security Agreement;

         3.3 Representations, etc.
             ---------------------

         Any representation, warranty, covenant or statement made by or on
behalf of the Borrower and Guarantors in this Agreement, in the Note, in the
Security Agreement or in any certificate delivered pursuant hereto or thereto
shall prove to be untrue in any material respect on the date as of which made or
deemed made;

         3.4 Involuntary Bankruptcy. Appointment of Receiver, Etc.
             -----------------------------------------------------

         (i) A court shall enter a decree or order for relief in respect of the
Borrower or any of the Guarantors in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, which
decree or order is not stayed; or any other similar relief shall be granted and
remain unstayed under any applicable federal or state law; or (ii) an
involuntary case is commenced against the Borrower or any of the Guarantors
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect; or a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over the Borrower, any of the
Guarantors or over all or a substantial part of any of their respective assets
and properties, shall have been entered; or an interim receiver, trustee or
other custodian of the Borrower, any of the Guarantors for all or a substantial
part of their respective assets and

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<PAGE>

properties is involuntarily appointed; or a warrant of attachment, execution or
similar process is issued against any substantial part of the assets and
properties of the Borrower or any of the Guarantors and the continuance of any
such events in this clause (ii) for thirty (30) days unless dismissed, bonded,
stayed, vacated or discharged; or

         3.5 Voluntary Bankruptcy; Appointment of Receiver, Etc.
             ---------------------------------------------------

         The Borrower or any of the Guarantors shall commence a voluntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or shall consent to the entry of an order for relief in an
involuntary case, or to the conversion of an involuntary case to a voluntary
case, under any such law, or shall consent to the appointment of or making
possession by a receiver, trustee or other custodian for all or a possession by
a receiver, trustee or other custodian for all or a substantial part of its
assets and properties; the making by the Borrower or any of the Guarantors of
any assignment for the benefit of creditors; the admission by the Borrower or
any of the Guarantors in writing of their inability to pay their debts as such
debts become due; or the board of directors of the Borrower or any of the
Guarantors, when applicable, (or any committee thereof) adopts any resolution or
otherwise authorizes any action to approve any of the foregoing.

         3.6 Default Under Other Agreements.
             -------------------------------

         If either the Borrower, GCC, Global or any of its subsidiaries shall
(i) default in any prepayment of all or any portion of any Indebtedness other
than the Note or (ii) default in the observance or performance of any agreement,
covenant or condition relating to any Indebtedness other than the Note, or
contained in any instrument or agreement evidencing, securing or relating
thereto and, in the case of clauses (i) and (ii), and such default shall
continue without having been duly cured, waived or consented to, beyond the
period of grace, if any, specified in the agreement or instrument relating
thereto.

         3.7 Judgments or Liens.
             -------------------

         One or more judgments or decrees shall be entered against the Borrower,
GCC, Global or any of its subsidiaries involving in the aggregate for them a
liability of the equivalent of US$500,000 or more, and all such judgments or
decrees shall not have been vacated, discharged or stayed or bounded pending
appeal within 30 days after the entry thereof or a Lien is imposed on the assets
or properties of the Borrower in an amount of in excess, together with other
Liens, of US$500,000 exclusive of Liens to equipment vendors in the ordinary
course of business.

         3.8 Change in Condition.
             --------------------

         Any material adverse change in the condition (financial or otherwise),
operations, assets, liabilities or prospects of the Borrower or any of its
subsidiaries.

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<PAGE>

         3.9 Remedies.
             ---------

         Upon the occurrence of any Event of Default described in this Article
III, the unpaid principal amount of and accrued interest on the Loan shall
automatically become immediately due and payable, without presentment, demand,
protest or other requirements of any kind, all of which are hereby expressly
waived by the Borrower, and the obligations of the Lender hereunder shall
thereupon terminate.

                                   ARTICLE IV
                   REPRESENTATIONS, WARRANTIES AND AGREEMENTS

         In order to induce the Lender to enter into this Agreement and to make
the Loan, the Borrower and the Guarantors, when applicable, make the following
representations, warranties and agreements as of the date hereof, jointly and
severally, which shall survive the execution and delivery of this Agreement and
the Note and the making of the Loan:

         4.1 Legal Status.
             -------------

         The Borrower, GCC, Global and each of its subsidiaries (i) is a duly
organized and validly existing corporation in good standing under the laws of
the jurisdiction of its incorporation, (ii) has the power and authority and
possesses all franchises, permits, authorizations and approvals necessary to
carry on their business as now being conducted and to own its property and
assets, and (iii) has good and marketable title to their respective assets free
and clear of any Lien, except for Liens that do not cause a Material Adverse
Effect in the condition of the Borrower, GCC, Global and its subsidiaries and
except as set forth in the Global SEC Reports (as defined in Section 4.5 below).
The Borrower, GCC, Global and each of its subsidiaries are in good standing in
each jurisdiction where the ownership, leasing or operation of property or the
conduct of its business requires such qualification.

         4.2 Subsidiaries.
             -------------

         The only subsidiaries of Global are set forth in the Global SEC
Reports. The Borrower and GCC do not have any subsidiaries.

         4.3 Power and Authority.
             --------------------

         (i) The Borrower and each of the Guarantors have the power and
authority to execute, deliver and perform the terms and provisions of this
Agreement and the Note and have taken, as the case may be, all necessary
corporate action to authorize the execution, delivery and performance by it of
this Agreement; (ii) the Borrower and each of the Guarantors have duly executed
and delivered this Agreement and the Note which constitutes their legal, valid
and binding obligation enforceable in accordance with their terms, except as
such enforcement may be limited by applicable bankruptcy, insolvency,

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fraudulent conveyance, reorganization or other similar laws relating to or
limiting creditors' rights generally or by general equity principles.

         4.4 No Violation.
             -------------

         Neither the execution, delivery or performance by the Borrower and each
of the Guarantors of this Agreement, nor the compliance by them with the terms
and provisions thereof, nor the use of the proceeds of the Loan (i) will
contravene any provision of any law, statute, rule or regulation or any order,
writ, injunction or decree of any court or governmental instrumentality binding
on the Borrower or any of its subsidiaries, (ii) will conflict or be
inconsistent with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default in respect of the terms of
any indenture, mortgage, deed or trust, credit agreement, loan agreement or any
other agreement, contract or instrument to which the Borrower or any of its
subsidiaries is a party or by which its respective properties or assets is bound
or to which it may be subject.

         4.5 Global SEC Reports, Financial Statements.
             -----------------------------------------

         Global has filed all reports required to be filed by it with the United
States Securities and Exchange Commission ("SEC") since its incorporation
(collectively, the "Global SEC Reports"). As of the respective dates they became
effective, the Global SEC Reports filed pursuant to the Securities Act, and as
of the respective dates of filing of the last applicable amendment thereto the
Global SEC Reports which were filed pursuant to the Exchange Act, did not
contain any untrue statement of a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements of Borrower and
those of Guarantors included in the Global SEC Reports complied as to form in
all material respects with the applicable published rules and regulations of the
SEC with respect thereto, were prepared in accordance with generally accepted
accounting principles applied on a consistent basis throughout the periods
involved (except as otherwise noted in those reports) and fairly present the
consolidated financial position of Borrower and the Guarantors and its
consolidated subsidiaries as at the dates thereof and the consolidated results
of operations and cash flows for the periods then ended, except that in the case
of the unaudited consolidated financial statement included in any form 10-Q, the
presentation and disclosure conform with the applicable rules of the Exchange
Act and are subject to year-end adjustments.

         4.6 Litigation.
             -----------

         Except as set forth in the Global SEC Reports or as set forth in
Schedule 4.6 attached hereto, there is no claim, counterclaim, action, suit,
order, proceeding or investigation pending or, to the knowledge of the Borrower
and each of the Guarantors, threatened against or affecting any of them with
respect to or affecting the Borrower, GCC, Global or any of its subsidiaries, or
their assets, properties or rights, or relating to

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the transactions contemplated hereby, before any court, agency, regulatory,
administrative or other governmental body or officer of before any arbitrator.

         4.7 Undisclosed Liabilities.
             ------------------------

         Except as set forth in the Global SEC Reports, the Borrower, GCC,
Global and its subsidiaries have no liabilities or obligations of any nature
(whether accrued, absolute, contingent, un-asserted or otherwise), including any
liabilities or obligations the Borrower, GCC, Global and its subsidiaries may
incur for product liability, misrepresentation, fraud or comparable claims
arising out of the conduct of the business of the Borrower, GCC, Global and its
subsidiaries prior to the date hereof, except as set forth on the Global SEC
Reports.

         4.8 True and Complete Disclosure.
             -----------------------------

         All factual information (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of the Borrower and each of the
Guarantors in writing to the Lender for purposes of or in connection with this
Agreement or any transaction contemplated herein or in the Note is, and all
other such factual information (taken as a whole) hereafter furnished by or on
behalf of the Borrower and each of the Guarantors in writing to any Lender will
be, true and accurate in all material respects on the date as of which such
information is dated or certified and not incomplete by omitting to state any
fact necessary to make such information (taken as a whole) not misleading at
such time in light of the circumstances under which such information was
provided. There is no fact or circumstances which has, or is reasonably likely
to have, a Material Adverse Effect on the Borrower or any of the Guarantors or
taken as a whole which has not been disclosed herein or in such other documents,
certified and statements furnished to the Lender for use in connection with the
transactions contemplated hereby.

         4.9 Tax Returns and Payments.
             -------------------------

         Except as provided in Schedule 4.9, the Borrower and the Guarantors
have filed all tax returns required to be filed by them and have paid all taxes
payable by them which have become due pursuant to such tax returns and all other
taxes and assessments payable by them which have become due, other than those
not yet delinquent and except for those contested in good faith and for which
adequate reserves have been established.

         4.10 Capitalization.
              ---------------

         (a) As of the date hereof, the authorized capital stock of the Borrower
consists of 1,000 shares of common stock, US$.001 par value per share, of which
all are issued and outstanding. All the outstanding shares have been duly and
validly issued, are fully paid and non-assessable.

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         (b) As of the date hereof, the authorized capital stock of the Global
consists of 200,000,000 shares of common stock, US$.001 par value per share, of
which 41,078,702 shares are issued and outstanding and 10,000,000 shares of
preferred stock, US$.001 par value per share, of which 9,000,000 shares are
issued and outstanding. All the outstanding shares have been duly and validly
issued, are fully paid and non-assessable.

         (c) As of the date hereof, the authorized capital stock of the GCC
consists of 50,000,000 shares of common stock, US$.001 par value per share, of
which 15,700,000 shares are issued and outstanding. All the outstanding shares
have been duly and validly issued, are fully paid and non-assessable.

         4.11 Compliance with Laws, etc.
              --------------------------

         The Borrower, GCC, Global and all of its subsidiaries are in compliance
in all material respects with all applicable statutes, regulations and orders
of, and all applicable restrictions imposed by, all governmental bodies in
respect of the conduct of its business and the ownership of its property
(including applicable statutes, regulations, orders and restrictions relating to
environmental standards and controls).

         4.12 Labor Relations.
              ----------------

         To the Borrower's and the Guarantors' knowledge there is (i) no
significant unfair labor practice complaint pending or threatened against either
the Borrower, GCC, Global or any of its subsidiaries, or before any governmental
body or agency and no significant grievance or significant arbitration
proceeding arising out of or under any collective bargaining agreement is so
pending against the Borrower or any of its subsidiaries, threatened against the
Borrower, GCC, Global or any of its subsidiaries or, (ii) no significant strike,
labor dispute, slowdown or stoppage pending against the Borrower, GCC, Global or
any of its subsidiaries or, threatened against the Borrower, GCC, Global or any
of its subsidiaries, (iii), no union representation question existing with
respect to the employees of the Borrower, GCC, Global or any of its
subsidiaries.

         4.13 Properties.
              -----------

         Except as set forth in the Global SEC Reports, the Borrower and each of
the Guarantors have good and marketable title, without regard to defects of
title, which do not have a Material Adverse Effect, to all properties owned by
them, free and clear of all Liens. With respect to any lease or rental agreement
to which the Borrower or any of the Guarantors are a party, (i) such lease or
rental agreement is in full force and effect, (ii) the Borrower and/or the
Guarantors have complied in all material respects with all of the terms of such
lease or rental agreement.

         4.14 Assets other than Real Property.
              --------------------------------

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<PAGE>

         The Borrower, GCC, Global and its subsidiaries have good title to all
tangible assets owned by them, free and clear of all Liens that individually or
in the aggregate would not have a Material Adverse Effect on the Borrower, GCC,
Global or its subsidiaries. The Borrower, GCC, Global and its subsidiaries own,
or lease all the intangible personal property currently used in the conduct of
its business as presently conducted. All the intangible personal property owned
by the Borrower, GCC, Global or its subsidiaries is in all material respects in
good operating condition and repair, ordinary wear and tear excepted, and all
personal property leased by the Borrower or the Guarantors is in all material
respects in the condition required of such property by the terms of the lease
applicable thereto.

         4.15 Patents, Licenses, Franchises and Formulas.
              -------------------------------------------

         The Borrower and the Guarantors own all the patents, trademarks,
permits, service marks, trade names, copyrights, licenses, franchises and
formulas, or rights with respect to the foregoing, and have obtained assignments
of all leases and other rights of whatever nature, necessary for the present
conduct of their business, without any known conflict with the rights of others
which, or the failure to obtain which, as the case may be, would result in a
Material Adverse Effect on the Borrower or the Guarantors.

         4.16 Intellectual Property.
              ----------------------

         (a) The Borrower and the Guarantors own and possess all right, title
and interest in and to, or have a valid license to use, all of the Proprietary
Rights (as defined below) used in the operation of their business as presently
conducted and none of such Proprietary Rights have been abandoned;

         (b) neither the Borrower nor the Guarantors has received any notice of
any reasonable basis for an allegation of, any infringement or misappropriation
by, or conflict with, any third party with respect to such Proprietary Rights;
and

         (c) neither the Borrower nor the Guarantors or any of Global's
subsidiaries has infringed, misappropriated or otherwise violated any material
Proprietary Rights of any third parties, and neither the Borrower nor the
Guarantors has knowledge of any infringement, misappropriation or conflict which
will occur as a result of the continued operation of the Borrower and the
Guarantors as presently operated.

         As used herein, the term "Proprietary Rights" means all proprietary
information of the Borrower and/or Guarantors, including all patents, patent
applications, patents rights and inventions, trademarks, service marks, trade
names, copyrights and trade secrets.

         4.17 Insurance.
              ----------

         The Borrower, GCC, Global and its subsidiaries presently maintain and
have maintained in effect since their formation all the insurance policies
required by

                                       12
<PAGE>

applicable law or reasonably appropriate in connection with the operation of its
business as presently conducted.

         4.18 No Misrepresentation.
              ---------------------

         The representations and warranties contained in this Article IV and any
Schedules of Exceptions attached hereto, do not contain any untrue statement or
a material fact or omit to state any material fact necessary in order to make
the statements and information in this Section 4 and Schedules of Exceptions not
misleading.

                                    ARTICLE V
                              AFFIRMATIVE COVENANTS

         The Borrower and the Guarantors covenant and agree that on and after
the date hereof and until the Note, together with all accrued interest, fees and
all other obligations incurred hereunder and thereunder, are paid in full:

         5.1 Information Covenants.
             ----------------------

         The Borrower and the Guarantors will furnish or cause to be furnished
to the Lender:

         (a) Promptly, copies of all financial information, proxy materials and
material filings, reports and information which either of the Borrower and the
Guarantors shall file or be required to file with any agency, regulatory
authority or instrumentality of the Government.

         (b) Other Information. From time to time, such other information or
documents (financial or otherwise) as any Lender may reasonably request.

         5.2 Books, Records and Inspections.
             -------------------------------

         The Borrower, GCC, Global and each of its subsidiaries will keep proper
books of record and account in which full, true and correct entries in
conformity with generally accepted accounting principles in the United States
consistently applied in the jurisdiction of each corporation and all
requirements of applicable law shall be made of all dealings and transactions in
relation to its business and activities.

         5.3 Maintenance of Property, Insurance.
             -----------------------------------

         The Borrower, GCC, Global and each of its subsidiaries will (i) keep
all property useful and necessary in its business in good working order and
condition (ordinary wear and tear excepted), (ii) maintain with financially
sound and reputable insurance companies insurance on all its property in at
least such amounts and against at least such risks as are customary and in
accordance with industry standards for the business in which it is engaged.

                                       13
<PAGE>

         5.4 Corporate Franchises.
             ---------------------

         The Borrower, GCC, Global and each of its subsidiaries will do or cause
to be done, all things reasonably necessary to preserve and keep in full force
and effect its existence and its material rights, franchises, licenses and other
intellectual property.

         5.5 Compliance with Statutes, etc.
             ------------------------------

         The Borrower, GCC, Global and each of its subsidiaries will comply with
all applicable statutes, regulations and orders of, and all applicable
restrictions imposed by, all governmental bodies, domestic or foreign, in
respect of the conduct of their respective business and the ownership of their
respective property, except where the failure to so comply would not have a
Material Adverse Effect on the Borrower, GCC, Global or any of its subsidiaries.
Global will timely comply with the filing of all the Global SEC Reports.

         5.6 Performance of Obligations.
             ---------------------------

         The Borrower, GCC, Global and each of its subsidiaries will: (i)
perform all of its obligations under (a) this Agreement, (b) the Security
Agreement, and (c) the terms of each other mortgage, indenture, security
agreement, and other debt instrument by which it is bound, except where the
failure to so perform would not have a Material Adverse Effect on the Borrower,
GCC, Global or any of its subsidiaries.

         5.7 Taxes.
             ------

         The Borrower, GCC, Global and each of its subsidiaries will pay and
discharge or cause to be paid and discharged all applicable federal, state,
local and other material taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits or upon any of its property, real,
personal or mixed or upon any part thereof, when due, as well as all lawful
claims for labor, materials and supplies which, if unpaid might by law become a
lien upon such property.

         5.8 Compliance.
             -----------

         The Borrower, GCC, Global and each of its subsidiaries will maintain
all material authorizations, qualifications, licenses and permits necessary for
the operation of their respective business and the ownership of their respective
property.

         5.9 Shares.
             -------

         Global shall maintain sufficient number of authorized shares of its
Series A Preferred Stock and common stock for issuance in the event that Lender
converts the Loan into Series A Preferred Stock of Global and then desires to
convert such Series A Preferred Stock into common stock of Global.

                                       14
<PAGE>

                                   ARTICLE VI
                               NEGATIVE COVENANTS

         The Borrower and the Guarantors, when applicable, covenant and agree
that on and after the date hereof and until the Loan and the Note, together with
interest, fees and all other obligations incurred hereunder and thereunder, are
paid in full:

         6.1 Liens.
             ------

         The Borrower, GCC, Global and each of its subsidiaries will not,
create, incur, assume or suffer to exist any Lien upon or with respect to any
property or assets (real or personal, tangible or intangible) of each of them,
whether now owned or hereafter acquired, without the prior consent of Lender.

         6.2 Consolidation, Merger, Sale of Assets, etc.
             -------------------------------------------

         The Borrower, GCC, Global and each of its subsidiaries will not wind
up, liquidate or dissolve its affairs or enter into any transaction of merger or
consolidation, or convey, sell, lease or otherwise dispose of (or agree to do
any of the foregoing, at any future time) all or any part of its property or
assets, or purchase or otherwise acquire (in one or a series of related
transactions) any part of the property or assets (other than purchases or other
acquisitions of inventory, materials and equipment in the ordinary course of
business) of any Person.

         6.3 Dividends and Redemptions.
             --------------------------

         (a) The Borrower, GCC, Global and each of its subsidiaries will not
declare or pay any dividends, or return any capital, to its stockholders or
authorize or make any other distribution, payment or delivery of property or
cash to its stockholders as such, or redeem, retire, purchase or otherwise
acquire, directly or indirectly, for any consideration, any shares of any class
of its capital stock now or hereafter outstanding (or any options or warrants
issued by the Borrower or the Guarantors with respect to its capital stock), or
set aside any funds for any of the foregoing purposes; and (b) the Borrower or
the Guarantors will not redeem any common stock of either the Borrower or the
Guarantors.

         6.4 Indebtedness.
             -------------

         Except to the Lender, the Borrower and the Guarantors will not, and
will not permit any of its subsidiaries to, contract, create, incur, assume or
suffer to exist any Indebtedness without Lender's prior consent, at Lender's
sole discretion, except (i) certain vendor financing as described in the Global
SEC Reports and (ii) obligations incurred in the ordinary course of business.

                                       15
<PAGE>

         In the event that Lender consents to any loan by a third party to
Borrower or any of the Guarantors which terms and conditions are more favorable
to such third party in such loan than the terms and conditions of this Loan to
Lender, then such consent may be given upon the condition that the terms of this
Loan are amended to reflect the more favorable terms and conditions granted to
the third party in the loan to be consented by Lender.

         6.5 Advances, Investments and Loans.
             --------------------------------

         The Borrower and the Guarantors will not, and will not permit any of
its subsidiaries to, lend money or credit or make advances to any Person, or
purchase or acquire any stock, obligations or securities of, or any other
interest in, or make any capital contribution to, any other Person, except that
the following shall be permitted: (i) advances, investments and loans to
wholly-owned subsidiaries of the Borrower or upstream advances, investments and
loans to Global; (ii) extensions of credit made in the ordinary course of
business in accordance with customary trade practices; (iii) capital
expenditures and (iv) presently outstanding loans and investments if any, as
disclosed in the Global SEC Reports.

         6.6 Transactions with Affiliates.
             -----------------------------

         Neither the Borrower nor the Guarantors will enter into any transaction
or series of related transactions, whether or not in the ordinary course of
business, with any affiliate other than on terms and conditions substantially as
favorable to, as the case may be, the Borrower, the Guarantors or any such
subsidiary as would be obtainable by the Borrower or the Guarantors at the time
in a comparable arm's-length transaction with a Person other than an affiliate.

         6.7 Limitation on Issuance of Common Stock or other Securities.
             -----------------------------------------------------------

         The Borrower and the Guarantors will not, and will not permit any of
its subsidiaries to, issue any common stock or other securities (including by
way of sales of treasury stock) or any options or warrants to purchase, or
securities convertible into, common stock, except for (i) transfers and
replacements of then outstanding shares of common stock, (ii) stock splits,
stock dividends and similar issuances which do not decrease the percentage
ownership of the Guarantors in any class of the common stock of the any of the
subsidiaries of the Borrower.

         6.8 Business.
             ---------

         Neither the Borrower nor the Guarantors will engage (directly or
indirectly) in any business other than the business in which they are engaged on
the date hereof.

                                   ARTICLE VII
                                    GUARANTY

                                       16
<PAGE>

         7.1 The Guarantors irrevocably and unconditionally, guarantee the full
and prompt payment when due of the principal amount of and interest on the Note
issued under this Agreement and of all other obligations and liabilities of the
Borrower now existing or hereafter incurred under, arising out of or in
connection with this Agreement and the Note and the due performance and
compliance with the terms of this Agreement and the Note by the Borrower
("Guaranteed Obligations"). The Guarantors understand, agree and confirm that
the Lender may enforce this guaranty obligation up to the full amount of the
Guaranteed Obligations against any of them without proceeding against the
Borrower. The Guarantors irrevocably and unconditionally promise to pay such
Guaranteed Obligations to the Lender, or order, on demand, when due, in lawful
money of the United States of America. The guaranty provided herein shall
constitute a guarantee of payment and not of collection.

         7.2 The Guarantors hereby waive notice of acceptance of this guaranty
obligation and notice of any liability to which it may apply, and waive
presentment, demand of payment, protest, notice of dishonor or nonpayment of any
such liability, suit or taking of other action by the Lender against, and any
other notice to, any party liable thereon (including the Guarantor).

         7.3 The obligations of the Guarantors under this agreement are absolute
and unconditional and shall remain in full force and effect without regard to,
and shall not be released, suspended, discharged, terminated or otherwise
affected by, any circumstance or occurrence whatsoever.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.1 Notices. All notices, requests and other communications hereunder
must be in writing and delivered personally against written receipt, by
facsimile transmission with answer back confirmation or mailed by prepaid first
class certified mail (air mail, if faster delivery), return receipt requested,
or mailed by overnight (or in the case of notices being sent or delivered
outside the United States, second day) courier prepaid, to the parties at the
following addresses or facsimile numbers:

                  If to Borrower or Guarantors, to:

                  100 North Biscayne Blvd, Suite 2500
                  Miami, Florida, 33132
                  Attn: Dario Echeverry and Syed Naqvi
                  Fax: (305) 371-6540

                                       17
<PAGE>

                  With a copy to:

                  Steven Weinberger, Esq.
                  c/o Phone 1, Inc.
                  100 North Biscayne Blvd, Suite 2500
                  Miami, Florida, 33132
                  Fax: (305) 371-6540

                  If to Lender, to:

                  GNB Bank Panama S.A
                  Calle 50 y Aquilino de la Guardia,
                  Torre Banco Continental, Piso 30
                  Ciudad de Panama, Panama.
                  Attn: Camilo Verastegui
                  Fax: (011-507) 215-7560

                  with a copy to:

                  Proskauer Rose LLP
                  1585 Broadway
                  New York, New York 10036
                  Attn: David W. Sloan, Esq.
                  Fax: (212) 969-2900

         All such notices, requests and other communications will (i) if
delivered personally to the address as provided in this Section 8.1, be deemed
given upon delivery, (ii) if delivered by facsimile transmission to the
applicable facsimile number as provided in this Section, be deemed given upon
receipt, (iii) if delivered by United States mail in the manner described above
to the address as provided in this Section, be deemed given on the earlier of
the tenth Business Day following mailing or upon receipt and (iv) if delivered
by courier to the address as provided in this Section, be deemed given on the
earlier of the first Business Day (second Business Day in the case of notices
given or sent outside the United States) following the date sent by such courier
or upon receipt (in each case regardless of whether such notice, request or
other communication is received by any other Person to whom a copy of such
notice is to be delivered pursuant to this Section). Any party from time to time
may change its address, facsimile number or other information for the purpose of
notices to that party by giving notice specifying such change to the other party
hereto at least ten (10) Business Days prior to the effective date of such
notice.

         8.2 Entire Agreement.
             -----------------

         This Agreement, the Security Agreement and the Note supersede all prior
discussions and agreements between the parties with respect to the subject
matter hereof and thereof and contain the sole and entire agreement between the
parties hereto with respect to the subject matter hereof and thereof.

         8.3 Independence of Representations, Warranties and Covenants.
             ----------------------------------------------------------

                                       18
<PAGE>

         All representations, warranties and covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception
to, or be otherwise within the limitation of, another representation, warranty
or covenant shall not avoid the occurrence of an Event of Default if such action
is taken or condition exists.

         8.4 No Third Party Beneficiary.
             ---------------------------

         The terms and provisions of this Agreement are intended solely for the
benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party
beneficiary rights.

         8.5 Assignment; Binding Effect.
             ---------------------------

         This Agreement, all the rights, interest or obligation hereunder may be
assigned by the other party with the prior written consent of the other party.
This Agreement is binding upon, inures to the benefit of and is enforceable by
the parties hereto and their respective permitted successors and assigns.

         8.6 Headings.
             ---------

         The headings used in this Agreement have been inserted for convenience
of reference only and do not define or limit the provisions hereof.

         8.7 Invalid Provisions.
             -------------------

         If any provision of this Agreement is held to be illegal, invalid or
unenforceable under any present or future Law, and if the rights or obligations
of any party hereto under this Agreement will not be materially and adversely
affected thereby, (i) such provision will be fully severable, (ii) this
Agreement will be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof, (iii) the remaining
provisions of this Agreement will remain in full force and effect and will not
be affected by the illegal, invalid or unenforceable provision or by its
severance here from and (iv) in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this Agreement a
legal, valid and enforceable provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible.

         8.8 Governing Law.
             --------------

         This Agreement has been signed in the State of New York and shall be
governed by and construed in accordance with the laws of the State of New York,
without regard to conflict of law principles. In the event of any claim or
dispute in respect to the subject matter hereof or the rights or obligations of
the parties hereto, all actions or proceedings must be exclusively brought in
the United States District Court for

                                       19
<PAGE>

the Southern District of New York of if such Court lacks subject matter
jurisdiction, in the Supreme Court of the State of New York, County of New York.
Each party waives the right to object to the exclusive jurisdiction of either
such Court or the right to object to the venue of either such Court or that
either such Court is an inconvenient forum. Nothing in this Agreement shall be
deemed to constitute a general consent to service of process or the in personam
jurisdiction of the United States District Court for the Southern District of
New York, County of New York or the Supreme Court of the State of New York for
legal actions or proceedings not related to the transactions contemplated by
this Agreement.

         8.9 Computations.
             -------------

         All computations of interest hereunder shall be made on the basis of a
year of 360 days for the actual number of days (including the first day but
excluding the last day) occurring in the period for which such interest is
payable.

         8.10 Counterparts.
              -------------

         This Agreement may be executed in any number of counterparts, each of
which will be deemed an original, but all of which together will constitute one
and the same instrument.

         8.11 Independent Advice.
              -------------------

         Lender confirms that he fully understands his rights and obligations
hereunder and that he has had an opportunity to consult with such independent
advisors, including counsel, as he deemed necessary or appropriate.

                                       20
<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
by the duly authorized officer of each party hereto as of the date first above
written.

                                    PHONE1, INC.

                                    By:     /s/ Syed Naqvi
                                    Name:    Syed Naqvi
                                    Title:   Chief Financial Officer

                                    PHONE1GLOBALWIDE, INC.

                                    By:     /s/ Syed Naqvi
                                    Name:    Syed Naqvi
                                    Title:   Chief Financial Officer

                                    GLOBALTRON COMMUNICATIONS CORPORATION

                                    By:     /s/ Syed Naqvi
                                    Name:    Syed Naqvi
                                    Title:   Chief Financial Officer

                                    GNB BANK PANAMA S.A.

                                    By:     /s/ Camilo Verastegui
                                    Name:   Camilo Verastegui
                                    Title:  General Manager

                                       21
<PAGE>
             Exceptions to Representations, Warranties and Covenants
               Under Loan Agreement dated as of November 26, 2002
             (the "Loan Agreement") between Borrower, Global and GCC
             -------------------------------------------------------

         The following information qualifies and constitutes exceptions to the
representations, warranties and covenants made by Borrower, Global and GCC under
the Loan Agreement. Terms not otherwise defined herein shall have the respective
meanings assigned to them in the Loan Agreement.

1.       Section 4.2
         -----------

               Borrower has a 51% equity interest in Phone1Smart LLC, a Florida
limited liability company.

2.       Section 4.7
         -----------

              See Schedule 4.6 to the Loan Agreement.

3.       Section 4.14
         ------------

              Office equipment, office furniture, computer equipment and similar
     tangible assets are leased and not owned.

4.       Sections 4.15 and 4.16
         ----------------------

              FireSign lawsuit described on Schedule 4.6 to the Loan Agreement.

5.       Section 6.1
         -----------

              Qualified by Liens disclosed in the Global SEC Reports as of the
date hereof.

6.       Section 6.4
         -----------

              Indebtedness existing on the date hereof and disclosed in the
Global SEC Reports.

7.       Section 6.7
         -----------

         (a)  Exception for issuance of shares disclosed as being reserved for
              issuance in Global SEC Reports filed prior to the date hereof.

         (b)  Exception as to 50,000 shares issuable to Jaime Rojas under
              proposed settlement with Singer Products and Rojas described on
              Schedule 4.6 to the Loan Agreement.

                                       22
<PAGE>

                                  SCHEDULE 4.6
                 TO LOAN AGREEMENT DATED AS OF NOVEMBER 26, 2002
                 BETWEEN PHONE1GLOBALWIDE INC. PHONE1, INC. AND
                     GLOBALTRON COMMUNICATIONS CORPORATION

A.       FireSign Lawsuit (logo).

B.       Lawsuits in the ordinary course of business that are not, individually
         or in the aggregate, expected to have a material adverse effect on the
         Borrower, Global and/or GCC.

C.       Threatened Claims:

         o  Jacob Gittman - Employment compensation dispute where Gittman is
            seeking damages for alleged breach of terms of employment.

         o  Eric Frizza - seeking 1.5% ownership of Phone1, Inc.

         o  CPQD has claimed $200,000 arising out of a Settlement Agreement
            disclosed in the Global SEC Reports.

         o  Singer Products and Jaime Rojas - Rojas and Singer have indicated a
            willingness to settle all claims and deliver mutual releases in
            exchange for $50,000 and 50,000 shares of Global restricted stock.
            This matter arises under a Services Agreement dated as of July 11,
            2000 between GCC and Singer Products Inc.

         o  Third-party claims arising out of relationship with FireSign Rosen
            Baker currently believed to be approximately $40,000.

                                       23
<PAGE>

                                  SCHEDULE 4.9
                 TO LOAN AGREEMENT DATED AS OF NOVEMBER 26, 2002
                 BETWEEN PHONE1GLOBALWIDE INC. PHONE1, INC. AND
                     GLOBALTRON COMMUNICATIONS CORPORATION

         Approximately $450,000 in property taxes has been accrued but remains
unpaid to Miami-Dade County.

                                       24EXHIBIT 10.2

                               SECURITY AGREEMENT
                               ------------------

         SECURITY AGREEMENT, dated as of November 26, 2002 (together with all
amendments, if any, from time to time hereto, this "Security Agreement"), among
Phone1, Inc., a Florida corporation ("Phone1"), Phone1Globalwide, Inc., a
Delaware corporation ("Global") and Globaltron Communication Corporation, a
Delaware corporation ("GCC" and collectively with Phone1 and Global, the
"Grantors" and individually, a "Grantor"), and GNB Bank Panama S.A., a bank
organized under the laws of the Republic of Panama ("Lender").

                               W I T N E S S T H:
                               - - - - - - - - --

         WHEREAS, pursuant to that certain Loan Agreement (which is incorporated
herein by reference) dated as of the date hereof (the "Loan Agreement") by and
among Lender and the Grantors, Lender has agreed to make the Loan;

         WHEREAS, in order to induce Lender to enter into the Loan Agreement,
Grantors have agreed to grant a continuing Lien on the Collateral (as
hereinafter defined) to secure all of the payment obligations of Phone1
(guaranteed by Global and GCC) under the Loan Agreement, including any
additional loans made to Lender pursuant to the terms of the Loan Agreement or
otherwise (the "Secured Obligations");

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

         1. DEFINED TERMS. All capitalized terms used but not otherwise defined
herein (included in the recitals hereof) have the meanings given to them in the
Loan Agreement. All other terms contained in this Security Agreement, unless the
context indicates otherwise, have the meanings provided for by the Code to the
extent the same are used or defined therein.

         (a) "Accounts" means all "accounts," as such term is defined in the
Code, now owned or hereafter acquired by any Grantor, including (a) all accounts
receivable, other receivables, book debts and other forms of obligations (other
than forms of obligations evidenced by Chattel Paper, or Instruments),
(including any such obligations that may be characterized as an account or
contract right under the Code), (b) all of each Grantor's rights in, to and
under all purchase orders or receipts for goods or services, (c) all of each
Grantor's rights to any goods represented by any of the foregoing (including
unpaid sellers' rights of rescission, replevin, reclamation and stoppage in
transit and rights to returned, reclaimed or repossessed goods), (d) all rights
to payment due to any Grantor for property sold, leased, licensed, assigned or
otherwise disposed of, for a policy of insurance issued or to be issued, for a
secondary obligation incurred or to be incurred, for energy provided or to be
provided, for the use or hire of a vessel under a charter or other contract,
arising out of the use of a credit card or charge card, or for

<PAGE>

services rendered or to be rendered by such Grantor or in connection with any
other transaction (whether or not yet earned by performance on the part of such
Grantor), (e) all health care insurance receivables and (f) all collateral
security of any kind, given by any Account Debtor or any other Person with
respect to any of the foregoing.

         (b) "Account Debtor" means any Person who may become obligated to any
Grantor under, with respect to, or on account of, an Account, Chattel Paper or
General Intangibles (including a payment intangible).

         (c) "Chattel Paper" means any "chattel paper," as such term is defined
in the Code, including electronic chattel paper, now owned or hereafter acquired
by any Grantor.

         (d) "Code" means the Uniform Commercial Code as the same may, from time
to time, be enacted and in effect in the State of New York; provided, that to
the extent that the Code is used to define any term herein or in the Loan
Agreement and such term is defined differently in different Articles or
Divisions of the Code, the definition of such term contained in Article or
Division 9 shall govern; provided further, that in the event that, by reason of
mandatory provisions of law, any or all of the attachment, perfection or
priority of, or remedies with respect to Lender's Lien on any Collateral is
governed by the Uniform Commercial Code as enacted and in effect from time to
time in a jurisdiction other than the State of New York, the term "Code" shall
mean the Uniform Commercial Code as enacted and in effect in such other
jurisdiction solely for purposes of the provisions thereof relating to such
attachment, perfection, priority or remedies and for purposes of definitions
related to such provisions.

         (e) "Contracts" means all contracts and agreements to which any Grantor
is a party, as the same may be amended, supplemented or otherwise modified from
time to time, including without limitation, (i) all rights of any Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of any Grantor to damages arising thereunder and
(iii) all rights of any Grantor to perform and to exercise all remedies
thereunder.

         (f) "Copyright Licenses" means any and all rights now owned or
hereafter acquired by any Grantor under any written agreement granting any right
to use any Copyright (as defined below) or Copyright registration.

         (g) "Copyrights" means all of the following now owned or hereafter
adopted or acquired by any Grantor: (i) all Copyrights and General Intangibles
of like nature (whether registered or unregistered), all registrations and
recordings thereof, and all applications in connection therewith, including all
registrations, recordings and applications in the United States Copyright Office
or in any similar office or agency of the United States, any state or territory
thereof, or any other country or any political subdivision thereof, and (ii) all
reissues, extensions or renewals thereof.

                                       2
<PAGE>

         (h) "Deposit Accounts" means all "deposit accounts" as such term is
defined in the Code, now or hereafter held in the name of any Grantor.

         (i) "Documents" means all "documents", as such term is defined in the
Code, now owned or hereafter acquired by any Grantor, wherever located.

         (j) "Equipment" means all "equipment," as such term is defined in the
Code, now owned or hereafter acquired by any Grantor, wherever located and, in
any event, including all such Grantor's machinery and equipment, including
processing equipment, conveyors, machine tools, data processing and computer
equipment, including embedded software and peripheral equipment and all
engineering, processing and manufacturing equipment, office machinery,
furniture, materials handling equipment, tools, attachments, accessories,
automotive equipment, trailers, trucks, forklifts, molds, dies, stamps, motor
vehicles, rolling stock and other equipment of every kind and nature, trade
fixtures and fixtures not forming a part of real property, together with all
additions and accessions thereto, replacements therefor, all parts therefor, all
substitutes for any of the foregoing, fuel therefor, and all manuals, drawings,
instructions, warranties and rights with respect thereto, and all products and
proceeds thereof and condemnation awards and insurance proceeds with respect
thereto.

         (k) "Fixtures" means all "fixtures" as such term is defined in the
Code, now owned or hereafter acquired by any Grantor.

         (l) "General Intangibles" means all "general intangibles," as such term
is defined in the Code, now owned or hereafter acquired by any Grantor,
including all right, title and interest that such Grantor may now or hereafter
have in or under any contract, all payment intangibles, customer lists,
licenses, Copyrights, Trademarks, Patents, and all applications therefor and
reissues, extensions or renewals thereof, rights in Intellectual Property,
interests in partnerships, joint ventures and other business associations,
licenses, permits, Copyrights, trade secrets, proprietary or confidential
information, inventions (whether or not patented or patentable), technical
information, procedures, designs, knowledge, know-how, software, data bases,
data, skill, expertise, experience, processes, models, drawings, materials and
records, goodwill (including the goodwill associated with any Trademark or
Trademark license), all rights and claims in or under insurance policies
(including insurance for fire, damage, loss and casualty, whether covering
personal property, real property, tangible rights or intangible rights, all
liability, life, key man and business interruption insurance, and all unearned
premiums), uncertificated securities, choses in action, deposit, checking and
other bank accounts, rights to receive tax refunds and other payments, rights to
receive dividends, distributions, cash, instruments and other property in
respect of or in exchange for pledged stock and investment property, rights of
indemnification, all books and records, correspondence, credit files, invoices
and other papers, including without limitation all tapes, cards, computer runs
and other papers and documents in the possession or under

                                       3
<PAGE>

the control of such Grantor or any computer bureau or service company from time
to time acting for such Grantor.

         (m) "Global Subsidiaries Stock" means all of Global's right, title and
interest in and to any and all of its subsidiaries; the Global Subsidiaries
Stock shall include any additional shares of any class or series of capital
stock of any subsidiary of Global hereafter acquired by Global from time to time
and at any time and all dividends, cash, instruments and other property or
proceeds, from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all the Global Subsidiaries Stock.

         (n) "Goods" means all "goods" as defined in the Code, now owned or
hereafter acquired by any Grantor, wherever located, including embedded software
to the extent included in "goods" as defined in the Code, manufactured homes,
standing timber that is cut and removed for sale and unborn young of animals.

         (o) "Instruments" means all "instruments," as such term is defined in
the Code, now owned or hereafter acquired by any Grantor, wherever located, and,
in any event, including all certificated securities, all certificates of
deposit, and all promissory notes and other evidences of indebtedness, other
than instruments that constitute, or are a part of a group of writings that
constitute, Chattel Paper.

         (p) "Intellectual Property" means any and all Licenses, Patents,
Copyrights, Trademarks, service marks, trade dress, trade names, domain names,
brand names and certification marks presently owned by any Grantor or (pursuant
to license, sublicense, agreement or permission) used by any Grantor in
connection with such Grantor's business.

         (q) "Inventory" means all "inventory" as such term is defined in the
Code, now owned or hereafter acquired by any Grantor, wherever located, and in
any event including inventory, merchandise, goods and other personal property
that are held by or on behalf of any Grantor for sale or lease or are furnished
or are to be furnished under a contract of service, or that constitute raw
materials, work in process, finished goods, returned goods, or materials or
supplies of any kind, nature or description used or consumed or to be used or
consumed in the respective Grantor's business or in the processing, production,
packaging, promotion, delivery or shipping of the same, including other supplies
and embedded software.

         (r) "Investment Property" means all "investment property" as such term
is defined in the Code now owned or hereafter acquired by any Grantor, wherever
located including (i) all securities, whether certificated or uncertificated,
including stocks, bonds, interests in limited liability companies, partnership
interests, treasuries, certificates of deposit, and mutual fund shares; (ii) all
securities entitlements of any Grantor, including the rights of any Grantor to
any securities account and the financial assets held by a securities
intermediary in such securities account and any free credit

                                       4
<PAGE>

balance or other money owing by any securities intermediary with respect to that
account, (iii) all securities accounts of any Grantor; (iv) all commodity
contracts of any Grantor and (v) all commodity accounts held by any Grantor.

         (s) "Letter of Credit Rights" means letter of credit rights as such
term is defined in the Code, now owned or hereafter acquired by any Grantor,
including rights to payment or performance under a letter of credit, whether or
not such Grantor, as beneficiary, has demanded or is entitled to demand payment
or performance.

         (t) "License" means any Copyright License, Patent License, Trademark
License or other license of rights or interests now held or hereafter acquired
by any Grantor.

         (u) "Lien" means any mortgage, pledge, security interest, lien, claim,
encumbrance or other similar restrictions, of any kind or nature whatsoever.

         (v) "Patent Licenses" means rights under any written agreement now
owned or hereafter acquired by any Grantor granting any right with respect to
any invention on which a Patent (as defined below) is in existence.

         (w) "Patents" means all of the following in which any Grantor now holds
or hereafter acquires any interest: (i) all letters patent of the United States
or of any other country, all registrations and recordings thereof, and all
applications for letters patent of the United States or of any other country,
including registrations, recordings and applications in the United States Patent
and Trademark Office or in any similar office or agency of the United States,
any State or any other country, and (ii) all reissues, continuations,
continuations-in-part or extensions thereof.

         (x) "Permitted Encumbrances" means (i) Liens on Equipment leased
pursuant to the existing leases and Liens reported on the SEC reports of Global
as of the date hereof; (ii) Liens for taxes not yet payable; (iii) Liens of
materialmen, mechanics, warehousemen, carriers, or other similar liens arising
in the ordinary course of business and securing obligations which are not
delinquent; and (iv) Liens incurred in connection with the extension, renewal or
refinancing of the indebtedness secured by liens of the type described above in
clauses (i) or (ii) above, provided that any extension, renewal or replacement
Lien is limited to the property encumbered by the existing Lien and the
principal amount of the indebtedness being extended, renewed or refinanced does
not increase.

         (y) "Proceeds" means "proceeds," as such term is defined in the Code,
including (a) any and all proceeds of any insurance, indemnity, warranty or
guaranty payable to any Grantor from time to time with respect to any of the
Collateral, (b) any and all payments (in any form whatsoever) made or due and
payable to any Grantor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any

                                       5
<PAGE>

Person acting under color of governmental authority), (c) any claim of any
Grantor against third parties (i) for past, present or future infringement of
any Patent or Patent License, or (ii) for past, present or future infringement
or dilution of any Copyright, Copyright License, Trademark or Trademark License,
or for injury to the goodwill associated with any Trademark or Trademark
License, (d) any recoveries by any Grantor against third parties with respect to
any litigation or dispute concerning any of the Collateral including claims
arising out of the loss or nonconformity of, interference with the use of,
defects in, or infringement of rights in, or damage to, Collateral, (e) all
amounts collected on, or distributed on account of, other Collateral, including
dividends, interest, distributions and Instruments with respect to investment
property and pledged stock, and (f) any and all other amounts, rights to payment
or other property acquired upon the sale, lease, license, exchange or other
disposition of Collateral and all rights arising out of Collateral.

         (z) "Software" means all "software" as such term is defined in the
Code, now owned or hereafter acquired by any Grantor, other than software
embedded in any category of goods, including all computer programs and all
supporting information provided in connection with a transaction related to any
program.

         (aa) "Supporting Obligations" means all supporting obligations as such
term is defined in the Code, including letters of credit and guaranties issued
in support of Accounts, Chattel Paper, Documents, General Intangibles,
Instruments, or Investment Property.

         (bb) "Trademark License" means rights under any written agreement now
owned or hereafter acquired by any Grantor granting any right to use any
Trademark.

         (cc) "Trademarks" means all of the following now owned or hereafter
existing or adopted or acquired by any Grantor: (i) all Trademarks, trade names,
corporate names, business names, trade styles, service marks, logos, other
source or business identifiers, prints and labels on which any of the foregoing
have appeared or appear, designs and general intangibles of like nature (whether
registered or unregistered), all registrations and recordings thereof, and all
applications in connection therewith, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any state or territory thereof, or any
other country or any political subdivision thereof; (ii) all reissues,
extensions or renewals thereof; and (iii) all goodwill associated with or
symbolized by any of the foregoing.

         (dd) "Uniform Commercial Code Jurisdiction" means any jurisdiction that
had adopted all or substantially all of Article 9 as contained in the 2000
Official Text of the Uniform Commercial Code, as recommended by the National
Conference of Commissioners on Uniform State Laws and the American Law
Institute, together with any subsequent amendments or modifications to the
Official Text.

                                       6
<PAGE>

         2. GRANT OF LIEN. To secure the prompt and complete payment,
performance and observance of all of the Secured Obligations, each Grantor
hereby grants, assigns, conveys, mortgages, pledges, hypothecates and transfers
to Lender, a first priority security interest in, and Lien upon all of its
right, title and interest in, to and under all personal property and other
assets whether now owned by or owing to, or hereafter acquired by or arising in
favor of such Grantor (including under any trade names, styles or derivations
thereof), and whether owned or consigned by or to, or leased from or to, such
Grantor, and regardless of where located (all of which being hereinafter
collectively referred to as the "Collateral"), including:

            (i) all Accounts;

            (ii) all Chattel Paper;

            (iii) all Contracts;

            (iv) all Documents;

            (v) all General Intangibles (including payment intangibles and
     Software);

            (vi) all Goods (including Inventory, Equipment and Fixtures);

            (vii) all Instruments;

            (viii) all Investment Property;

            (ix) all Deposit Accounts, of any Grantor, inclusive all deposit and
     other bank accounts and all deposits therein;

            (x) all money, cash or cash equivalents of any Grantor;

            (xi) all Inventory;

            (xii) all Global Subsidiaries Stock;

            (xiii) all Supporting Obligations and Letter of Credit Rights of any
     Grantor;

            (xiv) to the extent not otherwise included, all Proceeds, tort
     claims, insurance claims and other rights to payments not otherwise
     included in the foregoing and products of the foregoing and all accessions
     to, substitutions and replacements for, and rents and profits of, each of
     the foregoing.

                                       7
<PAGE>

            Lender acknowledges that it has previously been granted a first
     priority security interest in, and Lien upon, all of the above assets in
     connection with a loan agreement, dated September 30, 2002, with the same
     parties hereof.

            3. LENDER'S RIGHTS. LIMITATIONS. LENDER'S OBLIGATIONS.
               ---------------------------------------------------

         (a) It is expressly agreed by Grantors that, anything herein to the
contrary notwithstanding, each Grantor shall remain liable under each of its
Contracts and each of its Licenses to observe and perform all the conditions and
obligations to be observed and performed by it thereunder. Lender shall have no
obligation or liability under any Contract or License by reason of or arising
out of this Security Agreement or the granting herein of a Lien thereon or the
receipt by Lender of any payment relating to any Contract or License pursuant
hereto. Lender shall not be required or obligated in any manner to perform or
fulfill any of the obligations of any Grantor under or pursuant to any Contract
or License, or to make any payment, or to make any inquiry as to the nature or
the sufficiency of any payment received by it or the sufficiency of any
performance by any party under any Contract or License, or to present or file
any claims, or to take any action to collect or enforce any performance or the
payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

         (b) Lender may at any time after an Event of Default has occurred and
be continuing, without prior notice to any Grantor, notify Account Debtors and
other Persons obligated on the Collateral that Lender has a security interest
therein, and that payments shall be made directly to Lender. Upon the request of
Lender after the occurrence and during the continuance of an Event of Default,
each Grantor shall so notify Account Debtors and other Persons obligated on
Collateral. Once any such notice has been given to any Account Debtor or other
Person obligated on the Collateral, the affected Grantor shall not give any
contrary instructions to such Account Debtor or other Person without Lender's
prior written consent.

         (c) Lender may at any time in its own name, in the name of a nominee of
Lender or in the name of any Grantor communicate (by mail, telephone, facsimile
or otherwise) with Account Debtors, parties to Contracts, obligors in respect of
Instruments and obligors in respect of Chattel Paper and/or payment intangibles
to verify with such Persons, to Lender's satisfaction, the existence, amount
terms of, and any other matter relating to, any such Accounts, Contracts,
Instruments or Chattel Paper and/or payment intangibles. If a Default or Event
of Default shall have occurred and be continuing, each Grantor, at its own
expense, shall cause the independent certified public accountants then engaged
by such Grantor to prepare and deliver to Lender at any time and from time to
time promptly upon Lender's request the following reports with respect to each
Grantor: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts;
(iii) trial balances; and (iv) a test verification of such Accounts as Lender
may request. Each Grantor, at its own expense, shall deliver to Lender the
results of each physical verification, if any, which

                                       8
<PAGE>

such Grantor may in its discretion have made, or caused any other Person to have
made on its behalf, of all or any portion of its Inventory.

         4. REPRESENTATIONS AND WARRANTIES. Each Grantor represents and warrants
that:

         (a) Each Grantor has rights in and the power to transfer each item of
the Collateral upon which it purports to grant a Lien hereunder free and clear
of any and all Liens other than Permitted Encumbrances.

         (b) No effective security agreement, financing statement, equivalent
security or Lien instrument or continuation statement covering all or any part
of the Collateral is on file or of record in any public office, except such as
may have been filed (i) by any Grantor in favor of Lender pursuant to this
Security Agreement, and (ii) in connection with any other Permitted
Encumbrances.

         (c) This Security Agreement is effective to create a valid and
continuing Lien on and, upon the filing of the appropriate financing statements
listed on Schedule I hereto, a perfected Lien in favor of Lender on the
Collateral with respect to which a Lien may be perfected by filing pursuant to
the Code. Such Lien is prior to all other Liens, except Permitted Encumbrances
that would be prior to Liens in favor of Lender as a matter of law, and is
enforceable as such as against any and all creditors of and purchasers from any
Grantor (other than purchasers and lessees of Inventory in the ordinary course
of business). All action by any Grantor necessary or desirable to protect and
perfect such Lien on each item of the Collateral has been duly taken.

         (d) Schedule II hereto lists all Instruments, Letter of Credit Rights
and Chattel Paper of each Grantor. All actions by any Grantor necessary or
desirable to protect and perfect the Lien of Lender on each item set forth on
Schedule II (including the delivery of all originals thereof to Lender and the
legending of all Chattel Paper as required by Section 5(b) hereof) has been duly
taken. The Lien of Lender on the Collateral listed on Schedule II hereto is
prior to all other Liens, except Permitted Encumbrances that would be prior to
the Liens in favor of Lender as a matter of law, and is enforceable as such
against any and all creditors of and purchasers from any Grantor.

         (e) Each Grantor's name as it appears in official filings in the state
of its incorporation or other organization, the type of entity of each Grantor
(including corporation, partnership, limited partnership or limited liability
company), organizational identification number issued by each Grantor's state of
incorporation or organization or a statement that no such number has been
issued, each Grantor's state of organization or incorporation, the location of
each Grantor's chief executive office, principal place of business, offices, all
warehouses and premises where Collateral is stored or located, and the locations
of its books and records concerning the Collateral are set forth on Schedule III
hereto. Each Grantor has only one state of incorporation or organization.

                                       9
<PAGE>

         (f) With respect to the Accounts (i) they represent bona fide sales of
Inventory or rendering of services to Account Debtors in the ordinary course of
each Grantor's business and are not evidenced by a judgment, Instrument or
Chattel Paper; (ii) there are no setoffs, claims or disputes existing or
asserted with respect thereto and no Grantor has made any agreement with any
Account Debtor for any extension of time for the payment thereof, any compromise
or settlement for less than the full amount thereof, any release of any Account
Debtor from liability therefor, or any deduction therefrom except a discount or
allowance allowed by such Grantor in the ordinary course of its business for
prompt payment and disclosed to Lender; (iii) to each Grantor's knowledge, there
are no facts, events or occurrences which in any way impair the validity or
enforceability thereof or could reasonably be expected to reduce the amount
payable thereunder as shown on any Grantor's books and records and any invoices,
statements and Collateral Reports delivered to Lender with respect thereto; (iv)
no Grantor has received any notice of proceedings or actions which are
threatened or pending against any Account Debtor which might result in any
adverse change in such Account Debtor's financial condition; and (v) no Grantor
has knowledge that any Account Debtor is unable generally to pay its debts as
they become due. Further with respect to the Accounts (x) the amounts shown on
all invoices, statements and Collateral Reports which may be delivered to the
Lender with respect thereto are actually and absolutely owing to such Grantor as
indicated thereon and are not in any way contingent; (y) to each Grantor's
knowledge, all Account Debtors have the capacity to contract.

         (g) With respect to any Inventory scheduled or listed on the most
recent Collateral Report delivered to Lender pursuant to the terms of this
Security Agreement, (i) such Inventory is located at one of the applicable
Grantor's locations set forth on Schedule III hereto, (ii) no Inventory is now,
or shall at any time or times hereafter be stored at any other location without
Lender's prior consent, and if Lender gives such consent, each applicable
Grantor will concurrently therewith obtain, to the extent required by Lender,
bailee, landlord and mortgagee agreements, (iii) the applicable Grantor has
good, indefeasible and merchantable title to such Inventory and such Inventory
is not subject to any Lien or security interest or document whatsoever except
for the Lien granted to Lender and except for Permitted Encumbrances, (iv)
except as specifically disclosed in the most recent Collateral Report delivered
to Lender, such Inventory is good and merchantable quality, free from any
defects, (v) such Inventory is not subject to any licensing, Patent, royalty,
Trademark, trade name or Copyright agreements with any third parties which would
require any consent of any third party upon sale or disposition of that
Inventory or the payment of any monies to any third party as a precondition of
such sale or other disposition, and (vi) the completion of manufacture, sale or
other disposition of such Inventory by Lender following an Event of Default
shall not require the consent of any Person and shall not constitute a breach or
default under any contract or agreement to which any Grantor is a party or to
which such property is subject.

                                       10
<PAGE>

         (h) No Grantor has any interest in, or title to, any Patent, Trademark
or Copyright except as set forth in Schedule IV hereto. This Security Agreement
is effective to create a valid and continuing Lien on and, upon filing of the
appropriate documents with the United States Copyright Office and filing of the
appropriate documents with the United States Patent and Trademark Office,
perfected Liens in favor of Lender on each Grantor' s Patents, Trademarks and
Copyrights and such perfected Liens are enforceable as such as against any and
all creditors of and purchasers from any Grantor. Upon filing of the appropriate
documents with the United States Copyright Office and filing of the appropriate
documents with the United States Patent and Trademark Office and the filing of
appropriate financing statements listed on Schedule I hereto, all action
necessary or desirable to protect and perfect Lender's Lien on each Grantor's
Patents, Trademarks or Copyrights shall have been duly taken.

         (i) All motor vehicles owned by each Grantor are listed on Schedule V
hereto, by model, model year and vehicle identification number ("VIN"). Each
Grantor shall deliver to Lender motor vehicle title certificates for all motor
vehicles from time to time owned by it and shall cause those title certificates
to be filed (with Lender's lien noted thereon) in the appropriate state motor
vehicle filing office.

         5. COVENANTS. Each Grantor covenants and agrees with Lender, that from
and after the date of this Security Agreement and until the Termination Date:

         (a) Further Assurances: Pledge of Instruments; Chattel Paper.
             ---------------------------------------------------------

            (i) At any time and from time to time, upon the written request of
     Lender and at the sole expense of Grantors, each Grantor shall promptly and
     duly execute and deliver any and all such further instruments and documents
     and take such further actions as Lender may deem desirable to obtain the
     full benefits of this Security Agreement and of the rights and powers
     herein granted, including (A) using its commercially reasonable efforts to
     secure all consents and approvals necessary or appropriate for the
     assignment to or for the benefit of Lender of any License or Contract held
     by such Grantor and to enforce the security interests granted hereunder;
     and (B) filing any financing or continuation statements under the Code with
     respect to the Liens granted hereunder or under the Loan Agreement as to
     those jurisdictions that are not Uniform Commercial Code Jurisdictions.

            (ii) Unless Lender shall otherwise consent in writing (which consent
     may be revoked), each Grantor shall deliver to Lender all Collateral
     consisting of negotiable Documents, certificated securities, Chattel Paper
     and Instruments (in each case, accompanied by stock powers, allonges or
     other instruments of transfer executed in blank) promptly after such
     Grantor receives the same.

                                       11
<PAGE>

            (iii) Each Grantor shall, if required by Lender, obtain or use its
     commercially reasonable efforts to obtain waivers or subordinations of
     Liens from landlords and mortgagees, and each Grantor shall in all
     instances obtain signed acknowledgements of Lender's Liens from bailees
     having possession of any Grantor's Goods that they hold for the benefit of
     Lender.

            (iv) Each Grantor that is or becomes the beneficiary of a letter of
     credit shall promptly, and in any event within two (2) Business Days after
     becoming a beneficiary, notify Lender thereof and enter into a tri-party
     agreement with Lender and the issuer and/or confirmation bank with respect
     to Letter of Credit Rights assigning such Letter of Credit Rights to Lender
     and directing all payments thereunder to Lender, all in form and substance
     reasonably satisfactory to Lender.

            (v) Each Grantor shall take all steps necessary to grant the Lender
     control of all electronic chattel paper in accordance with the Code and all
     "transferable records" as defined in each of the Uniform Electronic
     Transactions Act and the Electronic Signatures in Global and National
     Commerce Act.

            (vi) Each Grantor hereby irrevocably authorizes the Lender at any
     time and from time to time to file in any filing office in any Uniform
     Commercial Code Jurisdiction any initial financing statements and
     amendments thereto that (a) indicate the Collateral (i) as all assets of
     such Grantor or words of similar effect, regardless of whether any
     particular asset comprised in the Collateral falls within the scope of
     Article 9 of the Code of such jurisdiction, or (ii) as being of an equal or
     lesser scope or with greater detail, and (b) contain any other information
     required by part 5 of Article 9 of the Code for the sufficiency or filing
     office acceptance of any financing statement or amendment, including (i)
     whether such Grantor is an organization, the type of organization and any
     organization identification number issued to such Grantor, and (ii) in the
     case of a financing statement filed as a fixture filing or indicating
     Collateral as as-extracted collateral or timber to be cut, a sufficient
     description of real property to which the Collateral relates. Each Grantor
     agrees to furnish any such information to the Lender promptly upon request.
     Each Grantor also ratifies its authorization for the Lender to have filed
     in any Uniform Commercial Code Jurisdiction any initial financing
     statements or amendments thereto if filed prior to the date hereof.

            (vii) Each Grantor shall promptly, and in any event within two (2)
     Business Days after the same is acquired by it, notify Lender of any
     commercial tort claim (as defined in the Code) acquired by it and unless
     otherwise consented by Lender, such Grantor shall enter into a supplement
     to this Security Agreement, granting to Lender a Lien in such commercial
     tort claim.

         (b) Maintenance of Records. Grantors shall keep and maintain, at their
own cost and expense, satisfactory and complete records of the Collateral,
including

                                       12
<PAGE>

a record of any and all payments received and any and all credits granted with
respect to the Collateral and all other dealings with the Collateral. Grantors
shall mark their books and records pertaining to the Collateral to evidence this
Security Agreement and the Liens granted hereby. If any Grantor retains
possession of any Chattel Paper or Instruments with Lender's consent, such
Chattel Paper and Instruments shall be marked with the following legend: "This
writing and the obligations evidenced or secured hereby are subject to the
security interest of GNB Bank Panama S.A., as Lender".

         (c) Covenants Regarding Patent, Trademark and Copyright Collateral.
             ---------------------------------------------------------------

            (i) Grantors shall notify Lender immediately if they know or have
     reason to know that any application or registration relating to any Patent,
     Trademark or Copyright (now or hereafter existing) may become abandoned or
     dedicated, or of any adverse determination or development (including the
     institution of, or any such determination or development in, any proceeding
     in the United States Patent and Trademark Office, the United States
     Copyright Office or any court) regarding any Grantor's ownership of any
     Patent, Trademark or Copyright, its right to register the same, or to keep
     and maintain the same.

            (ii) In no event shall any Grantor, either itself or through any
     agent, employee, licensee or designee, file an application for the
     registration of any Patent, Trademark or Copyright with the United States
     Patent and Trademark Office, the United States Copyright Office or any
     similar office or agency without giving Lender prior written notice
     thereof.

            (iii) Grantors shall take all actions necessary or requested by
     Lender to maintain and pursue each application, to obtain the relevant
     registration and to maintain the registration of each of the Patents,
     Trademarks and Copyrights (now or hereafter existing), including the filing
     of applications for renewal, affidavits of use, affidavits of
     noncontestability and opposition and interference and cancellation
     proceedings.

            (iv) In the event that any of the Patent, Trademark or Copyright
     Collateral is infringed upon, or misappropriated or diluted by a third
     party, such Grantor shall comply with Section 5(a)(vii) of this Security
     Agreement. Such Grantor shall, unless such Grantor shall reasonably
     determine that such Patent, Trademark or Copyright Collateral is in no way
     material to the conduct of its business or operations, promptly sue for
     infringement, misappropriation or dilution and to recover any and all
     damages for such infringement, misappropriation or dilution, and shall take
     such other actions as Lender shall deem appropriate under the circumstances
     to protect such Patent, Trademark or Copyright Collateral.

         (d) Indemnification. In any suit, proceeding or action brought by
Lender relating to any Collateral for any sum owing with respect thereto or to
enforce

                                       13
<PAGE>

any rights or claims with respect thereto, each Grantor will save, indemnify and
keep Lender harmless from and against all expense (including reasonable
attorneys' fees and expenses), loss or damage suffered by reason of any defense,
setoff, counterclaim, recoupment or reduction of liability whatsoever of the
Account Debtor or other Person obligated on the Collateral, arising out of a
breach by any Grantor of any obligation thereunder or arising out of any other
agreement, indebtedness or liability at any time owing to, or in favor of, such
obligor or its successors from such Grantor, except to the extent such expense,
loss, or damage is attributable solely to the gross negligence or willful
misconduct of Lender as finally determined by a court of competent jurisdiction.
All such obligations of Grantors shall be and remain enforceable against and
only against Grantors and shall not be enforceable against Lender.

         (e) Compliance with Terms of Accounts, etc. In all material respects,
each Grantor will perform and comply with all obligations in respect of the
Collateral and all other agreements to which it is a party or by which it is
bound relating to the Collateral.

         (f) Limitation on Liens on Collateral. No Grantor will create, permit
or suffer to exist, and each Grantor will defend the Collateral against, and
take such other action as is necessary to remove, any Lien on the Collateral
except Permitted Encumbrances, and will defend the right, title and interest of
Lender in and to any of such Grantor's rights under the Collateral against the
claims and demands of all Persons whomsoever.

         (g) Limitations on Disposition. No Grantor will sell, license, lease,
transfer or otherwise dispose of any of the Collateral, or attempt or contract
to do so except as permitted herein or in the Loan Agreement.

         (h) Further Identification of Collateral. Grantors will, if so
requested by Lender, furnish to Lender, as often as Lender requests, statements
and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as Lender may reasonably request, all
in such detail as Lender may specify.

         (i) Notices. Grantors will advise Lender promptly, in reasonable
detail, (i) of any Lien (other than Permitted Encumbrances) or claim made or
asserted against any of the Collateral, and (ii) of the occurrence of any other
event which would have a material adverse effect on the aggregate value of the
Collateral or on the Liens created hereunder.

         (j) Good Standing Certificates. Not less frequently than once during
each calendar semester, unless Lender shall otherwise consent, provide to Lender
a certificate of good standing from its state of incorporation or organization.

         (k) No Reincorporation. Without limiting the negative covenants
provided under the Loan Agreement, no Grantor shall reincorporate or reorganize
itself

                                       14
<PAGE>

under the laws of any jurisdiction other than the jurisdiction in which it is
incorporated or organized as of the date hereof without the prior written
consent of Lender.

         (l) Terminations; Amendments Not Authorized. Each Grantor acknowledges
that it is not authorized to file any financing statement or amendment or
termination statement with respect to any financing statement without the prior
written consent of Lender and agrees that it will not do so without the prior
written consent of Lender, subject to such Grantor's rights under Section
9-509(d)(2) of the Code.

         6. LENDER'S APPOINTMENT AS ATTORNEY-IN-FACT.
            -----------------------------------------

         On the date hereof each Grantor shall execute and deliver to Lender a
power of attorney (the "Power of Attorney") substantially in the form attached
hereto as Exhibit A. The power of attorney granted pursuant to the Power of
Attorney is a power coupled with an interest and shall be irrevocable until the
Secured Obligations have been paid in full. The powers conferred on Lender under
the Power of Attorney are solely to protect Lender's interests in the Collateral
and shall not impose any duty upon Lender to exercise any such powers. Lender
agrees that (a) except for the powers granted in clause (h) of the Power of
Attorney, it shall not exercise any power or authority granted under the Power
of Attorney unless an Event of Default has occurred and is continuing, and (b)
Lender shall account for any moneys received by Lender in respect of any
foreclosure on or disposition of Collateral pursuant to the Power of Attorney
provided that Lender shall not have any duty as to any Collateral, and Lender
shall be accountable only for amounts that it actually receives as a result of
the exercise of such powers. NEITHER LENDER NOR ITS AFFILIATES, OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO ANY
GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE,
EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT
JURISDICTION, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL
DAMAGES.

         7. REMEDIES: RIGHTS UPON DEFAULT.
            ------------------------------

         (a) In addition to all other rights and remedies granted to it under
this Security Agreement and the Loan Agreement and under any other instrument or
agreement securing, evidencing or relating to any of the Secured Obligations, if
any Event of Default shall have occurred and be continuing, Lender may exercise
all rights and remedies of a secured party under the Code. Without limiting the
generality of the foregoing, each Grantor expressly agrees that in any such
event Lender, without demand of performance or other demand, advertisement or
notice of any kind (except the notice specified below of time and place of
public or private sale) to or upon such Grantor or any other Person (all and
each of which demands, advertisements and notices are hereby expressly waived to
the maximum extent permitted by the Code and other applicable

                                       15
<PAGE>

law), may forthwith enter upon the premises of such Grantor where any Collateral
is located through self-help, without judicial process, without first obtaining
a final judgment or giving such Grantor or any other Person notice and
opportunity for a hearing on Lender's claim or action and may collect, receive,
assemble, process, appropriate and realize upon the Collateral, or any part
thereof, and may forthwith sell, lease, license, assign, give an option or
options to purchase, or sell or otherwise dispose of and deliver said Collateral
(or contract to do so), or any part thereof, in one or more parcels at a public
or private sale or sales, at any exchange at such prices as it may deem
acceptable, for cash or on credit or for future delivery without assumption of
any credit risk. Lender shall have the right upon any such public sale or sales
and, to the extent permitted by law, upon any such private sale or sales, to
purchase for the benefit Lenders, the whole or any part of said Collateral so
sold, free of any right or equity of redemption, which equity of redemption each
Grantor hereby specifically waives and releases. Such sales may be adjourned and
continued from time to time with or without notice. Lender shall have the right
to conduct such sales on any Grantor's premises or elsewhere and shall have the
right to use any Grantor's premises without charge for such time or times as
Lender deems necessary or advisable.

         If any Event of Default shall have occurred and be continued, each
Grantor further agrees, at Lender's request, to assemble the Collateral and make
it available to Lender at a place or places designated by Lender which are
reasonably convenient to Lender and such Grantor, whether at such Grantor's
premises or elsewhere. Until Lender is able to effect a sale, lease, or other
disposition of Collateral, Lender shall have the right to hold or use
Collateral, or any part thereof, to the extent that it deems appropriate for the
purpose of preserving Collateral or its value or for any other purpose deemed
appropriate by Lender. Lender shall have no obligation to any Grantor to
maintain or preserve the rights of such Grantor as against third parties with
respect to Collateral while Collateral is in the possession of Lender. Lender
may, if it so elects, seek the appointment of a receiver or keeper to take
possession of Collateral and to enforce any of Lender's remedies (for the
benefit of Lender), with respect to such appointment without prior notice or
hearing as to such appointment. Lender shall apply the net proceeds of any such
collection, recovery, receipt, appropriation, realization or sale to the Secured
Obligations, and only after so paying over such net proceeds, and after the
payment by Lender of any other amount required by any provision of law, need
Lender account for the surplus, if any, to any Grantor. To the maximum extent
permitted by applicable law, each Grantor waives all claims, damages, and
demands against Lender arising out of the repossession, retention or sale of the
Collateral except such as arise solely out of the gross negligence or willful
misconduct of Lender as finally determined by a court of competent jurisdiction.
Each Grantor agrees that ten (10) days prior notice by Lender of the time and
place of any public sale or of the time after which a private sale may take
place is reasonable notification of such matters. Grantors shall remain liable
for any deficiency if the proceeds of any sale or disposition of the Collateral
are insufficient to pay all Secured Obligations, including any attorneys' fees
and other expenses incurred by Lender to collect such deficiency.

                                       16
<PAGE>

         (b) Except as otherwise specifically provided herein, each Grantor
hereby waives presentment, demand, protest or any notice (to the maximum extent
permitted by applicable law) of any kind in connection with this Security
Agreement or any Collateral.

         (c) To the extent that applicable law imposes duties on the Lender to
exercise remedies in a commercially reasonable manner, each Grantor acknowledges
and agrees that it is not commercially unreasonable for the Lender (i) to fail
to incur expenses reasonably deemed significant by the Lender to prepare
Collateral for disposition or otherwise to complete raw material or work in
process into finished goods or other finished products for disposition, (ii) to
fail to obtain third party consents for access to Collateral to be disposed of,
or to obtain or, if not required by other law, to fail to obtain governmental or
third party consents for the collection or disposition of Collateral to be
collected or disposed of, (iii) to fail to exercise collection remedies against
Account Debtors or other Persons obligated on Collateral or to remove Liens on
or any adverse claims against Collateral, (iv) to exercise collection remedies
against Account Debtors and other Persons obligated on Collateral directly or
through the use of collection agencies and other collection specialists, (v) to
advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature, (vi) to
contact other Persons, whether or not in the same business as the Grantor, for
expressions of interest in acquiring all or any portion of such Collateral,
(vii) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature, (viii)
to dispose of Collateral by utilizing internet sites that provide for the
auction of assets of the types included in the Collateral or that have the
reasonable capacity of doing so, or that match buyers and sellers of assets,
(ix) to dispose of assets in wholesale rather than retail markets, (x) to
disclaim disposition warranties, such as title, possession or quiet enjoyment,
(xi) to purchase insurance or credit enhancements to insure the Lender against
risks of loss, collection or disposition of Collateral or to provide to the
Lender a guaranteed return from the collection or disposition of Collateral, or
(xii) to the extent deemed appropriate by the Lender, to obtain the services of
other brokers, investment bankers, consultants and other professionals to assist
the Lender in the collection or disposition of any of the Collateral. Each
Grantor acknowledges that the purpose of this Section 7(c) is to provide
non-exhaustive indications of what actions or omissions by the Lender would not
be commercially unreasonable in the Lender's exercise of remedies against the
Collateral and that other actions or omissions by the Lender shall not be deemed
commercially unreasonable solely on account of not being indicated in this
Section 7(c). Without limitation upon the foregoing, nothing contained in this
Section 7(c) shall be construed to grant any rights to any Grantor or to impose
any duties on Lender that would not have been granted or imposed by this
Security Agreement or by applicable law in the absence of this Section 7(c).

         (d) Lender shall not be required to make any demand upon, or pursue or
exhaust any of their rights or remedies against, any Grantor, any other obligor,

                                       17
<PAGE>

guarantor, pledgor or any other Person with respect to the payment of the
Secured Obligations or to pursue or exhaust any of their rights or remedies with
respect to any Collateral therefor or any direct or indirect guarantee thereof.
Lenders shall not be required to marshal the Collateral or any guarantee of the
Secured Obligations or to resort to the Collateral or any such guarantee in any
particular order, and all of its and their rights hereunder or under the Loan
Agreement shall be cumulative. To the extent it may lawfully do so, each Grantor
absolutely and irrevocably waives and relinquishes the benefit and advantage of,
and covenants not to assert against Lender, any valuation, stay, appraisement,
extension, redemption or similar laws and any and all rights or defenses it may
have as a surety now or hereafter existing which, but for this provision, might
be applicable to the sale of any Collateral made under the judgment, order or
decree of any court, or privately under the power of sale conferred by this
Security Agreement, or otherwise.

         8. GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY COLLATERAL. For the
purpose of enabling Lender to exercise rights and remedies under Section 7
hereof (including, without limiting the terms of Section 7 hereof, in order to
take possession of, hold, preserve, process, assemble, prepare for sale, market
for sale, sell or otherwise dispose of Collateral) at such time as Lender shall
be lawfully entitled to exercise such rights and remedies, each Grantor hereby
grants to Lender an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to such Grantor) to use, license or
sublicense any Intellectual Property now owned or hereafter acquired by such
Grantor, and wherever the same may be located, and including in such license
access to all media in which any of the licensed items may be recorded or stored
and to all computer software and programs used for the compilation or printout
thereof.

         9. LIMITATION ON LENDER'S DUTY IN RESPECT OF COLLATERAL. Lender shall
use reasonable care with respect to the Collateral in its possession or under
its control. Lender shall not have any other duty as to any Collateral in its
possession or control or in the possession or control of any agent or nominee of
Lender, or any income thereon or as to the preservation of rights against prior
parties or any other rights pertaining thereto.

         10. REINSTATEMENT. This Security Agreement shall remain in full force
and effect and continue to be effective should any petition be filed by or
against any Grantor for liquidation or reorganization, should any Grantor become
insolvent or make an assignment for the benefit of any creditor or creditors or
should a receiver or trustee be appointed for all or any significant part of any
Grantor's assets, and shall continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Secured Obligations,
or any part thereof, is, pursuant to applicable law, rescinded or reduced in
amount, or must otherwise be restored or returned by any obligee of the Secured
Obligations, whether as a "voidable preference," "fraudulent conveyance," or
otherwise, all as though such payment or performance had not been made. In the
event

                                       18
<PAGE>

that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Secured Obligations shall be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

         11. NOTICES. Except as otherwise provided herein, whenever it is
provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the
parties by any other party, or whenever any of the parties desires to give and
serve upon any other party any communication with respect to this Security
Agreement, each such notice, demand, request, consent, approval, declaration or
other communication shall be in writing and shall be given in the manner, and
deemed received, as provided for in the Loan Agreement.

         12. SEVERABILITY. Whenever possible, each provision of this Security
Agreement shall be interpreted in a manner as to be effective and valid under
applicable law, but if any provision of this Security Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity without invalidating
the remainder of such provision or the remaining provisions of this Security
Agreement. This Security Agreement is to be read, construed and applied together
with the Loan Agreement which, taken together, set forth the complete
understanding and agreement of Lender and Grantors with respect to the matters
referred to herein and therein.

         13. NO WAIVER; CUMULATIVE REMEDIES. Lender shall not by any act, delay,
omission or otherwise be deemed to have waived any of its rights or remedies
hereunder, and no waiver shall be valid unless in writing, signed by Lender and
then only to the extent therein set forth. A waiver by Lender of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which Lender would otherwise have had on any future occasion. No
failure to exercise nor any delay in exercising on the part of Lender, any
right, power or privilege hereunder, shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or privilege hereunder
preclude any other or future exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies hereunder provided are
cumulative and may be exercised singly or concurrently, and are not exclusive of
any rights and remedies provided by law. None of the terms or provisions of this
Security Agreement may be waived, altered, modified or amended except by an
instrument in writing, duly executed by Lender and Grantors.

         14. LIMITATION BY LAW. All rights, remedies and powers provided in this
Security Agreement may be exercised only to the extent that the exercise thereof
does not violate any applicable provision of law, and all the provisions of this
Security Agreement are intended to be subject to all applicable mandatory
provisions of law that may be controlling and to be limited to the extent
necessary so that they shall not

                                       19
<PAGE>

render this Security Agreement invalid, unenforceable, in whole or in part, or
not entitled to be recorded, registered or filed under the provisions of any
applicable law.

         15. TERMINATION OF THIS SECURITY AGREEMENT. Subject to Section 10
hereof, this Security Agreement shall terminate upon payment in full of the
secured Obligations.

         16. SUCCESSORS AND ASSIGNS. This Security Agreement and all obligations
of Grantors hereunder shall be binding upon the successors and assigns of each
Grantor (including any debtor-in-possession on behalf of such Grantor) and
shall, together with the rights and remedies of Lender, hereunder, inure to the
benefit of Lender, all future holders of any instrument evidencing any of the
Secured Obligations and their respective successors and assigns. No sales of
participations, other sales, assignments, transfers or other dispositions of any
agreement governing or instrument evidencing the Secured Obligations or any
portion thereof or interest therein shall in any manner affect the Lien granted
to Lender hereunder. No Grantor may assign, sell, hypothecate or otherwise
transfer any interest in or obligation under this Security Agreement.

         17. COUNTERPARTS. This Security Agreement may be executed in any number
of separate counterparts, each of which shall collectively and separately
constitute one agreement.

         18. GOVERNING LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS SECURITY AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE,
AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH GRANTOR HEREBY
CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY,
CITY OF NEW YORK, STATE OF NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR
AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN GRANTORS AND LENDER PERTAINING TO
THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER
ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS, PROVIDED, THAT LENDERS AND GRANTORS ACKNOWLEDGE THAT ANY APPEALS FROM
THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY,
AND, PROVIDED, FURTHER, NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO
PRECLUDE LENDER FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
JURISDICTION TO REALIZE ON THE COLLATERAL

                                       20
<PAGE>

OR ANY OTHER SECURITY FOR THE SECURED OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR
OTHER COURT ORDER IN FAVOR OF LENDER. EACH GRANTOR EXPRESSLY SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
SUCH COURT, AND EACH GRANTOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED
UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND
HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT. EACH GRANTOR HEREBY WAIVES PERSONAL SERVICE OF THE
SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND
AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH GRANTOR AT THE ADDRESS SET FORTH
ON SECTION 8.1 OF THE LOAN AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED
COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER
DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.

         19. WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES
ARISING HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG LENDER AND GRANTORS
ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED IN CONNECTION WITH, THIS SECURITY AGREEMENT OR THE LOAN AGREEMENT.

         20. SECTION TITLES. The Section titles contained in this Security
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

         21. NO STRICT CONSTRUCTION. The parties hereto have participated
jointly in the negotiation and drafting of this Security Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Security
Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Security Agreement.

                                       21
<PAGE>

         22. ADVICE OF COUNSEL. Each of the parties represents to each other
party hereto that it has discussed this Security Agreement and, specifically,
the provisions of Section 18 and Section 19, with its counsel.

         23. BENEFIT OF LENDER. All Liens granted or contemplated hereby shall
be for the benefit of Lender, and all proceeds or payments realized from
Collateral in accordance herewith shall be applied to the Secured Obligations.

                                       22
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto has caused this Security
Agreement to be executed and delivered by its duly authorized officer as of the
date first set forth above.

                                   PHONE1, INC.

                                   By:  /s/ Syed Naqvi
                                   Name:  Syed Naqvi
                                   Title:  Chief Financial Officer

                                   PHONE1GLOBALWIDE, INC.

                                   By:  /s/ Syed Naqvi
                                   Name:  Syed Naqvi
                                   Title:  Chief Financial Officer

                                   GLOBALTRON COMMUNICATIONS CORPORATION

                                   By:  /s/ Syed Naqvi
                                   Name:  Syed Naqvi
                                   Title:  Chief Financial Officer

                                   GNB BANK PANAMA S.A.

                                   By:  /s/ Camilo Verastegui
                                   Name:  Camilo Verastegui
                                   Title:  General Manager

                                       23
<PAGE>

                                   SCHEDULE I
                                       TO
                               SECURITY AGREEMENT
                               ------------------

                              FILING JURISDICTIONS

Offices and/or switches are located in:

New York
Florida
Costa Rica
Brazil

Headsets, advertising materials and eproms, and in certain cases, circuit
boards, are located in or proximate to phones placed by carriers with whom we do
business. These headsets, advertising materials and/or eproms are currently
placed in:

Arizona
California
Florida
Georgia
Illinois
Kentucky
Maryland
Massachusetts
Michigan
New York
North Carolina
Ohio
Utah
South Carolina
Tennessee
Texas
Virginia
Washington
West Virginia
Wisconsin

<PAGE>

                                   SCHEDULE II
                                       TO
                               SECURITY AGREEMENT
                               ------------------

             INSTRUMENTS, CHATTEL PAPER AND LETTER OF CREDIT RIGHTS

Instruments
------------

         Certificate of Deposit owned by Phone1 in the approximate amount of
$13,200, maintained on deposit with Eagle National Bank.

Chattel Paper
-------------

         None.

Letters of Credit Rights
------------------------

         None.

<PAGE>
                                  SCHEDULE III
                                       TO
                               SECURITY AGREEMENT
                               ------------------

  SCHEDULE OF OFFICES, LOCATIONSOF COLLATERAL AND RECORDS CONCERNING COLLATERAL

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
OFFICIAL NAME OF GRANTOR  TYPE OF     ORGANIZATIONAL      STATE OF        CHIEF OFFICE AND          CORPORATE OFFICE      WAREHOUSES
                           ENTITY        ID NUMBER      INCORPORATION   PRINCIPAL PLACE OF
                                                                              BUSINESS
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>        <C>                <C>           <C>                       <C>                       <C>
Phone1, Inc.              Corp.      Unknown            Florida       100 N. Biscayne Blvd.,    100 N. Biscayne Blvd.,    None
                                                                      Suite 2500, Miami, FL     Suite 2500, Miami, FL
------------------------------------------------------------------------------------------------------------------------------------
Phone1Globalwide, Inc.    Corp.      Unknown            Delaware      100 N. Biscayne Blvd.,    100 N. Biscayne Blvd.,    None
                                                                      Suite 2500, Miami, FL     Suite 2500, Miami, FL
------------------------------------------------------------------------------------------------------------------------------------
Globaltron                Corp.      Unknown            Delaware      100 N. Biscayne Blvd.,    100 N. Biscayne Blvd.,    None
Communications                                                        Suite 2500, Miami, FL     Suite 2500, Miami, FL
Corporation

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

[RESTUB]

<CAPTION>
-------------------------------------------
 OTHER PREMISES AT     LOCATION OF RECORDS
  WHICH COLLATERAL    CONCERNING COLLATERAL
       STORED
-------------------------------------------
 <S>                 <C>
 *                   100 N. Biscayne Blvd.,
                     Suite 2500, Miami, FL
-------------------------------------------
 None                100 N. Biscayne Blvd.,
                     Suite 2500, Miami, FL
-------------------------------------------
 60 Hudson Street,   100 N. Biscayne Blvd.,
 New York, NY        Suite 2500, Miami, FL

 Brazil

 Costa Rica
-------------------------------------------
</TABLE>

*        Switches, headsets, advertising materials and/or eproms, and in certain
         cases, circuit boards, are located in or proximate to phones placed by
         carriers with whom we do business. These headsets, advertising
         materials and eproms are currently placed in:

         Arizona           California       Florida               Costa Rica
         Kentucky          Maryland         Massachusetts         Brazil
         Michigan          New York         Ohio
         Utah              West Virginia    Washington
         Illinois          Virginia         South Carolina
         Wisconsin         Georgia          Tennessee
         Texas             North Carolina

<PAGE>

                                   SCHEDULE IV
                                       TO
                               SECURITY AGREEMENT
                               ------------------

                       PATENTS, TRADEMARKS AND COPYRIGHTS

Patents
-------

"provisional" U.S. Patent Application Serial No. 60/367,539 that we filed on
behalf of Phone1, Inc. on March 25, 2002

Trademarks
----------

1.       Phone 1 Globalwide, Inc.

         None.

2.       Phone1, Inc.

         U.S. Registration No. 2,602,991 for PHONE1
         U.S. Application No. 76/251,479 for Phone1 & Design
         U.S. Application No. 78/097,107 for PHONE1SMART

3.       Globaltron Communications Corporation

         U.S. Registration No. 2,539,103 for GLOBALTRON
         U.S. Registration No. 2,539,102 for GLOBALTRON COMMUNICATIONS
         CORPORATION & Design

Copyrights
----------

<PAGE>

                                   SCHEDULE V
                                       TO
                               SECURITY AGREEMENT
                               ------------------

                                    VEHICLES

         None.

<PAGE>

                                    EXHIBIT A
                                    ---------

                                POWER OF ATTORNEY
                                -----------------

                  This Power of Attorney is executed and delivered by
______________________, a _____________________ corporation ("Grantor") to GNB
Bank Panama S.A., a bank organized under the laws of the Republic of Panama
(hereinafter referred to as "Attorney"), as Lender, under a Loan Agreement and a
Security Agreement, both dated as of September 30, 2002 (collectively, the "Loan
Documents"). No person to whom this Power of Attorney is presented, as authority
for Attorney to take any action or actions contemplated hereby, shall be
required (including in respect of clauses (d) and (e) in the next succeeding
paragraph) to inquire into or seek confirmation from Grantor as to the authority
of Attorney to take any action described below, or as to the existence of or
fulfillment of any condition to this Power of Attorney, which is intended to
grant to Attorney unconditionally the authority to take and perform the actions
contemplated herein, and Grantor irrevocable waives any right to commence any
suit or action, in law or equity, against any person or entity which acts in
reliance upon or acknowledges the authority granted under this Power of
Attorney. The power of attorney granted hereby is coupled with an interest, and
may not be revoked or canceled by Grantor without Attorney's written consent.

                  Grantor hereby irrevocably constitutes and appoints Attorney
(and all officers, employees or agents designated by Attorney), with full power
of substitution, as Grantor's true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of Grantor and in the
name of Grantor or in its own name, from time to time in Attorney's discretion,
to take any and all appropriate action and to execute and deliver any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of the Loan Documents and, without limiting the generality of the
foregoing, Grantor hereby grants to Attorney the power and right, on behalf of
Grantor, without notice to or assent by Grantor, (other than in connection with
a change of address as specified in clause (a), as to which Attorney shall use
commercially reasonable efforts to give Grantor concurrent notice thereof
provided that failure to do so will not affect Attorney's rights hereunder, and
at any time, to do the following: (a) change the mailing address of Grantor,
open a post office box on behalf of Grantor, open mail for Grantor, and ask,
demand, collect, give acquittances and receipts for, take possession of, endorse
any invoices, freight or express bills, bills of lading, storage or warehouse
receipts, drafts against debtors, assignments, verifications, and notices in
connection with any property of Grantor; (b) effect any repairs to any asset of
Grantor, or continue or obtain any insurance and pay all or any part of the
premiums therefor and costs thereof, and make, settle and adjust all claims
under such policies of insurance, and make all determinations and decisions with
respect to such policies; (c) pay or discharge any taxes, liens, security
interests, or other encumbrances levied or placed on or threatened against
Grantor or its property; (d) defend any suit, action or proceeding brought
against Grantor if Grantor does not defend such suit, action or proceeding or if

<PAGE>

Attorney believes that Grantor is not pursuing such defense in a manner that
will maximize the recovery to Attorney, and settle, compromise or adjust any
suit, action, or proceeding described above and, in connection therewith, give
such discharges or releases as Attorney may deem appropriate, provided that in
connection with the foregoing Attorney shall act in a manner consistent with the
terms of the Loan Documents to the extent explicitly covered thereby; (e) file
or prosecute any claim, litigation, suit or proceeding in any court of competent
jurisdiction or before any arbitrator, or take any other action otherwise deemed
appropriate by Attorney for the purpose of collecting any and all such moneys
due to Grantor whenever payable and to enforce any other right in respect of
Grantor's property provided, in the case of any such claim, litigation, suit or
proceeding relating to product liability insurance Attorney shall act in a
manner consistent with the terms of the Loan Documents to the extent explicitly
covered thereby; (f) cause the certified public accountants then engaged by
Grantor to prepare and deliver to Attorney at any time and from time to time,
promptly upon Attorney's request, the following reports: (1) a reconciliation of
all accounts, (2) an aging of all accounts, (3) trial balances, (4) test
verifications of such accounts as Attorney may request, and (5) the results of
each physical verification of inventory; (g) communicate in its own name with
any party to any Contract with regard to the assignment of the right, title and
interest of such Grantor in and under the Contracts and other matters relating
thereto; (h) to file such financing statements with respect to the Security
Agreement, with or without Grantor's signature, or to file a photocopy of the
Security Agreement in substitution for a financing statement, as the Lender may
deem appropriate and to execute in Grantor's name such financing statements and
amendments thereto and continuation statements which may require the Grantor's
signature; and (i) execute, in connection with any sale provided for in any Loan
Document, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral and to otherwise direct such sale or
resale, all as though Attorney were the absolute owner of the property of
Grantor for all purposes, and to do, at Attorney's option and Grantor's expense,
at any time or from time to time, all acts and other things that Attorney
reasonably deems necessary to perfect, preserve, or realize upon Grantor's
property or assets and Attorney's Liens thereon, all as fully and effectively as
Grantor might do. Grantor hereby ratifies, to the extent permitted by law, all
that said Attorney shall lawfully do or cause to be done by virtue hereof.

                  IN WITNESS WHEREOF, this Power of Attorney is executed by
Grantor, and Grantor has caused its seal to be affixed pursuant to the authority
of its board of directors this _____________ day of _____________________.

                                  [        GRANTOR                   ]
                                   -----------------------------------

                                  By:
                                      --------------------------------
                                  Name:
                                           ---------------------------
                                  Title:
                                         -----------------------------

<PAGE>

                            NOTARY PUBLIC CERTIFICATE

                  On this _____ day of ______________, 2002, [officer's name]
who is personally known to me appeared before me in his/her capacity as the
[title] of [Grantor] ("Grantor") and executed on behalf of Grantor the Power of
Attorney in favor of GNB Bank Panama S.A. to which this Certificate is attached.

                                         ---------------------------------------
                                         Notary Public

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