Document:

Exhibit
10.24

 

THIS NOTE AND THE
COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS.  THIS NOTE AND THE COMMON STOCK
ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO STONEPATH GROUP, INC. THAT SUCH REGISTRATION
IS NOT REQUIRED.

 

SECURED CONVERTIBLE MINIMUM BORROWING NOTE

 

FOR VALUE RECEIVED, each of STONEPATH GROUP, INC., a
Delaware corporation (the “Parent”), and
the other companies listed on Exhibit A attached hereto (such other
companies together with the Parent, each a “Company”
and collectively, the “Companies”),
jointly and severally, promises to pay to LAURUS MASTER FUND, LTD., c/o M&C
Corporate Services Limited, P.O. Box 309 GT, Ugland House, South Church
Street, George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the “Holder”) or its registered assigns or successors in
interest, the sum of Ten Million Dollars ($10,000,000), or, if different, the
aggregate principal amount of all Loans (as defined in the Security Agreement
referred to below) allocated hereto, together with any accrued and unpaid
interest hereon, on August 30, 2008 (the “Maturity
Date”) if not sooner paid.

 

This Secured Convertible Minimum Borrowing Note (this “Note”) is intended to be a registered obligation within the
meaning of Treasury Regulation Section 1.871-14(c)(1)(i) and each
Company (or its agent) shall register this Note (and thereafter shall maintain
such registration) as to both principal and any stated interest.  Notwithstanding any document, instrument or
agreement relating to this Note to the contrary, transfer of this Note (or the
right to any payments of principal or stated interest thereunder) may only be
effected by (i) surrender of this Note and either the reissuance by the
Company of this Note to the new holder or the issuance by the Company of a new
instrument to the new holder, or (ii) transfer through a book entry system
maintained by the Company (or its agent), within the meaning of Treasury
Regulation Section 1.871-14(c)(1)(i)(B).

 

Capitalized terms used herein without definition shall
have the meanings ascribed to such terms in the Security Agreement among the
Companies and the Holder dated as of the date hereof (as amended, modified
and/or supplemented from time to time, the “Security
Agreement”).

 

The following terms shall apply to this Note:

 

 

ARTICLE I

CONTRACT RATE

 

1.1                                 Contract
Rate.  Subject to Sections 4.2 and
5.10, interest payable on the outstanding principal amount of this Note (the “Principal Amount”) shall accrue at a rate per annum equal to
the “prime rate” published in The Wall Street Journal from time to time
(the “Prime Rate”), plus one percent (1%)
(the “Contract Rate”).  The Contract Rate shall be increased or
decreased as the case may be for each increase or decrease in the Prime Rate in
an amount equal to such increase or decrease in the Prime Rate; each change to
be effective as of the day of the change in the Prime Rate.  Subject to Section 1.2, the Contract
Rate shall not at any time be less than an annual rate of five and one-half
percent (5.50%).  Interest shall be (i) payable
on September 1, 2005 and on the first Business Day of each consecutive
calendar month thereafter through and including the Maturity Date and on the
Maturity Date, whether by acceleration or otherwise.

 

1.2                                 Contract
Rate Adjustments and Payments.  The
Contract Rate shall be calculated on the last Business Day of each calendar
month hereafter (other than for increases or decreases in the Prime Rate which
shall be calculated and become effective in accordance with the terms of Section 1.1)
until the Maturity Date (each a “Determination Date”)
and shall be subject to adjustment as set forth herein.  If (i) the Parent shall have registered
the shares of the Common Stock underlying the conversion of this Note and each
Warrant on a registration statement declared effective by the Securities and
Exchange Commission (the “SEC”), and (ii) the
market price (the “Market Price”)
of the Common Stock as reported by Bloomberg, L.P. on the Principal Market for
the five (5) trading days immediately preceding a Determination Date
exceeds the then applicable Fixed Conversion Price by at least twenty-five
percent (25%), the Contract Rate for the succeeding calendar month shall
automatically be reduced by 200 basis points (200 b.p.) (2%) for each
incremental twenty-five percent (25%) increase in the Market Price of the
Common Stock above the then applicable Fixed Conversion Price.  Notwithstanding the foregoing (and anything
to the contrary contained herein), in no event shall the Contract Rate at any
time be less than zero percent (0%).

 

ARTICLE II

LOANS; PAYMENTS UNDER THIS NOTE

 

2.1                                 Loans.  All Loans evidenced by this Note shall be
made in accordance with the terms and provisions of the Security Agreement.

 

2.2                                 No
Effective Registration. 
Notwithstanding anything to the contrary herein, the Holder shall not be
required to accept shares of Common Stock as payment following a conversion by
the Holder if there fails to exist an effective current Registration Statement
(as defined in the Registration Rights Agreement) covering the shares of Common
Stock to be issued, or if an Event of Default hereunder exists and is
continuing, unless such requirement is otherwise waived in writing by the
Holder in whole or in part at the Holder’s option.

 

2.3                                 Optional
Redemption in Cash.  The Companies
will have the option of prepaying this Note (“Optional
Redemption”) by paying to the Holder a sum of money equal to one
hundred twenty percent (120%) of the principal amount of this Note together
with accrued 

 

2

 

but unpaid interest thereon and any and all other sums due, accrued or
payable to the Holder arising under this Note, the Security Agreement, or any
other Ancillary Agreement (the “Redemption Amount”)
outstanding on the Redemption Payment Date (as defined below).  The Company shall deliver to the Holder a
written notice of redemption (the “Notice of Redemption”)
specifying the date for such Optional Redemption (the “Redemption
Payment Date”), which date shall be seven (7) days after the
date of the Notice of Redemption (the “Redemption Period”).  A Notice of Redemption shall not be effective
with respect to any portion of this Note for which the Holder has previously
delivered a Notice of Conversion (defined below) pursuant to Section 3.1,
or for conversions elected to be made by the Holder pursuant to Section 3.1
during the Redemption Period.  The
Redemption Amount shall be determined as if such Holder’s conversion elections
had been completed immediately prior to the date of the Notice of
Redemption.  On the Redemption Payment
Date, the Redemption Amount (plus any additional interest and fees accruing on
the Notes during the Redemption Period) must be irrevocably paid in full in
immediately available funds to the Holder. 
In the event the Companies fail to pay the Redemption Amount on the
Redemption Payment Date, then such Redemption Notice shall be null and void.

 

ARTICLE III

CONVERSION RIGHTS AND FIXED CONVERSION PRICE

 

3.1                                 Optional
Conversion. Subject to the terms of this Article III, the Holder shall
have the right, but not the obligation, at any time until the Maturity Date, or
during an Event of Default (as defined in Article IV), and, subject to the
limitations set forth in Section 3.2 hereof, to convert all or any portion
of the outstanding Principal Amount and/or accrued interest and fees due and
payable into fully paid and nonassessable shares of the Common Stock at the
Fixed Conversion Price.  For purposes
hereof, subject to Section 3.6 hereof, the initial “Fixed
Conversion Price” means $1.08, which has been determined on the date
of this Note as an amount equal to 115% of the average closing price of the
Common Stock for the ten (10) trading days immediately prior to the date
of this Note but in no event greater than 120% of the closing price on the
Closing Date.  The shares of Common Stock
to be issued upon such conversion are herein referred to as the “Conversion Shares.”

 

3.2                                 Conversion
Limitation.  Notwithstanding anything
contained herein to the contrary, the Holder shall not be entitled to convert
pursuant to the terms of this Note an amount that would be convertible into
that number of Conversion Shares which would exceed the difference between (i) 4.99%
of the outstanding shares of Common Stock and (ii) the number of shares of
Common Stock beneficially owned by the Holder. 
For purposes of the immediately preceding sentence, beneficial ownership
shall be determined in accordance with Section 13(d) of the Exchange
Act and Regulation 13d-3 thereunder.  The
Conversion Shares limitation described in the first sentence of this Section 3.2
shall automatically become null and void following notice to any Company upon the
occurrence and during the continuance of an Event of Default, or upon 75 days
prior notice to the Parent, except that at no time shall the number of shares
of Common Stock beneficially owned by the Holder exceed 19.99% of the
outstanding shares of Common Stock. 
Notwithstanding anything contained herein to the contrary, the number of
shares of Common Stock issuable by the Parent and acquirable by the Holder at a
price below $0.91 per share pursuant to the terms of this Note, the Security
Agreement or any other Ancillary Agreement, shall not exceed an aggregate of
8,738,173 shares of Common Stock 

 

3

 

(subject to appropriate adjustment for stock splits, stock dividends,
or other similar recapitalizations affecting the Common Stock) (the “Maximum Common Stock Issuance”), unless the issuance of
Common Stock hereunder in excess of the Maximum Common Stock Issuance shall
first be approved by the Parent’s shareholders. 
If at any point in time and from time to time the number of shares of
Common Stock issued pursuant to the terms of this Note, the Security Agreement
or any other Ancillary Agreement, together with the number of shares of Common
Stock that would then be issuable by the Parent to the Holder in the event of a
conversion or exercise pursuant to the terms of this Note, the Security
Agreement or any other Ancillary Agreement, would exceed the Maximum Common
Stock Issuance but for this Section 3.2, the Parent shall promptly call a
shareholders meeting to consider the shareholder approval.  The Holder shall not be entitled to vote its
shares for any proposal for the issuance of shares of Common Stock in excess of
the Maximum Common Stock Issuance. 
Notwithstanding anything contained herein to the contrary, the
provisions of this Section 3.2 are irrevocable and may not be waived by
the Holder or any Company.

 

3.3                                 Mechanics
of Holder’s Conversion.  In the event
that the Holder elects to convert this Note into Common Stock, the Holder shall
give notice of such election by delivering an executed and completed notice of
conversion in substantially the form of Exhibit B hereto
(appropriately completed) (“Notice of Conversion”)
to the Parent and such Notice of Conversion shall provide a breakdown in
reasonable detail of the Principal Amount, accrued interest and fees that are
being converted.  On each Conversion Date
(as hereinafter defined) and in accordance with its Notice of Conversion, the
Holder shall make the appropriate reduction to the Principal Amount, accrued
interest and fees as entered in its records and shall provide written notice
thereof to the Parent within two (2) Business Days after the Conversion
Date.  Each date on which a Notice of
Conversion is delivered or telecopied to the Parent in accordance with the
provisions hereof shall be deemed a Conversion Date (the “Conversion
Date”).  Pursuant to the terms
of the Notice of Conversion, the Parent will issue instructions to the transfer
agent accompanied by an opinion of counsel within three (3) Business Days
of the date of the delivery to the Parent of the Notice of Conversion and shall
cause the transfer agent to transmit the certificates representing the
Conversion Shares to the Holder by (1) in the event the Conversion Shares
are not covered by a registration statement that has been declared effective by
the SEC or are not otherwise subject to exemption from registration under the
Securities Act, delivering such original certificates directly to the Holder or
(2) in the event the Conversion Shares are covered by a registration
statement that has been declared effective by the SEC or are otherwise subject
to an exemption from registration under the Securities Act, crediting the
account of the Holder’s designated broker with the Depository Trust Corporation
(“DTC”) through its Deposit Withdrawal
Agent Commission (“DWAC”) system,
in each case, within three (3) Business Days after receipt by the Parent
of the Notice of Conversion (the “Delivery Date”).  In the case of the exercise of the conversion
rights set forth herein the conversion privilege shall be deemed to have been
exercised and the Conversion Shares issuable upon such conversion shall be
deemed to have been issued upon the date of receipt by the Parent of the Notice
of Conversion.  The Holder shall be
treated for all purposes as the record holder of the Conversion Shares, unless
the Holder provides the Parent written instructions to the contrary.

 

3.4                                 Late
Payments.  Each Company understands
that a delay in the delivery of the Conversion Shares in the form required
pursuant to this Article beyond the Delivery Date could result in economic
loss to the Holder.  As compensation to
the Holder for such loss, in 

 

4

 

addition to all other rights and remedies which the Holder may have
under this Note, applicable law or otherwise, the Companies shall, jointly and
severally, pay late payments to the Holder for any late issuance of Conversion
Shares in the form required pursuant to this Article III upon conversion of
this Note, in the amount equal to $150 per Business Day after the Delivery
Date.  The Companies shall, jointly and
severally, make any payments incurred under this Section in immediately
available funds upon demand.

 

3.5                                 Conversion
Mechanics.  The number of shares of
Common Stock to be issued upon each conversion of this Note shall be determined
by dividing that portion of the principal and interest and fees to be
converted, if any, by the then applicable Fixed Conversion Price.

 

3.6                                 Adjustment
Provisions. The Fixed Conversion Price and number and kind of shares or
other securities to be issued upon conversion determined pursuant to Section 3.1
shall be subject to adjustment from time to time upon the occurrence of certain
events during the period that this conversion right remains outstanding, as
follows:

 

(a)                                  Reclassification.  If the Parent at any time shall, by
reclassification or otherwise, change the Common Stock into the same or a
different number of securities of any class or classes, this Note, as to the
unpaid Principal Amount and accrued interest thereon, shall thereafter be
deemed to evidence the right to purchase an adjusted number of such securities
and kind of securities as would have been issuable as the result of such change
with respect to the Common Stock (i) immediately prior to or (ii) immediately
after such reclassification or other change at the sole election of the Holder.

 

(b)                                 Stock
Splits, Combinations and Dividends. 
If the shares of Common Stock are subdivided or combined into a greater
or smaller number of shares of Common Stock, or if a dividend is paid on the
Common Stock or any preferred stock issued by the Parent in shares of Common
Stock, the Fixed Conversion Price shall be proportionately reduced in case of
subdivision of shares or stock dividend or proportionately increased in the
case of combination of shares, in each such case by the ratio which the total
number of shares of Common Stock outstanding immediately after such event bears
to the total number of shares of Common Stock outstanding immediately prior to
such event.

 

(c)                                  Share
Issuances.  Subject to the provisions
of this Section 3.6, if the Parent shall at any time prior to the
conversion or repayment in full of the Principal Amount issue any shares of
Common Stock or securities convertible into Common Stock to a person other than
the Holder (except (i) pursuant to Sections 3.6(a) or (b) above;
(ii) pursuant to options, warrants, or other obligations to issue shares
outstanding on the date hereof as disclosed to the Holder in writing; (iii) pursuant
to options and awards that may be issued under any employee incentive stock
option and/or any qualified stock option plan adopted by the Parent, or (iv) pursuant
to any acquisition with the prior written consent of the Holder (the issuances
set forth in the foregoing clauses “(i)” through “(iv)” shall hereafter be
referred to as “Excluded Issuances”)) for a consideration per share (the “Offer Price”) less than the Fixed Conversion Price in effect
at the time of such issuance, then the Fixed Conversion Price shall be
immediately reset pursuant to the formula below. For purposes hereof, the
issuance of any security of the Parent convertible into or exercisable or
exchangeable for Common Stock (other than for Excluded Issuances) shall 

 

5

 

result in an adjustment to the Fixed Conversion Price upon the issuance
of such securities pursuant to the formula below.

 

If the Parent issues any additional shares of Common
Stock (other than for Excluded Issuances) for a consideration per share less
than the then-applicable Fixed Conversion Price pursuant to this Section 3.6
then, and thereafter successively upon each such issue, the Fixed Conversion
Price shall be adjusted by multiplying the then applicable Fixed Conversion
Price by the following fraction:

 

	
   

  	
   

  	
  A + B

  	
   

  	
   

  
	
   

  	
   

  	
  (A + B) + [((C — D) x B) / C]

  	
   

  	
   

  

 

A =  Total
amount of shares convertible pursuant to the Notes

 

B =  Actual
shares sold in the offering

 

C =  Fixed
Conversion Price

 

D =  Offer Price

 

For purposes hereof, the issuance of any security of
the Parent convertible into or exercisable or exchangeable for Common Stock
(other than for Excluded Issuances) shall result in an adjustment to the Fixed
Conversion Price upon the issuance of such securities.

 

(d)                                 Computation
of Consideration.  For purposes of
any computation respecting consideration received pursuant to Section 3.6(c) above,
the following shall apply:

 

(i)                                     in
the case of the issuance of shares of Common Stock for cash, the consideration
shall be the amount of such cash, provided that in no case shall any deduction
be made for any commissions, discounts or other expenses incurred by the Parent
for any underwriting of the issue or otherwise in connection therewith;

 

(ii)                                  in
the case of the issuance of shares of Common Stock for a consideration in whole
or in part other than cash, the consideration other than cash shall be deemed
to be the fair market value thereof as determined in good faith by the Board of
Directors of the Parent (irrespective of the accounting treatment thereof); and

 

(iii)                               in the case of the
issuance of securities of the Parent convertible unto or exercisable or
exchangeable for Common Stock (other than for Excluded Issuances) upon any such
exercise, the aggregate consideration received for such securities shall be
deemed to be the consideration received by the Parent for the issuance of such
securities plus the additional minimum consideration, if any, to be received by
the Parent upon the conversion or exchange thereof (the consideration in each
case to be determined in the same manner as provided in subsections (i) and
(ii) of this Section 3.6(d)).

 

6

 

3.7                                 Reservation
of Shares.  During the period the
conversion right exists, the Parent will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Conversion Shares upon the full conversion of this Note and the
Warrants.  The Parent represents that
upon issuance, the Conversion Shares will be duly and validly issued, fully
paid and non-assessable.  The Parent
agrees that its issuance of this Note shall constitute full authority to its
officers, agents, and transfer agents who are charged with the duty of executing
and issuing stock certificates to execute and issue the necessary certificates
for the Conversion Shares upon the conversion of this Note.

 

3.8                                 Registration
Rights.  The Holder has been granted
registration rights with respect to the Conversion Shares as set forth in a
Registration Rights Agreement.

 

3.9                                 Issuance
of New Note.  Upon any partial
conversion of this Note, a new Note containing the same date and provisions of
this Note shall, at the request of the Holder, be issued by the Parent to the
Holder for the principal balance of this Note and interest which shall not have
been converted or paid.  Subject to the
provisions of Article IV of this Note, the Parent shall not pay any costs,
fees or any other consideration to the Holder for the production and issuance
of a new Note.

 

ARTICLE IV

EVENTS OF DEFAULT AND DEFAULT RELATED PROVISIONS

 

4.1                                 Events
of Default.  The occurrence of an
Event of Default under the Security Agreement shall constitute an event of
default (“Event of Default”) hereunder.

 

4.2                                 Default
Interest.  Following the occurrence
and during the continuance of an Event of Default, the Companies shall, jointly
and severally, pay additional interest on the outstanding principal balance of
this Note in an amount equal to one and one-half percent (1.5%) per month, and
all outstanding Obligations, including unpaid interest, shall, to the extent
permitted by law, continue to accrue interest at such additional interest rate
from the date of such Event of Default until the date such Event of Default is
cured or waived.

 

4.3                                 Default
Payment.  Following the occurrence
and during the continuance of an Event of Default, the Holder, at its option,
may elect, in addition to all rights and remedies of the Holder under the
Security Agreement and the Ancillary Agreements and all obligations of each
Company under the Security Agreement and the Ancillary Agreements, to require
the Companies, jointly and severally, to make a Default Payment (“Default Payment”). 
The Default Payment shall be 120% of the outstanding principal amount of
the Note, plus accrued but unpaid interest, all other fees then remaining
unpaid, and all other amounts payable hereunder.  The Default Payment shall be applied first to
any fees due and payable to the Holder pursuant to the Notes and/or the
Ancillary Agreements, then to accrued and unpaid interest due on the Notes, the
Security Agreement and then to the outstanding principal balance of the
Notes.  The Default Payment shall be due
and payable immediately on the date that the Holder has exercised its rights
pursuant to this Section 4.3.

 

7

 

ARTICLE V

MISCELLANEOUS

 

5.1                                 Conversion
Privileges.  The conversion
privileges set forth in Article III shall remain in full force and effect
immediately from the date hereof until the date this Note is indefeasibly paid
in full and irrevocably terminated.

 

5.2                                 Cumulative
Remedies.  The remedies under this
Note shall be cumulative.

 

5.3                                 Failure
or Indulgence Not Waiver.  No failure
or delay on the part of the Holder hereof in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

 

5.4                                 Notices.  Any notice herein required or permitted to be
given shall be in writing and shall be provided in accordance with the terms of
the Security Agreement.

 

5.5                                 Amendment
Provision.  The term “Note” and all
references thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as
so amended or supplemented, and any successor instrument as such successor
instrument may be amended or supplemented.

 

5.6                                 Assignability.  This Note shall be binding upon each Company
and its successors and assigns, and shall inure to the benefit of the Holder
and its successors and assigns, and may be assigned by the Holder in accordance
with the requirements of the Security Agreement.  No Company may assign any of its obligations
under this Note without the prior written consent of the Holder, any such
purported assignment without such consent being null and void.

 

5.7                                 Cost
of Collection.  In case of any Event
of Default under this Note, the Companies shall, jointly and severally, pay the
Holder’s reasonable costs of collection, including reasonable attorneys’ fees.

 

5.8                                 Governing
Law, Jurisdiction and Waiver of Jury Trial.

 

(a)                                  THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW.

 

(b)                                 EACH
COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN
THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO
HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY COMPANY, ON THE ONE HAND,
AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE, THE SECURITY
AGREEMENT OR ANY OF THE OTHER ANCILLARY AGREEMENTS OR TO ANY MATTER ARISING OUT
OF OR RELATED TO THIS NOTE, THE SECURITY 

 

8

 

AGREEMENT OR ANY OF THE OTHER ANCILLARY AGREEMENTS; PROVIDED,
THAT EACH COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE
TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW
YORK; AND FURTHER  PROVIDED, THAT NOTHING IN THIS NOTE SHALL BE
DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM BRINGING SUIT OR TAKING OTHER
LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE
ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A
JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE HOLDER.  EACH COMPANY EXPRESSLY SUBMITS AND CONSENTS
IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH
COURT, AND EACH COMPANY HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE
BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON
CONVENIENS.  EACH COMPANY 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, COMPLAINT AND
OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE
COMPANY AT THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT AND THAT SERVICE SO
MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S ACTUAL RECEIPT
THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE
PREPAID.

 

(c)                                  EACH
COMPANY DESIRES THAT ITS DISPUTES 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,
EACH COMPANY HERETO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT,
OR OTHERWISE BETWEEN THE HOLDER, AND/OR ANY COMPANY ARISING OUT OF, CONNECTED
WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
CONNECTION WITH THIS NOTE, THE SECURITY AGREEMENT, ANY OTHER ANCILLARY
AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

 

5.9                                 Severability.  In the event that any provision of this Note
is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law.  Any such provision
which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of this Note.

 

5.10                           Maximum
Payments.  Nothing contained herein
shall be deemed to establish or require the payment of a rate of interest or
other charges in excess of the maximum permitted by applicable law.  In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum rate
permitted by such law, any payments in excess of such maximum rate shall be
credited against amounts owed by the Companies to the Holder and thus refunded
to the Companies.

 

9

 

5.11                           Security
Interest and Guaranty.  The Holder
has been granted a security interest (i) in certain assets of the
Companies as more fully described in the Security Agreement and (ii) pursuant
to the Stock Pledge Agreement dated as of the date hereof.  The obligations of the Companies under this
Note are guaranteed by certain Subsidiaries of the Companies pursuant to the
Guaranty.

 

5.12                           Construction.  Each party acknowledges that its legal
counsel participated in the preparation of this Note and, therefore, stipulates
that the rule of construction that ambiguities are to be resolved against
the drafting party shall not be applied in the interpretation of this Note to
favor any party against the other.

 

[Balance of page intentionally left blank;
signature page follows]

 

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IN WITNESS WHEREOF, each Company
has caused this Secured Convertible Minimum Borrowing Note to be signed in its
name effective as of this 31st day of August, 2005.

 

	
   

  	
  STONEPATH GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  STONEPATH LOGISTICS
  DOMESTIC SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  STONEPATH
  LOGISTICS INTERNATIONAL SERVICES, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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11

 

	
   

  	
  STONEPATH
  OFFSHORE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  M.G.R.
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  DISTRIBUTION
  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  [Signature Page to Secured Convertible Minimum
  Borrowing Note;

  
	
  Additional Signature Page to Follow]

  

 

12

 

	
   

  	
  STONEPATH
  LOGISTICS GOVERNMENT

  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  UNITED
  AMERICAN ACQUISITIONS AND MANAGEMENT, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  STONEPATH
  LOGISTICS INTERNATIONAL SERVICES, INC., a Washington corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  GLOBAL
  CONTAINER LINE, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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[Signature Page to Secured
Convertible Minimum Borrowing Note]

 

13

 

EXHIBIT A

OTHER COMPANIES

 

Stonepath Logistics Domestic Services, Inc., a
Delaware corporation

 

Stonepath Logistics International Services, Inc.,
a Delaware corporation

 

Stonepath Offshore Holdings, Inc., a Delaware
corporation

 

M.G.R., Inc., a Minnesota corporation

 

Distribution Services, Inc., a Minnesota
corporation

 

Stonepath Logistics Government Services, Inc., a
Virginia corporation

 

United American Acquisitions and Management, Inc.,
a Michigan corporation

 

Stonepath Logistics International Services, Inc.,
a Washington corporation

 

Global Container Line, Inc., a Washington
corporation

 

14

 

EXHIBIT B

 

NOTICE OF CONVERSION

 

(To be executed by the Holder in order to convert the

Secured Convertible Minimum Borrowing Note)

 

The undersigned hereby elects to convert $                  
of the principal and $                  
of the interest due on the Secured Convertible Minimum Borrowing Note dated as
of August     , 2005 (the “Note”)
issued by Stonepath Group, Inc. (the “Parent”) and
the other Companies named and as defined therein into shares of Common Stock of
the Parent in accordance with the terms and conditions set forth in the Note,
as of the date written below.

 

Date of Conversion:

 

Conversion Price:

 

Shares To Be Delivered:

 

Signature:

 

Print Name:

 

Address:

 

Holder DWAC instructions

 

The undersigned represents and warrants that all
offers and sales by the undersigned of the securities issuable upon conversion
of the within Note shall be made pursuant to registration of the Common Stock
under the Securities Act of 1933, as amended (the “Securities Act”) or pursuant
to an exemption from registration under the Securities Act.

 

15Exhibit 10.25

 

THIS NOTE AND THE COMMON SHARES ISSUABLE UPON
CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. 
THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY
APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO STONEPATH GROUP, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

 

SECURED REVOLVING
NOTE

 

FOR VALUE RECEIVED, each of STONEPATH GROUP, INC., a
Delaware corporation (the “Parent”), and
the other companies listed on Exhibit A attached hereto (such other
companies together with the Parent, each a “Company”
and collectively, the “Companies”),
jointly and severally, promises to pay to LAURUS MASTER FUND, LTD., c/o M&C
Corporate Services Limited, P.O. Box 309 GT, Ugland House, South Church
Street, George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the “Holder”) or its registered assigns or successors in
interest, the sum of Twenty Five Million Dollars ($25,000,000), or, if
different, the aggregate principal amount of all Loans (as defined in the
Security Agreement referred to below), without duplication of any amounts owing
by the Companies to the Holder under the Minimum Borrowing Note (as defined in
the Security Agreement referred to below), or, if different, the aggregate
principal amount of all Loans (as defined in the Security Agreement referred to
below), together with any accrued and unpaid interest hereon, on August 30,
2008 (the “Maturity Date”) if not sooner indefeasibly
paid in full.

 

This Secured Revolving Note (this “Note”) is intended to be a registered obligation within the
meaning of Treasury Regulation Section 1.871-14(c)(1)(i) and each
Company (or its agent) shall register this Note (and thereafter shall maintain
such registration) as to both principal and any stated interest.  Notwithstanding any document, instrument or
agreement relating to this Note to the contrary, transfer of this Note (or the
right to any payments of principal or stated interest thereunder) may only be
effected by (i) surrender of this Note and either the reissuance by the
Company of this Note to the new holder or the issuance by the Company of a new
instrument to the new holder, or (ii) transfer through a book entry system
maintained by the Company (or its agent), within the meaning of Treasury
Regulation Section 1.871-14(c)(1)(i)(B).

 

Capitalized terms used herein without definition shall
have the meanings ascribed to such terms in the Security Agreement among the
Companies and the Holder dated as of the date hereof (as amended, modified
and/or supplemented from time to time, the “Security
Agreement”).

 

The following terms shall
apply to this Note:

 

 

ARTICLE I

CONTRACT RATE AND MINIMUM BORROWING NOTE

 

1.1           Contract
Rate.  Subject to Sections 1.2, 2.2
and 3.9, interest payable on the outstanding principal amount of this Note
(without duplication of any amounts owing by the Companies to the Holder under
the Minimum Borrowing Note) (the “Principal Amount”)
shall accrue at a rate per annum equal to the “prime rate” published in The
Wall Street Journal from time to time (the “Prime Rate”),
plus three and one-half percent (3.50%) (the “Contract
Rate”).  The Contract Rate
shall be increased or decreased as the case may be for each increase or
decrease in the Prime Rate in an amount equal to such increase or decrease in
the Prime Rate; each change to be effective as of the day of the change in the
Prime Rate.  The Contract Rate shall not
at any time be less than eight percent (8%). 
Interest shall be (i) calculated on the basis of a 360 day year,
and (ii) payable monthly, in arrears, commencing on September 1, 2005
on the first business day of each consecutive calendar month thereafter through
and including the Maturity Date, and on the Maturity Date, whether by
acceleration or otherwise.  The Contract
Rate shall be calculated on the last business day of each calendar month
hereafter (other than for increases or decreases in the Prime Rate which shall
be calculated and become effective in accordance with this Section 1.1)
until the Maturity Date.

 

1.2           Minimum
Borrowing Note.  Notwithstanding
anything contained herein to the contrary, any amounts evidenced by this Note
which are attributable to the Minimum Borrowing Note shall be governed by the
terms and provisions of the Minimum Borrowing Note.

 

1.3           Allocation
of Principal to Minimum Borrowing Note.  Notwithstanding anything herein to the
contrary, whenever during the Term the outstanding balance on the Minimum
Borrowing Note shall be less than the Minimum Borrowing Amount (such amount
being referred to herein as the “Transferable Amount”) to the extent that the
outstanding balance on the Revolving Note should equal or exceed $1,000,000,
that portion of the balance of the Revolving Note that exceeds $1,000,000, but
does not exceed the Transferable Amount, shall be segregated from the
outstanding balance under the Revolving Note and allocated to and aggregated
with the then existing balance of the next unissued serialized Minimum
Borrowing Note (the “Next Unissued Serialized Note”); provided that such
segregated balance shall remain subject to the terms and conditions of such
Revolving Note until a new serialized Minimum Borrowing Note is issued as set
forth below.  The Next Unissued
Serialized Note shall remain unissued and in book entry form until the balance
thereunder shall equal the Minimum Borrowing Amount, at which time a new
serialized Minimum Borrowing Note in the face amount equal to the Minimum
Borrowing Amount will be issued, the Common Stock into which the new Minimum
Borrowing Note is convertible will be registered as set forth in the Registration
Rights Agreement, the outstanding balance under the Revolving Note shall at
such time be correspondingly reduced in the amount equal to the Minimum
Borrowing Amount as a result of the issuance of such new serialized Minimum
Borrowing Note and the prior Minimum Borrowing Note shall be surrendered by
Laurus to the Company Agent for cancellation.

 

2

 

ARTICLE II

EVENTS OF DEFAULT AND DEFAULT RELATED PROVISIONS

 

2.1           Events
of Default.  The occurrence of an
Event of Default under the Security Agreement shall constitute an event of
default (“Event of Default”) hereunder.

 

2.2           Default
Interest.  Following the occurrence
and during the continuance of an Event of Default, the Companies shall, jointly
and severally, pay additional interest on the outstanding principal balance of
this Note in an amount equal to one and one-half percent (1.50%) per month, and
all outstanding Obligations, including unpaid interest, shall continue to
accrue interest at such additional interest rate from the date of such Event of
Default until the date such Event of Default is cured or waived.

 

2.3           Default
Payment.  Following the occurrence
and during the continuance of an Event of Default, the Holder, at its option,
may elect, in addition to all rights and remedies of the Holder under the
Security Agreement and the other Ancillary Agreements and all obligations and
liabilities of each Company under the Security Agreement and the other
Ancillary Agreements, to require the Companies, jointly and severally, to make
a Default Payment (“Default Payment”).  The Default Payment shall be 120% of the
outstanding principal amount of the Note, plus accrued but unpaid interest, all
other fees then remaining unpaid, and all other amounts payable hereunder.  The Default Payment shall be applied first to
any fees due and payable to the Holder pursuant to the Notes , the Security
Agreement and/or the Ancillary Agreements, then to accrued and unpaid interest
due on the Notes and then to the outstanding principal balance of the
Notes.  The Default Payment shall be due
and payable immediately on the date that the Holder has exercised its rights
pursuant to this Section 2.3.

 

ARTICLE III

MISCELLANEOUS

 

3.1           Cumulative
Remedies.  The remedies under this
Note shall be cumulative.

 

3.2           Failure
or Indulgence Not Waiver.  No failure
or delay on the part of the Holder hereof in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

 

3.3           Notices.  Any notice herein required or permitted to be
given shall be in writing and shall be provided in accordance with the terms of
the Security Agreement.

 

3.4           Amendment
Provision.  The term “Note” and all
references thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as
so amended or supplemented, and any successor instrument as such successor
instrument may be amended or supplemented.

 

3.5           Assignability.  This Note shall be binding upon each Company
and its successors and assigns, and shall inure to the benefit of the Holder
and its successors and assigns, 

 

3

 

and may be assigned by the Holder in accordance with the requirements
of the Security Agreement.  No Company
may assign any of its obligations under this Note without the prior written
consent of the Holder, any such purported assignment without such consent being
null and void.

 

3.6           Cost of
Collection.  In case of any Event of
Default under this Note, the Companies shall, jointly and severally, pay the
Holder the Holder’s reasonable costs of collection, including reasonable
attorneys’ fees.

 

3.7           Governing
Law, Jurisdiction and Waiver of Jury Trial.

 

(a)           THIS NOTE
SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

(b)           EACH
COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN
THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO
HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY COMPANY, ON THE ONE HAND,
AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE, THE SECURITY
AGREEMENT OR ANY OF THE OTHER ANCILLARY AGREEMENTS OR TO ANY MATTER ARISING OUT
OF OR RELATED TO THIS NOTE, THE SECURITY AGREEMENT OR ANY OF THE OTHER
ANCILLARY AGREEMENTS PROVIDED, THAT EACH COMPANY ACKNOWLEDGES THAT ANY
APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE
OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND FURTHER  PROVIDED,
THAT NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER
FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO
COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR
THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
HOLDER.  EACH COMPANY EXPRESSLY SUBMITS
AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN
ANY SUCH COURT, AND EACH COMPANY HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE
BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON
CONVENIENS.  EACH COMPANY 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, COMPLAINT AND
OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE
COMPANY AT THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT AND THAT SERVICE SO
MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S ACTUAL RECEIPT
THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE
PREPAID.

 

(c)           EACH
COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS.  THEREFORE, TO ACHIEVE
THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM 

 

4

 

AND OF ARBITRATION, EACH COMPANY HERETO WAIVES ALL RIGHTS TO TRIAL BY
JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER
ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER, AND/OR ANY COMPANY
ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, THE SECURITY AGREEMENT,
ANY OTHER ANCILLARY AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

 

3.8           Severability.  In the event that any provision of this Note
is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law.  Any such provision
which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of this Note.

 

3.9           Maximum
Payments.  Nothing contained herein
shall be deemed to establish or require the payment of a rate of interest or
other charges in excess of the maximum permitted by applicable law.  In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum rate
permitted by such law, any payments in excess of such maximum rate shall be
credited against amounts owed by the Companies to the Holder and thus refunded
to the Companies.

 

3.10         Security
Interest and Guaranty.  The Holder
has been granted a security interest (i) in certain assets of the
Companies as more fully described in the Security Agreement and (ii) pursuant
to the Stock Pledge Agreement dated as of the date hereof.  The obligations of the Companies under this
Note are guaranteed by certain Subsidiaries of the Companies pursuant to the
Guaranty.

 

3.11         Construction.  Each party acknowledges that its legal
counsel participated in the preparation of this Note and, therefore, stipulates
that the rule of construction that ambiguities are to be resolved against
the drafting party shall not be applied in the interpretation of this Note to
favor any party against the other.

 

[Balance of page intentionally left blank;
signature page follows]

 

5

 

IN WITNESS WHEREOF, each Company
has caused this Secured Revolving Note to be signed in its name effective as of
this 31st day of August, 2005.

 

	
   

  	
  STONEPATH GROUP, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  STONEPATH LOGISTICS
  DOMESTIC

  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STONEPATH
  LOGISTICS INTERNATIONAL

  SERVICES, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [Additional Signature Pages to Follow]

  

 

6

 

	
   

  	
  STONEPATH
  OFFSHORE HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M.G.R.
  INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DISTRIBUTION
  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

[Signature Page to
Secured Revolving Note;

Additional
Signature Page to Follow]

 

7

 

	
   

  	
  STONEPATH
  LOGISTICS GOVERNMENT

  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  UNITED
  AMERICAN ACQUISITIONS AND

  MANAGEMENT, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STONEPATH
  LOGISTICS INTERNATIONAL

  SERVICES, INC., a Washington corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GLOBAL
  CONTAINER LINE, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

[Signature Page to Secured
Revolving Note]

 

8

 

EXHIBIT A

 

OTHER COMPANIES

 

Stonepath Logistics Domestic Services, Inc., a
Delaware corporation

 

Stonepath Logistics International Services, Inc.,
a Delaware corporation

 

Stonepath Offshore Holdings, Inc., a Delaware
corporation

 

M.G.R., Inc., a Minnesota corporation

 

Distribution Services, Inc., a Minnesota
corporation

 

Stonepath Logistics Government Services, Inc., a
Virginia corporation

 

United American Acquisitions and Management, Inc.,
a Michigan corporation

 

Stonepath Logistics International Services, Inc.,
a Washington corporation

 

Global Container Line, Inc., a Washington
corporation

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]