Document:

Exhibit 10.1

                                 LOAN AGREEMENT

                  THIS LOAN AGREEMENT (the "Agreement") is entered into as of
September 30, 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, Borrower currently owes Lender (i) the sum of
US$9,231,438.49 under an outstanding overdraft facility (the "Overdraft
Facility") signed on March 27, 2002 and amended on April 29, 2000, May 30, 2002,
June 20, 2002, July 8, 2002 and (ii) the sum of US$10,000,000 plus accrued
interest, pursuant to a loan dated October 31, 2001, guaranteed by Global, which
matures on October 31, 2002 (the "US$10 million Loan");

                  WHEREAS, the parties wish to replace the Overdraft Facility
and amend the US$10 million Loan by consolidating all the money owed by Borrower
under those two agreements into this Agreement subject to and upon the terms and
conditions herein set forth;

                  WHEREAS, Lender wishes to loan Borrower the additional amount
of US$768,561.51 (the "Additional Loan"), which will result in an overall loan
in the aggregate principal amount of US$20,000,000 (the "Loan").

                  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 first 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:
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                  "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.

                  "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 Prime 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),

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<PAGE>

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$20,000,000 loaned by
Lender to Borrower consisting of the US$10 million Loan, the replaced Overdraft
Facility and the Additional Loan.

                  "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 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 initially $.40; provided, that if
Global raises equity or debt capital at a price per share below $.40, then the
Per Share Price shall be such number below $.40.

..
                  "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.

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<PAGE>

                                   ARTICLE II
                                    THE LOAN

                  2.1      The Loan.

                  Lender does hereby grant Borrower the Loan..

                  2.2      Note.

                  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 October 31, 2002;
or (ii) in the occurrence of an Event of Default, on demand.

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<PAGE>

                  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.

                  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) November 30, 2002, if on or prior
to such date, neither Borrower nor Guarantors have received a loan for a period
of 12 months in the 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.

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<PAGE>

                  2.10     Additional Loans.

                  Lender shall have the right, at any time prior to the date the
principal of, and interest on the Loan has been paid in full, to make an
additional loan to Borrower guaranteed by Guarantors, for the sum of
US$5,000,000 under the same terms and conditions (other than funding dates) as
this Loan.

                  2.11     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.

                   2.12     Expenses.

                  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;

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<PAGE>

                  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 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.

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<PAGE>

                  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.

                  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:

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<PAGE>

                  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, 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.

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<PAGE>

                  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 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

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<PAGE>

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.

                  (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).

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<PAGE>

                  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.

                  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.

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                  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 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:

                                       13
<PAGE>

                  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.

                  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.

                                       14
<PAGE>

                  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 attached hereto as Exhibit A 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.

                                   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.

                                       15
<PAGE>

                  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 hereunder, 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.

                  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.

                                       16
<PAGE>

                  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

                  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).

                                       17
<PAGE>

                  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

                  With a copy to:

                  Steven Weinberger, Esq.
                  c/o Phone1, 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
                  Fax: (212) 969-2900

                                       18
<PAGE>

                  All such notices, requests and other communications will (i)
if delivered personally to the address as provided in this Section, 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.

                  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.

                                       19
<PAGE>

                  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 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 of such Court or the
right to object to the venue of such Court or that such Court is an inconvenient
forum.

                  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.
                                       20
<PAGE>
                  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.

                                       21
<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/ Dario Echeverry
                                    Name:   Dario Echeverry
                                    Title:  Chief Executive Officer

                                    PHONE1GLOBALWIDE, INC.

                                    By: /s/ Dario Echeverry
                                    Name:   Dario Echeverry
                                    Title:  Chief Executive Officer

                                    GLOBALTRON COMMUNICATIONS CORPORATION

                                    By: /s/ Dario Echeverry
                                    Name:   Dario Echeverry
                                    Title:  Chief Executive Officer

                                    GNB BANK PANAMA S.A.

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

                                       22
<PAGE>

                                  SCHEDULE 4.6
                TO LOAN AGREEMENT DATED AS OF SEPTEMBER 30, 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:

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

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

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

         /bullet/ 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.

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

<PAGE>

                                  SCHEDULE 4.9
                TO LOAN AGREEMENT DATED AS OF SEPTEMBER 30, 2002
                 BETWEEN PHONE1GLOBALWIDE, INC. PHONE1, INC. AND
                     GLOBALTRON COMMUNICATIONS CORPORATION

         Approximately $400,000 in property taxes has been accrued but remains
unpaid to Miami-Dade County.

<PAGE>

             EXCEPTIONS TO REPRESENTATIONS, WARRANTIES AND COVENANTS
               UNDER LOAN AGREEMENT DATED AS OF SEPTEMBER 30, 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.       Sections 4.1(iii) and 4.14
         --------------------------

              As disclosed in the Global SEC Reports, GCC and Cisco Systems
Capital Corporation ("Cisco") are parties to an Agreement dated September 30,
2001, under which GCC has granted Cisco a first priority security interest in up
to $1.5M of Cisco equipment. The $1.5M of equipment secures GCC's obligations
under a $2M promissory note, $500,000 of which remains unpaid. The Note was
originally due and payable on September 30, 2002. The due date of the Note has
been extended to October 31, 2002.

2.       Section 4.2
         -----------

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

3.       Section 4.7
         -----------

              See Schedule 4.6 to the Loan Agreement.

4.       Section 4.14
         ------------

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

5.       Sections 4.15 and 4.16
         ----------------------

              FireSign lawsuit described on Schedule 4.6 to the Loan Agreement.

6.       Section 6.1
         -----------

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

         (b)      Qualified by Lien of Cisco described in paragraph 1 hereof.
<PAGE>

7.       Section 6.4
         -----------

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

8.       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.Exhibit 10.2

                               SECURITY AGREEMENT

                  SECURITY AGREEMENT, dated as of September 30, 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
Loans;

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

                                       3
<PAGE>

                  (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

                                       4
<PAGE>

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
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

                                       5
<PAGE>

part of the Collateral by any governmental authority (or any 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>

                  3. LENDERS' RIGHTS. LIMITATIONS. LENDERS' 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 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.

                                       8
<PAGE>

                  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.

                  (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

                                       9
<PAGE>

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.

                  (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

                                       10
<PAGE>

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.

                          (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.

                                       11
<PAGE>

                          (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 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".

                                       12
<PAGE>

                  (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 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

                                       13
<PAGE>

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 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.

                                       14
<PAGE>

                  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 Lenders 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 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

                                       15
<PAGE>

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 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.

                  (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.

                                       16
<PAGE>

                  (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, guarantor, pledgor or any other Person with respect to the
payment of the Secured Obligations or to pursue or exhaust any of their rights

                                       17
<PAGE>

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 LENDERS' 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,"

                                       18
<PAGE>

"fraudulent conveyance," or otherwise, all as though such payment or performance
had not been made. In the event 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 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.

                                       19
<PAGE>

                  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, 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

                                       20
<PAGE>

COLLATERAL 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/ Dario Echeverry
                                    Name:   Dario Echeverry
                                    Title:  Chief Executive Officer

                                    PHONE1GLOBALWIDE, INC.
                                    By: /s/ Dario Echeverry
                                    Name:   Dario Echeverry
                                    Title:  Chief Executive Officer

                                    GLOBALTRON COMMUNICATIONS CORPORATION
                                    By: /s/ Dario Echeverry
                                    Name:   Dario Echeverry
                                    Title:  Chief Executive Officer

                                    GNB BANK PANAMA S.A.
                                    By: /s/ Camilo Verastegui
                                    Name:   Camilo Verastegui
                                    Title:  General Manager

                                       23
<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
<PAGE>

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
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

<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
Kentucky
Maryland
Massachusetts
Michigan
New York
Ohio
Utah
West Virginia

<PAGE>

                                   SCHEDULE II

                                       TO

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

             INSTRUMENTS, CHATTEL PAPER AND LETTER OF CREDIT RIGHTS

Instruments

         $13,500 Certificate of Deposit owned by Phone1 and maintained on
deposit with Eagle National Bank.

Chattel Paper

         None.

Letters of Credit Rights

         None.

<PAGE>

                                  SCHEDULE III

                                       TO

                               SECURITY AGREEMENT

  SCHEDULE OF OFFICES, LOCATIONS OF 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

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

[restubbed table]
<CAPTION>

------------------------- ----------  ------------------- -------------------------
OFFICIAL NAME OF GRANTOR  TYPE OF     OTHER PREMISES AT     LOCATION OF RECORDS
                           ENTITY      WHICH COLLATERAL    CONCERNING COLLATERAL
                                            STORED

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

------------------------- ----------  ------------------- -------------------------
<S>                      <C>         <C>                  <C>
Phone1, Inc.              Corp.       *                   100 N. Biscayne Blvd.,
                                                          Suite 2500, Miami, FL
------------------------- ----------  ------------------- -------------------------

------------------------- ----------  ------------------- -------------------------
Phone1Globalwide, Inc.    Corp.       None                100 N. Biscayne Blvd.,
                                                          Suite 2500, Miami, FL
------------------------- ----------  ------------------- -------------------------

------------------------- ----------  ------------------- -------------------------
Globaltron                Corp.       60 Hudson Street,   100 N. Biscayne Blvd.,
Communications                        New York, NY        Suite 2500, Miami, FL
Corporation
                                      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

<PAGE>

                                   SCHEDULE IV

                                       TO

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

                       PATENTS, TRADEMARKS AND COPYRIGHTS

Patents
-------

"Provisional" U.S. Patent Application Serial Number 60/367,539 filed on behalf
of Phone1, Inc. on March 25, 2002.

Trademarks
----------

1.      Phone1Globalwide, 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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]